California Legislature—2013–14 Regular Session

Assembly BillNo. 1981


Introduced by Assembly Member Brown

February 19, 2014


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

LEGISLATIVE COUNSEL’S DIGEST

AB 1981, as introduced, Brown. Rental vehicles: contracts.

Existing law governs contracts between vehicle rental companies and their customers and defines an authorized driver for purposes of these provisions.

This bill would make technical, nonsubstantive changes to this definition.

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

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

P1    1

SECTION 1.  

Section 1936 of the Civil Code, as amended by
2Section 2 of Chapter 549 of the Statutes of 2013, is amended to
3read:

4

1936.  

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

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

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

P2    1(3) “Authorized driver” means begin delete (A) the renter, (B) the renter’s
2spouse if that person is a licensed driver and satisfies the rental
3company’s minimum age requirement, (C) the renter’s employer
4or coworker if he or she is engaged in business activity with the
5renter, is a licensed driver, and satisfies the rental company’s
6minimum age requirement, and (D) a person expressly listed by
7the rental company on the renter’s contract as an authorized driver.end delete

8begin insert all of the following:end insert

begin insert

9(A) The renter.

end insert
begin insert

10(B) The renter’s spouse if that person is a licensed driver and
11satisfies the rental company’s minimum age requirement.

end insert
begin insert

12(C) The renter’s employer or coworker if he or she is engaged
13in business activity with the renter, is a licensed driver, and
14 satisfies the rental company’s minimum age requirement.

end insert
begin insert

15(D) A person expressly listed by the rental company on that
16renter’s contract as an authorized driver.

end insert

17(4) (A) “Customer facility charge” means any fee, including
18an alternative fee, required by an airport to be collected by a rental
19company from a renter for any of the following purposes:

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

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

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

29(B) The aggregate amount to be collected shall not exceed the
30reasonable costs, as determined by an audit, by an independent
31auditor, paid for by the airport, to finance, design, and construct
32those facilities. The auditor shall independently examine and
33substantiate the necessity for and the amount of the customer
34facility charge, including whether the airport’s actual or projected
35costs are supported and justified, any steps the airport may take to
36limit costs, potential alternatives for meeting the airport’s revenue
37needs other than the collection of the fee, and whether and to what
38extent car rental companies or other businesses or individuals using
39the facility or common-use transportation system may pay for the
40costs associated with these facilities and systems other than the
P3    1fee from rental customers, or whether the airport did not comply
2with any provision of this subparagraph. Copies of the audit shall
3be provided to the Assembly and Senate Committees on Judiciary,
4the Assembly Committee on Transportation, and the Senate
5Committee on Transportation and Housing and shall be posted on
6the airport’s Internet Web site. In the case of a customer facility
7charge for a common-use transportation system, the audit also
8shall consider the reasonable costs of providing the transit system
9or busing network pursuant to clause (ii) of subparagraph (A). Any
10audit required by this subparagraph may be included as a part of
11an audit of an airport’s finances. Notwithstanding clause (iii) of
12subparagraph (A), the fees designated as a customer facility charge
13shall not be used to pay for terminal expansion, gate expansion,
14runway expansion, changes in hours of operation, or changes in
15the number of flights arriving or departing from the airport.

16(C) Except as provided in subparagraph (D), the authorization
17given pursuant to this section for an airport to impose a customer
18facility charge shall become inoperative when the bonds used for
19financing are paid.

20(D) If a bond or other form of indebtedness is not used for
21financing, or the bond or other form of indebtedness used for
22financing has been paid, the Oakland International Airport may
23require the collection of a customer facility charge for a period of
24up to 10 years from the imposition of the charge for the purposes
25allowed by, and subject to the conditions imposed by, this section.

26(5) “Damage waiver” means a rental company’s agreement not
27to hold a renter liable for all or any portion of any damage or loss
28related to the rented vehicle, any loss of use of the rented vehicle,
29or any storage, impound, towing, or administrative charges.

30(6) “Electronic surveillance technology” means a technological
31method or system used to observe, monitor, or collect information,
32including telematics, Global Positioning System (GPS), wireless
33technology, or location-based technologies. “Electronic
34surveillance technology” does not include event data recorders
35(EDR), sensing and diagnostic modules (SDM), or other systems
36that are used either:

37(A) For the purpose of identifying, diagnosing, or monitoring
38functions related to the potential need to repair, service, or perform
39maintenance on the rental vehicle.

P4    1(B) As part of the vehicle’s airbag sensing and diagnostic system
2in order to capture safety systems-related data for retrieval after a
3crash has occurred or in the event that the collision sensors are
4activated to prepare the decisionmaking computer to make the
5determination to deploy or not to deploy the airbag.

6(7) “Estimated time for replacement” means the number of hours
7of labor, or fraction thereof, needed to replace damaged vehicle
8parts as set forth in collision damage estimating guides generally
9used in the vehicle repair business and commonly known as “crash
10books.”

