Amended in Senate August 20, 2014

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 prescribed standards, as of January 1, 2014. 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 standards 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 day.

begin insert

This bill would incorporate additional changes to Section 1936 of the Civil Code made by AB 2747 that would become operative if this bill and AB 2747 are both enacted and this bill is enacted last.

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:

P3    1(i) To finance, design, and construct consolidated airport car
2rental facilities.

3(ii) To finance, design, construct, and operate common-use
4transportation systems that move passengers between airport
5terminals and those consolidated car rental facilities, and acquire
6vehicles for use in that system.

7(iii) To finance, design, and construct terminal modifications
8solely to accommodate and provide customer access to
9common-use transportation systems.

10(B) The aggregate amount to be collected shall not exceed the
11reasonable costs, as determined by an audit, by an independent
12auditor, paid for by the airport, to finance, design, and construct
13those facilities. The auditor shall independently examine and
14substantiate the necessity for and the amount of the customer
15facility charge, including whether the airport’s actual or projected
16costs are supported and justified, any steps the airport may take to
17limit costs, potential alternatives for meeting the airport’s revenue
18needs other than the collection of the fee, and whether and to what
19extent car rental companies or other businesses or individuals using
20the facility or common-use transportation system may pay for the
21costs associated with these facilities and systems other than the
22fee from rental customers, or whether the airport did not comply
23with any provision of this subparagraph. Copies of the audit shall
24be provided to the Assembly and Senate Committees on Judiciary,
25the Assembly Committee on Transportation, and the Senate
26Committee on Transportation and Housing and shall be posted on
27the airport’s Internet Web site. In the case of a customer facility
28charge for a common-use transportation system, the audit also
29shall consider the reasonable costs of providing the transit system
30or busing network pursuant to clause (ii) of subparagraph (A). Any
31audit required by this subparagraph may be included as a part of
32an audit of an airport’s finances. Notwithstanding clause (iii) of
33subparagraph (A), the fees designated as a customer facility charge
34shall not be used to pay for terminal expansion, gate expansion,
35runway expansion, changes in hours of operation, or changes in
36the number of flights arriving or departing from the airport.

37(C) Except as provided in subparagraph (D), the authorization
38given pursuant to this section for an airport to impose a customer
39facility charge shall become inoperative when the bonds used for
40financing are paid.

P4    1(D) If a bond or other form of indebtedness is not used for
2financing, or the bond or other form of indebtedness used for
3financing has been paid, the Oakland International Airport may
4require the collection of a customer facility charge for a period of
5up to 10 years from the imposition of the charge for the purposes
6allowed by, and subject to the conditions imposed by, this section.

7(5) “Damage waiver” means a rental company’s agreement not
8to hold a renter liable for all or any portion of any damage or loss
9related to the rented vehicle, any loss of use of the rented vehicle,
10or any storage, impound, towing, or administrative charges.

11(6) “Electronic surveillance technology” means a technological
12method or system used to observe, monitor, or collect information,
13including telematics, Global Positioning System (GPS), wireless
14technology, or location-based technologies. “Electronic
15surveillance technology” does not include event data recorders
16(EDR), sensing and diagnostic modules (SDM), or other systems
17that are used either:

18(A) For the purpose of identifying, diagnosing, or monitoring
19functions related to the potential need to repair, service, or perform
20maintenance on the rental vehicle.

21(B) As part of the vehicle’s airbag sensing and diagnostic system
22in order to capture safety systems-related data for retrieval after a
23crash has occurred or in the event that the collision sensors are
24activated to prepare the decisionmaking computer to make the
25determination to deploy or not to deploy the airbag.

26(7) “Estimated time for replacement” means the number of hours
27of labor, or fraction thereof, needed to replace damaged vehicle
28parts as set forth in collision damage estimating guides generally
29used in the vehicle repair business and commonly known as “crash
30books.”

31(8) “Estimated time for repair” means a good faith estimate of
32the reasonable number of hours of labor, or fraction thereof, needed
33to repair damaged vehicle parts.

34(9) “Membership program” means a service offered by a rental
35company that permits customers to bypass the rental counter and
36go directly to the car previously reserved. A membership program
37shall meet all of the following requirements:

38(A) The renter initiates enrollment by completing an application
39on which the renter can specify a preference for type of vehicle
40 and acceptance or declination of optional services.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

39(h) Notwithstanding any other provision of law, a rental
40company may sell a damage waiver subject to the following rate
P11   1limitations for each full or partial 24-hour rental day for the damage
2waiver:

3(1) For rental vehicles that the rental company designates as an
4“economy car,” “compact car,” or another term having similar
5meaning to the two smallest body-size categories of vehicles
6 established by the Association of Car Rental Industry Systems
7Standards for North America, as of January 1, 2014, when offered
8for rental, the rate shall not exceed eleven dollars ($11).

9(2) For rental vehicles, that the rental company designates as
10an “intermediate car,” “standard car,” or “fullsize car,” or another
11term having similar meaning to the next three body-size categories
12of vehicles established by the Association of Car Rental Industry
13Systems Standards for North America, as of January 1, 2014, and
14that are also either vehicles of the next model year or not older
15than the previous year’s model, when offered for rental, the rate
16shall not exceed seventeen dollars ($17). For rental vehicles that
17are older than the previous year’s model year, the rate shall not
18exceed eleven dollars ($11).

19(i) A rental company that disseminates in this state an
20 advertisement containing a rental rate shall include in that
21advertisement a clearly readable statement of the charge for a
22damage waiver and a statement that a damage waiver is optional.

23(j) (1) A rental company shall not require the purchase of a
24damage waiver, optional insurance, or another optional good or
25service.

26(2) A rental company shall not engage in any unfair, deceptive,
27or coercive conduct to induce a renter to purchase the damage
28waiver, optional insurance, or another optional good or service,
29including conduct such as, but not limited to, refusing to honor
30the renter’s reservation, limiting the availability of vehicles,
31requiring a deposit, or debiting or blocking the renter’s credit card
32account for a sum equivalent to a deposit if the renter declines to
33purchase the damage waiver, optional insurance, or another
34optional good or service.

35(k) (1) In the absence of express permission granted by the
36renter subsequent to damage to, or loss of, the vehicle, a rental
37company shall not seek to recover any portion of a claim arising
38out of damage to, or loss of, the rented vehicle by processing a
39credit card charge or causing a debit or block to be placed on the
40renter’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.

27begin insert

begin insertSEC. 1.3. end insert  

end insert

begin insertSection 1936 of the end insertbegin insertCivil Codeend insertbegin insert, as amended by
28Section 1 of Chapter 549 of the Statutes of 2013, is amended to
29read:end insert

30

1936.  

(a) For the purpose of this section, the following
31definitions shall apply:

32(1) “Rental company” means a person or entity in the business
33of renting passenger vehicles to the public.

34(2) “Renter” means any person in a manner obligated under a
35contract for the lease or hire of a passenger vehicle from a rental
36company for a period of less than 30 days.

begin insert

37(3) “Authorized driver” means all of the following:

end insert
begin insert

38(A) The renter.

end insert
begin insert

39(B) The renter’s spouse if that person is a licensed driver and
40satisfies the rental company’s minimum age requirement.

end insert
begin delete

P22   1(3) “Authorized driver” means (A) the renter, (B) the renter’s
2spouse if that person is a licensed driver and satisfies the rental
3company’s minimum age requirement, (C) the

end delete

4begin insert (C)end insertbegin insertend insertbegin insertTheend insert renter’s employer or coworker if he or she is engaged
5in business activity with the renter, is a licensed driver, and satisfies
6the rental company’s minimum agebegin delete requirement, and (D) a person
7expressly listed by the rental company on the renter’s contract as
8an authorized driver.end delete
begin insert requirement.end insert

begin insert

9(D)  A person expressly listed by the rental company on that
10renter’s contract as an authorized driver.

end insert

11(4) (A) “Customer facility charge” means any fee, including
12an alternative fee, required by an airport to be collected by a rental
13company from a renter for any of the following purposes:

14(i) To finance, design, and construct consolidated airport car
15rental facilities.

16(ii) To finance, design, construct, and operate common-use
17transportation systems that move passengers between airport
18terminals and those consolidated car rental facilities, and acquire
19vehicles for use in that system.

20(iii) To finance, design, and construct terminal modifications
21solely to accommodate and provide customer access to
22common-use transportation systems.

23(B) The aggregate amount to be collected shall not exceed the
24reasonable costs, as determined by an audit, by an independent
25auditor, paid for by the airport, to finance, design, and construct
26those facilities. The auditor shall independently examine and
27substantiate the necessity for and the amount of the customer
28facility charge, including whether the airport’s actual or projected
29costs are supported and justified, any steps the airport may take to
30limit costs, potential alternatives for meeting the airport’s revenue
31needs other than the collection of the fee, and whether and to what
32extent car rental companies or other businesses or individuals using
33the facility or common-use transportation system may pay for the
34 costs associated with these facilities and systems other than the
35fee from rental customers, or whether the airport did not comply
36with any provision of this subparagraph. Copies of the audit shall
37be provided to the Assembly and Senate Committees on Judiciary,
38the Assembly Committee on Transportation, and the Senate
39Committee on Transportation and Housing and shall be posted on
40the airport’s Internet Web site. In the case of a customer facility
P23   1charge for a common-use transportation system, the audit also
2shall consider the reasonable costs of providing the transit system
3or busing network pursuant to clause (ii) of subparagraph (A). Any
4audit required by this subparagraph may be included as a part of
5an audit of an airport’s finances. Notwithstanding clause (iii) of
6subparagraph (A), the fees designated as a customer facility charge
7shall not be used to pay for terminal expansion, gate expansion,
8runway expansion, changes in hours of operation, or changes in
9the number of flights arriving or departing from the airport.

10(C) Except as provided in subparagraph (D), the authorization
11given pursuant to this section for an airport to impose a customer
12facility charge shall become inoperative when the bonds used for
13financing are paid.

14(D) If a bond or other form of indebtedness is not used for
15financing, or the bond or other form of indebtedness used for
16financing has been paid, the Oakland International Airport may
17require the collection of a customer facility charge for a period of
18up to 10 years from the imposition of the charge for the purposes
19allowed by, and subject to the conditions imposed by, this section.

20(5) “Damage waiver” means a rental company’s agreement not
21to hold a renter liable for all or any portion of any damage or loss
22related to the rented vehicle, any loss of use of the rented vehicle,
23or any storage, impound, towing, or administrative charges.

