Amended in Assembly May 13, 2014

Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1981


Introduced by Assembly Member Brown

February 19, 2014


An act to amendbegin delete Sectionend deletebegin insert Sectionsend insert 1936begin insert, 1936.01, 1936.015, and 1936.05end insert of the Civil Code, relating to rental vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 1981, as amended, Brown. Rental vehicles: contracts: damage waivers.

Existing law governs contracts between vehicle rental companies and their customers and authorizes a rental company to sell a damage waiver for each full or partial 24-hour rental day. Existing law specifies thebegin insert maximumend insert rate of the damage waiver sold,begin insert as $9 or $15 per rental day,end insert 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.

This bill wouldbegin delete revise these provisions to authorize a damage waiver to be sold for each category of rental vehicle. The bill wouldend delete 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 wouldbegin delete specifyend deletebegin insert increaseend insert thebegin insert maximumend insert rate of the damage waiverbegin delete onlyend deletebegin insert to $11 per rental dayend insert 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 standardsbegin insert, as of January 1, 2014end insert. The bill would alsobegin delete 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 deletebegin insert increase the maximum rate of the damage waiver to $17 per rental day for rental vehicles in the next 3 body-size categories of vehicles described in these standards and that are also within a specified model year. For rentals that are older than the previous yearend insertbegin insertend insertbegin inserts model, the bill would specify the maximum rate as $11 per rental dayend insert.

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

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

P2    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.

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.

P3    1(ii) To finance, design, construct, and operate common-use
2transportation systems that move passengers between airport
3terminals and those consolidated car rental facilities, and acquire
4vehicles for use in that system.

5(iii) To finance, design, and construct terminal modifications
6solely to accommodate and provide customer access to
7common-use transportation systems.

8(B) The aggregate amount to be collected shall not exceed the
9reasonable costs, as determined by an audit, by an independent
10auditor, paid for by the airport, to finance, design, and construct
11those facilities. The auditor shall independently examine and
12substantiate the necessity for and the amount of the customer
13facility charge, including whether the airport’s actual or projected
14costs are supported and justified, any steps the airport may take to
15limit costs, potential alternatives for meeting the airport’s revenue
16needs other than the collection of the fee, and whether and to what
17extent car rental companies or other businesses or individuals using
18the facility or common-use transportation system may pay for the
19costs associated with these facilities and systems other than the
20fee from rental customers, or whether the airport did not comply
21with any provision of this subparagraph. Copies of the audit shall
22be provided to the Assembly and Senate Committees on Judiciary,
23the Assembly Committee on Transportation, and the Senate
24Committee on Transportation and Housing and shall be posted on
25the airport’s Internet Web site. In the case of a customer facility
26charge for a common-use transportation system, the audit also
27shall consider the reasonable costs of providing the transit system
28or busing network pursuant to clause (ii) of subparagraph (A). Any
29audit required by this subparagraph may be included as a part of
30an audit of an airport’s finances. Notwithstanding clause (iii) of
31subparagraph (A), the fees designated as a customer facility charge
32shall not be used to pay for terminal expansion, gate expansion,
33runway expansion, changes in hours of operation, or changes in
34the number of flights arriving or departing from the airport.

35(C) Except as provided in subparagraph (D), the authorization
36given pursuant to this section for an airport to impose a customer
37facility charge shall become inoperative when the bonds used for
38financing are paid.

39(D) If a bond or other form of indebtedness is not used for
40financing, or the bond or other form of indebtedness used for
P4    1financing has been paid, the Oakland International Airport may
2require the collection of a customer facility charge for a period of
3up to 10 years from the imposition of the charge for the purposes
4allowed by, and subject to the conditions imposed by, this section.

5(5) “Damage waiver” means a rental company’s agreement not
6to hold a renter liable for all or any portion of any damage or loss
7related to the rented vehicle, any loss of use of the rented vehicle,
8or any storage, impound, towing, or administrative charges.

9(6) “Electronic surveillance technology” means a technological
10method or system used to observe, monitor, or collect information,
11including telematics, Global Positioning System (GPS), wireless
12technology, or location-based technologies. “Electronic
13surveillance technology” does not include event data recorders
14(EDR), sensing and diagnostic modules (SDM), or other systems
15that are used either:

16(A) For the purpose of identifying, diagnosing, or monitoring
17functions related to the potential need to repair, service, or perform
18maintenance on the rental vehicle.

19(B) As part of the vehicle’s airbag sensing and diagnostic system
20in order to capture safety systems-related data for retrieval after a
21crash has occurred or in the event that the collision sensors are
22activated to prepare the decisionmaking computer to make the
23determination to deploy or not to deploy the airbag.

24(7) “Estimated time for replacement” means the number of hours
25of labor, or fraction thereof, needed to replace damaged vehicle
26parts as set forth in collision damage estimating guides generally
27used in the vehicle repair business and commonly known as “crash
28books.”

29(8) “Estimated time for repair” means a good faith estimate of
30the reasonable number of hours of labor, or fraction thereof, needed
31to repair damaged vehicle parts.

32(9) “Membership program” means a service offered by a rental
33company that permits customers to bypass the rental counter and
34go directly to the car previously reserved. A membership program
35shall meet all of the following requirements:

36(A) The renter initiates enrollment by completing an application
37on which the renter can specify a preference for type of vehicle
38 and acceptance or declination of optional services.

P5    1(B) The rental company fully discloses, prior to the enrollee’s
2first rental as a participant in the program, all terms and conditions
3of the rental agreement as well as all required disclosures.

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

5(D) The rental company fully explains to the renter that
6designated preferences, as well as acceptance or declination of
7optional services, may be changed by the renter at any time for
8the next and future rentals.

9(E) An employee designated to receive the form specified in
10subparagraph (C) of paragraph (1) of subdivision (t) is present at
11the lot where the renter takes possession of the car, to receive any
12change in the rental agreement from the renter.

13(10) “Passenger vehicle” means a passenger vehicle as defined
14in Section 465 of the Vehicle Code.

15(b) Except as limited by subdivision (c), a rental company and
16a renter may agree that the renter will be responsible for no more
17than all of the following:

18(1) Physical or mechanical damage to the rented vehicle up to
19its fair market value, as determined in the customary market for
20the sale of that vehicle, resulting from collision regardless of the
21cause of the damage.

22(2) Loss due to theft of the rented vehicle up to its fair market
23value, as determined in the customary market for the sale of that
24vehicle, provided that the rental company establishes by clear and
25convincing evidence that the renter or the authorized driver failed
26to exercise ordinary care while in possession of the vehicle. In
27addition, the renter shall be presumed to have no liability for any
28loss due to theft if (A) an authorized driver has possession of the
29ignition key furnished by the rental company or an authorized
30driver establishes that the ignition key furnished by the rental
31company was not in the vehicle at the time of the theft, and (B) an
32authorized driver files an official report of the theft with the police
33or other law enforcement agency within 24 hours of learning of
34the theft and reasonably cooperates with the rental company and
35the police or other law enforcement agency in providing
36information concerning the theft. The presumption set forth in this
37paragraph is a presumption affecting the burden of proof which
38the rental company may rebut by establishing that an authorized
39driver committed, or aided and abetted the commission of, the
40theft.

P6    1(3) Physical damage to the rented vehicle up to its fair market
2value, as determined in the customary market for the sale of that
3vehicle, resulting from vandalism occurring after, or in connection
4with, the theft of the rented vehicle. However, the renter shall have
5no liability for any damage due to vandalism if the renter would
6have no liability for theft pursuant to paragraph (2).

