Amended in Assembly May 13, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 359


Introduced by Assembly Member Holden

(Principal coauthor: Assembly Member Allen)

February 14, 2013


An act to amend Section 1936 of the Civil Code, relating to vehicle rental agreements.

LEGISLATIVE COUNSEL’S DIGEST

AB 359, as amended, Holden. Vehicle rental agreements: customer facility charge.

Existing law governs contracts between rental car companies and their customers. Existing law authorizes a company that rents passenger vehicles to the public to collect a customer facility charge, which means a fee that is required by an airport to be collected to finance, design, and construct airport car rental facilities, transportation systems, and terminal modifications, if specified circumstances apply. Existing law requires the aggregate amount collected from customer facility charges not exceed the reasonable costs, determined based on an independent audit, to finance, design, and construct those facilities.begin insert Existing law requires the audit to be conducted prior to the collection of the customer facility charge, prior to any increase of the charge, and every 3 years after the initial collection of the charge.end insert

This bill wouldbegin delete remove the audit requirement in relation to determining the aggregate amount of the customer facility charge and would make related revisionsend deletebegin insert provide guidelines regarding the scope of the audit, would require the audit to be posted on the airport’s Internet Web site, and would limit the requirement to conduct the audit every end insertbegin insert3 years to those instances where the customer facility charge is used to either operate a common-use transportation system or acquire vehicles for that systemend insert.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1936 of the end insertbegin insertCivil Codeend insertbegin insert, as amended by
2Section 2 of Chapter 32 of the Statutes of 2012, is amended to
3read:end insert

4

1936.  

(a) For the purpose of this section, the following
5definitions shall apply:

6(1) “Rental company” means a person or entity in the business
7of renting passenger vehicles to the public.

8(2) “Renter” means any person in a manner obligated under a
9contract for the lease or hire of a passenger vehicle from a rental
10company for a period of less than 30 days.

11(3) “Authorized driver” means (A) the renter, (B) the renter’s
12spouse if that person is a licensed driver and satisfies the rental
13company’s minimum age requirement, (C) the renter’s employer
14or coworker if he or she is engaged in business activity with the
15renter, is a licensed driver, and satisfies the rental company’s
16minimum age requirement, and (D) a person expressly listed by
17the rental company on the renter’s contract as an authorized driver.

18(4) (A) “Customer facility charge” means any fee, including
19an alternative fee, required by an airport to be collected by a rental
20company from a renter for any of the following purposes:

21(i) To finance, design, and construct consolidated airport car
22rental facilities.

23(ii) To finance, design, construct, and operate common-use
24transportation systems that move passengers between airport
25terminals and those consolidated car rental facilities, and acquire
26vehicles for use in that system.

27(iii) To finance, design, and construct terminal modifications
28solely to accommodate and provide customer access to
29common-use transportation systems.

30(B) The aggregate amount to be collected shall not exceed the
31reasonable costs, as determined by anbegin delete independentend delete auditbegin insert, by an
32independent auditor,end insert
paid for by the airport, to finance, design,
P3    1and construct those facilities.begin insert The auditor shall independently
2examine and substantiate the necessity for and the amount of the
3customer facility charge, including whether the airport’s actual
4or projected costs are supported and justified, any steps the airport
5may take to limit costs, potential alternatives for meeting the
6airport’s revenue needs other than the collection of the fee, and
7whether and to what extent car rental companies or other
8businesses or individuals using the facility or common-use
9transportation system may pay for the costs associated with these
10facilities and systems other than the fee from rental customers, or
11whether the airport did not comply with any provision of this
12subparagraph.end insert
Copies of the audit shall be provided to the
13Assembly and Senate Committees on Judiciary, the Assembly
14Committee on Transportation, and the Senate Committee on
15Transportation and Housingbegin insert and shall be posted on the airport’s
16Internet Web siteend insert
. In the case of a transportation system, the audit
17also shall consider the reasonable costs of providing the transit
18system or busing networkbegin insert pursuant to clause (ii) of subparagraph
19(A)end insert
.begin insert Any audit required by this subparagraph may be included as
20a part of an audit of an airport’s finances.end insert
Notwithstanding clause
21(iii) of subparagraph (A), the fees designated as a customer facility
22charge shall not be used to pay for terminal expansion, gate
23expansion, runway expansion, changes in hours of operation, or
24changes in the number of flights arriving or departing from the
25airport.

26(C) Except as provided in subparagraph (D), the authorization
27given pursuant to this section for an airport to impose a customer
28facility charge shall become inoperative when the bonds used for
29financing are paid.

30(D) If a bond or other form of indebtedness is not used for
31financing, or the bond or other form of indebtedness used for
32financing has been paid, the Oakland International Airport may
33require the collection of a customer facility charge for a period of
34up to 10 years from the imposition of the charge for the purposes
35allowed by, and subject to the conditions imposed by, this section.

36(5) “Damage waiver” means a rental company’s agreement not
37to hold a renter liable for all or any portion of any damage or loss
38related to the rented vehicle, any loss of use of the rented vehicle,
39or any storage, impound, towing, or administrative charges.

P4    1(6) “Electronic surveillance technology” means a technological
2method or system used to observe, monitor, or collect information,
3including telematics, Global Positioning System (GPS), wireless
4technology, or location-based technologies. “Electronic
5surveillance technology” does not include event data recorders
6(EDR), sensing and diagnostic modules (SDM), or other systems
7that are used either:

8(A) For the purpose of identifying, diagnosing, or monitoring
9functions related to the potential need to repair, service, or perform
10maintenance on the rental vehicle.

11(B) As part of the vehicle’s airbag sensing and diagnostic system
12in order to capture safety systems-related data for retrieval after a
13crash has occurred or in the event that the collision sensors are
14activated to prepare the decisionmaking computer to make the
15determination to deploy or not to deploy the airbag.

16(7) “Estimated time for replacement” means the number of hours
17of labor, or fraction thereof, needed to replace damaged vehicle
18parts as set forth in collision damage estimating guides generally
19used in the vehicle repair business and commonly known as “crash
20books.”

21(8) “Estimated time for repair” means a good faith estimate of
22the reasonable number of hours of labor, or fraction thereof, needed
23to repair damaged vehicle parts.

24(9) “Membership program” means a service offered by a rental
25company that permits customers to bypass the rental counter and
26go directly to the car previously reserved. A membership program
27shall meet all of the following requirements:

28(A) The renter initiates enrollment by completing an application
29on which the renter can specify a preference for type of vehicle
30and acceptance or declination of optional services.

31(B) The rental company fully discloses, prior to the enrollee’s
32first rental as a participant in the program, all terms and conditions
33of the rental agreement as well as all required disclosures.

34(C) The renter may terminate enrollment at any time.

35(D) The rental company fully explains to the renter that
36designated preferences, as well as acceptance or declination of
37optional services, may be changed by the renter at any time for
38the next and future rentals.

39(E) An employee designated to receive the form specified in
40subparagraph (C) of paragraph (1) of subdivision (t) is present at
P5    1the lot where the renter takes possession of the car, to receive any
2change in the rental agreement from the renter.

3(10) “Passenger vehicle” means a passenger vehicle as defined
4in Section 465 of the Vehicle Code.

5(b) Except as limited by subdivision (c), a rental company and
6a renter may agree that the renter will be responsible for no more
7than all of the following:

8(1) Physical or mechanical damage to the rented vehicle up to
9its fair market value, as determined in the customary market for
10the sale of that vehicle, resulting from collision regardless of the
11cause of the damage.

12(2) Loss due to theft of the rented vehicle up to its fair market
13value, as determined in the customary market for the sale of that
14vehicle, provided that the rental company establishes by clear and
15convincing evidence that the renter or the authorized driver failed
16to exercise ordinary care while in possession of the vehicle. In
17addition, the renter shall be presumed to have no liability for any
18loss due to theft if (A) an authorized driver has possession of the
19ignition key furnished by the rental company or an authorized
20driver establishes that the ignition key furnished by the rental
21company was not in the vehicle at the time of the theft, and (B) an
22authorized driver files an official report of the theft with the police
23or other law enforcement agency within 24 hours of learning of
24the theft and reasonably cooperates with the rental company and
25the police or other law enforcement agency in providing
26information concerning the theft. The presumption set forth in this
27paragraph is a presumption affecting the burden of proof which
28the rental company may rebut by establishing that an authorized
29driver committed, or aided and abetted the commission of, the
30theft.

31(3) Physical damage to the rented vehicle up to its fair market
32value, as determined in the customary market for the sale of that
33vehicle, resulting from vandalism occurring after, or in connection
34with, the theft of the rented vehicle. However, the renter shall have
35no liability for any damage due to vandalism if the renter would
36have no liability for theft pursuant to paragraph (2).

37(4) Physical damage to the rented vehicle up to a total of five
38hundred dollars ($500) resulting from vandalism unrelated to the
39theft of the rented vehicle.

P6    1(5) Actual charges for towing, storage, and impound fees paid
2by the rental company if the renter is liable for damage or loss.

3(6) An administrative charge, which shall include the cost of
4appraisal and all other costs and expenses incident to the damage,
5loss, repair, or replacement of the rented vehicle.

6(c) The total amount of the renter’s liability to the rental
7company resulting from damage to the rented vehicle shall not
8exceed the sum of the following:

9(1) The estimated cost of parts which the rental company would
10have to pay to replace damaged vehicle parts. All discounts and
11price reductions or adjustments that are or will be received by the
12rental company shall be subtracted from the estimate to the extent
13not already incorporated in the estimate, or otherwise promptly
14credited or refunded to the renter.

15(2) The estimated cost of labor to replace damaged vehicle parts,
16which shall not exceed the product of (A) the rate for labor usually
17paid by the rental company to replace vehicle parts of the type that
18were damaged and (B) the estimated time for replacement. All
19discounts and price reductions or adjustments that are or will be
20received by the rental company shall be subtracted from the
21estimate to the extent not already incorporated in the estimate, or
22otherwise promptly credited or refunded to the renter.

23(3) (A) The estimated cost of labor to repair damaged vehicle
24parts, which shall not exceed the lesser of the following:

25(i) The product of the rate for labor usually paid by the rental
26company to repair vehicle parts of the type that were damaged and
27the estimated time for repair.

28(ii) The sum of the estimated labor and parts costs determined
29under paragraphs (1) and (2) to replace the same vehicle parts.

30(B) All discounts and price reductions or adjustments that are
31or will be received by the rental company shall be subtracted from
32the estimate to the extent not already incorporated in the estimate,
33or otherwise promptly credited or refunded to the renter.

34(4) For the purpose of converting the estimated time for repair
35into the same units of time in which the rental rate is expressed, a
36day shall be deemed to consist of eight hours.

37(5) Actual charges for towing, storage, and impound fees paid
38by the rental company.

39(6) The administrative charge described in paragraph (6) of
40subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
P7    1estimated cost for parts and labor is more than one hundred dollars
2($100) up to and including five hundred dollars ($500), (B) one
3hundred dollars ($100) if the total estimated cost for parts and
4labor exceeds five hundred dollars ($500) up to and including one
5thousand five hundred dollars ($1,500), and (C) one hundred fifty
6dollars ($150) if the total estimated cost for parts and labor exceeds
7one thousand five hundred dollars ($1,500). An administrative
8charge shall not be imposed if the total estimated cost of parts and
9labor is one hundred dollars ($100) or less.

10(d) (1) The total amount of an authorized driver’s liability to
11the rental company, if any, for damage occurring during the
12authorized driver’s operation of the rented vehicle shall not exceed
13the amount of the renter’s liability under subdivision (c).

14(2) A rental company shall not recover from the renter or other
15authorized driver an amount exceeding the renter’s liability under
16subdivision (c).

17(3) A claim against a renter resulting from damage or loss,
18excluding loss of use, to a rental vehicle shall be reasonably and
19rationally related to the actual loss incurred. A rental company
20shall mitigate damages where possible and shall not assert or collect
21a claim for physical damage which exceeds the actual costs of the
22repairs performed or the estimated cost of repairs, if the rental
23company chooses not to repair the vehicle, including all discounts
24and price reductions. However, if the vehicle is a total loss vehicle,
25the claim shall not exceed the total loss vehicle value established
26in accordance with procedures that are customarily used by
27insurance companies when paying claims on total loss vehicles,
28less the proceeds from salvaging the vehicle, if those proceeds are
29retained by the rental company.

30(4) If insurance coverage exists under the renter’s applicable
31personal or business insurance policy and the coverage is confirmed
32during regular business hours, the renter may require that the rental
33company submit any claims to the renter’s applicable personal or
34business insurance carrier. The rental company shall not make any
35written or oral representations that it will not present claims or
36negotiate with the renter’s insurance carrier. For purposes of this
37paragraph, confirmation of coverage includes telephone
38confirmation from insurance company representatives during
39regular business hours. Upon request of the renter and after
40confirmation of coverage, the amount of claim shall be resolved
P8    1between the insurance carrier and the rental company. The renter
2shall remain responsible for payment to the rental car company
3for any loss sustained that the renter’s applicable personal or
4business insurance policy does not cover.

5(5) A rental company shall not recover from the renter or other
6authorized driver for an item described in subdivision (b) to the
7extent the rental company obtains recovery from another person.

8(6) This section applies only to the maximum liability of a renter
9or other authorized driver to the rental company resulting from
10damage to the rented vehicle and not to the liability of another
11person.

12(e) (1) Except as provided in subdivision (f), a damage waiver
13shall provide or, if not expressly stated in writing, shall be deemed
14to provide that the renter has no liability for a damage, loss, loss
15of use, or a cost or expense incident thereto.

16(2) Except as provided in subdivision (f), every limitation,
17exception, or exclusion to a damage waiver is void and
18unenforceable.

19(f) A rental company may provide in the rental contract that a
20damage waiver does not apply under any of the following
21circumstances:

22(1) Damage or loss results from an authorized driver’s (A)
23intentional, willful, wanton, or reckless conduct, (B) operation of
24the vehicle under the influence of drugs or alcohol in violation of
25Section 23152 of the Vehicle Code, (C) towing or pushing
26anything, or (D) operation of the vehicle on an unpaved road if
27the damage or loss is a direct result of the road or driving
28conditions.

29(2) Damage or loss occurs while the vehicle is (A) used for
30commercial hire, (B) used in connection with conduct that could
31be properly charged as a felony, (C) involved in a speed test or
32contest or in driver training activity, (D) operated by a person other
33than an authorized driver, or (E) operated outside the United States.

34(3) An authorized driver who has (A) provided fraudulent
35information to the rental company, or (B) provided false
36information and the rental company would not have rented the
37vehicle if it had instead received true information.

38(g) (1) A rental company that offers or provides a damage
39waiver for any consideration in addition to the rental rate shall
40clearly and conspicuously disclose the following information in
P9    1the rental contract or holder in which the contract is placed and,
2also, in signs posted at the place, such as the counter, where the
3renter signs the rental contract, and, for renters who are enrolled
4in the rental company’s membership program, in a sign that shall
5be posted in a location clearly visible to those renters as they enter
6the location where their reserved rental cars are parked or near the
7exit of the bus or other conveyance that transports the enrollee to
8a reserved car: (A) the nature of the renter’s liability, such as
9liability for all collision damage regardless of cause, (B) the extent
10of the renter’s liability, such as liability for damage or loss up to
11a specified amount, (C) the renter’s personal insurance policy or
12the credit card used to pay for the car rental transaction may
13provide coverage for all or a portion of the renter’s potential
14liability, (D) the renter should consult with his or her insurer to
15determine the scope of insurance coverage, including the amount
16of the deductible, if any, for which the renter is obligated, (E) the
17renter may purchase an optional damage waiver to cover all
18liability, subject to whatever exceptions the rental company
19expressly lists that are permitted under subdivision (f), and (F) the
20range of charges for the damage waiver.

21(2) In addition to the requirements of paragraph (1), a rental
22company that offers or provides a damage waiver shall orally
23disclose to all renters, except those who are participants in the
24rental company’s membership program, that the damage waiver
25may be duplicative of coverage that the customer maintains under
26his or her own policy of motor vehicle insurance. The renter’s
27receipt of the oral disclosure shall be demonstrated through the
28renter’s acknowledging receipt of the oral disclosure near that part
29of the contract where the renter indicates, by the renter’s own
30initials, his or her acceptance or declination of the damage waiver.
31Adjacent to that same part, the contract also shall state that the
32damage waiver is optional. Further, the contract for these renters
33shall include a clear and conspicuous written disclosure that the
34damage waiver may be duplicative of coverage that the customer
35maintains under his or her own policy of motor vehicle insurance.

36(3) The following is an example, for purposes of illustration
37and not limitation, of a notice fulfilling the requirements of
38paragraph (1) for a rental company that imposes liability on the
39renter for collision damage to the full value of the vehicle:

P10   1“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
2AND OPTIONAL DAMAGE WAIVER
3

4You are responsible for all collision damage to the rented vehicle
5even if someone else caused it or the cause is unknown. You are
6responsible for the cost of repair up to the value of the vehicle,
7and towing, storage, and impound fees.

8Your own insurance, or the issuer of the credit card you use to
9pay for the car rental transaction, may cover all or part of your
10financial responsibility for the rented vehicle. You should check
11with your insurance company, or credit card issuer, to find out
12about your coverage and the amount of the deductible, if any, for
13which you may be liable.

14Further, if you use a credit card that provides coverage for your
15potential liability, you should check with the issuer to determine
16if you must first exhaust the coverage limits of your own insurance
17before the credit card coverage applies.

18The rental company will not hold you responsible if you buy a
19damage waiver. But a damage waiver will not protect you if (list
20exceptions).”


22(A) When the above notice is printed in the rental contract or
23holder in which the contract is placed, the following shall be printed
24immediately following the notice:


26“The cost of an optional damage waiver is $____ for every (day
27or week).”


29(B) When the above notice appears on a sign, the following
30shall appear immediately adjacent to the notice:


32“The cost of an optional damage waiver is $____ to $____ for
33every (day or week), depending upon the vehicle rented.”


35(h) Notwithstanding any other provision of law, a rental
36company may sell a damage waiver subject to the following rate
37limitations for each full or partial 24-hour rental day for the damage
38waiver.

39(1) For rental vehicles that the rental company designates as an
40“economy car,” “subcompact car,” “compact car,” or another term
P11   1having similar meaning when offered for rental, or another vehicle
2having a manufacturer’s suggested retail price of nineteen thousand
3dollars ($19,000) or less, the rate shall not exceed nine dollars
4($9).