24(6) “Electronic surveillance technology” means a technological
25method or system used to observe, monitor, or collect information,
26including telematics, Global Positioning System (GPS), wireless
27technology, or location-based technologies. “Electronic
28surveillance technology” does not include event data recorders
29(EDR), sensing and diagnostic modules (SDM), or other systems
30that are used either:

31(A) For the purpose of identifying, diagnosing, or monitoring
32functions related to the potential need to repair, service, or perform
33maintenance on the rental vehicle.

34(B) As part of the vehicle’s airbag sensing and diagnostic system
35in order to capture safety systems-related data for retrieval after a
36crash has occurred or in the event that the collision sensors are
37activated to prepare the decisionmaking computer to make the
38determination to deploy or not to deploy the airbag.

39(7) “Estimated time for replacement” means the number of hours
40of labor, or fraction thereof, needed to replace damaged vehicle
P24   1parts as set forth in collision damage estimating guides generally
2used in the vehicle repair business and commonly known as “crash
3books.”

4(8) “Estimated time for repair” means a good faith estimate of
5the reasonable number of hours of labor, or fraction thereof, needed
6to repair damaged vehicle parts.

7(9) “Membership program” means a service offered by a rental
8company that permits customers to bypass the rental counter and
9go directly to the car previously reserved. A membership program
10shall meet all of the following requirements:

11(A) The renter initiates enrollment by completing an application
12on which the renter can specify a preference for type of vehicle
13and acceptance or declination of optional services.

14(B) The rental company fully discloses, prior to the enrollee’s
15first rental as a participant in the program, all terms and conditions
16of the rental agreement as well as all required disclosures.

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

18(D) The rental company fully explains to the renter that
19designated preferences, as well as acceptance or declination of
20optional services, may be changed by the renter at any time for
21the next and future rentals.

22(E) An employee designated to receive the form specified in
23subparagraph (C) of paragraph (1) of subdivisionbegin delete (t)end deletebegin insert (s)end insert is present
24at the lot where the renter takes possession of the car, to receive
25any change in the rental agreement from the renter.

26(10) “Passenger vehicle” means a passenger vehicle as defined
27in Section 465 of the Vehicle Code.

28(b) Except as limited by subdivision (c), a rental company and
29a renter may agree that the renter will be responsible for no more
30than all of the following:

31(1) Physical or mechanical damage to the rented vehicle up to
32its fair market value, as determined in the customary market for
33the sale of that vehicle, resulting from collision regardless of the
34cause of the damage.

35(2) Loss due to theft of the rented vehicle up to its fair market
36value, as determined in the customary market for the sale of that
37vehicle, provided that the rental company establishes by clear and
38convincing evidence that the renter or the authorized driver failed
39to exercise ordinary care while in possession of the vehicle. In
40addition, the renter shall be presumed to have no liability for any
P25   1loss due to theft if (A) an authorized driver has possession of the
2ignition key furnished by the rental company or an authorized
3driver establishes that the ignition key furnished by the rental
4company was not in the vehicle at the time of the theft, and (B) an
5authorized driver files an official report of the theft with the police
6or other law enforcement agency within 24 hours of learning of
7the theft and reasonably cooperates with the rental company and
8the police or other law enforcement agency in providing
9information concerning the theft. The presumption set forth in this
10paragraph is a presumption affecting the burden of proof which
11the rental company may rebut by establishing that an authorized
12driver committed, or aided and abetted the commission of, the
13theft.

14(3) Physical damage to the rented vehicle up to its fair market
15value, as determined in the customary market for the sale of that
16vehicle, resulting from vandalism occurring after, or in connection
17with, the theft of the rented vehicle. However, the renter shall have
18no liability for any damage due to vandalism if the renter would
19have no liability for theft pursuant to paragraph (2).

20(4) Physical damage to the rented vehicle up to a total of five
21hundred dollars ($500) resulting from vandalism unrelated to the
22theft of the rented vehicle.

23(5) Actual charges for towing, storage, and impound fees paid
24by the rental company if the renter is liable for damage or loss.

25(6) An administrative charge, which shall include the cost of
26appraisal and all other costs and expenses incident to the damage,
27loss, repair, or replacement of the rented vehicle.

28(c) The total amount of the renter’s liability to the rental
29company resulting from damage to the rented vehicle shall not
30exceed the sum of the following:

31(1) The estimated cost of parts which the rental company would
32have to pay to replace damaged vehicle parts. All discounts and
33price reductions or adjustments that are or will be received by the
34rental company shall be subtracted from the estimate to the extent
35not already incorporated in the estimate, or otherwise promptly
36credited or refunded to the renter.

37(2) The estimated cost of labor to replace damaged vehicle parts,
38which shall not exceed the product of (A) the rate for labor usually
39paid by the rental company to replace vehicle parts of the type that
40were damaged and (B) the estimated time for replacement. All
P26   1discounts and price reductions or adjustments that are or will be
2received by the rental company shall be subtracted from the
3estimate to the extent not already incorporated in the estimate, or
4otherwise promptly credited or refunded to the renter.

5(3) (A) The estimated cost of labor to repair damaged vehicle
6parts, which shall not exceed the lesser of the following:

7(i) The product of the rate for labor usually paid by the rental
8company to repair vehicle parts of the type that were damaged and
9the estimated time for repair.

10(ii) The sum of the estimated labor and parts costs determined
11under paragraphs (1) and (2) to replace the same vehicle parts.

12(B) All discounts and price reductions or adjustments that are
13or will be received by the rental company shall be subtracted from
14the estimate to the extent not already incorporated in the estimate,
15or otherwise promptly credited or refunded to the renter.

16(4) For the purpose of converting the estimated time for repair
17into the same units of time in which the rental rate is expressed, a
18day shall be deemed to consist of eight hours.

19(5) Actual charges for towing, storage, and impound fees paid
20by the rental company.

21(6) The administrative charge described in paragraph (6) of
22subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
23estimated cost for parts and labor is more than one hundred dollars
24($100) up to and including five hundred dollars ($500), (B) one
25hundred dollars ($100) if the total estimated cost for parts and
26labor exceeds five hundred dollars ($500) up to and including one
27thousand five hundred dollars ($1,500), and (C) one hundred fifty
28dollars ($150) if the total estimated cost for parts and labor exceeds
29one thousand five hundred dollars ($1,500). An administrative
30charge shall not be imposed if the total estimated cost of parts and
31labor is one hundred dollars ($100) or less.

32(d) (1) The total amount of an authorized driver’s liability to
33the rental company, if any, for damage occurring during the
34authorized driver’s operation of the rented vehicle shall not exceed
35the amount of the renter’s liability under subdivision (c).

36(2) A rental company shall not recover from the renter or other
37authorized driver an amount exceeding the renter’s liability under
38subdivision (c).

39(3) A claim against a renter resulting from damage or loss,
40excluding loss of use, to a rental vehicle shall be reasonably and
P27   1rationally related to the actual loss incurred. A rental company
2shall mitigate damages where possible and shall not assert or collect
3a claim for physical damage which exceeds the actual costs of the
4repairs performed or the estimated cost of repairs, if the rental
5company chooses not to repair the vehicle, including all discounts
6and price reductions. However, if the vehicle is a total loss vehicle,
7the claim shall not exceed the total loss vehicle value established
8in accordance with procedures that are customarily used by
9insurance companies when paying claims on total loss vehicles,
10less the proceeds from salvaging the vehicle, if those proceeds are
11retained by the rental company.

12(4) If insurance coverage exists under the renter’s applicable
13personal or business insurance policy and the coverage is confirmed
14during regular business hours, the renter may require that the rental
15company submit any claims to the renter’s applicable personal or
16business insurance carrier. The rental company shall not make any
17written or oral representations that it will not present claims or
18negotiate with the renter’s insurance carrier. For purposes of this
19paragraph, confirmation of coverage includes telephone
20confirmation from insurance company representatives during
21regular business hours. Upon request of the renter and after
22confirmation of coverage, the amount of claim shall be resolved
23between the insurance carrier and the rental company. The renter
24shall remain responsible for payment to the rental car company
25for any loss sustained that the renter’s applicable personal or
26business insurance policy does not cover.

27(5) A rental company shall not recover from the renter or other
28authorized driver for an item described in subdivision (b) to the
29extent the rental company obtains recovery from another person.

30(6) This section applies only to the maximum liability of a renter
31or other authorized driver to the rental company resulting from
32damage to the rented vehicle and not to the liability of another
33person.

34(e) (1) Except as provided in subdivision (f), a damage waiver
35shall provide or, if not expressly stated in writing, shall be deemed
36to provide that the renter has no liability forbegin delete aend delete damage, loss, loss
37of use, or a cost or expense incident thereto.

38(2) Except as provided in subdivision (f), every limitation,
39exception, or exclusion to a damage waiver is void and
40unenforceable.

P28   1(f) A rental company may provide in the rental contract that a
2damage waiver does not apply under any of the following
3circumstances:

4(1) Damage or loss results from an authorized driver’s (A)
5intentional, willful, wanton, or reckless conduct, (B) operation of
6the vehicle under the influence of drugs or alcohol in violation of
7Section 23152 of the Vehicle Code, (C) towing or pushing
8anything, or (D) operation of the vehicle on an unpaved road if
9the damage or loss is a direct result of the road or driving
10conditions.

11(2) Damage or loss occurs while the vehicle is (A) used for
12commercial hire, (B) used in connection with conduct that could
13be properly charged as a felony, (C) involved in a speed test or
14 contest or in driver training activity, (D) operated by a person other
15than an authorized driver, or (E) operated outside the United States.

16(3) An authorized driver who has (A) provided fraudulent
17information to the rental company, or (B) provided false
18information and the rental company would not have rented the
19vehicle if it had instead received true information.

20(g) (1) A rental company that offers or provides a damage
21waiver for any consideration in addition to the rental rate shall
22clearly and conspicuously disclose the following information in
23the rental contract or holder in which the contract is placed and,
24also, in signs posted at the place, such as the counter, where the
25renter signs the rental contract, and, for renters who are enrolled
26in the rental company’s membership program, in a sign that shall
27be posted in a location clearly visible to those renters as they enter
28the location where their reserved rental cars are parked or near the
29exit of the bus or other conveyance that transports the enrollee to
30a reserved car: (A) the nature of the renter’s liability, such as
31liability for all collision damage regardless of cause, (B) the extent
32of the renter’s liability, such as liability for damage or loss up to
33a specified amount, (C) the renter’s personal insurance policy or
34the credit card used to pay for the car rental transaction may
35provide coverage for all or a portion of the renter’s potential
36liability, (D) the renter should consult with his or her insurer to
37determine the scope of insurance coverage, including the amount
38of the deductible, if any, for which the renter is obligated, (E) the
39renter may purchase an optional damage waiver to cover all
40liability, subject to whatever exceptions the rental company
P29   1expressly lists that are permitted under subdivision (f), and (F) the
2range of charges for the damage waiver.