7(4) Physical damage to the rented vehicle up to a total of five
8hundred dollars ($500) resulting from vandalism unrelated to the
9theft of the rented vehicle.

10(5) Actual charges for towing, storage, and impound fees paid
11by the rental company if the renter is liable for damage or loss.

12(6) An administrative charge, which shall include the cost of
13appraisal and all other costs and expenses incident to the damage,
14loss, repair, or replacement of the rented vehicle.

15(c) The total amount of the renter’s liability to the rental
16company resulting from damage to the rented vehicle shall not
17exceed the sum of the following:

18(1) The estimated cost of parts which the rental company would
19have to pay to replace damaged vehicle parts. All discounts and
20price reductions or adjustments that are or will be received by the
21rental company shall be subtracted from the estimate to the extent
22not already incorporated in the estimate, or otherwise promptly
23credited or refunded to the renter.

24(2) The estimated cost of labor to replace damaged vehicle parts,
25 which shall not exceed the product of (A) the rate for labor usually
26paid by the rental company to replace vehicle parts of the type that
27were damaged and (B) the estimated time for replacement. All
28discounts and price reductions or adjustments that are or will be
29received by the rental company shall be subtracted from the
30estimate to the extent not already incorporated in the estimate, or
31otherwise promptly credited or refunded to the renter.

32(3) (A) The estimated cost of labor to repair damaged vehicle
33parts, which shall not exceed the lesser of the following:

34(i) The product of the rate for labor usually paid by the rental
35company to repair vehicle parts of the type that were damaged and
36the estimated time for repair.

37(ii) The sum of the estimated labor and parts costs determined
38under paragraphs (1) and (2) to replace the same vehicle parts.

39(B) All discounts and price reductions or adjustments that are
40or will be received by the rental company shall be subtracted from
P7    1the estimate to the extent not already incorporated in the estimate,
2or otherwise promptly credited or refunded to the renter.

3(4) For the purpose of converting the estimated time for repair
4into the same units of time in which the rental rate is expressed, a
5day shall be deemed to consist of eight hours.

6(5) Actual charges for towing, storage, and impound fees paid
7by the rental company.

8(6) The administrative charge described in paragraph (6) of
9subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
10estimated cost for parts and labor is more than one hundred dollars
11($100) up to and including five hundred dollars ($500), (B) one
12hundred dollars ($100) if the total estimated cost for parts and
13labor exceeds five hundred dollars ($500) up to and including one
14thousand five hundred dollars ($1,500), and (C) one hundred fifty
15dollars ($150) if the total estimated cost for parts and labor exceeds
16one thousand five hundred dollars ($1,500). An administrative
17charge shall not be imposed if the total estimated cost of parts and
18labor is one hundred dollars ($100) or less.

19(d) (1) The total amount of an authorized driver’s liability to
20the rental company, if any, for damage occurring during the
21authorized driver’s operation of the rented vehicle shall not exceed
22the amount of the renter’s liability under subdivision (c).

23(2) A rental company shall not recover from the renter or other
24authorized driver an amount exceeding the renter’s liability under
25subdivision (c).

26(3) A claim against a renter resulting from damage or loss,
27excluding loss of use, to a rental vehicle shall be reasonably and
28rationally related to the actual loss incurred. A rental company
29shall mitigate damages where possible and shall not assert or collect
30a claim for physical damage which exceeds the actual costs of the
31repairs performed or the estimated cost of repairs, if the rental
32company chooses not to repair the vehicle, including all discounts
33and price reductions. However, if the vehicle is a total loss vehicle,
34the claim shall not exceed the total loss vehicle value established
35in accordance with procedures that are customarily used by
36insurance companies when paying claims on total loss vehicles,
37less the proceeds from salvaging the vehicle, if those proceeds are
38retained by the rental company.

39(4) If insurance coverage exists under the renter’s applicable
40personal or business insurance policy and the coverage is confirmed
P8    1during regular business hours, the renter may require that the rental
2company submit any claims to the renter’s applicable personal or
3business insurance carrier. The rental company shall not make any
4written or oral representations that it will not present claims or
5negotiate with the renter’s insurance carrier. For purposes of this
6paragraph, confirmation of coverage includes telephone
7confirmation from insurance company representatives during
8regular business hours. Upon request of the renter and after
9confirmation of coverage, the amount of claim shall be resolved
10between the insurance carrier and the rental company. The renter
11shall remain responsible for payment to the rental car company
12for any loss sustained that the renter’s applicable personal or
13business insurance policy does not cover.

14(5) A rental company shall not recover from the renter or other
15authorized driver for an item described in subdivision (b) to the
16extent the rental company obtains recovery from another person.

17(6) This section applies only to the maximum liability of a renter
18or other authorized driver to the rental company resulting from
19damage to the rented vehicle and not to the liability of another
20person.

21(e) (1) Except as provided in subdivision (f), a damage waiver
22shall provide or, if not expressly stated in writing, shall be deemed
23to provide that the renter has no liability for damage, loss, loss of
24use, or a cost or expense incident thereto.

25(2) Except as provided in subdivision (f), every limitation,
26exception, or exclusion to a damage waiver is void and
27unenforceable.

28(f) A rental company may provide in the rental contract that a
29damage waiver does not apply under any of the following
30circumstances:

31(1) Damage or loss results from an authorized driver’s (A)
32intentional, willful, wanton, or reckless conduct, (B) operation of
33the vehicle under the influence of drugs or alcohol in violation of
34Section 23152 of the Vehicle Code, (C) towing or pushing
35anything, or (D) operation of the vehicle on an unpaved road if
36the damage or loss is a direct result of the road or driving
37conditions.

38(2) Damage or loss occurs while the vehicle is (A) used for
39commercial hire, (B) used in connection with conduct that could
40be properly charged as a felony, (C) involved in a speed test or
P9    1contest or in driver training activity, (D) operated by a person other
2than an authorized driver, or (E) operated outside the United States.

3(3) An authorized driver who has (A) provided fraudulent
4information to the rental company, or (B) provided false
5information and the rental company would not have rented the
6vehicle if it had instead received true information.

7(g) (1) A rental company that offers or provides a damage
8waiver for any consideration in addition to the rental rate shall
9clearly and conspicuously disclose the following information in
10the rental contract or holder in which the contract is placed and,
11also, in signs posted at the place, such as the counter, where the
12renter signs the rental contract, and, for renters who are enrolled
13in the rental company’s membership program, in a sign that shall
14be posted in a location clearly visible to those renters as they enter
15the location where their reserved rental cars are parked or near the
16exit of the bus or other conveyance that transports the enrollee to
17a reserved car: (A) the nature of the renter’s liability, such as
18liability for all collision damage regardless of cause, (B) the extent
19of the renter’s liability, such as liability for damage or loss up to
20a specified amount, (C) the renter’s personal insurance policy or
21the credit card used to pay for the car rental transaction may
22provide coverage for all or a portion of the renter’s potential
23liability, (D) the renter should consult with his or her insurer to
24determine the scope of insurance coverage, including the amount
25of the deductible, if any, for which the renter is obligated, (E) the
26renter may purchase an optional damage waiver to cover all
27liability, subject to whatever exceptions the rental company
28expressly lists that are permitted under subdivision (f), and (F) the
29range of charges for the damage waiver.

