AB 1981,
as amended, Brown. Rental vehicles:begin delete contracts.end deletebegin insert contracts: damage waivers.end insert
Existing law governs contracts between vehicle rental companies and their customers andbegin delete defines an authorized driver for purposes of these provisionsend deletebegin insert authorizes a rental company to sell a damage waiver for each full or partial 24-hour rental dayend insert.begin insert Existing law specifies the rate of the damage waiver sold, as determined by criteria that include the rental company designation of the vehicle based upon the manufacturer’s suggested retail price and model year. For purposes of these provisions, existing law requires the manufacturer’s suggested retail price to be adjusted annually to reflect changes from the previous year in
the Consumer Price Index, as defined.end insert
This bill wouldbegin delete make technical, nonsubstantive changes to this definitionend deletebegin insert revise these provisions to authorize a damage waiver to be sold for each category of rental vehicle. The bill would remove the manufacturer’s suggested retail price as one of the criteria for the rate of a damage waiver sold by a rental company. The bill would specify the rate of the damage waiver only for rental vehicles that a rental company designates as an “economy car,” “compact car,” or another term that has a similar meaning to the 2 smallest categories of vehicles described in prescribed standards. The bill would also require, on and after January 1, 2016, this specified rate of the damage waiver to be adjusted annually to reflect changes from the previous
year in the Consumer Price Indexend insert.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1936 of the Civil Code, as amended by
2Section 2 of Chapter 549 of the Statutes of 2013, is amended to
3read:
(a) For the purpose of this section, the following
5definitions shall apply:
6(1) “Rental company” means a person or entity in the business
7of renting passenger vehicles to the public.
8(2) “Renter” means any person in a manner obligated under a
9contract for the lease or hire of a passenger vehicle from a rental
10company for a period of less than 30 days.
11(3) “Authorized driver” means all of the following:
12(A) The renter.
13(B) The renter’s spouse if that person is a licensed driver and
14satisfies the rental company’s
minimum age requirement.
15(C) The renter’s employer or coworker if he or she is engaged
16in business activity with the renter, is a licensed driver, and satisfies
17the rental company’s minimum age requirement.
18(D) A person expressly listed by the rental company on that
19renter’s contract as an authorized driver.
20(4) (A) “Customer facility charge” means any fee, including
21an alternative fee, required by an airport to be collected by a rental
22company from a renter for any of the following purposes:
23(i) To finance, design, and construct consolidated airport car
24rental facilities.
25(ii) To finance, design, construct, and operate common-use
26transportation systems that move
passengers between airport
27terminals and those consolidated car rental facilities, and acquire
28vehicles for use in that system.
29(iii) To finance, design, and construct terminal modifications
30solely to accommodate and provide customer access to
31common-use transportation systems.
P3 1(B) The aggregate amount to be collected shall not exceed the
2reasonable costs, as determined by an audit, by an independent
3auditor, paid for by the airport, to finance, design, and construct
4those facilities. The auditor shall independently examine and
5substantiate the necessity for and the amount of the customer
6facility charge, including whether the airport’s actual or projected
7costs are supported and justified, any steps the airport may take to
8limit costs, potential alternatives for meeting the airport’s revenue
9needs other than the collection of the fee, and whether and to what
10extent car rental
companies or other businesses or individuals using
11the facility or common-use transportation system may pay for the
12costs associated with these facilities and systems other than the
13fee from rental customers, or whether the airport did not comply
14with any provision of this subparagraph. Copies of the audit shall
15be provided to the Assembly and Senate Committees on Judiciary,
16the Assembly Committee on Transportation, and the Senate
17Committee on Transportation and Housing and shall be posted on
18the airport’s Internet Web site. In the case of a customer facility
19charge for a common-use transportation system, the audit also
20shall consider the reasonable costs of providing the transit system
21or busing network pursuant to clause (ii) of subparagraph (A). Any
22audit required by this subparagraph may be included as a part of
23an audit of an airport’s finances. Notwithstanding clause (iii) of
24subparagraph (A), the fees designated as a customer facility charge
25shall not be used to pay for terminal expansion, gate
expansion,
26runway expansion, changes in hours of operation, or changes in
27the number of flights arriving or departing from the airport.
28(C) Except as provided in subparagraph (D), the authorization
29given pursuant to this section for an airport to impose a customer
30facility charge shall become inoperative when the bonds used for
31financing are paid.
32(D) If a bond or other form of indebtedness is not used for
33financing, or the bond or other form of indebtedness used for
34financing has been paid, the Oakland International Airport may
35require the collection of a customer facility charge for a period of
36up to 10 years from the imposition of the charge for the purposes
37allowed by, and subject to the conditions imposed by, this section.
38(5) “Damage waiver” means a rental company’s agreement not
39to hold a renter liable for all
or any portion of any damage or loss
P4 1related to the rented vehicle, any loss of use of the rented vehicle,
2or any storage, impound, towing, or administrative charges.
