Amended in Assembly April 4, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2051


Introduced by Assembly Member O'Donnell

February 17, 2016


An act tobegin delete amend Section 1936 ofend deletebegin insert add Chapter 1.5 (commencing with Section 1939.01) to Title 5 of Part 4 of Division 3 of, and to repeal Sections 1936, 1936.05, 1936.1, and 1936.5 of,end insert the Civil Code,begin insert and to amend Section 50474.1 of, and to add Sections 50474.21, 50474.22, 50474.3, and 50474.end insertbegin insert4 to, the Government Code,end insert relating to rentalbegin insert passengerend insert vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 2051, as amended, O'Donnell. Rentalbegin delete vehicles: electronic surveillance technology.end deletebegin insert passenger vehicles.end insert

begin delete

Existing

end delete

begin insert(1)end insertbegin insertend insertbegin insertExistingend insert lawbegin insert generallyend insert governs thebegin delete contractsend deletebegin insert transactionsend insert between a rental carbegin delete companyend deletebegin insert company, also referred to as a rental company,end insert and itsbegin delete customer and,end deletebegin insert customers, including,end insert among otherbegin delete things,end deletebegin insert provisions, required disclosures by a rental company, mandatory contract provisions for a vehicle rental agreement, restrictions on a rental company’s use of electronic surveillance technology, and authorization for a rental company to collect specific types of fees and charges from its customers. Existing law defines terms for its purposes.end insert

begin insert

This bill, among other things, would recast and reorganize these provisions, would modify definitions and terms for uniformity, and would make conforming changes.

end insert

begin insert(2)end insertbegin insertend insertbegin insertExisting law, as part of the restrictions on the use of electronic surveillance technology referenced above,end insert 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 obtainbegin insert thatend insert informationbegin delete relating to the renter’s use of a rental vehicle that was obtained using electronic surveillance technologyend delete if the rental vehicle has not been returned following 3begin insert calendarend insert days after the contracted return date, or by 3 calendar days following the end of an extension of that return date.begin insert The bill would further authorize a rental company, in connection with a qualified business rental under a business program, to use technology, including electronic surveillance technology, to determine specific information for the sole purposes of commencing and concluding the rental.end insert

begin insert

(3) Existing law, as part of the required disclosures referenced above, requires a rental company’s rental rate advertisements to include a clearly readable statement of the charge for a damage waiver, a statement that a damage waiver is optional, and a specific disclaimer regarding additional mandatory charges. Existing law also provides that a rental company’s disclosure requirements are satisfied for renters enrolled in the rental company’s membership program if certain conditions are met, including, among others, a requirement that the rental company provide, prior to the commencement of each rental period, a rearview mirror hanger containing a disclosure and form regarding the collision damage waiver offered by the rental company, as specified.

end insert
begin insert

This bill would discontinue the requirement that a rental company provide that hanger. The bill would require a rental rate advertisement to instead include a statement that additional charges may apply if an optional good or service, such as a damage waiver, is purchased, and to comply with a revised disclaimer requirement regarding additional mandatory charges. The bill would require a person or entity, that is not a rental company, that advertises a vehicle rental rate that includes additional mandatory charges, to clearly disclose the charges. The bill would provide that a rental company that provides a person or entity with information on the charges and rental rate is not responsible for the person’s or entity’s failure to comply with this requirement.

end insert
begin insert

(4) Existing law authorizes airports to require rental companies to collect a customer facility charge for specified purposes and requires airports to provide certain audits and reports regarding those fees to specified committees of the Legislature.

end insert
begin insert

This bill also would recast and reorganize these provisions, including establishing authority for a certain airport to charge those same fees for additional specified purposes.

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:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1936 of the end insertbegin insertCivil Codeend insertbegin insert is repealed.end insert

begin delete
2

1936.  

(a) For the purpose of this section, the following
3definitions shall apply:

4(1) “Rental company” means a person or entity in the business
5of renting passenger vehicles to the public.

6(2) “Renter” means any person in a manner obligated under a
7contract for the lease or hire of a passenger vehicle from a rental
8company for a period of less than 30 days.

9(3) “Additional mandatory charges” means any separately stated
10charges that the rental car company requires the renter to pay to
11hire or lease the vehicle for the period of time to which the rental
12rate applies, which are imposed by a governmental entity and
13specifically relate to the operation of a rental car business,
14including, but not limited to, a customer facility charge, airport
15concession fee, tourism commission assessment, vehicle license
16recovery fee, or other government imposed taxes or fees.

17(4) “Airport concession fee” means a charge collected by a
18rental company from a renter that is the renter’s proportionate
19share of the amount paid by the rental company to the owner or
20operator of an airport for the right or privilege of conducting a
21vehicle rental business on the airport’s premises.

22(5) “Authorized driver” means all of the following:

23(A) The renter.

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

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

P4    1(D) A person expressly listed by the rental company on that
2renter’s contract as an authorized driver.

3(6) (A) “Customer facility charge” means any fee, including
4an alternative fee, required by an airport to be collected by a rental
5company from a renter for any of the following purposes:

6(i) To finance, design, and construct consolidated airport car
7rental facilities.

8(ii) To finance, design, construct, and operate common-use
9transportation systems that move passengers between airport
10 terminals and those consolidated car rental facilities, and acquire
11vehicles for use in that system.

12(iii) To finance, design, and construct terminal modifications
13solely to accommodate and provide customer access to
14common-use transportation systems.

15(B) The aggregate amount to be collected shall not exceed the
16reasonable costs, as determined by an audit, by an independent
17auditor, paid for by the airport, to finance, design, and construct
18those facilities. The auditor shall independently examine and
19substantiate the necessity for and the amount of the customer
20facility charge, including whether the airport’s actual or projected
21costs are supported and justified, any steps the airport may take to
22limit costs, potential alternatives for meeting the airport’s revenue
23needs other than the collection of the fee, and whether and to what
24extent car rental companies or other businesses or individuals using
25the facility or common-use transportation system may pay for the
26costs associated with these facilities and systems other than the
27fee from rental customers, or whether the airport did not comply
28with any provision of this subparagraph. 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. In the case of a customer facility
33charge for a common-use transportation system, the audit also
34shall consider the reasonable costs of providing the transit system
35or busing network pursuant to clause (ii) of subparagraph (A). Any
36audit required by this subparagraph may be included as a part of
37an audit of an airport’s finances. Notwithstanding clause (iii) of
38subparagraph (A), the fees designated as a customer facility charge
39shall not be used to pay for terminal expansion, gate expansion,
P5    1runway expansion, changes in hours of operation, or changes in
2the number of flights arriving or departing from the airport.

3(C) Except as provided in subparagraph (D), the authorization
4given pursuant to this section for an airport to impose a customer
5facility charge shall become inoperative when the bonds used for
6financing are paid.

7(D) If a bond or other form of indebtedness is not used for
8financing, or the bond or other form of indebtedness used for
9financing has been paid, the Oakland International Airport may
10require the collection of a customer facility charge for a period of
11up to 10 years from the imposition of the charge for the purposes
12allowed by, and subject to the conditions imposed by, this section.

13(7) “Damage waiver” means a rental company’s agreement not
14to hold a renter liable for all or any portion of any damage or loss
15 related to the rented vehicle, any loss of use of the rented vehicle,
16or any storage, impound, towing, or administrative charges.

17(8) “Electronic surveillance technology” means a technological
18method or system used to observe, monitor, or collect information,
19including telematics, Global Positioning System (GPS), wireless
20technology, or location-based technologies. “Electronic
21surveillance technology” does not include event data recorders
22(EDR), sensing and diagnostic modules (SDM), or other systems
23that are used either:

24(A) For the purpose of identifying, diagnosing, or monitoring
25functions related to the potential need to repair, service, or perform
26maintenance on the rental vehicle.

27(B) As part of the vehicle’s airbag sensing and diagnostic system
28in order to capture safety systems-related data for retrieval after a
29crash has occurred or in the event that the collision sensors are
30activated to prepare the decisionmaking computer to make the
31determination to deploy or not to deploy the airbag.

32(9) “Estimated time for replacement” means the number of hours
33of labor, or fraction thereof, needed to replace damaged vehicle
34parts as set forth in collision damage estimating guides generally
35used in the vehicle repair business and commonly known as “crash
36books.”

37(10) “Estimated time for repair” means a good faith estimate of
38the reasonable number of hours of labor, or fraction thereof, needed
39to repair damaged vehicle parts.

P6    1(11) “Membership program” means a service offered by a rental
2company that permits customers to bypass the rental counter and
3go directly to the car previously reserved. A membership program
4shall meet all of the following requirements:

5(A) The renter initiates enrollment by completing an application
6on which the renter can specify a preference for type of vehicle
7and acceptance or declination of optional services.

8(B) The rental company fully discloses, prior to the enrollee’s
9first rental as a participant in the program, all terms and conditions
10of the rental agreement as well as all required disclosures.

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

12(D) The rental company fully explains to the renter that
13designated preferences, as well as acceptance or declination of
14optional services, may be changed by the renter at any time for
15the next and future rentals.

16(E) An employee designated to receive the form specified in
17subparagraph (C) of paragraph (1) of subdivision (s) is present at
18the lot where the renter takes possession of the car, to receive any
19change in the rental agreement from the renter.

20(12) “Passenger vehicle” means a passenger vehicle as defined
21in Section 465 of the Vehicle Code.

22(13) “Quote” means an estimated cost of rental provided by a
23rental company or a third party to a potential customer by
24telephone, in-person, computer-transmission, or other means, that
25is based on information provided by the potential customer and
26used to generate an estimated cost of rental, including, but not
27limited to, potential dates of rental, locations, or classes of car.

28(14) “Tourism commission assessment” means the charge
29collected by a rental company from a renter that has been
30established by the California Travel and Tourism Commission
31pursuant to Section 13995.65 of the Government Code.

32(15) “Vehicle license fee” means the tax imposed pursuant to
33the Vehicle License Fee Law (Part 5 (commencing with Section
3410701) of Division 2 of the Revenue and Taxation Code).

35(16) “Vehicle registration fee” means any fee imposed pursuant
36to any provision of Chapter 6 (commencing with Section 9101)
37of Division 3 of the Vehicle Code.

38(17) “Vehicle license recovery fee” means a charge that seeks
39to recover the amount of any vehicle license fee and vehicle
P7    1registration fee paid by a rental company for the particular class
2of vehicle being rented.

3(b) Except as limited by subdivision (c), a rental company and
4a renter may agree that the renter will be responsible for no more
5than all of the following:

6(1) Physical or mechanical damage to the rented vehicle up to
7its fair market value, as determined in the customary market for
8the sale of that vehicle, resulting from collision regardless of the
9cause of the damage.

10(2) Loss due to theft of the rented vehicle up to its fair market
11value, as determined in the customary market for the sale of that
12vehicle, provided that the rental company establishes by clear and
13convincing evidence that the renter or the authorized driver failed
14to exercise ordinary care while in possession of the vehicle. In
15addition, the renter shall be presumed to have no liability for any
16loss due to theft if (A) an authorized driver has possession of the
17ignition key furnished by the rental company or an authorized
18driver establishes that the ignition key furnished by the rental
19company was not in the vehicle at the time of the theft, and (B) an
20authorized driver files an official report of the theft with the police
21or other law enforcement agency within 24 hours of learning of
22the theft and reasonably cooperates with the rental company and
23the police or other law enforcement agency in providing
24information concerning the theft. The presumption set forth in this
25paragraph is a presumption affecting the burden of proof which
26the rental company may rebut by establishing that an authorized
27driver committed, or aided and abetted the commission of, the
28theft.