30(2) In addition to the requirements of paragraph (1), a rental
31company that offers or provides a damage waiver shall orally
32disclose to all renters, except those who are participants in the
33rental company’s membership program, that the damage waiver
34may be duplicative of coverage that the customer maintains under
35his or her own policy of motor vehicle insurance. The renter’s
36receipt of the oral disclosure shall be demonstrated through the
37renter’s acknowledging receipt of the oral disclosure near that part
38of the contract where the renter indicates, by the renter’s own
39initials, his or her acceptance or declination of the damage waiver.
40Adjacent to that same part, the contract also shall state that the
P10   1damage waiver is optional. Further, the contract for these renters
2shall include a clear and conspicuous written disclosure that the
3damage waiver may be duplicative of coverage that the customer
4maintains under his or her own policy of motor vehicle insurance.

5(3) The following is an example, for purposes of illustration
6and not limitation, of a notice fulfilling the requirements of
7paragraph (1) for a rental company that imposes liability on the
8renter for collision damage to the full value of the vehicle:
9

10“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
11AND OPTIONAL DAMAGE WAIVER
12

13You are responsible for all collision damage to the rented vehicle
14even if someone else caused it or the cause is unknown. You are
15responsible for the cost of repair up to the value of the vehicle,
16and towing, storage, and impound fees.

17Your own insurance, or the issuer of the credit card you use to
18pay for the car rental transaction, may cover all or part of your
19financial responsibility for the rented vehicle. You should check
20with your insurance company, or credit card issuer, to find out
21about your coverage and the amount of the deductible, if any, for
22which you may be liable.

23Further, if you use a credit card that provides coverage for your
24potential liability, you should check with the issuer to determine
25if you must first exhaust the coverage limits of your own insurance
26before the credit card coverage applies.

27The rental company will not hold you responsible if you buy a
28damage waiver. But a damage waiver will not protect you if (list
29exceptions).”

30(A) When the above notice is printed in the rental contract or
31holder in which the contract is placed, the following shall be printed
32immediately following the notice:

33“The cost of an optional damage waiver is $____ for every (day
34or week).”

35(B) When the above notice appears on a sign, the following
36shall appear immediately adjacent to the notice:

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

39(h) begin delete(1)end deletebegin deleteend deleteNotwithstanding any other provision of law, a rental
40company may sell a damage waiverbegin insert subject to the following rate
P11   1limitations end insert
forbegin delete each category of rental vehicle forend delete each full or
2partial 24-hour rental day for the damagebegin delete waiver.end deletebegin insert waiver:end insert

begin delete

3(2)

end delete

4begin insert(1)end insert For rental vehicles that the rental company designates as an
5“economy car,” “compact car,” or another term having similar
6meaning to the two smallestbegin insert body-sizeend insert categories of vehicles
7begin delete described inend deletebegin insert established byend insert the Association of Car Rental Industry
8Systems Standardsbegin insert for North America, as of January 1, 2014end insert, when
9offered for rental, the rate shall not exceedbegin delete twelveend deletebegin insert elevenend insert dollars
10begin delete ($12) until December 31, 2015end deletebegin insert ($11)end insert.

begin delete

11(i) On and after January 1, 2016, the rate of the damages waiver
12described in paragraph (2) of subdivision (h) shall be adjusted
13annually to reflect changes from the previous year in the Consumer
14Price Index. For the purposes of this section, “Consumer Price
15Index” means the United States Consumer Price Index for All
16Urban Consumers, for all items.

end delete
begin insert

17(2) For rental vehicles, that the rental company designates as
18an “intermediate car,” “standard car,” or “fullsize car,” or
19another term having similar meaning to the next three body-size
20categories of vehicles established by the Association of Car Rental
21Industry Systems Standards for North America, as of January 1,
222014, and that are also either vehicles of the next model year or
23not older than the previous year’s model, when offered for rental,
24the rate shall not exceed seventeen dollars ($17). For rental
25vehicles that are older than the previous year’s model year, the
26rate shall not exceed eleven dollars ($11).

end insert
begin delete

27(j)

end delete

28begin insert(i)end insert A rental company that disseminates in this state an
29 advertisement containing a rental rate shall include in that
30advertisement a clearly readable statement of the charge for a
31damage waiver and a statement that a damage waiver is optional.

begin delete

32(k)

end delete

33begin insert(j)end insert (1) A rental company shall not require the purchase of a
34damage waiver, optional insurance, or another optional good or
35service.

36(2) A rental company shall not engage in any unfair, deceptive,
37or coercive conduct to induce a renter to purchase the damage
38waiver, optional insurance, or another optional good or service,
39including conduct such as, but not limited to, refusing to honor
40the renter’s reservation, limiting the availability of vehicles,
P12   1requiring a deposit, or debiting or blocking the renter’s credit card
2account for a sum equivalent to a deposit if the renter declines to
3purchase the damage waiver, optional insurance, or another
4optional good or service.

begin delete

5(l)

end delete

6begin insert(k)end insert (1) In the absence of express permission granted by the
7renter subsequent to damage to, or loss of, the vehicle, a rental
8company shall not seek to recover any portion of a claim arising
9out of damage to, or loss of, the rented vehicle by processing a
10credit card charge or causing a debit or block to be placed on the
11renter’s credit card account.

12(2) A rental company shall not engage in any unfair, deceptive,
13or coercive tactics in attempting to recover or in recovering on any
14claim arising out of damage to, or loss of, the rented vehicle.

begin delete

15(m)

end delete

16begin insert(l)end insert (1) A customer facility charge may be collected by a rental
17company under the following circumstances:

18(A) Collection of the fee by the rental company is required by
19an airport operated by a city, a county, a city and county, a joint
20powers authority, a special district, or the San Diego County
21Regional Airport Authority formed pursuant to Division 17
22(commencing with Section 170000) of the Public Utilities Code.

23(B) The fee is calculated on a per contract basis or as provided
24in paragraph (2).

25(C) The fee is a user fee, not a tax imposed upon real property
26or an incident of property ownership under Article XIII D of the
27California Constitution.

28(D) Except as otherwise provided in subparagraph (E), the fee
29shall be ten dollars ($10) per contract or the amount provided in
30paragraph (2).

31(E) The fee for a consolidated rental car facility shall be
32collected only from customers of on-airport rental car companies.
33If the fee imposed by the airport is for both a consolidated rental
34car facility and a common-use transportation system, the fee
35collected from customers of on-airport rental car companies shall
36be ten dollars ($10) or the amount provided in paragraph (2), but
37the fee imposed on customers of off-airport rental car companies
38who are transported on the common-use transportation system is
39proportionate to the costs of the common-use transportation system
40only. The fee is uniformly applied to each class of on-airport or
P13   1off-airport customers, provided that the airport requires off-airport
2customers to use the common-use transportation system. For
3purposes of this subparagraph, “on-airport rental car company”
4means a rental company operating under an airport property lease
5or an airport concession or license agreement whose customers
6use or will use the consolidated rental car facility and the collection
7of the fee as to those customers is consistent with subparagraph
8(C).

9(F) Revenues collected from the fee do not exceed the reasonable
10costs of financing, designing, and constructing the facility and
11financing, designing, constructing, and operating any common-use
12transportation system, or acquiring vehicles for use in that system,
13and shall not be used for any other purpose.

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

15(H) This paragraph does not apply to fees which are governed
16by Section 50474.1 of the Government Code or Section 57.5 of
17the San Diego Unified Port District Actbegin insert (Chapter 67 of the First
18Extraordinary Session of the Statutes of 1962)end insert
.

