1.1    .................... moves to amend H. F. No. 1712 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 65B.49, subdivision 5a, is amended to
1.5    Subd. 5a. Rental vehicles. (a) Every plan of reparation security, wherever issued,
1.6 insuring a natural person as named insured, covering private passenger vehicles as defined
1.7under section 65B.001, subdivision 3, and pickup trucks and vans as defined under section
1.8168.011 must: (1) provide that all of the obligation for damage and loss of use to a rented
1.9private passenger vehicle, including pickup trucks and vans as defined under section
1.10168.011 , and rented trucks with a registered gross vehicle weight of 26,000 pounds or less
1.11would be covered by the property damage liability portion of the plan; and (2) extend
1.12the plan's basic economic loss benefits, residual liability insurance, and uninsured and
1.13underinsured motorist coverages to the operation or use of the rented motor vehicle. This
1.14subdivision does not apply to plans of reparation security covering only motor vehicles
1.15registered under section 168.10, subdivision 1a, 1b, 1c, or 1d, or recreational vehicles as
1.16defined under section 168.011. The obligation of the plan must not be contingent on fault
1.17or negligence. In all cases where the plan's property damage liability coverage is less than
1.18$35,000, the coverage available under the subdivision must be $35,000. Other than as
1.19described in this paragraph or in; paragraph (i), clause (2); or paragraph (j), nothing in this
1.20section amends or alters the provisions of the plan of reparation security as to primacy
1.21of the coverages in this section.
1.22    (b) A vehicle is rented for purposes of this subdivision:
1.23    (1) if the rate for the use of the vehicle is determined on a monthly, weekly, or
1.24daily basis; or
1.25    (2) during the time that a vehicle is loaned as a replacement for a vehicle being
1.26serviced or repaired regardless of whether the customer is charged a fee for the use
1.27of the vehicle.
2.1    A vehicle is not rented for the purposes of this subdivision if the rate for the vehicle's
2.2use is determined on a period longer than one month or if the term of the rental agreement
2.3is longer than one month. A vehicle is not rented for purposes of this subdivision if the
2.4rental agreement has a purchase or buyout option or otherwise functions as a substitute for
2.5purchase of the vehicle.
2.6    (c) The policy or certificate issued by the plan must inform the insured of the
2.7application of the plan to private passenger rental vehicles, including pickup trucks and
2.8vans as defined under section 168.011, and that the insured may not need to purchase
2.9additional coverage from the rental company.
2.10    (d) Where an insured has two or more vehicles covered by a plan or plans of
2.11reparation security containing the rented motor vehicle coverage required under paragraph
2.12(a), the insured may select the plan the insured wishes to collect from and that plan is
2.13entitled to a pro rata contribution from the other plan or plans based upon the property
2.14damage limits of liability. If the person renting the motor vehicle is also covered by the
2.15person's employer's insurance policy or the employer's automobile self-insurance plan,
2.16the reparation obligor under the employer's policy or self-insurance plan has primary
2.17responsibility to pay claims arising from use of the rented vehicle.
2.18    (e) A notice advising the insured of rental vehicle coverage must be given by the
2.19reparation obligor to each current insured with the first renewal notice after January 1,
2.201989. The notice must be approved by the commissioner of commerce. The commissioner
2.21may specify the form of the notice.
2.22    (f) When a motor vehicle is rented in this state, there must be attached to the rental
2.23contract a separate form containing a written notice in at least 10-point bold type, if
2.24printed, or in capital letters, if typewritten, which states:
2.25Under Minnesota law, a personal automobile insurance policy issued in Minnesota
2.26must: (1) cover the rental of this motor vehicle against damage to the vehicle and
2.27against loss of use of the vehicle; and (2) extend the policy's basic economic loss
2.28benefits, residual liability insurance, and uninsured and underinsured motorist
2.29coverages to the operation or use of a rented motor vehicle. Therefore, purchase of
2.30any collision damage waiver or similar insurance affected in this rental contract is
2.31not necessary if your policy was issued in Minnesota. In addition, purchase of any
2.32additional liability insurance is not necessary if your policy was issued in Minnesota
2.33unless you wish to have coverage for liability that exceeds the amount specified in
2.34your personal automobile insurance policy.