29(3) Physical damage to the rented vehicle up to its fair market
30value, as determined in the customary market for the sale of that
31vehicle, resulting from vandalism occurring after, or in connection
32with, the theft of the rented vehicle. However, the renter shall have
33no liability for any damage due to vandalism if the renter would
34have no liability for theft pursuant to paragraph (2).

35(4) Physical damage to the rented vehicle up to a total of five
36hundred dollars ($500) resulting from vandalism unrelated to the
37theft of the rented vehicle.

38(5) Actual charges for towing, storage, and impound fees paid
39by the rental company if the renter is liable for damage or loss.

P8    1(6) An administrative charge, which shall include the cost of
2appraisal and all other costs and expenses incident to the damage,
3loss, repair, or replacement of the rented vehicle.

4(c) The total amount of the renter’s liability to the rental
5company resulting from damage to the rented vehicle shall not
6exceed the sum of the following:

7(1) The estimated cost of parts which the rental company would
8have to pay to replace damaged vehicle parts. All discounts and
9price reductions or adjustments that are or will be received by the
10rental company shall be subtracted from the estimate to the extent
11not already incorporated in the estimate, or otherwise promptly
12credited or refunded to the renter.

13(2) The estimated cost of labor to replace damaged vehicle parts,
14which shall not exceed the product of (A) the rate for labor usually
15paid by the rental company to replace vehicle parts of the type that
16were damaged and (B) the estimated time for replacement. All
17discounts and price reductions or adjustments that are or will be
18received by the rental company shall be subtracted from the
19estimate to the extent not already incorporated in the estimate, or
20otherwise promptly credited or refunded to the renter.

21(3) (A) The estimated cost of labor to repair damaged vehicle
22parts, which shall not exceed the lesser of the following:

23(i) The product of the rate for labor usually paid by the rental
24company to repair vehicle parts of the type that were damaged and
25the estimated time for repair.

26(ii) The sum of the estimated labor and parts costs determined
27under paragraphs (1) and (2) to replace the same vehicle parts.

28(B) All discounts and price reductions or adjustments that are
29or will be received by the rental company shall be subtracted from
30the estimate to the extent not already incorporated in the estimate,
31or otherwise promptly credited or refunded to the renter.

32(4) For the purpose of converting the estimated time for repair
33into the same units of time in which the rental rate is expressed, a
34day shall be deemed to consist of eight hours.

35(5) Actual charges for towing, storage, and impound fees paid
36by the rental company.

37(6) The administrative charge described in paragraph (6) of
38subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
39estimated cost for parts and labor is more than one hundred dollars
40($100) up to and including five hundred dollars ($500), (B) one
P9    1hundred dollars ($100) if the total estimated cost for parts and
2labor exceeds five hundred dollars ($500) up to and including one
3thousand five hundred dollars ($1,500), and (C) one hundred fifty
4dollars ($150) if the total estimated cost for parts and labor exceeds
5one thousand five hundred dollars ($1,500). An administrative
6charge shall not be imposed if the total estimated cost of parts and
7labor is one hundred dollars ($100) or less.

8(d) (1) The total amount of an authorized driver’s liability to
9the rental company, if any, for damage occurring during the
10authorized driver’s operation of the rented vehicle shall not exceed
11the amount of the renter’s liability under subdivision (c).

12(2) A rental company shall not recover from the renter or other
13authorized driver an amount exceeding the renter’s liability under
14subdivision (c).

15(3) A claim against a renter resulting from damage or loss,
16excluding loss of use, to a rental vehicle shall be reasonably and
17rationally related to the actual loss incurred. A rental company
18shall mitigate damages where possible and shall not assert or collect
19a claim for physical damage which exceeds the actual costs of the
20repairs performed or the estimated cost of repairs, if the rental
21company chooses not to repair the vehicle, including all discounts
22and price reductions. However, if the vehicle is a total loss vehicle,
23the claim shall not exceed the total loss vehicle value established
24in accordance with procedures that are customarily used by
25insurance companies when paying claims on total loss vehicles,
26less the proceeds from salvaging the vehicle, if those proceeds are
27retained by the rental company.

28(4) If insurance coverage exists under the renter’s applicable
29personal or business insurance policy and the coverage is confirmed
30during regular business hours, the renter may require that the rental
31company submit any claims to the renter’s applicable personal or
32business insurance carrier. The rental company shall not make any
33written or oral representations that it will not present claims or
34negotiate with the renter’s insurance carrier. For purposes of this
35paragraph, confirmation of coverage includes telephone
36confirmation from insurance company representatives during
37regular business hours. Upon request of the renter and after
38confirmation of coverage, the amount of claim shall be resolved
39between the insurance carrier and the rental company. The renter
40shall remain responsible for payment to the rental car company
P10   1for any loss sustained that the renter’s applicable personal or
2business insurance policy does not cover.

3(5) A rental company shall not recover from the renter or other
4authorized driver for an item described in subdivision (b) to the
5extent the rental company obtains recovery from another person.

6(6) This section applies only to the maximum liability of a renter
7or other authorized driver to the rental company resulting from
8damage to the rented vehicle and not to the liability of another
9person.

10(e) (1) Except as provided in subdivision (f), a damage waiver
11shall provide or, if not expressly stated in writing, shall be deemed
12to provide that the renter has no liability for damage, loss, loss of
13use, or a cost or expense incident thereto.

14(2) Except as provided in subdivision (f), every limitation,
15exception, or exclusion to a damage waiver is void and
16unenforceable.

17(f) A rental company may provide in the rental contract that a
18damage waiver does not apply under any of the following
19circumstances:

20(1) Damage or loss results from an authorized driver’s (A)
21intentional, willful, wanton, or reckless conduct, (B) operation of
22the vehicle under the influence of drugs or alcohol in violation of
23Section 23152 of the Vehicle Code, (C) towing or pushing
24anything, or (D) operation of the vehicle on an unpaved road if
25the damage or loss is a direct result of the road or driving
26conditions.

27(2) Damage or loss occurs while the vehicle is (A) used for
28commercial hire, (B) used in connection with conduct that could
29be properly charged as a felony, (C) involved in a speed test or
30contest or in driver training activity, (D) operated by a person other
31than an authorized driver, or (E) operated outside the United States.

32(3) An authorized driver who has (A) provided fraudulent
33information to the rental company, or (B) provided false
34information and the rental company would not have rented the
35vehicle if it had instead received true information.

36(g) (1) A rental company that offers or provides a damage
37waiver for any consideration in addition to the rental rate shall
38clearly and conspicuously disclose the following information in
39the rental contract or holder in which the contract is placed and,
40also, in signs posted at the place, such as the counter, where the
P11   1renter signs the rental contract, and, for renters who are enrolled
2in the rental company’s membership program, in a sign that shall
3be posted in a location clearly visible to those renters as they enter
4the location where their reserved rental cars are parked or near the
5exit of the bus or other conveyance that transports the enrollee to
6a reserved car: (A) the nature of the renter’s liability, such as
7liability for all collision damage regardless of cause, (B) the extent
8of the renter’s liability, such as liability for damage or loss up to
9a specified amount, (C) the renter’s personal insurance policy or
10the credit card used to pay for the car rental transaction may
11provide coverage for all or a portion of the renter’s potential
12liability, (D) the renter should consult with his or her insurer to
13determine the scope of insurance coverage, including the amount
14of the deductible, if any, for which the renter is obligated, (E) the
15renter may purchase an optional damage waiver to cover all
16liability, subject to whatever exceptions the rental company
17expressly lists that are permitted under subdivision (f), and (F) the
18range of charges for the damage waiver.

19(2) In addition to the requirements of paragraph (1), a rental
20company that offers or provides a damage waiver shall orally
21disclose to all renters, except those who are participants in the
22rental company’s membership program, that the damage waiver
23may be duplicative of coverage that the customer maintains under
24his or her own policy of motor vehicle insurance. The renter’s
25receipt of the oral disclosure shall be demonstrated through the
26renter’s acknowledging receipt of the oral disclosure near that part
27of the contract where the renter indicates, by the renter’s own
28initials, his or her acceptance or declination of the damage waiver.
29Adjacent to that same part, the contract also shall state that the
30damage waiver is optional. Further, the contract for these renters
31shall include a clear and conspicuous written disclosure that the
32damage waiver may be duplicative of coverage that the customer
33maintains under his or her own policy of motor vehicle insurance.

34(3) The following is an example, for purposes of illustration
35and not limitation, of a notice fulfilling the requirements of
36paragraph (1) for a rental company that imposes liability on the
37renter for collision damage to the full value of the vehicle:


P12   1“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
2AND OPTIONAL DAMAGE WAIVER
3

4You are responsible for all collision damage to the rented vehicle
5even if someone else caused it or the cause is unknown. You are
6responsible for the cost of repair up to the value of the vehicle,
7and towing, storage, and impound fees.

8Your own insurance, or the issuer of the credit card you use to
9pay for the car rental transaction, may cover all or part of your
10financial responsibility for the rented vehicle. You should check
11with your insurance company, or credit card issuer, to find out
12about your coverage and the amount of the deductible, if any, for
13which you may be liable.

14Further, if you use a credit card that provides coverage for your
15potential liability, you should check with the issuer to determine
16if you must first exhaust the coverage limits of your own insurance
17before the credit card coverage applies.

18The rental company will not hold you responsible if you buy a
19damage waiver. But a damage waiver will not protect you if (list
20exceptions).”
21


22(A) When the above notice is printed in the rental contract or
23holder in which the contract is placed, the following shall be printed
24immediately following the notice:


26“The cost of an optional damage waiver is $____ for every (day
27or week).”
28


29(B) When the above notice appears on a sign, the following
30shall appear immediately adjacent to the notice:


32“The cost of an optional damage waiver is $____ to $____ for
33every (day or week), depending upon the vehicle rented.”
34


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

39(1) For rental vehicles that the rental company designates as an
40“economy car,” “compact car,” or another term having similar
P13   1meaning to the two smallest body-size categories of vehicles
2established by the Association of Car Rental Industry Systems
3Standards for North America, as of January 1, 2014, when offered
4for rental, the rate shall not exceed eleven dollars ($11).

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

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

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

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

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

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

P14   1(l) (1) A customer facility charge may be collected by a rental
2company under the following circumstances:

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

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

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

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

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

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

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

P15   1(H) This paragraph does not apply to fees which are governed
2by Section 50474.1 of the Government Code or Section 57.5 of
3the San Diego Unified Port District Act (Chapter 67 of the First
4Extraordinary Session of the Statutes of 1962).

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

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

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

13(II) How the funds are being spent.

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

17(ii) (I) The airport shall complete the audit required by
18subparagraph (B) of paragraph (6) of subdivision (a) prior to the
19initial 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 and Housing, and shall be posted on the airport’s
32Internet 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 in the system pursuant to clause (ii) of
37subparagraph (A) of paragraph (6) of subdivision (a). A regularly
38conducted audit of airport finances that includes the customer
39facility charge information, that satisfies the requirements of
40subparagraph (B) of paragraph (6) of subdivision (a), and is
P16   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 (6) 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
12accessible 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 (6) 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 (6) 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.

P17   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 (6) of
40subdivision (a).

P18   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.