19(I) For any airport seeking to require rental car companies to
20collect an alternative customer facility charge pursuant to paragraph
21(2), the following provisions apply:

22(i) Notwithstanding Section 10231.5 of the Government Code,
23the airport shall provide reports on an annual basis to the Senate
24and Assembly Committees on Judiciary detailing all of the
25following:

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

27(II) How the funds are being spent.

28(III) The amount of and reason for any changes in the airport’s
29budget or financial needs for the facility or common-use
30transportation system.

31(IV) Whether airport concession fees authorized by Section
321936.01 have increased since the prior report, if any.

33(ii) (I) The airport shall complete the audit required by
34subparagraph (B) of paragraph (4) of subdivision (a) prior to the
35initial collection of the customer facility charge. Notwithstanding
36Section 10231.5 of the Government Code, copies of the audit shall
37be provided to the Assembly and Senate Committees on Judiciary,
38the Assembly Committee on Transportation, and the Senate
39Committee on Transportation and Housing and shall be posted on
40the airport’s Internet Web site.

P14   1(II) Prior to any increase pursuant to paragraph (2), the airport
2shall update the information provided in the initial collection audit
3pursuant to subclause (I). Notwithstanding Section 10231.5 of the
4Government Code, copies of the updated audit shall be provided
5to the Assembly and Senate Committees on Judiciary, the
6Assembly Committee on Transportation, and the Senate Committee
7on Transportation and Housing and shall be posted on the airport’s
8Internet Web site.

9(III) An audit shall be completed every three years after initial
10collection only if the customer facility charge is collected for the
11purpose of operating a common-use transportation system or to
12acquire vehicles for use in the system pursuant to clause (ii) of
13subparagraph (A) of paragraph (4) of subdivision (a). A regularly
14conducted audit of airport finances that includes the customer
15facility charge information, that satisfies the requirements of
16subparagraph (B) of paragraph (4) of subdivision (a), and is
17produced in accordance with the generally accepted accounting
18principles of the Government Accounting Standards Board, shall
19satisfy the requirements of this subclause. This obligation shall
20continue until the fee authorization becomes inoperative pursuant
21to subparagraph (C) of paragraph (4) of subdivision (a).
22Notwithstanding Section 10231.5 of the Government Code, the
23information reported pursuant to this subclause shall be compiled
24into one document, shall be provided to the Assembly and Senate
25Committees on Judiciary, the Assembly Committee on
26Transportation, and the Senate Committee on Transportation and
27Housing and shall be posted on the airport’s Internet Web site
28accessible to the public. The information reported shall be
29contained within one easily accessible page contained within the
30airport’s Internet Web site.

31(IV) This section shall not be construed to require an airport to
32audit a common-use transportation system not financed by a
33customer facility charge and used for the purposes permitted
34pursuant to clause (ii) of subparagraph (A) of paragraph (4) of
35subdivision (a).

36(V) The airport shall post on the airport’s Internet Web site
37copies of the completed audits required by this clause for a period
38of six years following the audit’s completion.

39(iii) Use of the bonds shall be limited to construction and design
40of the consolidated rental car facility, terminal modifications, and
P15   1operating costs of the common-use transportation system, as
2specified in paragraph (4) of subdivision (a).

3(2) Any airport may require rental car companies to collect an
4alternative customer facility charge under the following conditions:

5(A) The airport first conducts a publicly noticed hearing pursuant
6to the Ralph M. Brown Act (Chapter 9 (commencing with Section
754950) of Part 1 of Division 2 of Title 5 of the Government Code)
8to review the costs of financing the design and construction of a
9consolidated rental car facility and the design, construction, and
10operation of any common-use transportation system in which all
11of the following occur:

12(i) The airport establishes the amount of revenue necessary to
13finance the reasonable cost to design and construct a consolidated
14rental car facility and to design, construct, and operate any
15common-use transportation system, or acquire vehicles for use in
16that system, based on evidence presented during the hearing.

17(ii) The airport finds, based on evidence presented during the
18hearing, that the fee authorized in paragraph (1) will not generate
19sufficient revenue to finance the reasonable costs to design and
20construct a consolidated rental car facility and to design, construct,
21and operate any common-use transportation system, or acquire
22vehicles for use in that system.

23(iii) The airport finds that the reasonable cost of the project
24requires the additional amount of revenue that would be generated
25by the proposed daily rate, including any rate increase, authorized
26pursuant to this paragraph.

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

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

29(II) Other potential alternatives for meeting its revenue needs
30other than the collection of the fee.

31(III) The extent to which rental car companies or other
32businesses or individuals using the facility or common-use
33transportation system will pay for the costs associated with these
34facilities and systems other than the fee from rental customers.

35(B) The airport may not require the fee authorized in this
36paragraph to be collected at any time that the fee authorized in
37paragraph (1) of this subdivision is being collected.

38(C) Pursuant to the procedure set forth in this subdivision, the
39fee may be collected at a rate charged on a per-day basis subject
40to the following conditions:

P16   1(i) Commencing January 1, 2011, the amount of the fee may
2not exceed six dollars ($6) per day.

3(ii) Commencing January 1, 2014, the amount of the fee may
4not exceed seven dollars and fifty cents ($7.50) per day.

5(iii) Commencing January 1, 2017, and thereafter, the amount
6of the fee may not exceed nine dollars ($9) per day.

7(iv) At no time shall the fee authorized in this paragraph be
8collected from any customer for more than five days for each
9individual rental car contract.

10(v) An airport subject to this paragraph shall initiate the process
11for obtaining the authority to require or increase the alternative
12fee no later than January 1, 2018. Any airport that obtains the
13authority to require or increase an alternative fee shall be authorized
14to continue collecting that fee until the fee authorization becomes
15inoperative pursuant to subparagraph (C) of paragraph (4) of
16subdivision (a).

17(3) Notwithstanding any other provision of law, including, but
18not limited to, Part 1 (commencing with Section 6001) to Part 1.7
19(commencing with Section 7280), inclusive, of Division 2 of the
20Revenue and Taxation Code, the fees collected pursuant to this
21section, or another law whereby a local agency operating an airport
22requires a rental car company to collect a facility financing fee
23from its customers, are not subject to sales, use, or transaction
24taxes.

begin delete

25(n)

end delete

26begin insert(m)end insert (1) A rental company shall only advertise, quote, and charge
27a rental rate that includes the entire amount except taxes, a
28customer facility charge, if any, and a mileage charge, if any, that
29a renter must pay to hire or lease the vehicle for the period of time
30to which the rental rate applies. A rental company shall not charge
31in addition to the rental rate, taxes, a customer facility charge, if
32any, and a mileage charge, if any, any fee that is required to be
33paid by the renter as a condition of hiring or leasing the vehicle,
34including, but not limited to, required fuel or airport surcharges
35other than customer facility charges, nor a fee for transporting the
36renter to the location where the rented vehicle will be delivered to
37the renter.

38(2) In addition to the rental rate, taxes, customer facility charges,
39if any, and mileage charges, if any, a rental company may charge
40for an item or service provided in connection with a particular
P17   1rental transaction if the renter could have avoided incurring the
2charge by choosing not to obtain or utilize the optional item or
3service. Items and services for which the rental company may
4impose an additional charge include, but are not limited to, optional
5insurance and accessories requested by the renter, service charges
6incident to the renter’s optional return of the vehicle to a location
7other than the location where the vehicle was hired or leased, and
8charges for refueling the vehicle at the conclusion of the rental
9transaction in the event the renter did not return the vehicle with
10as much fuel as was in the fuel tank at the beginning of the rental.
11A rental company also may impose an additional charge based on
12reasonable age criteria established by the rental company.