5(2) For rental vehicles that have a manufacturer’s suggested
6retail price from nineteen thousand one dollars ($19,001) to
7thirty-four thousand nine hundred ninety-nine dollars ($34,999),
8inclusive, and that are also either vehicles of next year’s model,
9or not older than the previous year’s model, the rate shall not
10exceed fifteen dollars ($15). For those rental vehicles older than
11the previous year’s model-year, the rate shall not exceed nine
12dollars ($9).

13(i) The manufacturer’s suggested retail prices described in
14subdivision (h) shall be adjusted annually to reflect changes from
15the previous year in the Consumer Price Index. For the purposes
16of this section, “Consumer Price Index” means the United States
17Consumer Price Index for All Urban Consumers, for all items.

18(j) A rental company that disseminates in this state an
19advertisement containing a rental rate shall include in that
20advertisement a clearly readable statement of the charge for a
21damage waiver and a statement that a damage waiver is optional.

22(k) (1) A rental company shall not require the purchase of a
23damage waiver, optional insurance, or another optional good or
24service.

25(2) A rental company shall not engage in any unfair, deceptive,
26or coercive conduct to induce a renter to purchase the damage
27waiver, optional insurance, or another optional good or service,
28including conduct such as, but not limited to, refusing to honor
29the renter’s reservation, limiting the availability of vehicles,
30 requiring a deposit, or debiting or blocking the renter’s credit card
31account for a sum equivalent to a deposit if the renter declines to
32purchase the damage waiver, optional insurance, or another
33optional good or service.

34(l) (1) In the absence of express permission granted by the
35renter subsequent to damage to, or loss of, the vehicle, a rental
36company shall not seek to recover any portion of a claim arising
37out of damage to, or loss of, the rented vehicle by processing a
38credit card charge or causing a debit or block to be placed on the
39renter’s credit card account.

P12   1(2) A rental company shall not engage in any unfair, deceptive,
2or coercive tactics in attempting to recover or in recovering on any
3claim arising out of damage to, or loss of, the rented vehicle.

4(m) (1) A customer facility charge may be collected by a rental
5company under the following circumstances:

6(A) Collection of the fee by the rental company is required by
7an airport operated by a city, a county, a city and county, a joint
8powers authority, a special district, or the San Diego County
9Regional Airport Authority formed pursuant to Division 17
10(commencing with Section 170000) of the Public Utilities Code.

11(B) The fee is calculated on a per contract basis or as provided
12in paragraph (2).

13(C) The fee is a user fee, not a tax imposed upon real property
14or an incidence of property ownership under Article XIII D of the
15California Constitution.

16(D) Except as otherwise provided in subparagraph (E), the fee
17shall be ten dollars ($10) per contract or the amount provided in
18paragraph (2).

19(E) The fee for a consolidated rental car facility shall be
20collected only from customers of on-airport rental car companies.
21If the fee imposed by the airport is for both a consolidated rental
22car facility and a common-use transportation system, the fee
23collected from customers of on-airport rental car companies shall
24be ten dollars ($10) or the amount provided in paragraph (2), but
25the fee imposed on customers of off-airport rental car companies
26who are transported on the common-use transportation system is
27proportionate to the costs of the common-use transportation system
28only. The fee is uniformly applied to each class of on-airport or
29off-airport customers, provided that the airport requires off-airport
30customers to use the common-use transportation system. For
31purposes of this subparagraph, “on-airport rental car company”
32means a rental company operating under an airport property lease
33 or an airport concession or license agreement whose customers
34use or will use the consolidated rental car facility and the collection
35of the fee as to those customers is consistent with subparagraph
36(C).

37(F) Revenues collected from the fee do not exceed the reasonable
38costs of financing, designing, and constructing the facility and
39financing, designing, constructing, and operating any common-use
P13   1transportation system, or acquiring vehicles for use in that system,
2and shall not be used for any other purpose.

3(G) The fee is separately identified on the rental agreement.

4(H) This paragraph does not apply to fees which are governed
5by Section 50474.1 of the Government Code or Section 57.5 of
6the San Diego Unified Port District Act.

7(I) For any airport seeking to require rental car companies to
8collect an alternative customer facility charge pursuant to paragraph
9(2), the following provisions apply:

10(i) Notwithstanding Section 10231.5 of the Government Code,
11the airport shall provide reports on an annual basis to the Senate
12and Assembly Committees on Judiciary detailing all of the
13following:

14(I) The total amount of the customer facility charge collected.

15(II) How the funds are being spent.

16(III) The amount of and reason for any changes in the airport’s
17budget or financial needs for the facility or common-use
18transportation system.

19(IV) Whether airport concession fees authorized by Section
201936.01 have increased since the prior report, if any.

21(ii) begin insert(I)end insertbegin insertend insert The airport shall complete thebegin delete independentend delete audit
22required by subparagraph (B) of paragraph (4) of subdivision (a)
23prior to initial collection of the customer facilitybegin delete charge,end deletebegin insert charge
24andend insert
prior to any increase pursuant to paragraphbegin delete (2), and every three
25years after initial collection and any increaseend delete
begin insert (2). An audit shall
26be completed every three years after initial collection only if the
27customer facility charge is used for the purpose of operating a
28common-use transportation system or to acquire vehicles for use
29in such a system pursuant to clause (ii) of subparagraph (A) of
30paragraph (4) of subdivision (a). An audit conducted pursuant to
31this clause may be included in an annual audit of an airport’s
32finances. This obligation shall continueend insert
until such time as the fee
33authorization becomes inoperative pursuant to subparagraph (C)
34of paragraph (4) of subdivision (a).

begin insert

35(II) This section shall not be construed to require an airport to
36audit a common-use transportation system not financed by a
37customer facility charge and used for the purposes permitted
38pursuant to clause (ii) of subparagraph (A) of paragraph(4) of
39 subdivision (a).

end insert

P14   1(iii) Use of the bonds shall be limited to construction and design
2of the consolidated rental car facility, terminal modifications, and
3operating costs of the common-use transportation system, as
4specified in paragraph (4) of subdivision (a).

5(2) Any airport may require rental car companies to collect an
6alternative customer facility charge under the following conditions:

7(A) The airport first conducts a publicly noticed hearing pursuant
8to the Ralph M. Brown Act (Chapter 9 (commencing with Section
954950) of Part 1 of Division 2 of Title 5 of the Government Code)
10to review the costs of financing the design and construction of a
11consolidated rental car facility and the design, construction, and
12operation of any common-use transportation system in which all
13of the following occur:

14(i) The airport establishes the amount of revenue necessary to
15finance the reasonable cost to design and construct a consolidated
16rental car facility and to design, construct, and operate any
17common-use transportation system, or acquire vehicles for use in
18that system, based on evidence presented during the hearing.

19(ii) The airport finds, based on evidence presented during the
20hearing, that the fee authorized in paragraph (1) will not generate
21sufficient revenue to finance the reasonable costs to design and
22construct a consolidated rental car facility and to design, construct,
23and operate any common-use transportation system, or acquire
24vehicles for use in that system.

25(iii) The airport finds that the reasonable cost of the project
26requires the additional amount of revenue that would be generated
27by the proposed daily rate, including any rate increase, authorized
28pursuant to this paragraph.

29(iv) The airport outlines each of the following:

30(I) Steps it has taken to limit costs.

31(II) Other potential alternatives for meeting its revenue needs
32other than the collection of the fee.

33(III) The extent to which rental car companies or other
34businesses or individuals using the facility or common-use
35transportation system will pay for the costs associated with these
36facilities and systems other than the fee from rental customers.

37(B) The airport may not require the fee authorized in this
38paragraph to be collected at any time that the fee authorized in
39paragraph (1) of this subdivision is being collected.

P15   1(C) Pursuant to the procedure set forth in this subdivision, the
2fee may be collected at a rate charged on a per-day basis subject
3to the following conditions:

4(i) Commencing January 1, 2011, the amount of the fee may
5not exceed six dollars ($6) per day.

6(ii) Commencing January 1, 2014, the amount of the fee may
7not exceed seven dollars and fifty cents ($7.50) per day.

8(iii) Commencing January 1, 2017, and thereafter, the amount
9of the fee may not exceed nine dollars ($9) per day.

10(iv) At no time shall the fee authorized in this paragraph be
11collected from any customer for more than five days for each
12individual rental car contract.

13(v) An airport subject to this paragraph shall initiate the process
14for obtaining the authority to require or increase the alternative
15fee no later than January 1, 2018. Any airport that obtains the
16authority to require or increase an alternative fee shall be authorized
17to continue collecting that fee until the fee authorization becomes
18inoperative pursuant to subparagraph (C) of paragraph (4) of
19subdivision (a).

20(3) Notwithstanding any other provision of law, including, but
21not limited to, Part 1 (commencing with Section 6001) to Part 1.7
22(commencing with Section 7280), inclusive, of Division 2 of the
23Revenue and Taxation Code, the fees collected pursuant to this
24section, or another law whereby a local agency operating an airport
25requires a rental car company to collect a facility financing fee
26from its customers, are not subject to sales, use, or transaction
27taxes.

28(n) (1) A rental company shall only advertise, quote, and charge
29a rental rate that includes the entire amount except taxes, a
30customer facility charge, if any, and a mileage charge, if any, that
31a renter must pay to hire or lease the vehicle for the period of time
32to which the rental rate applies. A rental company shall not charge
33in addition to the rental rate, taxes, a customer facility charge, if
34any, and a mileage charge, if any, any fee that is required to be
35paid by the renter as a condition of hiring or leasing the vehicle,
36including, but not limited to, required fuel or airport surcharges
37other than customer facility charges, nor a fee for transporting the
38renter to the location where the rented vehicle will be delivered to
39the renter.

P16   1(2) In addition to the rental rate, taxes, customer facility charges,
2if any, and mileage charges, if any, a rental company may charge
3for an item or service provided in connection with a particular
4rental transaction if the renter could have avoided incurring the
5charge by choosing not to obtain or utilize the optional item or
6service. Items and services for which the rental company may
7impose an additional charge include, but are not limited to, optional
8insurance and accessories requested by the renter, service charges
9incident to the renter’s optional return of the vehicle to a location
10other than the location where the vehicle was hired or leased, and
11charges for refueling the vehicle at the conclusion of the rental
12transaction in the event the renter did not return the vehicle with
13as much fuel as was in the fuel tank at the beginning of the rental.
14A rental company also may impose an additional charge based on
15reasonable age criteria established by the rental company.

16(3) A rental company shall not charge a fee for authorized
17drivers in addition to the rental charge for an individual renter.

18(4) If a rental company states a rental rate in print advertisement
19or in a telephonic, in-person, or computer-transmitted quotation,
20the rental company shall disclose clearly in that advertisement or
21quotation the terms of mileage conditions relating to the advertised
22or quoted rental rate, including, but not limited to, to the extent
23applicable, the amount of mileage and gas charges, the number of
24miles for which no charges will be imposed, and a description of
25geographic driving limitations within the United States and Canada.

26(5) (A) When a rental rate is stated in an advertisement,
27quotation, or reservation in connection with a car rental at an airport
28where a customer facility charge is imposed, the rental company
29shall disclose clearly the existence and amount of the customer
30facility charge. For purposes of this subparagraph, advertisements
31include radio, television, other electronic media, and print
32advertisements. For purposes of this subparagraph, quotations and
33reservations include those that are telephonic, in-person, and
34computer-transmitted. If the rate advertisement is intended to
35include transactions at more than one airport imposing a customer
36facility charge, a range of fees may be stated in the advertisement.
37However, all rate advertisements that include car rentals at airport
38destinations shall clearly and conspicuously include a toll-free
39telephone number whereby a customer can be told the specific
P17   1amount of the customer facility charge to which the customer will
2be obligated.

3(B) If a person or entity other than a rental car company,
4including a passenger carrier or a seller of travel services, advertises
5or quotes a rate for a car rental at an airport where a customer
6facility charge is imposed, that person or entity shall, provided
7that he, she, or it is provided with information about the existence
8and amount of the fee, to the extent not specifically prohibited by
9federal law, clearly disclose the existence and amount of the fee
10in any telephonic, in-person, or computer-transmitted quotation at
11the time of making an initial quotation of a rental rate and at the
12time of making a reservation of a rental car. If a rental car company
13provides the person or entity with rate and customer facility charge
14information, the rental car company is not responsible for the
15failure of that person or entity to comply with this subparagraph
16when quoting or confirming a rate to a third person or entity.

17(6) If a rental company delivers a vehicle to a renter at a location
18other than the location where the rental company normally carries
19on its business, the rental company shall not charge the renter an
20amount for the rental for the period before the delivery of the
21vehicle. If a rental company picks up a rented vehicle from a renter
22at a location other than the location where the rental company
23normally carries on its business, the rental company shall not
24charge the renter an amount for the rental for the period after the
25renter notifies the rental company to pick up the vehicle.

26(o) A rental company shall not use, access, or obtain any
27information relating to the renter’s use of the rental vehicle that
28was obtained using electronic surveillance technology, except in
29the following circumstances:

30(1) (A) When the equipment is used by the rental company
31only for the purpose of locating a stolen, abandoned, or missing
32rental vehicle after one of the following:

33(i) The renter or law enforcement has informed the rental
34company that the vehicle is missing or has been stolen or
35abandoned.

36(ii) The rental vehicle has not been returned following one week
37after the contracted return date, or by one week following the end
38of an extension of that return date.

39(iii) The rental company discovers the rental vehicle has been
40stolen or abandoned, and, if stolen, it shall report the vehicle stolen
P18   1to law enforcement by filing a stolen vehicle report, unless law
2enforcement has already informed the rental company that the
3vehicle is missing or has been stolen or abandoned.

4(B) If electronic surveillance technology is activated pursuant
5to subparagraph (A), a rental company shall maintain a record, in
6either electronic or written form, of information relevant to the
7activation of that technology. That information shall include the
8rental agreement, including the return date, and the date and time
9the electronic surveillance technology was activated. The record
10shall also include, if relevant, a record of written or other
11communication with the renter, including communications
12regarding extensions of the rental, police reports, or other written
13communication with law enforcement officials. The record shall
14be maintained for a period of at least 12 months from the time the
15record is created and shall be made available upon the renter’s
16request. The rental company shall maintain and furnish explanatory
17codes necessary to read the record. A rental company shall not be
18required to maintain a record if electronic surveillance technology
19is activated to recover a rental vehicle that is stolen or missing at
20a time other than during a rental period.

21(2) In response to a specific request from law enforcement
22pursuant to a subpoena or search warrant.

23(3) This subdivision does not prohibit a rental company from
24equipping rental vehicles with GPS-based technology that provides
25navigation assistance to the occupants of the rental vehicle, if the
26rental company does not use, access, or obtain information relating
27to the renter’s use of the rental vehicle that was obtained using
28that technology, except for the purposes of discovering or repairing
29a defect in the technology and the information may then be used
30only for that purpose.

31(4) This subdivision does not prohibit a rental company from
32equipping rental vehicles with electronic surveillance technology
33that allows for the remote locking or unlocking of the vehicle at
34the request of the renter, if the rental company does not use, access,
35or obtain information relating to the renter’s use of the rental
36vehicle that was obtained using that technology, except as
37necessary to lock or unlock the vehicle.

38(5) This subdivision does not prohibit a rental company from
39equipping rental vehicles with electronic surveillance technology
40that allows the company to provide roadside assistance, such as
P19   1towing, flat tire, or fuel services, at the request of the renter, if the
2rental company does not use, access, or obtain information relating
3to the renter’s use of the rental vehicle that was obtained using
4that technology except as necessary to provide the requested
5roadside assistance.

6(6) This subdivision does not prohibit a rental company from
7obtaining, accessing, or using information from electronic
8surveillance technology for the sole purpose of determining the
9date and time the vehicle is returned to the rental company, and
10the total mileage driven and the vehicle fuel level of the returned
11vehicle. This paragraph, however, shall apply only after the renter
12has returned the vehicle to the rental company, and the information
13shall only be used for the purpose described in this paragraph.

14(p) A rental company shall not use electronic surveillance
15technology to track a renter in order to impose fines or surcharges
16relating to the renter’s use of the rental vehicle.

17(q) A renter may bring an action against a rental company for
18the recovery of damages and appropriate equitable relief for a
19violation of this section. The prevailing party shall be entitled to
20recover reasonable attorney’s fees and costs.

21(r) A rental company that brings an action against a renter for
22loss due to theft of the vehicle shall bring the action in the county
23in which the renter resides or, if the renter is not a resident of this
24state, in the jurisdiction in which the renter resides.

25(s) A waiver of any of the provisions of this section shall be
26void and unenforceable as contrary to public policy.

27(t) (1) A rental company’s disclosure requirements shall be
28satisfied for renters who are enrolled in the rental company’s
29membership program if all of the following conditions are met:

30(A) Prior to the enrollee’s first rental as a participant in the
31program, the renter receives, in writing, the following:

32(i) All of the disclosures required by paragraph (1) of subdivision
33(g), including the terms and conditions of the rental agreement
34then in effect.

35(ii) An Internet Web site address, as well as a contact number
36or address, where the enrollee can learn of changes to the rental
37agreement or to the laws of this state governing rental agreements
38since the effective date of the rental company’s most recent
39restatement of the rental agreement and distribution of that
40restatement to its members.

P20   1(B) At the commencement of each rental period, the renter is
2provided, on the rental record or the folder in which it is inserted,
3with a printed notice stating that he or she had either previously
4selected or declined an optional damage waiver and that the renter
5has the right to change preferences.

6(C) At the commencement of each rental period, the rental
7company provides, on the rearview mirror, a hanger on which a
8statement is printed, in a box, in at least 12-point boldface type,
9notifying the renter that the collision damage waiver offered by
10the rental company may be duplicative of coverage that the
11customer maintains under his or her own policy of motor vehicle
12insurance. If it is not feasible to hang the statement from the
13rearview mirror, it shall be hung from the steering wheel.

14The hanger shall provide the renter a box to initial if he or she
15(not his or her employer) has previously accepted or declined the
16collision damage waiver and that he or she now wishes to change
17his or her decision to accept or decline the collision damage waiver,
18as follows:


19
20“◻ If I previously accepted the collision damage waiver, I
21now decline it.