3(2) In addition to the requirements of paragraph (1), a rental
4company that offers or provides a damage waiver shall orally
5disclose to all renters, except those who are participants in the
6rental company’s membership program, that the damage waiver
7may be duplicative of coverage that the customer maintains under
8his or her own policy of motor vehicle insurance. The renter’s
9receipt of the oral disclosure shall be demonstrated through the
10renter’s acknowledging receipt of the oral disclosure near that part
11of the contract where the renter indicates, by the renter’s own
12initials, his or her acceptance or declination of the damage waiver.
13Adjacent to that same part, the contract also shall state that the
14damage waiver is optional. Further, the contract for these renters
15shall include a clear and conspicuous written disclosure that the
16damage waiver may be duplicative of coverage that the customer
17maintains under his or her own policy of motor vehicle insurance.

18(3) The following is an example, for purposes of illustration
19and not limitation, of a notice fulfilling the requirements of
20paragraph (1) for a rental company that imposes liability on the
21renter for collision damage to the full value of the vehicle:
22

23“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
24AND OPTIONAL DAMAGE WAIVER
25

26You are responsible for all collision damage to the rented vehicle
27even if someone else caused it or the cause is unknown. You are
28responsible for the cost of repair up to the value of the vehicle,
29and towing, storage, and impound fees.

30Your own insurance, or the issuer of the credit card you use to
31pay for the car rental transaction, may cover all or part of your
32financial responsibility for the rented vehicle. You should check
33with your insurance company, or credit card issuer, to find out
34about your coverage and the amount of the deductible, if any, for
35which you may be liable.

36Further, if you use a credit card that provides coverage for your
37potential liability, you should check with the issuer to determine
38if you must first exhaust the coverage limits of your own insurance
39before the credit card coverage applies.

P30   1The rental company will not hold you responsible if you buy a
2damage waiver. But a damage waiver will not protect you if (list
3exceptions).”


5(A) When the above notice is printed in the rental contract or
6holder in which the contract is placed, the following shall be printed
7immediately following the notice:


9“The cost of an optional damage waiver is $____ for every (day
10or week).”


12(B) When the above notice appears on a sign, the following
13shall appear immediately adjacent to the notice:


15“The cost of an optional damage waiver is $____ to $____ for
16every (day or week), depending upon the vehicle rented.”


18(h) Notwithstanding any other provision of law, a rental
19company may sell a damage waiver subject to the following rate
20limitations for each full or partial 24-hour rental day for the damage
21begin delete waiver.end deletebegin insert waiver:end insert

22(1) For rental vehicles that the rental company designates as an
23“economy car,”begin delete “subcompact car,”end delete “compact car,” or another term
24having similar meaningbegin delete when offered for rental, or another vehicle
25having a manufacturer’s suggested retail price of nineteen thousand
26dollars ($19,000) or less,end delete
begin insert to the two smallest body-size categories
27of vehicles established by the Association of Car Rental Industry
28Systems Standards for North America, as of January 1, 2014, when
29offered for rental,end insert
the rate shall not exceedbegin delete nine dollars ($9).end deletebegin insert eleven
30dollars ($11).end insert

31(2) For rentalbegin delete vehicles that have a manufacturer’s suggested
32retail price from nineteen thousand one dollars ($19,001) to
33thirty-four thousand nine hundred ninety-nine dollars ($34,999),
34inclusive,end delete
begin insert vehiclesend insertbegin insert that the rental company designates as an
35“intermediate car,” “standard car,” or “fullend insert
begin insert-size car,” or another
36term having similar meaning to the next three body-size categories
37of vehicles established by the Association of Car Rental Industry
38Systems Standards for North America, as of January 1, 2014,end insert
and
39that are also either vehicles ofbegin insert theend insert nextbegin delete year’s model,end deletebegin insert model year,end insert
40 or not older than the previous year’s model,begin insert when offered for rental,end insert
P31   1 the rate shall not exceedbegin delete fifteen dollars ($15).end deletebegin insert seventeen dollars
2($17).end insert
Forbegin delete thoseend delete rental vehiclesbegin insert that areend insert older than the previous
3year’s model-year, the rate shall not exceedbegin delete nine dollars ($9).end delete
4begin insert eleven dollars ($11).end insert

begin delete

5(i) The manufacturer’s suggested retail prices described in
6subdivision (h) shall be adjusted annually to reflect changes from
7the previous year in the Consumer Price Index. For the purposes
8of this section, “Consumer Price Index” means the United States
9Consumer Price Index for All Urban Consumers, for all items.

end delete
begin delete

10(j)

end delete

11begin insert(i)end insert A rental company that disseminates in this state an
12advertisement containing a rental rate shall include in that
13advertisement a clearly readable statement of the charge for a
14damage waiver and a statement that a damage waiver is optional.

begin delete

15(k)

end delete

16begin insert(j)end insert (1) A rental company shall not require the purchase of a
17damage waiver, optional insurance, or another optional good or
18service.

19(2) A rental company shall not engage in any unfair, deceptive,
20or coercive conduct to induce a renter to purchase the damage
21waiver, optional insurance, or another optional good or service,
22including conduct such as, but not limited to, refusing to honor
23the renter’s reservation, limiting the availability of vehicles,
24requiring a deposit, or debiting or blocking the renter’s credit card
25account for a sum equivalent to a deposit if the renter declines to
26purchase the damage waiver, optional insurance, or another
27optional good or service.

begin delete

28(l)

end delete

29begin insert(k)end insert (1) In the absence of express permission granted by the
30renter subsequent to damage to, or loss of, the vehicle, a rental
31company shall not seek to recover any portion of a claim arising
32out of damage to, or loss of, the rented vehicle by processing a
33credit card charge or causing a debit or block to be placed on the
34renter’s credit card account.

35(2) A rental company shall not engage in any unfair, deceptive,
36or coercive tactics in attempting to recover or in recovering on any
37claim arising out of damage to, or loss of, the rented vehicle.

begin delete

38(m)

end delete

39begin insert(l)end insert (1) A customer facility charge may be collected by a rental
40company under the following circumstances:

P32   1(A) Collection of the fee by the rental company is required by
2an airport operated by a city, a county, a city and county, a joint
3powers authority, a special district, or the San Diego County
4Regional Airport Authority formed pursuant to Division 17
5(commencing with Section 170000) of the Public Utilities Code.

6(B) The fee is calculated on a per contract basis or as provided
7in paragraph (2).

8(C) The fee is a user fee, not a tax imposed upon real property
9or anbegin delete incidenceend deletebegin insert incidentend insert of property ownership under Article XIII D
10of the California Constitution.

11(D) Except as otherwise provided in subparagraph (E), the fee
12shall be ten dollars ($10) per contract or the amount provided in
13paragraph (2).

14(E) The fee for a consolidated rental car facility shall be
15collected only from customers of on-airport rental car companies.
16If the fee imposed by the airport is for both a consolidated rental
17car facility and a common-use transportation system, the fee
18collected from customers of on-airport rental car companies shall
19be ten dollars ($10) or the amount provided in paragraph (2), but
20the fee imposed on customers of off-airport rental car companies
21who are transported on the common-use transportation system is
22proportionate to the costs of the common-use transportation system
23only. The fee is uniformly applied to each class of on-airport or
24off-airport customers, provided that the airport requires off-airport
25customers to use the common-use transportation system. For
26purposes of this subparagraph, “on-airport rental car company”
27means a rental company operating under an airport property lease
28or an airport concession or license agreement whose customers
29use or will use the consolidated rental car facility and the collection
30of the fee as to those customers is consistent with subparagraph
31(C).

32(F) Revenues collected from the fee do not exceed the reasonable
33costs of financing, designing, and constructing the facility and
34financing, designing, constructing, and operating any common-use
35transportation system, or acquiring vehicles for use in that system,
36and shall not be used for any other purpose.

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

38(H) This paragraph does not apply to fees which are governed
39by Section 50474.1 of the Government Code or Section 57.5 of
P33   1the San Diego Unified Port Districtbegin delete Act.end deletebegin insert Act (Chapter 67 of the
2First Extraordinary Session of the Statutes of 1962).end insert

3(I) For any airport seeking to require rental car companies to
4collect an alternative customer facility charge pursuant to paragraph
5(2), the following provisions apply:

6(i) Notwithstanding Section 10231.5 of the Government Code,
7the airport shall provide reports on an annual basis to the Senate
8and Assembly Committees on Judiciary detailing all of the
9following:

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

11(II) How the funds are being spent.

12(III) The amount of and reason for any changes in the airport’s
13budget or financial needs for the facility or common-use
14transportation system.

15(IV) Whether airport concession fees authorized by Section
161936.01 have increased since the prior report, if any.

17(ii) (I) The airport shall complete the audit required by
18subparagraph (B) of paragraph (4) of subdivision (a) prior tobegin insert theend insert
19 initial collection of the customer facility charge. Notwithstanding
20Section 10231.5 of the Government Code, copies of the audit shall
21be provided to the Assembly and Senate Committees on Judiciary,
22the Assembly Committee on Transportation, and the Senate
23Committee on Transportation and Housing and shall be posted on
24the airport’s Internet Web site.

25(II) Prior to any increase pursuant to paragraph (2), the airport
26shall update the information provided in the initial collection audit
27pursuant to subclause (I). Notwithstanding Section 10231.5 of the
28Government Code, copies of the updated audit shall be provided
29to the Assembly and Senate Committees on Judiciary, the
30Assembly Committee on Transportation, and the Senate Committee
31on Transportation andbegin delete Housingend deletebegin insert Housing,end insert and shall be posted on
32the airport’s Internet Web site.

33(III) An audit shall be completed every three years after initial
34collection only if the customer facility charge is collected for the
35purpose of operating a common-use transportation system or to
36acquire vehicles for use inbegin delete such aend deletebegin insert theend insert system pursuant to clause
37(ii) of subparagraph (A) of paragraph (4) of subdivision (a). A
38regularly conducted audit of airport finances that includes the
39customer facility charge information, that satisfies the requirements
40of subparagraph (B) of paragraph (4) of subdivision (a), and is
P34   1produced in accordance with the generally accepted accounting
2principles of the Government Accounting Standards Board, shall
3satisfy the requirements of this subclause. This obligation shall
4continue until the fee authorization becomes inoperative pursuant
5to subparagraph (C) of paragraph (4) of subdivision (a).
6Notwithstanding Section 10231.5 of the Government Code, the
7information reported pursuant to this subclause shall be compiled
8into one document, shall be provided to the Assembly and Senate
9Committees on Judiciary, the Assembly Committee on
10Transportation, and the Senate Committee on Transportation and
11Housing and shall be posted on the airport’s Internet Web site
12 accessible to the public. The information reported shall be
13contained within one easily accessible page contained within the
14airport’s Internet Web site.

