Amended in Senate June 15, 2014

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 amend Sections 1936, 1936.01, 1936.015, and 1936.05 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 the maximum rate of the damage waiver sold, as $9 or $15 per rental day, 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 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 increase the maximum rate of the damage waiver to $11 per rental day 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 prescribedbegin delete standards, as of January 1, 2014end deletebegin insert standardsend insert. The bill would also 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 standardsbegin delete and that are also within a specified model year. For rentals that are older than the previous year’s model, the bill would specify the maximum rate as $11 per rental dayend delete.

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.

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.

P3    1(iii) To finance, design, and construct terminal modifications
2solely to accommodate and provide customer access to
3common-use transportation systems.

4(B) The aggregate amount to be collected shall not exceed the
5reasonable costs, as determined by an audit, by an independent
6auditor, paid for by the airport, to finance, design, and construct
7those facilities. The auditor shall independently examine and
8substantiate the necessity for and the amount of the customer
9facility charge, including whether the airport’s actual or projected
10costs are supported and justified, any steps the airport may take to
11limit costs, potential alternatives for meeting the airport’s revenue
12needs other than the collection of the fee, and whether and to what
13extent car rental companies or other businesses or individuals using
14the facility or common-use transportation system may pay for the
15costs associated with these facilities and systems other than the
16fee from rental customers, or whether the airport did not comply
17with any provision of this subparagraph. Copies of the audit shall
18be provided to the Assembly and Senate Committees on Judiciary,
19the Assembly Committee on Transportation, and the Senate
20Committee on Transportation and Housing and shall be posted on
21the airport’s Internet Web site. In the case of a customer facility
22charge for a common-use transportation system, the audit also
23shall consider the reasonable costs of providing the transit system
24or busing network pursuant to clause (ii) of subparagraph (A). Any
25audit required by this subparagraph may be included as a part of
26an audit of an airport’s finances. Notwithstanding clause (iii) of
27subparagraph (A), the fees designated as a customer facility charge
28shall not be used to pay for terminal expansion, gate expansion,
29runway expansion, changes in hours of operation, or changes in
30the number of flights arriving or departing from the airport.

31(C) Except as provided in subparagraph (D), the authorization
32given pursuant to this section for an airport to impose a customer
33facility charge shall become inoperative when the bonds used for
34financing are paid.

35(D) If a bond or other form of indebtedness is not used for
36financing, or the bond or other form of indebtedness used for
37financing has been paid, the Oakland International Airport may
38require the collection of a customer facility charge for a period of
39up to 10 years from the imposition of the charge for the purposes
40allowed by, and subject to the conditions imposed by, this section.

P4    1(5) “Damage waiver” means a rental company’s agreement not
2to hold a renter liable for all or any portion of any damage or loss
3related to the rented vehicle, any loss of use of the rented vehicle,
4or any storage, impound, towing, or administrative charges.

5(6) “Electronic surveillance technology” means a technological
6method or system used to observe, monitor, or collect information,
7including telematics, Global Positioning System (GPS), wireless
8technology, or location-based technologies. “Electronic
9surveillance technology” does not include event data recorders
10(EDR), sensing and diagnostic modules (SDM), or other systems
11that are used either:

12(A) For the purpose of identifying, diagnosing, or monitoring
13functions related to the potential need to repair, service, or perform
14maintenance on the rental vehicle.

15(B) As part of the vehicle’s airbag sensing and diagnostic system
16in order to capture safety systems-related data for retrieval after a
17crash has occurred or in the event that the collision sensors are
18activated to prepare the decisionmaking computer to make the
19determination to deploy or not to deploy the airbag.

20(7) “Estimated time for replacement” means the number of hours
21of labor, or fraction thereof, needed to replace damaged vehicle
22parts as set forth in collision damage estimating guides generally
23used in the vehicle repair business and commonly known as “crash
24books.”

25(8) “Estimated time for repair” means a good faith estimate of
26the reasonable number of hours of labor, or fraction thereof, needed
27to repair damaged vehicle parts.

28(9) “Membership program” means a service offered by a rental
29company that permits customers to bypass the rental counter and
30go directly to the car previously reserved. A membership program
31shall meet all of the following requirements:

32(A) The renter initiates enrollment by completing an application
33on which the renter can specify a preference for type of vehicle
34 and acceptance or declination of optional services.

35(B) The rental company fully discloses, prior to the enrollee’s
36first rental as a participant in the program, all terms and conditions
37of the rental agreement as well as all required disclosures.

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

39(D) The rental company fully explains to the renter that
40designated preferences, as well as acceptance or declination of
P5    1optional services, may be changed by the renter at any time for
2the next and future rentals.

3(E) An employee designated to receive the form specified in
4subparagraph (C) of paragraph (1) of subdivision (t) is present at
5the lot where the renter takes possession of the car, to receive any
6change in the rental agreement from the renter.

7(10) “Passenger vehicle” means a passenger vehicle as defined
8in Section 465 of the Vehicle Code.