11(8) “Estimated time for repair” means a good faith estimate of
12the reasonable number of hours of labor, or fraction thereof, needed
13to repair damaged vehicle parts.

14(9) “Membership program” means a service offered by a rental
15company that permits customers to bypass the rental counter and
16go directly to the car previously reserved. A membership program
17shall meet all of the following requirements:

18(A) The renter initiates enrollment by completing an application
19on which the renter can specify a preference for type of vehicle
20and acceptance or declination of optional services.

21(B) The rental company fully discloses, prior to the enrollee’s
22first rental as a participant in the program, all terms and conditions
23of the rental agreement as well as all required disclosures.

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

25(D) The rental company fully explains to the renter that
26designated preferences, as well as acceptance or declination of
27optional services, may be changed by the renter at any time for
28the next and future rentals.

29(E) An employee designated to receive the form specified in
30subparagraph (C) of paragraph (1) of subdivision (t) is present at
31the lot where the renter takes possession of the car, to receive any
32change in the rental agreement from the renter.

33(10) “Passenger vehicle” means a passenger vehicle as defined
34in Section 465 of the Vehicle Code.

35(b) Except as limited by subdivision (c), a rental company and
36a renter may agree that the renter will be responsible for no more
37than all of the following:

38(1) Physical or mechanical damage to the rented vehicle up to
39its fair market value, as determined in the customary market for
P5    1the sale of that vehicle, resulting from collision regardless of the
2cause of the damage.

3(2) Loss due to theft of the rented vehicle up to its fair market
4value, as determined in the customary market for the sale of that
5vehicle, provided that the rental company establishes by clear and
6convincing evidence that the renter or the authorized driver failed
7to exercise ordinary care while in possession of the vehicle. In
8addition, the renter shall be presumed to have no liability for any
9loss due to theft if (A) an authorized driver has possession of the
10ignition key furnished by the rental company or an authorized
11driver establishes that the ignition key furnished by the rental
12company was not in the vehicle at the time of the theft, and (B) an
13authorized driver files an official report of the theft with the police
14or other law enforcement agency within 24 hours of learning of
15the theft and reasonably cooperates with the rental company and
16the police or other law enforcement agency in providing
17information concerning the theft. The presumption set forth in this
18paragraph is a presumption affecting the burden of proof which
19the rental company may rebut by establishing that an authorized
20driver committed, or aided and abetted the commission of, the
21theft.

22(3) Physical damage to the rented vehicle up to its fair market
23value, as determined in the customary market for the sale of that
24vehicle, resulting from vandalism occurring after, or in connection
25with, the theft of the rented vehicle. However, the renter shall have
26no liability for any damage due to vandalism if the renter would
27have no liability for theft pursuant to paragraph (2).

28(4) Physical damage to the rented vehicle up to a total of five
29hundred dollars ($500) resulting from vandalism unrelated to the
30theft of the rented vehicle.

31(5) Actual charges for towing, storage, and impound fees paid
32by the rental company if the renter is liable for damage or loss.

33(6) An administrative charge, which shall include the cost of
34 appraisal and all other costs and expenses incident to the damage,
35loss, repair, or replacement of the rented vehicle.

36(c) The total amount of the renter’s liability to the rental
37company resulting from damage to the rented vehicle shall not
38exceed the sum of the following:

39(1) The estimated cost of parts which the rental company would
40have to pay to replace damaged vehicle parts. All discounts and
P6    1price reductions or adjustments that are or will be received by the
2rental company shall be subtracted from the estimate to the extent
3not already incorporated in the estimate, or otherwise promptly
4credited or refunded to the renter.

5(2) The estimated cost of labor to replace damaged vehicle parts,
6which shall not exceed the product of (A) the rate for labor usually
7paid by the rental company to replace vehicle parts of the type that
8were damaged and (B) the estimated time for replacement. All
9discounts and price reductions or adjustments that are or will be
10received by the rental company shall be subtracted from the
11estimate to the extent not already incorporated in the estimate, or
12otherwise promptly credited or refunded to the renter.

13(3) (A) The estimated cost of labor to repair damaged vehicle
14parts, which shall not exceed the lesser of the following:

15(i) The product of the rate for labor usually paid by the rental
16company to repair vehicle parts of the type that were damaged and
17the estimated time for repair.

18(ii) The sum of the estimated labor and parts costs determined
19under paragraphs (1) and (2) to replace the same vehicle parts.

20(B) All discounts and price reductions or adjustments that are
21or will be received by the rental company shall be subtracted from
22the estimate to the extent not already incorporated in the estimate,
23or otherwise promptly credited or refunded to the renter.

24(4) For the purpose of converting the estimated time for repair
25into the same units of time in which the rental rate is expressed, a
26day shall be deemed to consist of eight hours.

