California Legislature—2015–16 Regular Session

Assembly BillNo. 2051


Introduced by Assembly Member O'Donnell

February 17, 2016


An act to amend Section 1936 of the Civil Code, relating to rental vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 2051, as introduced, O'Donnell. Rental vehicles: electronic surveillance technology.

Existing law governs the contracts between a rental car company and its customer and, among other things, prohibits a rental car company from using, accessing, or obtaining any information relating to the renter’s use of the rental vehicle that was obtained using electronic surveillance technology unless certain conditions are met, including that the rental vehicle has not been returned following one week after the contracted return date, or by one week following the end of an extension of that return date.

This bill would instead authorize a rental car company to use, access, or obtain information relating to the renter’s use of a rental vehicle that was obtained using electronic surveillance technology if the rental vehicle has not been returned following 3 days after the contracted return date, or by 3 calendar days following the end of an extension of that return date.

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 is amended to
2read:

3

1936.  

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

5(1) “Rental company” means a person or entity in the business
6of renting passenger vehicles to the public.

7(2) “Renter” means any person in a manner obligated under a
8contract for the lease or hire of a passenger vehicle from a rental
9company for a period of less than 30 days.

10(3) “Additional mandatory charges” means any separately stated
11charges that the rental car company requires the renter to pay to
12hire or lease the vehicle for the period of time to which the rental
13rate applies, which are imposed by a governmental entity and
14specifically relate to the operation of a rental car business,
15including, but not limited to, a customer facility charge, airport
16concession fee, tourism commission assessment, vehicle license
17recovery fee, or other government imposed taxes or fees.

18(4) “Airport concession fee” means a charge collected by a
19rental company from a renter that is the renter’s proportionate
20share of the amount paid by the rental company to the owner or
21operator of an airport for the right or privilege of conducting a
22vehicle rental business on the airport’s premises.

23(5) “Authorized driver” means all of the following:

24(A) The renter.

25(B) The renter’s spouse if that person is a licensed driver and
26satisfies the rental company’s minimum age requirement.

27(C) The renter’s employer or coworker if he or she is engaged
28in business activity with the renter, is a licensed driver, and satisfies
29the rental company’s minimum age requirement.

30(D) A person expressly listed by the rental company on that
31renter’s contract as an authorized driver.

32(6) (A) “Customer facility charge” means any fee, including
33an alternative fee, required by an airport to be collected by a rental
34company from a renter for any of the following purposes:

35(i) To finance, design, and construct consolidated airport car
36rental facilities.

37(ii) To finance, design, construct, and operate common-use
38transportation systems that move passengers between airport
P3    1 terminals and those consolidated car rental facilities, and acquire
2vehicles for use in that system.

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

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

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

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

3(7) “Damage waiver” means a rental company’s agreement not
4to hold a renter liable for all or any portion of any damage or loss
5 related to the rented vehicle, any loss of use of the rented vehicle,
6or any storage, impound, towing, or administrative charges.

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

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

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

22(9) “Estimated time for replacement” means the number of hours
23of labor, or fraction thereof, needed to replace damaged vehicle
24parts as set forth in collision damage estimating guides generally
25used in the vehicle repair business and commonly known as “crash
26books.”

27(10) “Estimated time for repair” means a good faith estimate of
28the reasonable number of hours of labor, or fraction thereof, needed
29to repair damaged vehicle parts.

30(11) “Membership program” means a service offered by a rental
31company that permits customers to bypass the rental counter and
32go directly to the car previously reserved. A membership program
33shall meet all of the following requirements:

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

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

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

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

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

9(12) “Passenger vehicle” means a passenger vehicle as defined
10in Section 465 of the Vehicle Code.

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

17(14) “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(15) “Vehicle license fee” means the tax imposed pursuant to
22the Vehicle License Fee Law (Part 5 (commencing with Section
2310701) of Division 2 of the Revenue and Taxation Code).

24(16) “Vehicle registration fee” means any fee imposed pursuant
25to any provision of Chapter 6 (commencing with Section 9101)
26of Division 3 of the Vehicle Code.

27(17) “Vehicle license recovery fee” means a charge that seeks
28to recover the amount of any vehicle license fee and vehicle
29registration fee paid by a rental company for the particular class
30of vehicle being rented.

31(b) Except as limited by subdivision (c), a rental company and
32a renter may agree that the renter will be responsible for no more
33than all of the following:

34(1) Physical or mechanical damage to the rented vehicle up to
35its fair market value, as determined in the customary market for
36the sale of that vehicle, resulting from collision regardless of the
37cause of the damage.