15(IV) This section shall not be construed to require an airport to
16audit a common-use transportation system not financed by a
17customer facility charge and used for the purposes permitted
18pursuant to clause (ii) of subparagraph (A) of paragraph (4) of
19subdivision (a).

20(V) The airport shall post on the airport’s Internet Web site
21copies of the completed audits required by this clause for a period
22of six years following the audit’s completion.

23(iii) Use of the bonds shall be limited to construction and design
24of the consolidated rental car facility, terminal modifications, and
25operating costs of the common-use transportation system, as
26specified in paragraph (4) of subdivision (a).

27(2) Any airport may require rental car companies to collect an
28alternative customer facility charge under the following conditions:

29(A) The airport first conducts a publicly noticed hearing pursuant
30to the Ralph M. Brown Act (Chapter 9 (commencing with Section
3154950) of Part 1 of Division 2 of Title 5 of the Government Code)
32to review the costs of financing the design and construction of a
33consolidated rental car facility and the design, construction, and
34operation of any common-use transportation system in which all
35of the following occur:

36(i) The airport establishes the amount of revenue necessary to
37finance the reasonable cost to design and construct a consolidated
38rental car facility and to design, construct, and operate any
39common-use transportation system, or acquire vehicles for use in
40that system, based on evidence presented during the hearing.

P35   1(ii) The airport finds, based on evidence presented during the
2hearing, that the fee authorized in paragraph (1) will not generate
3sufficient revenue to finance the reasonable costs to design and
4construct a consolidated rental car facility and to design, construct,
5and operate any common-use transportation system, or acquire
6vehicles for use in that system.

7(iii) The airport finds that the reasonable cost of the project
8requires the additional amount of revenue that would be generated
9by the proposed daily rate, including any rate increase, authorized
10pursuant to this paragraph.

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

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

13(II) Other potential alternatives for meeting its revenue needs
14other than the collection of the fee.

15(III) The extent to which rental car companies or other
16businesses or individuals using the facility or common-use
17transportation system will pay for the costs associated with these
18facilities and systems other than the fee from rental customers.

19(B) The airport may not require the fee authorized in this
20paragraph to be collected at any time that the fee authorized in
21paragraph (1) of this subdivision is being collected.

22(C) Pursuant to the procedure set forth in this subdivision, the
23fee may be collected at a rate charged on a per-day basis subject
24to the following conditions:

25(i) Commencing January 1, 2011, the amount of the fee may
26not exceed six dollars ($6) per day.

27(ii) Commencing January 1, 2014, the amount of the fee may
28not exceed seven dollars and fifty cents ($7.50) per day.

29(iii) Commencing January 1, 2017, and thereafter, the amount
30of the fee may not exceed nine dollars ($9) per day.

31(iv) At no time shall the fee authorized in this paragraph be
32collected from any customer for more than five days for each
33individual rental car contract.

34(v) An airport subject to this paragraph shall initiate the process
35for obtaining the authority to require or increase the alternative
36fee no later than January 1, 2018. Any airport that obtains the
37authority to require or increase an alternative fee shall be authorized
38to continue collecting that fee until the fee authorization becomes
39inoperative pursuant to subparagraph (C) of paragraph (4) of
40subdivision (a).

P36   1(3) Notwithstanding any other provision of law, including, but
2not limited to, Part 1 (commencing with Section 6001) to Part 1.7
3(commencing with Section 7280), inclusive, of Division 2 of the
4Revenue and Taxation Code, the fees collected pursuant to this
5section, or another law whereby a local agency operating an airport
6requires a rental car company to collect a facility financing fee
7from its customers, are not subject to sales, use, or transaction
8taxes.

begin delete

9(n)

end delete

10begin insert(m)end insert (1) A rental company shall only advertise, quote, and charge
11a rental rate that includes the entire amount except taxes, a
12customer facility charge, if any, and a mileage charge, if any, that
13a renter must pay to hire or lease the vehicle for the period of time
14to which the rental rate applies. A rental company shall not charge
15in addition to the rental rate, taxes, a customer facility charge, if
16any, and a mileage charge, if any, any fee that is required to be
17paid by the renter as a condition of hiring or leasing the vehicle,
18including, but not limited to, required fuel or airport surcharges
19other than customer facility charges, nor a fee for transporting the
20renter to the location where the rented vehicle will be delivered to
21the renter.

22(2) In addition to the rental rate, taxes, customer facility charges,
23if any, and mileage charges, if any, a rental company may charge
24for an item or service provided in connection with a particular
25rental transaction if the renter could have avoided incurring the
26charge by choosing not to obtain or utilize the optional item or
27service. Items and services for which the rental company may
28impose an additional charge include, but are not limited to, optional
29insurance and accessories requested by the renter, service charges
30incident to the renter’s optional return of the vehicle to a location
31other than the location where the vehicle was hired or leased, and
32charges for refueling the vehicle at the conclusion of the rental
33transaction in the event the renter did not return the vehicle with
34as much fuel as was in the fuel tank at the beginning of the rental.
35A rental company also may impose an additional charge based on
36reasonable age criteria established by the rental company.

37(3) A rental company shall not charge a fee for authorized
38drivers in addition to the rental charge for an individual renter.

39(4) If a rental company states a rental rate in print advertisement
40or in a telephonic, in-person, or computer-transmitted quotation,
P37   1the rental company shall disclose clearly in that advertisement or
2quotation the terms of mileage conditions relating to the advertised
3or quoted rental rate, including, but not limited to, to the extent
4applicable, the amount of mileage and gas charges, the number of
5miles for which no charges will be imposed, and a description of
6geographic driving limitations within the United States and Canada.

7(5) (A) When a rental rate is stated in an advertisement,
8quotation, or reservation in connection with a car rental at an airport
9where a customer facility charge is imposed, the rental company
10shall disclose clearly the existence and amount of the customer
11facility charge. For purposes of this subparagraph, advertisements
12include radio, television, other electronic media, and print
13advertisements. For purposes of this subparagraph, quotations and
14reservations include those that are telephonic, in-person, and
15computer-transmitted. If the rate advertisement is intended to
16include transactions at more than one airport imposing a customer
17facility charge, a range of fees may be stated in the advertisement.
18However, all rate advertisements that include car rentals at airport
19destinations shall clearly and conspicuously include a toll-free
20telephone number whereby a customer can be told the specific
21amount of the customer facility charge to which the customer will
22be obligated.

23(B) If a person or entity other than a rental car company,
24including a passenger carrier or a seller of travel services, advertises
25or quotes a rate for a car rental at an airport where a customer
26facility charge is imposed, that person or entity shall, provided
27that he, she, or it is provided with information about the existence
28and amount of the fee, to the extent not specifically prohibited by
29federal law, clearly disclose the existence and amount of the fee
30in any telephonic, in-person, or computer-transmitted quotation at
31the time of making an initial quotation of a rental rate and at the
32time of making a reservation of a rental car. If a rental car company
33provides the person or entity with rate and customer facility charge
34information, the rental car company is not responsible for the
35failure of that person or entity to comply with this subparagraph
36when quoting or confirming a rate to a third person or entity.

37(6) If a rental company delivers a vehicle to a renter at a location
38other than the location where the rental company normally carries
39on its business, the rental company shall not charge the renter an
40amount for the rental for the period before the delivery of the
P38   1vehicle. If a rental company picks up a rented vehicle from a renter
2at a location other than the location where the rental company
3normally carries on its business, the rental company shall not
4charge the renter an amount for the rental for the period after the
5renter notifies the rental company to pick up the vehicle.

begin delete

6(o)

end delete

7begin insert(n)end insert A rental company shall not use, access, or obtain any
8information relating to the renter’s use of the rental vehicle that
9was obtained using electronic surveillance technology, except in
10the following circumstances:

11(1) (A) When the equipment is used by the rental company
12only for the purpose of locating a stolen, abandoned, or missing
13rental vehicle after one of the following:

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

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

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

25(B) If electronic surveillance technology is activated pursuant
26to subparagraph (A), a rental company shall maintain a record, in
27either electronic or written form, of information relevant to the
28activation of that technology. That information shall include the
29rental agreement, including the return date, and the date and time
30the electronic surveillance technology was activated. The record
31shall also include, if relevant, a record of written or other
32communication with the renter, including communications
33regarding extensions of the rental, police reports, or other written
34communication with law enforcement officials. The record shall
35be maintained for a period of at least 12 months from the time the
36record is created and shall be made available upon the renter’s
37request. The rental company shall maintain and furnish explanatory
38codes necessary to read the record. A rental company shall not be
39required to maintain a record if electronic surveillance technology
P39   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.

begin delete

36(p)

end delete

37begin insert(o)end insert A rental company shall not use electronic surveillance
38technology to track a renter in order to impose fines or surcharges
39relating to the renter’s use of the rental vehicle.

begin delete

40(q)

end delete

P40   1begin insert(p)end insert 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.

begin delete

5(r)

end delete

6begin insert(q)end insert A rental company that brings an action against a renter for
7loss due to theft of the vehicle shall bring the action in the county
8in which the renter resides or, if the renter is not a resident of this
9state, in the jurisdiction in which the renter resides.

begin delete

10(s)

end delete

11begin insert(r)end insert A waiver of any of the provisions of this section shall be
12void and unenforceable as contrary to public policy.

begin delete

13(t)

end delete

14begin insert(s)end insert (1) A rental company’s disclosure requirements shall be
15satisfied for renters who are enrolled in the rental company’s
16membership program if all of the following conditions are met:

17(A) Prior to the enrollee’s first rental as a participant in the
18program, the renter receives, in writing, the following:

19(i) All of the disclosures required by paragraph (1) of subdivision
20(g), including the terms and conditions of the rental agreement
21then in effect.

22(ii) An Internet Web site address, as well as a contact number
23or address, where the enrollee can learn of changes to the rental
24agreement or to the laws of this state governing rental agreements
25since the effective date of the rental company’s most recent
26restatement of the rental agreement and distribution of that
27restatement to its members.

28(B) At the commencement of each rental period, the renter is
29provided, on the rental record or the folder in which it is inserted,
30with a printed notice stating that he or she had either previously
31selected or declined an optional damage waiver and that the renter
32has the right to change preferences.