27(5) Actual charges for towing, storage, and impound fees paid
28by the rental company.

29(6) The administrative charge described in paragraph (6) of
30subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
31estimated cost for parts and labor is more than one hundred dollars
32($100) up to and including five hundred dollars ($500), (B) one
33hundred dollars ($100) if the total estimated cost for parts and
34labor exceeds five hundred dollars ($500) up to and including one
35thousand five hundred dollars ($1,500), and (C) one hundred fifty
36dollars ($150) if the total estimated cost for parts and labor exceeds
37one thousand five hundred dollars ($1,500). An administrative
38charge shall not be imposed if the total estimated cost of parts and
39labor is one hundred dollars ($100) or less.

P7    1(d) (1) The total amount of an authorized driver’s liability to
2the rental company, if any, for damage occurring during the
3authorized driver’s operation of the rented vehicle shall not exceed
4the amount of the renter’s liability under subdivision (c).

5(2) A rental company shall not recover from the renter or other
6authorized driver an amount exceeding the renter’s liability under
7subdivision (c).

8(3) A claim against a renter resulting from damage or loss,
9excluding loss of use, to a rental vehicle shall be reasonably and
10rationally related to the actual loss incurred. A rental company
11shall mitigate damages where possible and shall not assert or collect
12a claim for physical damage which exceeds the actual costs of the
13repairs performed or the estimated cost of repairs, if the rental
14company chooses not to repair the vehicle, including all discounts
15and price reductions. However, if the vehicle is a total loss vehicle,
16the claim shall not exceed the total loss vehicle value established
17in accordance with procedures that are customarily used by
18insurance companies when paying claims on total loss vehicles,
19less the proceeds from salvaging the vehicle, if those proceeds are
20retained by the rental company.

21(4) If insurance coverage exists under the renter’s applicable
22personal or business insurance policy and the coverage is confirmed
23during regular business hours, the renter may require that the rental
24company submit any claims to the renter’s applicable personal or
25business insurance carrier. The rental company shall not make any
26written or oral representations that it will not present claims or
27negotiate with the renter’s insurance carrier. For purposes of this
28paragraph, confirmation of coverage includes telephone
29confirmation from insurance company representatives during
30regular business hours. Upon request of the renter and after
31confirmation of coverage, the amount of claim shall be resolved
32between the insurance carrier and the rental company. The renter
33shall remain responsible for payment to the rental car company
34for any loss sustained that the renter’s applicable personal or
35business insurance policy does not cover.

36(5) A rental company shall not recover from the renter or other
37authorized driver for an item described in subdivision (b) to the
38extent the rental company obtains recovery from another person.

39(6) This section applies only to the maximum liability of a renter
40or other authorized driver to the rental company resulting from
P8    1damage to the rented vehicle and not to the liability of another
2person.

3(e) (1) Except as provided in subdivision (f), a damage waiver
4shall provide or, if not expressly stated in writing, shall be deemed
5to provide that the renter has no liability for a damage, loss, loss
6of use, or a cost or expense incident thereto.

7(2) Except as provided in subdivision (f), every limitation,
8exception, or exclusion to a damage waiver is void and
9unenforceable.

10(f) A rental company may provide in the rental contract that a
11damage waiver does not apply under any of the following
12 circumstances:

13(1) Damage or loss results from an authorized driver’s (A)
14intentional, willful, wanton, or reckless conduct, (B) operation of
15the vehicle under the influence of drugs or alcohol in violation of
16Section 23152 of the Vehicle Code, (C) towing or pushing
17anything, or (D) operation of the vehicle on an unpaved road if
18the damage or loss is a direct result of the road or driving
19conditions.

20(2) Damage or loss occurs while the vehicle is (A) used for
21commercial hire, (B) used in connection with conduct that could
22be properly charged as a felony, (C) involved in a speed test or
23contest or in driver training activity, (D) operated by a person other
24than an authorized driver, or (E) operated outside the United States.

25(3) An authorized driver who has (A) provided fraudulent
26information to the rental company, or (B) provided false
27information and the rental company would not have rented the
28vehicle if it had instead received true information.

29(g) (1) A rental company that offers or provides a damage
30waiver for any consideration in addition to the rental rate shall
31clearly and conspicuously disclose the following information in
32the rental contract or holder in which the contract is placed and,
33also, in signs posted at the place, such as the counter, where the
34renter signs the rental contract, and, for renters who are enrolled
35in the rental company’s membership program, in a sign that shall
36be posted in a location clearly visible to those renters as they enter
37the location where their reserved rental cars are parked or near the
38exit of the bus or other conveyance that transports the enrollee to
39a reserved car: (A) the nature of the renter’s liability, such as
40liability for all collision damage regardless of cause, (B) the extent
P9    1of the renter’s liability, such as liability for damage or loss up to
2a specified amount, (C) the renter’s personal insurance policy or
3the credit card used to pay for the car rental transaction may
4provide coverage for all or a portion of the renter’s potential
5liability, (D) the renter should consult with his or her insurer to
6determine the scope of insurance coverage, including the amount
7of the deductible, if any, for which the renter is obligated, (E) the
8renter may purchase an optional damage waiver to cover all
9liability, subject to whatever exceptions the rental company
10expressly lists that are permitted under subdivision (f), and (F) the
11range of charges for the damage waiver.