9(m) (1) When providing a quote, or imposing charges for a
10rental, the rental company may separately state the rental rate,
11additional mandatory charges, if any, and a mileage charge, if any,
12that a renter must pay to hire or lease the vehicle for the period of
13time to which the rental rate applies. A rental company shall not
14charge in addition to the rental rate, additional mandatory charges,
15or a mileage charge, as those may be applicable, any other fee that
16is required to be paid by the renter as a condition of hiring or
17leasing the vehicle.

18(2) If additional mandatory charges are imposed, the rental
19company shall do each of the following:

20(A) At the time the quote is given, provide the person receiving
21the quote with a good faith estimate of the rental rate and all
22additional mandatory charges, as well as the total charges for the
23entire rental. The total charges, if provided on an Internet Web site
24page, shall be displayed in a typeface at least as large as any rental
25rate disclosed on that page and shall be provided on a page that
26the person receiving the quote may reach by following links
27through no more than two Internet Web site pages, including the
28page on which the rental rate is first provided. The good faith
29estimate may exclude mileage charges and charges for optional
30items that cannot be determined prior to completing the reservation
31based upon the information provided by the person.

32(B) At the time and place the rental commences, clearly and
33conspicuously disclose in the rental contract, or that portion of the
34contract that is provided to the renter, the total of the rental rate,
35additional mandatory charges, for the entire rental, exclusive of
36charges that cannot be determined at the time the rental
37commences. Charges imposed pursuant to this subparagraph shall
38be no more than the amount of the quote provided in a confirmed
39reservation, unless the person changes the terms of the rental
40contract subsequent to making the reservation.

P19   1(C) Provide each person, other than those persons within the
2rental company, offering quotes to actual or prospective customers
3access to information about additional mandatory charges, as well
4as access to information about when those charges apply. Any
5person providing quotes to actual or prospective customers for the
6hire or lease of a vehicle from a rental company shall provide the
7quotes in the manner described in subparagraph (A).

8(3) In addition to the rental rate, taxes, additional mandatory
9charges, if any, and mileage charges, if any, a rental company may
10charge for an item or service provided in connection with a
11particular rental transaction if the renter could have avoided
12incurring the charge by choosing not to obtain or utilize the
13optional item or service. Items and services for which the rental
14company may impose an additional charge include, but are not
15limited to, optional insurance and accessories requested by the
16renter, service charges incident to the renter’s optional return of
17the vehicle to a location other than the location where the vehicle
18was hired or leased, and charges for refueling the vehicle at the
19conclusion of the rental transaction in the event the renter did not
20return the vehicle with as much fuel as was in the fuel tank at the
21beginning of the rental. A rental company also may impose an
22additional charge based on reasonable age criteria established by
23the rental company.

24(4) A rental company shall not charge a fee for authorized
25drivers in addition to the rental charge for an individual renter.

26(5) If a rental company states a rental rate in print advertisement
27or in a telephonic, in-person, or computer-transmitted quotation,
28the rental company shall disclose clearly in that advertisement or
29quotation the terms of mileage conditions relating to the advertised
30or quoted rental rate, including, but not limited to, to the extent
31applicable, the amount of mileage and gas charges, the number of
32miles for which no charges will be imposed, and a description of
33geographic driving limitations within the United States and Canada.

34(6) All rate advertisements shall include the following
35disclaimer, which shall be prominently displayed: “Additional
36mandatory charges may be imposed, including, but not limited to,
37a customer facility charge, airport concession fee, tourism
38commission assessment, vehicle license recovery fee, or other
39government imposed taxes or fees. For more information, including
P20   1an estimate of your total rental cost, visit our Internet Web site at
2[www.____.com].”

3(7) If a rental company delivers a vehicle to a renter at a location
4other than the location where the rental company normally carries
5on its business, the rental company shall not charge the renter an
6amount for the rental for the period before the delivery of the
7vehicle. If a rental company picks up a rented vehicle from a renter
8at a location other than the location where the rental company
9normally carries on its business, the rental company shall not
10charge the renter an amount for the rental for the period after the
11renter notifies the rental company to pick up the vehicle.

12(8) Except as otherwise permitted pursuant to the customer
13facility charge, a rental company shall not separately charge, in
14addition to the rental rate, a fee for transporting the renter to a
15location where the rented vehicle will be delivered to the renter.

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

20(1) (A) When the equipment is used by the rental company
21only for the purpose of locating a stolen, abandoned, or missing
22rental vehicle after one of the following:

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

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

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

34(B) If electronic surveillance technology is activated pursuant
35to subparagraph (A), a rental company shall maintain a record, in
36either electronic or written form, of information relevant to the
37activation of that technology. That information shall include the
38rental agreement, including the return date, and the date and time
39the electronic surveillance technology was activated. The record
40shall also include, if relevant, a record of written or other
P21   1communication with the renter, including communications
2regarding extensions of the rental, police reports, or other written
3communication with law enforcement officials. The record shall
4be maintained for a period of at least 12 months from the time the
5record is created and shall be made available upon the renter’s
6request. The rental company shall maintain and furnish explanatory
7codes necessary to read the record. A rental company shall not be
8required to maintain a record if electronic surveillance technology
9is activated to recover a rental vehicle that is stolen or missing at
10a time other than during a rental period.

11(2) In response to a specific request from law enforcement
12pursuant to a subpoena or search warrant.

13(3) This subdivision does not prohibit a rental company from
14equipping rental vehicles with GPS-based technology that provides
15navigation assistance to the occupants of the rental vehicle, if the
16rental company does not use, access, or obtain information relating
17to the renter’s use of the rental vehicle that was obtained using
18that technology, except for the purposes of discovering or repairing
19a defect in the technology and the information may then be used
20only for that purpose.

21(4) This subdivision does not prohibit a rental company from
22equipping rental vehicles with electronic surveillance technology
23that allows for the remote locking or unlocking of the vehicle at
24the request of the renter, if the rental company does not use, access,
25or obtain information relating to the renter’s use of the rental
26vehicle that was obtained using that technology, except as
27necessary to lock or unlock the vehicle.

28(5) This subdivision does not prohibit a rental company from
29equipping rental vehicles with electronic surveillance technology
30that allows the company to provide roadside assistance, such as
31towing, flat tire, or fuel services, at the request of the renter, if the
32rental company does not use, access, or obtain information relating
33to the renter’s use of the rental vehicle that was obtained using
34that technology except as necessary to provide the requested
35roadside assistance.

36(6) This subdivision does not prohibit a rental company from
37obtaining, accessing, or using information from electronic
38surveillance technology for the sole purpose of determining the
39date and time the vehicle is returned to the rental company, and
40the total mileage driven and the vehicle fuel level of the returned
P22   1vehicle. This paragraph, however, shall apply only after the renter
2has returned the vehicle to the rental company, and the information
3shall only be used for the purpose described in this paragraph.

4(o) A rental company shall not use electronic surveillance
5technology to track a renter in order to impose fines or surcharges
6relating to the renter’s use of the rental vehicle.

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

11(q) A rental company that brings an action against a renter for
12loss due to theft of the vehicle shall bring the action in the county
13in which the renter resides or, if the renter is not a resident of this
14state, in the jurisdiction in which the renter resides.

15(r) A waiver of any of the provisions of this section shall be
16void and unenforceable as contrary to public policy.

17(s) (1) A rental company’s disclosure requirements shall be
18satisfied for renters who are enrolled in the rental company’s
19membership program if all of the following conditions are met:

20(A) Prior to the enrollee’s first rental as a participant in the
21program, the renter receives, in writing, the following:

22(i) All of the disclosures required by paragraph (1) of subdivision
23(g), including the terms and conditions of the rental agreement
24then in effect.

25(ii) An Internet Web site address, as well as a contact number
26or address, where the enrollee can learn of changes to the rental
27agreement or to the laws of this state governing rental agreements
28since the effective date of the rental company’s most recent
29restatement of the rental agreement and distribution of that
30restatement to its members.

31(B) At the commencement of each rental period, the renter is
32provided, on the rental record or the folder in which it is inserted,
33with a printed notice stating that he or she had either previously
34selected or declined an optional damage waiver and that the renter
35has the right to change preferences.

36(C) At the commencement of each rental period, the rental
37company provides, on the rearview mirror, a hanger on which a
38statement is printed, in a box, in at least 12-point boldface type,
39notifying the renter that the collision damage waiver offered by
40the rental company may be duplicative of coverage that the
P23   1customer maintains under his or her own policy of motor vehicle
2insurance. If it is not feasible to hang the statement from the
3rearview mirror, it shall be hung from the steering wheel.

4The hanger shall provide the renter a box to initial if he or she
5(not his or her employer) has previously accepted or declined the
6collision damage waiver and that he or she now wishes to change
7his or her decision to accept or decline the collision damage waiver,
8as follows:
9


10“If I previously accepted the collision damage waiver, I now
11decline it.
12


13If I previously declined the collision damage waiver, I now
14accept it.”
15


16The hanger shall also provide a box for the enrollee to indicate
17whether this change applies to this rental transaction only or to all
18future rental transactions. The hanger shall also notify the renter
19that he or she may make that change, prior to leaving the lot, by
20returning the form to an employee designated to receive the form
21who is present at the lot where the renter takes possession of the
22car, to receive any change in the rental agreement from the renter.

23(2) (A) This subdivision is not effective unless the employee
24designated pursuant to subparagraph (E) of paragraph (9) of
25subdivision (a) is actually present at the required location.

26(B) This subdivision does not relieve the rental company from
27the disclosures required to be made within the text of a contract
28or holder in which the contract is placed; in or on an advertisement
29containing a rental rate; or in a telephonic, in-person, or
30computer-transmitted quotation or reservation.

31(t) The amendments made to this section during the 2001-02
32Regular Session of the Legislature do not affect litigation pending
33on or before January 1, 2003, alleging a violation of Section 22325
34of the Business and Professions Code as it read at the time the
35action was commenced.

36(u) (1) When a rental company enters into a rental agreement
37in the state for the rental of a vehicle to any renter who is not a
38 resident of this country and, as part of, or associated with, the rental
39agreement, the renter purchases liability insurance, as defined in
40subdivision (b) of Section 1758.85 of the Insurance Code, from
P24   1the rental company in its capacity as a rental car agent for an
2authorized insurer, the rental company shall be authorized to accept,
3and, if served as set forth in this subdivision, shall accept, service
4of a summons and complaint and any other required documents
5against the foreign renter for any accident or collision resulting
6from the operation of the rental vehicle within the state during the
7rental period. If the rental company has a registered agent for
8service of process on file with the Secretary of State, process shall
9be served on the rental company’s registered agent, either by
10first-class mail, return receipt requested, or by personal service.

11(2) Within 30 days of acceptance of service of process, the rental
12company shall provide a copy of the summons and complaint and
13any other required documents served in accordance with this
14subdivision to the foreign renter by first-class mail, return receipt
15requested.

16(3) Any plaintiff, or his or her representative, who elects to serve
17the foreign renter by delivering a copy of the summons and
18complaint and any other required documents to the rental company
19pursuant to paragraph (1) shall agree to limit his or her recovery
20against the foreign renter and the rental company to the limits of
21the protection extended by the liability insurance.

22(4) Notwithstanding the requirements of Sections 17450 to
2317456, inclusive, of the Vehicle Code, service of process in
24compliance with paragraph (1) shall be deemed valid and effective
25service.

26(5) Notwithstanding any other provision of law, the requirement
27that the rental company accept service of process pursuant to
28paragraph (1) shall not create any duty, obligation, or agency
29relationship other than that provided in paragraph (1).

end delete
30begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1936.05 of the end insertbegin insertCivil Codeend insertbegin insert is repealed.end insert

begin delete
31

1936.05.  

