SENATE, No. 758

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 15, 1996

By Senator RICE

An Act concerning certain rentals of motor vehicles.

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

    1. No person engaged in the business of renting motor vehicles shall refuse to rent a motor vehicle for a period of less than 30 days to any person otherwise qualified because of his place of residence or that person's failure to provide proof of residence. Nothing in this section shall be construed to prohibit a person engaged in the business of renting motor vehicles from requesting a person to display a credit card or driver's license.

    2. A person who violates this act shall be liable to a civil penalty of not more than $500 for a first offense and not more than $1,000 for a second and each subsequent offense. Any penalty imposed pursuant to this section shall be collected and enforced by the Director of the Division of Consumer Affairs in a summary proceeding pursuant to "the penalty enforcement law," N.J.S.2A:58-1 et seq.

    3. The Director of the Division of Consumer Affairs shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), as are necessary to effectuate the purposes of this act.

    4. This act shall take effect on the first day of the third month after enactment.

STATEMENT

    This bill prohibits persons engaged in the business of renting motor vehicles from refusing to rent a motor vehicle for a period of less than 30 days to any person otherwise qualified because of his place of residence or that person's failure to provide proof of residence. A violator would be liable to a civil penalty of not more than $500 for a first offense and not more than $1,000 for any subsequent offense.

    Currently, it is a common practice for a car rental firm located in an urban area to require an individual residing in that urban area to provide proof of residence before the rental firm will rent a vehicle to that person. Car rental firms located in urban sites do not, similarly, require such proof of residence from individuals residing in areas other than where these rental firms are situated. Moreover, these firms may also refuse to rent a car to persons solely because they live in that urban area. The bill is intended to eliminate such inequities by prohibiting a car rental firm from requesting proof of residence and from refusing to rent on the basis of residence alone.

Prohibits car rental firms from requesting proof of residence and refusing to rent based on residence.