38(2) Loss due to theft of the rented vehicle up to its fair market
39value, as determined in the customary market for the sale of that
40vehicle, provided that the rental company establishes by clear and
P6    1convincing evidence that the renter or the authorized driver failed
2to exercise ordinary care while in possession of the vehicle. In
3addition, the renter shall be presumed to have no liability for any
4loss due to theft if (A) an authorized driver has possession of the
5ignition key furnished by the rental company or an authorized
6driver establishes that the ignition key furnished by the rental
7company was not in the vehicle at the time of the theft, and (B) an
8authorized driver files an official report of the theft with the police
9or other law enforcement agency within 24 hours of learning of
10the theft and reasonably cooperates with the rental company and
11the police or other law enforcement agency in providing
12information concerning the theft. The presumption set forth in this
13paragraph is a presumption affecting the burden of proof which
14the rental company may rebut by establishing that an authorized
15driver committed, or aided and abetted the commission of, the
16theft.

17(3) Physical damage to the rented vehicle up to its fair market
18value, as determined in the customary market for the sale of that
19vehicle, resulting from vandalism occurring after, or in connection
20with, the theft of the rented vehicle. However, the renter shall have
21no liability for any damage due to vandalism if the renter would
22have no liability for theft pursuant to paragraph (2).

23(4) Physical damage to the rented vehicle up to a total of five
24hundred dollars ($500) resulting from vandalism unrelated to the
25theft of the rented vehicle.

26(5) Actual charges for towing, storage, and impound fees paid
27by the rental company if the renter is liable for damage or loss.

28(6) An administrative charge, which shall include the cost of
29appraisal and all other costs and expenses incident to the damage,
30loss, repair, or replacement of the rented vehicle.

31(c) The total amount of the renter’s liability to the rental
32company resulting from damage to the rented vehicle shall not
33exceed the sum of the following:

34(1) The estimated cost of parts which the rental company would
35have to pay to replace damaged vehicle parts. All discounts and
36price reductions or adjustments that are or will be received by the
37rental company shall be subtracted from the estimate to the extent
38not already incorporated in the estimate, or otherwise promptly
39credited or refunded to the renter.

P7    1(2) The estimated cost of labor to replace damaged vehicle parts,
2which shall not exceed the product of (A) the rate for labor usually
3paid by the rental company to replace vehicle parts of the type that
4were damaged and (B) the estimated time for replacement. All
5discounts and price reductions or adjustments that are or will be
6received by the rental company shall be subtracted from the
7estimate to the extent not already incorporated in the estimate, or
8otherwise promptly credited or refunded to the renter.

9(3) (A) The estimated cost of labor to repair damaged vehicle
10parts, which shall not exceed the lesser of the following:

11(i) The product of the rate for labor usually paid by the rental
12company to repair vehicle parts of the type that were damaged and
13the estimated time for repair.

14(ii) The sum of the estimated labor and parts costs determined
15under paragraphs (1) and (2) to replace the same vehicle parts.

16(B) All discounts and price reductions or adjustments that are
17or will be received by the rental company shall be subtracted from
18the estimate to the extent not already incorporated in the estimate,
19or otherwise promptly credited or refunded to the renter.

20(4) For the purpose of converting the estimated time for repair
21into the same units of time in which the rental rate is expressed, a
22day shall be deemed to consist of eight hours.

23(5) Actual charges for towing, storage, and impound fees paid
24by the rental company.

25(6) The administrative charge described in paragraph (6) of
26subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
27estimated cost for parts and labor is more than one hundred dollars
28($100) up to and including five hundred dollars ($500), (B) one
29hundred dollars ($100) if the total estimated cost for parts and
30labor exceeds five hundred dollars ($500) up to and including one
31thousand five hundred dollars ($1,500), and (C) one hundred fifty
32dollars ($150) if the total estimated cost for parts and labor exceeds
33one thousand five hundred dollars ($1,500). An administrative
34charge shall not be imposed if the total estimated cost of parts and
35labor is one hundred dollars ($100) or less.

36(d) (1) The total amount of an authorized driver’s liability to
37the rental company, if any, for damage occurring during the
38authorized driver’s operation of the rented vehicle shall not exceed
39the amount of the renter’s liability under subdivision (c).

P8    1(2) A rental company shall not recover from the renter or other
2authorized driver an amount exceeding the renter’s liability under
3subdivision (c).

4(3) A claim against a renter resulting from damage or loss,
5excluding loss of use, to a rental vehicle shall be reasonably and
6rationally related to the actual loss incurred. A rental company
7shall mitigate damages where possible and shall not assert or collect
8a claim for physical damage which exceeds the actual costs of the
9repairs performed or the estimated cost of repairs, if the rental
10company chooses not to repair the vehicle, including all discounts
11and price reductions. However, if the vehicle is a total loss vehicle,
12the claim shall not exceed the total loss vehicle value established
13in accordance with procedures that are customarily used by
14insurance companies when paying claims on total loss vehicles,
15less the proceeds from salvaging the vehicle, if those proceeds are
16retained by the rental company.

