Amended in Senate July 1, 2014

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 standardsend deletebegin insert standards, as of January 1, 2014end 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.end deletebegin insert 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 insertbegin insert.end 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.

25(ii) To finance, design, construct, and operate common-use
26transportation systems that move passengers between airport
P3    1terminals and those consolidated car rental facilities, and acquire
2vehicles for use in that system.

3(iii) To finance, design, and construct terminal modifications
4solely to accommodate and provide customer access to
5common-use transportation systems.

6(B) The aggregate amount to be collected shall not exceed the
7reasonable costs, as determined by an audit, by an independent
8auditor, paid for by the airport, to finance, design, and construct
9those facilities. The auditor shall independently examine and
10substantiate the necessity for and the amount of the customer
11facility charge, including whether the airport’s actual or projected
12costs are supported and justified, any steps the airport may take to
13limit costs, potential alternatives for meeting the airport’s revenue
14needs other than the collection of the fee, and whether and to what
15extent car rental companies or other businesses or individuals using
16the facility or common-use transportation system may pay for the
17costs associated with these facilities and systems other than the
18fee from rental customers, or whether the airport did not comply
19with any provision of this subparagraph. Copies of the audit shall
20be provided to the Assembly and Senate Committees on Judiciary,
21the Assembly Committee on Transportation, and the Senate
22Committee on Transportation and Housing and shall be posted on
23the airport’s Internet Web site. In the case of a customer facility
24charge for a common-use transportation system, the audit also
25shall consider the reasonable costs of providing the transit system
26or busing network pursuant to clause (ii) of subparagraph (A). Any
27audit required by this subparagraph may be included as a part of
28an audit of an airport’s finances. Notwithstanding clause (iii) of
29subparagraph (A), the fees designated as a customer facility charge
30shall not be used to pay for terminal expansion, gate expansion,
31runway expansion, changes in hours of operation, or changes in
32the number of flights arriving or departing from the airport.

33(C) Except as provided in subparagraph (D), the authorization
34given pursuant to this section for an airport to impose a customer
35facility charge shall become inoperative when the bonds used for
36financing are paid.

37(D) If a bond or other form of indebtedness is not used for
38financing, or the bond or other form of indebtedness used for
39financing has been paid, the Oakland International Airport may
40require the collection of a customer facility charge for a period of
P4    1up to 10 years from the imposition of the charge for the purposes
2allowed by, and subject to the conditions imposed by, this section.

3(5) “Damage waiver” means a rental company’s agreement not
4to hold a renter liable for all or any portion of any damage or loss
5related to the rented vehicle, any loss of use of the rented vehicle,
6or any storage, impound, towing, or administrative charges.

7(6) “Electronic surveillance technology” means a technological
8method or system used to observe, monitor, or collect information,
9including telematics, Global Positioning System (GPS), wireless
10technology, or location-based technologies. “Electronic
11surveillance technology” does not include event data recorders
12(EDR), sensing and diagnostic modules (SDM), or other systems
13that are used either:

14(A) For the purpose of identifying, diagnosing, or monitoring
15functions related to the potential need to repair, service, or perform
16maintenance on the rental vehicle.

17(B) As part of the vehicle’s airbag sensing and diagnostic system
18in order to capture safety systems-related data for retrieval after a
19crash has occurred or in the event that the collision sensors are
20activated to prepare the decisionmaking computer to make the
21determination to deploy or not to deploy the airbag.

22(7) “Estimated time for replacement” means the number of hours
23of labor, or fraction thereof, needed to replace damaged vehicle
24parts as set forth in collision damage estimating guides generally
25used in the vehicle repair business and commonly known as “crash
26books.”

27(8) “Estimated time for repair” means a good faith estimate of
28the reasonable number of hours of labor, or fraction thereof, needed
29to repair damaged vehicle parts.

30(9) “Membership program” means a service offered by a rental
31company that permits customers to bypass the rental counter and
32go directly to the car previously reserved. A membership program
33shall meet all of the following requirements:

34(A) The renter initiates enrollment by completing an application
35on which the renter can specify a preference for type of vehicle
36 and acceptance or declination of optional services.

37(B) The rental company fully discloses, prior to the enrollee’s
38first rental as a participant in the program, all terms and conditions
39of the rental agreement as well as all required disclosures.

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

P5    1(D) The rental company fully explains to the renter that
2designated preferences, as well as acceptance or declination of
3optional services, may be changed by the renter at any time for
4the next and future rentals.

5(E) An employee designated to receive the form specified in
6subparagraph (C) of paragraph (1) of subdivision (t) is present at
7the lot where the renter takes possession of the car, to receive any
8change in the rental agreement from the renter.

9(10) “Passenger vehicle” means a passenger vehicle as defined
10in Section 465 of the Vehicle Code.

11(b) Except as limited by subdivision (c), a rental company and
12a renter may agree that the renter will be responsible for no more
13than all of the following:

14(1) Physical or mechanical damage to the rented vehicle up to
15its fair market value, as determined in the customary market for
16the sale of that vehicle, resulting from collision regardless of the
17cause of the damage.

18(2) Loss due to theft of the rented vehicle up to its fair market
19value, as determined in the customary market for the sale of that
20vehicle, provided that the rental company establishes by clear and
21convincing evidence that the renter or the authorized driver failed
22to exercise ordinary care while in possession of the vehicle. In
23addition, the renter shall be presumed to have no liability for any
24loss due to theft if (A) an authorized driver has possession of the
25ignition key furnished by the rental company or an authorized
26driver establishes that the ignition key furnished by the rental
27company was not in the vehicle at the time of the theft, and (B) an
28authorized driver files an official report of the theft with the police
29or other law enforcement agency within 24 hours of learning of
30the theft and reasonably cooperates with the rental company and
31the police or other law enforcement agency in providing
32information concerning the theft. The presumption set forth in this
33paragraph is a presumption affecting the burden of proof which
34the rental company may rebut by establishing that an authorized
35driver committed, or aided and abetted the commission of, the
36theft.

37(3) Physical damage to the rented vehicle up to its fair market
38value, as determined in the customary market for the sale of that
39vehicle, resulting from vandalism occurring after, or in connection
40with, the theft of the rented vehicle. However, the renter shall have
P6    1no liability for any damage due to vandalism if the renter would
2have no liability for theft pursuant to paragraph (2).

3(4) Physical damage to the rented vehicle up to a total of five
4hundred dollars ($500) resulting from vandalism unrelated to the
5theft of the rented vehicle.

6(5) Actual charges for towing, storage, and impound fees paid
7by the rental company if the renter is liable for damage or loss.

8(6) An administrative charge, which shall include the cost of
9appraisal and all other costs and expenses incident to the damage,
10loss, repair, or replacement of the rented vehicle.

11(c) The total amount of the renter’s liability to the rental
12company resulting from damage to the rented vehicle shall not
13exceed the sum of the following:

14(1) The estimated cost of parts which the rental company would
15have to pay to replace damaged vehicle parts. All discounts and
16price reductions or adjustments that are or will be received by the
17rental company shall be subtracted from the estimate to the extent
18not already incorporated in the estimate, or otherwise promptly
19credited or refunded to the renter.