9(b) Except as limited by subdivision (c), a rental company and
10a renter may agree that the renter will be responsible for no more
11than all of the following:

12(1) Physical or mechanical damage to the rented vehicle up to
13its fair market value, as determined in the customary market for
14the sale of that vehicle, resulting from collision regardless of the
15cause of the damage.

16(2) Loss due to theft of the rented vehicle up to its fair market
17value, as determined in the customary market for the sale of that
18vehicle, provided that the rental company establishes by clear and
19convincing evidence that the renter or the authorized driver failed
20to exercise ordinary care while in possession of the vehicle. In
21addition, the renter shall be presumed to have no liability for any
22loss due to theft if (A) an authorized driver has possession of the
23ignition key furnished by the rental company or an authorized
24driver establishes that the ignition key furnished by the rental
25company was not in the vehicle at the time of the theft, and (B) an
26authorized driver files an official report of the theft with the police
27or other law enforcement agency within 24 hours of learning of
28the theft and reasonably cooperates with the rental company and
29the police or other law enforcement agency in providing
30information concerning the theft. The presumption set forth in this
31paragraph is a presumption affecting the burden of proof which
32the rental company may rebut by establishing that an authorized
33driver committed, or aided and abetted the commission of, the
34theft.

35(3) Physical damage to the rented vehicle up to its fair market
36value, as determined in the customary market for the sale of that
37vehicle, resulting from vandalism occurring after, or in connection
38with, the theft of the rented vehicle. However, the renter shall have
39no liability for any damage due to vandalism if the renter would
40have 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 damage, loss, loss of
19use, 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
37 than 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
28 disclose 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

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

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

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

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

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

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

39(1) For rental vehicles that the rental company designates as an
40“economy car,” “compact car,” or another term having similar
P11   1meaning to the two smallest body-size categories of vehicles
2 established by the Association of Car Rental Industry Systems
3Standards for North America,begin delete as of January 1, 2014,end delete when offered
4for rental, the rate shall not exceed eleven dollars ($11).

5(2) For rental vehicles, that the rental company designates as
6an “intermediate car,” “standard car,” or “fullsize car,” or another
7term having similar meaning to the next three body-size categories
8of vehicles established by the Association of Car Rental Industry
9Systems Standards for North America,begin delete as of January 1, 2014, and
10that are also either vehicles of the next model year or not older
11than the previous year’s model,end delete
when offered for rental, the rate
12shall not exceed seventeen dollars ($17).begin delete For rental vehicles that
13are older than the previous year’s model year, the rate shall not
14exceed eleven dollars ($11).end delete

15(i) A rental company that disseminates in this state an
16 advertisement containing a rental rate shall include in that
17advertisement a clearly readable statement of the charge for a
18damage waiver and a statement that a damage waiver is optional.

19(j) (1) A rental company shall not require the purchase of a
20damage waiver, optional insurance, or another optional good or
21service.

22(2) A rental company shall not engage in any unfair, deceptive,
23or coercive conduct to induce a renter to purchase the damage
24waiver, optional insurance, or another optional good or service,
25including conduct such as, but not limited to, refusing to honor
26the renter’s reservation, limiting the availability of vehicles,
27requiring a deposit, or debiting or blocking the renter’s credit card
28account for a sum equivalent to a deposit if the renter declines to
29purchase the damage waiver, optional insurance, or another
30optional good or service.

31(k) (1) In the absence of express permission granted by the
32renter subsequent to damage to, or loss of, the vehicle, a rental
33company shall not seek to recover any portion of a claim arising
34out of damage to, or loss of, the rented vehicle by processing a
35credit card charge or causing a debit or block to be placed on the
36renter’s credit card account.

37(2) A rental company shall not engage in any unfair, deceptive,
38or coercive tactics in attempting to recover or in recovering on any
39claim arising out of damage to, or loss of, the rented vehicle.

P12   1(l) (1) A customer facility charge may be collected by a rental
2company under the following circumstances:

3(A) Collection of the fee by the rental company is required by
4an airport operated by a city, a county, a city and county, a joint
5powers authority, a special district, or the San Diego County
6Regional Airport Authority formed pursuant to Division 17
7(commencing with Section 170000) of the Public Utilities Code.

8(B) The fee is calculated on a per contract basis or as provided
9in paragraph (2).

10(C) The fee is a user fee, not a tax imposed upon real property
11or an incident of property ownership under Article XIII D of the
12California Constitution.

13(D) Except as otherwise provided in subparagraph (E), the fee
14shall be ten dollars ($10) per contract or the amount provided in
15paragraph (2).

16(E) The fee for a consolidated rental car facility shall be
17collected only from customers of on-airport rental car companies.
18If the fee imposed by the airport is for both a consolidated rental
19car facility and a common-use transportation system, the fee
20collected from customers of on-airport rental car companies shall
21be ten dollars ($10) or the amount provided in paragraph (2), but
22the fee imposed on customers of off-airport rental car companies
23who are transported on the common-use transportation system is
24proportionate to the costs of the common-use transportation system
25only. The fee is uniformly applied to each class of on-airport or
26off-airport customers, provided that the airport requires off-airport
27customers to use the common-use transportation system. For
28purposes of this subparagraph, “on-airport rental car company”
29means a rental company operating under an airport property lease
30or an airport concession or license agreement whose customers
31use or will use the consolidated rental car facility and the collection
32of the fee as to those customers is consistent with subparagraph
33(C).