17(4) If insurance coverage exists under the renter’s applicable
18personal or business insurance policy and the coverage is confirmed
19during regular business hours, the renter may require that the rental
20company submit any claims to the renter’s applicable personal or
21business insurance carrier. The rental company shall not make any
22written or oral representations that it will not present claims or
23negotiate with the renter’s insurance carrier. For purposes of this
24paragraph, confirmation of coverage includes telephone
25confirmation from insurance company representatives during
26regular business hours. Upon request of the renter and after
27confirmation of coverage, the amount of claim shall be resolved
28between the insurance carrier and the rental company. The renter
29shall remain responsible for payment to the rental car company
30for any loss sustained that the renter’s applicable personal or
31business insurance policy does not cover.

32(5) A rental company shall not recover from the renter or other
33authorized driver for an item described in subdivision (b) to the
34extent the rental company obtains recovery from another person.

35(6) This section applies only to the maximum liability of a renter
36or other authorized driver to the rental company resulting from
37damage to the rented vehicle and not to the liability of another
38person.

39(e) (1) Except as provided in subdivision (f), a damage waiver
40shall provide or, if not expressly stated in writing, shall be deemed
P9    1to provide that the renter has no liability for damage, loss, loss of
2use, or a cost or expense incident thereto.

3(2) Except as provided in subdivision (f), every limitation,
4exception, or exclusion to a damage waiver is void and
5unenforceable.

6(f) A rental company may provide in the rental contract that a
7damage waiver does not apply under any of the following
8circumstances:

9(1) Damage or loss results from an authorized driver’s (A)
10intentional, willful, wanton, or reckless conduct, (B) operation of
11the vehicle under the influence of drugs or alcohol in violation of
12Section 23152 of the Vehicle Code, (C) towing or pushing
13anything, or (D) operation of the vehicle on an unpaved road if
14the damage or loss is a direct result of the road or driving
15conditions.

16(2) Damage or loss occurs while the vehicle is (A) used for
17commercial hire, (B) used in connection with conduct that could
18be properly charged as a felony, (C) involved in a speed test or
19contest or in driver training activity, (D) operated by a person other
20than an authorized driver, or (E) operated outside the United States.

21(3) An authorized driver who has (A) provided fraudulent
22information to the rental company, or (B) provided false
23information and the rental company would not have rented the
24vehicle if it had instead received true information.

25(g) (1) A rental company that offers or provides a damage
26waiver for any consideration in addition to the rental rate shall
27clearly and conspicuously disclose the following information in
28the rental contract or holder in which the contract is placed and,
29also, in signs posted at the place, such as the counter, where the
30renter signs the rental contract, and, for renters who are enrolled
31in the rental company’s membership program, in a sign that shall
32be posted in a location clearly visible to those renters as they enter
33the location where their reserved rental cars are parked or near the
34exit of the bus or other conveyance that transports the enrollee to
35a reserved car: (A) the nature of the renter’s liability, such as
36liability for all collision damage regardless of cause, (B) the extent
37of the renter’s liability, such as liability for damage or loss up to
38a specified amount, (C) the renter’s personal insurance policy or
39the credit card used to pay for the car rental transaction may
40provide coverage for all or a portion of the renter’s potential
P10   1liability, (D) the renter should consult with his or her insurer to
2determine the scope of insurance coverage, including the amount
3of the deductible, if any, for which the renter is obligated, (E) the
4renter may purchase an optional damage waiver to cover all
5liability, subject to whatever exceptions the rental company
6expressly lists that are permitted under subdivision (f), and (F) the
7range of charges for the damage waiver.

8(2) In addition to the requirements of paragraph (1), a rental
9company that offers or provides a damage waiver shall orally
10disclose to all renters, except those who are participants in the
11rental company’s membership program, that the damage waiver
12may be duplicative of coverage that the customer maintains under
13his or her own policy of motor vehicle insurance. The renter’s
14receipt of the oral disclosure shall be demonstrated through the
15renter’s acknowledging receipt of the oral disclosure near that part
16of the contract where the renter indicates, by the renter’s own
17initials, his or her acceptance or declination of the damage waiver.
18Adjacent to that same part, the contract also shall state that the
19damage waiver is optional. Further, the contract for these renters
20shall include a clear and conspicuous written disclosure that the
21damage waiver may be duplicative of coverage that the customer
22maintains under his or her own policy of motor vehicle insurance.