20(2) The estimated cost of labor to replace damaged vehicle parts,
21 which shall not exceed the product of (A) the rate for labor usually
22paid by the rental company to replace vehicle parts of the type that
23were damaged and (B) the estimated time for replacement. All
24discounts and price reductions or adjustments that are or will be
25received by the rental company shall be subtracted from the
26estimate to the extent not already incorporated in the estimate, or
27otherwise promptly credited or refunded to the renter.

28(3) (A) The estimated cost of labor to repair damaged vehicle
29parts, which shall not exceed the lesser of the following:

30(i) The product of the rate for labor usually paid by the rental
31company to repair vehicle parts of the type that were damaged and
32the estimated time for repair.

33(ii) The sum of the estimated labor and parts costs determined
34under paragraphs (1) and (2) to replace the same vehicle parts.

35(B) All discounts and price reductions or adjustments that are
36or will be received by the rental company shall be subtracted from
37the estimate to the extent not already incorporated in the estimate,
38or otherwise promptly credited or refunded to the renter.

P7    1(4) For the purpose of converting the estimated time for repair
2into the same units of time in which the rental rate is expressed, a
3day shall be deemed to consist of eight hours.

4(5) Actual charges for towing, storage, and impound fees paid
5by the rental company.

6(6) The administrative charge described in paragraph (6) of
7subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
8estimated cost for parts and labor is more than one hundred dollars
9($100) up to and including five hundred dollars ($500), (B) one
10hundred dollars ($100) if the total estimated cost for parts and
11labor exceeds five hundred dollars ($500) up to and including one
12thousand five hundred dollars ($1,500), and (C) one hundred fifty
13dollars ($150) if the total estimated cost for parts and labor exceeds
14one thousand five hundred dollars ($1,500). An administrative
15charge shall not be imposed if the total estimated cost of parts and
16labor is one hundred dollars ($100) or less.

17(d) (1) The total amount of an authorized driver’s liability to
18the rental company, if any, for damage occurring during the
19authorized driver’s operation of the rented vehicle shall not exceed
20the amount of the renter’s liability under subdivision (c).

21(2) A rental company shall not recover from the renter or other
22authorized driver an amount exceeding the renter’s liability under
23subdivision (c).

24(3) A claim against a renter resulting from damage or loss,
25excluding loss of use, to a rental vehicle shall be reasonably and
26rationally related to the actual loss incurred. A rental company
27shall mitigate damages where possible and shall not assert or collect
28a claim for physical damage which exceeds the actual costs of the
29repairs performed or the estimated cost of repairs, if the rental
30company chooses not to repair the vehicle, including all discounts
31and price reductions. However, if the vehicle is a total loss vehicle,
32the claim shall not exceed the total loss vehicle value established
33in accordance with procedures that are customarily used by
34insurance companies when paying claims on total loss vehicles,
35less the proceeds from salvaging the vehicle, if those proceeds are
36retained by the rental company.

37(4) If insurance coverage exists under the renter’s applicable
38personal or business insurance policy and the coverage is confirmed
39during regular business hours, the renter may require that the rental
40company submit any claims to the renter’s applicable personal or
P8    1business insurance carrier. The rental company shall not make any
2written or oral representations that it will not present claims or
3negotiate with the renter’s insurance carrier. For purposes of this
4paragraph, confirmation of coverage includes telephone
5confirmation from insurance company representatives during
6regular business hours. Upon request of the renter and after
7confirmation of coverage, the amount of claim shall be resolved
8between the insurance carrier and the rental company. The renter
9shall remain responsible for payment to the rental car company
10for any loss sustained that the renter’s applicable personal or
11business insurance policy does not cover.

12(5) A rental company shall not recover from the renter or other
13authorized driver for an item described in subdivision (b) to the
14extent the rental company obtains recovery from another person.

15(6) This section applies only to the maximum liability of a renter
16or other authorized driver to the rental company resulting from
17damage to the rented vehicle and not to the liability of another
18person.

19(e) (1) Except as provided in subdivision (f), a damage waiver
20shall provide or, if not expressly stated in writing, shall be deemed
21to provide that the renter has no liability for damage, loss, loss of
22use, or a cost or expense incident thereto.

23(2) Except as provided in subdivision (f), every limitation,
24exception, or exclusion to a damage waiver is void and
25unenforceable.

26(f) A rental company may provide in the rental contract that a
27damage waiver does not apply under any of the following
28circumstances:

29(1) Damage or loss results from an authorized driver’s (A)
30intentional, willful, wanton, or reckless conduct, (B) operation of
31the vehicle under the influence of drugs or alcohol in violation of
32Section 23152 of the Vehicle Code, (C) towing or pushing
33anything, or (D) operation of the vehicle on an unpaved road if
34the damage or loss is a direct result of the road or driving
35conditions.

36(2) Damage or loss occurs while the vehicle is (A) used for
37commercial hire, (B) used in connection with conduct that could
38be properly charged as a felony, (C) involved in a speed test or
39contest or in driver training activity, (D) operated by a person other
40than an authorized driver, or (E) operated outside the United States.

P9    1(3) An authorized driver who has (A) provided fraudulent
2information to the rental company, or (B) provided false
3information and the rental company would not have rented the
4vehicle if it had instead received true information.

5(g) (1) A rental company that offers or provides a damage
6waiver for any consideration in addition to the rental rate shall
7clearly and conspicuously disclose the following information in
8the rental contract or holder in which the contract is placed and,
9also, in signs posted at the place, such as the counter, where the
10renter signs the rental contract, and, for renters who are enrolled
11in the rental company’s membership program, in a sign that shall
12be posted in a location clearly visible to those renters as they enter
13the location where their reserved rental cars are parked or near the
14exit of the bus or other conveyance that transports the enrollee to
15a reserved car: (A) the nature of the renter’s liability, such as
16liability for all collision damage regardless of cause, (B) the extent
17of the renter’s liability, such as liability for damage or loss up to
18a specified amount, (C) the renter’s personal insurance policy or
19the credit card used to pay for the car rental transaction may
20provide coverage for all or a portion of the renter’s potential
21liability, (D) the renter should consult with his or her insurer to
22determine the scope of insurance coverage, including the amount
23of the deductible, if any, for which the renter is obligated, (E) the
24renter may purchase an optional damage waiver to cover all
25liability, subject to whatever exceptions the rental company
26expressly lists that are permitted under subdivision (f), and (F) the
27range of charges for the damage waiver.

28(2) In addition to the requirements of paragraph (1), a rental
29company that offers or provides a damage waiver shall orally
30disclose to all renters, except those who are participants in the
31rental company’s membership program, that the damage waiver
32may be duplicative of coverage that the customer maintains under
33his or her own policy of motor vehicle insurance. The renter’s
34receipt of the oral disclosure shall be demonstrated through the
35renter’s acknowledging receipt of the oral disclosure near that part
36of the contract where the renter indicates, by the renter’s own
37initials, his or her acceptance or declination of the damage waiver.
38Adjacent to that same part, the contract also shall state that the
39damage waiver is optional. Further, the contract for these renters
40shall include a clear and conspicuous written disclosure that the
P10   1damage waiver may be duplicative of coverage that the customer
2maintains under his or her own policy of motor vehicle insurance.

