Amended in Senate August 30, 2013

Amended in Assembly May 13, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 359

Introduced by Assembly Member Holden

(Principal coauthor: Assembly Member Allen)

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(Coauthor: Assembly Member Wieckowski)

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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. 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.

This bill would provide guidelines regarding the scope of the audit, would require the audit to be posted on the airport’s Internet Web site begin insert and to be reported to specified legislative committees end insert , and would limit the requirement to conduct the audit every 3 years to those instances where the customer facility charge is used to either operate a common-use transportation system or acquire vehicles for that system.

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

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

SECTION 1.  

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

1936.  

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

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

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

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

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

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

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

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

(B) The aggregate amount to be collected shall not exceed the
reasonable costs, as determined by an audit, by an independent
auditor, paid for by the airport, to finance, design, and construct
those facilities. The auditor shall independently examine and
substantiate the necessity for and the amount of the customer
facility charge, including whether the airport’s actual or projected
costs are supported and justified, any steps the airport may take to
limit costs, potential alternatives for meeting the airport’s revenue
needs other than the collection of the fee, and whether and to what
extent car rental companies or other businesses or individuals using
the facility or common-use transportation system may pay for the
costs associated with these facilities and systems other than the
fee from rental customers, or whether the airport did not comply
with any provision of this subparagraph. Copies of the audit shall
be provided to the Assembly and Senate Committees on Judiciary,
the Assembly Committee on Transportation, and the Senate
Committee on Transportation and Housing and shall be posted on
the airport’s Internet Web site. In the case of a begin insert customer facility
charge for a common-use end insert transportation system, the audit also
shall consider the reasonable costs of providing the transit system
or busing network pursuant to clause (ii) of subparagraph (A). Any
audit required by this subparagraph may be included as a part of
an audit of an airport’s finances. Notwithstanding clause (iii) of
subparagraph (A), the fees designated as a customer facility charge
shall not be used to pay for terminal expansion, gate expansion,
runway expansion, changes in hours of operation, or changes in
the number of flights arriving or departing from the airport.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
AND OPTIONAL DAMAGE WAIVER

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(II) How the funds are being spent.

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

(IV) Whether airport concession fees authorized by Section
1936.01 have increased since the prior report, if any.

begin delete

(ii) (I) The airport shall complete the audit required by
subparagraph (B) of paragraph (4) of subdivision (a) prior to initial
collection of the customer facility charge and prior to any increase
pursuant to paragraph (2). An audit shall be completed every three
years after initial collection only if the customer facility charge is
used for the purpose of operating a common-use transportation
system or to acquire vehicles for use in such a system pursuant to
clause (ii) of subparagraph (A) of paragraph (4) of subdivision (a).
An audit conducted pursuant to this clause may be included in an
annual audit of an airport’s finances. This obligation shall continue
until such time as the fee authorization becomes inoperative
pursuant to subparagraph (C) of paragraph (4) of subdivision (a).

end delete begin insert

(ii) (I) The airport shall complete the audit required by
subparagraph (B) of paragraph (4) of subdivision (a) prior to
initial collection of the customer facility charge. Notwithstanding
Section 10231.5 of the Government Code, copies of the audit shall
be provided to the Assembly and Senate Committees on Judiciary,
the Assembly Committee on Transportation, and the Senate
Committee on Transportation and Housing and shall be posted
on the airport’s Internet Web site.

end insert begin insert

(II) Prior to any increase pursuant to paragraph (2), the airport
shall update the information provided in the initial collection audit
pursuant to subclause (I). Notwithstanding Section 10231.5 of the
Government Code, copies of the updated audit shall be provided
to the Assembly and Senate Committees on Judiciary, the Assembly
Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport’s
Internet Web site.

end insert begin insert

(III) An audit shall be completed every three years after initial
collection only if the customer facility charge is collected for the
purpose of operating a common-use transportation system or to
acquire vehicles for use in such a system pursuant to clause (ii)
of subparagraph (A) of paragraph (4) of subdivision (a). A
regularly conducted audit of airport finances that includes the
customer facility charge information, that satisfies the requirements
of subparagraph (B) of paragraph (4) of subdivision (a), and is
produced in accordance with the generally accepted accounting
principles of the Government Accounting Standards Board, shall
satisfy the requirements of this subclause. This obligation shall
continue until the fee authorization becomes inoperative pursuant
to subparagraph (C) of paragraph (4) of subdivision (a).
Notwithstanding Section 10231.5 of the Government Code, the
information reported pursuant to this subclause shall be compiled
into one document, shall be provided to the Assembly and Senate
Committees on Judiciary, the Assembly Committee on
Transportation, and the Senate Committee on Transportation and
Housing and shall be posted on the airport’s Internet Web site
accessible to the public. The information reported shall be
contained within one easily accessible page contained within the
airport’s Internet Web site.

end insert begin delete

(II)

end delete

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

begin insert

(V) The airport shall post on the airport’s Internet Web site
copies of the completed audits required by this clause for a period
of six years following the audit’s completion.

end insert

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

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

(A) The airport first conducts a publicly noticed hearing pursuant
to the Ralph M. Brown Act (Chapter 9 (commencing with Section
54950) of Part 1 of Division 2 of Title 5 of the Government Code)
to review the costs of financing the design and construction of a
consolidated rental car facility and the design, construction, and
operation of any common-use transportation system in which all
of the following occur:

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

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

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

(iv) The airport outlines each of the following:

(I) Steps it has taken to limit costs.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(4) Notwithstanding the requirements of Sections 17450 to
17456, inclusive, of the Vehicle Code, service of process in
compliance with paragraph (1) shall be deemed valid and effective
service.

