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, , wherein the amount of the rental is determinable in whole or in

part by the distance such motor vehicles or trailers travel or any similar system including rentals based

on daily, weekly, hourly or monthly rental rates, 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. Further, no

lessor is required to verify such license with the Registry of Motor Vehicles or via any other electronic

services.

     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 striking the second paragraph and replacing it with the following:

Every lessor shall provide and maintain, during such time as he engages in the business of leasing motor vehicles under any system referred to in section thirty-two C, a motor vehicle liability policy or bond or deposit up to the minimum financial requirements imposed on owners or registrants , on a secondary or contingent basis if the lessee or operator does not have a motor vehicle liability policy, or other coverage, which, in addition to providing indemnity, protection or security for personal injuries, shall, except in the case of vehicles leased for a term of more than thirty days, further provide indemnity, protection or security for damage to property as required by the provisions of this chapter. If another valid and collectible liability policy or other form of financial security satisfies the minimum financial requirements imposed on owners or registrants, a lessor’s obligation under the law is satisfied.

               SECTION 3. Section 34M is further amended by adding the following words: “and/or thirty-two E” any time “section thirty-four A” appears in this section. -,