34(F) Revenues collected from the fee do not exceed the reasonable
35costs of financing, designing, and constructing the facility and
36financing, designing, constructing, and operating any common-use
37transportation system, or acquiring vehicles for use in that system,
38and shall not be used for any other purpose.

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

P13   1(H) This paragraph does not apply to fees which are governed
2by Section 50474.1 of the Government Code or Section 57.5 of
3the San Diego Unified Port District Act (Chapter 67 of the First
4Extraordinary Session of the Statutes of 1962).

5(I) For any airport seeking to require rental car companies to
6collect an alternative customer facility charge pursuant to paragraph
7(2), the following provisions apply:

8(i) Notwithstanding Section 10231.5 of the Government Code,
9the airport shall provide reports on an annual basis to the Senate
10and Assembly Committees on Judiciary detailing all of the
11following:

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

13(II) How the funds are being spent.

14(III) The amount of and reason for any changes in the airport’s
15budget or financial needs for the facility or common-use
16transportation system.

17(IV) Whether airport concession fees authorized by Section
181936.01 have increased since the prior report, if any.

19(ii) (I) The airport shall complete the audit required by
20subparagraph (B) of paragraph (4) of subdivision (a) prior to the
21initial collection of the customer facility charge. Notwithstanding
22Section 10231.5 of the Government Code, copies of the audit shall
23be provided to the Assembly and Senate Committees on Judiciary,
24the Assembly Committee on Transportation, and the Senate
25Committee on Transportation and Housing and shall be posted on
26the airport’s Internet Web site.

27(II) Prior to any increase pursuant to paragraph (2), the airport
28shall update the information provided in the initial collection audit
29pursuant to subclause (I). Notwithstanding Section 10231.5 of the
30Government Code, copies of the updated audit shall be provided
31to the Assembly and Senate Committees on Judiciary, the
32Assembly Committee on Transportation, and the Senate Committee
33on Transportation and Housingbegin insert,end insert and shall be posted on the airport’s
34Internet Web site.

35(III) An audit shall be completed every three years after initial
36collection only if the customer facility charge is collected for the
37purpose of operating a common-use transportation system or to
38acquire vehicles for use in the system pursuant to clause (ii) of
39subparagraph (A) of paragraph (4) of subdivision (a). A regularly
40conducted audit of airport finances that includes the customer
P14   1facility charge information, that satisfies the requirements of
2subparagraph (B) of paragraph (4) of subdivision (a), and is
3produced in accordance with the generally accepted accounting
4principles of the Government Accounting Standards Board, shall
5satisfy the requirements of this subclause. This obligation shall
6continue until the fee authorization becomes inoperative pursuant
7to subparagraph (C) of paragraph (4) of subdivision (a).
8Notwithstanding Section 10231.5 of the Government Code, the
9information reported pursuant to this subclause shall be compiled
10into one document, shall be provided to the Assembly and Senate
11Committees on Judiciary, the Assembly Committee on
12Transportation, and the Senate Committee on Transportation and
13Housing and shall be posted on the airport’s Internet Web site
14accessible to the public. The information reported shall be
15contained within one easily accessible page contained within the
16airport’s Internet Web site.

17(IV) This section shall not be construed to require an airport to
18audit a common-use transportation system not financed by a
19customer facility charge and used for the purposes permitted
20pursuant to clause (ii) of subparagraph (A) of paragraph (4) of
21subdivision (a).

22(V) The airport shall post on the airport’s Internet Web site
23copies of the completed audits required by this clause for a period
24of six years following the audit’s completion.

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

29(2) Any airport may require rental car companies to collect an
30alternative customer facility charge under the following conditions:

31(A) The airport first conducts a publicly noticed hearing pursuant
32to the Ralph M. Brown Act (Chapter 9 (commencing with Section
3354950) of Part 1 of Division 2 of Title 5 of the Government Code)
34to review the costs of financing the design and construction of a
35consolidated rental car facility and the design, construction, and
36operation of any common-use transportation system in which all
37of the following occur:

38(i) The airport establishes the amount of revenue necessary to
39finance the reasonable cost to design and construct a consolidated
40rental car facility and to design, construct, and operate any
P15   1common-use transportation system, or acquire vehicles for use in
2that system, based on evidence presented during the hearing.

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

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

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

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

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

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

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

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

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

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

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

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

36(v) An airport subject to this paragraph shall initiate the process
37for obtaining the authority to require or increase the alternative
38fee no later than January 1, 2018. Any airport that obtains the
39authority to require or increase an alternative fee shall be authorized
40to continue collecting that fee until the fee authorization becomes
P16   1inoperative pursuant to subparagraph (C) of paragraph (4) of
2subdivision (a).