3(6) “Electronic surveillance technology” means a technological
4method or system used to observe, monitor, or collect information,
5including telematics, Global Positioning System (GPS), wireless
6technology, or location-based technologies. “Electronic
7surveillance technology” does not include event data recorders
8(EDR), sensing and diagnostic modules (SDM), or other systems
9that are used either:
10(A) For the purpose of identifying, diagnosing, or monitoring
11functions related to the potential need to repair, service, or perform
12maintenance on the rental vehicle.
13(B) As part of the vehicle’s airbag sensing and diagnostic system
14in order to capture safety
systems-related data for retrieval after a
15crash has occurred or in the event that the collision sensors are
16activated to prepare the decisionmaking computer to make the
17determination to deploy or not to deploy the airbag.
18(7) “Estimated time for replacement” means the number of hours
19of labor, or fraction thereof, needed to replace damaged vehicle
20parts as set forth in collision damage estimating guides generally
21used in the vehicle repair business and commonly known as “crash
22books.”
23(8) “Estimated time for repair” means a good faith estimate of
24the reasonable number of hours of labor, or fraction thereof, needed
25to repair damaged vehicle parts.
26(9) “Membership program” means a service offered by a rental
27company that permits customers to bypass the rental counter and
28go directly to the car previously reserved. A
membership program
29shall meet all of the following requirements:
30(A) The renter initiates enrollment by completing an application
31on which the renter can specify a preference for type of vehicle
32and acceptance or declination of optional services.
33(B) The rental company fully discloses, prior to the enrollee’s
34first rental as a participant in the program, all terms and conditions
35of the rental agreement as well as all required disclosures.
36(C) The renter may terminate enrollment at any time.
37(D) The rental company fully explains to the renter that
38designated preferences, as well as acceptance or declination of
39optional services, may be changed by the renter at any time for
40the next and future rentals.
P5 1(E) An employee designated to receive the form specified in
2subparagraph (C) of paragraph (1) of subdivision (t) is present at
3the lot where the renter takes possession of the car, to receive any
4change in the rental agreement from the renter.
5(10) “Passenger vehicle” means a passenger vehicle as defined
6in Section 465 of the Vehicle Code.
7(b) Except as limited by subdivision (c), a rental company and
8a renter may agree that the renter will be responsible for no more
9than all of the following:
10(1) Physical or mechanical damage to the rented vehicle up to
11its fair market value, as determined in the customary market for
12the sale of that vehicle, resulting from collision regardless of the
13cause of the damage.
14(2) Loss due to theft of the
rented vehicle up to its fair market
15value, as determined in the customary market for the sale of that
16vehicle, provided that the rental company establishes by clear and
17convincing evidence that the renter or the authorized driver failed
18to exercise ordinary care while in possession of the vehicle. In
19addition, the renter shall be presumed to have no liability for any
20loss due to theft if (A) an authorized driver has possession of the
21ignition key furnished by the rental company or an authorized
22driver establishes that the ignition key furnished by the rental
23company was not in the vehicle at the time of the theft, and (B) an
24authorized driver files an official report of the theft with the police
25or other law enforcement agency within 24 hours of learning of
26the theft and reasonably cooperates with the rental company and
27the police or other law enforcement agency in providing
28information concerning the theft. The presumption set forth in this
29paragraph is a presumption affecting the burden of proof which
30the
rental company may rebut by establishing that an authorized
31driver committed, or aided and abetted the commission of, the
32theft.
33(3) Physical damage to the rented vehicle up to its fair market
34value, as determined in the customary market for the sale of that
35vehicle, resulting from vandalism occurring after, or in connection
36with, the theft of the rented vehicle. However, the renter shall have
37no liability for any damage due to vandalism if the renter would
38have no liability for theft pursuant to paragraph (2).
P6 1(4) Physical damage to the rented vehicle up to a total of five
2hundred dollars ($500) resulting from vandalism unrelated to the
3theft of the rented vehicle.
4(5) Actual charges for towing, storage, and impound fees paid
5by the rental company if the renter is liable for damage or loss.
6(6) An administrative charge, which shall include the cost of
7appraisal and all other costs and expenses incident to the damage,
8loss, repair, or replacement of the rented vehicle.
9(c) The total amount of the renter’s liability to the rental
10company resulting from damage to the rented vehicle shall not
11exceed the sum of the following:
12(1) The estimated cost of parts which the rental company would
13have to pay to replace damaged vehicle parts. All discounts and
14price reductions or adjustments that are or will be received by the
15rental company shall be subtracted from the estimate to the extent
16not already incorporated in the estimate, or otherwise promptly
17credited or refunded to the renter.
18(2) The estimated cost of labor to replace damaged vehicle parts,
19
which shall not exceed the product of (A) the rate for labor usually
20paid by the rental company to replace vehicle parts of the type that
21were damaged and (B) the estimated time for replacement. All
22discounts and price reductions or adjustments that are or will be
23received by the rental company shall be subtracted from the
24estimate to the extent not already incorporated in the estimate, or
25otherwise promptly credited or refunded to the renter.
26(3) (A) The estimated cost of labor to repair damaged vehicle
27parts, which shall not exceed the lesser of the following:
28(i) The product of the rate for labor usually paid by the rental
29company to repair vehicle parts of the type that were damaged and
30the estimated time for repair.
