BILL NUMBER: SB 348 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 20, 2009
AMENDED IN SENATE APRIL 13, 2009
INTRODUCED BY Senator Cogdill
FEBRUARY 25, 2009
An act to amend Section 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, 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.
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.
This bill would define "increased vehicle license recovery fee" as
a charge that seeks to recover the amount of increased vehicle
license fees actually paid by a rental company for the particular
class of vehicle being rented. The bill would require a rental
company to calculate every 3 months the daily increased vehicle
license recovery fee by prorating at 1/365 of the average increased
vehicle license fee for vehicles in each particular class of vehicle
being rented based on the increase in the annual vehicle license fee
actually paid during the preceding 12 months for each class of
vehicle being rented. The bill would require the rental companies to
reconcile the amount of increased vehicle license fees actually paid
by the rental company for each class of vehicle and the amount of
increased vehicle license recovery fees charged to customers for
rental of vehicles in those classes, and to post that information on
its Internet Web site, as specified. The bill would prohibit the
total of all increased vehicle license fees actually paid by the
rental company for each class of vehicle from exceeding the total of
increased vehicle license recovery fees charged to customers for
rental of vehicles in those classes on an annual basis.
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.
(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
and clearly stated. 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 fees actually
paid by the rental company.
(3) "Increased vehicle license recovery fee" means a charge that
seeks to recover the amount of increased vehicle license fees
actually paid by a rental company for the particular class of vehicle
being rented. The increased vehicle license recovery fee shall be
calculated as provided in paragraph (1) of subdivision (b).
(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) A rental company shall calculate the amount of the increased
vehicle license recovery fee in the following manner:
(A) The initial calculation required by this section shall be made
as of August 21, 2009, and shall include the three-month period of
May 21, 2009, to August 21, 2009, inclusive. Subsequent calculations
shall be made every three months thereafter.
(B) The rental company shall determine the total amount of the
increased vehicle license fee actually paid during the twelve months
preceding the calculation date, for each particular class of vehicle
being rented.
(C) The total amount of increased vehicle license fee actually
paid for each class of vehicle shall be divided by the number of
vehicles in the class, to determine the average increased vehicle
license fee for each class.
(D) The average increased vehicle license fee for vehicles in each
class shall be prorated at one three-hundred-and-sixty-fifth, to
determine the daily increased vehicle license recovery fee for
vehicles in each particular class of vehicle, to be charged for each
full or partial 24-hour rental day that the vehicle is rented.
(2) As of November 21, 2009, and annually as of each November 21
thereafter, a rental company shall reconcile the amount of increased
vehicle license fees actually paid by the rental company during the
preceding 12 months for each class of vehicle and the amount of
increased vehicle license recovery fees charged to customers during
that same 12-month period for rental of vehicles in those classes.
The rental company shall post that information on its Internet Web
site by December 31 of each year.
(3) The total of all increased vehicle license fees actually paid
by the rental company for each class of vehicle on an annual basis
shall not exceed the total of increased vehicle license recovery fees
charged to customers for rental of vehicles in those classes on an
annual basis.
(3)
(4) 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.
(4)
(5) 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.
(5)
(6) 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).
(6)
(7) 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.
(7)
(8) A rental company may not charge any fee for
authorized drivers in addition to the rental charge for an individual
renter.
(8)
(9) 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.
(9)
(10) (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 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
company provides the person or entity with rental rate and customer
facility charge information, the rental company is not responsible
for the failure of that person or entity to comply with this
subparagraph.
(10)
(11) 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.
(11)
(12) 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 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 three months after the
restoration of the vehicle license fee to no more than 0.65 percent
of the value of the vehicle.