California Legislature—2015–16 Regular Session

Assembly BillNo. 675


Introduced by Assembly Member Alejo

February 25, 2015


An act to amend Section 1936.01 of the Civil Code, relating to rental vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 675, as introduced, Alejo. Rental vehicles: separately stated charges.

Existing law requires a rental company, in connection with the rental of a passenger vehicle, to only advertise a rental rate that includes the entire amount, except taxes, a customer facility charge, and a mileage charge, that a renter must pay to rent a vehicle. Existing law specifies that when a rental company provides a quote or imposes a charge, it may separately state the rental rate, taxes, customer facility charge, airport concession, fee tourism commission assessment, as defined, and mileage charge. Existing law prohibits a rental company from charging any additional fees, other than specified charges, that must be paid by the renter as a condition of hiring or leasing the vehicle. Existing law requires a rental company, if customer facility charges, airport concession fees, or tourism commission assessments are imposed, to take specified actions. Existing law made these provisions, and other related provisions, operative only if a specified condition occurred.

This bill would make a technical, nonsubstantive change by deleting that conditional operative provision, because that specified condition occurred.

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 1936.01 of the Civil Code is amended
2to read:

3

1936.01.  

(a) For the purpose of this section, the following
4definitions shall apply:

5(1) “Airport concession fee” means a charge collected by a
6rental company from a renter that is the renter’s proportionate
7share of the amount paid by the rental company to the owner or
8operator of an airport for the right or privilege of conducting a
9vehicle rental business on the airport’s premises.

10(2) “Quote” means an estimated cost of rental provided by a
11rental company or a third party to a potential customer by
12telephone, in-person, computer-transmission, or other means, that
13is based on information provided by the potential customer and
14used to generate an estimated cost of rental, including, but not
15limited to, any of the following: potential dates of rental, locations,
16or classes of car.

17(3) “Tourism commission assessment” means the charge
18collected by a rental company from a renter that has been
19established by the California Travel and Tourism Commission
20pursuant to Section 13995.65 of the Government Code.

21(b) Notwithstanding subdivision (m) of Section 1936, the
22following provisions shall apply:

23(1) A rental company shall only advertise a rental rate that
24includes the entire amount, except taxes, a customer facility charge,
25if any, and a mileage charge, if any, that a renter must pay to hire
26or lease the vehicle for the period of time to which the rental rate
27applies.

28(2) When providing a quote, or imposing charges for a rental,
29the rental company may separately state the rental rate, taxes,
30customer facility charge, if any, airport concession fee, if any,
31tourism commission assessment, if any, and a mileage charge, if
32any, that a renter must pay to hire or lease the vehicle for the period
33of time to which the rental rate applies. A rental company may not
34charge in addition to the rental rate, taxes, a customer facility
35charge, if any, airport concession fee, if any, tourism commission
36assessment, if any, and a mileage charge, if any, any fee that must
37be paid by the renter as a condition of hiring or leasing the vehicle,
P3    1such as, but not limited to, required fuel or airport surcharges other
2than customer facility charges and airport concession fees.

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

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

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

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

38(4) In addition to the rental rate, taxes, customer facility charges,
39if any, airport concession fees, if any, tourism commission
40assessments, if any, and mileage charges, if any, a rental company
P4    1may charge for an item or service provided in connection with a
2particular rental transaction if the renter could have avoided
3incurring the charge by choosing not to obtain or utilize the
4optional item or service. Items and services for which the rental
5company may impose an additional charge, include, but are not
6limited to, optional insurance and accessories requested by the
7renter, service charges incident to the renter’s optional return of
8the vehicle to a location other than the location where the vehicle
9was hired or leased, and charges for refueling the vehicle at the
10conclusion of the rental transaction in the event the renter did not
11return the vehicle with as much fuel as was in the fuel tank at the
12beginning of the rental. A rental company also may impose an
13additional charge based on reasonable age criteria established by
14the rental company.

15(5) A rental company may not charge any fee for authorized
16drivers in addition to the rental charge for an individual renter.

17(6) If a rental company states a rental rate in print advertisement
18or in a telephonic, in-person, or computer-transmitted quote, the
19rental company shall clearly disclose in that advertisement or quote
20the terms of any mileage conditions relating to the rental rate
21disclosed in the advertisement or quote, including, but not limited
22to, to the extent applicable, the amount of mileage and gas charges,
23the number of miles for which no charges will be imposed, and a
24description of geographic driving limitations within the United
25States and Canada.

26(7) (A) When a rental rate is stated in an advertisement, in
27connection with a car rental at an airport where a customer facility
28charge is imposed, the rental company shall clearly disclose the
29existence and amount of the customer facility charge. For the
30purposes of this subparagraph, advertisements include radio,
31television, other electronic media, and print advertisements. If the
32rental rate advertisement is intended to include transactions at more
33than one airport imposing a customer facility charge, a range of
34charges may be stated in the advertisement. However, all rental
35rate advertisements that include car rentals at airport destinations
36shall clearly and conspicuously include a toll-free telephone
37number whereby a customer can be told the specific amount of
38the customer facility charge to which the customer will be
39obligated.

P5    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.

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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.

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