31(ii) The sum of the estimated labor and parts costs determined
32under
paragraphs (1) and (2) to replace the same vehicle parts.
33(B) All discounts and price reductions or adjustments that are
34or will be received by the rental company shall be subtracted from
35the estimate to the extent not already incorporated in the estimate,
36or otherwise promptly credited or refunded to the renter.
37(4) For the purpose of converting the estimated time for repair
38into the same units of time in which the rental rate is expressed, a
39day shall be deemed to consist of eight hours.
P7 1(5) Actual charges for towing, storage, and impound fees paid
2by the rental company.
3(6) The administrative charge described in paragraph (6) of
4subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
5estimated cost for parts and labor is more than one
hundred dollars
6($100) up to and including five hundred dollars ($500), (B) one
7hundred dollars ($100) if the total estimated cost for parts and
8labor exceeds five hundred dollars ($500) up to and including one
9thousand five hundred dollars ($1,500), and (C) one hundred fifty
10dollars ($150) if the total estimated cost for parts and labor exceeds
11one thousand five hundred dollars ($1,500). An administrative
12charge shall not be imposed if the total estimated cost of parts and
13labor is one hundred dollars ($100) or less.
14(d) (1) The total amount of an authorized driver’s liability to
15the rental company, if any, for damage occurring during the
16authorized driver’s operation of the rented vehicle shall not exceed
17the amount of the renter’s liability under subdivision (c).
18(2) A rental company shall not recover from the renter or other
19authorized driver an amount
exceeding the renter’s liability under
20subdivision (c).
21(3) A claim against a renter resulting from damage or loss,
22excluding loss of use, to a rental vehicle shall be reasonably and
23rationally related to the actual loss incurred. A rental company
24shall mitigate damages where possible and shall not assert or collect
25a claim for physical damage which exceeds the actual costs of the
26repairs performed or the estimated cost of repairs, if the rental
27company chooses not to repair the vehicle, including all discounts
28and price reductions. However, if the vehicle is a total loss vehicle,
29the claim shall not exceed the total loss vehicle value established
30in accordance with procedures that are customarily used by
31insurance companies when paying claims on total loss vehicles,
32less the proceeds from salvaging the vehicle, if those proceeds are
33retained by the rental company.
34(4) If
insurance coverage exists under the renter’s applicable
35personal or business insurance policy and the coverage is confirmed
36during regular business hours, the renter may require that the rental
37company submit any claims to the renter’s applicable personal or
38business insurance carrier. The rental company shall not make any
39written or oral representations that it will not present claims or
40negotiate with the renter’s insurance carrier. For purposes of this
P8 1paragraph, confirmation of coverage includes telephone
2confirmation from insurance company representatives during
3regular business hours. Upon request of the renter and after
4confirmation of coverage, the amount of claim shall be resolved
5between the insurance carrier and the rental company. The renter
6shall remain responsible for payment to the rental car company
7for any loss sustained that the renter’s applicable personal or
8business insurance policy does not cover.
9(5) A rental company
shall not recover from the renter or other
10authorized driver for an item described in subdivision (b) to the
11extent the rental company obtains recovery from another person.
12(6) This section applies only to the maximum liability of a renter
13or other authorized driver to the rental company resulting from
14damage to the rented vehicle and not to the liability of another
15person.
16(e) (1) Except as provided in subdivision (f), a damage waiver
17shall provide or, if not expressly stated in writing, shall be deemed
18to provide that the renter has no liability for begin deleteaend delete damage, loss, loss
19of use, or a cost or expense incident thereto.
20(2) Except as provided in subdivision (f), every limitation,
21exception, or exclusion to a damage
waiver is void and
22unenforceable.
23(f) A rental company may provide in the rental contract that a
24damage waiver does not apply under any of the following
25circumstances:
26(1) Damage or loss results from an authorized driver’s (A)
27intentional, willful, wanton, or reckless conduct, (B) operation of
28the vehicle under the influence of drugs or alcohol in violation of
29Section 23152 of the Vehicle Code, (C) towing or pushing
30anything, or (D) operation of the vehicle on an unpaved road if
31the damage or loss is a direct result of the road or driving
32conditions.
33(2) Damage or loss occurs while the vehicle is (A) used for
34commercial hire, (B) used in connection with conduct that could
35be properly charged as a felony, (C) involved in a speed test or
36contest or in driver training activity, (D) operated by a person other
37than an
authorized driver, or (E) operated outside the United States.
38(3) An authorized driver who has (A) provided fraudulent
39information to the rental company, or (B) provided false
P9 1information and the rental company would not have rented the
2vehicle if it had instead received true information.