13(3) A rental company shall not charge a fee for authorized
14drivers in addition to the rental charge for an individual renter.

15(4) If a rental company states a rental rate in print advertisement
16or in a telephonic, in-person, or computer-transmitted quotation,
17the rental company shall disclose clearly in that advertisement or
18quotation the terms of mileage conditions relating to the advertised
19or quoted rental rate, including, but not limited to, to the extent
20applicable, the amount of mileage and gas charges, the number of
21miles for which no charges will be imposed, and a description of
22geographic driving limitations within the United States and Canada.

23(5) (A) When a rental rate is stated in an advertisement,
24quotation, or reservation in connection with a car rental at an airport
25where a customer facility charge is imposed, the rental company
26shall disclose clearly the existence and amount of the customer
27facility charge. For purposes of this subparagraph, advertisements
28include radio, television, other electronic media, and print
29advertisements. For purposes of this subparagraph, quotations and
30reservations include those that are telephonic, in-person, and
31computer-transmitted. If the rate advertisement is intended to
32include transactions at more than one airport imposing a customer
33facility charge, a range of fees may be stated in the advertisement.
34However, all rate advertisements that include car rentals at airport
35destinations shall clearly and conspicuously include a toll-free
36telephone number whereby a customer can be told the specific
37amount of the customer facility charge to which the customer will
38be obligated.

39(B) If a person or entity other than a rental car company,
40including a passenger carrier or a seller of travel services, advertises
P18   1or quotes a rate for a car rental at an airport where a customer
2facility charge is imposed, that person or entity shall, provided
3that he, she, or it is provided with information about the existence
4 and amount of the fee, to the extent not specifically prohibited by
5federal law, clearly disclose the existence and amount of the fee
6in any telephonic, in-person, or computer-transmitted quotation at
7the time of making an initial quotation of a rental rate and at the
8time of making a reservation of a rental car. If a rental car company
9provides the person or entity with rate and customer facility charge
10information, the rental car company is not responsible for the
11failure of that person or entity to comply with this subparagraph
12when quoting or confirming a rate to a third person or entity.

13(6) If a rental company delivers a vehicle to a renter at a location
14other than the location where the rental company normally carries
15on its business, the rental company shall not charge the renter an
16amount for the rental for the period before the delivery of the
17vehicle. If a rental company picks up a rented vehicle from a renter
18at a location other than the location where the rental company
19normally carries on its business, the rental company shall not
20charge the renter an amount for the rental for the period after the
21renter notifies the rental company to pick up the vehicle.

begin delete

22(o)

end delete

23begin insert(n)end insert A rental company shall not use, access, or obtain any
24information relating to the renter’s use of the rental vehicle that
25was obtained using electronic surveillance technology, except in
26the following circumstances:

27(1) (A) When the equipment is used by the rental company
28only for the purpose of locating a stolen, abandoned, or missing
29rental vehicle after one of the following:

30(i) The renter or law enforcement has informed the rental
31company that the vehicle is missing or has been stolen or
32abandoned.

33(ii) The rental vehicle has not been returned following one week
34after the contracted return date, or by one week following the end
35of an extension of that return date.

36(iii) The rental company discovers the rental vehicle has been
37stolen or abandoned, and, if stolen, it shall report the vehicle stolen
38to law enforcement by filing a stolen vehicle report, unless law
39enforcement has already informed the rental company that the
40vehicle is missing or has been stolen or abandoned.

P19   1(B) If electronic surveillance technology is activated pursuant
2to subparagraph (A), a rental company shall maintain a record, in
3either electronic or written form, of information relevant to the
4activation of that technology. That information shall include the
5rental agreement, including the return date, and the date and time
6the electronic surveillance technology was activated. The record
7shall also include, if relevant, a record of written or other
8communication with the renter, including communications
9regarding extensions of the rental, police reports, or other written
10communication with law enforcement officials. The record shall
11be maintained for a period of at least 12 months from the time the
12record is created and shall be made available upon the renter’s
13 request. The rental company shall maintain and furnish explanatory
14codes necessary to read the record. A rental company shall not be
15required to maintain a record if electronic surveillance technology
16is activated to recover a rental vehicle that is stolen or missing at
17a time other than during a rental period.

18(2) In response to a specific request from law enforcement
19pursuant to a subpoena or search warrant.

20(3) This subdivision does not prohibit a rental company from
21equipping rental vehicles with GPS-based technology that provides
22navigation assistance to the occupants of the rental vehicle, if the
23rental company does not use, access, or obtain information relating
24to the renter’s use of the rental vehicle that was obtained using
25that technology, except for the purposes of discovering or repairing
26a defect in the technology and the information may then be used
27only for that purpose.

28(4) This subdivision does not prohibit a rental company from
29equipping rental vehicles with electronic surveillance technology
30that allows for the remote locking or unlocking of the vehicle at
31the request of the renter, if the rental company does not use, access,
32or obtain information relating to the renter’s use of the rental
33vehicle that was obtained using that technology, except as
34necessary to lock or unlock the vehicle.

35(5) This subdivision does not prohibit a rental company from
36equipping rental vehicles with electronic surveillance technology
37that allows the company to provide roadside assistance, such as
38towing, flat tire, or fuel services, at the request of the renter, if the
39rental company does not use, access, or obtain information relating
40to the renter’s use of the rental vehicle that was obtained using
P20   1that technology except as necessary to provide the requested
2roadside assistance.

3(6) This subdivision does not prohibit a rental company from
4obtaining, accessing, or using information from electronic
5surveillance technology for the sole purpose of determining the
6date and time the vehicle is returned to the rental company, and
7the total mileage driven and the vehicle fuel level of the returned
8vehicle. This paragraph, however, shall apply only after the renter
9has returned the vehicle to the rental company, and the information
10shall only be used for the purpose described in this paragraph.

begin delete

11(p)

end delete

12begin insert(o)end insert A rental company shall not use electronic surveillance
13technology to track a renter in order to impose fines or surcharges
14relating to the renter’s use of the rental vehicle.

begin delete

15(q)

end delete

16begin insert(p)end insert A renter may bring an action against a rental company for
17the recovery of damages and appropriate equitable relief for a
18violation of this section. The prevailing party shall be entitled to
19recover reasonable attorney’s fees and costs.

begin delete

20(r)

end delete

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

begin delete

25(s)

end delete

26begin insert(r)end insert A waiver of any of the provisions of this section shall be
27 void and unenforceable as contrary to public policy.

begin delete

28(t)

end delete

29begin insert(s)end insert (1) A rental company’s disclosure requirements shall be
30satisfied for renters who are enrolled in the rental company’s
31membership program if all of the following conditions are met:

32(A) Prior to the enrollee’s first rental as a participant in the
33program, the renter receives, in writing, the following:

34(i) All of the disclosures required by paragraph (1) of subdivision
35(g), including the terms and conditions of the rental agreement
36then in effect.

37(ii) An Internet Web site address, as well as a contact number
38or address, where the enrollee can learn of changes to the rental
39agreement or to the laws of this state governing rental agreements
40since the effective date of the rental company’s most recent
P21   1restatement of the rental agreement and distribution of that
2restatement to its members.

3(B) At the commencement of each rental period, the renter is
4provided, on the rental record or the folder in which it is inserted,
5with a printed notice stating that he or she had either previously
6selected or declined an optional damage waiver and that the renter
7has the right to change preferences.