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

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

23(2) In addition to the rental rate, taxes, customer facility charges,
24if any, and mileage charges, if any, a rental company may charge
25for an item or service provided in connection with a particular
26rental transaction if the renter could have avoided incurring the
27charge by choosing not to obtain or utilize the optional item or
28service. Items and services for which the rental company may
29impose an additional charge include, but are not limited to, optional
30insurance and accessories requested by the renter, service charges
31incident to the renter’s optional return of the vehicle to a location
32other than the location where the vehicle was hired or leased, and
33charges for refueling the vehicle at the conclusion of the rental
34transaction in the event the renter did not return the vehicle with
35as much fuel as was in the fuel tank at the beginning of the rental.
36A rental company also may impose an additional charge based on
37reasonable age criteria established by the rental company.

38(3) A rental company shall not charge a fee for authorized
39drivers in addition to the rental charge for an individual renter.

P17   1(4) If a rental company states a rental rate in print advertisement
2or in a telephonic, in-person, or computer-transmitted quotation,
3the rental company shall disclose clearly in that advertisement or
4quotation the terms of mileage conditions relating to the advertised
5or quoted rental rate, including, but not limited to, to the extent
6applicable, the amount of mileage and gas charges, the number of
7miles for which no charges will be imposed, and a description of
8geographic driving limitations within the United States and Canada.

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

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

39(6) If a rental company delivers a vehicle to a renter at a location
40other than the location where the rental company normally carries
P18   1on its business, the rental company shall not charge the renter an
2amount for the rental for the period before the delivery of the
3vehicle. If a rental company picks up a rented vehicle from a renter
4at a location other than the location where the rental company
5normally carries on its business, the rental company shall not
6charge the renter an amount for the rental for the period after the
7renter notifies the rental company to pick up the vehicle.

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

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

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

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

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

26(B) If electronic surveillance technology is activated pursuant
27to subparagraph (A), a rental company shall maintain a record, in
28either electronic or written form, of information relevant to the
29activation of that technology. That information shall include the
30rental agreement, including the return date, and the date and time
31the electronic surveillance technology was activated. The record
32shall also include, if relevant, a record of written or other
33communication with the renter, including communications
34regarding extensions of the rental, police reports, or other written
35communication with law enforcement officials. The record shall
36be maintained for a period of at least 12 months from the time the
37record is created and shall be made available upon the renter’s
38 request. The rental company shall maintain and furnish explanatory
39codes necessary to read the record. A rental company shall not be
40required to maintain a record if electronic surveillance technology
P19   1is activated to recover a rental vehicle that is stolen or missing at
2a time other than during a rental period.

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

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

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

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

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

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

39(p) A renter may bring an action against a rental company for
40the recovery of damages and appropriate equitable relief for a
P20   1violation of this section. The prevailing party shall be entitled to
2recover reasonable attorney’s fees and costs.

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

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

9(s) (1) A rental company’s disclosure requirements shall be
10satisfied for renters who are enrolled in the rental company’s
11membership program if all of the following conditions are met:

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

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

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

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

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

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


P21   1“If I previously accepted the collision damage waiver, I now
2decline it.

   
3If I previously declined the collision damage waiver, I now
4accept it.”

5The hanger shall also provide a box for the enrollee to indicate
6whether this change applies to this rental transaction only or to all
7future rental transactions. The hanger shall also notify the renter
8that he or she may make that change, prior to leaving the lot, by
9returning the form to an employee designated to receive the form
10who is present at the lot where the renter takes possession of the
11car, to receive any change in the rental agreement from the renter.

12(2) (A) This subdivision is not effective unless the employee
13designated pursuant to subparagraph (E) of paragraph (8) of
14subdivision (a) is actually present at the required location.

15(B) This subdivision does not relieve the rental company from
16the disclosures required to be made within the text of a contract
17or holder in which the contract is placed; in or on an advertisement
18containing a rental rate; or in a telephonic, in-person, or
19computer-transmitted quotation or reservation.

20(t) The amendments made to this section during the 2001-02
21Regular Session of the Legislature do not affect litigation pending
22on or before January 1, 2003, alleging a violation of Section 22325
23of the Business and Professions Code as it read at the time the
24action was commenced.

25

SEC. 2.  

Section 1936.01 of the Civil Code is amended to read:

26

1936.01.  

(a) For the purpose of this section, the following
27definitions shall apply:

28(1) “Airport concession fee” means a charge collected by a
29rental company from a renter that is the renter’s proportionate
30share of the amount paid by the rental company to the owner or
31operator of an airport for the right or privilege of conducting a
32vehicle rental business on the airport’s premises.

33(2) “Quote” means an estimated cost of rental provided by a
34rental company or a third party to a potential customer by
35telephone, in-person, computer-transmission, or other means, that
36is based on information provided by the potential customer and
37used to generate an estimated cost of rental, including, but not
38limited to, any of the following: potential dates of rental, locations,
39or classes of car.

P22   1(3) “Tourism commission assessment” means the charge
2collected by a rental company from a renter that has been
3established by the California Travel and Tourism Commission
4pursuant to Section 13995.65 of the Government Code.