3(g) (1) A rental company that offers or provides a damage
4waiver for any consideration in addition to the rental rate shall
5clearly and conspicuously disclose the following information in
6the rental contract or holder in which the contract is placed and,
7also, in signs posted at the place, such as the counter, where the
8renter signs the rental contract, and, for renters who are enrolled
9in the rental company’s membership program, in a sign that shall
10be posted in a location clearly visible to those renters as they enter
11the location where their reserved rental cars are
parked or near the
12exit of the bus or other conveyance that transports the enrollee to
13a reserved car: (A) the nature of the renter’s liability, such as
14liability for all collision damage regardless of cause, (B) the extent
15of the renter’s liability, such as liability for damage or loss up to
16a specified amount, (C) the renter’s personal insurance policy or
17the credit card used to pay for the car rental transaction may
18provide coverage for all or a portion of the renter’s potential
19liability, (D) the renter should consult with his or her insurer to
20determine the scope of insurance coverage, including the amount
21of the deductible, if any, for which the renter is obligated, (E) the
22renter may purchase an optional damage waiver to cover all
23liability, subject to whatever exceptions the rental company
24expressly lists that are permitted under subdivision (f), and (F) the
25range of charges for the damage waiver.
26(2) In addition to the requirements of
paragraph (1), a rental
27company that offers or provides a damage waiver shall orally
28disclose to all renters, except those who are participants in the
29rental company’s membership program, that the damage waiver
30may be duplicative of coverage that the customer maintains under
31his or her own policy of motor vehicle insurance. The renter’s
32receipt of the oral disclosure shall be demonstrated through the
33renter’s acknowledging receipt of the oral disclosure near that part
34of the contract where the renter indicates, by the renter’s own
35initials, his or her acceptance or declination of the damage waiver.
36Adjacent to that same part, the contract also shall state that the
37damage waiver is optional. Further, the contract for these renters
38shall include a clear and conspicuous written disclosure that the
39damage waiver may be duplicative of coverage that the customer
40maintains under his or her own policy of motor vehicle insurance.
P10 1(3) The following is an
example, for purposes of illustration
2and not limitation, of a notice fulfilling the requirements of
3paragraph (1) for a rental company that imposes liability on the
4renter for collision damage to the full value of the vehicle:
5
9You are responsible for all collision damage to the rented vehicle
10even if someone else caused it or the cause is unknown. You are
11responsible for the cost of repair up to the value of the vehicle,
12and towing, storage, and impound fees.
13Your own insurance, or the issuer of the credit card you use to
14pay for the car rental transaction, may cover all or part of your
15financial responsibility for the rented vehicle. You should check
16with your insurance company, or credit card issuer, to find out
17about your coverage and the amount of the deductible, if any, for
18which you may be
liable.
19Further, if you use a credit card that provides coverage for your
20potential liability, you should check with the issuer to determine
21if you must first exhaust the coverage limits of your own insurance
22before the credit card coverage applies.
23The rental company will not hold you responsible if you buy a
24damage waiver. But a damage waiver will not protect you if (list
25exceptions).”
26(A) When the above notice is printed in the rental contract or
27holder in which the contract is placed, the following shall be printed
28immediately following the notice:
29“The cost of an optional damage waiver is $____ for every (day
30or week).”
31(B) When the above notice appears on a sign, the following
32shall appear immediately adjacent to the notice:
33“The cost of an optional damage waiver is $____ to $____ for
34every (day or week), depending upon the vehicle rented.”
35(h) begin insert(1)end insertbegin insert end insertNotwithstanding any other provision of law, a rental
36company may sell a damage waiverbegin delete subject to the following rate begin insert
for each category of rental vehicleend insert for each full or
37limitationsend delete
38partial 24-hour rental day for the damage waiver.
39(1)
end delete
P11 1begin insert(2)end insert For rental vehicles that the rental company designates as an
2“economy car,”begin delete “subcompact car,”end delete “compact car,” or another term
3having similar meaning begin insertto the two smallest categories of vehicles
4described in the Association of Car Rental Industry Systems
5Standards,end insert when offered for rental,begin delete or another vehicle having a
the rate shall not exceed
6manufacturer’s suggested retail price of nineteen thousand dollars
7($19,000) or less,end deletebegin delete nineend deletebegin insert twelveend insert dollars begin delete($9)end delete
8begin insert ($12) until December 31, 2015end insert.
9(2) For rental vehicles that have a manufacturer’s suggested
10retail price from nineteen thousand one dollars ($19,001) to
11thirty-four thousand nine hundred ninety-nine dollars ($34,999),
12inclusive, and that are also either vehicles of next year’s model,
13or not older than the previous year’s model, the rate shall not
14exceed fifteen dollars
($15). For those rental vehicles older than
15the previous year’s model-year, the rate shall not exceed nine
16dollars ($9).
17(i) begin deleteThe manufacturer’s suggested retail prices end deletebegin insertOn and after
18January 1, 2016, the rate of the damages waiverend insert described in
19begin insert paragraph (2) ofend insert subdivision (h) shall be adjusted annually to
20reflect changes from the previous year in the Consumer Price
21Index. For the purposes of this section, “Consumer Price Index”
22means the United States Consumer Price Index for All Urban
23Consumers, for all items.
24(j) A rental company that disseminates in this state an
25
advertisement containing a rental rate shall include in that
26advertisement a clearly readable statement of the charge for a
27damage waiver and a statement that a damage waiver is optional.