22  
23◻ If I previously declined the collision damage waiver, I now
24accept it.”


26The hanger shall also provide a box for the enrollee to indicate
27whether this change applies to this rental transaction only or to all
28future rental transactions. The hanger shall also notify the renter
29that he or she may make that change, prior to leaving the lot, by
30returning the form to an employee designated to receive the form
31who is present at the lot where the renter takes possession of the
32car, to receive any change in the rental agreement from the renter.

33(2) (A) This subdivision is not effective unless the employee
34designated pursuant to subparagraph (E) of paragraph (8) of
35subdivision (a) is actually present at the required location.

36(B) This subdivision does not relieve the rental company from
37the disclosures required to be made within the text of a contract
38or holder in which the contract is placed; in or on an advertisement
39containing a rental rate; or in a telephonic, in-person, or
40computer-transmitted quotation or reservation.

P21   1(u) The amendments made to this section during the 2001-02
2Regular Session of the Legislature do not affect litigation pending
3on or before January 1, 2003, alleging a violation of Section 22325
4of the Business and Professions Code as it read at the time the
5action was commenced.

6(v) (1) When a rental company enters into a rental agreement
7in the state for the rental of a vehicle to any renter who is not a
8resident of this country and, as part of, or associated with, the rental
9agreement, the renter purchases liability insurance, as defined in
10subdivision (b) of Section 1758.85 of the Insurance Code, from
11the rental company in its capacity as a rental car agent for an
12authorized insurer, the rental company shall be authorized to accept,
13and, if served as set forth in this subdivision, shall accept, service
14of a summons and complaint and any other required documents
15against the foreign renter for any accident or collision resulting
16from the operation of the rental vehicle within the state during the
17rental period. If the rental company has a registered agent for
18service of process on file with the Secretary of State, process shall
19be served on the rental company’s registered agent, either by
20first-class mail, return receipt requested, or by personal service.

21(2) Within 30 days of acceptance of service of process, the rental
22company shallbegin delete,end delete provide a copy of the summons and complaint and
23any other required documents served in accordance with this
24subdivision to the foreign renter by first-class mail, return receipt
25requested.

26(3) Any plaintiff, or his or her representative, who elects to serve
27the foreign renter by delivering a copy of the summons and
28complaint and any other required documents to the rental company
29pursuant to paragraph (1) shall agree to limit his or her recovery
30against the foreign renter and the rental company to the limits of
31the protection extended by the liability insurance.

32(4) Notwithstanding the requirements of Sections 17450 to
3317456, inclusive, of the Vehicle Code, service of process in
34compliance with paragraph (1) shall be deemed valid and effective
35service.

36(5) Notwithstanding any other provision of law, the requirement
37that the rental company accept service of process pursuant to
38paragraph (1) shall not create any duty, obligation, or agency
39relationship other than that provided in paragraph (1).

P22   1(w) This section shall remain in effect only until January 1,
22015, and as of that date is repealed, unless a later enacted statute,
3that is enacted before January 1, 2015, deletes or extends that date.

4begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1936 of the end insertbegin insertCivil Codeend insertbegin insert, as amended by Section
53 of Chapter 32 of the Statutes of 2012, is amended to read:end insert

6

1936.  

(a) For the purpose of this section, the following
7definitions shall apply:

8(1) “Rental company” means a person or entity in the business
9of renting passenger vehicles to the public.

10(2) “Renter” means any person in a manner obligated under a
11contract for the lease or hire of a passenger vehicle from a rental
12company for a period of less than 30 days.

13(3) “Authorized driver” means (A) the renter, (B) the renter’s
14spouse if that person is a licensed driver and satisfies the rental
15company’s minimum age requirement, (C) the renter’s employer
16or coworker if he or she is engaged in business activity with the
17renter, is a licensed driver, and satisfies the rental company’s
18minimum age requirement, and (D) a person expressly listed by
19the rental company on the renter’s contract as an authorized driver.

20(4) (A) “Customer facility charge” means any fee, including
21an alternative fee, required by an airport to be collected by a rental
22company from a renter for any of the following purposes:

23(i) To finance, design, and construct consolidated airport car
24rental facilities.

25(ii) To finance, design, construct, and operate common-use
26transportation systems that move passengers between airport
27terminals and those consolidated car rental facilities, and acquire
28vehicles for use in that system.

29(iii) To finance, design, and construct terminal modifications
30solely to accommodate and provide customer access to
31common-use transportation systems.

32(B) The aggregate amount to be collected shall not exceed the
33reasonable costs, as determined by anbegin delete independentend delete auditbegin insert, by an
34independent auditor,end insert
paid for by the airport, to finance, design,
35and construct those facilities.begin insert end insertbegin insert The auditor shall independently
36examine and substantiate the necessity for and the amount of the
37customer facility charge, including whether the airport’s actual
38or projected costs are supported and justified, any steps the airport
39may take to limit costs, potential alternatives for meeting the
40airport’s revenue needs other than the collection of the fee, and
P23   1whether and to what extent car rental companies or other
2businesses or individuals using the facility or common-use
3transportation system may pay for the costs associated with these
4facilities and systems other than the fee from rental customers, or
5whether the airport did not comply with any provision of this
6subparagraph.end insert
Copies of the audit shall be provided to the
7Assembly and Senate Committees on Judiciary, the Assembly
8Committee on Transportation, and the Senate Committee on
9Transportation and Housingbegin insert and shall be posted on the airport’s
10Internet Web siteend insert
. In the case of a transportation system, the audit
11also shall consider the reasonable costs of providing the transit
12system or busing networkbegin insert pursuant to clause (ii) of subparagraph
13(A)end insert
.begin insert Any audit required by this subparagraph may be included as
14a part of an audit of an airport’s finances.end insert
Notwithstanding clause
15(iii) of subparagraph (A), the fees designated as a customer facility
16charge shall not be used to pay for terminal expansion, gate
17expansion, runway expansion, changes in hours of operation, or
18changes in the number of flights arriving or departing from the
19airport.

20(C) Except as provided in subparagraph (D), the authorization
21given pursuant to this section for an airport to impose a customer
22facility charge shall become inoperative when the bonds used for
23financing are paid.

24(D) If a bond or other form of indebtedness is not used for
25financing, or the bond or other form of indebtedness used for
26financing has been paid, the Oakland International Airport may
27require the collection of a customer facility charge for a period of
28up to 10 years from the imposition of the charge for the purposes
29allowed by, and subject to the conditions imposed by, this section.

30(5) “Damage waiver” means a rental company’s agreement not
31to hold a renter liable for all or any portion of any damage or loss
32related to the rented vehicle, any loss of use of the rented vehicle,
33or any storage, impound, towing, or administrative charges.

34(6) “Electronic surveillance technology” means a technological
35method or system used to observe, monitor, or collect information,
36including telematics, Global Positioning System (GPS), wireless
37technology, or location-based technologies. “Electronic
38surveillance technology” does not include event data recorders
39(EDR), sensing and diagnostic modules (SDM), or other systems
40that are used either:

P24   1(A) For the purpose of identifying, diagnosing, or monitoring
2functions related to the potential need to repair, service, or perform
3maintenance on the rental vehicle.

4(B) As part of the vehicle’s airbag sensing and diagnostic system
5in order to capture safety systems-related data for retrieval after a
6crash has occurred or in the event that the collision sensors are
7activated to prepare the decisionmaking computer to make the
8determination to deploy or not to deploy the airbag.

9(7) “Estimated time for replacement” means the number of hours
10of labor, or fraction thereof, needed to replace damaged vehicle
11parts as set forth in collision damage estimating guides generally
12used in the vehicle repair business and commonly known as “crash
13books.”

14(8) “Estimated time for repair” means a good faith estimate of
15the reasonable number of hours of labor, or fraction thereof, needed
16to repair damaged vehicle parts.

17(9) “Membership program” means a service offered by a rental
18company that permits customers to bypass the rental counter and
19go directly to the car previously reserved. A membership program
20shall meet all of the following requirements:

21(A) The renter initiates enrollment by completing an application
22on which the renter can specify a preference for type of vehicle
23and acceptance or declination of optional services.

24(B) The rental company fully discloses, prior to the enrollee’s
25first rental as a participant in the program, all terms and conditions
26of the rental agreement as well as all required disclosures.

27(C) The renter may terminate enrollment at any time.

28(D) The rental company fully explains to the renter that
29designated preferences, as well as acceptance or declination of
30optional services, may be changed by the renter at any time for
31the next and future rentals.

32(E) An employee designated to receive the form specified in
33subparagraph (C) of paragraph (1) of subdivision (t) is present at
34the lot where the renter takes possession of the car, to receive any
35change in the rental agreement from the renter.

36(10) “Passenger vehicle” means a passenger vehicle as defined
37in Section 465 of the Vehicle Code.

38(b) Except as limited by subdivision (c), a rental company and
39a renter may agree that the renter will be responsible for no more
40than all of the following:

P25   1(1) Physical or mechanical damage to the rented vehicle up to
2its fair market value, as determined in the customary market for
3the sale of that vehicle, resulting from collision regardless of the
4cause of the damage.

5(2) Loss due to theft of the rented vehicle up to its fair market
6value, as determined in the customary market for the sale of that
7vehicle, provided that the rental company establishes by clear and
8convincing evidence that the renter or the authorized driver failed
9to exercise ordinary care while in possession of the vehicle. In
10addition, the renter shall be presumed to have no liability for any
11loss due to theft if (A) an authorized driver has possession of the
12ignition key furnished by the rental company or an authorized
13driver establishes that the ignition key furnished by the rental
14company was not in the vehicle at the time of the theft, and (B) an
15authorized driver files an official report of the theft with the police
16or other law enforcement agency within 24 hours of learning of
17the theft and reasonably cooperates with the rental company and
18the police or other law enforcement agency in providing
19information concerning the theft. The presumption set forth in this
20paragraph is a presumption affecting the burden of proof which
21the rental company may rebut by establishing that an authorized
22driver committed, or aided and abetted the commission of, the
23theft.

24(3) Physical damage to the rented vehicle up to its fair market
25value, as determined in the customary market for the sale of that
26vehicle, resulting from vandalism occurring after, or in connection
27with, the theft of the rented vehicle. However, the renter shall have
28no liability for any damage due to vandalism if the renter would
29have no liability for theft pursuant to paragraph (2).

30(4) Physical damage to the rented vehicle up to a total of five
31hundred dollars ($500) resulting from vandalism unrelated to the
32theft of the rented vehicle.

33(5) Actual charges for towing, storage, and impound fees paid
34by the rental company if the renter is liable for damage or loss.

35(6) An administrative charge, which shall include the cost of
36appraisal and all other costs and expenses incident to the damage,
37loss, repair, or replacement of the rented vehicle.

38(c) The total amount of the renter’s liability to the rental
39company resulting from damage to the rented vehicle shall not
40exceed the sum of the following:

P26   1(1) The estimated cost of parts which the rental company would
2have to pay to replace damaged vehicle parts. All discounts and
3price reductions or adjustments that are or will be received by the
4rental company shall be subtracted from the estimate to the extent
5not already incorporated in the estimate, or otherwise promptly
6credited or refunded to the renter.

7(2) The estimated cost of labor to replace damaged vehicle parts,
8which shall not exceed the product of (A) the rate for labor usually
9paid by the rental company to replace vehicle parts of the type that
10were damaged and (B) the estimated time for replacement. All
11discounts and price reductions or adjustments that are or will be
12received by the rental company shall be subtracted from the
13estimate to the extent not already incorporated in the estimate, or
14otherwise promptly credited or refunded to the renter.

15(3) (A) The estimated cost of labor to repair damaged vehicle
16parts, which shall not exceed the lesser of the following:

17(i) The product of the rate for labor usually paid by the rental
18company to repair vehicle parts of the type that were damaged and
19the estimated time for repair.

20(ii) The sum of the estimated labor and parts costs determined
21under paragraphs (1) and (2) to replace the same vehicle parts.

22(B) All discounts and price reductions or adjustments that are
23or will be received by the rental company shall be subtracted from
24the estimate to the extent not already incorporated in the estimate,
25or otherwise promptly credited or refunded to the renter.

26(4) For the purpose of converting the estimated time for repair
27into the same units of time in which the rental rate is expressed, a
28day shall be deemed to consist of eight hours.

29(5) Actual charges for towing, storage, and impound fees paid
30by the rental company.

31(6) The administrative charge described in paragraph (6) of
32subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
33estimated cost for parts and labor is more than one hundred dollars
34($100) up to and including five hundred dollars ($500), (B) one
35hundred dollars ($100) if the total estimated cost for parts and
36labor exceeds five hundred dollars ($500) up to and including one
37thousand five hundred dollars ($1,500), and (C) one hundred fifty
38dollars ($150) if the total estimated cost for parts and labor exceeds
39one thousand five hundred dollars ($1,500). An administrative
P27   1charge shall not be imposed if the total estimated cost of parts and
2labor is one hundred dollars ($100) or less.

3(d) (1) The total amount of an authorized driver’s liability to
4the rental company, if any, for damage occurring during the
5authorized driver’s operation of the rented vehicle shall not exceed
6the amount of the renter’s liability under subdivision (c).

7(2) A rental company shall not recover from the renter or other
8authorized driver an amount exceeding the renter’s liability under
9subdivision (c).

10(3) A claim against a renter resulting from damage or loss,
11excluding loss of use, to a rental vehicle shall be reasonably and
12rationally related to the actual loss incurred. A rental company
13shall mitigate damages where possible and shall not assert or collect
14a claim for physical damage which exceeds the actual costs of the
15repairs performed or the estimated cost of repairs, if the rental
16company chooses not to repair the vehicle, including all discounts
17and price reductions. However, if the vehicle is a total loss vehicle,
18the claim shall not exceed the total loss vehicle value established
19in accordance with procedures that are customarily used by
20insurance companies when paying claims on total loss vehicles,
21less the proceeds from salvaging the vehicle, if those proceeds are
22retained by the rental company.

23(4) If insurance coverage exists under the renter’s applicable
24personal or business insurance policy and the coverage is confirmed
25during regular business hours, the renter may require that the rental
26company submit any claims to the renter’s applicable personal or
27business insurance carrier. The rental company shall not make any
28written or oral representations that it will not present claims or
29negotiate with the renter’s insurance carrier. For purposes of this
30paragraph, confirmation of coverage includes telephone
31confirmation from insurance company representatives during
32regular business hours. Upon request of the renter and after
33confirmation of coverage, the amount of claim shall be resolved
34between the insurance carrier and the rental company. The renter
35shall remain responsible for payment to the rental car company
36for any loss sustained that the renter’s applicable personal or
37business insurance policy does not cover.

38(5) A rental company shall not recover from the renter or other
39authorized driver for an item described in subdivision (b) to the
40extent the rental company obtains recovery from another person.

P28   1(6) This section applies only to the maximum liability of a renter
2or other authorized driver to the rental company resulting from
3damage to the rented vehicle and not to the liability of another
4person.

5(e) (1) Except as provided in subdivision (f), a damage waiver
6shall provide or, if not expressly stated in writing, shall be deemed
7to provide that the renter has no liability for a damage, loss, loss
8of use, or a cost or expense incident thereto.

9(2) Except as provided in subdivision (f), every limitation,
10exception, or exclusion to a damage waiver is void and
11unenforceable.

12(f) A rental company may provide in the rental contract that a
13damage waiver does not apply under any of the following
14circumstances:

15(1) Damage or loss results from an authorized driver’s (A)
16intentional, willful, wanton, or reckless conduct, (B) operation of
17the vehicle under the influence of drugs or alcohol in violation of
18Section 23152 of the Vehicle Code, (C) towing or pushing
19anything, or (D) operation of the vehicle on an unpaved road if
20the damage or loss is a direct result of the road or driving
21conditions.

22(2) Damage or loss occurs while the vehicle is (A) used for
23commercial hire, (B) used in connection with conduct that could
24be properly charged as a felony, (C) involved in a speed test or
25contest or in driver training activity, (D) operated by a person other
26than an authorized driver, or (E) operated outside the United States.

27(3) An authorized driver who has (A) provided fraudulent
28information to the rental company, or (B) provided false
29information and the rental company would not have rented the
30vehicle if it had instead received true information.

31(g) (1) A rental company that offers or provides a damage
32waiver for any consideration in addition to the rental rate shall
33clearly and conspicuously disclose the following information in
34the rental contract or holder in which the contract is placed and,
35also, in signs posted at the place, such as the counter, where the
36renter signs the rental contract, and, for renters who are enrolled
37in the rental company’s membership program, in a sign that shall
38be posted in a location clearly visible to those renters as they enter
39the location where their reserved rental cars are parked or near the
40exit of the bus or other conveyance that transports the enrollee to
P29   1a reserved car: (A) the nature of the renter’s liability, such as
2liability for all collision damage regardless of cause, (B) the extent
3of the renter’s liability, such as liability for damage or loss up to
4a specified amount, (C) the renter’s personal insurance policy or
5the credit card used to pay for the car rental transaction may
6provide coverage for all or a portion of the renter’s potential
7liability, (D) the renter should consult with his or her insurer to
8determine the scope of insurance coverage, including the amount
9of the deductible, if any, for which the renter is obligated, (E) the
10renter may purchase an optional damage waiver to cover all
11liability, subject to whatever exceptions the rental company
12expressly lists that are permitted under subdivision (f), and (F) the
13range of charges for the damage waiver.

14(2) In addition to the requirements of paragraph (1), a rental
15company that offers or provides a damage waiver shall orally
16disclose to all renters, except those who are participants in the
17rental company’s membership program, that the damage waiver
18may be duplicative of coverage that the customer maintains under
19his or her own policy of motor vehicle insurance. The renter’s
20receipt of the oral disclosure shall be demonstrated through the
21renter’s acknowledging receipt of the oral disclosure near that part
22of the contract where the renter indicates, by the renter’s own
23initials, his or her acceptance or declination of the damage waiver.
24Adjacent to that same part, the contract also shall state that the
25damage waiver is optional. Further, the contract for these renters
26shall include a clear and conspicuous written disclosure that the
27damage waiver may be duplicative of coverage that the customer
28maintains under his or her own policy of motor vehicle insurance.

