BILL NUMBER: SB 348 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 13, 2009
INTRODUCED BY Senator Cogdill
FEBRUARY 25, 2009
An act to amend Section 1936.01 1936.015
of the Civil Code, relating to passenger vehicle rentals.
LEGISLATIVE COUNSEL'S DIGEST
SB 348, as amended, Cogdill. Passenger vehicle rentals:
advertising.
Existing law , effective May 21, 2009, requires a
passenger vehicle rental company to only advertise a rental rate that
includes the entire amount, except taxes, the increased vehicle
license fee, any customer facility charge, and any mileage
charge, that a renter must pay to hire or lease the vehicle for the
period of time to which the rental rate applies. Existing law
authorizes the rental company to , when imposing
charges for a rental, to separately state the rental rate,
taxes, increased vehicle license fee, customer facility
charge, if any, airport concession fee, if any, tourism commission
assessment, if any, and a mileage charge, if any.
This bill would specifically exclude the airport concession fee,
if any, and tourism commission assessment, if any, from the entire
amount that the rental company must include in its advertised rental
rate.
Existing law, effective May 21, 2009, also requires the rental
company, if customer facility charges, airport concession fees, or
tourism commission assessments are imposed, to provide the person
receiving the quote with a good-faith estimate of the rental rate and
certain taxes and charges, including the increased vehicle license
fee, when the quote is given, to clearly and conspicuously disclose
in the rental contract the total rate and certain taxes and charges,
including the increased vehicle license fee, when the rental
commences, and to provide each person, other than those persons
within the rental company, offering quotes to actual or prospective
customers access to information about certain taxes and charges,
including the increased vehicle license fee.
Existing law, effective May 21, 2009, defines the increased
vehicle license fee as the amount of the fee increase in the vehicle
license fee above 0.65% of the value of the vehicle. Existing law
requires that fee to be separately charged, clearly stated, and
prorated at 1/365 of the fee increase in the annual vehicle license
fee actually paid on the particular vehicle being rented for each
full or partial 24-hour rental day that the vehicle is rented.
Existing law prohibits the total of all increased vehicle license
fees charged to renters from exceeding the fee increase in the annual
vehicle license fee actually paid for the particular vehicle rented.
This bill would provide that if a rental company includes an
increased vehicle license recovery fee in the rental contract, the
amount of the fee shall represent the rental company's good-faith
estimate of the rental company's daily charge calculated to recover
its actual total annual increased vehicle license fee, and shall be
separately and clearly stated. The bill would prohibit the total of
all increased vehicle license recovery fees charged to renters on an
annual basis from exceeding the total fee increase in the annual
vehicle license fees actually paid by the rental company.
The bill would define increased vehicle license recovery fee as a
charge designed to recover costs incurred by a rental company for
payment of increased vehicle license fees.
The bill would also provide that if the total amount of the
increased vehicle license recovery fees collected by a rental company
under these provisions in any calendar year is different than the
total amount paid by a rental company for increased vehicle license
fees, the rental company shall retain the amount collected and adjust
the increased vehicle license recovery fee in the following calendar
year. The bill would provide that nothing in those provisions would
prevent a rental company from making adjustments to the vehicle
license recovery fee more than once during a calendar year.
The bill would make other related, technical changes.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1936.015 of the
Civil Code , as added by Chapter 8 of the Statutes of
2009, of the Second Extraordinary Session, is amended to
read:
1936.015. (a) For the purposes of this section, the following
definitions shall apply:
(1) "Vehicle license fee" has the same meaning as in Sections
10751 and 10752 of the Revenue and Taxation Code, as that fee existed
on January 1, 2009.
(2) "Increased vehicle license fee" means the amount of the fee
increase in the vehicle license fee above 0.65 percent of the value
of the vehicle. The
(3) "Increased vehicle license recovery
fee" means a charge designed to recover costs incurred by a rental
company for payment of increased vehicle license fees. If a rental
company includes a vehicle license recovery fee in the rental
contract, the amount of the fee shall represent the rental company's
good-faith estimate of the rental company's daily charge calculated
to recover its actual total annual increased vehicle license
fee , and shall be separately charged,
and clearly stated , and prorated at one-three
hundred sixty-fifth of the fee increase in the annual vehicle license
fee actually paid on the particular vehicle being rented for each
full or partial 24-hour rental day that the vehicle is rented
. The total of all increased vehicle license recovery
fees charged to renters on an annual basis shall not
exceed the total fee increase in the annual vehicle
license fee fees actually paid
for the particular vehicle rented by the rental
company .
(b) Notwithstanding subdivision (n) of Section 1936 or subdivision
(b) of Section 1936.01, upon an increase of the vehicle license fee
above 0.65 percent of the value of the vehicle pursuant to
legislation enacted with the Budget Act of 2009, the following
provisions shall apply with respect to the increased vehicle license
fee:
(1) If the total amount of the increased vehicle license recovery
fees collected by a rental company under this section in any calendar
year is different than the total amount paid by a rental company for
increased vehicle license fees, the rental company shall do both of
the following:
(A) Retain the amount collected.