33(C) At the commencement of each rental period, the rental
34company provides, on the rearview mirror, a hanger on which a
35statement is printed, in a box, in at least 12-point boldface type,
36notifying the renter that the collision damage waiver offered by
37the rental company may be duplicative of coverage that the
38customer maintains under his or her own policy of motor vehicle
39insurance. If it is not feasible to hang the statement from the
40rearview mirror, it shall be hung from the steering wheel.

P41   1The hanger shall provide the renter a box to initial if he or she
2(not his or her employer) has previously accepted or declined the
3collision damage waiver and that he or she now wishes to change
4his or her decision to accept or decline the collision damage waiver,
5as follows:


6begin deleteend delete
7begin delete“◻end deletebegin deleteend deletebegin deleteIfend deletebegin insert “Ifend insert I previously accepted the collision damage waiver,
8I now decline it.


9begin deleteend deletebegin deleteend delete
10begin deleteend deletebegin deleteend deleteIf I previously declined the collision damage waiver, I now
11accept it.”


13The hanger shall also provide a box for the enrollee to indicate
14whether this change applies to this rental transaction only or to all
15future rental transactions. The hanger shall also notify the renter
16that he or she may make that change, prior to leaving the lot, by
17returning the form to an employee designated to receive the form
18who is present at the lot where the renter takes possession of the
19car, to receive any change in the rental agreement from the renter.

20(2) (A) This subdivision is not effective unless the employee
21designated pursuant to subparagraph (E) of paragraph (8) of
22subdivision (a) is actually present at the required location.

23(B) This subdivision does not relieve the rental company from
24the disclosures required to be made within the text of a contract
25or holder in which the contract is placed; in or on an advertisement
26containing a rental rate; or in a telephonic, in-person, or
27computer-transmitted quotation or reservation.

begin delete

28(u)

end delete

29begin insert(t)end insert The amendments made to this section during the 2001-02
30Regular Session of the Legislature do not affect litigation pending
31on or before January 1, 2003, alleging a violation of Section 22325
32of the Business and Professions Code as it read at the time the
33action was commenced.

begin delete

34(v)

end delete

35begin insert(u)end insert (1) When a rental company enters into a rental agreement
36in the state for the rental of a vehicle to any renter who is not a
37resident of this country and, as part of, or associated with, the rental
38 agreement, the renter purchases liability insurance, as defined in
39subdivision (b) of Section 1758.85 of the Insurance Code, from
40the rental company in its capacity as a rental car agent for an
P42   1authorized insurer, the rental company shall be authorized to accept,
2and, if served as set forth in this subdivision, shall accept, service
3of a summons and complaint and any other required documents
4against the foreign renter for any accident or collision resulting
5from the operation of the rental vehicle within the state during the
6rental period. If the rental company has a registered agent for
7service of process on file with the Secretary of State, process shall
8be served on the rental company’s registered agent, either by
9first-class mail, return receipt requested, or by personal service.

10(2) Within 30 days of acceptance of service of process, the rental
11company shall provide a copy of the summons and complaint and
12any other required documents served in accordance with this
13subdivision to the foreign renter by first-class mail, return receipt
14requested.

15(3) Any plaintiff, or his or her representative, who elects to serve
16the foreign renter by delivering a copy of the summons and
17complaint and any other required documents to the rental company
18pursuant to paragraph (1) shall agree to limit his or her recovery
19against the foreign renter and the rental company to the limits of
20the protection extended by the liability insurance.

21(4) Notwithstanding the requirements of Sections 17450 to
2217456, inclusive, of the Vehicle Code, service of process in
23compliance with paragraph (1) shall be deemed valid and effective
24service.

25(5) Notwithstanding any other provision of law, the requirement
26that the rental company accept service of process pursuant to
27paragraph (1) shall not create any duty, obligation, or agency
28relationship other than that provided in paragraph (1).

begin delete

29(w)

end delete

30begin insert(v)end insert This section shall remain in effect only until January 1,begin delete 2015,end delete
31begin insert 2020,end insert and as of that date is repealed, unless a later enacted statute,
32that is enacted before January 1,begin delete 2015end deletebegin insert 2020end insert, deletes or extends
33that date.

34begin insert

begin insertSEC. 1.7. end insert  

end insert

begin insertSection 1936 of the end insertbegin insertCivil Codeend insertbegin insert, as amended by
35Section 2 of Chapter 549 of the Statutes of 2013, is amended to
36read:end insert

37

1936.  

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

39(1) “Rental company” means a person or entity in the business
40of renting passenger vehicles to the public.

P43   1(2) “Renter” means any person in a manner obligated under a
2contract for the lease or hire of a passenger vehicle from a rental
3company for a period of less than 30 days.

begin insert

4(3) “Authorized driver” means all of the following:

end insert
begin insert

5(A) The renter.

end insert
begin insert

6(B) The renter’s spouse if that person is a licensed driver and
7satisfies the rental company’s minimum age requirement.

end insert
begin delete

8(3) “Authorized driver” means (A) the renter, (B) the renter’s
9spouse if that person is a licensed driver and satisfies the rental
10company’s minimum age requirement, (C) the

end delete

11begin insert(C)end insertbegin insertend insertbegin insertTheend insert renter’s employer or coworker if he or she is engaged
12in business activity with the renter, is a licensed driver, and satisfies
13the rental company’s minimum age begin delete requirement, and (D) a person
14expressly listed by the rental company on the renter’s contract as
15an authorized driver.end delete
begin insert requirement.end insert

begin insert

16(D) A person expressly listed by the rental company on that
17renter’s contract as an authorized driver.

end insert

18(4) (A) “Customer facility charge” means any fee, including
19an alternative fee, required by an airport to be collected by a rental
20company from a renter for any of the following purposes:

21(i) To finance, design, and construct consolidated airport car
22rental facilities.

23(ii) To finance, design, construct, and operate common-use
24transportation systems that move passengers between airport
25terminals and those consolidated car rental facilities, and acquire
26vehicles for use in that system.

27(iii) To finance, design, and construct terminal modifications
28solely to accommodate and provide customer access to
29common-use transportation systems.

30(B) The aggregate amount to be collected shall not exceed the
31reasonable costs, as determined by an audit, by an independent
32auditor, paid for by the airport, to finance, design, and construct
33those facilities. The auditor shall independently examine and
34substantiate the necessity for and the amount of the customer
35facility charge, including whether the airport’s actual or projected
36costs are supported and justified, any steps the airport may take to
37limit costs, potential alternatives for meeting the airport’s revenue
38needs other than the collection of the fee, and whether and to what
39extent car rental companies or other businesses or individuals using
40the facility or common-use transportation system may pay for the
P44   1costs associated with these facilities and systems other than the
2fee from rental customers, or whether the airport did not comply
3with any provision of this subparagraph. Copies of the audit shall
4be provided to the Assembly and Senate Committees on Judiciary,
5the Assembly Committee on Transportation, and the Senate
6Committee on Transportation and Housing and shall be posted on
7the airport’s Internet Web site. In the case of a customer facility
8charge for a common-use transportation system, the audit also
9shall consider the reasonable costs of providing the transit system
10or busing network pursuant to clause (ii) of subparagraph (A). Any
11audit required by this subparagraph may be included as a part of
12an audit of an airport’s finances. Notwithstanding clause (iii) of
13subparagraph (A), the fees designated as a customer facility charge
14shall not be used to pay for terminal expansion, gate expansion,
15runway expansion, changes in hours of operation, or changes in
16the number of flights arriving or departing from the airport.

17(C) Except as provided in subparagraph (D), the authorization
18given pursuant to this section for an airport to impose a customer
19facility charge shall become inoperative when the bonds used for
20financing are paid.

21(D) If a bond or other form of indebtedness is not used for
22financing, or the bond or other form of indebtedness used for
23financing has been paid, the Oakland International Airport may
24require the collection of a customer facility charge for a period of
25up to 10 years from the imposition of the charge for the purposes
26allowed by, and subject to the conditions imposed by, this section.

27(5) “Damage waiver” means a rental company’s agreement not
28to hold a renter liable for all or any portion of any damage or loss
29related to the rented vehicle, any loss of use of the rented vehicle,
30or any storage, impound, towing, or administrative charges.

31(6) “Electronic surveillance technology” means a technological
32method or system used to observe, monitor, or collect information,
33including telematics, Global Positioning System (GPS), wireless
34technology, or location-based technologies. “Electronic
35surveillance technology” does not include event data recorders
36(EDR), sensing and diagnostic modules (SDM), or other systems
37that are used either:

38(A) For the purpose of identifying, diagnosing, or monitoring
39functions related to the potential need to repair, service, or perform
40maintenance on the rental vehicle.

P45   1(B) As part of the vehicle’s airbag sensing and diagnostic system
2in order to capture safety systems-related data for retrieval after a
3crash has occurred or in the event that the collision sensors are
4activated to prepare the decisionmaking computer to make the
5determination to deploy or not to deploy the airbag.

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

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

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

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

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

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

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

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

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

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

38(1) Physical or mechanical damage to the rented vehicle up to
39its fair market value, as determined in the customary market for
P46   1the sale of that vehicle, resulting from collision regardless of the
2cause of the damage.

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

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

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

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

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

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

39(1) The estimated cost of parts which the rental company would
40have to pay to replace damaged vehicle parts. All discounts and
P47   1price reductions or adjustments that are or will be received by the
2rental company shall be subtracted from the estimate to the extent
3not already incorporated in the estimate, or otherwise promptly
4credited or refunded to the renter.

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

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

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

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

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

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

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

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

P48   1(d) (1) The total amount of an authorized driver’s liability to
2the rental company, if any, for damage occurring during the
3authorized driver’s operation of the rented vehicle shall not exceed
4the amount of the renter’s liability under subdivision (c).

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

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

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

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

39(6) This section applies only to the maximum liability of a renter
40or other authorized driver to the rental company resulting from
P49   1damage to the rented vehicle and not to the liability of another
2person.