12(2) In addition to the requirements of paragraph (1), a rental
13company that offers or provides a damage waiver shall orally
14disclose to all renters, except those who are participants in the
15rental company’s membership program, that the damage waiver
16may be duplicative of coverage that the customer maintains under
17his or her own policy of motor vehicle insurance. The renter’s
18receipt of the oral disclosure shall be demonstrated through the
19renter’s acknowledging receipt of the oral disclosure near that part
20of the contract where the renter indicates, by the renter’s own
21initials, his or her acceptance or declination of the damage waiver.
22Adjacent to that same part, the contract also shall state that the
23damage waiver is optional. Further, the contract for these renters
24shall include a clear and conspicuous written disclosure that the
25damage waiver may be duplicative of coverage that the customer
26maintains under his or her own policy of motor vehicle insurance.

27(3) The following is an example, for purposes of illustration
28and not limitation, of a notice fulfilling the requirements of
29paragraph (1) for a rental company that imposes liability on the
30renter for collision damage to the full value of the vehicle:
31

32“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
33AND OPTIONAL DAMAGE WAIVER
34

35You are responsible for all collision damage to the rented vehicle
36even if someone else caused it or the cause is unknown. You are
37responsible for the cost of repair up to the value of the vehicle,
38and towing, storage, and impound fees.

39Your own insurance, or the issuer of the credit card you use to
40pay for the car rental transaction, may cover all or part of your
P10   1financial responsibility for the rented vehicle. You should check
2with your insurance company, or credit card issuer, to find out
3about your coverage and the amount of the deductible, if any, for
4which you may be liable.

5Further, if you use a credit card that provides coverage for your
6potential liability, you should check with the issuer to determine
7if you must first exhaust the coverage limits of your own insurance
8before the credit card coverage applies.

9The rental company will not hold you responsible if you buy a
10damage waiver. But a damage waiver will not protect you if (list
11exceptions).”

12(A) When the above notice is printed in the rental contract or
13holder in which the contract is placed, the following shall be printed
14immediately following the notice:

15“The cost of an optional damage waiver is $____ for every (day
16or week).”

17(B) When the above notice appears on a sign, the following
18shall appear immediately adjacent to the notice:

19“The cost of an optional damage waiver is $____ to $____ for
20every (day or week), depending upon the vehicle rented.”

21(h) Notwithstanding any other provision of law, a rental
22company may sell a damage waiver subject to the following rate
23limitations for each full or partial 24-hour rental day for the damage
24waiver.

25(1) For rental vehicles that the rental company designates as an
26“economy car,” “subcompact car,” “compact car,” or another term
27having similar meaning when offered for rental, or another vehicle
28having a manufacturer’s suggested retail price of nineteen thousand
29dollars ($19,000) or less, the rate shall not exceed nine dollars
30($9).

31(2) For rental vehicles that have a manufacturer’s suggested
32retail price from nineteen thousand one dollars ($19,001) to
33thirty-four thousand nine hundred ninety-nine dollars ($34,999),
34inclusive, and that are also either vehicles of next year’s model,
35or not older than the previous year’s model, the rate shall not
36exceed fifteen dollars ($15). For those rental vehicles older than
37the previous year’s model-year, the rate shall not exceed nine
38dollars ($9).

39(i) The manufacturer’s suggested retail prices described in
40subdivision (h) shall be adjusted annually to reflect changes from
P11   1the previous year in the Consumer Price Index. For the purposes
2of this section, “Consumer Price Index” means the United States
3Consumer Price Index for All Urban Consumers, for all items.

4(j) A rental company that disseminates in this state an
5advertisement containing a rental rate shall include in that
6advertisement a clearly readable statement of the charge for a
7damage waiver and a statement that a damage waiver is optional.

8(k) (1) A rental company shall not require the purchase of a
9damage waiver, optional insurance, or another optional good or
10 service.

11(2) A rental company shall not engage in any unfair, deceptive,
12or coercive conduct to induce a renter to purchase the damage
13waiver, optional insurance, or another optional good or service,
14including conduct such as, but not limited to, refusing to honor
15the renter’s reservation, limiting the availability of vehicles,
16requiring a deposit, or debiting or blocking the renter’s credit card
17account for a sum equivalent to a deposit if the renter declines to
18purchase the damage waiver, optional insurance, or another
19optional good or service.

