The Car and Truck Fleet and Leasing Management Magazine

TRALA-Amended Indemnification Bill Wins Unanimous Vote in New Mexico Senate

March 12, 2007

ALBUQUERQUE, N.M. – The New Mexico Senate voted 32 to 0 to approve legislation containing an amendment sponsored by the Truck Renting and Leasing Association (TRALA) that would exempt motor vehicle lease and rental contracts from prohibitions on indemnification clauses. As originally introduced Jan. 18 by Las Vegas Sen. Pete Campos, SB 69 would have prohibited any lease or rental contract from including certain broad form indemnification clauses commonly used by motor vehicle renting and leasing companies. Sen. Campos agreed to support an amendment requested by TRALA that was approved by a 10-0 vote in the Judiciary Feb. 12. The amendment exempts motor vehicle lease and rental contracts from the restrictions proposed in the legislation. The bill was also amended to exempt finance lease contracts from the restrictions on indemnification clauses. In the New Mexico House, Las Cruces Rep. Joseph Cervantes agreed to amend companion legislation, HB 1275, to include the TRALA language to allow motor vehicle lease and rental agreements to contain broad indemnification clauses. The amended bill was passed by the Committee on Health and Government Affairs by a 7-0 vote. The TRALA amendment would prevent the forced renegotiation of existing long-term lease motor vehicle contracts and rates. The amendment would also allow the continuation of existing practices used to provide motor vehicle lessees with increased flexibility in negotiating lease terms.
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