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S 2367

Relates to the effectiveness of chapter 565 of the laws of 2022 amending the state finance law relating to preferred source status for entities that provide employment to certain persons

2025 Regular Session Introduced by George Borrello and 3 co-sponsors

Bans deceptive mileage charges in drive-it-yourself rentals and requires contingent insurance when renters lack coverage, protecting lessees.

REFERRED TO PROCUREMENT AND CONTRACTS
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Bill Summary · S 2367

Summary — S.2367: "An Act relative to affordable car rentals"

Note: the bill package provided contains inconsistent metadata (file dates, sponsor list, and committee referrals that appear to mix multiple jurisdictions). This summary relies on the bill text included (Senate Docket No. 825 / Massachusetts, 194th General Court) and the stated legislative actions. Verify the official state legislative website for definitive status and text.

Purpose / Intent

The bill amends portions of Chapter 90 (motor vehicles) to strengthen consumer protections and clarify lessor insurance obligations in car rental/lease transactions. It targets practices where rental charges depend on vehicle distance traveled and updates liability/coverage rules for lessors.

Key provisions (by statutory section)

  • Section 32C (amended)

    • Replaces the first paragraph to prohibit lessors who rent motor vehicles or trailers under “drive-it-yourself” systems (including daily/weekly/hourly/monthly rate systems) from leasing vehicles equipped with hubodometers or similar mechanical mileage devices that do not “register such distance with substantial accuracy.”
    • Prohibits lessors from knowingly deceiving lessees about the distance traveled or charging based on such deception.
    • Prohibits leasing to persons known or believed to be under the influence of alcohol or drugs.
    • Requires a lessee (or authorized operator) to show a valid driver’s license to the lessor before leasing, but explicitly states that the lessor is not required to verify that license with the Registry of Motor Vehicles (RMV) or other electronic services.

  • Section 32E (retitle and amendment)

    • Retitles to explicitly include vehicles leased on daily, weekly, hourly or monthly rental rates.
    • Requires lessors to provide and maintain, while engaged in leasing under the systems in 32C, a motor vehicle liability policy or bond/deposit up to the statutory minimum financial requirements on a secondary/contingent basis if the lessee/operator lacks coverage.
    • Such coverage must provide indemnity for personal injuries and, except for vehicles leased for terms over 30 days, also provide property damage indemnity as required by Chapter 90.
    • If another valid and collectible liability policy or financial security satisfies minimum requirements, the lessor’s obligation is satisfied.

  • Section 34M (minor cross-reference amendment)

    • Inserts “or 32E” after each occurrence of “section 34A,” thereby extending referenced provisions/obligations to the amended 32E.

Who is affected

  • Rental car lessors: must ensure mileage-registering devices are substantially accurate, cannot deceive about mileage, must obtain proof of operator license (but need not verify electronically), and must carry contingent liability coverage unless another policy satisfies requirements.
  • Lessees/operators: gain protection against inaccurate mileage charges and have clearer recourse regarding lessor insurance responsibilities.
  • Insurers and financial security providers: may be affected by clarified contingent coverage obligations and the interplay with lessee policies.
  • Law enforcement / regulators: enforcement responsibility under Chapter 90 for compliance and deceptive practices.

Procedural status and timeline (as provided)

  • Bill text filed: Senate Docket No. 825 (filed 01/14/2025).
  • Legislative actions listed include: introduction/readings (dates in 2025), referral to Judiciary and Transportation committees, hearings (e.g., 05/13/2025), committee favorable report and referral to Senate Ways and Means, and a committee recommendation “ought to pass with an amendment” with a new draft substituted (S.2603) on 09/11/2025.
  • Current status shown here: REFERRED TO PROCUREMENT AND CONTRACTS (appears twice in the metadata). The bill also lists related/companion measures (SD 825 replaces; A.783 companion).

Potential impacts and considerations

  • Consumer protection: strengthens safeguards against inaccurate odometer/hubodometer billing practices.
  • Compliance costs: lessors may incur costs to certify or replace mileage-registering devices and to maintain appropriate contingent insurance.
  • Verification tradeoffs: the bill removes a legal requirement to electronically verify licenses, which may reduce administrative burden on lessors but could raise enforcement/ fraud-detection concerns.
  • Insurance market effects: clarifies when lessor coverage is secondary versus primary, impacting claim handling and underwriting.

If you want, I can:
- Extract and display the exact amended statutory language side-by-side with current Chapter 90 text;
- Look up the current official status on the Massachusetts Legislature website and reconcile the inconsistent sponsor/metadata information.

Compiled from official sources — confirm details with the bill’s official record.

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