8(C) At the commencement of each rental period, the rental
9company provides, on the rearview mirror, a hanger on which a
10statement is printed, in a box, in at least 12-point boldface type,
11notifying the renter that the collision damage waiver offered by
12the rental company may be duplicative of coverage that the
13customer maintains under his or her own policy of motor vehicle
14insurance. If it is not feasible to hang the statement from the
15rearview mirror, it shall be hung from the steering wheel.

16The hanger shall provide the renter a box to initial if he or she
17(not his or her employer) has previously accepted or declined the
18collision damage waiver and that he or she now wishes to change
19his or her decision to accept or decline the collision damage waiver,
20as follows:


21“If I previously accepted the collision damage waiver, I now
22decline it.

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

25The hanger shall also provide a box for the enrollee to indicate
26whether this change applies to this rental transaction only or to all
27future rental transactions. The hanger shall also notify the renter
28that he or she may make that change, prior to leaving the lot, by
29returning the form to an employee designated to receive the form
30who is present at the lot where the renter takes possession of the
31car, to receive any change in the rental agreement from the renter.

32(2) (A) This subdivision is not effective unless the employee
33designated pursuant to subparagraph (E) of paragraph (8) of
34subdivision (a) is actually present at the required location.

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

begin delete

40(u)

end delete

P22   1begin insert(t)end insert The amendments made to this section during the 2001-02
2Regular Session of the Legislature do not affect litigation pending
3on or before January 1, 2003, alleging a violation of Section 22325
4of the Business and Professions Code as it read at the time the
5action was commenced.

6begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1936.01 of the end insertbegin insertCivil Codeend insertbegin insert is amended to read:end insert

7

1936.01.  

(a) For the purpose of this section, the following
8definitions shall apply:

9(1) “Airport concession fee” means a charge collected by a
10rental company from a renter that is the renter’s proportionate
11share of the amount paid by the rental company to the owner or
12operator of an airport for the right or privilege of conducting a
13vehicle rental business on the airport’s premises.

14(2) “Quote” means an estimated cost of rental provided by a
15rental company or a third party to a potential customer by
16telephone, in-person, computer-transmission, or other means, that
17is based on information provided by the potential customer and
18used to generate an estimated cost of rental, including, but not
19limited to, any of the following: potential dates of rental, locations,
20or classes of car.

21(3) “Tourism commission assessment” means the charge
22collected by a rental company from a renter that has been
23established by the California Travel and Tourism Commission
24pursuant to Section 13995.65 of the Government Code.

25(b) Notwithstanding subdivisionbegin delete (n)end deletebegin insert (m)end insert of Section 1936, the
26following provisions shall apply:

27(1) A rental company shall only advertise a rental rate that
28includes the entire amount, except taxes, a customer facility charge,
29if any, and a mileage charge, if any, that a renter must pay to hire
30 or lease the vehicle for the period of time to which the rental rate
31applies.

32(2) When providing a quote, or imposing charges for a rental,
33the rental company may separately state the rental rate, taxes,
34customer facility charge, if any, airport concession fee, if any,
35tourism commission assessment, if any, and a mileage charge, if
36any, that a renter must pay to hire or lease the vehicle for the period
37of time to which the rental rate applies. A rental company may not
38charge in addition to the rental rate, taxes, a customer facility
39charge, if any, airport concession fee, if any, tourism commission
40assessment, if any, and a mileage charge, if any, any fee that must
P23   1be paid by the renter as a condition of hiring or leasing the vehicle,
2such as, but not limited to, required fuel or airport surcharges other
3than customer facility charges and airport concession fees.

4(3) If customer facility charges, airport concession fees, or
5tourism commission assessments are imposed, the rental company
6shall do each of the following:

7(A) At the time the quote is given, provide the person receiving
8the quote with a good faith estimate of the rental rate, taxes,
9customer facility charge, if any, airport concession fee, if any, and
10tourism commission assessment, if any, as well as the total charges
11for the entire rental. The total charges, if provided on an Internet
12Web site, shall be displayed in a typeface at least as large as any
13rental rate disclosed on that page and shall be provided on a page
14that the person receiving the quote may reach by following links
15through no more than two Internet Web site pages, including the
16page on which the rental rate is first provided. The good faith
17estimate may exclude mileage charges and charges for optional
18items that cannot be determined prior to completing the reservation
19based upon the information provided by the person.

20(B) At the time and place the rental commences, clearly and
21conspicuously disclose in the rental contract, or that portion of the
22contract that is provided to the renter, the total of the rental rate,
23taxes, customer facility charge, if any, airport concession fee, if
24any, and tourism commission assessment, if any, for the entire
25rental, exclusive of charges that cannot be determined at the time
26the rental commences. Charges imposed pursuant to this
27subparagraph shall be no more than the amount of the quote
28provided in a confirmed reservation, unless the person changes
29the terms of the rental contract subsequent to making the
30reservation.

31(C) Provide each person, other than those persons within the
32rental company, offering quotes to actual or prospective customers
33access to information about customer facility charges, airport
34concession fees, and tourism commission assessments as well as
35access to information about when those charges apply. Any person
36providing quotes to actual or prospective customers for the hire
37or lease of a vehicle from a rental company shall provide the quotes
38in the manner described in subparagraph (A).

39(4) In addition to the rental rate, taxes, customer facility charges,
40if any, airport concession fees, if any, tourism commission
P24   1assessments, if any, and mileage charges, if any, a rental company
2may charge for an item or service provided in connection with a
3particular rental transaction if the renter could have avoided
4incurring the charge by choosing not to obtain or utilize the
5optional item or service. Items and services for which the rental
6company may impose an additional charge, include, but are not
7limited to, optional insurance and accessories requested by the
8renter, service charges incident to the renter’s optional return of
9the vehicle to a location other than the location where the vehicle
10was hired or leased, and charges for refueling the vehicle at the
11conclusion of the rental transaction in the event the renter did not
12return the vehicle with as much fuel as was in the fuel tank at the
13beginning of the rental. A rental company also may impose an
14additional charge based on reasonable age criteria established by
15the rental company.

16(5) A rental company may not charge any fee for authorized
17drivers in addition to the rental charge for an individual renter.

18(6) If a rental company states a rental rate in print advertisement
19or in a telephonic, in-person, or computer-transmitted quote, the
20rental company shall clearly disclose in that advertisement or quote
21the terms of any mileage conditions relating to the rental rate
22disclosed in the advertisement or quote, including, but not limited
23to, to the extent applicable, the amount of mileage and gas charges,
24the number of miles for which no charges will be imposed, and a
25description of geographic driving limitations within the United
26States and Canada.

27(7) (A) When a rental rate is stated in an advertisement, in
28connection with a car rental at an airport where a customer facility
29charge is imposed, the rental company shall clearly disclose the
30existence and amount of the customer facility charge. For the
31purposes of this subparagraph, advertisements include radio,
32television, other electronic media, and print advertisements. If the
33rental rate advertisement is intended to include transactions at more
34than one airport imposing a customer facility charge, a range of
35charges may be stated in the advertisement. However, all rental
36rate advertisements that include car rentals at airport destinations
37shall clearly and conspicuously include a toll-free telephone
38number whereby a customer can be told the specific amount of
39the customer facility charge to which the customer will be
40obligated.

P25   1(B) If any person or entity other than a rental car company,
2including a passenger carrier or a seller of travel services, advertises
3a rental rate for a car rental at an airport where a customer facility
4charge is imposed, that person or entity shall, provided they are
5provided with information about the existence and amount of the
6charge, to the extent not specifically prohibited by federal law,
7clearly disclose the existence and amount of the charge. If a rental
8car company provides the person or entity with rental rate and
9customer facility charge information, the rental car company is
10not responsible for the failure of that person or entity to comply
11with this subparagraph.