5(b) Notwithstanding subdivision (m) of Section 1936, the
6following provisions shall apply:

7(1) A rental company shall only advertise a rental rate that
8includes the entire amount, except taxes, a customer facility charge,
9if any, and a mileage charge, if any, that a renter must pay to hire
10 or lease the vehicle for the period of time to which the rental rate
11applies.

12(2) When providing a quote, or imposing charges for a rental,
13the rental company may separately state the rental rate, taxes,
14customer facility charge, if any, airport concession fee, if any,
15tourism commission assessment, if any, and a mileage charge, if
16any, that a renter must pay to hire or lease the vehicle for the period
17of time to which the rental rate applies. A rental company may not
18charge in addition to the rental rate, taxes, a customer facility
19charge, if any, airport concession fee, if any, tourism commission
20assessment, if any, and a mileage charge, if any, any fee that must
21be paid by the renter as a condition of hiring or leasing the vehicle,
22such as, but not limited to, required fuel or airport surcharges other
23than customer facility charges and airport concession fees.

24(3) If customer facility charges, airport concession fees, or
25tourism commission assessments are imposed, the rental company
26shall do each of the following:

27(A) At the time the quote is given, provide the person receiving
28the quote with a good faith estimate of the rental rate, taxes,
29customer facility charge, if any, airport concession fee, if any, and
30tourism commission assessment, if any, as well as the total charges
31for the entire rental. The total charges, if provided on an Internet
32Web site, shall be displayed in a typeface at least as large as any
33rental rate disclosed on that page and shall be provided on a page
34that the person receiving the quote may reach by following links
35through no more than two Internet Web site pages, including the
36page on which the rental rate is first provided. The good faith
37estimate may exclude mileage charges and charges for optional
38items that cannot be determined prior to completing the reservation
39based upon the information provided by the person.

P23   1(B) At the time and place the rental commences, clearly and
2conspicuously disclose in the rental contract, or that portion of the
3contract that is provided to the renter, the total of the rental rate,
4taxes, customer facility charge, if any, airport concession fee, if
5any, and tourism commission assessment, if any, for the entire
6rental, exclusive of charges that cannot be determined at the time
7the rental commences. Charges imposed pursuant to this
8subparagraph shall be no more than the amount of the quote
9provided in a confirmed reservation, unless the person changes
10the terms of the rental contract subsequent to making the
11reservation.

12(C) Provide each person, other than those persons within the
13rental company, offering quotes to actual or prospective customers
14access to information about customer facility charges, airport
15concession fees, and tourism commission assessments as well as
16access to information about when those charges apply. Any person
17providing quotes to actual or prospective customers for the hire
18or lease of a vehicle from a rental company shall provide the quotes
19in the manner described in subparagraph (A).

20(4) In addition to the rental rate, taxes, customer facility charges,
21if any, airport concession fees, if any, tourism commission
22assessments, if any, and mileage charges, if any, a rental company
23may charge for an item or service provided in connection with a
24particular rental transaction if the renter could have avoided
25incurring the charge by choosing not to obtain or utilize the
26optional item or service. Items and services for which the rental
27company may impose an additional charge, include, but are not
28limited to, optional insurance and accessories requested by the
29renter, service charges incident to the renter’s optional return of
30the vehicle to a location other than the location where the vehicle
31was hired or leased, and charges for refueling the vehicle at the
32conclusion of the rental transaction in the event the renter did not
33return the vehicle with as much fuel as was in the fuel tank at the
34beginning of the rental. A rental company also may impose an
35additional charge based on reasonable age criteria established by
36the rental company.

37(5) A rental company may not charge any fee for authorized
38drivers in addition to the rental charge for an individual renter.

39(6) If a rental company states a rental rate in print advertisement
40or in a telephonic, in-person, or computer-transmitted quote, the
P24   1rental company shall clearly disclose in that advertisement or quote
2the terms of any mileage conditions relating to the rental rate
3disclosed in the advertisement or quote, including, but not limited
4to, to the extent applicable, the amount of mileage and gas charges,
5the number of miles for which no charges will be imposed, and a
6description of geographic driving limitations within the United
7States and Canada.

8(7) (A) When a rental rate is stated in an advertisement, in
9connection with a car rental at an airport where a customer facility
10charge is imposed, the rental company shall clearly disclose the
11existence and amount of the customer facility charge. For the
12purposes of this subparagraph, advertisements include radio,
13television, other electronic media, and print advertisements. If the
14rental rate advertisement is intended to include transactions at more
15than one airport imposing a customer facility charge, a range of
16charges may be stated in the advertisement. However, all rental
17rate advertisements that include car rentals at airport destinations
18shall clearly and conspicuously include a toll-free telephone
19number whereby a customer can be told the specific amount of
20the customer facility charge to which the customer will be
21obligated.