20(l) (1) In the absence of express permission granted by the
21renter subsequent to damage to, or loss of, the vehicle, a rental
22company shall not seek to recover any portion of a claim arising
23out of damage to, or loss of, the rented vehicle by processing a
24credit card charge or causing a debit or block to be placed on the
25renter’s credit card account.

26(2) A rental company shall not engage in any unfair, deceptive,
27or coercive tactics in attempting to recover or in recovering on any
28claim arising out of damage to, or loss of, the rented vehicle.

29(m) (1) A customer facility charge may be collected by a rental
30company under the following circumstances:

31(A) Collection of the fee by the rental company is required by
32an airport operated by a city, a county, a city and county, a joint
33powers authority, a special district, or the San Diego County
34Regional Airport Authority formed pursuant to Division 17
35(commencing with Section 170000) of the Public Utilities Code.

36(B) The fee is calculated on a per contract basis or as provided
37in paragraph (2).

38(C) The fee is a user fee, not a tax imposed upon real property
39or an incidence of property ownership under Article XIII D of the
40California Constitution.

P12   1(D) Except as otherwise provided in subparagraph (E), the fee
2shall be ten dollars ($10) per contract or the amount provided in
3paragraph (2).

4(E) The fee for a consolidated rental car facility shall be
5collected only from customers of on-airport rental car companies.
6If the fee imposed by the airport is for both a consolidated rental
7car facility and a common-use transportation system, the fee
8collected from customers of on-airport rental car companies shall
9be ten dollars ($10) or the amount provided in paragraph (2), but
10the fee imposed on customers of off-airport rental car companies
11who are transported on the common-use transportation system is
12proportionate to the costs of the common-use transportation system
13only. The fee is uniformly applied to each class of on-airport or
14off-airport customers, provided that the airport requires off-airport
15customers to use the common-use transportation system. For
16purposes of this subparagraph, “on-airport rental car company”
17means a rental company operating under an airport property lease
18or an airport concession or license agreement whose customers
19use or will use the consolidated rental car facility and the collection
20of the fee as to those customers is consistent with subparagraph
21(C).

22(F) Revenues collected from the fee do not exceed the reasonable
23costs of financing, designing, and constructing the facility and
24financing, designing, constructing, and operating any common-use
25transportation system, or acquiring vehicles for use in that system,
26and shall not be used for any other purpose.

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

28(H) This paragraph does not apply to fees which are governed
29by Section 50474.1 of the Government Code or Section 57.5 of
30the San Diego Unified Port District Act.

31(I) For any airport seeking to require rental car companies to
32collect an alternative customer facility charge pursuant to paragraph
33(2), the following provisions apply:

34(i) Notwithstanding Section 10231.5 of the Government Code,
35the airport shall provide reports on an annual basis to the Senate
36and Assembly Committees on Judiciary detailing all of the
37following:

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

39(II) How the funds are being spent.

P13   1(III) The amount of and reason for any changes in the airport’s
2budget or financial needs for the facility or common-use
3transportation system.

4(IV) Whether airport concession fees authorized by Section
51936.01 have increased since the prior report, if any.

6(ii) (I) The airport shall complete the audit required by
7subparagraph (B) of paragraph (4) of subdivision (a) prior tobegin insert theend insert
8 initial collection of the customer facility charge. Notwithstanding
9Section 10231.5 of the Government Code, copies of the audit shall
10be provided to the Assembly and Senate Committees on Judiciary,
11the Assembly Committee on Transportation, and the Senate
12Committee on Transportation and Housing and shall be posted on
13the airport’s Internet Web site.

14(II) Prior to any increase pursuant to paragraph (2), the airport
15shall update the information provided in the initial collection audit
16pursuant to subclause (I). Notwithstanding Section 10231.5 of the
17Government Code, copies of the updated audit shall be provided
18to the Assembly and Senate Committees on Judiciary, the
19Assembly Committee on Transportation, and the Senate Committee
20on Transportation and Housing and shall be posted on the airport’s
21Internet Web site.

22(III) An audit shall be completed every three years after initial
23collection only if the customer facility charge is collected for the
24purpose of operating a common-use transportation system or to
25acquire vehicles for use inbegin delete such aend deletebegin insert theend insert system pursuant to clause
26(ii) of subparagraph (A) of paragraph (4) of subdivision (a). A
27regularly conducted audit of airport finances that includes the
28customer facility charge information, that satisfies the requirements
29of subparagraph (B) of paragraph (4) of subdivision (a), and is
30produced in accordance with the generally accepted accounting
31principles of the Government Accounting Standards Board, shall
32satisfy the requirements of this subclause. This obligation shall
33continue until the fee authorization becomes inoperative pursuant
34to subparagraph (C) of paragraph (4) of subdivision (a).
35Notwithstanding Section 10231.5 of the Government Code, the
36information reported pursuant to this subclause shall be compiled
37into one document, shall be provided to the Assembly and Senate
38Committees on Judiciary, the Assembly Committee on
39Transportation, and the Senate Committee on Transportation and
40Housing and shall be posted on the airport’s Internet Web site
P14   1accessible to the public. The information reported shall be
2contained within one easily accessible page contained within the
3airport’s Internet Web site.