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

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

SEC. 2.  

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

1936.  

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

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

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

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

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

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

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

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

(B) The aggregate amount to be collected shall not exceed the
reasonable costs, as determined by an audit, by an independent
auditor, paid for by the airport, to finance, design, and construct
those facilities. The auditor shall independently examine and
substantiate the necessity for and the amount of the customer
facility charge, including whether the airport’s actual or projected
costs are supported and justified, any steps the airport may take to
limit costs, potential alternatives for meeting the airport’s revenue
needs other than the collection of the fee, and whether and to what
extent car rental companies or other businesses or individuals using
the facility or common-use transportation system may pay for the
costs associated with these facilities and systems other than the
fee from rental customers, or whether the airport did not comply
with any provision of this subparagraph. Copies of the audit shall
be provided to the Assembly and Senate Committees on Judiciary,
the Assembly Committee on Transportation, and the Senate
Committee on Transportation and Housing and shall be posted on
the airport’s Internet Web site. In the case of a begin insert customer facility
charge for a common-use end insert transportation system, the audit also
shall consider the reasonable costs of providing the transit system
or busing network pursuant to clause (ii) of subparagraph (A). Any
audit required by this subparagraph may be included as a part of
an audit of an airport’s finances. Notwithstanding clause (iii) of
subparagraph (A), the fees designated as a customer facility charge
shall not be used to pay for terminal expansion, gate expansion,
runway expansion, changes in hours of operation, or changes in
the number of flights arriving or departing from the airport.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
AND OPTIONAL DAMAGE WAIVER

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(II) How the funds are being spent.

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

(IV) Whether airport concession fees authorized by Section
1936.01 have increased since the prior report, if any.

begin delete

(ii) (I) The airport shall complete the audit required by
subparagraph (B) of paragraph (4) of subdivision (a) prior to initial
collection of the customer facility charge and prior to any increase
pursuant to paragraph (2). An audit shall be completed every three
years after initial collection only if the customer facility charge is
used for the purpose of operating a common-use transportation
system or to acquire vehicles for use in such a system pursuant to
clause (ii) of subparagraph (A) of paragraph (4) of subdivision (a).
An audit conducted pursuant to this clause may be included in an
annual audit of an airport’s finances. This obligation shall continue
until such time as the fee authorization becomes inoperative
pursuant to subparagraph (C) of paragraph (4) of subdivision (a).

end delete begin insert

(ii) (I) The airport shall complete the audit required by
subparagraph (B) of paragraph (4) of subdivision (a) prior to
initial collection of the customer facility charge. Notwithstanding
Section 10231.5 of the Government Code, copies of the audit shall
be provided to the Assembly and Senate Committees on Judiciary,
the Assembly Committee on Transportation, and the Senate
Committee on Transportation and Housing and shall be posted
on the airport’s Internet Web site.

end insert begin insert

(II) Prior to any increase pursuant to paragraph (2), the airport
shall update the information provided in the initial collection audit
pursuant to subclause (I). Notwithstanding Section 10231.5 of the
Government Code, copies of the updated audit shall be provided
to the Assembly and Senate Committees on Judiciary, the Assembly
Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport’s
Internet Web site.

end insert begin insert

(III) An audit shall be completed every three years after initial
collection only if the customer facility charge is collected for the
purpose of operating a common-use transportation system or to
acquire vehicles for use in such a system pursuant to clause (ii)
of subparagraph (A) of paragraph (4) of subdivision (a). A
regularly conducted audit of airport finances that includes the
customer facility charge information, that satisfies the requirements
of subparagraph (B) of paragraph (4) of subdivision (a), and is
produced in accordance with the generally accepted accounting
principles of the Government Accounting Standards Board, shall
satisfy the requirements of this subclause. This obligation shall
continue until the fee authorization becomes inoperative pursuant
to subparagraph (C) of paragraph (4) of subdivision (a).
Notwithstanding Section 10231.5 of the Government Code, the
information reported pursuant to this subclause shall be compiled
into one document, shall be provided to the Assembly and Senate
Committees on Judiciary, the Assembly Committee on
Transportation, and the Senate Committee on Transportation and
Housing and shall be posted on the airport’s Internet Web site
accessible to the public. The information reported shall be
contained within one easily accessible page contained within the
airport’s Internet Web site.

end insert begin delete

(II)

end delete

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

begin insert

(V) The airport shall post on the airport’s Internet Web site
copies of the completed audits required by this clause for a period
of six years following the audit’s completion.

end insert

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

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

(A) The airport first conducts a publicly noticed hearing pursuant
to the Ralph M. Brown Act (Chapter 9 (commencing with Section
54950) of Part 1 of Division 2 of Title 5 of the Government Code)
to review the costs of financing the design and construction of a
consolidated rental car facility and the design, construction, and
operation of any common-use transportation system in which all
of the following occur:

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

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

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

(iv) The airport outlines each of the following:

(I) Steps it has taken to limit costs.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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