(a) For purposes of this section:

32(1) “Additional charges” means charges other than a per period
33base rental rate established by the business program.

34(2) “Business program” means (A) a contract between a rental
35company and a business program sponsor that has established the
36per period base rental rate, and any other material terms relating
37to additional charges, on which the rental company will rent
38passenger vehicles to persons authorized by the sponsor, or (B) a
39plan, program, or other arrangement established by a rental
40company at the request of, or with the consent of, a business
P25   1program sponsor under which the rental company offers to rent
2passenger vehicles to persons authorized by the sponsor at per
3period base rental rates, and any other material terms relating to
4additional charges, that are not the same as those generally offered
5by the rental company to the public.

6(3) “Business program sponsor” means a legal entity, other than
7a natural person, that is a corporation, limited liability company,
8or partnership.

9(4) “Business renter” means, for any business program sponsor,
10a person who is authorized by the sponsor, through the use of an
11identifying number or program name or code, to enter into a rental
12contract under the sponsor’s business program. In no case shall
13the term “business renter” include a person renting as: (A) a
14nonemployee member of a not-for-profit organization, (B) the
15purchaser of a voucher or other prepaid rental arrangement from
16a person, including a tour operator, engaged in the business of
17reselling those vouchers or prepaid rental arrangements to the
18general public, (C) an individual whose car rental is eligible for
19reimbursement in whole or in part as a result of the person being
20insured or provided coverage under a policy of insurance issued
21by an insurance company, or (D) an individual whose car rental
22is eligible for reimbursement in whole or in part as a result of the
23person purchasing passenger vehicle repair services from a person
24licensed to perform such services.

25(5) “Qualified business rental” under a business program
26established for a business program sponsor by a rental company
27means the rental of a passenger vehicle under the business program
28if either (A) in the 12-month period ending on the date of the rental
29or in the calendar year immediately preceding the year in which
30the rental occurs, the rentals under all business programs
31established by the rental company for the business program sponsor
32and its affiliates produced gross rental revenues in excess of
33twenty-five thousand dollars ($25,000) or (B) the rental company
34in good faith estimates that rentals under all the business programs
35established by the rental company for the business program sponsor
36and its affiliates will produce gross rental revenues in excess of
37twenty-five thousand dollars ($25,000) in the 12-month period
38commencing with the date of the rental or in the calendar year in
39which the rental occurs. The rental company has the burden of
P26   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
6subdivision (m) of Section 1936, a rental car company may, in
7connection with the qualified business rental of a passenger vehicle
8to a business renter of a business program sponsor under the
9sponsor’s business program, do both of the following:

10(1) Separately quote additional charges for the rental if, at the
11time the quote is provided, the person receiving the quote is also
12provided a good faith estimate of the total of all the charges for
13the entire rental. The estimate may exclude mileage charges and
14charges for optional items and services that cannot be determined
15prior to completing the reservation based upon the information
16provided by the renter.

17(2) Separately impose additional charges for the rental, if the
18rental contract, or another document provided to the business renter
19at the time and place the rental commences, clearly and
20conspicuously discloses the total of all the charges for the entire
21rental, exclusive of charges that cannot be determined at the time
22the rental commences.

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

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

29(e) Nothing in this section shall be interpreted to mean that a
30rental company is not required to comply with the requirements
31of paragraphs (3) to (7), inclusive, of subdivision (m) of Section
321936.

end delete
33begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 1936.1 of the end insertbegin insertCivil Codeend insertbegin insert is repealed.end insert

begin delete
34

1936.1.  

(a) (1) A rental company shall provide a renter of a
3515-passenger van with a copy of the United States Department of
36Transportation, National Highway Traffic Safety Administration’s
37consumer advisory for 15-passenger vans titled “Reducing the
38Risk of Rollover Crashes” or, if that advisory is updated, a copy
39of the updated advisory. The renter shall acknowledge receipt of
P27   1that copy by signing an acknowledgment of receipt on the rental
2agreement or on an attached form.

3(2) If the rental of that 15-passenger van is for a business
4purpose or use, the rental company shall also provide on the
5document described in paragraph (1) that only an employee with
6the proper licensing may drive that vehicle. The renter shall
7acknowledge the receipt thereof in the same manner as described
8in paragraph (1).

9(b) (1) Except as provided in paragraph (2), for purposes of
10this section, a “15-passenger van” means any van manufactured
11to accommodate 15 passengers, including the driver, regardless
12of whether that van has been altered to accommodate fewer than
1315 passengers.

14(2) For purposes of this section, a “15-passenger van” does not
15mean a 15-passenger van with dual rear wheels that has a gross
16weight rating equal to, or greater than, 11,500 pounds.

end delete
17begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 1936.5 of the end insertbegin insertCivil Codeend insertbegin insert is repealed.end insert

begin delete
18

1936.5.  

A “rental company” as defined in paragraph (1) of
19subdivision (a) of Section 1936 is not subject to the requirements
20of Section 14608 of the Vehicle Code if the rental is subject to the
21terms of a membership agreement that allows the renter to gain
22physical access to a car without a key through use of a code, key
23card, or by other means that allow the car to be accessed at a remote
24location, or at a business location of the rental company outside
25of that location’s regular hours of operation.

end delete
26begin insert

begin insertSEC. 5.end insert  

end insert

begin insertChapter 1.5 (commencing with Section 1939.01) is
27added to Title 5 of Part 4 of Division 3 of the end insert
begin insertCivil Codeend insertbegin insert, to read:end insert

begin insert

28 

29Chapter  begin insert1.5.end insert Rental Passenger Vehicle Transactions
30

 

31

begin insert1939.01.end insert  

For the purpose of this chapter, the following
32definitions shall apply:

33
(a) “Rental company” means a person or entity in the business
34of renting passenger vehicles to the public.

35
(b) “Renter” means any person in a manner obligated under a
36contract for the lease or hire of a passenger vehicle from a rental
37company for a period of less than 30 days.

38
(c) “Additional mandatory charges” means any separately
39stated charges that the rental company requires the renter to pay
40to hire or lease the vehicle for the period of time to which the rental
P28   1rate applies, which are imposed by a governmental entity and
2specifically relate to the operation of a rental vehicle business,
3including, but not limited to, a customer facility charge, airport
4concession fee, tourism commission assessment, vehicle license
5recovery fee, or other government imposed taxes or fees.

6
(d) “Airport concession fee” means a charge collected by a
7rental company from a renter that is the renter’s proportionate
8share of the amount paid by the rental company to the owner or
9operator of an airport for the right or privilege of conducting a
10vehicle rental business on the airport’s premises.

11
(e) “Authorized driver” means all of the following:

12
(1) The renter.

13
(2) The renter’s spouse, if that person is a licensed driver and
14satisfies the rental company’s minimum age requirement.

15
(3) The renter’s employer or coworker, if he or she is engaged
16in business activity with the renter, is a licensed driver, and
17satisfies the rental company’s minimum age requirement.

18
(4) A person expressly listed by the rental company on that
19renter’s contract as an authorized driver.

20
(f) “Customer facility charge” means any fee, including an
21alternative fee, required by an airport to be collected by a rental
22company from a renter pursuant to Section 50474.21 or 50474.22
23of the Government Code.

24
(g) “Damage waiver” means a rental company’s agreement
25not to hold a renter liable for all or any portion of any damage or
26loss related to the rented vehicle, any loss of use of the rented
27vehicle, or any storage, impound, towing, or administrative
28charges.

29
(h) “Electronic surveillance technology” means a technological
30method or system used to observe, monitor, or collect information,
31including telematics, Global Positioning System (GPS), wireless
32technology, or location-based technologies. “Electronic
33surveillance technology” does not include event data recorders
34(EDR), sensing and diagnostic modules (SDM), or other systems
35that are used either:

36
(1) For the purpose of identifying, diagnosing, or monitoring
37functions related to the potential need to repair, service, or perform
38maintenance on the rental vehicle.

39
(2) As part of the vehicle’s airbag sensing and diagnostic system
40in order to capture safety systems-related data for retrieval after
P29   1a crash has occurred or in the event that the collision sensors are
2activated to prepare the decisionmaking computer to make the
3 determination to deploy or not to deploy the airbag.

4
(i) “Estimated time for replacement” means the number of hours
5of labor, or fraction thereof, needed to replace damaged vehicle
6parts as set forth in collision damage estimating guides generally
7used in the vehicle repair business and commonly known as “crash
8books.”

9
(j) “Estimated time for repair” means a good faith estimate of
10the reasonable number of hours of labor, or fraction thereof,
11needed to repair damaged vehicle parts.

12
(k) “Membership program” means a service offered by a rental
13company that permits customers to bypass the rental counter and
14go directly to the vehicle previously reserved. A membership
15program shall meet all of the following requirements:

16
(1) The renter initiates enrollment by completing an application
17on which the renter can specify a preference for type of vehicle
18and acceptance or declination of optional services.

19
(2) The rental company fully discloses, prior to the enrollee’s
20first rental as a participant in the program, all terms and conditions
21of the rental agreement as well as all required disclosures.

22
(3) The renter may terminate enrollment at any time.

23
(4) The rental company fully explains to the renter that
24designated preferences, as well as acceptance or declination of
25optional services, may be changed by the renter at any time for
26the next and future rentals.

27
(5) A designated employee is present at the lot where the renter
28takes possession of the vehicle, to receive any change in the rental
29agreement from the renter.

30
(l) “Passenger vehicle” or “vehicle” means a “passenger
31vehicle” as defined in Section 465 of the Vehicle Code.

32
(m) “Quote” means an estimated cost of rental provided by a
33rental company or a third party to a potential customer that is
34based on information provided by the potential customer and used
35to generate an estimated cost of rental, including, but not limited
36to, potential dates of rental, locations, or classes of vehicle.

37
(n) “Tourism commission assessment” means the charge
38collected by a rental company from a renter that has been
39established by the California Travel and Tourism Commission
40pursuant to Section 13995.65 of the Government Code.

P30   1
(o) “Vehicle license fee” means the tax imposed pursuant to
2the Vehicle License Fee Law (Part 5 (commencing with Section
310701) of Division 2 of the Revenue and Taxation Code).

4
(p) “Vehicle registration fee” means any fee imposed pursuant
5to any provision of Chapter 6 (commencing with Section 9101) of
6Division 3 of the Vehicle Code or any other law that imposes a fee
7upon the registration of vehicles in this state.

8
(q) “Vehicle license recovery fee” means a charge that seeks
9to recover the amount of any vehicle license fee and vehicle
10registration fee paid by a rental company for the particular class
11of vehicle being rented.

12

begin insert1939.03.end insert  

Except as limited by Section 1939.05, a rental
13company and a renter may agree that the renter will be responsible
14for no more than all of the following:

15
(a) Physical or mechanical damage to the rented vehicle up to
16its fair market value, as determined in the customary market for
17the sale of that vehicle, resulting from collision regardless of the
18cause of the damage.

19
(b) Loss due to theft of the rented vehicle up to its fair market
20value, as determined in the customary market for the sale of that
21vehicle, provided that the rental company establishes by clear and
22convincing evidence that the renter or the authorized driver failed
23to exercise ordinary care while in possession of the vehicle. In
24 addition, the renter shall be presumed to have no liability for any
25loss due to theft if (1) an authorized driver has possession of the
26ignition key furnished by the rental company or an authorized
27driver establishes that the ignition key furnished by the rental
28company was not in the vehicle at the time of the theft, and (2) an
29authorized driver files an official report of the theft with the police
30or other law enforcement agency within 24 hours of learning of
31the theft and reasonably cooperates with the rental company and
32the police or other law enforcement agency in providing
33information concerning the theft. The presumption set forth in this
34subdivision is a presumption affecting the burden of proof which
35the rental company may rebut by establishing that an authorized
36driver committed, or aided and abetted the commission of, the
37theft.

