SECTION 1. Chapter 90, section 32C is amended by striking the first paragraph and replacing it with the following:-

No person engaged in the business of leasing motor vehicles or trailers under the ''drive-it-yourself'' system, so called, or any similar system including rentals based on daily, week, hourly or monthly rental rates , wherein the amount of the rental is determinable in whole or in part by the distance such motor vehicles or trailers travel, shall lease any such vehicle whereto is attached a hubodometer or other mechanical device for the purpose of registering the distance that such vehicle travels which does not register such distance with substantial accuracy, nor shall any such person, herein and in the following three sections called the lessor, knowingly deceive any lessee of any such vehicle under any such system, herein and in the following three sections called the lessee, as to the distance which such vehicle has traveled under the lease, or make or collect a charge for the use thereof based wholly or in part on such deception, or lease any such vehicle for operation on any public way by any person whom he knows or has reason to believe to be under the influence of intoxicating liquor or of any drug. No lessor shall lease any motor vehicle or trailer until the lessee shows that he or his authorized operator is the holder of a duly issued license to operate the type of motor vehicle or trailer which is being leased.

SECTION 2. Section 32E is amended by striking the title and replacing it with the following:-

Section 32E: Leasing motor vehicles on mileage basis; operation of vehicles or use of trailers; insurance coverage; vehicles leased on daily, weekly, hourly or monthly rental rate

Section 32E is further amended by adding at the end thereof the following paragraph:-

Notwithstanding anything to the contrary contained in this chapter, the liability insurance policy or self-insurance available to the lessee or operator  of the leased vehicle shall be primary as to any motor vehicle liability policy, bond or deposit maintained by the lessor and will serve to satisfy the minimum financial responsibility requirements imposed on owners or registrants of vehicles under this section and under chapter ninety, sections thirty-four A through thirty-four R for the liability in the use or operation of the leased vehicle by persons with the express or implied consent of the lessor. If the operator is a different person than the renter, the operator’s liability insurance policy or self-insurance would be primary before the renter’s liability insurance or self-insurance.  If the operator does not have a liability insurance policy or self-insurance available, primacy would default to the renter’s liability insurance or self-insurance. Any provision contained in a liability policy or self-insurance available to the lessee or operator of the leased vehicle contrary to the provisions herein shall be of no effect.

SECTION 3. Section 32M is further amended by adding the following words after “section thirty-four A” the following words:- and thirty-four E,