WASHINGTON -- Congress is near final action on a bill that would nullify state laws that allow the owners of leased or rented vehicles to be held responsible for damages done by the drivers of the vehicles.

Sixteen states have laws of this nature, known as vicarious liability laws, and many of these laws do not have a limit on the damages that can be assessed against a vehicle lease company.

Due to court awards mandating lease companies pay damages instead of drivers, the industry has cut down leasing in some states. It has also aimed to switch some lease customers to balloon loans, giving the customers the advantages of lease-sized monthly payments and the the titles to their vehicles.

The provision ending vicarious liability is part of a House-passed version of a major six-year highway funding bill. That amendment, sponsored by Rep. Sam Graves, R-Mo., was added to the bill with a 218-201 vote, largely among party lines. It is not included in the Sentate-passed version. Negotiators from both the House and Senate will soon decide which provisions will be on the compromise legislation.

Supporters of vicarious liability believe the laws protect victimes of uninsured or underinsured motorists, while opponents feel rental companies should not be held responsible for the actions of drivers.

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