Bill
Bill > A2087
NJ A2087
NJ A2087Clarifies that motor vehicle rental companies may recover, through a vehicle registration recovery fee separately stated in rental agreement, certain costs of doing business.
summary
Introduced
In Committee
Crossed Over
Passed
Dead
Introduced Session
2010-2011 Regular Session
Bill Summary
This bill would clarify that it is a lawful practice under the "Consumer Protection Leasing Act" for a motor vehicle rental company to collect, from customers renting a vehicle, a "vehicle registration recovery fee" to recover the costs paid or incurred by the company for the titling, registration, inspection, and licensing of its motor vehicles. The bill requires that the amount of the vehicle registration recovery fee shall be separately stated in the rental contract, and shall be imposed at a rate reflecting the proportional part of all titling, registration, inspection, and licensing fees, paid or payable by the company during the calendar year in which the agreement was executed, that is attributable to the rental covered by the agreement. If, in a calendar year, the total amount of vehicle registration recovery fee revenue collected by the company exceeds its actual expenditure in that year for the pertinent fees and charges, the company is required under the bill to adjust the rate of the recovery fee for the following calendar year in proportion to the amount of the excess.
AI Summary
This bill clarifies that motor vehicle rental companies can charge customers a "vehicle registration recovery fee" to cover costs associated with titling, registering, inspecting, and licensing their rental vehicles. This fee must be clearly itemized in the rental agreement and should reflect a fair portion of the company's total annual expenses for these items, relative to the rental period. If a company collects more from these fees than it actually spends in a year, it must reduce the fee rate in the following year proportionally to the excess collected. The bill also requires that if a rental rate is advertised, the existence of this recovery fee must be disclosed.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced, Referred to Assembly Regulated Professions Committee (on 02/11/2010)
bill text
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| Bill | https://www.njleg.state.nj.us/2010/Bills/A2500/2087_I1.HTM | 05/28/2012 |
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