23(3) The following is an example, for purposes of illustration
24and not limitation, of a notice fulfilling the requirements of
25paragraph (1) for a rental company that imposes liability on the
26renter for collision damage to the full value of the vehicle:
27

28“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
29AND OPTIONAL DAMAGE WAIVER
30

31You are responsible for all collision damage to the rented vehicle
32even if someone else caused it or the cause is unknown. You are
33responsible for the cost of repair up to the value of the vehicle,
34and towing, storage, and impound fees.

35Your own insurance, or the issuer of the credit card you use to
36pay for the car rental transaction, may cover all or part of your
37financial responsibility for the rented vehicle. You should check
38with your insurance company, or credit card issuer, to find out
39about your coverage and the amount of the deductible, if any, for
40which you may be liable.

P11   1Further, if you use a credit card that provides coverage for your
2potential liability, you should check with the issuer to determine
3if you must first exhaust the coverage limits of your own insurance
4before the credit card coverage applies.

5The rental company will not hold you responsible if you buy a
6damage waiver. But a damage waiver will not protect you if (list
7exceptions).”


9(A) When the above notice is printed in the rental contract or
10holder in which the contract is placed, the following shall be printed
11immediately following the notice:


13“The cost of an optional damage waiver is $____ for every (day
14or week).”


16(B) When the above notice appears on a sign, the following
17shall appear immediately adjacent to the notice:


19“The cost of an optional damage waiver is $____ to $____ for
20every (day or week), depending upon the vehicle rented.”


22(h) Notwithstanding any other provision of law, a rental
23company may sell a damage waiver subject to the following rate
24limitations for each full or partial 24-hour rental day for the damage
25waiver:

26(1) For rental vehicles that the rental company designates as an
27“economy car,” “compact car,” or another term having similar
28meaning to the two smallest body-size categories of vehicles
29established by the Association of Car Rental Industry Systems
30Standards for North America, as of January 1, 2014, when offered
31for rental, the rate shall not exceed eleven dollars ($11).

32(2) For rental vehicles that the rental company designates as an
33“intermediate car,” “standard car,” or “full-size car,” or another
34term having similar meaning to the next three body-size categories
35of vehicles established by the Association of Car Rental Industry
36Systems Standards for North America, as of January 1, 2014, and
37that are also either vehicles of the next model-year, or not older
38than the previous year’s model, when offered for rental, the rate
39shall not exceed seventeen dollars ($17). For rental vehicles that
P12   1are older than the previous year’s model-year, the rate shall not
2exceed eleven dollars ($11).

3(i) A rental company that disseminates in this state an
4advertisement containing a rental rate shall include in that
5advertisement a clearly readable statement of the charge for a
6damage waiver and a statement that a damage waiver is optional.

7(j) (1) A rental company shall not require the purchase of a
8damage waiver, optional insurance, or another optional good or
9service.

10(2) A rental company shall not engage in any unfair, deceptive,
11or coercive conduct to induce a renter to purchase the damage
12waiver, optional insurance, or another optional good or service,
13including conduct such as, but not limited to, refusing to honor
14the renter’s reservation, limiting the availability of vehicles,
15requiring a deposit, or debiting or blocking the renter’s credit card
16 account for a sum equivalent to a deposit if the renter declines to
17purchase the damage waiver, optional insurance, or another
18optional good or service.

19(k) (1) In the absence of express permission granted by the
20renter subsequent to damage to, or loss of, the vehicle, a rental
21company shall not seek to recover any portion of a claim arising
22out of damage to, or loss of, the rented vehicle by processing a
23credit card charge or causing a debit or block to be placed on the
24renter’s credit card account.

25(2) A rental company shall not engage in any unfair, deceptive,
26or coercive tactics in attempting to recover or in recovering on any
27claim arising out of damage to, or loss of, the rented vehicle.

28(l) (1) A customer facility charge may be collected by a rental
29company under the following circumstances:

30(A) Collection of the fee by the rental company is required by
31an airport operated by a city, a county, a city and county, a joint
32powers authority, a special district, or the San Diego County
33Regional Airport Authority formed pursuant to Division 17
34(commencing with Section 170000) of the Public Utilities Code.

35(B) The fee is calculated on a per contract basis or as provided
36in paragraph (2).

37(C) The fee is a user fee, not a tax imposed upon real property
38or an incident of property ownership under Article XIII D of the
39California Constitution.

P13   1(D) Except as otherwise provided in subparagraph (E), the fee
2shall be ten dollars ($10) per contract or the amount provided in
3paragraph (2).