28(k) (1) A rental company shall not require the purchase of a
29damage waiver, optional insurance, or another optional good or
30service.
31(2) A rental company shall not engage in any unfair, deceptive,
32or coercive conduct to induce a renter to purchase the damage
33waiver, optional insurance, or another optional good or service,
34including conduct such as, but not limited to, refusing to honor
35the renter’s reservation, limiting the availability of vehicles,
36requiring a deposit, or debiting or blocking the renter’s credit card
37account for a sum equivalent to a deposit if the renter declines to
38purchase the damage waiver, optional insurance, or another
39optional good or service.
P12 1(l) (1) In the absence of express permission granted by the
2renter subsequent to damage to, or loss of, the vehicle, a rental
3company shall not seek to recover any portion of a claim arising
4out of damage to, or loss of, the rented vehicle by processing a
5credit card charge or causing a debit or block to be placed on the
6renter’s credit card account.
7(2) A rental company shall not engage in any unfair, deceptive,
8or coercive tactics in attempting to recover or in recovering on any
9claim arising out of damage to, or loss of, the rented vehicle.
10(m) (1) A customer facility charge may be collected by a rental
11company under the following circumstances:
12(A) Collection of the fee by the rental company is required by
13an
airport operated by a city, a county, a city and county, a joint
14powers authority, a special district, or the San Diego County
15Regional Airport Authority formed pursuant to Division 17
16(commencing with Section 170000) of the Public Utilities Code.
17(B) The fee is calculated on a per contract basis or as provided
18in paragraph (2).
19(C) The fee is a user fee, not a tax imposed upon real property
20or anbegin delete incidenceend deletebegin insert incidentend insert of property ownership under Article XIII D
21of the California Constitution.
22(D) Except as otherwise provided in subparagraph (E), the fee
23shall be ten dollars ($10) per contract or the amount
provided in
24paragraph (2).
25(E) The fee for a consolidated rental car facility shall be
26collected only from customers of on-airport rental car companies.
27If the fee imposed by the airport is for both a consolidated rental
28car facility and a common-use transportation system, the fee
29collected from customers of on-airport rental car companies shall
30be ten dollars ($10) or the amount provided in paragraph (2), but
31the fee imposed on customers of off-airport rental car companies
32who are transported on the common-use transportation system is
33proportionate to the costs of the common-use transportation system
34only. The fee is uniformly applied to each class of on-airport or
35off-airport customers, provided that the airport requires off-airport
36customers to use the common-use transportation system. For
37purposes of this subparagraph, “on-airport rental car company”
38means a rental company operating under an airport property lease
39or an airport concession
or license agreement whose customers
40use or will use the consolidated rental car facility and the collection
P13 1of the fee as to those customers is consistent with subparagraph
2(C).
3(F) Revenues collected from the fee do not exceed the reasonable
4costs of financing, designing, and constructing the facility and
5financing, designing, constructing, and operating any common-use
6transportation system, or acquiring vehicles for use in that system,
7and shall not be used for any other purpose.
8(G) The fee is separately identified on the rental agreement.
9(H) This paragraph does not apply to fees which are governed
10by Section 50474.1 of the Government Code or Section 57.5 of
11the San Diego Unified Port District Act.
12(I) For any airport seeking to require rental car
companies to
13collect an alternative customer facility charge pursuant to paragraph
14(2), the following provisions apply:
15(i) Notwithstanding Section 10231.5 of the Government Code,
16the airport shall provide reports on an annual basis to the Senate
17and Assembly Committees on Judiciary detailing all of the
18following:
19(I) The total amount of the customer facility charge collected.
20(II) How the funds are being spent.
21(III) The amount of and reason for any changes in the airport’s
22budget or financial needs for the facility or common-use
23transportation system.
24(IV) Whether airport concession fees authorized by Section
251936.01 have increased since the prior report, if any.
26(ii) (I) The airport shall complete the audit required by
27subparagraph (B) of paragraph (4) of subdivision (a) prior to the
28initial collection of the customer facility charge. Notwithstanding
29Section 10231.5 of the Government Code, copies of the audit shall
30be provided to the Assembly and Senate Committees on Judiciary,
31the Assembly Committee on Transportation, and the Senate
32Committee on Transportation and Housing and shall be posted on
33the airport’s Internet Web site.
34(II) Prior to any increase pursuant to paragraph (2), the airport
35shall update the information provided in the initial collection audit
36pursuant to subclause (I). Notwithstanding Section 10231.5 of the
37Government Code, copies of the updated audit shall be provided
38to the Assembly and Senate Committees on Judiciary, the
39Assembly Committee on Transportation, and the Senate Committee
P14 1on
Transportation and Housing and shall be posted on the airport’s
2Internet Web site.