3(3) The following is an example, for purposes of illustration
4and not limitation, of a notice fulfilling the requirements of
5paragraph (1) for a rental company that imposes liability on the
6renter for collision damage to the full value of the vehicle:
7

8“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
9AND OPTIONAL DAMAGE WAIVER
10

11You are responsible for all collision damage to the rented vehicle
12even if someone else caused it or the cause is unknown. You are
13responsible for the cost of repair up to the value of the vehicle,
14and towing, storage, and impound fees.

15Your own insurance, or the issuer of the credit card you use to
16pay for the car rental transaction, may cover all or part of your
17financial responsibility for the rented vehicle. You should check
18with your insurance company, or credit card issuer, to find out
19about your coverage and the amount of the deductible, if any, for
20which you may be liable.

21Further, if you use a credit card that provides coverage for your
22potential liability, you should check with the issuer to determine
23if you must first exhaust the coverage limits of your own insurance
24before the credit card coverage applies.

25The rental company will not hold you responsible if you buy a
26damage waiver. But a damage waiver will not protect you if (list
27exceptions).”

28(A) When the above notice is printed in the rental contract or
29holder in which the contract is placed, the following shall be printed
30immediately following the notice:

31“The cost of an optional damage waiver is $____ for every (day
32or week).”

33(B) When the above notice appears on a sign, the following
34shall appear immediately adjacent to the notice:

35“The cost of an optional damage waiver is $____ to $____ for
36every (day or week), depending upon the vehicle rented.”

37(h) Notwithstanding any other provision of law, a rental
38company may sell a damage waiver subject to the following rate
39limitations for each full or partial 24-hour rental day for the damage
40waiver:

P11   1(1) For rental vehicles that the rental company designates as an
2“economy car,” “compact car,” or another term having similar
3meaning to the two smallest body-size categories of vehicles
4 established by the Association of Car Rental Industry Systems
5Standards for North America,begin insert as of January 1, 2014,end insert when offered
6for rental, the rate shall not exceed eleven dollars ($11).

7(2) For rental vehicles, that the rental company designates as
8an “intermediate car,” “standard car,” or “fullsize car,” or another
9term having similar meaning to the next three body-size categories
10of vehicles established by the Association of Car Rental Industry
11Systems Standards for North America,begin insert as of January 1, 2014, and
12that are also either vehicles of the next model year or not older
13than the previous year’s model, end insert
when offered for rental, the rate
14shall not exceed seventeen dollars ($17).begin insert For rental vehicles that
15are older than the previous year’s model year, the rate shall not
16exceed eleven dollars ($11). end insert

17(i) A rental company that disseminates in this state an
18 advertisement containing a rental rate shall include in that
19advertisement a clearly readable statement of the charge for a
20damage waiver and a statement that a damage waiver is optional.

21(j) (1) A rental company shall not require the purchase of a
22damage waiver, optional insurance, or another optional good or
23service.

24(2) A rental company shall not engage in any unfair, deceptive,
25or coercive conduct to induce a renter to purchase the damage
26waiver, optional insurance, or another optional good or service,
27including conduct such as, but not limited to, refusing to honor
28the renter’s reservation, limiting the availability of vehicles,
29requiring a deposit, or debiting or blocking the renter’s credit card
30account for a sum equivalent to a deposit if the renter declines to
31purchase the damage waiver, optional insurance, or another
32optional good or service.

33(k) (1) In the absence of express permission granted by the
34renter subsequent to damage to, or loss of, the vehicle, a rental
35company shall not seek to recover any portion of a claim arising
36out of damage to, or loss of, the rented vehicle by processing a
37credit card charge or causing a debit or block to be placed on the
38renter’s credit card account.

P12   1(2) A rental company shall not engage in any unfair, deceptive,
2or coercive tactics in attempting to recover or in recovering on any
3claim arising out of damage to, or loss of, the rented vehicle.

4(l) (1) A customer facility charge may be collected by a rental
5company under the following circumstances:

6(A) Collection of the fee by the rental company is required by
7an airport operated by a city, a county, a city and county, a joint
8powers authority, a special district, or the San Diego County
9Regional Airport Authority formed pursuant to Division 17
10(commencing with Section 170000) of the Public Utilities Code.

11(B) The fee is calculated on a per contract basis or as provided
12in paragraph (2).

13(C) The fee is a user fee, not a tax imposed upon real property
14or an incident of property ownership under Article XIII D of the
15California Constitution.

16(D) Except as otherwise provided in subparagraph (E), the fee
17shall be ten dollars ($10) per contract or the amount provided in
18paragraph (2).

19(E) The fee for a consolidated rental car facility shall be
20collected only from customers of on-airport rental car companies.
21If the fee imposed by the airport is for both a consolidated rental
22car facility and a common-use transportation system, the fee
23collected from customers of on-airport rental car companies shall
24be ten dollars ($10) or the amount provided in paragraph (2), but
25the fee imposed on customers of off-airport rental car companies
26who are transported on the common-use transportation system is
27proportionate to the costs of the common-use transportation system
28only. The fee is uniformly applied to each class of on-airport or
29off-airport customers, provided that the airport requires off-airport
30customers to use the common-use transportation system. For
31purposes of this subparagraph, “on-airport rental car company”
32means a rental company operating under an airport property lease
33or an airport concession or license agreement whose customers
34use or will use the consolidated rental car facility and the collection
35of the fee as to those customers is consistent with subparagraph
36(C).

37(F) Revenues collected from the fee do not exceed the reasonable
38costs of financing, designing, and constructing the facility and
39financing, designing, constructing, and operating any common-use
P13   1transportation system, or acquiring vehicles for use in that system,
2and shall not be used for any other purpose.

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

4(H) This paragraph does not apply to fees which are governed
5by Section 50474.1 of the Government Code or Section 57.5 of
6the San Diego Unified Port District Act (Chapter 67 of the First
7Extraordinary Session of the Statutes of 1962).

8(I) For any airport seeking to require rental car companies to
9collect an alternative customer facility charge pursuant to paragraph
10(2), the following provisions apply:

11(i) Notwithstanding Section 10231.5 of the Government Code,
12the airport shall provide reports on an annual basis to the Senate
13and Assembly Committees on Judiciary detailing all of the
14following:

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

16(II) How the funds are being spent.

17(III) The amount of and reason for any changes in the airport’s
18budget or financial needs for the facility or common-use
19transportation system.

20(IV) Whether airport concession fees authorized by Section
211936.01 have increased since the prior report, if any.

22(ii) (I) The airport shall complete the audit required by
23subparagraph (B) of paragraph (4) of subdivision (a) prior to the
24initial collection of the customer facility charge. Notwithstanding
25Section 10231.5 of the Government Code, copies of the audit shall
26be provided to the Assembly and Senate Committees on Judiciary,
27the Assembly Committee on Transportation, and the Senate
28Committee on Transportation and Housing and shall be posted on
29the airport’s Internet Web site.

30(II) Prior to any increase pursuant to paragraph (2), the airport
31shall update the information provided in the initial collection audit
32pursuant to subclause (I). Notwithstanding Section 10231.5 of the
33Government Code, copies of the updated audit shall be provided
34to the Assembly and Senate Committees on Judiciary, the
35Assembly Committee on Transportation, and the Senate Committee
36on Transportation and Housing, and shall be posted on the airport’s
37Internet Web site.