22(B) If any person or entity other than a rental car company,
23including a passenger carrier or a seller of travel services, advertises
24a rental rate for a car rental at an airport where a customer facility
25charge is imposed, that person or entity shall, provided they are
26provided with information about the existence and amount of the
27charge, to the extent not specifically prohibited by federal law,
28clearly disclose the existence and amount of the charge. If a rental
29car company provides the person or entity with rental rate and
30customer facility charge information, the rental car company is
31not responsible for the failure of that person or entity to comply
32with this subparagraph.

33(8) If a rental company delivers a vehicle to a renter at a location
34other than the location where the rental company normally carries
35on its business, the rental company may not charge the renter any
36amount for the rental for the period before the delivery of the
37vehicle. If a rental company picks up a rented vehicle from a renter
38at a location other than the location where the rental company
39normally carries on its business, the rental company may not charge
P25   1the renter any amount for the rental for the period after the renter
2notifies the rental company to pick up the vehicle.

3(9) Except as otherwise permitted pursuant to the customer
4facility charge, a rental company may not separately charge, in
5addition to the rental rate, a fee for transporting the renter to the
6location where the rented vehicle will be delivered to the renter.

7(c) A renter may bring an action against a rental company for
8the recovery of damages and appropriate equitable relief for a
9violation of this section. The prevailing party shall be entitled to
10recover reasonable attorney’s fees and costs.

11(d) Any waiver of any of the provisions of this section shall be
12void and unenforceable as contrary to public policy.

13(e) This section shall become operative only if the Secretary of
14Business, Transportation and Housing provides notice to the
15Legislature and the Secretary of State and posts notice on its
16Internet Web site that the conditions described in Section 13995.92
17of the Government Code have been satisfied.

18

SEC. 3.  

Section 1936.015 of the Civil Code is amended to
19read:

20

1936.015.  

(a) For the purposes of this section, the following
21definitions shall apply:

22(1) “Vehicle license fee” has the same meaning as in Sections
2310751 and 10752 of the Revenue and Taxation Code, as that fee
24existed on January 1, 2009.

25(2) “Increased vehicle license fee” means the amount of the fee
26increase in the vehicle license fee above 0.65 percent of the value
27of the vehicle.

28(3) “Increased vehicle license recovery fee” means a charge
29that seeks to recover the amount of increased vehicle license fees
30actually paid by a rental company for the particular class of vehicle
31being rented. The increased vehicle license recovery fee shall be
32calculated as provided in paragraph (1) of subdivision (b).

33(b) Notwithstanding subdivision (m) of Section 1936 or
34subdivision (b) of Section 1936.01, upon an increase of the vehicle
35license fee above 0.65 percent of the value of the vehicle pursuant
36to legislation enacted with the Budget Act of 2009, the following
37provisions shall apply with respect to the increased vehicle license
38fee:

39(1) A rental company shall calculate the amount of the increased
40vehicle license recovery fee in the following manner:

P26   1(A) The initial calculation required by this section shall be made
2as of August 21, 2009, and shall include the three-month period
3of May 21, 2009, to August 21, 2009, inclusive. Subsequent
4calculations shall be made every three months thereafter.

5(B) The rental company shall determine the total amount of the
6increased vehicle license fee actually paid during the twelve months
7preceding the calculation date, for each particular class of vehicle
8being rented.

9(C) The total amount of increased vehicle license fee actually
10paid for each class of vehicle shall be divided by the number of
11vehicles in the class, to determine the average increased vehicle
12license fee for each class.

13(D) The average increased vehicle license fee for vehicles in
14each class shall be prorated at one three-hundred-and-sixty-fifth,
15to determine the daily increased vehicle license recovery fee for
16vehicles in each particular class of vehicle, to be charged for each
17full or partial 24-hour rental day that the vehicle is rented.

18(2) As of November 21, 2009, and annually as of each
19November 21 thereafter, a rental company shall reconcile the
20amount of increased vehicle license fees actually paid by the rental
21company during the preceding 12 months for each class of vehicle
22and the amount of increased vehicle license recovery fees charged
23to customers during that same 12-month period for rental of
24vehicles in those classes. The rental company shall post that
25information on its Internet Web site by December 31 of each year.

26(3) The total of all increased vehicle license fees charged to
27customers by the rental company for each class of vehicle shall
28not exceed the total of increased vehicle license recovery fees
29actually paid for vehicles in those classes on an annual basis.

30(4) A rental company shall only advertise a rental rate that
31includes the entire amount, except taxes, the increased vehicle
32license recovery fee, a customer facility charge, if any, and a
33mileage charge, if any, that a renter must pay to hire or lease the
34vehicle for the period of time to which the rental rate applies.

35(5) When providing a quote, or imposing charges for a rental,
36the rental company may separately state the rental rate, taxes, the
37increased vehicle license recovery fee, customer facility charge,
38if any, airport concession fee, if any, tourism commission
39assessment, if any, and a mileage charge, if any, that a renter must
40pay to hire or lease the vehicle for the period of time to which the
P27   1rental rate applies. A rental company may not charge in addition
2to the rental rate, taxes, the increased vehicle license recovery fee,
3a customer facility charge, if any, airport concession fee, if any,
4tourism commission assessment, if any, and a mileage charge, if
5any, any fee that must be paid by the renter as a condition of hiring
6or leasing the vehicle, such as, but not limited to, required fuel or
7airport surcharges other than customer facility charges and airport
8concession fees.