3(III) An audit shall be completed every three years after initial
4collection only if the customer facility charge is collected for the
5purpose of operating a common-use transportation system or to
6acquire vehicles for use in the system pursuant to clause (ii) of
7subparagraph (A) of paragraph (4) of subdivision (a). A regularly
8conducted audit of airport finances that includes the customer
9facility charge information, that satisfies the requirements of
10subparagraph (B) of paragraph (4) of subdivision (a), and is
11produced in accordance with the generally accepted accounting
12principles of the Government Accounting Standards Board, shall
13satisfy the requirements of this subclause. This obligation shall
14continue until the fee authorization becomes inoperative pursuant
15to subparagraph (C) of paragraph (4) of subdivision (a).
16Notwithstanding Section 10231.5 of the
Government Code, the
17information reported pursuant to this subclause shall be compiled
18into one document, shall be provided to the Assembly and Senate
19Committees on Judiciary, the Assembly Committee on
20Transportation, and the Senate Committee on Transportation and
21Housing and shall be posted on the airport’s Internet Web site
22accessible to the public. The information reported shall be
23contained within one easily accessible page contained within the
24airport’s Internet Web site.
25(IV) This section shall not be construed to require an airport to
26audit a common-use transportation system not financed by a
27customer facility charge and used for the purposes permitted
28pursuant to clause (ii) of subparagraph (A) of paragraph (4) of
29subdivision (a).
30(V) The airport shall post on the airport’s Internet Web site
31copies of the completed audits required by this clause for a period
32of six years
following the audit’s completion.
33(iii) Use of the bonds shall be limited to construction and design
34of the consolidated rental car facility, terminal modifications, and
35operating costs of the common-use transportation system, as
36specified in paragraph (4) of subdivision (a).
37(2) Any airport may require rental car companies to collect an
38alternative customer facility charge under the following conditions:
39(A) The airport first conducts a publicly noticed hearing pursuant
40to the Ralph M. Brown Act (Chapter 9 (commencing with Section
P15 154950) of Part 1 of Division 2 of Title 5 of the Government Code)
2to review the costs of financing the design and construction of a
3consolidated rental car facility and the design, construction, and
4operation of any common-use transportation system in which all
5of the following occur:
6(i) The airport establishes the amount of revenue necessary to
7finance the reasonable cost to design and construct a consolidated
8rental car facility and to design, construct, and operate any
9common-use transportation system, or acquire vehicles for use in
10that system, based on evidence presented during the hearing.
11(ii) The airport finds, based on evidence presented during the
12hearing, that the fee authorized in paragraph (1) will not generate
13sufficient revenue to finance the reasonable costs to design and
14construct a consolidated rental car facility and to design, construct,
15and operate any common-use transportation system, or acquire
16vehicles for use in that system.
17(iii) The airport finds that the reasonable cost of the project
18requires the additional amount of revenue that would be generated
19by the proposed daily
rate, including any rate increase, authorized
20pursuant to this paragraph.
21(iv) The airport outlines each of the following:
22(I) Steps it has taken to limit costs.
23(II) Other potential alternatives for meeting its revenue needs
24other than the collection of the fee.
25(III) The extent to which rental car companies or other
26businesses or individuals using the facility or common-use
27transportation system will pay for the costs associated with these
28facilities and systems other than the fee from rental customers.
29(B) The airport may not require the fee authorized in this
30paragraph to be collected at any time that the fee authorized in
31paragraph (1) of this subdivision is being collected.
32(C) Pursuant to the procedure set forth in this subdivision, the
33fee may be collected at a rate charged on a per-day basis subject
34to the following conditions:
35(i) Commencing January 1, 2011, the amount of the fee may
36not exceed six dollars ($6) per day.
37(ii) Commencing January 1, 2014, the amount of the fee may
38not exceed seven dollars and fifty cents ($7.50) per day.
39(iii) Commencing January 1, 2017, and thereafter, the amount
40of the fee may not exceed nine dollars ($9) per day.
P16 1(iv) At no time shall the fee authorized in this paragraph be
2collected from any customer for more than five days for each
3individual rental car contract.
4(v) An airport subject to this paragraph shall initiate the process
5for obtaining the authority to require or increase the alternative
6fee no later than January 1, 2018. Any airport that obtains the
7authority to require or increase an alternative fee shall be authorized
8to continue collecting that fee until the fee authorization becomes
9inoperative pursuant to subparagraph (C) of paragraph (4) of
10subdivision (a).
11(3) Notwithstanding any other provision of law, including, but
12not limited to, Part 1 (commencing with Section 6001) to Part 1.7
13(commencing with Section 7280), inclusive, of Division 2 of the
14Revenue and Taxation Code, the fees collected pursuant to this
15section, or another law whereby a local agency operating an airport
16requires a rental car company to collect a facility financing fee
17from its customers, are not subject to sales, use, or transaction
18taxes.
19(n) (1) A rental company shall only advertise, quote, and charge
20a rental rate that includes the entire amount except taxes, a
21customer facility charge, if any, and a mileage charge, if any, that
22a renter must pay to hire or lease the vehicle for the period of time
23to which the rental rate applies. A rental company shall not charge
24in addition to the rental rate, taxes, a customer facility charge, if
25any, and a mileage charge, if any, any fee that is required to be
26paid by the renter as a condition of hiring or leasing the vehicle,
27including, but not limited to, required fuel or airport surcharges
28other than customer facility charges, nor a fee for transporting the
29renter to the location where the rented vehicle will be delivered to
30the renter.