38
(c) Physical damage to the rented vehicle up to its fair market
39value, as determined in the customary market for the sale of that
40vehicle, resulting from vandalism occurring after, or in connection
P31   1with, the theft of the rented vehicle. However, the renter shall have
2no liability for any damage due to vandalism if the renter would
3have no liability for theft pursuant to subdivision (b).

4
(d) Physical damage to the rented vehicle up to a total of five
5hundred dollars ($500) resulting from vandalism unrelated to the
6theft of the rented vehicle.

7
(e) Actual charges for towing, storage, and impound fees paid
8by the rental company if the renter is liable for damage or loss.

9
(f) An administrative charge, which shall include the cost of
10appraisal and all other costs and expenses incident to the damage,
11loss, repair, or replacement of the rented vehicle.

12

begin insert1939.05.end insert  

(a) The total amount of the renter’s liability to the
13rental company resulting from damage to the rented vehicle shall
14not exceed the sum of the following:

15
(1) The estimated cost of parts which the rental company would
16have to pay to replace damaged vehicle parts.

17
(2) The estimated cost of labor to replace damaged vehicle
18parts, which shall not exceed the product of (A) the rate for labor
19usually paid by the rental company to replace vehicle parts of the
20type that were damaged and (B) the estimated time for replacement.

21
(3) The estimated cost of labor to repair damaged vehicle parts,
22which shall not exceed the lesser of the following:

23
(A) The product of the rate for labor usually paid by the rental
24company to repair vehicle parts of the type that were damaged
25and the estimated time for repair.

26
(B) The sum of the estimated labor and parts costs determined
27under paragraphs (1) and (2) to replace the same vehicle parts.

28
(4) Actual charges for towing, storage, and impound fees paid
29by the rental company.

30
(b) For purposes of subdivision (a), all discounts and price
31reductions or adjustments that are or will be received by the rental
32company shall be subtracted from the estimate to the extent not
33already incorporated in the estimate, or otherwise promptly
34credited or refunded to the renter.

35
(c) For the purpose of converting the estimated time for repair
36into the same units of time in which the rental rate is expressed,
37a day shall be deemed to consist of eight hours.

38
(d) The administrative charge described in subdivision (f) of
39Section 1939.03 shall not exceed (1) fifty dollars ($50) if the total
40estimated cost for parts and labor is more than one hundred dollars
P32   1($100) up to and including five hundred dollars ($500), (2) one
2hundred dollars ($100) if the total estimated cost for parts and
3labor exceeds five hundred dollars ($500) up to and including one
4thousand five hundred dollars ($1,500), or (3) one hundred fifty
5dollars ($150) if the total estimated cost for parts and labor
6exceeds one thousand five hundred dollars ($1,500). An
7administrative charge shall not be imposed if the total estimated
8cost of parts and labor is one hundred dollars ($100) or less.

9
(e) The total amount of an authorized driver’s liability to the
10rental company, if any, for damage occurring during the authorized
11driver’s operation of the rented vehicle shall not exceed the amount
12of the renter’s liability under this section.

13
(f) A rental company shall not recover from an authorized driver
14an amount exceeding the renter’s liability under this section.

15

begin insert1939.07.end insert  

(a) A claim against a renter resulting from damage
16or loss, excluding loss of use, to a rental vehicle shall be
17reasonably and rationally related to the actual loss incurred. A
18rental company shall mitigate damages where possible and shall
19not assert or collect a claim for physical damage which exceeds
20the actual costs of the repairs performed or the estimated cost of
21repairs, if the rental company chooses not to repair the vehicle,
22including all discounts and price reductions. However, if the
23vehicle is a total loss vehicle, the claim shall not exceed the total
24loss vehicle value established in accordance with procedures that
25are customarily used by insurance companies when paying claims
26on total loss vehicles, less the proceeds from salvaging the vehicle,
27if those proceeds are retained by the rental company.

28
(b) If insurance coverage exists under the renter’s applicable
29personal or business insurance policy and the coverage is
30confirmed during regular business hours, the renter may require
31that the rental company submit any claims to the renter’s
32applicable personal or business insurance carrier. The rental
33company shall not make any written or oral representations that
34it will not present claims or negotiate with the renter’s insurance
35carrier. For purposes of this subdivision, confirmation of coverage
36includes telephone confirmation from insurance company
37representatives during regular business hours. Upon request of
38the renter and after confirmation of coverage, the amount of claim
39shall be resolved between the insurance carrier and the rental
40company. The renter shall remain responsible for payment to the
P33   1rental company for any loss sustained that the renter’s applicable
2personal or business insurance policy does not cover.

3
(c) A rental company shall not recover from an authorized driver
4for an item described in Section 1939.03 to the extent the rental
5company obtains recovery from another person.

6
(d) This chapter applies only to the maximum liability of an
7authorized driver to the rental company resulting from damage to
8the rented vehicle and not to the liability of another person.

9

begin insert1939.09.end insert  

(a) (1) Except as provided in subdivision (b), a
10damage waiver shall provide or, if not expressly stated in writing,
11shall be deemed to provide that the renter has no liability for
12damage, loss, loss of use, or a cost or expense incident thereto.

13
(2) Except as provided in subdivision (b), every limitation,
14exception, or exclusion to a damage waiver is void and
15unenforceable.

16
(b) A rental company may provide in the rental contract that a
17damage waiver does not apply under any of the following
18circumstances:

19
(1) Damage or loss results from an authorized driver’s (A)
20intentional, willful, wanton, or reckless conduct, (B) operation of
21the vehicle under the influence of drugs or alcohol in violation of
22Section 23152 of the Vehicle Code, (C) towing or pushing anything,
23or (D) operation of the vehicle on an unpaved road if the damage
24or loss is a direct result of the road or driving conditions.

25
(2) Damage or loss occurs while the vehicle is (A) used for
26commercial hire, (B) used in connection with conduct that could
27be properly charged as a felony, (C) involved in a speed test or
28contest or in driver training activity, (D) operated by a person
29other than an authorized driver, or (E) operated outside the United
30States.

31
(3) An authorized driver who has (A) provided fraudulent
32information to the rental company, or (B) provided false
33information and the rental company would not have rented the
34vehicle if it had instead received true information.

35
(c) (1) A rental company that offers or provides a damage
36waiver for any consideration in addition to the rental rate shall
37clearly and conspicuously disclose the following information in
38the rental contract or holder in which the contract is placed and,
39also, in signs posted at the place where the renter signs the rental
40contract, and, for renters who are enrolled in the rental company’s
P34   1membership program, in a sign that shall be posted in a location
2clearly visible to those renters as they enter the location where
3their reserved rental vehicles are parked or near the exit of the
4bus or other conveyance that transports the enrollee to a reserved
5vehicle: (A) the nature of the renter’s liability, such as liability for
6all collision damage regardless of cause, (B) the extent of the
7renter’s liability, such as liability for damage or loss up to a
8specified amount, (C) the renter’s personal insurance policy or
9the credit card used to pay for the vehicle rental transaction may
10provide coverage for all or a portion of the renter’s potential
11liability, (D) the renter should consult with his or her insurer to
12determine the scope of insurance coverage, including the amount
13of the deductible, if any, for which the renter is obligated, (E) the
14renter may purchase an optional damage waiver to cover all
15liability, subject to whatever exceptions the rental company
16expressly lists that are permitted under subdivision (b), and (F)
17the range of charges for the damage waiver.

18
(2) In addition to the requirements of paragraph (1), a rental
19company that offers or provides a damage waiver shall orally
20disclose to all renters, except those who are participants in the
21rental company’s membership program, that the damage waiver
22may be duplicative of coverage that the customer maintains under
23his or her own policy of motor vehicle insurance. The renter shall
24acknowledge receipt of the oral disclosure near that part of the
25contract where the renter indicates, by the renter’s own initials,
26his or her acceptance or declination of the damage waiver.
27Adjacent to that same part, the contract also shall state that the
28damage waiver is optional. Further, the contract for these renters
29shall include a clear and conspicuous written disclosure that the
30damage waiver may be duplicative of coverage that the customer
31maintains under his or her own policy of motor vehicle insurance.

32
(3) (A) The following is an example, for purposes of illustration
33and not limitation, of a notice fulfilling the requirements of
34paragraph (1) for a rental company that imposes liability on the
35renter for collision damage to the full value of the vehicle:


37
“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY AND
38OPTIONAL DAMAGE WAIVER

39
You are responsible for all collision damage to the rented vehicle
40even if someone else caused it or the cause is unknown. You are
P35   1responsible for the cost of repair up to the value of the vehicle,
2and towing, storage, and impound fees.

3
Your own insurance, or the issuer of the credit card you use to
4pay for the vehicle rental transaction, may cover all or part of
5your financial responsibility for the rented vehicle. You should
6check with your insurance company, or credit card issuer, to find
7out about your coverage and the amount of the deductible, if any,
8for which you may be liable.

9
Further, if you use a credit card that provides coverage for your
10potential liability, you should check with the issuer to determine
11if you must first exhaust the coverage limits of your own insurance
12before the credit card coverage applies.

13
The rental company will not hold you responsible if you buy a
14damage waiver. But a damage waiver will not protect you if (list
15exceptions).”


17
(B) When the notice in subparagraph (A) is printed in the rental
18contract or holder in which the contract is placed, the following
19shall be printed immediately following the notice:


21
“The cost of an optional damage waiver is $____ for every (day
22or week).”


24
(C) When the notice in subparagraph (A) appears on a sign,
25the following shall appear immediately adjacent to the notice:


27
“The cost of an optional damage waiver is $____ to $____ for
28every (day or week), depending upon the vehicle rented.”


30
(d) Notwithstanding any other law, a rental company may sell
31a damage waiver subject to the following rate limitations for each
32full or partial 24-hour rental day for the damage waiver:

33
(1) For rental vehicles that the rental company designates as
34an “economy car,” “compact car,” or another term having similar
35meaning 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).

39
(2) For rental vehicles that the rental company designates as
40an “intermediate car,” “standard car,” or “full-size car,” or
P36   1another term having similar meaning to the next three body-size
2categories of vehicles established by the Association of Car Rental
3Industry Systems Standards for North America, as of January 1,
42014, and that are also either vehicles of the next model-year, or
5not older than the previous year’s model, when offered for rental,
6the rate shall not exceed seventeen dollars ($17). For rental
7vehicles that are older than the previous year’s model-year, the
8rate shall not exceed eleven dollars ($11).

9

begin insert1939.13.end insert  

(a) A rental company shall not require the purchase
10of a damage waiver, optional insurance, or another optional good
11or service.

12
(b) A rental company shall not engage in any unfair, deceptive,
13or coercive conduct to induce a renter to purchase the damage
14waiver, optional insurance, or another optional good or service,
15including conduct such as, but not limited to, refusing to honor
16the renter’s reservation, limiting the availability of vehicles,
17requiring a deposit, or debiting or blocking the renter’s credit
18card account for a sum equivalent to a deposit if the renter declines
19to purchase the damage waiver, optional insurance, or another
20optional good or service.