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

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

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

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

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

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

29(g) (1) A rental company that offers or provides a damage
30waiver for any consideration in addition to the rental rate shall
31clearly and conspicuously disclose the following information in
32the rental contract or holder in which the contract is placed and,
33also, in signs posted at the place, such as the counter, where the
34renter signs the rental contract, and, for renters who are enrolled
35in the rental company’s membership program, in a sign that shall
36be posted in a location clearly visible to those renters as they enter
37the location where their reserved rental cars are parked or near the
38exit of the bus or other conveyance that transports the enrollee to
39a reserved car: (A) the nature of the renter’s liability, such as
40liability for all collision damage regardless of cause, (B) the extent
P50   1of the renter’s liability, such as liability for damage or loss up to
2a specified amount, (C) the renter’s personal insurance policy or
3the credit card used to pay for the car rental transaction may
4provide coverage for all or a portion of the renter’s potential
5liability, (D) the renter should consult with his or her insurer to
6determine the scope of insurance coverage, including the amount
7of the deductible, if any, for which the renter is obligated, (E) the
8renter may purchase an optional damage waiver to cover all
9liability, subject to whatever exceptions the rental company
10expressly lists that are permitted under subdivision (f), and (F) the
11range of charges for the damage waiver.

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

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

3132“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
33AND OPTIONAL DAMAGE WAIVER
34

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

39Your own insurance, or the issuer of the credit card you use to
40pay for the car rental transaction, may cover all or part of your
P51   1financial responsibility for the rented vehicle. You should check
2with your insurance company, or credit card issuer, to find out
3about your coverage and the amount of the deductible, if any, for
4which you may be liable.

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

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


13(A) When the above notice is printed in the rental contract or
14holder in which the contract is placed, the following shall be printed
15immediately following the notice:


17“The cost of an optional damage waiver is $____ for every (day
18or week).”


20(B) When the above notice appears on a sign, the following
21shall appear immediately adjacent to the notice:


23“The cost of an optional damage waiver is $____ to $____ for
24every (day or week), depending upon the vehicle rented.”


26(h) Notwithstanding any other provision of law, a rental
27company may sell a damage waiver subject to the following rate
28limitations for each full or partial 24-hour rental day for the damage
29begin delete waiver.end deletebegin insert waiver:end insert

30(1) For rental vehicles that the rental company designates as an
31“economy car,”begin delete “subcompact car,”end delete “compact car,” or another term
32having similar meaningbegin delete when offered for rental, or another vehicle
33having a manufacturer’s suggested retail price of nineteen thousand
34dollars ($19,000) or less, the rate shall not exceed nine dollars
35($9).end delete
begin insert to the two smallest body-size categories of vehicles
36established by the Association of Car Rental Industry Systems
37Standards for North America, as of January 1, 2014, when offered
38for rental, the rate shall not exceed eleven dollars ($11).end insert

39(2) For rental vehicles thatbegin delete have a manufacturer’s suggested
40retail price from nineteen thousand one dollars ($19,001) to
P52   1thirty-four thousand nine hundred ninety-nine dollars ($34,999),
2inclusive,end delete
begin insert the rental company designates as an “intermediate car,”
3“standard car,” or “fullend insert
begin insert-size car,” or another term having similar
4meaning to the next three body-size categories of vehicles
5established by the Association of Car Rental Industry Systems
6Standards for North America, as of January 1, 2014,end insert
and that are
7also either vehicles ofbegin delete next year’s model,end deletebegin insert the next model year,end insert or
8not older than the previous year’s model,begin insert when offered for rental,end insert
9 the rate shall not exceedbegin delete fifteen dollars ($15).end deletebegin insert seventeen dollars
10($17).end insert
Forbegin delete thoseend delete rental vehiclesbegin insert that areend insert older than the previous
11year’sbegin delete model-year,end deletebegin insert model year,end insert the rate shall not exceedbegin delete nine
12dollars ($9).end delete
begin insert eleven dollars ($11).end insert

begin delete

13(i) The manufacturer’s suggested retail prices described in
14subdivision (h) shall be adjusted annually to reflect changes from
15the previous year in the Consumer Price Index. For the purposes
16of this section, “Consumer Price Index” means the United States
17Consumer Price Index for All Urban Consumers, for all items.

18(j)

end delete

19begin insert(i)end insert A rental company that disseminates in this state an
20advertisement containing a rental rate shall include in that
21advertisement a clearly readable statement of the charge for a
22damage waiver and a statement that a damage waiver is optional.

begin delete

23(k)

end delete

24begin insert(j)end insert (1) A rental company shall not require the purchase of a
25damage waiver, optional insurance, or another optional good or
26service.

27(2) A rental company shall not engage in any unfair, deceptive,
28or coercive conduct to induce a renter to purchase the damage
29waiver, optional insurance, or another optional good or service,
30including conduct such as, but not limited to, refusing to honor
31the renter’s reservation, limiting the availability of vehicles,
32requiring a deposit, or debiting or blocking the renter’s credit card
33account for a sum equivalent to a deposit if the renter declines to
34purchase the damage waiver, optional insurance, or another
35optional good or service.

begin delete

36(l)

end delete

37begin insert(k)end insert (1) In the absence of express permission granted by the
38renter subsequent to damage to, or loss of, the vehicle, a rental
39company shall not seek to recover any portion of a claim arising
40out of damage to, or loss of, the rented vehicle by processing a
P53   1credit card charge or causing a debit or block to be placed on the
2renter’s credit card account.

3(2) A rental company shall not engage in any unfair, deceptive,
4or coercive tactics in attempting to recover or in recovering on any
5claim arising out of damage to, or loss of, the rented vehicle.

begin delete

6(m)

end delete

7begin insert(l)end insert (1) A customer facility charge may be collected by a rental
8company under the following circumstances:

9(A) Collection of the fee by the rental company is required by
10an airport operated by a city, a county, a city and county, a joint
11powers authority, a special district, or the San Diego County
12Regional Airport Authority formed pursuant to Division 17
13(commencing with Section 170000) of the Public Utilities Code.

14(B) The fee is calculated on a per contract basis or as provided
15in paragraph (2).

16(C) The fee is a user fee, not a tax imposed upon real property
17or anbegin delete incidenceend deletebegin insert incidentend insert of property ownership under Article XIII D
18of the California Constitution.

19(D) Except as otherwise provided in subparagraph (E), the fee
20shall be ten dollars ($10) per contract or the amount provided in
21paragraph (2).

22(E) The fee for a consolidated rental car facility shall be
23collected only from customers of on-airport rental car companies.
24If the fee imposed by the airport is for both a consolidated rental
25car facility and a common-use transportation system, the fee
26collected from customers of on-airport rental car companies shall
27be ten dollars ($10) or the amount provided in paragraph (2), but
28the fee imposed on customers of off-airport rental car companies
29who are transported on the common-use transportation system is
30proportionate to the costs of the common-use transportation system
31only. The fee is uniformly applied to each class of on-airport or
32 off-airport customers, provided that the airport requires off-airport
33customers to use the common-use transportation system. For
34purposes of this subparagraph, “on-airport rental car company”
35means a rental company operating under an airport property lease
36or an airport concession or license agreement whose customers
37use or will use the consolidated rental car facility and the collection
38of the fee as to those customers is consistent with subparagraph
39(C).

P54   1(F) Revenues collected from the fee do not exceed the reasonable
2costs of financing, designing, and constructing the facility and
3financing, designing, constructing, and operating any common-use
4transportation system, or acquiring vehicles for use in that system,
5and shall not be used for any other purpose.

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

7(H) This paragraph does not apply to fees which are governed
8by Section 50474.1 of the Government Code or Section 57.5 of
9the San Diego Unified Port Districtbegin delete Act.end deletebegin insert Act (Chapter 67 of the
10First Extraordinary Session of the Statutes of 1962).end insert

11(I) For any airport seeking to require rental car companies to
12collect an alternative customer facility charge pursuant to paragraph
13(2), the following provisions apply:

14(i) Notwithstanding Section 10231.5 of the Government Code,
15the airport shall provide reports on an annual basis to the Senate
16and Assembly Committees on Judiciary detailing all of the
17following:

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

19(II) How the funds are being spent.

20(III) The amount of and reason for any changes in the airport’s
21budget or financial needs for the facility or common-use
22transportation system.

23(IV) Whether airport concession fees authorized by Section
241936.01 have increased since the prior report, if any.

25(ii) (I) The airport shall complete the audit required by
26subparagraph (B) of paragraph (4) of subdivision (a) prior tobegin insert theend insert
27 initial collection of the customer facility charge. Notwithstanding
28Section 10231.5 of the Government Code, copies of the audit shall
29be provided to the Assembly and Senate Committees on Judiciary,
30the Assembly Committee on Transportation, and the Senate
31Committee on Transportation and Housing and shall be posted on
32the airport’s Internet Web site.

33(II) Prior to any increase pursuant to paragraph (2), the airport
34shall update the information provided in the initial collection audit
35pursuant to subclause (I). Notwithstanding Section 10231.5 of the
36Government Code, copies of the updated audit shall be provided
37to the Assembly and Senate Committees on Judiciary, the
38Assembly Committee on Transportation, and the Senate Committee
39on Transportation andbegin delete Housingend deletebegin insert Housing,end insert and shall be posted on
40the airport’s Internet Web site.

P55   1(III) An audit shall be completed every three years after initial
2collection only if the customer facility charge is collected for the
3purpose of operating a common-use transportation system or to
4acquire vehicles for use inbegin delete such aend deletebegin insert theend insert system pursuant to clause
5(ii) of subparagraph (A) of paragraph (4) of subdivision (a). A
6regularly conducted audit of airport finances that includes the
7customer facility charge information, that satisfies the requirements
8of subparagraph (B) of paragraph (4) of subdivision (a), and is
9produced in accordance with the generally accepted accounting
10principles of the Government Accounting Standards Board, shall
11satisfy the requirements of this subclause. This obligation shall
12continue until the fee authorization becomes inoperative pursuant
13to subparagraph (C) of paragraph (4) of subdivision (a).
14Notwithstanding Section 10231.5 of the Government Code, the
15information reported pursuant to this subclause shall be compiled
16into one document, shall be provided to the Assembly and Senate
17Committees on Judiciary, the Assembly Committee on
18Transportation, and the Senate Committee on Transportation and
19Housing and shall be posted on the airport’s Internet Web site
20 accessible to the public. The information reported shall be
21contained within one easily accessible page contained within the
22airport’s Internet Web site.

23(IV) This section shall not be construed to require an airport to
24audit a common-use transportation system not financed by a
25customer facility charge and used for the purposes permitted
26pursuant to clause (ii) of subparagraph (A) of paragraph (4) of
27subdivision (a).

28(V) The airport shall post on the airport’s Internet Web site
29copies of the completed audits required by this clause for a period
30of six years following the audit’s completion.

31(iii) Use of the bonds shall be limited to construction and design
32of the consolidated rental car facility, terminal modifications, and
33operating costs of the common-use transportation system, as
34specified in paragraph (4) of subdivision (a).

