Assigned to JUD                                                                                                                     FOR COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Sixth Legislature, Second Regular Session

 

FACT SHEET FOR H.B. 2461

 

duty of care; leased vehicles

Purpose

Specifies, in a civil action where a covered motor vehicle (vehicle) is involved in an accident, that there is no obligation or duty for an owner, lessor, operator of a vehicle or person renting a vehicle to another person to retrofit the vehicle with component parts, optional equipment or to have selected component parts or optional equipment be included in the vehicle if such parts were not required by federal vehicle safety standards when the vehicle was manufactured or sold.

Background

The National Highway Traffic Safety Administration (NHTSA) has a legislative mandate to issue Federal Motor Vehicle Safety Standards and Regulations to which manufacturers of vehicles and items of vehicle equipment must conform and certify compliance (NHTSA).

An owner or an affiliate of the owner (affiliate) of a vehicle that rents or leases the vehicle to a person is not liable under the law of any state, or a political subdivision thereof, by reason of being the owner or affiliate of the vehicle, for harm to persons or property that results or arises out of the use, operation or possession of the vehicle during the period of the rental or lease, if: 1) the owner or affiliate is engaged in the trade or business of renting or leasing vehicles; and 2) there is no negligence or criminal wrongdoing on the part of the owner or affiliate. Owner means a person who is: 1) a record or beneficial owner, holder of title, lessor, or lessee of a vehicle; 2) entitled to the use and possession of a vehicle subject to a security interest in another person; or 3) a lessor, lessee, or a bailee of a vehicle, in the trade or business of renting or leasing vehicles, having the use or possession thereof, under a lease, bailment, or otherwise. Affiliate means a person other than the owner that directly or indirectly controls, is controlled by, or is under common control with the owner (49 U.S.C. § 30106). 

There is no anticipated fiscal impact to the state General Fund associated with this legislation. 

Provisions

1.   Specifies, in a civil action where a vehicle is involved in an accident, there is no obligation or duty for an owner, lessor, operator of a vehicle or person renting a vehicle to another person to retrofit the vehicle with component parts, optional equipment or to have selected component parts or optional equipment be included in the vehicle if such parts were not required by federal vehicle safety standards when the vehicle was manufactured or sold.

2.   Deems that evidence related to an allegation of obligation or duty to have optional safety component parts or equipment as inadmissible in a civil action.

3.   Stipulates that, in a civil action, the outlined parties are liable if they have failed to comply with a law or regulation issued after the vehicle was manufactured or sold requiring a mandatory recall or retrofit of the vehicle.

4.   Prescribes the same definition for covered motor vehicle as provided in federal statute.  

5.   Becomes effective on the general effective date. 

House Action

TI                    2/7/24        DP                11-0-0-0

3rd Read          2/20/24                           57-0-2-0-1

Prepared by Senate Research

March 12, 2024

ZD/KK/cs