29(3) The following is an example, for purposes of illustration
30and not limitation, of a notice fulfilling the requirements of
31paragraph (1) for a rental company that imposes liability on the
32renter for collision damage to the full value of the vehicle:
33

34“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
35AND OPTIONAL DAMAGE WAIVER
36

37You are responsible for all collision damage to the rented vehicle
38even if someone else caused it or the cause is unknown. You are
39responsible for the cost of repair up to the value of the vehicle,
40and towing, storage, and impound fees.

P30   1Your own insurance, or the issuer of the credit card you use to
2pay for the car rental transaction, may cover all or part of your
3financial responsibility for the rented vehicle. You should check
4with your insurance company, or credit card issuer, to find out
5about your coverage and the amount of the deductible, if any, for
6which you may be liable.

7Further, if you use a credit card that provides coverage for your
8potential liability, you should check with the issuer to determine
9if you must first exhaust the coverage limits of your own insurance
10before the credit card coverage applies.

11The rental company will not hold you responsible if you buy a
12damage waiver. But a damage waiver will not protect you if (list
13exceptions).”

14(A) When the above notice is printed in the rental contract or
15holder in which the contract is placed, the following shall be printed
16immediately following the notice:

17“The cost of an optional damage waiver is $____ for every (day
18or week).”

19(B) When the above notice appears on a sign, the following
20shall appear immediately adjacent to the notice:

21“The cost of an optional damage waiver is $____ to $____ for
22every (day or week), depending upon the vehicle rented.”

23(h) Notwithstanding any other provision of law, a rental
24company may sell a damage waiver subject to the following rate
25limitations for each full or partial 24-hour rental day for the damage
26waiver.

27(1) For rental vehicles that the rental company designates as an
28“economy car,” “subcompact car,” “compact car,” or another term
29having similar meaning when offered for rental, or another vehicle
30having a manufacturer’s suggested retail price of nineteen thousand
31dollars ($19,000) or less, the rate shall not exceed nine dollars
32($9).

33(2) For rental vehicles that have a manufacturer’s suggested
34retail price from nineteen thousand one dollars ($19,001) to
35 thirty-four thousand nine hundred ninety-nine dollars ($34,999),
36inclusive, and that are also either vehicles of next year’s model,
37or not older than the previous year’s model, the rate shall not
38exceed fifteen dollars ($15). For those rental vehicles older than
39the previous year’s model-year, the rate shall not exceed nine
40dollars ($9).

P31   1(i) The manufacturer’s suggested retail prices described in
2subdivision (h) shall be adjusted annually to reflect changes from
3the previous year in the Consumer Price Index. For the purposes
4of this section, “Consumer Price Index” means the United States
5Consumer Price Index for All Urban Consumers, for all items.

6(j) A rental company that disseminates in this state an
7advertisement containing a rental rate shall include in that
8advertisement a clearly readable statement of the charge for a
9damage waiver and a statement that a damage waiver is optional.

10(k) (1) A rental company shall not require the purchase of a
11damage waiver, optional insurance, or another optional good or
12service.

13(2) A rental company shall not engage in any unfair, deceptive,
14or coercive conduct to induce a renter to purchase the damage
15waiver, optional insurance, or another optional good or service,
16including conduct such as, but not limited to, refusing to honor
17the renter’s reservation, limiting the availability of vehicles,
18requiring a deposit, or debiting or blocking the renter’s credit card
19account for a sum equivalent to a deposit if the renter declines to
20purchase the damage waiver, optional insurance, or another
21optional good or service.

22(l) (1) In the absence of express permission granted by the
23renter subsequent to damage to, or loss of, the vehicle, a rental
24company shall not seek to recover any portion of a claim arising
25out of damage to, or loss of, the rented vehicle by processing a
26credit card charge or causing a debit or block to be placed on the
27renter’s credit card account.

28(2) A rental company shall not engage in any unfair, deceptive,
29or coercive tactics in attempting to recover or in recovering on any
30claim arising out of damage to, or loss of, the rented vehicle.

31(m) (1) A customer facility charge may be collected by a rental
32company under the following circumstances:

33(A) Collection of the fee by the rental company is required by
34an airport operated by a city, a county, a city and county, a joint
35powers authority, a special district, or the San Diego County
36Regional Airport Authority formed pursuant to Division 17
37(commencing with Section 170000) of the Public Utilities Code.

38(B) The fee is calculated on a per contract basis or as provided
39in paragraph (2).

P32   1(C) The fee is a user fee, not a tax imposed upon real property
2or an incidence of property ownership under Article XIII D of the
3California Constitution.

4(D) Except as otherwise provided in subparagraph (E), the fee
5shall be ten dollars ($10) per contract or the amount provided in
6paragraph (2).

7(E) The fee for a consolidated rental car facility shall be
8collected only from customers of on-airport rental car companies.
9If the fee imposed by the airport is for both a consolidated rental
10car facility and a common-use transportation system, the fee
11collected from customers of on-airport rental car companies shall
12be ten dollars ($10) or the amount provided in paragraph (2), but
13the fee imposed on customers of off-airport rental car companies
14who are transported on the common-use transportation system is
15proportionate to the costs of the common-use transportation system
16only. The fee is uniformly applied to each class of on-airport or
17off-airport customers, provided that the airport requires off-airport
18customers to use the common-use transportation system. For
19purposes of this subparagraph, “on-airport rental car company”
20means a rental company operating under an airport property lease
21or an airport concession or license agreement whose customers
22use or will use the consolidated rental car facility and the collection
23of the fee as to those customers is consistent with subparagraph
24(C).

25(F) Revenues collected from the fee do not exceed the reasonable
26costs of financing, designing, and constructing the facility and
27 financing, designing, constructing, and operating any common-use
28transportation system, or acquiring vehicles for use in that system,
29and shall not be used for any other purpose.

30(G) The fee is separately identified on the rental agreement.

31(H) This paragraph does not apply to fees which are governed
32by Section 50474.1 of the Government Code or Section 57.5 of
33the San Diego Unified Port District Act.

34(I) For any airport seeking to require rental car companies to
35collect an alternative customer facility charge pursuant to paragraph
36(2), the following provisions apply:

37(i) Notwithstanding Section 10231.5 of the Government Code,
38the airport shall provide reports on an annual basis to the Senate
39and Assembly Committees on Judiciary detailing all of the
40 following:

P33   1(I) The total amount of the customer facility charge collected.

2(II) How the funds are being spent.

3(III) The amount of and reason for any changes in the airport’s
4budget or financial needs for the facility or common-use
5transportation system.

6(IV) Whether airport concession fees authorized by Section
71936.01 have increased since the prior report, if any.

8(ii) begin insert(I)end insertbegin insertend insert The airport shall complete thebegin delete independentend delete audit
9required by subparagraph (B) of paragraph (4) of subdivision (a)
10prior to initial collection of the customer facilitybegin delete charge,end deletebegin insert charge
11and end insert
prior to any increase pursuant to paragraphbegin delete (2), and every
12three years after initial collection and any increaseend delete
begin insert (2). end insertbegin insertAn audit
13shall be completed every three years after initial collection only
14if the customer facility charge is used for the purpose of operating
15a common-use transportation system or to acquire vehicles for
16use in such a system pursuant to clause (ii) of subparagraph (A)
17of paragraph (4) of subdivision (a). An audit conducted pursuant
18to this clause may be included in an annual audit of an airport’s
19finances. This obligation shall continueend insert
until such time as the fee
20authorization becomes inoperative pursuant to subparagraph (C)
21of paragraph (4) of subdivision (a).

begin insert

22(II) This section shall not be construed to require an airport to
23audit a common-use transportation system not financed by a
24customer facility charge and used for the purposes permitted
25pursuant to clause (ii) of subparagraph (A) of paragraph (4) of
26subdivision (a).

end insert

27(iii) Use of the bonds shall be limited to construction and design
28of the consolidated rental car facility, terminal modifications, and
29operating costs of the common-use transportation system, as
30 specified in paragraph (4) of subdivision (a).

31(2) Any airport may require rental car companies to collect an
32alternative customer facility charge under the following conditions:

33(A) The airport first conducts a publicly noticed hearing pursuant
34to the Ralph M. Brown Act (Chapter 9 (commencing with Section
3554950) of Part 1 of Division 2 of Title 5 of the Government Code)
36to review the costs of financing the design and construction of a
37consolidated rental car facility and the design, construction, and
38operation of any common-use transportation system in which all
39of the following occur:

P34   1(i) The airport establishes the amount of revenue necessary to
2finance the reasonable cost to design and construct a consolidated
3rental car facility and to design, construct, and operate any
4common-use transportation system, or acquire vehicles for use in
5that system, based on evidence presented during the hearing.

6(ii) The airport finds, based on evidence presented during the
7hearing, that the fee authorized in paragraph (1) will not generate
8sufficient revenue to finance the reasonable costs to design and
9construct a consolidated rental car facility and to design, construct,
10and operate any common-use transportation system, or acquire
11vehicles for use in that system.

12(iii) The airport finds that the reasonable cost of the project
13requires the additional amount of revenue that would be generated
14by the proposed daily rate, including any rate increase, authorized
15pursuant to this paragraph.

16(iv) The airport outlines each of the following:

17(I) Steps it has taken to limit costs.

18(II) Other potential alternatives for meeting its revenue needs
19other than the collection of the fee.

20(III) The extent to which rental car companies or other
21businesses or individuals using the facility or common-use
22transportation system will pay for the costs associated with these
23facilities and systems other than the fee from rental customers.

24(B) The airport may not require the fee authorized in this
25paragraph to be collected at any time that the fee authorized in
26paragraph (1) of this subdivision is being collected.

27(C) Pursuant to the procedure set forth in this subdivision, the
28fee may be collected at a rate charged on a per-day basis subject
29to the following conditions:

30(i) Commencing January 1, 2011, the amount of the fee may
31not exceed six dollars ($6) per day.

32(ii) Commencing January 1, 2014, the amount of the fee may
33not exceed seven dollars and fifty cents ($7.50) per day.

34(iii) Commencing January 1, 2017, and thereafter, the amount
35of the fee may not exceed nine dollars ($9) per day.

36(iv) At no time shall the fee authorized in this paragraph be
37collected from any customer for more than five days for each
38individual rental car contract.

39(v) An airport subject to this paragraph shall initiate the process
40for obtaining the authority to require or increase the alternative
P35   1fee no later than January 1, 2018. Any airport that obtains the
2authority to require or increase an alternative fee shall be authorized
3to continue collecting that fee until the fee authorization becomes
4inoperative pursuant to subparagraph (C) of paragraph (4) of
5subdivision (a).

6(3) Notwithstanding any other provision of law, including, but
7not limited to, Part 1 (commencing with Section 6001) to Part 1.7
8(commencing with Section 7280), inclusive, of Division 2 of the
9Revenue and Taxation Code, the fees collected pursuant to this
10section, or another law whereby a local agency operating an airport
11requires a rental car company to collect a facility financing fee
12from its customers, are not subject to sales, use, or transaction
13taxes.

14(n) (1) A rental company shall only advertise, quote, and charge
15a rental rate that includes the entire amount except taxes, a
16customer facility charge, if any, and a mileage charge, if any, that
17a renter must pay to hire or lease the vehicle for the period of time
18to which the rental rate applies. A rental company shall not charge
19in addition to the rental rate, taxes, a customer facility charge, if
20any, and a mileage charge, if any, any fee that is required to be
21paid by the renter as a condition of hiring or leasing the vehicle,
22including, but not limited to, required fuel or airport surcharges
23other than customer facility charges, nor a fee for transporting the
24renter to the location where the rented vehicle will be delivered to
25the renter.

26(2) In addition to the rental rate, taxes, customer facility charges,
27if any, and mileage charges, if any, a rental company may charge
28for an item or service provided in connection with a particular
29rental transaction if the renter could have avoided incurring the
30charge by choosing not to obtain or utilize the optional item or
31service. Items and services for which the rental company may
32impose an additional charge include, but are not limited to, optional
33insurance and accessories requested by the renter, service charges
34incident to the renter’s optional return of the vehicle to a location
35other than the location where the vehicle was hired or leased, and
36charges for refueling the vehicle at the conclusion of the rental
37transaction in the event the renter did not return the vehicle with
38as much fuel as was in the fuel tank at the beginning of the rental.
39A rental company also may impose an additional charge based on
40reasonable age criteria established by the rental company.

P36   1(3) A rental company shall not charge a fee for authorized
2drivers in addition to the rental charge for an individual renter.

3(4) If a rental company states a rental rate in print advertisement
4or in a telephonic, in-person, or computer-transmitted quotation,
5the rental company shall disclose clearly in that advertisement or
6quotation the terms of mileage conditions relating to the advertised
7or quoted rental rate, including, but not limited to, to the extent
8applicable, the amount of mileage and gas charges, the number of
9miles for which no charges will be imposed, and a description of
10geographic driving limitations within the United States and Canada.

11(5) (A) When a rental rate is stated in an advertisement,
12quotation, or reservation in connection with a car rental at an airport
13where a customer facility charge is imposed, the rental company
14shall disclose clearly the existence and amount of the customer
15facility charge. For purposes of this subparagraph, advertisements
16include radio, television, other electronic media, and print
17advertisements. For purposes of this subparagraph, quotations and
18reservations include those that are telephonic, in-person, and
19computer-transmitted. If the rate advertisement is intended to
20include transactions at more than one airport imposing a customer
21facility charge, a range of fees may be stated in the advertisement.
22However, all rate advertisements that include car rentals at airport
23destinations shall clearly and conspicuously include a toll-free
24telephone number whereby a customer can be told the specific
25amount of the customer facility charge to which the customer will
26be obligated.

27(B) If a person or entity other than a rental car company,
28including a passenger carrier or a seller of travel services, advertises
29or quotes a rate for a car rental at an airport where a customer
30facility charge is imposed, that person or entity shall, provided
31that he, she, or it is provided with information about the existence
32and amount of the fee, to the extent not specifically prohibited by
33federal law, clearly disclose the existence and amount of the fee
34in any telephonic, in-person, or computer-transmitted quotation at
35the time of making an initial quotation of a rental rate and at the
36time of making a reservation of a rental car. If a rental car company
37provides the person or entity with rate and customer facility charge
38information, the rental car company is not responsible for the
39failure of that person or entity to comply with this subparagraph
40when quoting or confirming a rate to a third person or entity.

P37   1(6) If a rental company delivers a vehicle to a renter at a location
2other than the location where the rental company normally carries
3on its business, the rental company shall not charge the renter an
4amount for the rental for the period before the delivery of the
5vehicle. If a rental company picks up a rented vehicle from a renter
6at a location other than the location where the rental company
7normally carries on its business, the rental company shall not
8charge the renter an amount for the rental for the period after the
9renter notifies the rental company to pick up the vehicle.

10(o) A rental company shall not use, access, or obtain any
11information relating to the renter’s use of the rental vehicle that
12was obtained using electronic surveillance technology, except in
13the following circumstances:

14(1) (A) When the equipment is used by the rental company
15only for the purpose of locating a stolen, abandoned, or missing
16rental vehicle after one of the following:

17(i) The renter or law enforcement has informed the rental
18company that the vehicle is missing or has been stolen or
19abandoned.

20(ii) The rental vehicle has not been returned following one week
21after the contracted return date, or by one week following the end
22of an extension of that return date.

23(iii) The rental company discovers the rental vehicle has been
24stolen or abandoned, and, if stolen, it shall report the vehicle stolen
25to law enforcement by filing a stolen vehicle report, unless law
26enforcement has already informed the rental company that the
27vehicle is missing or has been stolen or abandoned.

28(B) If electronic surveillance technology is activated pursuant
29to subparagraph (A), a rental company shall maintain a record, in
30either electronic or written form, of information relevant to the
31activation of that technology. That information shall include the
32rental agreement, including the return date, and the date and time
33the electronic surveillance technology was activated. The record
34shall also include, if relevant, a record of written or other
35communication with the renter, including communications
36regarding extensions of the rental, police reports, or other written
37communication with law enforcement officials. The record shall
38be maintained for a period of at least 12 months from the time the
39record is created and shall be made available upon the renter’s
40request. The rental company shall maintain and furnish explanatory
P38   1codes necessary to read the record. A rental company shall not be
2required to maintain a record if electronic surveillance technology
3is activated to recover a rental vehicle that is stolen or missing at
4a time other than during a rental period.

5(2) In response to a specific request from law enforcement
6pursuant to a subpoena or search warrant.

7(3) This subdivision does not prohibit a rental company from
8equipping rental vehicles with GPS-based technology that provides
9navigation assistance to the occupants of the rental vehicle, if the
10rental company does not use, access, or obtain information relating
11to the renter’s use of the rental vehicle that was obtained using
12that technology, except for the purposes of discovering or repairing
13a defect in the technology and the information may then be used
14only for that purpose.

15(4) This subdivision does not prohibit a rental company from
16equipping rental vehicles with electronic surveillance technology
17that allows for the remote locking or unlocking of the vehicle at
18the request of the renter, if the rental company does not use, access,
19or obtain information relating to the renter’s use of the rental
20vehicle that was obtained using that technology, except as
21necessary to lock or unlock the vehicle.

22(5) This subdivision does not prohibit a rental company from
23equipping rental vehicles with electronic surveillance technology
24that allows the company to provide roadside assistance, such as
25towing, flat tire, or fuel services, at the request of the renter, if the
26rental company does not use, access, or obtain information relating
27to the renter’s use of the rental vehicle that was obtained using
28that technology except as necessary to provide the requested
29roadside assistance.

30(6) This subdivision does not prohibit a rental company from
31obtaining, accessing, or using information from electronic
32surveillance technology for the sole purpose of determining the
33date and time the vehicle is returned to the rental company, and
34the total mileage driven and the vehicle fuel level of the returned
35vehicle. This paragraph, however, shall apply only after the renter
36has returned the vehicle to the rental company, and the information
37shall only be used for the purpose described in this paragraph.

38(p) A rental company shall not use electronic surveillance
39technology to track a renter in order to impose fines or surcharges
40relating to the renter’s use of the rental vehicle.

P39   1(q) A renter may bring an action against a rental company for
2the recovery of damages and appropriate equitable relief for a
3violation of this section. The prevailing party shall be entitled to
4recover reasonable attorney’s fees and costs.

5(r) A rental company that brings an action against a renter for
6loss due to theft of the vehicle shall bring the action in the county
7in which the renter resides or, if the renter is not a resident of this
8state, in the jurisdiction in which the renter resides.