4(E) The fee for a consolidated rental car facility shall be
5collected only from customers of on-airport rental car companies.
6If the fee imposed by the airport is for both a consolidated rental
7car facility and a common-use transportation system, the fee
8collected from customers of on-airport rental car companies shall
9be ten dollars ($10) or the amount provided in paragraph (2), but
10the fee imposed on customers of off-airport rental car companies
11who are transported on the common-use transportation system is
12proportionate to the costs of the common-use transportation system
13only. The fee is uniformly applied to each class of on-airport or
14off-airport customers, provided that the airport requires off-airport
15customers to use the common-use transportation system. For
16purposes of this subparagraph, “on-airport rental car company”
17means a rental company operating under an airport property lease
18or an airport concession or license agreement whose customers
19use or will use the consolidated rental car facility and the collection
20of the fee as to those customers is consistent with subparagraph
21(C).

22(F) Revenues collected from the fee do not exceed the reasonable
23costs of financing, designing, and constructing the facility and
24financing, designing, constructing, and operating any common-use
25transportation system, or acquiring vehicles for use in that system,
26and shall not be used for any other purpose.

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

28(H) This paragraph does not apply to fees which are governed
29by Section 50474.1 of the Government Code or Section 57.5 of
30the San Diego Unified Port District Act (Chapter 67 of the First
31Extraordinary Session of the Statutes of 1962).

32(I) For any airport seeking to require rental car companies to
33collect an alternative customer facility charge pursuant to paragraph
34(2), the following provisions apply:

35(i) Notwithstanding Section 10231.5 of the Government Code,
36the airport shall provide reports on an annual basis to the Senate
37and Assembly Committees on Judiciary detailing all of the
38following:

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

40(II) How the funds are being spent.

P14   1(III) The amount of and reason for any changes in the airport’s
2budget or financial needs for the facility or common-use
3transportation system.

4(ii) (I) The airport shall complete the audit required by
5subparagraph (B) of paragraph (6) of subdivision (a) prior to the
6initial collection of the customer facility charge. Notwithstanding
7Section 10231.5 of the Government Code, copies of the audit shall
8be provided to the Assembly and Senate Committees on Judiciary,
9the Assembly Committee on Transportation, and the Senate
10Committee on Transportation and Housing and shall be posted on
11the airport’s Internet Web site.

12(II) Prior to any increase pursuant to paragraph (2), the airport
13shall update the information provided in the initial collection audit
14pursuant to subclause (I). Notwithstanding Section 10231.5 of the
15Government Code, copies of the updated audit shall be provided
16to the Assembly and Senate Committees on Judiciary, the
17Assembly Committee on Transportation, and the Senate Committee
18on Transportation and Housing, and shall be posted on the airport’s
19Internet Web site.

20(III) An audit shall be completed every three years after initial
21collection only if the customer facility charge is collected for the
22purpose of operating a common-use transportation system or to
23acquire vehicles for use in the system pursuant to clause (ii) of
24subparagraph (A) of paragraph (6) of subdivision (a). A regularly
25conducted audit of airport finances that includes the customer
26facility charge information, that satisfies the requirements of
27subparagraph (B) of paragraph (6) of subdivision (a), and is
28produced in accordance with the generally accepted accounting
29principles of the Government Accounting Standards Board, shall
30satisfy the requirements of this subclause. This obligation shall
31continue until the fee authorization becomes inoperative pursuant
32to subparagraph (C) of paragraph (6) of subdivision (a).
33Notwithstanding Section 10231.5 of the Government Code, the
34information reported pursuant to this subclause shall be compiled
35into one document, shall be provided to the Assembly and Senate
36Committees on Judiciary, the Assembly Committee on
37Transportation, and the Senate Committee on Transportation and
38Housing and shall be posted on the airport’s Internet Web site
39accessible to the public. The information reported shall be
P15   1contained within one easily accessible page contained within the
2airport’s Internet Web site.

3(IV) This section shall not be construed to require an airport to
4audit a common-use transportation system not financed by a
5customer facility charge and used for the purposes permitted
6pursuant to clause (ii) of subparagraph (A) of paragraph (6) of
7subdivision (a).

8(V) The airport shall post on the airport’s Internet Web site
9copies of the completed audits required by this clause for a period
10of six years following the audit’s completion.

11(iii) Use of the bonds shall be limited to construction and design
12of the consolidated rental car facility, terminal modifications, and
13operating costs of the common-use transportation system, as
14specified in paragraph (6) of subdivision (a).

15(2) Any airport may require rental car companies to collect an
16alternative customer facility charge under the following conditions:

17(A) The airport first conducts a publicly noticed hearing pursuant
18to the Ralph M. Brown Act (Chapter 9 (commencing with Section
1954950) of Part 1 of Division 2 of Title 5 of the Government Code)
20to review the costs of financing the design and construction of a
21consolidated rental car facility and the design, construction, and
22operation of any common-use transportation system in which all
23of the following occur:

24(i) The airport establishes the amount of revenue necessary to
25finance the reasonable cost to design and construct a consolidated
26rental car facility and to design, construct, and operate any
27common-use transportation system, or acquire vehicles for use in
28that system, based on evidence presented during the hearing.