21

begin insert1939.15.end insert  

(a) In the absence of express permission granted by
22the renter subsequent to damage to, or loss of, the rented vehicle,
23a rental company shall not seek to recover any portion of a claim
24arising out of damage to, or loss of, the vehicle by processing a
25credit card charge or causing a debit or block to be placed on the
26renter’s credit card account.

27
(b) A rental company shall not engage in any unfair, deceptive,
28or coercive tactics in attempting to recover or in recovering on
29any claim arising out of damage to, or loss of, the rented vehicle.

30

begin insert1939.17.end insert  

A customer facility charge or alternative customer
31facility charge may be collected by a rental company pursuant to
32Section 50474.3 or 50474.4 of the Government Code.

33

begin insert1939.19.end insert  

(a) When providing a quote, or imposing charges
34for a rental, the rental company may separately state the rental
35rate, additional mandatory charges, if any, and a mileage charge,
36if any, that a renter must pay to hire or lease the vehicle for the
37period of time to which the rental rate applies. A rental company
38shall not charge in addition to the rental rate, additional
39mandatory charges, or a mileage charge, as those may be
P37   1applicable, any other fee that is required to be paid by the renter
2as a condition of hiring or leasing the vehicle.

3
(b) If additional mandatory charges are imposed, the rental
4company shall do each of the following:

5
(1) At the time the quote is given, provide the person receiving
6the quote with a good faith estimate of the rental rate and all
7additional mandatory charges, as well as the total charges for the
8entire rental. The total charges, if provided on an Internet Web
9site page, shall be displayed in a typeface at least as large as any
10rental rate disclosed on that page and shall be provided on a page
11that the person receiving the quote may reach by following links
12through no more than two Internet Web site pages, including the
13page on which the rental rate is first provided. The good faith
14estimate may exclude mileage charges and charges for optional
15items that cannot be determined prior to completing the reservation
16based upon the information provided by the person.

17
(2) At the time and place the rental commences, clearly and
18conspicuously disclose in the rental contract, or that portion of
19the contract that is provided to the renter, the total of the rental
20rate and additional mandatory charges, for the entire rental,
21exclusive of charges that cannot be determined at the time the
22rental commences. Charges imposed pursuant to this paragraph
23shall be no more than the amount of the quote provided in a
24confirmed reservation, unless the person changes the terms of the
25rental contract subsequent to making the reservation.

26
(3) Provide each person, other than those persons within the
27rental company, offering quotes to actual or prospective customers
28access to information about additional mandatory charges, as well
29as access to information about when those charges apply. Any
30person providing quotes to actual or prospective customers for
31the hire or lease of a vehicle from a rental company shall provide
32the quotes in the manner described in paragraph (1).

33
(c) In addition to the rental rate, taxes, additional mandatory
34charges, if any, and mileage charges, if any, a rental company
35may charge for an item or service provided in connection with a
36particular rental transaction if the renter could have avoided
37incurring the charge by choosing not to obtain or utilize the
38optional item or service. Items and services for which the rental
39company may impose an additional charge include, but are not
40limited to, optional insurance and accessories requested by the
P38   1renter, service charges incident to the renter’s optional return of
2the vehicle to a location other than the location where the vehicle
3was hired or leased, and charges for refueling the vehicle at the
4conclusion of the rental transaction in the event the renter did not
5return the vehicle with as much fuel as was in the fuel tank at the
6beginning of the rental. A rental company also may impose an
7additional charge based on reasonable age criteria established
8by the rental company.

9
(d) A rental company shall not charge a fee for authorized
10drivers in addition to the rental charge for an individual renter.

11
(e) If a rental company states a rental rate in print advertisement
12or in a quotation, the rental company shall disclose clearly in that
13advertisement or quotation the terms of mileage conditions,
14including, but not limited to, to the extent applicable, the amount
15of mileage and gas charges, the number of miles for which no
16charges will be imposed, and a description of geographic driving
17limitations within the United States and Canada.

18
(f) All rate advertisements shall include a disclaimer, which
19shall be prominently displayed, providing that additional
20mandatory charges may be imposed, including, but not limited to,
21airport fees, tourism fees, vehicle license recovery fees, or other
22government imposed taxes or fees, and indicating that this
23information is displayed on the rental company’s Internet Web
24site. All rate advertisements shall also include a statement that
25additional charges may apply if an optional good or service, such
26as a damage waiver, is purchased.

27
(g) If any person or entity other than a rental company,
28including a passenger carrier or a seller of travel services,
29advertises a rental rate for a vehicle rental that includes additional
30mandatory charges, that person or entity shall clearly disclose the
31existence and amount of the charges. If a rental company provides
32the person or entity with rental rate and additional mandatory
33charges information, the rental car company is not responsible
34for the failure of that person or entity to comply with this
35subdivision.

36
(h) If a rental company delivers a vehicle to a renter at a
37location other than the location where the rental company normally
38carries on its business, the rental company shall not charge the
39renter an amount for the rental for the period before the delivery
40of the vehicle. If a rental company picks up a rented vehicle from
P39   1a renter at a location other than the location where the rental
2company normally carries on its business, the rental company
3shall not charge the renter an amount for the rental for the period
4after the renter notifies the rental company to pick up the vehicle.

5
(i) Except as otherwise permitted pursuant to the customer
6facility charge, a rental company shall not separately charge, in
7addition to the rental rate, a fee for transporting the renter to a
8location where the rented vehicle will be delivered to the renter.

9

begin insert1939.21.end insert  

(a) For purposes of this section:

10
(1) “Additional charges” means charges other than a per period
11base rental rate established by the business program.

12
(2) “Business program” means either of the following:

13
(A) A contract between a rental company and a business
14program sponsor that has established the per period base rental
15rate, and any other material terms relating to additional charges,
16on which the rental company will rent passenger vehicles to
17persons authorized by the sponsor.

18
(B) A plan, program, or other arrangement established by a
19rental company at the request of, or with the consent of, a business
20program sponsor under which the rental company offers to rent
21passenger vehicles to persons authorized by the sponsor at per
22period base rental rates, and any other material terms relating to
23additional charges, that are not the same as those generally offered
24by the rental company to the public.

25
(3) “Business program sponsor” means a legal entity, other
26than a natural person, that is a corporation, limited liability
27company, or partnership.

28
(4) “Business renter” means, for any business program sponsor,
29a person who is authorized by the sponsor, through the use of an
30identifying number or program name or code, to enter into a rental
31contract under the sponsor’s business program. In no case shall
32the term “business renter” include a person renting as any of the
33following:

34
(A) A nonemployee member of a not-for-profit organization.

35
(B) The purchaser of a voucher or other prepaid rental
36arrangement from a person, including a tour operator, engaged
37in the business of reselling those vouchers or prepaid rental
38arrangements to the general public.

39
(C) An individual whose vehicle rental is eligible for
40reimbursement in whole or in part as a result of the person being
P40   1insured or provided coverage under a policy of insurance issued
2by an insurance company.

3
(D) An individual whose vehicle rental is eligible for
4reimbursement in whole or in part as a result of the person
5purchasing passenger vehicle repair services from a person
6licensed to perform such services.

7
(5) “Qualified business rental” under a business program
8established for a business program sponsor by a rental company
9means the rental of a passenger vehicle under the business program
10if either:(A) in the 12-month period ending on the date of the rental
11or in the calendar year immediately preceding the year in which
12the rental occurs, the rentals under all business programs
13established by the rental company for the business program
14sponsor and its affiliates produced gross rental revenues in excess
15of twenty-five thousand dollars ($25,000) or (B) the rental company
16in good faith estimates that rentals under all the business programs
17established by the rental company for the business program
18sponsor and its affiliates will produce gross rental revenues in
19excess of twenty-five thousand dollars ($25,000) in the 12-month
20period commencing with the date of the rental or in the calendar
21year in which the rental occurs. The rental company has the burden
22of establishing by objectively verifiable evidence that the rental
23was a qualified business rental.

24
(6) “Quote” means telephonic, in-person, and
25computer-transmitted quotations.

26
(b) Notwithstanding any provision to the contrary contained in
27Section 1939.19 or 1939.23, a rental company may, in connection
28with the qualified business rental of a passenger vehicle to a
29business renter of a business program sponsor under the sponsor’s
30business program, do all of the following:

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

38
(2) Separately impose additional charges for the rental, if the
39rental contract, or another document provided to the business
40renter at the time and place the rental commences, clearly and
P41   1conspicuously discloses the total of all the charges for the entire
2rental, exclusive of charges that cannot be determined at the time
3the rental commences.

4
(3) Use technology, including electronic surveillance technology,
5or information obtained from the use of the technology, to
6determine the date and time the vehicle departs from, or is returned
7to, the rental company, for the sole purposes of commencing and
8concluding the rental.

9
(c) A renter may bring an action against a rental company for
10the recovery of damages and appropriate equitable relief for a
11violation of this section. The prevailing party shall be entitled to
12recover reasonable attorney’s fees and costs.

13
(d) Any waiver of any of the provisions of this section shall be
14void and unenforceable as contrary to public policy.

15
(e) This section shall not be interpreted to mean that a rental
16company is not required to comply with the requirements of
17subdivisions (c) to (h), inclusive, of Section 1939.19.

18

begin insert1939.23.end insert  

(a) A rental company shall not use, access, or obtain
19any information relating to the renter’s use of the rental vehicle
20that was obtained using electronic surveillance technology, except
21in the following circumstances:

22
(1) (A) When the equipment is used by the rental company only
23for the purpose of locating a stolen, abandoned, or missing rental
24vehicle after one of the following:

25
(i) The renter or law enforcement has informed the rental
26company that the vehicle is missing or has been stolen or
27abandoned.

28
(ii) The rental vehicle has not been returned following three
29calendar days after the contracted return date, or by three calendar
30days following the end of an extension of that return date.

31
(iii) The rental company discovers the rental vehicle has been
32stolen or abandoned, and, if stolen, the rental company shall report
33the vehicle stolen to law enforcement by filing a stolen vehicle
34report, unless law enforcement has already informed the rental
35company that the vehicle is missing or has been stolen or
36abandoned.

37
(B) If electronic surveillance technology is activated pursuant
38to subparagraph (A), a rental company shall maintain a record,
39in either electronic or written form, of information relevant to the
40activation of that technology. That information shall include the
P42   1rental agreement, including the return date, and the date and time
2the electronic surveillance technology was activated. The record
3shall also include, if relevant, a record of written or other
4 communication with the renter, including communications
5regarding extensions of the rental, police reports, or other written
6communication with law enforcement officials. The record shall
7be maintained for a period of at least 12 months from the time the
8record is created and shall be made available upon the renter’s
9request. The rental company shall maintain and furnish
10explanatory codes necessary to read the record. A rental company
11shall not be required to maintain a record if electronic surveillance
12technology is activated to recover a rental vehicle that is stolen
13or missing at a time other than during a rental period.

14
(2) In response to a specific request from law enforcement
15pursuant to a subpoena or search warrant.

16
(b) Subdivision (a) does not prohibit a rental company from
17equipping rental vehicles with any of the following:

18
(1) GPS-based technology that provides navigation assistance
19to the occupants of the rental vehicle, if the rental company does
20not use, access, or obtain information relating to the renter’s use
21of the rental vehicle that was obtained using that technology, except
22for the purposes of discovering or repairing a defect in the
23technology and the information may then be used only for that
24purpose.

25
(2) Electronic surveillance technology that allows for the remote
26locking or unlocking of the vehicle at the request of the renter, if
27the rental company does not use, access, or obtain information
28relating to the renter’s use of the rental vehicle that was obtained
29using that technology, except as necessary to lock or unlock the
30vehicle.