9(6) If customer facility charges, airport concession fees, or
10tourism commission assessments are imposed, the rental company
11shall do each of the following:

12(A) At the time the quote is given, provide the person receiving
13the quote with a good faith estimate of the rental rate, taxes, the
14increased vehicle license recovery fee, customer facility charge,
15if any, airport concession fee, if any, and tourism commission
16assessment, if any, as well as the total charges for the entire rental.
17The total charges, if provided on an Internet Web site, shall be
18displayed in a typeface at least as large as any rental rate disclosed
19on that page and shall be provided on a page that the person
20receiving the quote may reach by following links through no more
21than two Internet Web site pages, including the page on which the
22rental rate is first provided. The good faith estimate may exclude
23mileage charges and charges for optional items that cannot be
24determined prior to completing the reservation based upon the
25information provided by the person.

26(B) At the time and place the rental commences, clearly and
27conspicuously disclose in the rental contract, or that portion of the
28contract that is provided to the renter, the total of the rental rate,
29taxes, the increased vehicle license recovery fee, customer facility
30charge, if any, airport concession fee, if any, and tourism
31commission assessment, if any, for the entire rental, exclusive of
32charges that cannot be determined at the time the rental
33commences. Charges imposed pursuant to this subparagraph shall
34be no more than the amount of the quote provided in a confirmed
35reservation, unless the person changes the terms of the rental
36contract subsequent to making the reservation.

37(C) Provide each person, other than those persons within the
38rental company, offering quotes to actual or prospective customers
39access to information about the increased vehicle license recovery
40fee, customer facility charges, airport concession fees, and tourism
P28   1commission assessments as well as access to information about
2when those charges apply. Any person providing quotes to actual
3or prospective customers for the hire or lease of a vehicle from a
4rental company shall provide the quotes in the manner described
5in subparagraph (A).

6(7) In addition to the rental rate, taxes, the increased vehicle
7license recovery fee, customer facility charges, if any, airport
8concession fees, if any, tourism commission assessments, if any,
9and mileage charges, if any, a rental company may charge for an
10item or service provided in connection with a particular rental
11transaction if the renter could have avoided incurring the charge
12by choosing not to obtain or utilize the optional item or service.
13Items and services for which the rental company may impose an
14additional charge, include, but are not limited to, optional insurance
15and accessories requested by the renter, service charges incident
16to the renter’s optional return of the vehicle to a location other
17than the location where the vehicle was hired or leased, and charges
18for refueling the vehicle at the conclusion of the rental transaction
19in the event the renter did not return the vehicle with as much fuel
20as was in the fuel tank at the beginning of the rental. A rental
21company also may impose an additional charge based on
22reasonable age criteria established by the rental company.

23(8) A rental company may not charge any fee for authorized
24drivers in addition to the rental charge for an individual renter.

25(9) If a rental company states a rental rate in print advertisement
26or in a telephonic, in-person, or computer-transmitted quote, the
27rental company shall clearly disclose in that advertisement or quote
28the terms of any mileage conditions relating to the rental rate
29disclosed in the advertisement or quote, including, but not limited
30to, to the extent applicable, the amount of mileage and gas charges,
31the number of miles for which no charges will be imposed, and a
32description of geographic driving limitations within the United
33States and Canada.

34(10) (A) When a rental rate is stated in an advertisement, in
35connection with a car rental at an airport where a customer facility
36charge is imposed, the rental company shall clearly disclose the
37existence and amount of the customer facility charge. For the
38purposes of this subparagraph, advertisements include radio,
39television, other electronic media, and print advertisements. If the
40rental rate advertisement is intended to include transactions at more
P29   1than one airport imposing a customer facility charge, a range of
2charges may be stated in the advertisement. However, all rental
3rate advertisements that include car rentals at airport destinations
4shall clearly and conspicuously include a toll-free telephone
5number whereby a customer can be told the specific amount of
6the customer facility charge to which the customer will be
7obligated.

8(B) If any person or entity other than a rental company, including
9a passenger carrier or a seller of travel services, advertises a rental
10rate for a car rental at an airport where a customer facility charge
11is imposed, that person or entity shall, provided they are provided
12with information about the existence and amount of the charge, to
13the extent not specifically prohibited by federal law, clearly
14disclose the existence and amount of the charge. If a rental
15company provides the person or entity with rental rate and customer
16facility charge information, the rental company is not responsible
17for the failure of that person or entity to comply with this
18subparagraph.

19(11) If a rental company delivers a vehicle to a renter at a
20location other than the location where the rental company normally
21carries on its business, the rental company may not charge the
22renter any amount for the rental for the period before the delivery
23of the vehicle. If a rental company picks up a rented vehicle from
24a renter at a location other than the location where the rental
25company normally carries on its business, the rental company may
26not charge the renter any amount for the rental for the period after
27the renter notifies the rental company to pick up the vehicle.