12(8) If a rental company delivers a vehicle to a renter at a location
13other than the location where the rental company normally carries
14on its business, the rental company may not charge the renter any
15amount for the rental for the period before the delivery of the
16vehicle. If a rental company picks up a rented vehicle from a renter
17at a location other than the location where the rental company
18normally carries on its business, the rental company may not charge
19the renter any amount for the rental for the period after the renter
20notifies the rental company to pick up the vehicle.

21(9) Except as otherwise permitted pursuant to the customer
22facility charge, a rental company may not separately charge, in
23addition to the rental rate, a fee for transporting the renter to the
24location where the rented vehicle will be delivered to the renter.

25(c) 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(d) Any waiver of any of the provisions of this section shall be
30void and unenforceable as contrary to public policy.

31(e) This section shall become operative only if the Secretary of
32Business, Transportation and Housing provides notice to the
33Legislature and the Secretary of State and posts notice on its
34Internet Web site that the conditions described in Section 13995.92
35of the Government Code have been satisfied.

36begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 1936.015 of the end insertbegin insertCivil Codeend insertbegin insert is amended to read:end insert

37

1936.015.  

(a) For the purposes of this section, the following
38definitions shall apply:

P26   1(1) “Vehicle license fee” has the same meaning as in Sections
210751 and 10752 of the Revenue and Taxation Code, as that fee
3existed on January 1, 2009.

4(2) “Increased vehicle license fee” means the amount of the fee
5increase in the vehicle license fee above 0.65 percent of the value
6of the vehicle.

7(3) “Increased vehicle license recovery fee” means a charge
8that seeks to recover the amount of increased vehicle license fees
9actually paid by a rental company for the particular class of vehicle
10being rented. The increased vehicle license recovery fee shall be
11calculated as provided in paragraph (1) of subdivision (b).

12(b) Notwithstanding subdivisionbegin delete (n)end deletebegin insert (m)end insert of Section 1936 or
13subdivision (b) of Section 1936.01, upon an increase of the vehicle
14license fee above 0.65 percent of the value of the vehicle pursuant
15to legislation enacted with the Budget Act of 2009, the following
16provisions shall apply with respect to the increased vehicle license
17fee:

18(1) A rental company shall calculate the amount of the increased
19vehicle license recovery fee in the following manner:

20(A) The initial calculation required by this section shall be made
21as of August 21, 2009, and shall include the three-month period
22of May 21, 2009, to August 21, 2009, inclusive. Subsequent
23calculations shall be made every three months thereafter.

24(B) The rental company shall determine the total amount of the
25increased vehicle license fee actually paid during the twelve months
26preceding the calculation date, for each particular class of vehicle
27being rented.

28(C) The total amount of increased vehicle license fee actually
29paid for each class of vehicle shall be divided by the number of
30vehicles in the class, to determine the average increased vehicle
31license fee for each class.

32(D) The average increased vehicle license fee for vehicles in
33each class shall be prorated at one three-hundred-and-sixty-fifth,
34to determine the daily increased vehicle license recovery fee for
35vehicles in each particular class of vehicle, to be charged for each
36full or partial 24-hour rental day that the vehicle is rented.

37(2) As of November 21, 2009, and annually as of each
38November 21 thereafter, a rental company shall reconcile the
39amount of increased vehicle license fees actually paid by the rental
40company during the preceding 12 months for each class of vehicle
P27   1and the amount of increased vehicle license recovery fees charged
2to customers during that same 12-month period for rental of
3vehicles in those classes. The rental company shall post that
4information on its Internet Web site by December 31 of each year.

5(3) The total of all increased vehicle license fees charged to
6customers by the rental company for each class of vehicle shall
7not exceed the total of increased vehicle license recovery fees
8actually paid for vehicles in those classes on an annual basis.

9(4) A rental company shall only advertise a rental rate that
10includes the entire amount, except taxes, the increased vehicle
11license recovery fee, a customer facility charge, if any, and a
12mileage charge, if any, that a renter must pay to hire or lease the
13vehicle for the period of time to which the rental rate applies.

14(5) When providing a quote, or imposing charges for a rental,
15the rental company may separately state the rental rate, taxes, the
16increased vehicle license recovery fee, customer facility charge,
17if any, airport concession fee, if any, tourism commission
18assessment, if any, and a mileage charge, if any, that a renter must
19pay to hire or lease the vehicle for the period of time to which the
20rental rate applies. A rental company may not charge in addition
21to the rental rate, taxes, the increased vehicle license recovery fee,
22a customer facility charge, if any, airport concession fee, if any,
23tourism commission assessment, if any, and a mileage charge, if
24any, any fee that must be paid by the renter as a condition of hiring
25or leasing the vehicle, such as, but not limited to, required fuel or
26airport surcharges other than customer facility charges and airport
27concession fees.

28(6) If customer facility charges, airport concession fees, or
29tourism commission assessments are imposed, the rental company
30shall do each of the following:

31(A) At the time the quote is given, provide the person receiving
32the quote with a good faith estimate of the rental rate, taxes, the
33increased vehicle license recovery fee, customer facility charge,
34if any, airport concession fee, if any, and tourism commission
35assessment, if any, as well as the total charges for the entire rental.
36The total charges, if provided on an Internet Web site, shall be
37displayed in a typeface at least as large as any rental rate disclosed
38on that page and shall be provided on a page that the person
39receiving the quote may reach by following links through no more
40than two Internet Web site pages, including the page on which the
P28   1rental rate is first provided. The good faith estimate may exclude
2mileage charges and charges for optional items that cannot be
3determined prior to completing the reservation based upon the
4information provided by the person.

5(B) At the time and place the rental commences, clearly and
6conspicuously disclose in the rental contract, or that portion of the
7contract that is provided to the renter, the total of the rental rate,
8taxes, the increased vehicle license recovery fee, customer facility
9charge, if any, airport concession fee, if any, and tourism
10commission assessment, if any, for the entire rental, exclusive of
11charges that cannot be determined at the time the rental
12commences. Charges imposed pursuant to this subparagraph shall
13be no more than the amount of the quote provided in a confirmed
14reservation, unless the person changes the terms of the rental
15contract subsequent to making the reservation.

16(C) Provide each person, other than those persons within the
17rental company, offering quotes to actual or prospective customers
18access to information about the increased vehicle license recovery
19fee, customer facility charges, airport concession fees, and tourism
20commission assessments as well as access to information about
21when those charges apply. Any person providing quotes to actual
22or prospective customers for the hire or lease of a vehicle from a
23rental company shall provide the quotes in the manner described
24in subparagraph (A).

25(7) In addition to the rental rate, taxes, the increased vehicle
26license recovery fee, customer facility charges, if any, airport
27concession fees, if any, tourism commission assessments, if any,
28and mileage charges, if any, a rental company may charge for an
29item or service provided in connection with a particular rental
30transaction if the renter could have avoided incurring the charge
31by choosing not to obtain or utilize the optional item or service.
32Items and services for which the rental company may impose an
33additional charge, include, but are not limited to, optional insurance
34and accessories requested by the renter, service charges incident
35to the renter’s optional return of the vehicle to a location other
36than the location where the vehicle was hired or leased, and charges
37for refueling the vehicle at the conclusion of the rental transaction
38in the event the renter did not return the vehicle with as much fuel
39as was in the fuel tank at the beginning of the rental. A rental
P29   1company also may impose an additional charge based on
2reasonable age criteria established by the rental company.