38(III) An audit shall be completed every three years after initial
39collection only if the customer facility charge is collected for the
40purpose of operating a common-use transportation system or to
P14   1acquire vehicles for use in the system pursuant to clause (ii) of
2subparagraph (A) of paragraph (4) of subdivision (a). A regularly
3conducted audit of airport finances that includes the customer
4facility charge information, that satisfies the requirements of
5subparagraph (B) of paragraph (4) of subdivision (a), and is
6produced in accordance with the generally accepted accounting
7principles of the Government Accounting Standards Board, shall
8satisfy the requirements of this subclause. This obligation shall
9continue until the fee authorization becomes inoperative pursuant
10to subparagraph (C) of paragraph (4) of subdivision (a).
11Notwithstanding Section 10231.5 of the Government Code, the
12information reported pursuant to this subclause shall be compiled
13into one document, shall be provided to the Assembly and Senate
14Committees on Judiciary, the Assembly Committee on
15Transportation, and the Senate Committee on Transportation and
16Housing and shall be posted on the airport’s Internet Web site
17accessible to the public. The information reported shall be
18contained within one easily accessible page contained within the
19airport’s Internet Web site.

20(IV) This section shall not be construed to require an airport to
21audit a common-use transportation system not financed by a
22customer facility charge and used for the purposes permitted
23pursuant to clause (ii) of subparagraph (A) of paragraph (4) of
24subdivision (a).

25(V) The airport shall post on the airport’s Internet Web site
26copies of the completed audits required by this clause for a period
27of six years following the audit’s completion.

28(iii) Use of the bonds shall be limited to construction and design
29of the consolidated rental car facility, terminal modifications, and
30operating costs of the common-use transportation system, as
31specified in paragraph (4) of subdivision (a).

32(2) Any airport may require rental car companies to collect an
33alternative customer facility charge under the following conditions:

34(A) The airport first conducts a publicly noticed hearing pursuant
35to the Ralph M. Brown Act (Chapter 9 (commencing with Section
3654950) of Part 1 of Division 2 of Title 5 of the Government Code)
37to review the costs of financing the design and construction of a
38consolidated rental car facility and the design, construction, and
39operation of any common-use transportation system in which all
40of the following occur:

P15   1(i) The airport establishes the amount of revenue necessary to
2finance the reasonable cost to design and construct a consolidated
3rental car facility and to design, construct, and operate any
4common-use transportation system, or acquire vehicles for use in
5that system, based on evidence presented during the hearing.

6(ii) The airport finds, based on evidence presented during the
7hearing, that the fee authorized in paragraph (1) will not generate
8sufficient revenue to finance the reasonable costs to design and
9construct a consolidated rental car facility and to design, construct,
10and operate any common-use transportation system, or acquire
11vehicles for use in that system.

12(iii) The airport finds that the reasonable cost of the project
13requires the additional amount of revenue that would be generated
14by the proposed daily rate, including any rate increase, authorized
15pursuant to this paragraph.

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

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

18(II) Other potential alternatives for meeting its revenue needs
19other than the collection of the fee.

20(III) The extent to which rental car companies or other
21businesses or individuals using the facility or common-use
22transportation system will pay for the costs associated with these
23facilities and systems other than the fee from rental customers.

24(B) The airport may not require the fee authorized in this
25paragraph to be collected at any time that the fee authorized in
26paragraph (1) of this subdivision is being collected.

27(C) Pursuant to the procedure set forth in this subdivision, the
28fee may be collected at a rate charged on a per-day basis subject
29to the following conditions:

30(i) Commencing January 1, 2011, the amount of the fee may
31not exceed six dollars ($6) per day.

32(ii) Commencing January 1, 2014, the amount of the fee may
33not exceed seven dollars and fifty cents ($7.50) per day.

34(iii) Commencing January 1, 2017, and thereafter, the amount
35of the fee may not exceed nine dollars ($9) per day.

36(iv) At no time shall the fee authorized in this paragraph be
37collected from any customer for more than five days for each
38individual rental car contract.

39(v) An airport subject to this paragraph shall initiate the process
40for obtaining the authority to require or increase the alternative
P16   1fee no later than January 1, 2018. Any airport that obtains the
2authority to require or increase an alternative fee shall be authorized
3to continue collecting that fee until the fee authorization becomes
4inoperative pursuant to subparagraph (C) of paragraph (4) of
5subdivision (a).

6(3) Notwithstanding any other provision of law, including, but
7not limited to, Part 1 (commencing with Section 6001) to Part 1.7
8(commencing with Section 7280), inclusive, of Division 2 of the
9Revenue and Taxation Code, the fees collected pursuant to this
10section, or another law whereby a local agency operating an airport
11requires a rental car company to collect a facility financing fee
12from its customers, are not subject to sales, use, or transaction
13taxes.

14(m) (1) A rental company shall only advertise, quote, and charge
15a rental rate that includes the entire amount except taxes, a
16customer facility charge, if any, and a mileage charge, if any, that
17a renter must pay to hire or lease the vehicle for the period of time
18to which the rental rate applies. A rental company shall not charge
19in addition to the rental rate, taxes, a customer facility charge, if
20any, and a mileage charge, if any, any fee that is required to be
21paid by the renter as a condition of hiring or leasing the vehicle,
22including, but not limited to, required fuel or airport surcharges
23other than customer facility charges, nor a fee for transporting the
24renter to the location where the rented vehicle will be delivered to
25the renter.

26(2) In addition to the rental rate, taxes, customer facility charges,
27if any, and mileage charges, if any, a rental company may charge
28for an item or service provided in connection with a particular
29rental transaction if the renter could have avoided incurring the
30charge by choosing not to obtain or utilize the optional item or
31service. Items and services for which the rental company may
32impose an additional charge include, but are not limited to, optional
33insurance and accessories requested by the renter, service charges
34incident to the renter’s optional return of the vehicle to a location
35other than the location where the vehicle was hired or leased, and
36charges for refueling the vehicle at the conclusion of the rental
37transaction in the event the renter did not return the vehicle with
38as much fuel as was in the fuel tank at the beginning of the rental.
39A rental company also may impose an additional charge based on
40reasonable age criteria established by the rental company.

P17   1(3) A rental company shall not charge a fee for authorized
2drivers in addition to the rental charge for an individual renter.

3(4) If a rental company states a rental rate in print advertisement
4or in a telephonic, in-person, or computer-transmitted quotation,
5the rental company shall disclose clearly in that advertisement or
6quotation the terms of mileage conditions relating to the advertised
7or quoted rental rate, including, but not limited to, to the extent
8applicable, the amount of mileage and gas charges, the number of
9miles for which no charges will be imposed, and a description of
10geographic driving limitations within the United States and Canada.

11(5) (A) When a rental rate is stated in an advertisement,
12quotation, or reservation in connection with a car rental at an airport
13where a customer facility charge is imposed, the rental company
14shall disclose clearly the existence and amount of the customer
15facility charge. For purposes of this subparagraph, advertisements
16include radio, television, other electronic media, and print
17advertisements. For purposes of this subparagraph, quotations and
18reservations include those that are telephonic, in-person, and
19computer-transmitted. If the rate advertisement is intended to
20include transactions at more than one airport imposing a customer
21facility charge, a range of fees may be stated in the advertisement.
22However, all rate advertisements that include car rentals at airport
23destinations shall clearly and conspicuously include a toll-free
24telephone number whereby a customer can be told the specific
25amount of the customer facility charge to which the customer will
26be obligated.