31
(3) Electronic surveillance technology that allows the company
32to provide roadside assistance, such as towing, flat tire, or fuel
33services, at the request of the renter, if the rental company does
34not use, access, or obtain information relating to the renter’s use
35of the rental vehicle that was obtained using that technology except
36as necessary to provide the requested roadside assistance.

37
(c) Subdivision (a) 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
P43   1the total mileage driven and the vehicle fuel level of the returned
2vehicle. This subdivision, 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 subdivision.

5
(d) A rental company shall not use electronic surveillance
6technology to track a renter in order to impose fines or surcharges
7relating to the renter’s use of the rental vehicle.

8

begin insert1939.25.end insert  

A renter may bring an action against a rental
9company for the recovery of damages and appropriate equitable
10relief for a violation of this chapter, except for Sections 1939.21,
111939.35, and 1939.37. The prevailing party shall be entitled to
12recover reasonable attorney’s fees and costs.

13

begin insert1939.27.end insert  

A rental company that brings an action against a
14renter for loss due to theft of the vehicle shall bring the action in
15the county in which the renter resides or, if the renter is not a
16resident of this state, in the jurisdiction in which the renter resides.

17

begin insert1939.29.end insert  

A waiver of any of the provisions of this chapter,
18except for Sections 1939.21, 1939.35, and 1939.37, shall be void
19and unenforceable as contrary to public policy.

20

begin insert1939.31.end insert  

(a) A rental company’s disclosure requirements shall
21be satisfied for renters who are enrolled in the rental company’s
22membership program if all of the following conditions are met:

23
(1) Prior to the enrollee’s first rental as a participant in the
24program, the renter receives, in writing, the following:

25
(A) All of the disclosures required by paragraph (1) of
26subdivision (c) of Section 1939.09, including the terms and
27conditions of the rental agreement then in effect.

28
(B) An Internet Web site address, as well as a contact number
29or address, where the enrollee can learn of changes to the rental
30agreement or to the laws of this state governing rental agreements
31since the effective date of the rental company’s most recent
32restatement of the rental agreement and distribution of that
33restatement to its members.

34
(2) At the commencement of each rental period, the renter is
35provided, on the rental record or the folder in which it is inserted,
36with a printed notice stating that he or she had either previously
37selected or declined an optional damage waiver and that the renter
38has the right to change preferences.

P44   1
(b) (1) This section is not effective unless the employee
2designated pursuant to paragraph (5) of subdivision (k) of Section
31939.01 is actually present at the required location.

4
(2) This section does not relieve the rental company from the
5disclosures required to be made within the text of a contract or
6 holder in which the contract is placed; in or on an advertisement
7containing a rental rate; or in a telephonic, in-person, or
8computer-transmitted quotation or reservation.

9

begin insert1939.33.end insert  

(a) When a rental company enters into a rental
10agreement in the state for the rental of a vehicle to any renter who
11is not a resident of this country and, as part of, or associated with,
12the rental agreement, the renter purchases liability insurance, as
13defined in subdivision (b) of Section 1758.85 of the Insurance
14Code, from the rental company in its capacity as a rental vehicle
15agent for an authorized insurer, the rental company shall be
16authorized to accept, and, if served as set forth in this section,
17shall accept, service of a summons and complaint and any other
18required documents against the foreign renter for any accident or
19collision resulting from the operation of the rental vehicle within
20the state during the rental period. If the rental company has a
21registered agent for service of process on file with the Secretary
22of State, process shall be served on the rental company’s registered
23agent, either by first-class mail, return receipt requested, or by
24personal service.

25
(b) Within 30 days of acceptance of service of process, the rental
26company shall provide a copy of the summons and complaint and
27any other required documents served in accordance with this
28section to the foreign renter by first-class mail, return receipt
29requested.

30
(c) Any plaintiff, or his or her representative, who elects to serve
31the foreign renter by delivering a copy of the summons and
32complaint and any other required documents to the rental company
33pursuant to subdivision (a) shall agree to limit his or her recovery
34against the foreign renter and the rental company to the limits of
35the protection extended by the liability insurance.

36
(d) Notwithstanding the requirements of Sections 17450 to
3717456, inclusive, of the Vehicle Code, service of process in
38compliance with subdivision (a) shall be deemed a valid and
39effective service.

P45   1
(e) Notwithstanding any other law, the requirement that the
2rental company accept service of process pursuant to subdivision
3(a) shall not create any duty, obligation, or agency relationship
4other than that provided in subdivision (a).

5

begin insert1939.35.end insert  

(a) (1) A rental company shall provide a renter of
6a 15-passenger van with a copy of the United States Department
7of Transportation, National Highway Traffic Safety
8Administration’s consumer advisory for 15-passenger vans titled
9“Reducing the Risk of Rollover Crashes” or, if that advisory is
10updated, a copy of the updated advisory. The renter shall
11acknowledge receipt of that copy by signing an acknowledgment
12of receipt on the rental agreement or on an attached form.

13
(2) If the rental of that 15-passenger van is for a business
14purpose or use, the rental company shall also provide on the
15document described in paragraph (1) that only an employee with
16the proper licensing may drive that vehicle. The renter shall
17 acknowledge the receipt thereof in the same manner as described
18in paragraph (1).

19
(b) (1) Except as provided in paragraph (2), for purposes of
20this section, a “15-passenger van” means any van manufactured
21to accommodate 15 passengers, including the driver, regardless
22of whether that van has been altered to accommodate fewer than
2315 passengers.

24
(2) For purposes of this section, a “15-passenger van” does
25not mean a 15-passenger van with dual rear wheels that has a
26gross weight rating equal to, or greater than, 11,500 pounds.

27

begin insert1939.37.end insert  

A rental company is not subject to the requirements
28of Section 14608 of the Vehicle Code if the rental is subject to the
29terms of a membership agreement that allows the renter to gain
30physical access to a vehicle without a key through use of a code,
31key card, or by other means that allow the vehicle to be accessed
32at a remote location, or at a business location of the rental
33company outside of that location’s regular hours of operation.

end insert
34begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 50474.1 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
35to read:end insert

36

50474.1.  

(a) An airport operated by a city and county may
37require a rental car company, in writing, to collect a fee from its
38customers on behalf of the airport for the use of an
39airport-mandated common use busing system or light rail transit
40system operated for the movement of passengers between the
P46   1terminal and a consolidated on-airport rental car facility. If a rental
2car company is required pursuant to this section to collect a fee,
3the following conditions shall apply:

4(1) The fees shall be calculated on a per contract basis.

5(2) All fees collected for this purpose constitute debts owed to
6the airport by the collecting party. The debts are due and payable
7to the airport quarterly or at any other interval the airport may
8establish to facilitate collection and insure payment.

9(3) The fee is a user fee, not a tax.

10(4) Revenues collected from the fee may not exceed the
11reasonable costs of providing the busing and light rail transit
12service andbegin delete mayend deletebegin insert shallend insert not be used for any other purpose.

13(b) Notwithstanding any otherbegin delete provision ofend delete law, including, but
14not limited to,begin insert Chapter 1.5 (commencing withend insert Sectionbegin delete 1936end delete
15begin insert 1939.01) of Title 5 of Part 4 of Division 3end insert of the Civil Code, a
16rental car company that is required to collect fees under this section
17shall do all of the following:

18(1) Collect the fee from those of its customers subject to the fee
19as required in subdivision (a).

20(2) Clearly disclose the existence of the fee in any radio,
21television, or print advertisement that states a rental rate applicable
22to an airport at which the fee is to be imposed, and the amount of
23the fee at the airport where it is imposed, or a range of fees if the
24fee is imposed at more than one airport.

25(3) Clearly disclose the existence of the fee in a telephonic,
26in-person, or computer-transmitted quotation that states a rental
27rate applicable to an airport at which the fee is to be imposed and
28the amount of the fee at the airport where it is imposed.

29(4) Separately identify the fee on its rental agreement.

30begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 50474.21 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
31to read:end insert

begin insert
32

begin insert50474.21.end insert  

(a) Except as provided in section 50474.22, for
33purposes of this article, “customer facility charge” means any fee,
34including an alternative fee, required by an airport, other than
35Los Angeles International Airport, to be collected by a rental
36company from a renter for any of the following purposes:

37
(1) To finance, design, and construct consolidated airport
38vehicle rental facilities.

39
(2) To finance, design, construct, and operate common-use
40transportation systems that move passengers between airport
P47   1terminals and those consolidated vehicle rental facilities, and
2acquire vehicles for use in that system.

3
(3) To finance, design, and construct terminal modifications
4solely to accommodate and provide customer access to
5common-use transportation systems. The fees designated as a
6customer facility charge shall not otherwise be used to pay for
7terminal expansion, gate expansion, runway expansion, changes
8in hours of operation, or changes in the number of flights arriving
9or departing from the airport.

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
17to limit costs, potential alternatives for meeting the airport’s
18revenue needs other than the collection of the fee, and whether
19and to what extent rental companies or other businesses or
20individuals using the facility or common-use transportation system
21may pay for the costs associated with these facilities and systems
22apart from the fee from rental customers, or whether the airport
23did not comply with any provision of this section. Copies of the
24audit shall be provided to the Assembly and Senate Committees
25on Judiciary, the Assembly Committee on Transportation, and the
26Senate Committee on Transportation and Housing and shall be
27posted on the airport’s Internet Web site. In the case of a customer
28facility charge for a common-use transportation system, the audit
29shall also consider the reasonable costs of providing the transit
30system or busing network pursuant to paragraph (1) of subdivision
31(a). Any audit required by this subdivision may be included as a
32part of an audit of an airport’s finances.

33
(c) Except as provided in subdivision (d), the authorization
34given pursuant to this article 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 a 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
P48   1of up to 10 years from the imposition of the charge for the purposes
2allowed by, and subject to the conditions imposed by, this article.

3
(e) This section shall not apply to any fee, including an
4alternative fee, required by the Los Angeles International Airport
5to be collected by a rental company pursuant to section 50474.22.

end insert
6begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 50474.22 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
7to read:end insert

begin insert
8

begin insert50474.22.end insert  

(a) For purposes of this article, “customer facility
9charge” means any fee, including an alternative fee, required by
10the Los Angeles International Airport to be collected by a rental
11company from a renter for any of the following purposes:

12
(1) To finance, design, construct, or otherwise improve
13consolidated airport vehicle rental facilities.

14
(2) To finance, design, construct, operate, maintain, or otherwise
15improve common-use transportation systems that move passengers
16between airport terminals and those consolidated vehicle rental
17facilities, and acquire vehicles for use in that system.

18
(3) To finance, design, construct, or otherwise improve terminal
19modifications solely to accommodate and provide customer access
20to common-use transportation systems. The fees designated as a
21customer facility charge shall not otherwise be used to pay for
22terminal expansion, gate expansion, runway expansion, changes
23in hours of operation, or changes in the number of flights arriving
24or departing from the airport.