3(8) A rental company may not charge any fee for authorized
4drivers in addition to the rental charge for an individual renter.

5(9) If a rental company states a rental rate in print advertisement
6or in a telephonic, in-person, or computer-transmitted quote, the
7rental company shall clearly disclose in that advertisement or quote
8the terms of any mileage conditions relating to the rental rate
9disclosed in the advertisement or quote, including, but not limited
10to, to the extent applicable, the amount of mileage and gas charges,
11the number of miles for which no charges will be imposed, and a
12description of geographic driving limitations within the United
13States and Canada.

14(10) (A) When a rental rate is stated in an advertisement, in
15connection with a car rental at an airport where a customer facility
16charge is imposed, the rental company shall clearly disclose the
17existence and amount of the customer facility charge. For the
18purposes of this subparagraph, advertisements include radio,
19television, other electronic media, and print advertisements. If the
20rental rate advertisement is intended to include transactions at more
21than one airport imposing a customer facility charge, a range of
22charges may be stated in the advertisement. However, all rental
23rate advertisements that include car rentals at airport destinations
24shall clearly and conspicuously include a toll-free telephone
25number whereby a customer can be told the specific amount of
26the customer facility charge to which the customer will be
27obligated.

28(B) If any person or entity other than a rental company, including
29a passenger carrier or a seller of travel services, advertises a rental
30rate for a car rental at an airport where a customer facility charge
31is imposed, that person or entity shall, provided they are provided
32with information about the existence and amount of the charge, to
33the extent not specifically prohibited by federal law, clearly
34disclose the existence and amount of the charge. If a rental
35company provides the person or entity with rental rate and customer
36facility charge information, the rental company is not responsible
37for the failure of that person or entity to comply with this
38subparagraph.

39(11) If a rental company delivers a vehicle to a renter at a
40location other than the location where the rental company normally
P30   1carries on its business, the rental company may not charge the
2renter any amount for the rental for the period before the delivery
3of the vehicle. If a rental company picks up a rented vehicle from
4a renter at a location other than the location where the rental
5company normally carries on its business, the rental company may
6not charge the renter any amount for the rental for the period after
7the renter notifies the rental company to pick up the vehicle.

8(12) Except as otherwise permitted pursuant to the customer
9facility charge, a rental company may not separately charge, in
10addition to the rental rate, a fee for transporting the renter to the
11location where the rented vehicle will be delivered to the renter.

12(c) A renter may bring an action against a rental company for
13the recovery of damages and appropriate equitable relief for a
14violation of this section. The prevailing party shall be entitled to
15recover reasonable attorney’s fees and costs.

16(d) Any waiver of any of the provisions of this section shall be
17void and unenforceable as contrary to public policy.

18(e) (1) This section shall become operative only if Senate Bill
193 or Assembly Bill 3 of the 2009-10 Third Extraordinary Session
20of the Legislature is enacted and increases the vehicle license fee
21above 0.65 percent of the value of the vehicle and shall cease to
22become operative 12 months after the restoration of the vehicle
23license fee to no more than 0.65 percent of the value of the vehicle.

24(2) Provisions of this section relating to the disclosure and
25separately stated charges for a customer facility charge or an airport
26concession fee shall remain operative so long as the Secretary of
27Business, Transportation and Housing provides notice to the
28Legislature and the Secretary of State and posts notice on its
29Internet Web site that the conditions described in Section 13995.92
30of the Government Code have been satisfied.

31begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 1936.05 of the end insertbegin insertCivil Codeend insertbegin insert is amended to read:end insert

32

1936.05.  

(a) For purposes of this section:

33(1) “Additional charges” means charges other than a per period
34base rental rate established by the business program.

35(2) “Business program” means (A) a contract between a rental
36company and a business program sponsor that has established the
37per period base rental rate, and any other material terms relating
38to additional charges, on which the rental company will rent
39passenger vehicles to persons authorized by the sponsor, or (B) a
40plan, program, or other arrangement established by a rental
P31   1company at the request of, or with the consent of, a business
2program sponsor under which the rental company offers to rent
3passenger vehicles to persons authorized by the sponsor at per
4period base rental rates, and any other material terms relating to
5additional charges, that are not the same as those generally offered
6by the rental company to the public.

7(3) “Business program sponsor” means a legal entity, other than
8a natural person, that is a corporation, limited liability company,
9or partnership.

10(4) “Business renter” means, for any business program sponsor,
11a person who is authorized by the sponsor, through the use of an
12identifying number or program name or code, to enter into a rental
13contract under the sponsor’s business program. In no case shall
14the term “business renter” include a person renting as: (A) a
15nonemployee member of a not-for-profit organization, (B) the
16purchaser of a voucher or other prepaid rental arrangement from
17a person, including a tour operator, engaged in the business of
18reselling those vouchers or prepaid rental arrangements to the
19general public, (C) an individual whose car rental is eligible for
20reimbursement in whole or in part as a result of the person being
21insured or provided coverage under a policy of insurance issued
22by an insurance company, or (D) an individual whose car rental
23is eligible for reimbursement in whole or in part as a result of the
24person purchasing passenger vehicle repair services from a person
25licensed to perform such services.

26(5) “Qualified business rental” under a business program
27established for a business program sponsor by a rental company
28means the rental of a passenger vehicle under the business program
29if either (A) in the 12-month period ending on the date of the rental
30or in the calendar year immediately preceding the year in which
31the rental occurs, the rentals under all business programs
32established by the rental company for the business program sponsor
33and its affiliates produced gross rental revenues in excess of
34twenty-five thousand dollars ($25,000) or (B) the rental company
35in good faith estimates that rentals under all the business programs
36established by the rental company for the business program sponsor
37and its affiliates will produce gross rental revenues in excess of
38twenty-five thousand dollars ($25,000) in the 12-month period
39commencing with the date of the rental or in the calendar year in
40which the rental occurs. The rental company has the burden of
P32   1establishing by objectively verifiable evidence that the rental was
2a qualified business rental.

3(6) “Quote” means telephonic, in-person, and
4computer-transmitted quotations.

5(b) Notwithstanding any provision to the contrary contained in
6paragraph (1) of subdivisionbegin delete (n)end deletebegin insert (m)end insert of Section 1936, a rental car
7company may, in connection with the qualified business rental of
8a passenger vehicle to a business renter of a business program
9sponsor under the sponsor’s business program, do both of the
10following:

11(1) Separately quote additional charges for the rental if, at the
12time the quote is provided, the person receiving the quote is also
13provided a good faith estimate of the total of all the charges for
14the entire rental. The estimate may exclude mileage charges and
15charges for optional items and services that cannot be determined
16prior to completing the reservation based upon the information
17provided by the renter.

18(2) Separately impose additional charges for the rental, if the
19rental contract, or another document provided to the business renter
20at the time and place the rental commences, clearly and
21 conspicuously discloses the total of all the charges for the entire
22rental, exclusive of charges that cannot be determined at the time
23the rental commences.

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

28(d) Any waiver of any of the provisions of this section shall be
29void and unenforceable as contrary to public policy.

30(e) Nothing in this section shall be interpreted to mean that a
31rental company is not required to comply with the requirements
32of paragraphs (2) to (6), inclusive, of subdivisionbegin delete (n)end deletebegin insert (m)end insert of Section
331936.



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