29(ii) The airport finds, based on evidence presented during the
30hearing, that the fee authorized in paragraph (1) will not generate
31sufficient revenue to finance the reasonable costs to design and
32construct a consolidated rental car facility and to design, construct,
33and operate any common-use transportation system, or acquire
34vehicles for use in that system.

35(iii) The airport finds that the reasonable cost of the project
36requires the additional amount of revenue that would be generated
37by the proposed daily rate, including any rate increase, authorized
38pursuant to this paragraph.

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

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

P16   1(II) Other potential alternatives for meeting its revenue needs
2other than the collection of the fee.

3(III) The extent to which rental car companies or other
4businesses or individuals using the facility or common-use
5transportation system will pay for the costs associated with these
6facilities and systems other than the fee from rental customers.

7(B) The airport may not require the fee authorized in this
8paragraph to be collected at any time that the fee authorized in
9paragraph (1) of this subdivision is being collected.

10(C) Pursuant to the procedure set forth in this subdivision, the
11fee may be collected at a rate charged on a per-day basis subject
12to the following conditions:

13(i) Commencing January 1, 2011, the amount of the fee may
14not exceed six dollars ($6) per day.

15(ii) Commencing January 1, 2014, the amount of the fee may
16not exceed seven dollars and fifty cents ($7.50) per day.

17(iii) Commencing January 1, 2017, and thereafter, the amount
18of the fee may not exceed nine dollars ($9) per day.

19(iv) At no time shall the fee authorized in this paragraph be
20collected from any customer for more than five days for each
21individual rental car contract.

22(v) An airport subject to this paragraph shall initiate the process
23for obtaining the authority to require or increase the alternative
24fee no later than January 1, 2018. Any airport that obtains the
25authority to require or increase an alternative fee shall be authorized
26to continue collecting that fee until the fee authorization becomes
27inoperative pursuant to subparagraph (C) of paragraph (6) of
28subdivision (a).

29(3) Notwithstanding any other provision of law, including, but
30not limited to, Part 1 (commencing with Section 6001) to Part 1.7
31(commencing with Section 7280), inclusive, of Division 2 of the
32Revenue and Taxation Code, the fees collected pursuant to this
33section, or another law whereby a local agency operating an airport
34requires a rental car company to collect a facility financing fee
35from its customers, are not subject to sales, use, or transaction
36taxes.

37(m) (1) When providing a quote, or imposing charges for a
38rental, the rental company may separately state the rental rate,
39additional mandatory charges, if any, and a mileage charge, if any,
40that a renter must pay to hire or lease the vehicle for the period of
P17   1time to which the rental rate applies. A rental company shall not
2charge in addition to the rental rate, additional mandatory charges,
3or a mileage charge, as those may be applicable, any other fee that
4is required to be paid by the renter as a condition of hiring or
5leasing the vehicle.

6(2) If additional mandatory charges are imposed, the rental
7company shall do each of the following:

8(A) At the time the quote is given, provide the person receiving
9the quote with a good faith estimate of the rental rate and all
10additional mandatory charges, as well as the total charges for the
11entire rental. The total charges, if provided on an Internet Web site
12page, shall be displayed in a typeface at least as large as any rental
13rate disclosed on that page and shall be provided on a page that
14the 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,
23additional mandatory charges, for the entire rental, exclusive of
24charges that cannot be determined at the time the rental
25commences. Charges imposed pursuant to this subparagraph shall
26be no more than the amount of the quote provided in a confirmed
27reservation, unless the person changes the terms of the rental
28contract subsequent to making the reservation.

29(C) Provide each person, other than those persons within the
30rental company, offering quotes to actual or prospective customers
31access to information about additional mandatory charges, as well
32as access to information about when those charges apply. Any
33person providing quotes to actual or prospective customers for the
34hire or lease of a vehicle from a rental company shall provide the
35quotes in the manner described in subparagraph (A).

36(3) In addition to the rental rate, taxes, additional mandatory
37charges, if any, and mileage charges, if any, a rental company may
38charge for an item or service provided in connection with a
39particular rental transaction if the renter could have avoided
40incurring the charge by choosing not to obtain or utilize the
P18   1optional item or service. Items and services for which the rental
2company may impose an additional charge include, but are not
3limited to, optional insurance and accessories requested by the
4renter, service charges incident to the renter’s optional return of
5the vehicle to a location other than the location where the vehicle
6was hired or leased, and charges for refueling the vehicle at the
7conclusion of the rental transaction in the event the renter did not
8return the vehicle with as much fuel as was in the fuel tank at the
9beginning of the rental. A rental company also may impose an
10additional charge based on reasonable age criteria established by
11the rental company.