9(s) A waiver of any of the provisions of this section shall be
10void and unenforceable as contrary to public policy.

11(t) (1) A rental company’s disclosure requirements shall be
12satisfied for renters who are enrolled in the rental company’s
13 membership program if all of the following conditions are met:

14(A) Prior to the enrollee’s first rental as a participant in the
15program, the renter receives, in writing, the following:

16(i) All of the disclosures required by paragraph (1) of subdivision
17(g), including the terms and conditions of the rental agreement
18then in effect.

19(ii) An Internet Web site address, as well as a contact number
20or address, where the enrollee can learn of changes to the rental
21agreement or to the laws of this state governing rental agreements
22since the effective date of the rental company’s most recent
23restatement of the rental agreement and distribution of that
24restatement to its members.

25(B) At the commencement of each rental period, the renter is
26provided, on the rental record or the folder in which it is inserted,
27with a printed notice stating that he or she had either previously
28selected or declined an optional damage waiver and that the renter
29has the right to change preferences.

30(C) At the commencement of each rental period, the rental
31company provides, on the rearview mirror, a hanger on which a
32statement is printed, in a box, in at least 12-point boldface type,
33notifying the renter that the collision damage waiver offered by
34the rental company may be duplicative of coverage that the
35customer maintains under his or her own policy of motor vehicle
36insurance. If it is not feasible to hang the statement from the
37rearview mirror, it shall be hung from the steering wheel.

38The hanger shall provide the renter a box to initial if he or she
39(not his or her employer) has previously accepted or declined the
40collision damage waiver and that he or she now wishes to change
P40   1his or her decision to accept or decline the collision damage waiver,
2as follows:


3“◻ If I previously accepted the collision damage waiver, I
4now decline it.

  
5◻ If I previously declined the collision damage waiver, I now
6accept it.”

7The hanger shall also provide a box for the enrollee to indicate
8whether this change applies to this rental transaction only or to all
9future rental transactions. The hanger shall also notify the renter
10that he or she may make that change, prior to leaving the lot, by
11returning the form to an employee designated to receive the form
12who is present at the lot where the renter takes possession of the
13car, to receive any change in the rental agreement from the renter.

14(2) (A) This subdivision is not effective unless the employee
15designated pursuant to subparagraph (E) of paragraph (8) of
16subdivision (a) is actually present at the required location.

17(B) This subdivision does not relieve the rental company from
18the disclosures required to be made within the text of a contract
19or holder in which the contract is placed; in or on an advertisement
20containing a rental rate; or in a telephonic, in-person, or
21computer-transmitted quotation or reservation.

22(u) The amendments made to this section during the 2001-02
23Regular Session of the Legislature do not affect litigation pending
24on or before January 1, 2003, alleging a violation of Section 22325
25of the Business and Professions Code as it read at the time the
26action was commenced.

27(v) This section shall become operative on January 1, 2015.

begin delete
28

SECTION 1.  

Section 1936 of the Civil Code, as amended by
29Section 2 of Chapter 32 of the Statutes of 2012, is amended to
30read:

31

1936.  

(a) For the purpose of this section, the following
32definitions shall apply:

33(1) “Rental company” means a person or entity in the business
34of renting passenger vehicles to the public.

35(2) “Renter” means any person in a manner obligated under a
36contract for the lease or hire of a passenger vehicle from a rental
37company for a period of less than 30 days.

38(3) “Authorized driver” means (A) the renter, (B) the renter’s
39spouse if that person is a licensed driver and satisfies the rental
40company’s minimum age requirement, (C) the renter’s employer
P41   1or coworker if he or she is engaged in business activity with the
2renter, is a licensed driver, and satisfies the rental company’s
3minimum age requirement, and (D) a person expressly listed by
4the rental company on the renter’s contract as an authorized driver.

5(4) (A) “Customer facility charge” means any fee, including
6an alternative fee, required by an airport to be collected by a rental
7company from a renter for any of the following purposes:

8(i) To finance, design, and construct consolidated airport car
9rental facilities.

10(ii) To finance, design, construct, and operate common-use
11transportation systems that move passengers between airport
12terminals and those consolidated car rental facilities, and acquire
13vehicles for use in that system.

14(iii) To finance, design, and construct terminal modifications
15solely to accommodate and provide customer access to
16common-use transportation systems.

17(B) The aggregate amount to be collected shall not exceed the
18reasonable costs to finance, design, and construct those facilities.
19Copies of the customer facility charge information shall be
20provided to the Assembly and Senate Committees on Judiciary,
21the Assembly Committee on Transportation, and the Senate
22Committee on Transportation and Housing. Notwithstanding clause
23(iii) of subparagraph (A), the fees designated as a customer facility
24charge shall not be used to pay for terminal expansion, gate
25expansion, runway expansion, changes in hours of operation, or
26changes in the number of flights arriving or departing from the
27airport.

28(C) Except as provided in subparagraph (D), the authorization
29given pursuant to this section for an airport to impose a customer
30facility charge shall become inoperative when the bonds used for
31financing are paid.

32(D) If a bond or other form of indebtedness is not used for
33financing, or the bond or other form of indebtedness used for
34financing has been paid, the Oakland International Airport may
35require the collection of a customer facility charge for a period of
36up to 10 years from the imposition of the charge for the purposes
37allowed by, and subject to the conditions imposed by, this section.

38(5) “Damage waiver” means a rental company’s agreement not
39to hold a renter liable for all or any portion of any damage or loss
P42   1related to the rented vehicle, any loss of use of the rented vehicle,
2or any storage, impound, towing, or administrative charges.

3(6) “Electronic surveillance technology” means a technological
4method or system used to observe, monitor, or collect information,
5including telematics, Global Positioning System (GPS), wireless
6technology, or location-based technologies. “Electronic
7surveillance technology” does not include event data recorders
8(EDR), sensing and diagnostic modules (SDM), or other systems
9that are used either:

10(A) For the purpose of identifying, diagnosing, or monitoring
11functions related to the potential need to repair, service, or perform
12maintenance on the rental vehicle.

13(B) As part of the vehicle’s airbag sensing and diagnostic system
14in order to capture safety systems-related data for retrieval after a
15crash has occurred or in the event that the collision sensors are
16activated to prepare the decisionmaking computer to make the
17determination to deploy or not to deploy the airbag.

18(7) “Estimated time for replacement” means the number of hours
19of labor, or fraction thereof, needed to replace damaged vehicle
20parts as set forth in collision damage estimating guides generally
21used in the vehicle repair business and commonly known as “crash
22books.”

23(8) “Estimated time for repair” means a good faith estimate of
24the reasonable number of hours of labor, or fraction thereof, needed
25to repair damaged vehicle parts.

26(9) “Membership program” means a service offered by a rental
27company that permits customers to bypass the rental counter and
28go directly to the car previously reserved. A membership program
29shall meet all of the following requirements:

30(A) The renter initiates enrollment by completing an application
31on which the renter can specify a preference for type of vehicle
32and acceptance or declination of optional services.

33(B) The rental company fully discloses, prior to the enrollee’s
34first rental as a participant in the program, all terms and conditions
35of the rental agreement as well as all required disclosures.

36(C) The renter may terminate enrollment at any time.

37(D) The rental company fully explains to the renter that
38designated preferences, as well as acceptance or declination of
39optional services, may be changed by the renter at any time for
40the next and future rentals.

P43   1(E) An employee designated to receive the form specified in
2subparagraph (C) of paragraph (1) of subdivision (t) is present at
3the lot where the renter takes possession of the car, to receive any
4change in the rental agreement from the renter.

5(10) “Passenger vehicle” means a passenger vehicle as defined
6in Section 465 of the Vehicle Code.

7(b) Except as limited by subdivision (c), a rental company and
8a renter may agree that the renter will be responsible for no more
9than all of the following:

10(1) Physical or mechanical damage to the rented vehicle up to
11its fair market value, as determined in the customary market for
12the sale of that vehicle, resulting from collision regardless of the
13cause of the damage.

14(2) Loss due to theft of the rented vehicle up to its fair market
15value, as determined in the customary market for the sale of that
16vehicle, provided that the rental company establishes by clear and
17convincing evidence that the renter or the authorized driver failed
18to exercise ordinary care while in possession of the vehicle. In
19addition, the renter shall be presumed to have no liability for any
20loss due to theft if (A) an authorized driver has possession of the
21ignition key furnished by the rental company or an authorized
22driver establishes that the ignition key furnished by the rental
23company was not in the vehicle at the time of the theft, and (B) an
24authorized driver files an official report of the theft with the police
25or other law enforcement agency within 24 hours of learning of
26the theft and reasonably cooperates with the rental company and
27the police or other law enforcement agency in providing
28information concerning the theft. The presumption set forth in this
29paragraph is a presumption affecting the burden of proof which
30the rental company may rebut by establishing that an authorized
31driver committed, or aided and abetted the commission of, the
32theft.

33(3) Physical damage to the rented vehicle up to its fair market
34value, as determined in the customary market for the sale of that
35vehicle, resulting from vandalism occurring after, or in connection
36with, the theft of the rented vehicle. However, the renter shall have
37no liability for any damage due to vandalism if the renter would
38have no liability for theft pursuant to paragraph (2).

P44   1(4) Physical damage to the rented vehicle up to a total of five
2hundred dollars ($500) resulting from vandalism unrelated to the
3theft of the rented vehicle.

4(5) Actual charges for towing, storage, and impound fees paid
5by the rental company if the renter is liable for damage or loss.

6(6) An administrative charge, which shall include the cost of
7 appraisal and all other costs and expenses incident to the damage,
8loss, repair, or replacement of the rented vehicle.

9(c) The total amount of the renter’s liability to the rental
10company resulting from damage to the rented vehicle shall not
11exceed the sum of the following:

12(1) The estimated cost of parts which the rental company would
13have to pay to replace damaged vehicle parts. All discounts and
14price reductions or adjustments that are or will be received by the
15rental company shall be subtracted from the estimate to the extent
16not already incorporated in the estimate, or otherwise promptly
17credited or refunded to the renter.

18(2) The estimated cost of labor to replace damaged vehicle parts,
19which shall not exceed the product of (A) the rate for labor usually
20paid by the rental company to replace vehicle parts of the type that
21were damaged and (B) the estimated time for replacement. All
22discounts and price reductions or adjustments that are or will be
23received by the rental company shall be subtracted from the
24estimate to the extent not already incorporated in the estimate, or
25otherwise promptly credited or refunded to the renter.

26(3) (A) The estimated cost of labor to repair damaged vehicle
27parts, which shall not exceed the lesser of the following:

28(i) The product of the rate for labor usually paid by the rental
29company to repair vehicle parts of the type that were damaged and
30the estimated time for repair.

31(ii) The sum of the estimated labor and parts costs determined
32under paragraphs (1) and (2) to replace the same vehicle parts.

33(B) All discounts and price reductions or adjustments that are
34or will be received by the rental company shall be subtracted from
35the estimate to the extent not already incorporated in the estimate,
36or otherwise promptly credited or refunded to the renter.

37(4) For the purpose of converting the estimated time for repair
38into the same units of time in which the rental rate is expressed, a
39day shall be deemed to consist of eight hours.

P45   1(5) Actual charges for towing, storage, and impound fees paid
2by the rental company.

3(6) The administrative charge described in paragraph (6) of
4subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
5estimated cost for parts and labor is more than one hundred dollars
6($100) up to and including five hundred dollars ($500), (B) one
7hundred dollars ($100) if the total estimated cost for parts and
8labor exceeds five hundred dollars ($500) up to and including one
9thousand five hundred dollars ($1,500), and (C) one hundred fifty
10dollars ($150) if the total estimated cost for parts and labor exceeds
11one thousand five hundred dollars ($1,500). An administrative
12charge shall not be imposed if the total estimated cost of parts and
13labor is one hundred dollars ($100) or less.

14(d) (1) The total amount of an authorized driver’s liability to
15the rental company, if any, for damage occurring during the
16authorized driver’s operation of the rented vehicle shall not exceed
17the amount of the renter’s liability under subdivision (c).

18(2) A rental company shall not recover from the renter or other
19authorized driver an amount exceeding the renter’s liability under
20subdivision (c).

21(3) A claim against a renter resulting from damage or loss,
22excluding loss of use, to a rental vehicle shall be reasonably and
23rationally related to the actual loss incurred. A rental company
24shall mitigate damages where possible and shall not assert or collect
25a claim for physical damage which exceeds the actual costs of the
26repairs performed or the estimated cost of repairs, if the rental
27company chooses not to repair the vehicle, including all discounts
28and price reductions. However, if the vehicle is a total loss vehicle,
29the claim shall not exceed the total loss vehicle value established
30in accordance with procedures that are customarily used by
31insurance companies when paying claims on total loss vehicles,
32less the proceeds from salvaging the vehicle, if those proceeds are
33retained by the rental company.

34(4) If insurance coverage exists under the renter’s applicable
35personal or business insurance policy and the coverage is confirmed
36during regular business hours, the renter may require that the rental
37company submit any claims to the renter’s applicable personal or
38business insurance carrier. The rental company shall not make any
39written or oral representations that it will not present claims or
40negotiate with the renter’s insurance carrier. For purposes of this
P46   1paragraph, confirmation of coverage includes telephone
2confirmation from insurance company representatives during
3regular business hours. Upon request of the renter and after
4confirmation of coverage, the amount of claim shall be resolved
5between the insurance carrier and the rental company. The renter
6shall remain responsible for payment to the rental car company
7for any loss sustained that the renter’s applicable personal or
8business insurance policy does not cover.

9(5) A rental company shall not recover from the renter or other
10authorized driver for an item described in subdivision (b) to the
11extent the rental company obtains recovery from another person.

12(6) This section applies only to the maximum liability of a renter
13or other authorized driver to the rental company resulting from
14damage to the rented vehicle and not to the liability of another
15person.

16(e) (1) Except as provided in subdivision (f), a damage waiver
17shall provide or, if not expressly stated in writing, shall be deemed
18to provide that the renter has no liability for a damage, loss, loss
19of use, or a cost or expense incident thereto.

20(2) Except as provided in subdivision (f), every limitation,
21exception, or exclusion to a damage waiver is void and
22unenforceable.

23(f) A rental company may provide in the rental contract that a
24damage waiver does not apply under any of the following
25 circumstances:

26(1) Damage or loss results from an authorized driver’s (A)
27intentional, willful, wanton, or reckless conduct, (B) operation of
28the vehicle under the influence of drugs or alcohol in violation of
29Section 23152 of the Vehicle Code, (C) towing or pushing
30anything, or (D) operation of the vehicle on an unpaved road if
31the damage or loss is a direct result of the road or driving
32conditions.

33(2) Damage or loss occurs while the vehicle is (A) used for
34commercial hire, (B) used in connection with conduct that could
35be properly charged as a felony, (C) involved in a speed test or
36contest or in driver training activity, (D) operated by a person other
37than an authorized driver, or (E) operated outside the United States.

38(3) An authorized driver who has (A) provided fraudulent
39information to the rental company, or (B) provided false
P47   1information and the rental company would not have rented the
2vehicle if it had instead received true information.

3(g) (1) A rental company that offers or provides a damage
4waiver for any consideration in addition to the rental rate shall
5clearly and conspicuously disclose the following information in
6the rental contract or holder in which the contract is placed and,
7also, in signs posted at the place, such as the counter, where the
8renter signs the rental contract, and, for renters who are enrolled
9in the rental company’s membership program, in a sign that shall
10be posted in a location clearly visible to those renters as they enter
11the location where their reserved rental cars are parked or near the
12exit of the bus or other conveyance that transports the enrollee to
13a reserved car: (A) the nature of the renter’s liability, such as
14liability for all collision damage regardless of cause, (B) the extent
15of the renter’s liability, such as liability for damage or loss up to
16a specified amount, (C) the renter’s personal insurance policy or
17the credit card used to pay for the car rental transaction may
18provide coverage for all or a portion of the renter’s potential
19liability, (D) the renter should consult with his or her insurer to
20determine the scope of insurance coverage, including the amount
21of the deductible, if any, for which the renter is obligated, (E) the
22renter may purchase an optional damage waiver to cover all
23liability, subject to whatever exceptions the rental company
24expressly lists that are permitted under subdivision (f), and (F) the
25range of charges for the damage waiver.

26(2) In addition to the requirements of paragraph (1), a rental
27company that offers or provides a damage waiver shall orally
28disclose to all renters, except those who are participants in the
29rental company’s membership program, that the damage waiver
30may be duplicative of coverage that the customer maintains under
31his or her own policy of motor vehicle insurance. The renter’s
32receipt of the oral disclosure shall be demonstrated through the
33renter’s acknowledging receipt of the oral disclosure near that part
34of the contract where the renter indicates, by the renter’s own
35initials, his or her acceptance or declination of the damage waiver.
36Adjacent to that same part, the contract also shall state that the
37damage waiver is optional. Further, the contract for these renters
38shall include a clear and conspicuous written disclosure that the
39damage waiver may be duplicative of coverage that the customer
40maintains under his or her own policy of motor vehicle insurance.

P48   1(3) The following is an example, for purposes of illustration
2and not limitation, of a notice fulfilling the requirements of
3paragraph (1) for a rental company that imposes liability on the
4renter for collision damage to the full value of the vehicle:
5

6“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
7AND OPTIONAL DAMAGE WAIVER
8

9You are responsible for all collision damage to the rented vehicle
10even if someone else caused it or the cause is unknown. You are
11responsible for the cost of repair up to the value of the vehicle,
12and towing, storage, and impound fees.

13Your own insurance, or the issuer of the credit card you use to
14pay for the car rental transaction, may cover all or part of your
15financial responsibility for the rented vehicle. You should check
16with your insurance company, or credit card issuer, to find out
17about your coverage and the amount of the deductible, if any, for
18which you may be liable.

19Further, if you use a credit card that provides coverage for your
20potential liability, you should check with the issuer to determine
21if you must first exhaust the coverage limits of your own insurance
22before the credit card coverage applies.

23The rental company will not hold you responsible if you buy a
24damage waiver. But a damage waiver will not protect you if (list
25exceptions).”
26


27(A) When the above notice is printed in the rental contract or
28holder in which the contract is placed, the following shall be printed
29immediately following the notice:


31“The cost of an optional damage waiver is $____ for every (day
32or week).”
33


34(B) When the above notice appears on a sign, the following
35shall appear immediately adjacent to the notice:


37“The cost of an optional damage waiver is $____ to $____ for
38every (day or week), depending upon the vehicle rented.”
39


P49   1(h) Notwithstanding any other provision of law, a rental
2company may sell a damage waiver subject to the following rate
3limitations for each full or partial 24-hour rental day for the damage
4waiver.