35(2) Any airport may require rental car companies to collect an
36alternative customer facility charge under the following conditions:

37(A) The airport first conducts a publicly noticed hearing pursuant
38to the Ralph M. Brown Act (Chapter 9 (commencing with Section
3954950) of Part 1 of Division 2 of Title 5 of the Government Code)
40to review the costs of financing the design and construction of a
P56   1consolidated rental car facility and the design, construction, and
2operation of any common-use transportation system in which all
3of the following occur:

4(i) The airport establishes the amount of revenue necessary to
5finance the reasonable cost to design and construct a consolidated
6rental car facility and to design, construct, and operate any
7common-use transportation system, or acquire vehicles for use in
8that system, based on evidence presented during the hearing.

9(ii) The airport finds, based on evidence presented during the
10hearing, that the fee authorized in paragraph (1) will not generate
11sufficient revenue to finance the reasonable costs to design and
12construct a consolidated rental car facility and to design, construct,
13and operate any common-use transportation system, or acquire
14vehicles for use in that system.

15(iii) The airport finds that the reasonable cost of the project
16requires the additional amount of revenue that would be generated
17by the proposed daily rate, including any rate increase, authorized
18pursuant to this paragraph.

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

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

21(II) Other potential alternatives for meeting its revenue needs
22other than the collection of the fee.

23(III) The extent to which rental car companies or other
24businesses or individuals using the facility or common-use
25transportation system will pay for the costs associated with these
26facilities and systems other than the fee from rental customers.

27(B) The airport may not require the fee authorized in this
28paragraph to be collected at any time that the fee authorized in
29paragraph (1) of this subdivision is being collected.

30(C) Pursuant to the procedure set forth in this subdivision, the
31fee may be collected at a rate charged on a per-day basis subject
32to the following conditions:

33(i) Commencing January 1, 2011, the amount of the fee may
34not exceed six dollars ($6) per day.

35(ii) Commencing January 1, 2014, the amount of the fee may
36not exceed seven dollars and fifty cents ($7.50) per day.

37(iii) Commencing January 1, 2017, and thereafter, the amount
38of the fee may not exceed nine dollars ($9) per day.

P57   1(iv) At no time shall the fee authorized in this paragraph be
2collected from any customer for more than five days for each
3individual rental car contract.

4(v) An airport subject to this paragraph shall initiate the process
5for obtaining the authority to require or increase the alternative
6fee no later than January 1, 2018. Any airport that obtains the
7authority to require or increase an alternative fee shall be authorized
8to continue collecting that fee until the fee authorization becomes
9inoperative pursuant to subparagraph (C) of paragraph (4) of
10subdivision (a).

11(3) Notwithstanding any other provision of law, including, but
12not limited to, Part 1 (commencing with Section 6001) to Part 1.7
13(commencing with Section 7280), inclusive, of Division 2 of the
14Revenue and Taxation Code, the fees collected pursuant to this
15section, or another law whereby a local agency operating an airport
16requires a rental car company to collect a facility financing fee
17from its customers, are not subject to sales, use, or transaction
18taxes.

begin delete

19(n)

end delete

20begin insert(m)end insert (1) A rental company shall only advertise, quote, and charge
21a rental rate that includes the entire amount except taxes, a
22customer facility charge, if any, and a mileage charge, if any, that
23a renter must pay to hire or lease the vehicle for the period of time
24to which the rental rate applies. A rental company shall not charge
25in addition to the rental rate, taxes, a customer facility charge, if
26any, and a mileage charge, if any, any fee that is required to be
27paid by the renter as a condition of hiring or leasing the vehicle,
28including, but not limited to, required fuel or airport surcharges
29other than customer facility charges, nor a fee for transporting the
30renter to the location where the rented vehicle will be delivered to
31the renter.

32(2) In addition to the rental rate, taxes, customer facility charges,
33if any, and mileage charges, if any, a rental company may charge
34for an item or service provided in connection with a particular
35rental transaction if the renter could have avoided incurring the
36charge by choosing not to obtain or utilize the optional item or
37service. Items and services for which the rental company may
38impose an additional charge include, but are not limited to, optional
39insurance and accessories requested by the renter, service charges
40incident to the renter’s optional return of the vehicle to a location
P58   1other than the location where the vehicle was hired or leased, and
2charges for refueling the vehicle at the conclusion of the rental
3transaction in the event the renter did not return the vehicle with
4as much fuel as was in the fuel tank at the beginning of the rental.
5A rental company also may impose an additional charge based on
6reasonable age criteria established by the rental company.

7(3) A rental company shall not charge a fee for authorized
8drivers in addition to the rental charge for an individual renter.

9(4) If a rental company states a rental rate in print advertisement
10or in a telephonic, in-person, or computer-transmitted quotation,
11the rental company shall disclose clearly in that advertisement or
12quotation the terms of mileage conditions relating to the advertised
13or quoted rental rate, including, but not limited to, to the extent
14applicable, the amount of mileage and gas charges, the number of
15miles for which no charges will be imposed, and a description of
16geographic driving limitations within the United States and Canada.

17(5) (A) When a rental rate is stated in an advertisement,
18quotation, or reservation in connection with a car rental at an airport
19where a customer facility charge is imposed, the rental company
20shall disclose clearly the existence and amount of the customer
21facility charge. For purposes of this subparagraph, advertisements
22include radio, television, other electronic media, and print
23advertisements. For purposes of this subparagraph, quotations and
24reservations include those that are telephonic, in-person, and
25computer-transmitted. If the rate advertisement is intended to
26include transactions at more than one airport imposing a customer
27facility charge, a range of fees may be stated in the advertisement.
28However, all rate advertisements that include car rentals at airport
29destinations shall clearly and conspicuously include a toll-free
30telephone number whereby a customer can be told the specific
31amount of the customer facility charge to which the customer will
32be obligated.

33(B) If a person or entity other than a rental car company,
34including a passenger carrier or a seller of travel services, advertises
35or quotes a rate for a car rental at an airport where a customer
36facility charge is imposed, that person or entity shall, provided
37that he, she, or it is provided with information about the existence
38and amount of the fee, to the extent not specifically prohibited by
39federal law, clearly disclose the existence and amount of the fee
40in any telephonic, in-person, or computer-transmitted quotation at
P59   1the time of making an initial quotation of a rental rate and at the
2time of making a reservation of a rental car. If a rental car company
3provides the person or entity with rate and customer facility charge
4information, the rental car company is not responsible for the
5failure of that person or entity to comply with this subparagraph
6when quoting or confirming a rate to a third person or entity.

7(6) If a rental company delivers a vehicle to a renter at a location
8other than the location where the rental company normally carries
9on its business, the rental company shall not charge the renter an
10amount for the rental for the period before the delivery of the
11vehicle. If a rental company picks up a rented vehicle from a renter
12at a location other than the location where the rental company
13normally carries on its business, the rental company shall not
14charge the renter an amount for the rental for the period after the
15renter notifies the rental company to pick up the vehicle.

begin delete

16(o)

end delete

17begin insert(n)end insert A rental company shall not use, access, or obtain any
18information relating to the renter’s use of the rental vehicle that
19was obtained using electronic surveillance technology, except in
20the following circumstances:

21(1) (A) When the equipment is used by the rental company
22only for the purpose of locating a stolen, abandoned, or missing
23rental vehicle after one of the following:

24(i) The renter or law enforcement has informed the rental
25company that the vehicle is missing or has been stolen or
26abandoned.

27(ii) The rental vehicle has not been returned following one week
28after the contracted return date, or by one week following the end
29of an extension of that return date.

30(iii) The rental company discovers the rental vehicle has been
31stolen or abandoned, and, if stolen, it shall report the vehicle stolen
32to law enforcement by filing a stolen vehicle report, unless law
33enforcement has already informed the rental company that the
34vehicle is missing or has been stolen or abandoned.

35(B) If electronic surveillance technology is activated pursuant
36to subparagraph (A), a rental company shall maintain a record, in
37either electronic or written form, of information relevant to the
38activation of that technology. That information shall include the
39rental agreement, including the return date, and the date and time
40the electronic surveillance technology was activated. The record
P60   1shall also include, if relevant, a record of written or other
2communication with the renter, including communications
3regarding extensions of the rental, police reports, or other written
4communication with law enforcement officials. The record shall
5be maintained for a period of at least 12 months from the time the
6record is created and shall be made available upon the renter’s
7request. The rental company shall maintain and furnish explanatory
8codes necessary to read the record. A rental company shall not be
9required to maintain a record if electronic surveillance technology
10is activated to recover a rental vehicle that is stolen or missing at
11a time other than during a rental period.

12(2) In response to a specific request from law enforcement
13pursuant to a subpoena or search warrant.

14(3) This subdivision does not prohibit a rental company from
15equipping rental vehicles with GPS-based technology that provides
16navigation assistance to the occupants of the rental vehicle, if the
17rental company does not use, access, or obtain information relating
18to the renter’s use of the rental vehicle that was obtained using
19that technology, except for the purposes of discovering or repairing
20a defect in the technology and the information may then be used
21only for that purpose.

22(4) This subdivision does not prohibit a rental company from
23equipping rental vehicles with electronic surveillance technology
24that allows for the remote locking or unlocking of the vehicle at
25the request of the renter, if the rental company does not use, access,
26or obtain information relating to the renter’s use of the rental
27vehicle that was obtained using that technology, except as
28necessary to lock or unlock the vehicle.

29(5) This subdivision does not prohibit a rental company from
30equipping rental vehicles with electronic surveillance technology
31that allows the company to provide roadside assistance, such as
32towing, flat tire, or fuel services, at the request of the renter, if the
33rental company does not use, access, or obtain information relating
34to the renter’s use of the rental vehicle that was obtained using
35that technology except as necessary to provide the requested
36roadside assistance.

37(6) This subdivision does not prohibit a rental company from
38obtaining, accessing, or using information from electronic
39surveillance technology for the sole purpose of determining the
40date and time the vehicle is returned to the rental company, and
P61   1the total mileage driven and the vehicle fuel level of the returned
2vehicle. This paragraph, however, shall apply only after the renter
3has returned the vehicle to the rental company, and the information
4shall only be used for the purpose described in this paragraph.

begin delete

5(p)

end delete

6begin insert(o)end insert A rental company shall not use electronic surveillance
7technology to track a renter in order to impose fines or surcharges
8relating to the renter’s use of the rental vehicle.

begin delete

9(q)

end delete

10begin insert(p)end insert A renter may bring an action against a rental company for
11the recovery of damages and appropriate equitable relief for a
12violation of this section. The prevailing party shall be entitled to
13recover reasonable attorney’s fees and costs.

begin delete

14(r)

end delete

15begin insert(q)end insert A rental company that brings an action against a renter for
16loss due to theft of the vehicle shall bring the action in the county
17in which the renter resides or, if the renter is not a resident of this
18state, in the jurisdiction in which the renter resides.

begin delete

19(s)

end delete

20begin insert(r)end insert A waiver of any of the provisions of this section shall be
21void and unenforceable as contrary to public policy.

begin delete

22(t)

end delete

23begin insert(s)end insert (1) A rental company’s disclosure requirements shall be
24satisfied for renters who are enrolled in the rental company’s
25membership program if all of the following conditions are met:

26(A) Prior to the enrollee’s first rental as a participant in the
27program, the renter receives, in writing, the following:

28(i) All of the disclosures required by paragraph (1) of subdivision
29(g), including the terms and conditions of the rental agreement
30then in effect.

