A5355

An Act establishing the maximum amount a motor vehicle rental company may charge a renter for refueling and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. As used in this section:

“Motor vehicle” means a vehicle that is propelled other than by muscular power on a roadway except a low-speed electric bicycle as defined in R.S.39:1-1, low-speed electric scooter as defined in R.S.39:1-1, and motorized bicycle as defined in R.S.39:1-1.

“Motor vehicle rental company” means a person or entity engaged in the business of renting motor vehicles to members of the public including, but not limited to, renting vehicles on an hourly, daily, per trip, or other short-term basis.

“Renter” means a member of the public who rents a motor vehicle from a motor vehicle rental company.

b. A motor vehicle rental company that charges a renter for the refueling of a rented motor vehicle upon return of the vehicle to the motor vehicle rental company shall only charge the renter for the amount of gasoline necessary to return the fuel tank to the level at which the fuel tank was when the renter took legal possession of the vehicle. Except as provided for in this subsection, a motor vehicle rental company shall not charge a renter any other fee, such as an administrative, a service, or a processing fee, for refueling a returned motor vehicle.

c. The maximum rate a motor vehicle rental company may charge a renter for the gasoline for refueling is 125 percent of the weekly retail gasoline price, as published by the U.S. Energy Information Administration, for the region in which the motor vehicle rental company is located.

d. Before a motor vehicle rental company rents a motor vehicle, the company shall disclose to the renter:

(1) the method, pursuant to subsection b. of this section, by which the motor vehicle rental company will calculate any refueling costs; and

(2) the rate, pursuant to subsection c. of this section, at which the motor vehicle rental company will charge the renter for refueling.

e. A motor vehicle rental company shall, upon request, provide a renter with a receipt that includes:

(1) the amount of gasoline the motor vehicle rental company purchased to return the fuel tank to the level at which it was before the renter took legal possession of the vehicle;

(2) the per-gallon price of the gasoline the motor vehicle rental company charged the renter to refuel the returned motor vehicle; and

(3) the total amount the motor vehicle rental company charged the renter to refuel the vehicle.

f. A motor vehicle rental company shall maintain an electronic record of:

(1) the fuel level of a motor vehicle before rented to and upon return from each renter;

(2) the amount of gasoline the motor vehicle rental company purchased to return the fuel tank to the level at which it was before the renter took legal possession of the vehicle; and

(3) the per-gallon price of the gasoline the motor vehicle rental company charged the renter to refuel the vehicle.

The motor vehicle rental company shall maintain the electronic record for each rental for one year from the date the record is made.

g. The Director of the Division of Consumer Affairs in the Department of Law and Public Safety may issue guidelines to effectuate the purposes of this act.

2. This act shall take effect immediately.

STATEMENT

This bill caps the gasoline refueling amount and rate a motor vehicle rental company may charge a renter upon return of a motor vehicle to the company. The bill defines a “motor vehicle rental company” as a person or entity engaged in the business of renting motor vehicles to members of the public including, but not limited to, renting vehicles on an hourly, daily, per trip, or other short-term basis. The bill also defines a “motor vehicle” as a vehicle that is propelled other than by muscular power on a roadway except a low-speed electric bicycle as defined in R.S.39:1-1, low-speed electric scooter as defined in R.S.39:1-1, and motorized bicycle as defined in R.S.39:1-1.

Under the bill, a motor vehicle rental company may only charge a renter for the amount of gasoline required to return the fuel tank to the level at which the tank was when the renter took possession of the motor vehicle. The company may charge the renter a maximum of 125 percent of the weekly retail gasoline price, as published by the U.S. Energy Information Administration, for the region in which the motor vehicle rental company is located.

The bill requires a motor vehicle rental company to disclose to a renter before renting them a motor vehicle: 1) the method by which the company will calculate any refueling costs; and 2) the rate at which the company will charge the renter for the gasoline required for refueling. Additionally, the bill requires a rental company to provide a renter with a receipt delineating the amount of and price charged for the gasoline required for refueling. Under the bill, a rental company is required to maintain electronic records that include various details pertaining to the refueling transactions covered by this bill.

A violation of the bill’s provisions is an unlawful practice and a violation of the consumer fraud act, which is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation may result in a cease and desist order issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.