5(1) For rental vehicles that the rental company designates as an
6“economy car,” “subcompact car,” “compact car,” or another term
7having similar meaning when offered for rental, or another vehicle
8having a manufacturer’s suggested retail price of nineteen thousand
9dollars ($19,000) or less, the rate shall not exceed nine dollars
10($9).

11(2) For rental vehicles that have a manufacturer’s suggested
12retail price from nineteen thousand one dollars ($19,001) to
13thirty-four thousand nine hundred ninety-nine dollars ($34,999),
14inclusive, and that are also either vehicles of next year’s model,
15or not older than the previous year’s model, the rate shall not
16exceed fifteen dollars ($15). For those rental vehicles older than
17the previous year’s model-year, the rate shall not exceed nine
18dollars ($9).

19(i) The manufacturer’s suggested retail prices described in
20subdivision (h) shall be adjusted annually to reflect changes from
21the previous year in the Consumer Price Index. For the purposes
22of this section, “Consumer Price Index” means the United States
23Consumer Price Index for All Urban Consumers, for all items.

24(j) A rental company that disseminates in this state an
25advertisement containing a rental rate shall include in that
26advertisement a clearly readable statement of the charge for a
27damage waiver and a statement that a damage waiver is optional.

28(k) (1) A rental company shall not require the purchase of a
29damage waiver, optional insurance, or another optional good or
30service.

31(2) A rental company shall not engage in any unfair, deceptive,
32or coercive conduct to induce a renter to purchase the damage
33waiver, optional insurance, or another optional good or service,
34including conduct such as, but not limited to, refusing to honor
35the renter’s reservation, limiting the availability of vehicles,
36requiring a deposit, or debiting or blocking the renter’s credit card
37account for a sum equivalent to a deposit if the renter declines to
38purchase the damage waiver, optional insurance, or another
39optional good or service.

P50   1(l) (1) In the absence of express permission granted by the
2renter subsequent to damage to, or loss of, the vehicle, a rental
3 company shall not seek to recover any portion of a claim arising
4out of damage to, or loss of, the rented vehicle by processing a
5credit card charge or causing a debit or block to be placed on the
6renter’s credit card account.

7(2) A rental company shall not engage in any unfair, deceptive,
8or coercive tactics in attempting to recover or in recovering on any
9claim arising out of damage to, or loss of, the rented vehicle.

10(m) (1) A customer facility charge may be collected by a rental
11company under the following circumstances:

12(A) Collection of the fee by the rental company is required by
13an airport operated by a city, a county, a city and county, a joint
14powers authority, a special district, or the San Diego County
15Regional Airport Authority formed pursuant to Division 17
16 (commencing with Section 170000) of the Public Utilities Code.

17(B) The fee is calculated on a per contract basis or as provided
18in paragraph (2).

19(C) The fee is a user fee, not a tax imposed upon real property
20or an incidence of property ownership under Article XIII D of the
21California Constitution.

22(D) Except as otherwise provided in subparagraph (E), the fee
23shall be ten dollars ($10) per contract or the amount provided in
24paragraph (2).

25(E) The fee for a consolidated rental car facility shall be
26collected only from customers of on-airport rental car companies.
27If the fee imposed by the airport is for both a consolidated rental
28car facility and a common-use transportation system, the fee
29collected from customers of on-airport rental car companies shall
30be ten dollars ($10) or the amount provided in paragraph (2), but
31the fee imposed on customers of off-airport rental car companies
32who are transported on the common-use transportation system is
33proportionate to the costs of the common-use transportation system
34only. The fee is uniformly applied to each class of on-airport or
35off-airport customers, provided that the airport requires off-airport
36customers to use the common-use transportation system. For
37purposes of this subparagraph, “on-airport rental car company”
38means a rental company operating under an airport property lease
39or an airport concession or license agreement whose customers
40use or will use the consolidated rental car facility and the collection
P51   1of the fee as to those customers is consistent with subparagraph
2(C).

3(F) Revenues collected from the fee do not exceed the reasonable
4costs of financing, designing, and constructing the facility and
5financing, designing, constructing, and operating any common-use
6transportation system, or acquiring vehicles for use in that system,
7and shall not be used for any other purpose.

8(G) The fee is separately identified on the rental agreement.

9(H) This paragraph does not apply to fees which are governed
10by Section 50474.1 of the Government Code or Section 57.5 of
11the San Diego Unified Port District Act.

12(I) For any airport seeking to require rental car companies to
13collect an alternative customer facility charge pursuant to paragraph
14(2), the following provisions apply:

15(i) Notwithstanding Section 10231.5 of the Government Code,
16the airport shall provide reports on an annual basis to the Senate
17and Assembly Committees on Judiciary detailing all of the
18following:

19(I) The total amount of the customer facility charge collected.

20(II) How the funds are being spent.

21(III) The amount of and reason for any changes in the airport’s
22budget or financial needs for the facility or common-use
23transportation system.

24(IV) Whether airport concession fees authorized by Section
251936.01 have increased since the prior report, if any.

26(ii) Use of the bonds shall be limited to construction and design
27of the consolidated rental car facility, terminal modifications, and
28operating costs of the common-use transportation system, as
29specified in paragraph (4) of subdivision (a).

30(2) Any airport may require rental car companies to collect an
31alternative customer facility charge under the following conditions:

32(A) The airport first conducts a publicly noticed hearing pursuant
33to the Ralph M. Brown Act (Chapter 9 (commencing with Section
3454950) of Part 1 of Division 2 of Title 5 of the Government Code)
35to review the costs of financing the design and construction of a
36consolidated rental car facility and the design, construction, and
37operation of any common-use transportation system in which all
38of the following occur:

39(i) The airport establishes the amount of revenue necessary to
40finance the reasonable cost to design and construct a consolidated
P52   1rental car facility and to design, construct, and operate any
2common-use transportation system, or acquire vehicles for use in
3that system, based on evidence presented during the hearing.

4(ii) The airport finds, based on evidence presented during the
5hearing, that the fee authorized in paragraph (1) will not generate
6sufficient revenue to finance the reasonable costs to design and
7construct a consolidated rental car facility and to design, construct,
8and operate any common-use transportation system, or acquire
9vehicles for use in that system.

10(iii) The airport finds that the reasonable cost of the project
11requires the additional amount of revenue that would be generated
12by the proposed daily rate, including any rate increase, authorized
13pursuant to this paragraph.

14(iv) The airport outlines each of the following:

15(I) Steps it has taken to limit costs.

16(II) Other potential alternatives for meeting its revenue needs
17other than the collection of the fee.

18(III) The extent to which rental car companies or other
19businesses or individuals using the facility or common-use
20transportation system will pay for the costs associated with these
21facilities and systems other than the fee from rental customers.

22(B) The airport may not require the fee authorized in this
23paragraph to be collected at any time that the fee authorized in
24paragraph (1) of this subdivision is being collected.

25(C) Pursuant to the procedure set forth in this subdivision, the
26fee may be collected at a rate charged on a per-day basis subject
27to the following conditions:

28(i) Commencing January 1, 2011, the amount of the fee may
29not exceed six dollars ($6) per day.

30(ii) Commencing January 1, 2014, the amount of the fee may
31not exceed seven dollars and fifty cents ($7.50) per day.

32(iii) Commencing January 1, 2017, and thereafter, the amount
33of the fee may not exceed nine dollars ($9) per day.

34(iv) At no time shall the fee authorized in this paragraph be
35collected from any customer for more than five days for each
36individual rental car contract.

37(v) An airport subject to this paragraph shall initiate the process
38for obtaining the authority to require or increase the alternative
39fee no later than January 1, 2018. Any airport that obtains the
40authority to require or increase an alternative fee shall be authorized
P53   1to continue collecting that fee until the fee authorization becomes
2inoperative pursuant to subparagraph (C) of paragraph (4) of
3subdivision (a).

4(3) Notwithstanding any other provision of law, including, but
5not limited to, Part 1 (commencing with Section 6001) to Part 1.7
6(commencing with Section 7280), inclusive, of Division 2 of the
7 Revenue and Taxation Code, the fees collected pursuant to this
8section, or another law whereby a local agency operating an airport
9requires a rental car company to collect a facility financing fee
10from its customers, are not subject to sales, use, or transaction
11taxes.

12(n) (1) A rental company shall only advertise, quote, and charge
13a rental rate that includes the entire amount except taxes, a
14customer facility charge, if any, and a mileage charge, if any, that
15a renter must pay to hire or lease the vehicle for the period of time
16to which the rental rate applies. A rental company shall not charge
17in addition to the rental rate, taxes, a customer facility charge, if
18any, and a mileage charge, if any, any fee that is required to be
19paid by the renter as a condition of hiring or leasing the vehicle,
20including, but not limited to, required fuel or airport surcharges
21other than customer facility charges, nor a fee for transporting the
22renter to the location where the rented vehicle will be delivered to
23the renter.

24(2) In addition to the rental rate, taxes, customer facility charges,
25if any, and mileage charges, if any, a rental company may charge
26for an item or service provided in connection with a particular
27rental transaction if the renter could have avoided incurring the
28charge by choosing not to obtain or utilize the optional item or
29service. Items and services for which the rental company may
30impose an additional charge include, but are not limited to, optional
31insurance and accessories requested by the renter, service charges
32incident to the renter’s optional return of the vehicle to a location
33other than the location where the vehicle was hired or leased, and
34charges for refueling the vehicle at the conclusion of the rental
35transaction in the event the renter did not return the vehicle with
36as much fuel as was in the fuel tank at the beginning of the rental.
37A rental company also may impose an additional charge based on
38reasonable age criteria established by the rental company.

39(3) A rental company shall not charge a fee for authorized
40drivers in addition to the rental charge for an individual renter.

P54   1(4) If a rental company states a rental rate in print advertisement
2or in a telephonic, in-person, or computer-transmitted quotation,
3the rental company shall disclose clearly in that advertisement or
4quotation the terms of mileage conditions relating to the advertised
5or quoted rental rate, including, but not limited to, to the extent
6applicable, the amount of mileage and gas charges, the number of
7miles for which no charges will be imposed, and a description of
8geographic driving limitations within the United States and Canada.

9(5) (A) When a rental rate is stated in an advertisement,
10quotation, or reservation in connection with a car rental at an airport
11where a customer facility charge is imposed, the rental company
12shall disclose clearly the existence and amount of the customer
13facility charge. For purposes of this subparagraph, advertisements
14include radio, television, other electronic media, and print
15advertisements. For purposes of this subparagraph, quotations and
16reservations include those that are telephonic, in-person, and
17computer-transmitted. If the rate advertisement is intended to
18include transactions at more than one airport imposing a customer
19facility charge, a range of fees may be stated in the advertisement.
20However, all rate advertisements that include car rentals at airport
21destinations shall clearly and conspicuously include a toll-free
22telephone number whereby a customer can be told the specific
23amount of the customer facility charge to which the customer will
24be obligated.

25(B) If a person or entity other than a rental car company,
26including a passenger carrier or a seller of travel services, advertises
27or quotes a rate for a car rental at an airport where a customer
28facility charge is imposed, that person or entity shall, provided
29that he, she, or it is provided with information about the existence
30and amount of the fee, to the extent not specifically prohibited by
31federal law, clearly disclose the existence and amount of the fee
32in any telephonic, in-person, or computer-transmitted quotation at
33the time of making an initial quotation of a rental rate and at the
34time of making a reservation of a rental car. If a rental car company
35provides the person or entity with rate and customer facility charge
36information, the rental car company is not responsible for the
37failure of that person or entity to comply with this subparagraph
38when quoting or confirming a rate to a third person or entity.

39(6) If a rental company delivers a vehicle to a renter at a location
40other than the location where the rental company normally carries
P55   1on its business, the rental company shall not charge the renter an
2amount for the rental for the period before the delivery of the
3vehicle. If a rental company picks up a rented vehicle from a renter
4at a location other than the location where the rental company
5normally carries on its business, the rental company shall not
6charge the renter an amount for the rental for the period after the
7renter notifies the rental company to pick up the vehicle.

8(o) A rental company shall not use, access, or obtain any
9information relating to the renter’s use of the rental vehicle that
10was obtained using electronic surveillance technology, except in
11the following circumstances:

12(1) (A) When the equipment is used by the rental company
13only for the purpose of locating a stolen, abandoned, or missing
14rental vehicle after one of the following:

15(i) The renter or law enforcement has informed the rental
16company that the vehicle is missing or has been stolen or
17abandoned.

18(ii) The rental vehicle has not been returned following one week
19after the contracted return date, or by one week following the end
20of an extension of that return date.

21(iii) The rental company discovers the rental vehicle has been
22stolen or abandoned, and, if stolen, it shall report the vehicle stolen
23to law enforcement by filing a stolen vehicle report, unless law
24enforcement has already informed the rental company that the
25vehicle is missing or has been stolen or abandoned.

26(B) If electronic surveillance technology is activated pursuant
27to subparagraph (A), a rental company shall maintain a record, in
28either electronic or written form, of information relevant to the
29activation of that technology. That information shall include the
30rental agreement, including the return date, and the date and time
31the electronic surveillance technology was activated. The record
32shall also include, if relevant, a record of written or other
33communication with the renter, including communications
34regarding extensions of the rental, police reports, or other written
35communication with law enforcement officials. The record shall
36be maintained for a period of at least 12 months from the time the
37record is created and shall be made available upon the renter’s
38request. The rental company shall maintain and furnish explanatory
39codes necessary to read the record. A rental company shall not be
40required to maintain a record if electronic surveillance technology
P56   1is activated to recover a rental vehicle that is stolen or missing at
2a time other than during a rental period.

3(2) In response to a specific request from law enforcement
4pursuant to a subpoena or search warrant.

5(3) This subdivision does not prohibit a rental company from
6equipping rental vehicles with GPS-based technology that provides
7navigation assistance to the occupants of the rental vehicle, if the
8rental company does not use, access, or obtain information relating
9to the renter’s use of the rental vehicle that was obtained using
10that technology, except for the purposes of discovering or repairing
11a defect in the technology and the information may then be used
12only for that purpose.

13(4) This subdivision does not prohibit a rental company from
14equipping rental vehicles with electronic surveillance technology
15that allows for the remote locking or unlocking of the vehicle at
16the request of the renter, if the rental company does not use, access,
17or obtain information relating to the renter’s use of the rental
18vehicle that was obtained using that technology, except as
19necessary to lock or unlock the vehicle.

20(5) This subdivision does not prohibit a rental company from
21equipping rental vehicles with electronic surveillance technology
22that allows the company to provide roadside assistance, such as
23towing, flat tire, or fuel services, at the request of the renter, if the
24rental company does not use, access, or obtain information relating
25to the renter’s use of the rental vehicle that was obtained using
26that technology except as necessary to provide the requested
27roadside assistance.

28(6) This subdivision does not prohibit a rental company from
29obtaining, accessing, or using information from electronic
30surveillance technology for the sole purpose of determining the
31date and time the vehicle is returned to the rental company, and
32the total mileage driven and the vehicle fuel level of the returned
33vehicle. This paragraph, however, shall apply only after the renter
34has returned the vehicle to the rental company, and the information
35shall only be used for the purpose described in this paragraph.

36(p) A rental company shall not use electronic surveillance
37technology to track a renter in order to impose fines or surcharges
38relating to the renter’s use of the rental vehicle.

39(q) A renter may bring an action against a rental company for
40the recovery of damages and appropriate equitable relief for a
P57   1violation of this section. The prevailing party shall be entitled to
2 recover reasonable attorney’s fees and costs.

3(r) A rental company that brings an action against a renter for
4loss due to theft of the vehicle shall bring the action in the county
5in which the renter resides or, if the renter is not a resident of this
6state, in the jurisdiction in which the renter resides.

7(s) A waiver of any of the provisions of this section shall be
8void and unenforceable as contrary to public policy.

9(t) (1) A rental company’s disclosure requirements shall be
10satisfied for renters who are enrolled in the rental company’s
11membership program if all of the following conditions are met:

12(A) Prior to the enrollee’s first rental as a participant in the
13program, the renter receives, in writing, the following:

14(i) All of the disclosures required by paragraph (1) of subdivision
15(g), including the terms and conditions of the rental agreement
16then in effect.

17(ii) An Internet Web site address, as well as a contact number
18or address, where the enrollee can learn of changes to the rental
19agreement or to the laws of this state governing rental agreements
20since the effective date of the rental company’s most recent
21restatement of the rental agreement and distribution of that
22restatement to its members.

23(B) At the commencement of each rental period, the renter is
24provided, on the rental record or the folder in which it is inserted,
25with a printed notice stating that he or she had either previously
26selected or declined an optional damage waiver and that the renter
27has the right to change preferences.

28(C) At the commencement of each rental period, the rental
29company provides, on the rearview mirror, a hanger on which a
30statement is printed, in a box, in at least 12-point boldface type,
31notifying the renter that the collision damage waiver offered by
32the rental company may be duplicative of coverage that the
33customer maintains under his or her own policy of motor vehicle
34insurance. If it is not feasible to hang the statement from the
35rearview mirror, it shall be hung from the steering wheel.

36The hanger shall provide the renter a box to initial if he or she
37(not his or her employer) has previously accepted or declined the
38collision damage waiver and that he or she now wishes to change
39his or her decision to accept or decline the collision damage waiver,
40as follows:
P58   1



2“◻ If I previously accepted the collision damage waiver, I
3now decline it.


4  
5◻ If I previously declined the collision damage waiver, I now
6accept it.”


8The hanger shall also provide a box for the enrollee to indicate
9whether this change applies to this rental transaction only or to all
10future rental transactions. The hanger shall also notify the renter
11that he or she may make that change, prior to leaving the lot, by
12returning the form to an employee designated to receive the form
13who is present at the lot where the renter takes possession of the
14car, to receive any change in the rental agreement from the renter.

15(2) (A) This subdivision is not effective unless the employee
16designated pursuant to subparagraph (E) of paragraph (8) of
17subdivision (a) is actually present at the required location.