27(B) If a person or entity other than a rental car company,
28including a passenger carrier or a seller of travel services, advertises
29or quotes a rate for a car rental at an airport where a customer
30facility charge is imposed, that person or entity shall, provided
31that he, she, or it is provided with information about the existence
32 and amount of the fee, to the extent not specifically prohibited by
33federal law, clearly disclose the existence and amount of the fee
34in any telephonic, in-person, or computer-transmitted quotation at
35the time of making an initial quotation of a rental rate and at the
36time of making a reservation of a rental car. If a rental car company
37provides the person or entity with rate and customer facility charge
38information, the rental car company is not responsible for the
39failure of that person or entity to comply with this subparagraph
40when quoting or confirming a rate to a third person or entity.

P18   1(6) If a rental company delivers a vehicle to a renter at a location
2other than the location where the rental company normally carries
3on its business, the rental company shall not charge the renter an
4amount for the rental for the period before the delivery of the
5vehicle. If a rental company picks up a rented vehicle from a renter
6at a location other than the location where the rental company
7normally carries on its business, the rental company shall not
8charge the renter an amount for the rental for the period after the
9renter notifies the rental company to pick up the vehicle.

10(n) A rental company shall not use, access, or obtain any
11information relating to the renter’s use of the rental vehicle that
12was obtained using electronic surveillance technology, except in
13the following circumstances:

14(1) (A) When the equipment is used by the rental company
15only for the purpose of locating a stolen, abandoned, or missing
16rental vehicle after one of the following:

17(i) The renter or law enforcement has informed the rental
18company that the vehicle is missing or has been stolen or
19abandoned.

20(ii) The rental vehicle has not been returned following one week
21after the contracted return date, or by one week following the end
22of an extension of that return date.

23(iii) The rental company discovers the rental vehicle has been
24stolen or abandoned, and, if stolen, it shall report the vehicle stolen
25to law enforcement by filing a stolen vehicle report, unless law
26enforcement has already informed the rental company that the
27vehicle is missing or has been stolen or abandoned.

28(B) If electronic surveillance technology is activated pursuant
29to subparagraph (A), a rental company shall maintain a record, in
30either electronic or written form, of information relevant to the
31activation of that technology. That information shall include the
32rental agreement, including the return date, and the date and time
33the electronic surveillance technology was activated. The record
34shall also include, if relevant, a record of written or other
35communication with the renter, including communications
36regarding extensions of the rental, police reports, or other written
37communication with law enforcement officials. The record shall
38be maintained for a period of at least 12 months from the time the
39record is created and shall be made available upon the renter’s
40 request. The rental company shall maintain and furnish explanatory
P19   1codes necessary to read the record. A rental company shall not be
2required to maintain a record if electronic surveillance technology
3is activated to recover a rental vehicle that is stolen or missing at
4a time other than during a rental period.

5(2) In response to a specific request from law enforcement
6pursuant to a subpoena or search warrant.

7(3) This subdivision does not prohibit a rental company from
8equipping rental vehicles with GPS-based technology that provides
9navigation assistance to the occupants of the rental vehicle, if the
10rental company does not use, access, or obtain information relating
11to the renter’s use of the rental vehicle that was obtained using
12that technology, except for the purposes of discovering or repairing
13a defect in the technology and the information may then be used
14only for that purpose.

15(4) This subdivision does not prohibit a rental company from
16equipping rental vehicles with electronic surveillance technology
17that allows for the remote locking or unlocking of the vehicle at
18the request of the renter, if the rental company does not use, access,
19or obtain information relating to the renter’s use of the rental
20vehicle that was obtained using that technology, except as
21necessary to lock or unlock the vehicle.

22(5) This subdivision does not prohibit a rental company from
23equipping rental vehicles with electronic surveillance technology
24that allows the company to provide roadside assistance, such as
25towing, flat tire, or fuel services, at the request of the renter, if the
26rental company does not use, access, or obtain information relating
27to the renter’s use of the rental vehicle that was obtained using
28that technology except as necessary to provide the requested
29roadside assistance.

30(6) This subdivision does not prohibit a rental company from
31obtaining, accessing, or using information from electronic
32surveillance technology for the sole purpose of determining the
33date and time the vehicle is returned to the rental company, and
34the total mileage driven and the vehicle fuel level of the returned
35vehicle. This paragraph, however, shall apply only after the renter
36has returned the vehicle to the rental company, and the information
37shall only be used for the purpose described in this paragraph.

38(o) A rental company shall not use electronic surveillance
39technology to track a renter in order to impose fines or surcharges
40relating to the renter’s use of the rental vehicle.

P20   1(p) A renter may bring an action against a rental company for
2the recovery of damages and appropriate equitable relief for a
3violation of this section. The prevailing party shall be entitled to
4recover reasonable attorney’s fees and costs.

5(q) A rental company that brings an action against a renter for
6loss due to theft of the vehicle shall bring the action in the county
7in which the renter resides or, if the renter is not a resident of this
8state, in the jurisdiction in which the renter resides.

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

11(s) (1) A rental company’s disclosure requirements shall be
12satisfied for renters who are enrolled in the rental company’s
13membership program if all of the following conditions are met:

14(A) Prior to the enrollee’s first rental as a participant in the
15program, the renter receives, in writing, the following:

16(i) All of the disclosures required by paragraph (1) of subdivision
17(g), including the terms and conditions of the rental agreement
18then in effect.

19(ii) An Internet Web site address, as well as a contact number
20or address, where the enrollee can learn of changes to the rental
21agreement or to the laws of this state governing rental agreements
22since the effective date of the rental company’s most recent
23restatement of the rental agreement and distribution of that
24restatement to its members.

25(B) At the commencement of each rental period, the renter is
26provided, on the rental record or the folder in which it is inserted,
27with a printed notice stating that he or she had either previously
28selected or declined an optional damage waiver and that the renter
29has the right to change preferences.

30(C) At the commencement of each rental period, the rental
31company provides, on the rearview mirror, a hanger on which a
32statement is printed, in a box, in at least 12-point boldface type,
33notifying the renter that the collision damage waiver offered by
34the rental company may be duplicative of coverage that the
35customer maintains under his or her own policy of motor vehicle
36insurance. If it is not feasible to hang the statement from the
37rearview mirror, it shall be hung from the steering wheel.

38The hanger shall provide the renter a box to initial if he or she
39(not his or her employer) has previously accepted or declined the
40collision damage waiver and that he or she now wishes to change
P21   1his or her decision to accept or decline the collision damage waiver,
2as follows:


3“If I previously accepted the collision damage waiver, I now
4decline it.

   
5If I previously declined the collision damage waiver, I now
6accept it.”