4(IV) This section shall not be construed to require an airport to
5audit a common-use transportation system not financed by a
6customer facility charge and used for the purposes permitted
7pursuant to clause (ii) of subparagraph (A) of paragraph (4) of
8subdivision (a).

9(V) The airport shall post on the airport’s Internet Web site
10copies of the completed audits required by this clause for a period
11of six years following the audit’s completion.

12(iii) Use of the bonds shall be limited to construction and design
13of the consolidated rental car facility, terminal modifications, and
14operating costs of the common-use transportation system, as
15specified in paragraph (4) of subdivision (a).

16(2) Any airport may require rental car companies to collect an
17alternative customer facility charge under the following conditions:

18(A) The airport first conducts a publicly noticed hearing pursuant
19 to the Ralph M. Brown Act (Chapter 9 (commencing with Section
2054950) of Part 1 of Division 2 of Title 5 of the Government Code)
21to review the costs of financing the design and construction of a
22consolidated rental car facility and the design, construction, and
23operation of any common-use transportation system in which all
24of the following occur:

25(i) The airport establishes the amount of revenue necessary to
26finance the reasonable cost to design and construct a consolidated
27rental car facility and to design, construct, and operate any
28common-use transportation system, or acquire vehicles for use in
29that system, based on evidence presented during the hearing.

30(ii) The airport finds, based on evidence presented during the
31hearing, that the fee authorized in paragraph (1) will not generate
32sufficient revenue to finance the reasonable costs to design and
33construct a consolidated rental car facility and to design, construct,
34and operate any common-use transportation system, or acquire
35vehicles for use in that system.

36(iii) The airport finds that the reasonable cost of the project
37requires the additional amount of revenue that would be generated
38by the proposed daily rate, including any rate increase, authorized
39pursuant to this paragraph.

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

P15   1(I) Steps it has taken to limit costs.

2(II) Other potential alternatives for meeting its revenue needs
3other than the collection of the fee.

4(III) The extent to which rental car companies or other
5businesses or individuals using the facility or common-use
6transportation system will pay for the costs associated with these
7facilities and systems other than the fee from rental customers.

8(B) The airport may not require the fee authorized in this
9paragraph to be collected at any time that the fee authorized in
10paragraph (1) of this subdivision is being collected.

11(C) Pursuant to the procedure set forth in this subdivision, the
12fee may be collected at a rate charged on a per-day basis subject
13to the following conditions:

14(i) Commencing January 1, 2011, the amount of the fee may
15not exceed six dollars ($6) per day.

16(ii) Commencing January 1, 2014, the amount of the fee may
17not exceed seven dollars and fifty cents ($7.50) per day.

18(iii) Commencing January 1, 2017, and thereafter, the amount
19of the fee may not exceed nine dollars ($9) per day.

20(iv) At no time shall the fee authorized in this paragraph be
21collected from any customer for more than five days for each
22individual rental car contract.

23(v) An airport subject to this paragraph shall initiate the process
24for obtaining the authority to require or increase the alternative
25fee no later than January 1, 2018. Any airport that obtains the
26authority to require or increase an alternative fee shall be authorized
27to continue collecting that fee until the fee authorization becomes
28inoperative pursuant to subparagraph (C) of paragraph (4) of
29subdivision (a).

30(3) Notwithstanding any other provision of law, including, but
31not limited to, Part 1 (commencing with Section 6001) to Part 1.7
32(commencing with Section 7280), inclusive, of Division 2 of the
33Revenue and Taxation Code, the fees collected pursuant to this
34section, or another law whereby a local agency operating an airport
35requires a rental car company to collect a facility financing fee
36from its customers, are not subject to sales, use, or transaction
37taxes.

38(n) (1) A rental company shall only advertise, quote, and charge
39a rental rate that includes the entire amount except taxes, a
40customer facility charge, if any, and a mileage charge, if any, that
P16   1a renter must pay to hire or lease the vehicle for the period of time
2to which the rental rate applies. A rental company shall not charge
3in addition to the rental rate, taxes, a customer facility charge, if
4any, and a mileage charge, if any, any fee that is required to be
5paid by the renter as a condition of hiring or leasing the vehicle,
6including, but not limited to, required fuel or airport surcharges
7other than customer facility charges, nor a fee for transporting the
8renter to the location where the rented vehicle will be delivered to
9the renter.