18(B) This subdivision does not relieve the rental company from
19the disclosures required to be made within the text of a contract
20or holder in which the contract is placed; in or on an advertisement
21containing a rental rate; or in a telephonic, in-person, or
22computer-transmitted quotation or reservation.

23(u) The amendments made to this section during the 2001-02
24Regular Session of the Legislature do not affect litigation pending
25on or before January 1, 2003, alleging a violation of Section 22325
26of the Business and Professions Code as it read at the time the
27action was commenced.

28(v) (1) When a rental company enters into a rental agreement
29in the state for the rental of a vehicle to any renter who is not a
30resident of this country and, as part of, or associated with, the rental
31agreement, the renter purchases liability insurance, as defined in
32subdivision (b) of Section 1758.85 of the Insurance Code, from
33the rental company in its capacity as a rental car agent for an
34authorized insurer, the rental company shall be authorized to accept,
35and, if served as set forth in this subdivision, shall accept, service
36of a summons and complaint and any other required documents
37against the foreign renter for any accident or collision resulting
38from the operation of the rental vehicle within the state during the
39rental period. If the rental company has a registered agent for
40service of process on file with the Secretary of State, process shall
P59   1be served on the rental company’s registered agent, either by
2first-class mail, return receipt requested, or by personal service.

3(2) Within 30 days of acceptance of service of process, the rental
4company shall, provide a copy of the summons and complaint and
5any other required documents served in accordance with this
6subdivision to the foreign renter by first-class mail, return receipt
7requested.

8(3) Any plaintiff, or his or her representative, who elects to serve
9the foreign renter by delivering a copy of the summons and
10complaint and any other required documents to the rental company
11pursuant to paragraph (1) shall agree to limit his or her recovery
12against the foreign renter and the rental company to the limits of
13the protection extended by the liability insurance.

14(4) Notwithstanding the requirements of Sections 17450 to
1517456, inclusive, of the Vehicle Code, service of process in
16compliance with paragraph (1) shall be deemed valid and effective
17service.

18(5) Notwithstanding any other provision of law, the requirement
19that the rental company accept service of process pursuant to
20 paragraph (1) shall not create any duty, obligation, or agency
21relationship other than that provided in paragraph (1).

22(w) This section shall remain in effect only until January 1,
232015, and as of that date is repealed, unless a later enacted statute,
24that is enacted before January 1, 2015, deletes or extends that date.

25

SEC. 2.  

Section 1936 of the Civil Code, as amended by Section
263 of Chapter 32 of the Statutes of 2012, is amended to read:

27

1936.  

(a) For the purpose of this section, the following
28definitions shall apply:

29(1) “Rental company” means a person or entity in the business
30of renting passenger vehicles to the public.

31(2) “Renter” means any person in a manner obligated under a
32contract for the lease or hire of a passenger vehicle from a rental
33company for a period of less than 30 days.

34(3) “Authorized driver” means (A) the renter, (B) the renter’s
35spouse if that person is a licensed driver and satisfies the rental
36company’s minimum age requirement, (C) the renter’s employer
37or coworker if he or she is engaged in business activity with the
38renter, is a licensed driver, and satisfies the rental company’s
39minimum age requirement, and (D) a person expressly listed by
40the rental company on the renter’s contract as an authorized driver.

P60   1(4) (A) “Customer facility charge” means any fee, including
2an alternative fee, required by an airport to be collected by a rental
3company from a renter for any of the following purposes:

4(i) To finance, design, and construct consolidated airport car
5rental facilities.

6(ii) To finance, design, construct, and operate common-use
7transportation systems that move passengers between airport
8terminals and those consolidated car rental facilities, and acquire
9vehicles for use in that system.

10(iii) To finance, design, and construct terminal modifications
11solely to accommodate and provide customer access to
12common-use transportation systems.

13(B) The aggregate amount to be collected shall not exceed the
14reasonable costs to finance, design, and construct those facilities.
15Copies of the customer facility charge information shall be
16provided to the Assembly and Senate Committees on Judiciary,
17the Assembly Committee on Transportation, and the Senate
18Committee on Transportation and Housing. Notwithstanding clause
19(iii) of subparagraph (A), the fees designated as a customer facility
20charge shall not be used to pay for terminal expansion, gate
21expansion, runway expansion, changes in hours of operation, or
22changes in the number of flights arriving or departing from the
23airport.

24(C) Except as provided in subparagraph (D), the authorization
25given pursuant to this section for an airport to impose a customer
26facility charge shall become inoperative when the bonds used for
27financing are paid.

28(D) If a bond or other form of indebtedness is not used for
29financing, or the bond or other form of indebtedness used for
30financing has been paid, the Oakland International Airport may
31require the collection of a customer facility charge for a period of
32up to 10 years from the imposition of the charge for the purposes
33allowed by, and subject to the conditions imposed by, this section.

34(5) “Damage waiver” means a rental company’s agreement not
35to hold a renter liable for all or any portion of any damage or loss
36related to the rented vehicle, any loss of use of the rented vehicle,
37or any storage, impound, towing, or administrative charges.

38(6) “Electronic surveillance technology” means a technological
39method or system used to observe, monitor, or collect information,
40including telematics, Global Positioning System (GPS), wireless
P61   1technology, or location-based technologies. “Electronic
2surveillance technology” does not include event data recorders
3(EDR), sensing and diagnostic modules (SDM), or other systems
4that are used either:

5(A) For the purpose of identifying, diagnosing, or monitoring
6functions related to the potential need to repair, service, or perform
7maintenance on the rental vehicle.

8(B) As part of the vehicle’s airbag sensing and diagnostic system
9in order to capture safety systems-related data for retrieval after a
10crash has occurred or in the event that the collision sensors are
11activated to prepare the decisionmaking computer to make the
12determination to deploy or not to deploy the airbag.

13(7) “Estimated time for replacement” means the number of hours
14of labor, or fraction thereof, needed to replace damaged vehicle
15parts as set forth in collision damage estimating guides generally
16used in the vehicle repair business and commonly known as “crash
17books.”

18(8) “Estimated time for repair” means a good faith estimate of
19the reasonable number of hours of labor, or fraction thereof, needed
20to repair damaged vehicle parts.

21(9) “Membership program” means a service offered by a rental
22company that permits customers to bypass the rental counter and
23go directly to the car previously reserved. A membership program
24shall meet all of the following requirements:

25(A) The renter initiates enrollment by completing an application
26on which the renter can specify a preference for type of vehicle
27and acceptance or declination of optional services.

28(B) The rental company fully discloses, prior to the enrollee’s
29first rental as a participant in the program, all terms and conditions
30of the rental agreement as well as all required disclosures.

31(C) The renter may terminate enrollment at any time.

32(D) The rental company fully explains to the renter that
33designated preferences, as well as acceptance or declination of
34optional services, may be changed by the renter at any time for
35the next and future rentals.

36(E) An employee designated to receive the form specified in
37subparagraph (C) of paragraph (1) of subdivision (t) is present at
38the lot where the renter takes possession of the car, to receive any
39change in the rental agreement from the renter.

P62   1(10) “Passenger vehicle” means a passenger vehicle as defined
2in Section 465 of the Vehicle Code.

3(b) Except as limited by subdivision (c), a rental company and
4a renter may agree that the renter will be responsible for no more
5than all of the following:

6(1) Physical or mechanical damage to the rented vehicle up to
7its fair market value, as determined in the customary market for
8the sale of that vehicle, resulting from collision regardless of the
9cause of the damage.

10(2) Loss due to theft of the rented vehicle up to its fair market
11value, as determined in the customary market for the sale of that
12vehicle, provided that the rental company establishes by clear and
13convincing evidence that the renter or the authorized driver failed
14to exercise ordinary care while in possession of the vehicle. In
15addition, the renter shall be presumed to have no liability for any
16loss due to theft if (A) an authorized driver has possession of the
17ignition key furnished by the rental company or an authorized
18driver establishes that the ignition key furnished by the rental
19company was not in the vehicle at the time of the theft, and (B) an
20authorized driver files an official report of the theft with the police
21or other law enforcement agency within 24 hours of learning of
22the theft and reasonably cooperates with the rental company and
23the police or other law enforcement agency in providing
24information concerning the theft. The presumption set forth in this
25paragraph is a presumption affecting the burden of proof which
26the rental company may rebut by establishing that an authorized
27driver committed, or aided and abetted the commission of, the
28theft.

29(3) Physical damage to the rented vehicle up to its fair market
30value, as determined in the customary market for the sale of that
31vehicle, resulting from vandalism occurring after, or in connection
32with, the theft of the rented vehicle. However, the renter shall have
33no liability for any damage due to vandalism if the renter would
34have no liability for theft pursuant to paragraph (2).

35(4) Physical damage to the rented vehicle up to a total of five
36hundred dollars ($500) resulting from vandalism unrelated to the
37theft of the rented vehicle.

38(5) Actual charges for towing, storage, and impound fees paid
39by the rental company if the renter is liable for damage or loss.

P63   1(6) An administrative charge, which shall include the cost of
2 appraisal and all other costs and expenses incident to the damage,
3loss, repair, or replacement of the rented vehicle.

4(c) The total amount of the renter’s liability to the rental
5company resulting from damage to the rented vehicle shall not
6exceed the sum of the following:

7(1) The estimated cost of parts which the rental company would
8have to pay to replace damaged vehicle parts. All discounts and
9price reductions or adjustments that are or will be received by the
10rental company shall be subtracted from the estimate to the extent
11not already incorporated in the estimate, or otherwise promptly
12credited or refunded to the renter.

13(2) The estimated cost of labor to replace damaged vehicle parts,
14which shall not exceed the product of (A) the rate for labor usually
15paid by the rental company to replace vehicle parts of the type that
16were damaged and (B) the estimated time for replacement. All
17discounts and price reductions or adjustments that are or will be
18received by the rental company shall be subtracted from the
19estimate to the extent not already incorporated in the estimate, or
20otherwise promptly credited or refunded to the renter.

21(3) (A) The estimated cost of labor to repair damaged vehicle
22parts, which shall not exceed the lesser of the following:

23(i) The product of the rate for labor usually paid by the rental
24company to repair vehicle parts of the type that were damaged and
25the estimated time for repair.

26(ii) The sum of the estimated labor and parts costs determined
27under paragraphs (1) and (2) to replace the same vehicle parts.

28(B) All discounts and price reductions or adjustments that are
29or will be received by the rental company shall be subtracted from
30the estimate to the extent not already incorporated in the estimate,
31or otherwise promptly credited or refunded to the renter.

32(4) For the purpose of converting the estimated time for repair
33into the same units of time in which the rental rate is expressed, a
34day shall be deemed to consist of eight hours.

35(5) Actual charges for towing, storage, and impound fees paid
36by the rental company.

37(6) The administrative charge described in paragraph (6) of
38subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
39estimated cost for parts and labor is more than one hundred dollars
40($100) up to and including five hundred dollars ($500), (B) one
P64   1hundred dollars ($100) if the total estimated cost for parts and
2labor exceeds five hundred dollars ($500) up to and including one
3thousand five hundred dollars ($1,500), and (C) one hundred fifty
4dollars ($150) if the total estimated cost for parts and labor exceeds
5one thousand five hundred dollars ($1,500). An administrative
6charge shall not be imposed if the total estimated cost of parts and
7labor is one hundred dollars ($100) or less.

8(d) (1) The total amount of an authorized driver’s liability to
9the rental company, if any, for damage occurring during the
10authorized driver’s operation of the rented vehicle shall not exceed
11the amount of the renter’s liability under subdivision (c).

12(2) A rental company shall not recover from the renter or other
13authorized driver an amount exceeding the renter’s liability under
14subdivision (c).

15(3) A claim against a renter resulting from damage or loss,
16excluding loss of use, to a rental vehicle shall be reasonably and
17rationally related to the actual loss incurred. A rental company
18shall mitigate damages where possible and shall not assert or collect
19a claim for physical damage which exceeds the actual costs of the
20repairs performed or the estimated cost of repairs, if the rental
21company chooses not to repair the vehicle, including all discounts
22and price reductions. However, if the vehicle is a total loss vehicle,
23the claim shall not exceed the total loss vehicle value established
24in accordance with procedures that are customarily used by
25insurance companies when paying claims on total loss vehicles,
26less the proceeds from salvaging the vehicle, if those proceeds are
27retained by the rental company.

28(4) If insurance coverage exists under the renter’s applicable
29personal or business insurance policy and the coverage is confirmed
30during regular business hours, the renter may require that the rental
31company submit any claims to the renter’s applicable personal or
32business insurance carrier. The rental company shall not make any
33written or oral representations that it will not present claims or
34negotiate with the renter’s insurance carrier. For purposes of this
35paragraph, confirmation of coverage includes telephone
36confirmation from insurance company representatives during
37regular business hours. Upon request of the renter and after
38confirmation of coverage, the amount of claim shall be resolved
39between the insurance carrier and the rental company. The renter
40shall remain responsible for payment to the rental car company
P65   1for any loss sustained that the renter’s applicable personal or
2business insurance policy does not cover.

3(5) A rental company shall not recover from the renter or other
4authorized driver for an item described in subdivision (b) to the
5extent the rental company obtains recovery from another person.

6(6) This section applies only to the maximum liability of a renter
7or other authorized driver to the rental company resulting from
8damage to the rented vehicle and not to the liability of another
9person.

10(e) (1) Except as provided in subdivision (f), a damage waiver
11shall provide or, if not expressly stated in writing, shall be deemed
12to provide that the renter has no liability for a damage, loss, loss
13of use, or a cost or expense incident thereto.

14(2) Except as provided in subdivision (f), every limitation,
15exception, or exclusion to a damage waiver is void and
16unenforceable.

17(f) A rental company may provide in the rental contract that a
18damage waiver does not apply under any of the following
19 circumstances:

20(1) Damage or loss results from an authorized driver’s (A)
21intentional, willful, wanton, or reckless conduct, (B) operation of
22the vehicle under the influence of drugs or alcohol in violation of
23Section 23152 of the Vehicle Code, (C) towing or pushing
24anything, or (D) operation of the vehicle on an unpaved road if
25the damage or loss is a direct result of the road or driving
26conditions.

27(2) Damage or loss occurs while the vehicle is (A) used for
28commercial hire, (B) used in connection with conduct that could
29be properly charged as a felony, (C) involved in a speed test or
30contest or in driver training activity, (D) operated by a person other
31than an authorized driver, or (E) operated outside the United States.

32(3) An authorized driver who has (A) provided fraudulent
33information to the rental company, or (B) provided false
34information and the rental company would not have rented the
35vehicle if it had instead received true information.

36(g) (1) A rental company that offers or provides a damage
37waiver for any consideration in addition to the rental rate shall
38clearly and conspicuously disclose the following information in
39the rental contract or holder in which the contract is placed and,
40also, in signs posted at the place, such as the counter, where the
P66   1renter signs the rental contract, and, for renters who are enrolled
2in the rental company’s membership program, in a sign that shall
3be posted in a location clearly visible to those renters as they enter
4the location where their reserved rental cars are parked or near the
5exit of the bus or other conveyance that transports the enrollee to
6a reserved car: (A) the nature of the renter’s liability, such as
7liability for all collision damage regardless of cause, (B) the extent
8of the renter’s liability, such as liability for damage or loss up to
9a specified amount, (C) the renter’s personal insurance policy or
10the credit card used to pay for the car rental transaction may
11provide coverage for all or a portion of the renter’s potential
12liability, (D) the renter should consult with his or her insurer to
13determine the scope of insurance coverage, including the amount
14of the deductible, if any, for which the renter is obligated, (E) the
15renter may purchase an optional damage waiver to cover all
16liability, subject to whatever exceptions the rental company
17expressly lists that are permitted under subdivision (f), and (F) the
18range of charges for the damage waiver.

19(2) In addition to the requirements of paragraph (1), a rental
20company that offers or provides a damage waiver shall orally
21disclose to all renters, except those who are participants in the
22rental company’s membership program, that the damage waiver
23may be duplicative of coverage that the customer maintains under
24his or her own policy of motor vehicle insurance. The renter’s
25receipt of the oral disclosure shall be demonstrated through the
26renter’s acknowledging receipt of the oral disclosure near that part
27of the contract where the renter indicates, by the renter’s own
28initials, his or her acceptance or declination of the damage waiver.
29Adjacent to that same part, the contract also shall state that the
30damage waiver is optional. Further, the contract for these renters
31shall include a clear and conspicuous written disclosure that the
32damage waiver may be duplicative of coverage that the customer
33maintains under his or her own policy of motor vehicle insurance.

34(3) The following is an example, for purposes of illustration
35and not limitation, of a notice fulfilling the requirements of
36paragraph (1) for a rental company that imposes liability on the
37renter for collision damage to the full value of the vehicle:

P67   1“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
2AND OPTIONAL DAMAGE WAIVER
3

4You are responsible for all collision damage to the rented vehicle
5even if someone else caused it or the cause is unknown. You are
6responsible for the cost of repair up to the value of the vehicle,
7and towing, storage, and impound fees.

8Your own insurance, or the issuer of the credit card you use to
9pay for the car rental transaction, may cover all or part of your
10financial responsibility for the rented vehicle. You should check
11with your insurance company, or credit card issuer, to find out
12about your coverage and the amount of the deductible, if any, for
13which you may be liable.

14Further, if you use a credit card that provides coverage for your
15potential liability, you should check with the issuer to determine
16if you must first exhaust the coverage limits of your own insurance
17before the credit card coverage applies.

18The rental company will not hold you responsible if you buy a
19damage waiver. But a damage waiver will not protect you if (list
20exceptions).”

21(A) When the above notice is printed in the rental contract or
22holder in which the contract is placed, the following shall be printed
23immediately following the notice:

24“The cost of an optional damage waiver is $____ for every (day
25or week).”

26(B) When the above notice appears on a sign, the following
27shall appear immediately adjacent to the notice:

28“The cost of an optional damage waiver is $____ to $____ for
29every (day or week), depending upon the vehicle rented.”

30(h) Notwithstanding any other provision of law, a rental
31company may sell a damage waiver subject to the following rate
32limitations for each full or partial 24-hour rental day for the damage
33waiver.

34(1) For rental vehicles that the rental company designates as an
35“economy car,” “subcompact car,” “compact car,” or another term
36having similar meaning when offered for rental, or another vehicle
37having a manufacturer’s suggested retail price of nineteen thousand
38dollars ($19,000) or less, the rate shall not exceed nine dollars
39($9).