7The hanger shall also provide a box for the enrollee to indicate
8whether this change applies to this rental transaction only or to all
9future rental transactions. The hanger shall also notify the renter
10that he or she may make that change, prior to leaving the lot, by
11returning the form to an employee designated to receive the form
12who is present at the lot where the renter takes possession of the
13car, to receive any change in the rental agreement from the renter.

14(2) (A) This subdivision is not effective unless the employee
15designated pursuant to subparagraph (E) of paragraph (8) of
16subdivision (a) is actually present at the required location.

17(B) This subdivision does not relieve the rental company from
18the disclosures required to be made within the text of a contract
19or holder in which the contract is placed; in or on an advertisement
20containing a rental rate; or in a telephonic, in-person, or
21computer-transmitted quotation or reservation.

22(t) The amendments made to this section during the 2001-02
23Regular Session of the Legislature do not affect litigation pending
24on or before January 1, 2003, alleging a violation of Section 22325
25of the Business and Professions Code as it read at the time the
26action was commenced.

27

SEC. 2.  

Section 1936.01 of the Civil Code is amended to read:

28

1936.01.  

(a) For the purpose of this section, the following
29definitions shall apply:

30(1) “Airport concession fee” means a charge collected by a
31rental company from a renter that is the renter’s proportionate
32share of the amount paid by the rental company to the owner or
33operator of an airport for the right or privilege of conducting a
34vehicle rental business on the airport’s premises.

35(2) “Quote” means an estimated cost of rental provided by a
36rental company or a third party to a potential customer by
37telephone, in-person, computer-transmission, or other means, that
38is based on information provided by the potential customer and
39used to generate an estimated cost of rental, including, but not
P22   1limited to, any of the following: potential dates of rental, locations,
2or classes of car.

3(3) “Tourism commission assessment” means the charge
4collected by a rental company from a renter that has been
5established by the California Travel and Tourism Commission
6pursuant to Section 13995.65 of the Government Code.

7(b) Notwithstanding subdivision (m) of Section 1936, the
8following provisions shall apply:

9(1) A rental company shall only advertise a rental rate that
10includes the entire amount, except taxes, a customer facility charge,
11if any, and a mileage charge, if any, that a renter must pay to hire
12 or lease the vehicle for the period of time to which the rental rate
13applies.

14(2) When providing a quote, or imposing charges for a rental,
15the rental company may separately state the rental rate, taxes,
16customer facility charge, if any, airport concession fee, if any,
17tourism commission assessment, if any, and a mileage charge, if
18any, that a renter must pay to hire or lease the vehicle for the period
19of time to which the rental rate applies. A rental company may not
20charge in addition to the rental rate, taxes, a customer facility
21charge, if any, airport concession fee, if any, tourism commission
22assessment, if any, and a mileage charge, if any, any fee that must
23be paid by the renter as a condition of hiring or leasing the vehicle,
24such as, but not limited to, required fuel or airport surcharges other
25than customer facility charges and airport concession fees.

26(3) If customer facility charges, airport concession fees, or
27tourism commission assessments are imposed, the rental company
28shall do each of the following:

29(A) At the time the quote is given, provide the person receiving
30the quote with a good faith estimate of the rental rate, taxes,
31customer facility charge, if any, airport concession fee, if any, and
32tourism commission assessment, if any, as well as the total charges
33for the entire rental. The total charges, if provided on an Internet
34Web site, shall be displayed in a typeface at least as large as any
35rental rate disclosed on that page and shall be provided on a page
36that the person receiving the quote may reach by following links
37through no more than two Internet Web site pages, including the
38page on which the rental rate is first provided. The good faith
39estimate may exclude mileage charges and charges for optional
P23   1items that cannot be determined prior to completing the reservation
2based upon the information provided by the person.

3(B) At the time and place the rental commences, clearly and
4conspicuously disclose in the rental contract, or that portion of the
5contract that is provided to the renter, the total of the rental rate,
6taxes, customer facility charge, if any, airport concession fee, if
7any, and tourism commission assessment, if any, for the entire
8rental, exclusive of charges that cannot be determined at the time
9the rental commences. Charges imposed pursuant to this
10subparagraph shall be no more than the amount of the quote
11provided in a confirmed reservation, unless the person changes
12the terms of the rental contract subsequent to making the
13reservation.

14(C) Provide each person, other than those persons within the
15rental company, offering quotes to actual or prospective customers
16access to information about customer facility charges, airport
17concession fees, and tourism commission assessments as well as
18access to information about when those charges apply. Any person
19providing quotes to actual or prospective customers for the hire
20or lease of a vehicle from a rental company shall provide the quotes
21in the manner described in subparagraph (A).

22(4) In addition to the rental rate, taxes, customer facility charges,
23if any, airport concession fees, if any, tourism commission
24assessments, if any, and mileage charges, if any, a rental company
25may charge for an item or service provided in connection with a
26particular rental transaction if the renter could have avoided
27incurring the charge by choosing not to obtain or utilize the
28optional item or service. Items and services for which the rental
29company may impose an additional charge, include, but are not
30limited to, optional insurance and accessories requested by the
31renter, service charges incident to the renter’s optional return of
32the vehicle to a location other than the location where the vehicle
33was hired or leased, and charges for refueling the vehicle at the
34conclusion of the rental transaction in the event the renter did not
35return the vehicle with as much fuel as was in the fuel tank at the
36beginning of the rental. A rental company also may impose an
37additional charge based on reasonable age criteria established by
38the rental company.

39(5) A rental company may not charge any fee for authorized
40drivers in addition to the rental charge for an individual renter.

P24   1(6) If a rental company states a rental rate in print advertisement
2or in a telephonic, in-person, or computer-transmitted quote, the
3rental company shall clearly disclose in that advertisement or quote
4the terms of any mileage conditions relating to the rental rate
5disclosed in the advertisement or quote, including, but not limited
6to, to the extent applicable, the amount of mileage and gas charges,
7the number of miles for which no charges will be imposed, and a
8description of geographic driving limitations within the United
9States and Canada.

10(7) (A) When a rental rate is stated in an advertisement, in
11connection with a car rental at an airport where a customer facility
12charge is imposed, the rental company shall clearly disclose the
13existence and amount of the customer facility charge. For the
14purposes of this subparagraph, advertisements include radio,
15television, other electronic media, and print advertisements. If the
16rental rate advertisement is intended to include transactions at more
17than one airport imposing a customer facility charge, a range of
18charges may be stated in the advertisement. However, all rental
19rate advertisements that include car rentals at airport destinations
20shall clearly and conspicuously include a toll-free telephone
21number whereby a customer can be told the specific amount of
22the customer facility charge to which the customer will be
23obligated.

24(B) If any person or entity other than a rental car company,
25including a passenger carrier or a seller of travel services, advertises
26a rental rate for a car rental at an airport where a customer facility
27charge is imposed, that person or entity shall, provided they are
28provided with information about the existence and amount of the
29charge, to the extent not specifically prohibited by federal law,
30clearly disclose the existence and amount of the charge. If a rental
31car company provides the person or entity with rental rate and
32customer facility charge information, the rental car company is
33not responsible for the failure of that person or entity to comply
34with this subparagraph.