31(2) In addition to the rental rate, taxes, customer facility charges,
32if any, and mileage charges, if any, a rental company may charge
33for an item or service provided
in connection with a particular
34rental transaction if the renter could have avoided incurring the
35charge by choosing not to obtain or utilize the optional item or
36service. Items and services for which the rental company may
37impose an additional charge include, but are not limited to, optional
38insurance and accessories requested by the renter, service charges
39incident to the renter’s optional return of the vehicle to a location
40other than the location where the vehicle was hired or leased, and
P17 1charges for refueling the vehicle at the conclusion of the rental
2transaction in the event the renter did not return the vehicle with
3as much fuel as was in the fuel tank at the beginning of the rental.
4A rental company also may impose an additional charge based on
5reasonable age criteria established by the rental company.
6(3) A rental company shall not charge a fee for authorized
7drivers in addition to the rental charge for an individual renter.
8(4) If a rental company states a rental rate in print advertisement
9or in a telephonic, in-person, or computer-transmitted quotation,
10the rental company shall disclose clearly in that advertisement or
11quotation the terms of mileage conditions relating to the advertised
12or quoted rental rate, including, but not limited to, to the extent
13applicable, the amount of mileage and gas charges, the number of
14miles for which no charges will be imposed, and a description of
15geographic driving limitations within the United States and Canada.
16(5) (A) When a rental rate is stated in an advertisement,
17quotation, or reservation in connection with a car rental at an airport
18where a customer facility charge is imposed, the rental company
19shall disclose clearly the existence and amount of the customer
20facility charge. For purposes of this subparagraph, advertisements
21include
radio, television, other electronic media, and print
22advertisements. For purposes of this subparagraph, quotations and
23reservations include those that are telephonic, in-person, and
24computer-transmitted. If the rate advertisement is intended to
25include transactions at more than one airport imposing a customer
26facility charge, a range of fees may be stated in the advertisement.
27However, all rate advertisements that include car rentals at airport
28destinations shall clearly and conspicuously include a toll-free
29telephone number whereby a customer can be told the specific
30amount of the customer facility charge to which the customer will
31be obligated.
32(B) If a person or entity other than a rental car company,
33including a passenger carrier or a seller of travel services, advertises
34or quotes a rate for a car rental at an airport where a customer
35facility charge is imposed, that person or entity shall, provided
36that he, she, or it is provided with
information about the existence
37and amount of the fee, to the extent not specifically prohibited by
38federal law, clearly disclose the existence and amount of the fee
39in any telephonic, in-person, or computer-transmitted quotation at
40the time of making an initial quotation of a rental rate and at the
P18 1time of making a reservation of a rental car. If a rental car company
2provides the person or entity with rate and customer facility charge
3information, the rental car company is not responsible for the
4failure of that person or entity to comply with this subparagraph
5when quoting or confirming a rate to a third person or entity.
6(6) If a rental company delivers a vehicle to a renter at a location
7other than the location where the rental company normally carries
8on its business, the rental company shall not charge the renter an
9amount for the rental for the period before the delivery of the
10vehicle. If a rental company picks up a rented vehicle from
a renter
11at a location other than the location where the rental company
12normally carries on its business, the rental company shall not
13charge the renter an amount for the rental for the period after the
14renter notifies the rental company to pick up the vehicle.
15(o) A rental company shall not use, access, or obtain any
16information relating to the renter’s use of the rental vehicle that
17was obtained using electronic surveillance technology, except in
18the following circumstances:
19(1) (A) When the equipment is used by the rental company
20only for the purpose of locating a stolen, abandoned, or missing
21rental vehicle after one of the following:
22(i) The renter or law enforcement has informed the rental
23company that the vehicle is missing or has been stolen or
24abandoned.
25(ii) The rental vehicle has not been returned following one week
26after the contracted return date, or by one week following the end
27of an extension of that return date.
28(iii) The rental company discovers the rental vehicle has been
29stolen or abandoned, and, if stolen, it shall report the vehicle stolen
30to law enforcement by filing a stolen vehicle report, unless law
31enforcement has already informed the rental company that the
32vehicle is missing or has been stolen or abandoned.
33(B) If electronic surveillance technology is activated pursuant
34to subparagraph (A), a rental company shall maintain a record, in
35either electronic or written form, of information relevant to the
36activation of that technology. That information shall include the
37rental agreement, including the return date, and the date and time
38the electronic
surveillance technology was activated. The record
39shall also include, if relevant, a record of written or other
40communication with the renter, including communications
P19 1regarding extensions of the rental, police reports, or other written
2communication with law enforcement officials. The record shall
3be maintained for a period of at least 12 months from the time the
4record is created and shall be made available upon the renter’s
5request. The rental company shall maintain and furnish explanatory
6codes necessary to read the record. A rental company shall not be
7required to maintain a record if electronic surveillance technology
8is activated to recover a rental vehicle that is stolen or missing at
9a time other than during a rental period.