10(2) In addition to the rental rate, taxes, customer facility charges,
11if any, and mileage charges, if any, a rental company may charge
12for an item or service provided in connection with a particular
13rental transaction if the renter could have avoided incurring the
14charge by choosing not to obtain or utilize the optional item or
15service. Items and services for which the rental company may
16impose an additional charge include, but are not limited to, optional
17insurance and accessories requested by the renter, service charges
18incident to the renter’s optional return of the vehicle to a location
19other than the location where the vehicle was hired or leased, and
20charges for refueling the vehicle at the conclusion of the rental
21transaction in the event the renter did not return the vehicle with
22as much fuel as was in the fuel tank at the beginning of the rental.
23A rental company also may impose an additional charge based on
24reasonable age criteria established by the rental company.

25(3) A rental company shall not charge a fee for authorized
26drivers in addition to the rental charge for an individual renter.

27(4) If a rental company states a rental rate in print advertisement
28or in a telephonic, in-person, or computer-transmitted quotation,
29the rental company shall disclose clearly in that advertisement or
30quotation the terms of mileage conditions relating to the advertised
31or quoted rental rate, including, but not limited to, to the extent
32applicable, the amount of mileage and gas charges, the number of
33miles for which no charges will be imposed, and a description of
34geographic driving limitations within the United States and Canada.

35(5) (A) When a rental rate is stated in an advertisement,
36quotation, or reservation in connection with a car rental at an airport
37where a customer facility charge is imposed, the rental company
38shall disclose clearly the existence and amount of the customer
39facility charge. For purposes of this subparagraph, advertisements
40include radio, television, other electronic media, and print
P17   1advertisements. For purposes of this subparagraph, quotations and
2reservations include those that are telephonic, in-person, and
3computer-transmitted. If the rate advertisement is intended to
4include transactions at more than one airport imposing a customer
5facility charge, a range of fees may be stated in the advertisement.
6However, all rate advertisements that include car rentals at airport
7destinations shall clearly and conspicuously include a toll-free
8telephone number whereby a customer can be told the specific
9amount of the customer facility charge to which the customer will
10be obligated.

11(B) If a person or entity other than a rental car company,
12including a passenger carrier or a seller of travel services, advertises
13or quotes a rate for a car rental at an airport where a customer
14facility charge is imposed, that person or entity shall, provided
15that he, she, or it is provided with information about the existence
16and amount of the fee, to the extent not specifically prohibited by
17federal law, clearly disclose the existence and amount of the fee
18in any telephonic, in-person, or computer-transmitted quotation at
19the time of making an initial quotation of a rental rate and at the
20time of making a reservation of a rental car. If a rental car company
21provides the person or entity with rate and customer facility charge
22information, the rental car company is not responsible for the
23failure of that person or entity to comply with this subparagraph
24when quoting or confirming a rate to a third person or entity.

25(6) If a rental company delivers a vehicle to a renter at a location
26other than the location where the rental company normally carries
27on its business, the rental company shall not charge the renter an
28amount for the rental for the period before the delivery of the
29vehicle. If a rental company picks up a rented vehicle from a renter
30at a location other than the location where the rental company
31normally carries on its business, the rental company shall not
32charge the renter an amount for the rental for the period after the
33renter notifies the rental company to pick up the vehicle.

34(o) A rental company shall not use, access, or obtain any
35information relating to the renter’s use of the rental vehicle that
36was obtained using electronic surveillance technology, except in
37the following circumstances:

38(1) (A) When the equipment is used by the rental company
39only for the purpose of locating a stolen, abandoned, or missing
40rental vehicle after one of the following:

P18   1(i) The renter or law enforcement has informed the rental
2company that the vehicle is missing or has been stolen or
3abandoned.

4(ii) The rental vehicle has not been returned following one week
5after the contracted return date, or by one week following the end
6of an extension of that return date.

7(iii) The rental company discovers the rental vehicle has been
8stolen or abandoned, and, if stolen, it shall report the vehicle stolen
9to law enforcement by filing a stolen vehicle report, unless law
10enforcement has already informed the rental company that the
11vehicle is missing or has been stolen or abandoned.

12(B) If electronic surveillance technology is activated pursuant
13to subparagraph (A), a rental company shall maintain a record, in
14either electronic or written form, of information relevant to the
15activation of that technology. That information shall include the
16rental agreement, including the return date, and the date and time
17the electronic surveillance technology was activated. The record
18shall also include, if relevant, a record of written or other
19communication with the renter, including communications
20regarding extensions of the rental, police reports, or other written
21communication with law enforcement officials. The record shall
22be maintained for a period of at least 12 months from the time the
23record is created and shall be made available upon the renter’s
24request. The rental company shall maintain and furnish explanatory
25codes necessary to read the record. A rental company shall not be
26required to maintain a record if electronic surveillance technology
27is activated to recover a rental vehicle that is stolen or missing at
28a time other than during a rental period.

29(2) In response to a specific request from law enforcement
30pursuant to a subpoena or search warrant.