35(8) If a rental company delivers a vehicle to a renter at a location
36other than the location where the rental company normally carries
37on its business, the rental company may not charge the renter any
38amount for the rental for the period before the delivery of the
39vehicle. If a rental company picks up a rented vehicle from a renter
40at a location other than the location where the rental company
P25   1normally carries on its business, the rental company may not charge
2the renter any amount for the rental for the period after the renter
3notifies the rental company to pick up the vehicle.

4(9) Except as otherwise permitted pursuant to the customer
5facility charge, a rental company may not separately charge, in
6addition to the rental rate, a fee for transporting the renter to the
7location where the rented vehicle will be delivered to the renter.

8(c) A renter may bring an action against a rental company for
9the recovery of damages and appropriate equitable relief for a
10violation of this section. The prevailing party shall be entitled to
11recover reasonable attorney’s fees and costs.

12(d) Any waiver of any of the provisions of this section shall be
13void and unenforceable as contrary to public policy.

14(e) This section shall become operative only if the Secretary of
15Business, Transportation and Housing provides notice to the
16Legislature and the Secretary of State and posts notice on its
17Internet Web site that the conditions described in Section 13995.92
18of the Government Code have been satisfied.

19

SEC. 3.  

Section 1936.015 of the Civil Code is amended to
20read:

21

1936.015.  

(a) For the purposes of this section, the following
22definitions shall apply:

23(1) “Vehicle license fee” has the same meaning as in Sections
2410751 and 10752 of the Revenue and Taxation Code, as that fee
25existed on January 1, 2009.

26(2) “Increased vehicle license fee” means the amount of the fee
27increase in the vehicle license fee above 0.65 percent of the value
28of the vehicle.

29(3) “Increased vehicle license recovery fee” means a charge
30that seeks to recover the amount of increased vehicle license fees
31actually paid by a rental company for the particular class of vehicle
32being rented. The increased vehicle license recovery fee shall be
33calculated as provided in paragraph (1) of subdivision (b).

34(b) Notwithstanding subdivision (m) of Section 1936 or
35subdivision (b) of Section 1936.01, upon an increase of the vehicle
36license fee above 0.65 percent of the value of the vehicle pursuant
37to legislation enacted with the Budget Act of 2009, the following
38provisions shall apply with respect to the increased vehicle license
39fee:

P26   1(1) A rental company shall calculate the amount of the increased
2vehicle license recovery fee in the following manner:

3(A) The initial calculation required by this section shall be made
4as of August 21, 2009, and shall include the three-month period
5of May 21, 2009, to August 21, 2009, inclusive. Subsequent
6calculations shall be made every three months thereafter.

7(B) The rental company shall determine the total amount of the
8increased vehicle license fee actually paid during the twelve months
9preceding the calculation date, for each particular class of vehicle
10being rented.

11(C) The total amount of increased vehicle license fee actually
12paid for each class of vehicle shall be divided by the number of
13vehicles in the class, to determine the average increased vehicle
14license fee for each class.

15(D) The average increased vehicle license fee for vehicles in
16each class shall be prorated at one three-hundred-and-sixty-fifth,
17to determine the daily increased vehicle license recovery fee for
18vehicles in each particular class of vehicle, to be charged for each
19full or partial 24-hour rental day that the vehicle is rented.

20(2) As of November 21, 2009, and annually as of each
21November 21 thereafter, a rental company shall reconcile the
22amount of increased vehicle license fees actually paid by the rental
23company during the preceding 12 months for each class of vehicle
24and the amount of increased vehicle license recovery fees charged
25to customers during that same 12-month period for rental of
26vehicles in those classes. The rental company shall post that
27information on its Internet Web site by December 31 of each year.

28(3) The total of all increased vehicle license fees charged to
29customers by the rental company for each class of vehicle shall
30not exceed the total of increased vehicle license recovery fees
31actually paid for vehicles in those classes on an annual basis.

32(4) A rental company shall only advertise a rental rate that
33includes the entire amount, except taxes, the increased vehicle
34license recovery fee, a customer facility charge, if any, and a
35mileage charge, if any, that a renter must pay to hire or lease the
36vehicle for the period of time to which the rental rate applies.

37(5) When providing a quote, or imposing charges for a rental,
38the rental company may separately state the rental rate, taxes, the
39increased vehicle license recovery fee, customer facility charge,
40if any, airport concession fee, if any, tourism commission
P27   1assessment, if any, and a mileage charge, if any, that a renter must
2pay to hire or lease the vehicle for the period of time to which the
3rental rate applies. A rental company may not charge in addition
4to the rental rate, taxes, the increased vehicle license recovery fee,
5a customer facility charge, if any, airport concession fee, if any,
6tourism commission assessment, if any, and a mileage charge, if
7any, any fee that must be paid by the renter as a condition of hiring
8or leasing the vehicle, such as, but not limited to, required fuel or
9airport surcharges other than customer facility charges and airport
10concession fees.

11(6) If customer facility charges, airport concession fees, or
12tourism commission assessments are imposed, the rental company
13shall do each of the following:

14(A) At the time the quote is given, provide the person receiving
15the quote with a good faith estimate of the rental rate, taxes, the
16increased vehicle license recovery fee, customer facility charge,
17if any, airport concession fee, if any, and tourism commission
18assessment, if any, as well as the total charges for the entire rental.
19The total charges, if provided on an Internet Web site, shall be
20displayed in a typeface at least as large as any rental rate disclosed
21on that page and shall be provided on a page that the person
22receiving the quote may reach by following links through no more
23than two Internet Web site pages, including the page on which the
24rental rate is first provided. The good faith estimate may exclude
25mileage charges and charges for optional items that cannot be
26determined prior to completing the reservation based upon the
27information provided by the person.

28(B) At the time and place the rental commences, clearly and
29conspicuously disclose in the rental contract, or that portion of the
30contract that is provided to the renter, the total of the rental rate,
31taxes, the increased vehicle license recovery fee, customer facility
32charge, if any, airport concession fee, if any, and tourism
33commission assessment, if any, for the entire rental, exclusive of
34charges that cannot be determined at the time the rental
35commences. Charges imposed pursuant to this subparagraph shall
36be no more than the amount of the quote provided in a confirmed
37reservation, unless the person changes the terms of the rental
38contract subsequent to making the reservation.

39(C) Provide each person, other than those persons within the
40rental company, offering quotes to actual or prospective customers
P28   1access to information about the increased vehicle license recovery
2fee, customer facility charges, airport concession fees, and tourism
3commission assessments as well as access to information about
4when those charges apply. Any person providing quotes to actual
5or prospective customers for the hire or lease of a vehicle from a
6rental company shall provide the quotes in the manner described
7in subparagraph (A).

8(7) In addition to the rental rate, taxes, the increased vehicle
9license recovery fee, customer facility charges, if any, airport
10concession fees, if any, tourism commission assessments, if any,
11and mileage charges, if any, a rental company may charge for an
12item or service provided in connection with a particular rental
13transaction if the renter could have avoided incurring the charge
14by choosing not to obtain or utilize the optional item or service.
15Items and services for which the rental company may impose an
16additional charge, include, but are not limited to, optional insurance
17and accessories requested by the renter, service charges incident
18to the renter’s optional return of the vehicle to a location other
19than the location where the vehicle was hired or leased, and charges
20for refueling the vehicle at the conclusion of the rental transaction
21in the event the renter did not return the vehicle with as much fuel
22as was in the fuel tank at the beginning of the rental. A rental
23company also may impose an additional charge based on
24reasonable age criteria established by the rental company.