28(12) Except as otherwise permitted pursuant to the customer
29facility charge, a rental company may not separately charge, in
30addition to the rental rate, a fee for transporting the renter to the
31location where the rented vehicle will be delivered to the renter.

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

36(d) Any waiver of any of the provisions of this section shall be
37void and unenforceable as contrary to public policy.

38(e) (1) This section shall become operative only if Senate Bill
393 or Assembly Bill 3 of the 2009-10 Third Extraordinary Session
40of the Legislature is enacted and increases the vehicle license fee
P30   1above 0.65 percent of the value of the vehicle and shall cease to
2become operative 12 months after the restoration of the vehicle
3license fee to no more than 0.65 percent of the value of the vehicle.

4(2) Provisions of this section relating to the disclosure and
5separately stated charges for a customer facility charge or an airport
6concession fee shall remain operative so long as the Secretary of
7Business, Transportation and Housing provides notice to the
8Legislature and the Secretary of State and posts notice on its
9Internet Web site that the conditions described in Section 13995.92
10of the Government Code have been satisfied.

11

SEC. 4.  

Section 1936.05 of the Civil Code is amended to read:

12

1936.05.  

(a) For purposes of this section:

13(1) “Additional charges” means charges other than a per period
14base rental rate established by the business program.

15(2) “Business program” means (A) a contract between a rental
16company and a business program sponsor that has established the
17per period base rental rate, and any other material terms relating
18to additional charges, on which the rental company will rent
19passenger vehicles to persons authorized by the sponsor, or (B) a
20plan, program, or other arrangement established by a rental
21company at the request of, or with the consent of, a business
22 program sponsor under which the rental company offers to rent
23passenger vehicles to persons authorized by the sponsor at per
24period base rental rates, and any other material terms relating to
25additional charges, that are not the same as those generally offered
26by the rental company to the public.

27(3) “Business program sponsor” means a legal entity, other than
28a natural person, that is a corporation, limited liability company,
29or partnership.

30(4) “Business renter” means, for any business program sponsor,
31a person who is authorized by the sponsor, through the use of an
32identifying number or program name or code, to enter into a rental
33contract under the sponsor’s business program. In no case shall
34the term “business renter” include a person renting as: (A) a
35nonemployee member of a not-for-profit organization, (B) the
36purchaser of a voucher or other prepaid rental arrangement from
37a person, including a tour operator, engaged in the business of
38reselling those vouchers or prepaid rental arrangements to the
39general public, (C) an individual whose car rental is eligible for
40reimbursement in whole or in part as a result of the person being
P31   1insured or provided coverage under a policy of insurance issued
2by an insurance company, or (D) an individual whose car rental
3is eligible for reimbursement in whole or in part as a result of the
4person purchasing passenger vehicle repair services from a person
5licensed to perform such services.

6(5) “Qualified business rental” under a business program
7established for a business program sponsor by a rental company
8means the rental of a passenger vehicle under the business program
9if either (A) in the 12-month period ending on the date of the rental
10or in the calendar year immediately preceding the year in which
11the rental occurs, the rentals under all business programs
12established by the rental company for the business program sponsor
13and its affiliates produced gross rental revenues in excess of
14twenty-five thousand dollars ($25,000) or (B) the rental company
15in good faith estimates that rentals under all the business programs
16established by the rental company for the business program sponsor
17and its affiliates will produce gross rental revenues in excess of
18twenty-five thousand dollars ($25,000) in the 12-month period
19commencing with the date of the rental or in the calendar year in
20which the rental occurs. The rental company has the burden of
21establishing by objectively verifiable evidence that the rental was
22a qualified business rental.

23(6) “Quote” means telephonic, in-person, and
24computer-transmitted quotations.

25(b) Notwithstanding any provision to the contrary contained in
26paragraph (1) of subdivision (m) of Section 1936, a rental car
27company may, in connection with the qualified business rental of
28a passenger vehicle to a business renter of a business program
29sponsor under the sponsor’s business program, do both of the
30following:

31(1) Separately quote additional charges for the rental if, at the
32time the quote is provided, the person receiving the quote is also
33provided a good faith estimate of the total of all the charges for
34the entire rental. The estimate may exclude mileage charges and
35charges for optional items and services that cannot be determined
36prior to completing the reservation based upon the information
37provided by the renter.

38(2) Separately impose additional charges for the rental, if the
39rental contract, or another document provided to the business renter
40at the time and place the rental commences, clearly and
P32   1 conspicuously discloses the total of all the charges for the entire
2rental, exclusive of charges that cannot be determined at the time
3the rental commences.

4(c) A renter may bring an action against a rental company for
5the recovery of damages and appropriate equitable relief for a
6violation of this section. The prevailing party shall be entitled to
7recover reasonable attorney’s fees and costs.

8(d) Any waiver of any of the provisions of this section shall be
9void and unenforceable as contrary to public policy.

10(e) Nothing in this section shall be interpreted to mean that a
11rental company is not required to comply with the requirements
12of paragraphs (2) to (6), inclusive, of subdivision (m) of Section
131936.



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