2.35No collision damage waiver or other insurance offered as part of or in conjunction with
2.36a rental of a motor vehicle may be sold unless the person renting the vehicle provides a
3.1written acknowledgment that the above consumer protection notice has been read and
3.3    (g) When damage to a rented vehicle is covered by a plan of reparation security as
3.4provided under paragraph (a), the rental contract must state that payment by the reparation
3.5obligor within the time limits of section 72A.201 is acceptable, and prior payment by
3.6the renter is not required.
3.7    (h) Compensation for the loss of use of a damaged rented motor vehicle is limited to
3.8a period no longer than 14 days.
3.9    (i)(1) For purposes of this paragraph subdivision, "rented motor vehicle" means a
3.10rented vehicle described in paragraph (a), using the definition of "rented" provided in
3.11paragraph (b).
3.12    (2) Notwithstanding section 169.09, subdivision 5a, an owner of a rented motor
3.13vehicle is not vicariously liable for legal damages resulting from the operation of the
3.14rented motor vehicle in an amount greater than $100,000 because of bodily injury to one
3.15person in any one accident and, subject to the limit for one person, $300,000 because of
3.16injury to two or more persons in any one accident, and $50,000 because of injury to or
3.17destruction of property of others in any one accident, if the owner of the rented motor
3.18vehicle has in effect, at the time of the accident, a policy of insurance or self-insurance, as
3.19provided in section 65B.48, subdivision 3, covering losses up to at least the amounts set
3.20forth in this paragraph. Nothing in this paragraph alters or affects the obligations of an
3.21owner of a rented motor vehicle to comply with the requirements of compulsory insurance
3.22through a policy of insurance as provided in section 65B.48, subdivision 2, or through
3.23self-insurance as provided in section 65B.48, subdivision 3, which policy of insurance or
3.24self-insurance must apply whenever the operator is not covered by a plan of reparation
3.25security as provided under paragraph (a)
; or with the obligations arising from section
3.2672A.125 for products sold in conjunction with the rental of a motor vehicle. Nothing in
3.27this paragraph alters or affects liability, other than vicarious liability, of an owner of
3.28a rented motor vehicle.
3.29    (3) The dollar amounts stated in this paragraph shall be adjusted for inflation
3.30based upon the Consumer Price Index for all urban consumers, known as the CPI-U,
3.31published by the United States Bureau of Labor Statistics. The dollar amounts stated
3.32in this paragraph are based upon the value of that index for July 1995, which is the
3.33reference base index for purposes of this paragraph. The dollar amounts in this paragraph
3.34shall change effective January 1 of each odd-numbered year based upon the percentage
3.35difference between the index for July of the preceding year and the reference base index,
3.36calculated to the nearest whole percentage point. The commissioner shall announce and
4.1publish, on or before September 30 of the preceding year, the changes in the dollar
4.2amounts required by this paragraph to take effect on January 1 of each odd-numbered
4.3year. The commissioner shall use the most recent revision of the July index available as
4.4of September 1. Changes in the dollar amounts must be in increments of $5,000, and no
4.5change shall be made in a dollar amount until the change in the index requires at least
4.6a $5,000 change. If the United States Bureau of Labor Statistics changes the base year
4.7upon which the CPI-U is based, the commissioner shall make the calculations necessary
4.8to convert from the old base year to the new base year. If the CPI-U is discontinued, the
4.9commissioner shall use the available index that is most similar to the CPI-U.
4.10    (j) The plan of reparation security covering the owner of a rented motor vehicle is
4.11excess of any residual liability coverage insuring an operator of a rented motor vehicle if
4.12the vehicle is loaned as a replacement for a vehicle being serviced or repaired, regardless
4.13of whether a fee is charged for use of the vehicle, provided that the vehicle so loaned is
4.14owned by the service or repair business."
4.15Amend the title accordingly