12(4) A rental company shall not charge a fee for authorized
13drivers in addition to the rental charge for an individual renter.

14(5) If a rental company states a rental rate in print advertisement
15or in a telephonic, in-person, or computer-transmitted quotation,
16the rental company shall disclose clearly in that advertisement or
17quotation the terms of mileage conditions relating to the advertised
18or quoted rental rate, including, but not limited to, to the extent
19applicable, the amount of mileage and gas charges, the number of
20miles for which no charges will be imposed, and a description of
21geographic driving limitations within the United States and Canada.

22(6) All rate advertisements shall include the following
23disclaimer, which shall be prominently displayed: “Additional
24mandatory charges may be imposed, including, but not limited to,
25a customer facility charge, airport concession fee, tourism
26commission assessment, vehicle license recovery fee, or other
27government imposed taxes or fees. For more information, including
28an estimate of your total rental cost, visit our Internet Web site at
29[www.____.com].”

30(7) If a rental company delivers a vehicle to a renter at a location
31other than the location where the rental company normally carries
32on its business, the rental company shall not charge the renter an
33amount for the rental for the period before the delivery of the
34vehicle. If a rental company picks up a rented vehicle from a renter
35at a location other than the location where the rental company
36normally carries on its business, the rental company shall not
37charge the renter an amount for the rental for the period after the
38renter notifies the rental company to pick up the vehicle.

39(8) Except as otherwise permitted pursuant to the customer
40facility charge, a rental company shall not separately charge, in
P19   1addition to the rental rate, a fee for transporting the renter to a
2location where the rented vehicle will be delivered to the renter.

3(n) A rental company shall not use, access, or obtain any
4information relating to the renter’s use of the rental vehicle that
5was obtained using electronic surveillance technology, except in
6the following circumstances:

7(1) (A) When the equipment is used by the rental company
8only for the purpose of locating a stolen, abandoned, or missing
9rental vehicle after one of the following:

10(i) The renter or law enforcement has informed the rental
11company that the vehicle is missing or has been stolen or
12abandoned.

13(ii) The rental vehicle has not been returned followingbegin delete one weekend delete
14begin insert three calendar daysend insert after the contracted return date, or bybegin delete one
15weekend delete
begin insert three calendar daysend insert following the end of an extension of
16that return date.

17(iii) The rental company discovers the rental vehicle has been
18stolen or abandoned, and, if stolen, it shall report the vehicle stolen
19to law enforcement by filing a stolen vehicle report, unless law
20enforcement has already informed the rental company that the
21vehicle is missing or has been stolen or abandoned.

22(B) If electronic surveillance technology is activated pursuant
23to subparagraph (A), a rental company shall maintain a record, in
24either electronic or written form, of information relevant to the
25activation of that technology. That information shall include the
26rental agreement, including the return date, and the date and time
27the electronic surveillance technology was activated. The record
28shall also include, if relevant, a record of written or other
29communication with the renter, including communications
30regarding extensions of the rental, police reports, or other written
31communication with law enforcement officials. The record shall
32be maintained for a period of at least 12 months from the time the
33record is created and shall be made available upon the renter’s
34request. The rental company shall maintain and furnish explanatory
35codes necessary to read the record. A rental company shall not be
36required to maintain a record if electronic surveillance technology
37is activated to recover a rental vehicle that is stolen or missing at
38a time other than during a rental period.

39(2) In response to a specific request from law enforcement
40pursuant to a subpoena or search warrant.

P20   1(3) This subdivision does not prohibit a rental company from
2equipping rental vehicles with GPS-based technology that provides
3navigation assistance to the occupants of the rental vehicle, if the
4rental company does not use, access, or obtain information relating
5to the renter’s use of the rental vehicle that was obtained using
6that technology, except for the purposes of discovering or repairing
7a defect in the technology and the information may then be used
8only for that purpose.

9(4) This subdivision does not prohibit a rental company from
10equipping rental vehicles with electronic surveillance technology
11that allows for the remote locking or unlocking of the vehicle at
12the request of the renter, if the rental company does not use, access,
13or obtain information relating to the renter’s use of the rental
14vehicle that was obtained using that technology, except as
15necessary to lock or unlock the vehicle.

16(5) This subdivision does not prohibit a rental company from
17equipping rental vehicles with electronic surveillance technology
18that allows the company to provide roadside assistance, such as
19towing, flat tire, or fuel services, at the request of the renter, if the
20rental company does not use, access, or obtain information relating
21to the renter’s use of the rental vehicle that was obtained using
22that technology except as necessary to provide the requested
23roadside assistance.