(B) Adjust the increased vehicle license recovery fee in the
following calendar year.
(2) Nothing in this section shall prevent a rental company from
making adjustments to the vehicle license recovery fee more than once
during a calendar year.
(1)
(3) A rental company shall only advertise a rental rate
that includes the entire amount, except taxes, the increased vehicle
license recovery fee, a customer facility charge, if any,
and a mileage charge, if any, that a renter must pay to hire or
lease the vehicle for the period of time to which the rental rate
applies.
(2)
(4) When providing a quote, or imposing charges for a
rental, the rental company may separately state the rental rate,
taxes, the increased vehicle license recovery fee,
customer facility charge, if any, airport concession fee, if any,
tourism commission assessment, if any, and a mileage charge, if any,
that a renter must pay to hire or lease the vehicle for the period of
time to which the rental rate applies. A rental company may not
charge in addition to the rental rate, taxes, the increased vehicle
license recovery fee, a customer facility charge, if any,
airport concession fee, if any, tourism commission assessment, if
any, and a mileage charge, if any, any fee that must be paid by the
renter as a condition of hiring or leasing the vehicle, such as, but
not limited to, required fuel or airport surcharges other than
customer facility charges and airport concession fees.
(3)
(5) If customer facility charges, airport concession
fees, or tourism commission assessments are imposed, the rental
company shall do each of the following:
(A) At the time the quote is given, provide the person receiving
the quote with a good faith estimate of the rental rate, taxes, the
increased vehicle license recovery fee ,
customer facility charge, if any, airport concession fee, if any, and
tourism commission assessment, if any, as well as the total charges
for the entire rental. The total charges, if provided on an Internet
Web site, shall be displayed in a typeface at least as large as any
rental rate disclosed on that page and shall be provided on a page
that the person receiving the quote may reach by following links
through no more than two Internet Web site pages, including the page
on which the rental rate is first provided. The good faith estimate
may exclude mileage charges and charges for optional items that
cannot be determined prior to completing the reservation based upon
the information provided by the person.
(B) At the time and place the rental commences, clearly and
conspicuously disclose in the rental contract, or that portion of the
contract that is provided to the renter, the total of the rental
rate, taxes, the increased vehicle license recovery fee,
customer facility charge, if any, airport concession fee, if any, and
tourism commission assessment, if any, for the entire rental,
exclusive of charges that cannot be determined at the time the rental
commences. Charges imposed pursuant to this subparagraph shall be no
more than the amount of the quote provided in a confirmed
reservation, unless the person changes the terms of the rental
contract subsequent to making the reservation.
(C) Provide each person, other than those persons within the
rental company, offering quotes to actual or prospective customers
access to information about the increased vehicle license
recovery fee, customer facility charges, airport concession
fees, and tourism commission assessments as well as access to
information about when those charges apply. Any person providing
quotes to actual or prospective customers for the hire or lease of a
vehicle from a rental company shall provide the quotes in the manner
described in subparagraph (A).
(4)
(6) In addition to the rental rate, taxes, the
increased vehicle license recovery fee, customer facility
charges, if any, airport concession fees, if any, tourism commission
assessments, if any, and mileage charges, if any, a rental company
may charge for an item or service provided in connection with a
particular rental transaction if the renter could have avoided
incurring the charge by choosing not to obtain or utilize the
optional item or service. Items and services for which the rental
company may impose an additional charge, include, but are not limited
to, optional insurance and accessories requested by the renter,
service charges incident to the renter's optional return of the
vehicle to a location other than the location where the vehicle was
hired or leased, and charges for refueling the vehicle at the
conclusion of the rental transaction in the event the renter did not
return the vehicle with as much fuel as was in the fuel tank at the
beginning of the rental. A rental company also may impose an
additional charge based on reasonable age criteria established by the
rental company.
(5)
(7) A rental company may not charge any fee for
authorized drivers in addition to the rental charge for an individual
renter.
(6)
(8) If a rental company states a rental rate in print
advertisement or in a telephonic, in-person, or computer-transmitted
quote, the rental company shall clearly disclose in that
advertisement or quote the terms of any mileage conditions relating
to the rental rate disclosed in the advertisement or quote,
including, but not limited to, to the extent applicable, the amount
of mileage and gas charges, the number of miles for which no charges
will be imposed, and a description of geographic driving limitations
within the United States and Canada.
(7)
(9) (A) When a rental rate is stated in an
advertisement, in connection with a car rental at an airport where a
customer facility charge is imposed, the rental company shall clearly
disclose the existence and amount of the customer facility charge.