25(8) A rental company may not charge any fee for authorized
26drivers in addition to the rental charge for an individual renter.

27(9) If a rental company states a rental rate in print advertisement
28or in a telephonic, in-person, or computer-transmitted quote, the
29rental company shall clearly disclose in that advertisement or quote
30the terms of any mileage conditions relating to the rental rate
31disclosed in the advertisement or quote, including, but not limited
32to, to the extent applicable, the amount of mileage and gas charges,
33the number of miles for which no charges will be imposed, and a
34description of geographic driving limitations within the United
35States and Canada.

36(10) (A) When a rental rate is stated in an advertisement, in
37connection with a car rental at an airport where a customer facility
38charge is imposed, the rental company shall clearly disclose the
39existence and amount of the customer facility charge. For the
40purposes of this subparagraph, advertisements include radio,
P29   1television, other electronic media, and print advertisements. If the
2rental rate advertisement is intended to include transactions at more
3than one airport imposing a customer facility charge, a range of
4charges may be stated in the advertisement. However, all rental
5rate advertisements that include car rentals at airport destinations
6shall clearly and conspicuously include a toll-free telephone
7number whereby a customer can be told the specific amount of
8the customer facility charge to which the customer will be
9obligated.

10(B) If any person or entity other than a rental company, including
11a passenger carrier or a seller of travel services, advertises a rental
12rate for a car rental at an airport where a customer facility charge
13is imposed, that person or entity shall, provided they are provided
14with information about the existence and amount of the charge, to
15the extent not specifically prohibited by federal law, clearly
16disclose the existence and amount of the charge. If a rental
17company provides the person or entity with rental rate and customer
18facility charge information, the rental company is not responsible
19for the failure of that person or entity to comply with this
20subparagraph.

21(11) If a rental company delivers a vehicle to a renter at a
22location other than the location where the rental company normally
23carries on its business, the rental company may not charge the
24renter any amount for the rental for the period before the delivery
25of the vehicle. If a rental company picks up a rented vehicle from
26a renter at a location other than the location where the rental
27company normally carries on its business, the rental company may
28not charge the renter any amount for the rental for the period after
29the renter notifies the rental company to pick up the vehicle.

30(12) Except as otherwise permitted pursuant to the customer
31facility charge, a rental company may not separately charge, in
32addition to the rental rate, a fee for transporting the renter to the
33location where the rented vehicle will be delivered to the renter.

34(c) A renter may bring an action against a rental company for
35the recovery of damages and appropriate equitable relief for a
36violation of this section. The prevailing party shall be entitled to
37recover reasonable attorney’s fees and costs.

38(d) Any waiver of any of the provisions of this section shall be
39void and unenforceable as contrary to public policy.

P30   1(e) (1) This section shall become operative only if Senate Bill
23 or Assembly Bill 3 of the 2009-10 Third Extraordinary Session
3of the Legislature is enacted and increases the vehicle license fee
4above 0.65 percent of the value of the vehicle and shall cease to
5become operative 12 months after the restoration of the vehicle
6license fee to no more than 0.65 percent of the value of the vehicle.

7(2) Provisions of this section relating to the disclosure and
8separately stated charges for a customer facility charge or an airport
9concession fee shall remain operative so long as the Secretary of
10Business, Transportation and Housing provides notice to the
11Legislature and the Secretary of State and posts notice on its
12Internet Web site that the conditions described in Section 13995.92
13of the Government Code have been satisfied.

14

SEC. 4.  

Section 1936.05 of the Civil Code is amended to read:

15

1936.05.  

(a) For purposes of this section:

16(1) “Additional charges” means charges other than a per period
17base rental rate established by the business program.

18(2) “Business program” means (A) a contract between a rental
19company and a business program sponsor that has established the
20per period base rental rate, and any other material terms relating
21to additional charges, on which the rental company will rent
22passenger vehicles to persons authorized by the sponsor, or (B) a
23plan, program, or other arrangement established by a rental
24company at the request of, or with the consent of, a business
25 program sponsor under which the rental company offers to rent
26passenger vehicles to persons authorized by the sponsor at per
27period base rental rates, and any other material terms relating to
28additional charges, that are not the same as those generally offered
29by the rental company to the public.

30(3) “Business program sponsor” means a legal entity, other than
31a natural person, that is a corporation, limited liability company,
32or partnership.

33(4) “Business renter” means, for any business program sponsor,
34a person who is authorized by the sponsor, through the use of an
35identifying number or program name or code, to enter into a rental
36contract under the sponsor’s business program. In no case shall
37the term “business renter” include a person renting as: (A) a
38nonemployee member of a not-for-profit organization, (B) the
39purchaser of a voucher or other prepaid rental arrangement from
40a person, including a tour operator, engaged in the business of
P31   1reselling those vouchers or prepaid rental arrangements to the
2general public, (C) an individual whose car rental is eligible for
3reimbursement in whole or in part as a result of the person being
4insured or provided coverage under a policy of insurance issued
5by an insurance company, or (D) an individual whose car rental
6is eligible for reimbursement in whole or in part as a result of the
7person purchasing passenger vehicle repair services from a person
8licensed to perform such services.

9(5) “Qualified business rental” under a business program
10established for a business program sponsor by a rental company
11means the rental of a passenger vehicle under the business program
12if either (A) in the 12-month period ending on the date of the rental
13or in the calendar year immediately preceding the year in which
14the rental occurs, the rentals under all business programs
15established by the rental company for the business program sponsor
16and its affiliates produced gross rental revenues in excess of
17twenty-five thousand dollars ($25,000) or (B) the rental company
18in good faith estimates that rentals under all the business programs
19established by the rental company for the business program sponsor
20and its affiliates will produce gross rental revenues in excess of
21twenty-five thousand dollars ($25,000) in the 12-month period
22commencing with the date of the rental or in the calendar year in
23which the rental occurs. The rental company has the burden of
24establishing by objectively verifiable evidence that the rental was
25a qualified business rental.

26(6) “Quote” means telephonic, in-person, and
27computer-transmitted quotations.

28(b) Notwithstanding any provision to the contrary contained in
29paragraph (1) of subdivision (m) of Section 1936, a rental car
30company may, in connection with the qualified business rental of
31a passenger vehicle to a business renter of a business program
32sponsor under the sponsor’s business program, do both of the
33following:

34(1) Separately quote additional charges for the rental if, at the
35time the quote is provided, the person receiving the quote is also
36provided a good faith estimate of the total of all the charges for
37the entire rental. The estimate may exclude mileage charges and
38charges for optional items and services that cannot be determined
39prior to completing the reservation based upon the information
40provided by the renter.

P32   1(2) Separately impose additional charges for the rental, if the
2rental contract, or another document provided to the business renter
3at the time and place the rental commences, clearly and
4 conspicuously discloses the total of all the charges for the entire
5rental, exclusive of charges that cannot be determined at the time
6the rental commences.

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) Nothing in this section shall be interpreted to mean that a
14rental company is not required to comply with the requirements
15of paragraphs (2) to (6), inclusive, of subdivision (m) of Section
161936.



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