24(6) This subdivision does not prohibit a rental company from
25obtaining, accessing, or using information from electronic
26surveillance technology for the sole purpose of determining the
27date and time the vehicle is returned to the rental company, and
28the total mileage driven and the vehicle fuel level of the returned
29vehicle. This paragraph, however, shall apply only after the renter
30has returned the vehicle to the rental company, and the information
31shall only be used for the purpose described in this paragraph.

32(o) A rental company shall not use electronic surveillance
33technology to track a renter in order to impose fines or surcharges
34relating to the renter’s use of the rental vehicle.

35(p) A renter may bring an action against a rental company for
36the recovery of damages and appropriate equitable relief for a
37violation of this section. The prevailing party shall be entitled to
38recover reasonable attorney’s fees and costs.

39(q) A rental company that brings an action against a renter for
40loss due to theft of the vehicle shall bring the action in the county
P21   1in which the renter resides or, if the renter is not a resident of this
2state, in the jurisdiction in which the renter resides.

3(r) A waiver of any of the provisions of this section shall be
4void and unenforceable as contrary to public policy.

5(s) (1) A rental company’s disclosure requirements shall be
6satisfied for renters who are enrolled in the rental company’s
7membership program if all of the following conditions are met:

8(A) Prior to the enrollee’s first rental as a participant in the
9program, the renter receives, in writing, the following:

10(i) All of the disclosures required by paragraph (1) of subdivision
11(g), including the terms and conditions of the rental agreement
12then in effect.

13(ii) An Internet Web site address, as well as a contact number
14or address, where the enrollee can learn of changes to the rental
15agreement or to the laws of this state governing rental agreements
16since the effective date of the rental company’s most recent
17restatement of the rental agreement and distribution of that
18restatement to its members.

19(B) At the commencement of each rental period, the renter is
20provided, on the rental record or the folder in which it is inserted,
21with a printed notice stating that he or she had either previously
22selected or declined an optional damage waiver and that the renter
23has the right to change preferences.

24(C) At the commencement of each rental period, the rental
25company provides, on the rearview mirror, a hanger on which a
26statement is printed, in a box, in at least 12-point boldface type,
27notifying the renter that the collision damage waiver offered by
28the rental company may be duplicative of coverage that the
29customer maintains under his or her own policy of motor vehicle
30insurance. If it is not feasible to hang the statement from the
31rearview mirror, it shall be hung from the steering wheel.

32The hanger shall provide the renter a box to initial if he or she
33(not his or her employer) has previously accepted or declined the
34collision damage waiver and that he or she now wishes to change
35his or her decision to accept or decline the collision damage waiver,
36as follows:


38“If I previously accepted the collision damage waiver, I now
39decline it.


P22   2If I previously declined the collision damage waiver, I now
3accept it.”


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

12(2) (A) This subdivision is not effective unless the employee
13designated pursuant to subparagraph (E) of paragraph (9) of
14subdivision (a) is actually present at the required location.

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

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

25(u) (1) When a rental company enters into a rental agreement
26in the state for the rental of a vehicle to any renter who is not a
27resident of this country and, as part of, or associated with, the rental
28agreement, the renter purchases liability insurance, as defined in
29subdivision (b) of Section 1758.85 of the Insurance Code, from
30the rental company in its capacity as a rental car agent for an
31authorized insurer, the rental company shall be authorized to accept,
32and, if served as set forth in this subdivision, shall accept, service
33of a summons and complaint and any other required documents
34against the foreign renter for any accident or collision resulting
35from the operation of the rental vehicle within the state during the
36rental period. If the rental company has a registered agent for
37service of process on file with the Secretary of State, process shall
38be served on the rental company’s registered agent, either by
39first-class mail, return receipt requested, or by personal service.

P23   1(2) Within 30 days of acceptance of service of process, the rental
2company shall provide a copy of the summons and complaint and
3any other required documents served in accordance with this
4subdivision to the foreign renter by first-class mail, return receipt
5requested.

6(3) Any plaintiff, or his or her representative, who elects to serve
7the foreign renter by delivering a copy of the summons and
8complaint and any other required documents to the rental company
9pursuant to paragraph (1) shall agree to limit his or her recovery
10against the foreign renter and the rental company to the limits of
11the protection extended by the liability insurance.

12(4) Notwithstanding the requirements of Sections 17450 to
1317456, inclusive, of the Vehicle Code, service of process in
14compliance with paragraph (1) shall be deemed valid and effective
15service.

16(5) Notwithstanding any other provision of law, the requirement
17that the rental company accept service of process pursuant to
18paragraph (1) shall not create any duty, obligation, or agency
19relationship other than that provided in paragraph (1).



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