P68   1(2) For rental vehicles that have a manufacturer’s suggested
2retail price from nineteen thousand one dollars ($19,001) to
3thirty-four thousand nine hundred ninety-nine dollars ($34,999),
4inclusive, and that are also either vehicles of next year’s model,
5or not older than the previous year’s model, the rate shall not
6exceed fifteen dollars ($15). For those rental vehicles older than
7the previous year’s model-year, the rate shall not exceed nine
8dollars ($9).

9(i) The manufacturer’s suggested retail prices described in
10subdivision (h) shall be adjusted annually to reflect changes from
11the previous year in the Consumer Price Index. For the purposes
12of this section, “Consumer Price Index” means the United States
13Consumer Price Index for All Urban Consumers, for all items.

14(j) A rental company that disseminates in this state an
15advertisement containing a rental rate shall include in that
16advertisement a clearly readable statement of the charge for a
17damage waiver and a statement that a damage waiver is optional.

18(k) (1) A rental company shall not require the purchase of a
19damage waiver, optional insurance, or another optional good or
20 service.

21(2) A rental company shall not engage in any unfair, deceptive,
22or coercive conduct to induce a renter to purchase the damage
23waiver, optional insurance, or another optional good or service,
24including conduct such as, but not limited to, refusing to honor
25the renter’s reservation, limiting the availability of vehicles,
26requiring a deposit, or debiting or blocking the renter’s credit card
27account for a sum equivalent to a deposit if the renter declines to
28purchase the damage waiver, optional insurance, or another
29optional good or service.

30(l) (1) In the absence of express permission granted by the
31renter subsequent to damage to, or loss of, the vehicle, a rental
32company shall not seek to recover any portion of a claim arising
33out of damage to, or loss of, the rented vehicle by processing a
34credit card charge or causing a debit or block to be placed on the
35renter’s credit card account.

36(2) A rental company shall not engage in any unfair, deceptive,
37or coercive tactics in attempting to recover or in recovering on any
38claim arising out of damage to, or loss of, the rented vehicle.

39(m) (1) A customer facility charge may be collected by a rental
40company under the following circumstances:

P69   1(A) Collection of the fee by the rental company is required by
2an airport operated by a city, a county, a city and county, a joint
3powers authority, a special district, or the San Diego County
4Regional Airport Authority formed pursuant to Division 17
5(commencing with Section 170000) of the Public Utilities Code.

6(B) The fee is calculated on a per contract basis or as provided
7in paragraph (2).

8(C) The fee is a user fee, not a tax imposed upon real property
9or an incidence of property ownership under Article XIII D of the
10California Constitution.

11(D) Except as otherwise provided in subparagraph (E), the fee
12shall be ten dollars ($10) per contract or the amount provided in
13paragraph (2).

14(E) The fee for a consolidated rental car facility shall be
15collected only from customers of on-airport rental car companies.
16If the fee imposed by the airport is for both a consolidated rental
17car facility and a common-use transportation system, the fee
18collected from customers of on-airport rental car companies shall
19be ten dollars ($10) or the amount provided in paragraph (2), but
20the fee imposed on customers of off-airport rental car companies
21who are transported on the common-use transportation system is
22proportionate to the costs of the common-use transportation system
23only. The fee is uniformly applied to each class of on-airport or
24off-airport customers, provided that the airport requires off-airport
25customers to use the common-use transportation system. For
26purposes of this subparagraph, “on-airport rental car company”
27means a rental company operating under an airport property lease
28or an airport concession or license agreement whose customers
29use or will use the consolidated rental car facility and the collection
30of the fee as to those customers is consistent with subparagraph
31(C).

32(F) Revenues collected from the fee do not exceed the reasonable
33costs of financing, designing, and constructing the facility and
34financing, designing, constructing, and operating any common-use
35transportation system, or acquiring vehicles for use in that system,
36and shall not be used for any other purpose.

37(G) The fee is separately identified on the rental agreement.

38(H) This paragraph does not apply to fees which are governed
39by Section 50474.1 of the Government Code or Section 57.5 of
40the San Diego Unified Port District Act.

P70   1(I) For any airport seeking to require rental car companies to
2collect an alternative customer facility charge pursuant to paragraph
3(2), the following provisions apply:

4(i) Notwithstanding Section 10231.5 of the Government Code,
5the airport shall provide reports on an annual basis to the Senate
6and Assembly Committees on Judiciary detailing all of the
7following:

8(I) The total amount of the customer facility charge collected.

9(II) How the funds are being spent.

10(III) The amount of and reason for any changes in the airport’s
11budget or financial needs for the facility or common-use
12transportation system.

13(IV) Whether airport concession fees authorized by Section
141936.01 have increased since the prior report, if any.

15(ii) The airport shall complete the independent audit required
16by subparagraph (B) of paragraph (4) of subdivision (a) prior to
17initial collection of the customer facility charge, prior to any
18increase pursuant to paragraph (2), and every three years after
19initial collection and any increase until such time as the fee
20authorization becomes inoperative pursuant to subparagraph (C)
21of paragraph (4) of subdivision (a).

22(iii) Use of the bonds shall be limited to construction and design
23of the consolidated rental car facility, terminal modifications, and
24operating costs of the common-use transportation system, as
25specified in paragraph (4) of subdivision (a).

26(2) Any airport may require rental car companies to collect an
27alternative customer facility charge under the following conditions:

28(A) The airport first conducts a publicly noticed hearing pursuant
29to the Ralph M. Brown Act (Chapter 9 (commencing with Section
3054950) of Part 1 of Division 2 of Title 5 of the Government Code)
31to review the costs of financing the design and construction of a
32consolidated rental car facility and the design, construction, and
33operation of any common-use transportation system in which all
34of the following occur:

35(i) The airport establishes the amount of revenue necessary to
36finance the reasonable cost to design and construct a consolidated
37rental car facility and to design, construct, and operate any
38common-use transportation system, or acquire vehicles for use in
39that system, based on evidence presented during the hearing.

P71   1(ii) The airport finds that the reasonable cost of the project
2requires the additional amount of revenue that would be generated
3by the proposed daily rate, including any rate increase, authorized
4pursuant to this paragraph.

5(iii) The airport outlines each of the following:

6(I) Steps it has taken to limit costs.

7(II) Other potential alternatives for meeting its revenue needs
8other than the collection of the fee.

9(III) The extent to which rental car companies or other
10businesses or individuals using the facility or common-use
11transportation system will pay for the costs associated with these
12facilities and systems other than the fee from rental customers.

13(B) The airport may not require the fee authorized in this
14paragraph to be collected at any time that the fee authorized in
15paragraph (1) of this subdivision is being collected.

16(C) Pursuant to the procedure set forth in this subdivision, the
17fee may be collected at a rate charged on a per-day basis subject
18to the following conditions:

19(i) Commencing January 1, 2011, the amount of the fee may
20not exceed six dollars ($6) per day.

21(ii) Commencing January 1, 2014, the amount of the fee may
22not exceed seven dollars and fifty cents ($7.50) per day.

23(iii) Commencing January 1, 2017, and thereafter, the amount
24of the fee may not exceed nine dollars ($9) per day.

25(iv) At no time shall the fee authorized in this paragraph be
26collected from any customer for more than five days for each
27individual rental car contract.

28(v) An airport subject to this paragraph shall initiate the process
29for obtaining the authority to require or increase the alternative
30fee no later than January 1, 2018. Any airport that obtains the
31authority to require or increase an alternative fee shall be authorized
32to continue collecting that fee until the fee authorization becomes
33inoperative pursuant to subparagraph (C) of paragraph (4) of
34subdivision (a).

35(3) Notwithstanding any other provision of law, including, but
36not limited to, Part 1 (commencing with Section 6001) to Part 1.7
37(commencing with Section 7280), inclusive, of Division 2 of the
38Revenue and Taxation Code, the fees collected pursuant to this
39section, or another law whereby a local agency operating an airport
40requires a rental car company to collect a facility financing fee
P72   1from its customers, are not subject to sales, use, or transaction
2taxes.

3(n) (1) A rental company shall only advertise, quote, and charge
4a rental rate that includes the entire amount except taxes, a
5customer facility charge, if any, and a mileage charge, if any, that
6a renter must pay to hire or lease the vehicle for the period of time
7to which the rental rate applies. A rental company shall not charge
8in addition to the rental rate, taxes, a customer facility charge, if
9any, and a mileage charge, if any, any fee that is required to be
10paid by the renter as a condition of hiring or leasing the vehicle,
11including, but not limited to, required fuel or airport surcharges
12other than customer facility charges, nor a fee for transporting the
13renter to the location where the rented vehicle will be delivered to
14the renter.

15(2) In addition to the rental rate, taxes, customer facility charges,
16if any, and mileage charges, if any, a rental company may charge
17for an item or service provided in connection with a particular
18rental transaction if the renter could have avoided incurring the
19charge by choosing not to obtain or utilize the optional item or
20service. Items and services for which the rental company may
21impose an additional charge include, but are not limited to, optional
22insurance and accessories requested by the renter, service charges
23incident to the renter’s optional return of the vehicle to a location
24other than the location where the vehicle was hired or leased, and
25charges for refueling the vehicle at the conclusion of the rental
26transaction in the event the renter did not return the vehicle with
27as much fuel as was in the fuel tank at the beginning of the rental.
28A rental company also may impose an additional charge based on
29reasonable age criteria established by the rental company.

30(3) A rental company shall not charge a fee for authorized
31drivers in addition to the rental charge for an individual renter.

32(4) If a rental company states a rental rate in print advertisement
33or in a telephonic, in-person, or computer-transmitted quotation,
34the rental company shall disclose clearly in that advertisement or
35quotation the terms of mileage conditions relating to the advertised
36or quoted rental rate, including, but not limited to, to the extent
37applicable, the amount of mileage and gas charges, the number of
38miles for which no charges will be imposed, and a description of
39geographic driving limitations within the United States and Canada.

P73   1(5) (A) When a rental rate is stated in an advertisement,
2quotation, or reservation in connection with a car rental at an airport
3where a customer facility charge is imposed, the rental company
4shall disclose clearly the existence and amount of the customer
5facility charge. For purposes of this subparagraph, advertisements
6include radio, television, other electronic media, and print
7advertisements. For purposes of this subparagraph, quotations and
8reservations include those that are telephonic, in-person, and
9computer-transmitted. If the rate advertisement is intended to
10include transactions at more than one airport imposing a customer
11facility charge, a range of fees may be stated in the advertisement.
12However, all rate advertisements that include car rentals at airport
13destinations shall clearly and conspicuously include a toll-free
14telephone number whereby a customer can be told the specific
15amount of the customer facility charge to which the customer will
16be obligated.

17(B) If a person or entity other than a rental car company,
18including a passenger carrier or a seller of travel services, advertises
19or quotes a rate for a car rental at an airport where a customer
20facility charge is imposed, that person or entity shall, provided
21that he, she, or it is provided with information about the existence
22and amount of the fee, to the extent not specifically prohibited by
23federal law, clearly disclose the existence and amount of the fee
24in any telephonic, in-person, or computer-transmitted quotation at
25the time of making an initial quotation of a rental rate and at the
26time of making a reservation of a rental car. If a rental car company
27provides the person or entity with rate and customer facility charge
28information, the rental car company is not responsible for the
29failure of that person or entity to comply with this subparagraph
30when quoting or confirming a rate to a third person or entity.

31(6) If a rental company delivers a vehicle to a renter at a location
32other than the location where the rental company normally carries
33on its business, the rental company shall not charge the renter an
34amount for the rental for the period before the delivery of the
35vehicle. If a rental company picks up a rented vehicle from a renter
36at a location other than the location where the rental company
37normally carries on its business, the rental company shall not
38charge the renter an amount for the rental for the period after the
39renter notifies the rental company to pick up the vehicle.

P74   1(o) A rental company shall not use, access, or obtain any
2information relating to the renter’s use of the rental vehicle that
3was obtained using electronic surveillance technology, except in
4the following circumstances:

5(1) (A) When the equipment is used by the rental company
6only for the purpose of locating a stolen, abandoned, or missing
7rental vehicle after one of the following:

8(i) The renter or law enforcement has informed the rental
9company that the vehicle is missing or has been stolen or
10abandoned.

11(ii) The rental vehicle has not been returned following one week
12after the contracted return date, or by one week following the end
13of an extension of that return date.

14(iii) The rental company discovers the rental vehicle has been
15stolen or abandoned, and, if stolen, it shall report the vehicle stolen
16to law enforcement by filing a stolen vehicle report, unless law
17enforcement has already informed the rental company that the
18vehicle is missing or has been stolen or abandoned.

19(B) If electronic surveillance technology is activated pursuant
20to subparagraph (A), a rental company shall maintain a record, in
21either electronic or written form, of information relevant to the
22activation of that technology. That information shall include the
23rental agreement, including the return date, and the date and time
24the electronic surveillance technology was activated. The record
25shall also include, if relevant, a record of written or other
26communication with the renter, including communications
27regarding extensions of the rental, police reports, or other written
28communication with law enforcement officials. The record shall
29be maintained for a period of at least 12 months from the time the
30record is created and shall be made available upon the renter’s
31request. The rental company shall maintain and furnish explanatory
32codes necessary to read the record. A rental company shall not be
33required to maintain a record if electronic surveillance technology
34is activated to recover a rental vehicle that is stolen or missing at
35a time other than during a rental period.

36(2) In response to a specific request from law enforcement
37pursuant to a subpoena or search warrant.

38(3) This subdivision does not prohibit a rental company from
39equipping rental vehicles with GPS-based technology that provides
40navigation assistance to the occupants of the rental vehicle, if the
P75   1rental company does not use, access, or obtain information relating
2to the renter’s use of the rental vehicle that was obtained using
3that technology, except for the purposes of discovering or repairing
4a defect in the technology and the information may then be used
5only for that purpose.

6(4) This subdivision does not prohibit a rental company from
7equipping rental vehicles with electronic surveillance technology
8that allows for the remote locking or unlocking of the vehicle at
9the request of the renter, if the rental company does not use, access,
10or obtain information relating to the renter’s use of the rental
11vehicle that was obtained using that technology, except as
12necessary to lock or unlock the vehicle.

13(5) This subdivision does not prohibit a rental company from
14equipping rental vehicles with electronic surveillance technology
15that allows the company to provide roadside assistance, such as
16towing, flat tire, or fuel services, at the request of the renter, if the
17rental company does not use, access, or obtain information relating
18to the renter’s use of the rental vehicle that was obtained using
19that technology except as necessary to provide the requested
20roadside assistance.

21(6) This subdivision does not prohibit a rental company from
22obtaining, accessing, or using information from electronic
23surveillance technology for the sole purpose of determining the
24date and time the vehicle is returned to the rental company, and
25the total mileage driven and the vehicle fuel level of the returned
26vehicle. This paragraph, however, shall apply only after the renter
27has returned the vehicle to the rental company, and the information
28shall only be used for the purpose described in this paragraph.

29(p) A rental company shall not use electronic surveillance
30technology to track a renter in order to impose fines or surcharges
31relating to the renter’s use of the rental vehicle.

32(q) A renter may bring an action against a rental company for
33the recovery of damages and appropriate equitable relief for a
34violation of this section. The prevailing party shall be entitled to
35recover reasonable attorney’s fees and costs.

36(r) A rental company that brings an action against a renter for
37loss due to theft of the vehicle shall bring the action in the county
38in which the renter resides or, if the renter is not a resident of this
39state, in the jurisdiction in which the renter resides.

P76   1(s) A waiver of any of the provisions of this section shall be
2void and unenforceable as contrary to public policy.

3(t) (1) A rental company’s disclosure requirements shall be
4satisfied for renters who are enrolled in the rental company’s
5membership program if all of the following conditions are met:

6(A) Prior to the enrollee’s first rental as a participant in the
7program, the renter receives, in writing, the following:

8(i) All of the disclosures required by paragraph (1) of subdivision
9(g), including the terms and conditions of the rental agreement
10then in effect.

11(ii) An Internet Web site address, as well as a contact number
12or address, where the enrollee can learn of changes to the rental
13agreement or to the laws of this state governing rental agreements
14since the effective date of the rental company’s most recent
15restatement of the rental agreement and distribution of that
16restatement to its members.

17(B) At the commencement of each rental period, the renter is
18provided, on the rental record or the folder in which it is inserted,
19with a printed notice stating that he or she had either previously
20selected or declined an optional damage waiver and that the renter
21has the right to change preferences.

22(C) At the commencement of each rental period, the rental
23company provides, on the rearview mirror, a hanger on which a
24statement is printed, in a box, in at least 12-point boldface type,
25notifying the renter that the collision damage waiver offered by
26the rental company may be duplicative of coverage that the
27customer maintains under his or her own policy of motor vehicle
28insurance. If it is not feasible to hang the statement from the
29rearview mirror, it shall be hung from the steering wheel.

30The hanger shall provide the renter a box to initial if he or she
31(not his or her employer) has previously accepted or declined the
32collision damage waiver and that he or she now wishes to change
33his or her decision to accept or decline the collision damage waiver,
34as follows:


35“◻ If I previously accepted the collision damage waiver, I
36now decline it.

  
37◻ If I previously declined the collision damage waiver, I now
38accept it.”

39The hanger shall also provide a box for the enrollee to indicate
40whether this change applies to this rental transaction only or to all
P77   1future rental transactions. The hanger shall also notify the renter
2that he or she may make that change, prior to leaving the lot, by
3returning the form to an employee designated to receive the form
4who is present at the lot where the renter takes possession of the
5car, to receive any change in the rental agreement from the renter.

6(2) (A) This subdivision is not effective unless the employee
7designated pursuant to subparagraph (E) of paragraph (8) of
8subdivision (a) is actually present at the required location.

9(B) This subdivision does not relieve the rental company from
10the disclosures required to be made within the text of a contract
11or holder in which the contract is placed; in or on an advertisement
12containing a rental rate; or in a telephonic, in-person, or
13computer-transmitted quotation or reservation.

14(u) The amendments made to this section during the 2001-02
15 Regular Session of the Legislature do not affect litigation pending
16on or before January 1, 2003, alleging a violation of Section 22325
17of the Business and Professions Code as it read at the time the
18action was commenced.

19(v) This section shall become operative on January 1, 2015.

end delete


O

    98