For the purposes of this subparagraph, advertisements include radio,
television, other electronic media, and print advertisements. If the
rental rate advertisement is intended to include transactions at more
than one airport imposing a customer facility charge, a range of
charges may be stated in the advertisement. However, all rental rate
advertisements that include car rentals at airport destinations shall
clearly and conspicuously include a toll-free telephone number
whereby a customer can be told the specific amount of the customer
facility charge to which the customer will be obligated.
(B) If any person or entity other than a rental car
company, including a passenger carrier or a seller of
travel services, advertises a rental rate for a car rental at an
airport where a customer facility charge is imposed, that person or
entity shall, provided they are provided with information about the
existence and amount of the charge, to the extent not specifically
prohibited by federal law, clearly disclose the existence and amount
of the charge. If a rental car company provides
the person or entity with rental rate and customer facility charge
information, the rental car company is not
responsible for the failure of that person or entity to comply with
this subparagraph.
(8)
(10) If a rental company delivers a vehicle to a renter
at a location other than the location where the rental company
normally carries on its business, the rental company may not charge
the renter any amount for the rental for the period before the
delivery of the vehicle. If a rental company picks up a rented
vehicle from a renter at a location other than the location where the
rental company normally carries on its business, the rental company
may not charge the renter any amount for the rental for the period
after the renter notifies the rental company to pick up the vehicle.
(9)
(11) Except as otherwise permitted pursuant to the
customer facility charge, a rental company may not separately charge,
in addition to the rental rate, a fee for transporting the renter to
the location where the rented vehicle will be delivered to the
renter.
(c) A renter may bring an action against a rental company for the
recovery of damages and appropriate equitable relief for a violation
of this section. The prevailing party shall be entitled to recover
reasonable attorney's fees and costs.
(d) Any waiver of any of the provisions of this section shall be
void and unenforceable as contrary to public policy.
(e) (1) This section shall
become operative only if Senate Bill 3 or Assembly Bill 3 of the
2009-10 Third Extraordinary Session of the Legislature is enacted and
increases the vehicle license fee above 0.65 percent of the value of
the vehicle and shall cease to become operative upon restoration of
the vehicle license fee to no more than 0.65 percent of the value of
the vehicle.
(2) Provisions of this section relating to the disclosure and
separately stated charges for a customer facility charge or an
airport concession fee shall remain operative so long as the
Secretary of Business, Transportation and Housing provides notice to
the Legislature and the Secretary of State and posts notice on its
Internet Web site that the conditions described in Section 13995.92
of the Government Code have been satisfied.
SECTION 1. Section 1936.01 of the Civil Code is
amended to read:
1936.01. (a) For the purpose of this section, the following
definitions shall apply:
(1) "Airport concession fee" means a charge collected by a rental
company from a renter that is the renter's proportionate share of the
amount paid by the rental company to the owner or operator of an
airport for the right or privilege of conducting a vehicle rental
business on the airport's premises.
(2) "Quote" means an estimated cost of rental provided by a rental
company or a third party to a potential customer by telephone,
in-person, computer-transmission, or other means, that is based on
information provided by the potential customer and used to generate
an estimated cost of rental, including, but not limited to, any of
the following: potential dates of rental, locations, or classes of
car.
(3) "Tourism commission assessment" means the charge collected by
a rental company from a renter that has been established by the
California Travel and Tourism Commission pursuant to Section 13995.65
of the Government Code.
(b) Notwithstanding subdivision (n) of Section 1936, the following
provisions shall apply:
(1) A rental company shall only advertise a rental rate that
includes the entire amount, except taxes, a customer facility charge,
if any, the airport concession fee, if any, tourism commission
assessment, if any, and a mileage charge, if any, that a renter must
pay to hire or lease the vehicle for the period of time to which the
rental rate applies.
(2) When providing a quote, or imposing charges for a rental, the
rental company may separately state the rental rate, taxes, customer
facility charge, if any, airport concession fee, if any, tourism
commission assessment, if any, and a mileage charge, if any, that a
renter must pay to hire or lease the vehicle for the period of time
to which the rental rate applies. A rental company may not charge in
addition to the rental rate, taxes, a customer facility charge, if
any, airport concession fee, if any, tourism commission assessment,
if any, and a mileage charge, if any, any fee that must be paid by
the renter as a condition of hiring or leasing the vehicle, such as,
but not limited to, required fuel or airport surcharges other than
customer facility charges and airport concession fees.
(3) If customer facility charges, airport concession fees, or
tourism commission assessments are imposed, the rental company shall
do each of the following:
(A) At the time the quote is given, provide the person receiving
the quote with a good faith estimate of the rental rate, taxes,
customer facility charge, if any, airport concession fee, if any, and
tourism commission assessment, if any, as well as the total charges
for the entire rental. The total charges, if provided on an Internet
Web site, shall be displayed in a typeface at least as large as any
rental rate disclosed on that page and shall be provided on a page
that the person receiving the quote may reach by following links
through no more than two Internet Web site pages, including the page
on which the rental rate is first provided. The good faith estimate
may exclude mileage charges and charges for optional items that
cannot be determined prior to completing the reservation based upon
the information provided by the person.