31(3) This subdivision does not prohibit a rental company from
32equipping rental vehicles with GPS-based technology that provides
33navigation assistance to the occupants of the rental vehicle, if the
34rental company does not use, access, or obtain information relating
35to the renter’s use of the rental vehicle that was obtained using
36that technology, except for the purposes of discovering or repairing
37a defect in the technology and the information may then be used
38only for that purpose.

39(4) This subdivision does not prohibit a rental company from
40equipping rental vehicles with electronic surveillance technology
P19   1that allows for the remote locking or unlocking of the vehicle at
2the request of the renter, if the rental company does not use, access,
3or obtain information relating to the renter’s use of the rental
4vehicle that was obtained using that technology, except as
5necessary to lock or unlock the vehicle.

6(5) This subdivision does not prohibit a rental company from
7equipping rental vehicles with electronic surveillance technology
8that allows the company to provide roadside assistance, such as
9towing, flat tire, or fuel services, at the request of the renter, if the
10rental company does not use, access, or obtain information relating
11to the renter’s use of the rental vehicle that was obtained using
12that technology except as necessary to provide the requested
13roadside assistance.

14(6) This subdivision does not prohibit a rental company from
15obtaining, accessing, or using information from electronic
16surveillance technology for the sole purpose of determining the
17date and time the vehicle is returned to the rental company, and
18the total mileage driven and the vehicle fuel level of the returned
19vehicle. This paragraph, however, shall apply only after the renter
20has returned the vehicle to the rental company, and the information
21shall only be used for the purpose described in this paragraph.

22(p) A rental company shall not use electronic surveillance
23technology to track a renter in order to impose fines or surcharges
24relating to the renter’s use of the rental vehicle.

25(q) A renter may bring an action against a rental company for
26the recovery of damages and appropriate equitable relief for a
27violation of this section. The prevailing party shall be entitled to
28recover reasonable attorney’s fees and costs.

29(r) A rental company that brings an action against a renter for
30loss due to theft of the vehicle shall bring the action in the county
31in which the renter resides or, if the renter is not a resident of this
32state, in the jurisdiction in which the renter resides.

33(s) A waiver of any of the provisions of this section shall be
34void and unenforceable as contrary to public policy.

35(t) (1) A rental company’s disclosure requirements shall be
36satisfied for renters who are enrolled in the rental company’s
37membership program if all of the following conditions are met:

38(A) Prior to the enrollee’s first rental as a participant in the
39program, the renter receives, in writing, the following:

P20   1(i) All of the disclosures required by paragraph (1) of subdivision
2(g), including the terms and conditions of the rental agreement
3then in effect.

4(ii) An Internet Web site address, as well as a contact number
5or address, where the enrollee can learn of changes to the rental
6agreement or to the laws of this state governing rental agreements
7since the effective date of the rental company’s most recent
8restatement of the rental agreement and distribution of that
9restatement to its members.

10(B) At the commencement of each rental period, the renter is
11provided, on the rental record or the folder in which it is inserted,
12with a printed notice stating that he or she had either previously
13selected or declined an optional damage waiver and that the renter
14has the right to change preferences.

15(C) At the commencement of each rental period, the rental
16company provides, on the rearview mirror, a hanger on which a
17statement is printed, in a box, in at least 12-point boldface type,
18notifying the renter that the collision damage waiver offered by
19the rental company may be duplicative of coverage that the
20customer maintains under his or her own policy of motor vehicle
21insurance. If it is not feasible to hang the statement from the
22rearview mirror, it shall be hung from the steering wheel.

23The hanger shall provide the renter a box to initial if he or she
24(not his or her employer) has previously accepted or declined the
25collision damage waiver and that he or she now wishes to change
26his or her decision to accept or decline the collision damage waiver,
27as follows:


28“ If I previously accepted the collision damage waiver, I now
29decline it.

30   If I previously declined the collision damage waiver, I now
31accept it.”

32The hanger shall also provide a box for the enrollee to indicate
33whether this change applies to this rental transaction only or to all
34future rental transactions. The hanger shall also notify the renter
35that he or she may make that change, prior to leaving the lot, by
36returning the form to an employee designated to receive the form
37who is present at the lot where the renter takes possession of the
38car, to receive any change in the rental agreement from the renter.

P21   1(2) (A) This subdivision is not effective unless the employee
2designated pursuant to subparagraph (E) of paragraph (8) of
3subdivision (a) is actually present at the required location.

4(B) This subdivision does not relieve the rental company from
5the disclosures required to be made within the text of a contract
6or holder in which the contract is placed; in or on an advertisement
7containing a rental rate; or in a telephonic, in-person, or
8computer-transmitted quotation or reservation.

9(u) The amendments made to this section during the 2001-02
10Regular Session of the Legislature do not affect litigation pending
11on or before January 1, 2003, alleging a violation of Section 22325
12of the Business and Professions Code as it read at the time the
13action was commenced.

begin delete

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

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