10(2) In response to a specific request from law enforcement
11pursuant to a subpoena or search warrant.
12(3) This subdivision does not prohibit a rental
company from
13equipping rental vehicles with GPS-based technology that provides
14navigation assistance to the occupants of the rental vehicle, if the
15rental company does not use, access, or obtain information relating
16to the renter’s use of the rental vehicle that was obtained using
17that technology, except for the purposes of discovering or repairing
18a defect in the technology and the information may then be used
19only for that purpose.
20(4) This subdivision does not prohibit a rental company from
21equipping rental vehicles with electronic surveillance technology
22that allows for the remote locking or unlocking of the vehicle at
23the request of the renter, if the rental company does not use, access,
24or obtain information relating to the renter’s use of the rental
25vehicle that was obtained using that technology, except as
26necessary to lock or unlock the vehicle.
27(5) This subdivision does
not prohibit a rental company from
28equipping rental vehicles with electronic surveillance technology
29that allows the company to provide roadside assistance, such as
30towing, flat tire, or fuel services, at the request of the renter, if the
31rental company does not use, access, or obtain information relating
32to the renter’s use of the rental vehicle that was obtained using
33that technology except as necessary to provide the requested
34roadside assistance.
35(6) This subdivision does not prohibit a rental company from
36obtaining, accessing, or using information from electronic
37surveillance technology for the sole purpose of determining the
38date and time the vehicle is returned to the rental company, and
39the total mileage driven and the vehicle fuel level of the returned
40vehicle. This paragraph, however, shall apply only after the renter
P20 1has returned the vehicle to the rental company, and the information
2shall only be used for the purpose described in
this paragraph.
3(p) A rental company shall not use electronic surveillance
4technology to track a renter in order to impose fines or surcharges
5relating to the renter’s use of the rental vehicle.
6(q) A renter may bring an action against a rental company for
7the recovery of damages and appropriate equitable relief for a
8violation of this section. The prevailing party shall be entitled to
9recover reasonable attorney’s fees and costs.
10(r) A rental company that brings an action against a renter for
11loss due to theft of the vehicle shall bring the action in the county
12in which the renter resides or, if the renter is not a resident of this
13state, in the jurisdiction in which the renter resides.
14(s) A waiver of any of the provisions of this section shall be
15
void and unenforceable as contrary to public policy.
16(t) (1) A rental company’s disclosure requirements shall be
17satisfied for renters who are enrolled in the rental company’s
18membership program if all of the following conditions are met:
19(A) Prior to the enrollee’s first rental as a participant in the
20program, the renter receives, in writing, the following:
21(i) All of the disclosures required by paragraph (1) of subdivision
22(g), including the terms and conditions of the rental agreement
23then in effect.
24(ii) An Internet Web site address, as well as a contact number
25or address, where the enrollee can learn of changes to the rental
26agreement or to the laws of this state governing rental agreements
27since the effective date of the
rental company’s most recent
28restatement of the rental agreement and distribution of that
29restatement to its members.
30(B) At the commencement of each rental period, the renter is
31provided, on the rental record or the folder in which it is inserted,
32with a printed notice stating that he or she had either previously
33selected or declined an optional damage waiver and that the renter
34has the right to change preferences.
35(C) At the commencement of each rental period, the rental
36company provides, on the rearview mirror, a hanger on which a
37statement is printed, in a box, in at least 12-point boldface type,
38notifying the renter that the collision damage waiver offered by
39the rental company may be duplicative of coverage that the
40customer maintains under his or her own policy of motor vehicle
P21 1insurance. If it is not feasible to hang the statement from the
2rearview mirror, it shall be hung
from the steering wheel.
3The hanger shall provide the renter a box to initial if he or she
4(not his or her employer) has previously accepted or declined the
5collision damage waiver and that he or she now wishes to change
6his or her decision to accept or decline the collision damage waiver,
7as follows:
8“If I previously accepted the collision damage waiver, I now
9decline it.
10If I previously declined the collision damage waiver, I now
11accept it.”
12The hanger shall also provide a box for the enrollee to indicate
13whether this change applies to this rental transaction only or to all
14future rental transactions. The hanger shall also notify the renter
15that he or she may make that change, prior to leaving the lot, by
16returning the form to
an employee designated to receive the form
17who is present at the lot where the renter takes possession of the
18car, to receive any change in the rental agreement from the renter.
19(2) (A) This subdivision is not effective unless the employee
20designated pursuant to subparagraph (E) of paragraph (8) of
21subdivision (a) is actually present at the required location.
22(B) This subdivision does not relieve the rental company from
23the disclosures required to be made within the text of a contract
24or holder in which the contract is placed; in or on an advertisement
25containing a rental rate; or in a telephonic, in-person, or
26computer-transmitted quotation or reservation.
27(u) The amendments made to this section during the 2001-02
28Regular Session of the Legislature do not affect litigation pending
29on or before
January 1, 2003, alleging a violation of Section 22325
30of the Business and Professions Code as it read at the time the
31action was commenced.
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