(B) At the time and place the rental commences, clearly and
conspicuously disclose in the rental contract, or that portion of the
contract that is provided to the renter, the total of the rental
rate, taxes, customer facility charge, if any, airport concession
fee, if any, and tourism commission assessment, if any, for the
entire rental, exclusive of charges that cannot be determined at the
time the rental commences. Charges imposed pursuant to this
subparagraph shall be no more than the amount of the quote provided
in a confirmed reservation, unless the person changes the terms of
the rental contract subsequent to making the reservation.
(C) Provide each person, other than those persons within the
rental company, offering quotes to actual or prospective customers
access to information about customer facility charges, airport
concession fees, and tourism commission assessments as well as access
to information about when those charges apply. Any person providing
quotes to actual or prospective customers for the hire or lease of a
vehicle from a rental company shall provide the quotes in the manner
described in subparagraph (A).
(4) In addition to the rental rate, taxes, customer facility
charges, if any, airport concession fees, if any, tourism commission
assessments, if any, and mileage charges, if any, a rental company
may charge for an item or service provided in connection with a
particular rental transaction if the renter could have avoided
incurring the charge by choosing not to obtain or utilize the
optional item or service. Items and services for which the rental
company may impose an additional charge, include, but are not limited
to, optional insurance and accessories requested by the renter,
service charges incident to the renter's optional return of the
vehicle to a location other than the location where the vehicle was
hired or leased, and charges for refueling the vehicle at the
conclusion of the rental transaction in the event the renter did not
return the vehicle with as much fuel as was in the fuel tank at the
beginning of the rental. A rental company also may impose an
additional charge based on reasonable age criteria established by the
rental company.
(5) A rental company may not charge any fee for authorized drivers
in addition to the rental charge for an individual renter.
(6) If a rental company states a rental rate in print
advertisement or in a telephonic, in-person, or computer-transmitted
quote, the rental company shall clearly disclose in that
advertisement or quote the terms of any mileage conditions relating
to the rental rate disclosed in the advertisement or quote,
including, but not limited to, to the extent applicable, the amount
of mileage and gas charges, the number of miles for which no charges
will be imposed, and a description of geographic driving limitations
within the United States and Canada.
(7) (A) When a rental rate is stated in an advertisement, in
connection with a car rental at an airport where a customer facility
charge is imposed, the rental company shall clearly disclose the
existence and amount of the customer facility charge. For the
purposes of this subparagraph, advertisements include radio,
television, other electronic media, and print advertisements. If the
rental rate advertisement is intended to include transactions at more
than one airport imposing a customer facility charge, a range of
charges may be stated in the advertisement. However, all rental rate
advertisements that include car rentals at airport destinations shall
clearly and conspicuously include a toll-free telephone number
whereby a customer can be told the specific amount of the customer
facility charge to which the customer will be obligated.
(B) If any person or entity other than a rental car company,
including a passenger carrier or a seller of travel services,
advertises a rental rate for a car rental at an airport where a
customer facility charge is imposed, that person or entity shall,
provided they are provided with information about the existence and
amount of the charge, to the extent not specifically prohibited by
federal law, clearly disclose the existence and amount of the charge.
If a rental car company provides the person or entity with rental
rate and customer facility charge information, the rental car company
is not responsible for the failure of that person or entity to
comply with this subparagraph.
(8) If a rental company delivers a vehicle to a renter at a
location other than the location where the rental company normally
carries on its business, the rental company may not charge the renter
any amount for the rental for the period before the delivery of the
vehicle. If a rental company picks up a rented vehicle from a renter
at a location other than the location where the rental company
normally carries on its business, the rental company may not charge
the renter any amount for the rental for the period after the renter
notifies the rental company to pick up the vehicle.
(9) Except as otherwise permitted pursuant to the customer
facility charge, a rental company may not separately charge, in
addition to the rental rate, a fee for transporting the renter to the
location where the rented vehicle will be delivered to the renter.
(c) A renter may bring an action against a rental company for the
recovery of damages and appropriate equitable relief for a violation
of this section. The prevailing party shall be entitled to recover
reasonable attorney's fees and costs.
(d) Any waiver of any of the provisions of this section shall be
void and unenforceable as contrary to public policy.
(e) This section shall become operative only if the Secretary of
Business, Transportation and Housing provides notice to the
Legislature and the Secretary of State and posts notice on its
Internet Web site that the conditions described in Section 13995.92
of the Government Code have been satisfied.
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Digest--Pages 1 and 2.
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