31(ii) An Internet Web site address, as well as a contact number
32or address, where the enrollee can learn of changes to the rental
33agreement or to the laws of this state governing rental agreements
34since the effective date of the rental company’s most recent
35restatement of the rental agreement and distribution of that
36restatement to its members.

37(B) At the commencement of each rental period, the renter is
38provided, on the rental record or the folder in which it is inserted,
39with a printed notice stating that he or she had either previously
P62   1selected or declined an optional damage waiver and that the renter
2has the right to change preferences.

3(C) At the commencement of each rental period, the rental
4company provides, on the rearview mirror, a hanger on which a
5statement is printed, in a box, in at least 12-point boldface type,
6notifying the renter that the collision damage waiver offered by
7the rental company may be duplicative of coverage that the
8customer maintains under his or her own policy of motor vehicle
9insurance. If it is not feasible to hang the statement from the
10rearview mirror, it shall be hung from the steering wheel.

11The hanger shall provide the renter a box to initial if he or she
12(not his or her employer) has previously accepted or declined the
13collision damage waiver and that he or she now wishes to change
14his or her decision to accept or decline the collision damage waiver,
15as follows:


17begin delete“◻end deletebegin deleteend deletebegin deleteIf end deletebegin insert“If end insertI previously accepted the collision damage waiver, I
18now decline it.

begin deleteend delete
19begin deleteend deletebegin deleteend deleteIf I previously declined the collision damage waiver, I now
20accept it.”


22The hanger shall also provide a box for the enrollee to indicate
23whether this change applies to this rental transaction only or to all
24future rental transactions. The hanger shall also notify the renter
25that he or she may make that change, prior to leaving the lot, by
26returning the form to an employee designated to receive the form
27who is present at the lot where the renter takes possession of the
28car, to receive any change in the rental agreement from the renter.

29(2) (A) This subdivision is not effective unless the employee
30designated pursuant to subparagraph (E) of paragraph (8) of
31subdivision (a) is actually present at the required location.

32(B) This subdivision does not relieve the rental company from
33the disclosures required to be made within the text of a contract
34or holder in which the contract is placed; in or on an advertisement
35containing a rental rate; or in a telephonic, in-person, or
36computer-transmitted quotation or reservation.

begin delete

37(u)

end delete

38begin insert(t)end insert The amendments made to this section during the 2001-02
39Regular Session of the Legislature do not affect litigation pending
40on or before January 1, 2003, alleging a violation of Section 22325
P63   1of the Business and Professions Code as it read at the time the
2action was commenced.

begin delete

3(v)

end delete

4begin insert(u)end insert This section shall become operative on January 1,begin delete 2015end delete
5begin insert 2020end insert.

6

SEC. 2.  

Section 1936.01 of the Civil Code is amended to read:

7

1936.01.  

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

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

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

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

25(b) Notwithstanding subdivision (m) of Section 1936, the
26following provisions shall apply:

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

32(2) When providing a quote, or imposing charges for a rental,
33the rental company may separately state the rental rate, taxes,
34customer facility charge, if any, airport concession fee, if any,
35tourism commission assessment, if any, and a mileage charge, if
36any, that a renter must pay to hire or lease the vehicle for the period
37of time to which the rental rate applies. A rental company may not
38charge in addition to the rental rate, taxes, a customer facility
39charge, if any, airport concession fee, if any, tourism commission
40assessment, if any, and a mileage charge, if any, any fee that must
P64   1be paid by the renter as a condition of hiring or leasing the vehicle,
2such as, but not limited to, required fuel or airport surcharges other
3than customer facility charges and airport concession fees.

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

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

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

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

39(4) In addition to the rental rate, taxes, customer facility charges,
40if any, airport concession fees, if any, tourism commission
P65   1assessments, if any, and mileage charges, if any, a rental company
2may charge for an item or service provided in connection with a
3particular rental transaction if the renter could have avoided
4incurring the charge by choosing not to obtain or utilize the
5optional item or service. Items and services for which the rental
6company may impose an additional charge, include, but are not
7limited to, optional insurance and accessories requested by the
8renter, service charges incident to the renter’s optional return of
9the vehicle to a location other than the location where the vehicle
10was hired or leased, and charges for refueling the vehicle at the
11conclusion of the rental transaction in the event the renter did not
12return the vehicle with as much fuel as was in the fuel tank at the
13beginning of the rental. A rental company also may impose an
14additional charge based on reasonable age criteria established by
15the rental company.

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

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

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

P66   1(B) If any person or entity other than a rental car company,
2including a passenger carrier or a seller of travel services, advertises
3a rental rate for a car rental at an airport where a customer facility
4charge is imposed, that person or entity shall, provided they are
5provided with information about the existence and amount of the
6charge, to the extent not specifically prohibited by federal law,
7clearly disclose the existence and amount of the charge. If a rental
8car company provides the person or entity with rental rate and
9customer facility charge information, the rental car company is
10not responsible for the failure of that person or entity to comply
11with this subparagraph.

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

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

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

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

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

36

SEC. 3.  

Section 1936.015 of the Civil Code is amended to
37read:

38

1936.015.  

(a) For the purposes of this section, the following
39definitions shall apply:

P67   1(1) “Vehicle license fee” has the same meaning as in Sections
210751 and 10752 of the Revenue and Taxation Code, as that fee
3existed on January 1, 2009.

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

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

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

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

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

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

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

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

37(2) As of November 21, 2009, and annually as of each
38November 21 thereafter, a rental company shall reconcile the
39amount of increased vehicle license fees actually paid by the rental
40company during the preceding 12 months for each class of vehicle
P68   1and the amount of increased vehicle license recovery fees charged
2to customers during that same 12-month period for rental of
3vehicles in those classes. The rental company shall post that
4information on its Internet Web site by December 31 of each year.

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

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

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

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

31(A) At the time the quote is given, provide the person receiving
32the quote with a good faith estimate of the rental rate, taxes, the
33increased vehicle license recovery fee, customer facility charge,
34if any, airport concession fee, if any, and tourism commission
35assessment, if any, as well as the total charges for the entire rental.
36The total charges, if provided on an Internet Web site, shall be
37displayed in a typeface at least as large as any rental rate disclosed
38on that page and shall be provided on a page that the person
39receiving the quote may reach by following links through no more
40than two Internet Web site pages, including the page on which the
P69   1rental rate is first provided. The good faith estimate may exclude
2mileage charges and charges for optional items that cannot be
3determined prior to completing the reservation based upon the
4information provided by the person.

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

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

25(7) In addition to the rental rate, taxes, the increased vehicle
26license recovery fee, customer facility charges, if any, airport
27concession fees, if any, tourism commission assessments, if any,
28and mileage charges, if any, a rental company may charge for an
29item or service provided in connection with a particular rental
30transaction if the renter could have avoided incurring the charge
31by choosing not to obtain or utilize the optional item or service.
32Items and services for which the rental company may impose an
33additional charge, include, but are not limited to, optional insurance
34and accessories requested by the renter, service charges incident
35to the renter’s optional return of the vehicle to a location other
36than the location where the vehicle was hired or leased, and charges
37for refueling the vehicle at the conclusion of the rental transaction
38in the event the renter did not return the vehicle with as much fuel
39as was in the fuel tank at the beginning of the rental. A rental
P70   1company also may impose an additional charge based on
2reasonable age criteria established by the rental company.

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

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

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

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

39(11) If a rental company delivers a vehicle to a renter at a
40location other than the location where the rental company normally
P71   1carries on its business, the rental company may not charge the
2renter any amount for the rental for the period before the delivery
3of the vehicle. If a rental company picks up a rented vehicle from
4a renter at a location other than the location where the rental
5company normally carries on its business, the rental company may
6not charge the renter any amount for the rental for the period after
7the renter notifies the rental company to pick up the vehicle.

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

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

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

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

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

31

SEC. 4.  

Section 1936.05 of the Civil Code is amended to read:

32

1936.05.  

(a) For purposes of this section:

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

35(2) “Business program” means (A) a contract between a rental
36company and a business program sponsor that has established the
37per period base rental rate, and any other material terms relating
38to additional charges, on which the rental company will rent
39passenger vehicles to persons authorized by the sponsor, or (B) a
40plan, program, or other arrangement established by a rental
P72   1company at the request of, or with the consent of, a business
2 program sponsor under which the rental company offers to rent
3passenger vehicles to persons authorized by the sponsor at per
4period base rental rates, and any other material terms relating to
5additional charges, that are not the same as those generally offered
6by the rental company to the public.

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

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

26(5) “Qualified business rental” under a business program
27established for a business program sponsor by a rental company
28means the rental of a passenger vehicle under the business program
29if either (A) in the 12-month period ending on the date of the rental
30or in the calendar year immediately preceding the year in which
31the rental occurs, the rentals under all business programs
32established by the rental company for the business program sponsor
33and its affiliates produced gross rental revenues in excess of
34twenty-five thousand dollars ($25,000) or (B) the rental company
35in good faith estimates that rentals under all the business programs
36established by the rental company for the business program sponsor
37and its affiliates will produce gross rental revenues in excess of
38twenty-five thousand dollars ($25,000) in the 12-month period
39commencing with the date of the rental or in the calendar year in
40which the rental occurs. The rental company has the burden of
P73   1establishing by objectively verifiable evidence that the rental was
2a qualified business rental.

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

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

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

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

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

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

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

34begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

Sections 1.3 and 1.7 of this bill incorporate
35amendments to Section 1936 of the Civil Code proposed by both
36this bill and AB 2747. Sections 1.3 and 1.7 shall only become
37operative if (1) both bills are enacted and become effective on or
38before January 1, 2015, (2) each bill amends Section 1936 of the
39Civil Code, and (3) this bill is enacted after AB 2747, in which
40case Section 1 of this bill shall not become operative.

end insert


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