25
(b) The aggregate amount to be collected shall not exceed the
26reasonable costs, as determined by an audit by an independent
27auditor paid for by the airport, to finance, design, construct,
28operate, maintain, or otherwise improve, as applicable, those
29facilities, systems, and modifications. The auditor shall
30independently examine and substantiate the necessity for, and the
31amount of, the customer facility charge, including whether the
32airport’s actual or projected costs are supported and justified,
33any steps the airport may take to limit costs, potential alternatives
34for meeting the airport’s revenue needs other than the collection
35of the fee, and whether and to what extent rental companies or
36other businesses or individuals using the facility or common-use
37transportation system may pay for the costs associated with these
38facilities and systems apart from the fee from rental customers, or
39whether the airport did not comply with any provision of this
40section. Copies of the audit shall be provided to the Assembly and
P49   1Senate Committees on Judiciary, the Assembly Committee on
2Transportation, and the Senate Committee on Transportation and
3Housing and shall be posted on the airport’s Internet Web site. In
4the case of a customer facility charge for a common-use
5transportation system, the audit also shall consider the reasonable
6costs of providing the transit system or busing network pursuant
7to paragraph (1) of subdivision (a). Any audit required by this
8subdivision may be included as a part of an audit of an airport’s
9finances.

10
(c) The authorization under to this section for an airport to
11impose a customer facility charge shall become inoperative when
12bonds, capital contributions, availability payment contracts, lease
13agreements, or other forms for financing are paid or reimbursed.

14
(d) This section shall not apply to any fee, including an
15alternative fee, required by an airport other than the Los Angeles
16International Airport to be collected by a rental company from a
17renter.

end insert
18begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 50474.3 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
19read:end insert

begin insert
20

begin insert50474.3.end insert  

(a) A customer facility charge, as defined in section
2150474.21, may be collected by a rental company under the
22following circumstances:

23
(1) Collection of the fee by the rental company is required by
24an airport operated by a city, a county, a city and county, a joint
25powers authority, a special district, or the San Diego County
26Regional Airport Authority formed pursuant to Division 17
27(commencing with Section 170000) of the Public Utilities Code.

28
(2) The fee is calculated on a per contract basis or as provided
29in subdivision (b).

30
(3) The fee is a user fee, not a tax imposed upon real property
31or an incident of property ownership under Article XIII D of the
32California Constitution.

33
(4) Except as otherwise provided in paragraph (5), the fee shall
34be ten dollars ($10) per contract or the amount provided in
35subdivision (b).

36
(5) The fee for a consolidated rental vehicle facility shall be
37collected only from customers of on-airport rental vehicle
38companies. If the fee imposed by the airport is for both a
39consolidated rental vehicle facility and a common-use
40transportation system, the fee collected from customers of
P50   1on-airport rental vehicle companies shall be ten dollars ($10) or
2the amount provided in subdivision (b), but the fee imposed on
3customers of off-airport rental vehicle companies who are
4transported on the common-use transportation system is only that
5amount that is proportionate to the costs of the common-use
6transportation system. The fee is uniformly applied to each class
7of on-airport or off-airport customers, provided that the airport
8requires off-airport customers to use the common-use
9transportation system. For purposes of this paragraph, “on-airport
10rental vehicle company” means a rental company operating under
11an airport property lease or an airport concession or license
12agreement whose customers use or will use the consolidated rental
13vehicle facility and the fee as to those customers is a user fee
14described in paragraph (3).

15
(6) Revenues collected from the fee do not exceed the reasonable
16costs of financing, designing, and constructing the facility and
17financing, designing, constructing, and operating any common-use
18transportation system, or acquiring vehicles for use in that system,
19and are not used for any other purpose.

20
(7) The fee is separately identified on the rental agreement.

21
(8) This subdivision does not apply to fees which are governed
22by Section 50474.1 or Section 57.5 of the San Diego Unified Port
23District Act (Chapter 67 of the First Extraordinary Session of the
24Statutes of 1962).

25
(b) Any airport may require rental companies to collect an
26alternative customer facility charge, as defined in Section
2750474.21, under the following conditions:

28
(1) The airport first conducts a publicly noticed hearing
29pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with
30Section 54950) of Part 1 of Division 2) to review the costs of
31financing the design and construction of a consolidated rental
32vehicle facility and the design, construction, and operation of any
33common-use transportation system in which all of the following
34occur:

35
(A) The airport establishes the amount of revenue necessary to
36finance the reasonable costs of designing and constructing a
37consolidated rental vehicle facility and to design, construct, and
38operate any common-use transportation system, or acquire vehicles
39for use in that system, based on evidence presented during the
40hearing.

P51   1
(B) The airport finds, based on evidence presented during the
2hearing, that the fee authorized in subdivision (a) will not generate
3sufficient revenue to finance the reasonable costs of designing and
4constructing a consolidated rental vehicle facility and of designing,
5constructing, and operating any common-use transportation
6system, or acquire vehicles for use in that system.

7
(C) 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
(D) 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 companies or other businesses
16or individuals using the facility or common-use transportation
17system will pay for the costs associated with these facilities and
18systems apart from the fee collected from rental customers.

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

22
(3) 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
(A) Commencing January 1, 2011, the amount of the fee may
26not exceed six dollars ($6) per day.

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

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

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

34
(E) 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
38authorized to continue collecting that fee until the fee authorization
39becomes inoperative pursuant to subdivision (c) of Section
4050474.21.

P52   1
(4) For any airport seeking to require rental companies to
2collect an alternative customer facility charge pursuant to this
3subdivision the following provisions apply:

4
(A) The airport shall provide reports on an annual basis to the
5Senate and Assembly Committees on Judiciary detailing all of the
6following:

7
(i) The total amount of the customer facility charge collected.

8
(ii) How the funds are being spent.

9
(iii) The amount of and reason for any changes in the airport’s
10budget or financial needs for the facility or common-use
11transportation system.

12
(B) (i) The airport shall complete an independent audit as
13required by subdivision (b) of Section 50474.21 prior to the initial
14collection of the customer facility charge. Copies of the audit shall
15be provided to the Assembly and Senate Committees on Judiciary,
16the Assembly Committee on Transportation, and the Senate
17Committee on Transportation and Housing and shall be posted
18on the airport’s Internet Web site.

19
(ii) Prior to any increase pursuant to subdivision (b), the airport
20shall update the information provided in the initial collection audit
21completed pursuant to clause (i). Copies of the updated audit shall
22be provided to the Assembly and Senate Committees on Judiciary,
23the Assembly Committee on Transportation, and the Senate
24Committee on Transportation and Housing, and shall be posted
25on the airport’s Internet Web site.

26
(iii) An audit shall be completed every three years after initial
27collection if the customer facility charge is collected for the
28purpose of operating a common-use transportation system or to
29acquire vehicles for use in the system pursuant to paragraph (2)
30of subdivision (a) of Section 50474.21. A regularly conducted audit
31of airport finances that includes the customer facility charge
32information, that satisfies the requirements of subdivision (b) of
33Section 50474.21, and is produced in accordance with the
34generally accepted accounting principles of the Government
35Accounting Standards Board, shall satisfy the requirements of this
36clause. This obligation shall continue until the fee authorization
37becomes inoperative pursuant to subdivision (c) of Section
3850474.21. The information reported pursuant to this clause shall
39be compiled into one document, shall be provided to the Assembly
40and Senate Committees on Judiciary, the Assembly Committee on
P53   1Transportation, and the Senate Committee on Transportation and
2Housing and shall be posted on the airport’s Internet Web site
3accessible to the public. The information reported shall be
4contained within one easily accessible page contained within the
5airport’s Internet Web site.

6
(iv) This section shall not be construed to require an airport to
7audit a common-use transportation system not financed by a
8customer facility charge and used for the purposes permitted
9pursuant to paragraph (2) of subdivision (a) of Section 50474.21.

10
(v) The airport shall post on the airport’s Internet Web site
11copies of the completed audits required by this subparagraph for
12a period of six years following the audit’s completion.

13
(C) Use of proceeds of any bonds backed by alternative customer
14facility charges shall be limited to construction and design of the
15consolidated rental vehicle facility, terminal modifications, and
16operating costs of the common-use transportation system, as
17specified in Section 50474.21.

18
(c) Notwithstanding any other provision of law, including, but
19not limited to, Part 1 (commencing with Section 6001) to Part 1.7
20(commencing with Section 7280), inclusive, of Division 2 of the
21Revenue and Taxation Code, the fees collected pursuant to this
22section, or another law whereby a local agency operating an
23airport requires a rental car company to collect a facility financing
24fee from its customers, are not subject to sales, use, or transaction
25taxes.

end insert
26begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 50474.4 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
27to read:end insert

begin insert
28

begin insert50474.4.end insert  

(a) A customer facility charge, as defined in section
2950474.22, may be collected by a rental company under the
30following circumstances:

31
(1) Collection of the fee by the rental company is required by
32Los Angeles International Airport .

33
(2) The fee is calculated on a per contract basis or as provided
34in subdivision (b).

35
(3) The fee is a user fee, not a tax imposed upon real property
36or an incident of property ownership under Article XIII D of the
37California Constitution.

38
(4) Except as otherwise provided in paragraph (5), the fee shall
39be ten dollars ($10) per contract or the amount provided in
40subdivision (b).

P54   1
(5) The fee for a consolidated rental vehicle facility shall be
2collected only from customers of on-airport rental vehicle
3companies. If the fee imposed by the airport is for both a
4consolidated rental vehicle facility and a common-use
5transportation system, the fee collected from customers of
6on-airport rental vehicle companies shall be ten dollars ($10) or
7the amount provided in subdivision (b), but the fee imposed on
8customers of off-airport rental vehicle companies who are
9transported on the common-use transportation system is only that
10amount that is proportionate to the costs of the common-use
11transportation system. The fee is uniformly applied to each class
12of on-airport or off-airport customers, provided that the airport
13requires off-airport customers to use the common-use
14transportation system. For purposes of this paragraph, “on-airport
15rental vehicle company” means a rental company operating under
16an airport property lease or an airport concession or license
17agreement whose customers use or will use the consolidated rental
18vehicle facility and the fee as to those customers is a user fee
19described in paragraph (3).

20
(6) Revenues collected from the fee do not exceed the reasonable
21costs of financing, designing, constructing, operating, or improving
22as applicable, a consolidated rental car facility, any common-use
23transportation system, and terminal modifications, and are not
24used for any other purpose.

25
(7) The fee is separately identified on the rental agreement.

26
(b) The Los Angeles International Airport may require rental
27companies to collect an alternative customer facility charge, as
28defined in Section 50474.22, under the following conditions:

29
(1) The airport first conducts a publicly noticed hearing
30pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with
31Section 54950) of Part 1 of Division 2) to review the costs to
32finance, design, construct, maintain, or otherwise improve, as
33applicable, a consolidated rental vehicle facility, any common-use
34transportation system, and terminal modifications in which all of
35the following occur:

36
(A) The airport establishes the amount of revenue reasonably
37necessary to finance the design, construction, operation,
38maintenance, or other improvement, as applicable, of a
39consolidated rental vehicle facility, any common-use transportation
P55   1system, and terminal modifications based on evidence presented
2during the hearing.

3
(B) The airport finds, based on evidence presented during the
4hearing, that the fee authorized in subdivision (a) will not generate
5sufficient revenue to finance the design, construction, operation,
6maintenance, or other improvement, as applicable, of a
7consolidated rental vehicle facility, any common-use transportation
8system, and terminal modifications.

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

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

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

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

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

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

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

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

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

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

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

36
(E) An airport subject to this paragraph shall initiate the process
37for obtaining the authority to require or increase the alternative
38fee no later than January 1, 2018. An airport that obtains the
39authority to require or increase an alternative fee shall be
40authorized to continue collecting that fee until the fee authorization
P56   1becomes inoperative pursuant to subdivision (c) of Section
250474.22.

3
(4) For an airport seeking to require rental companies to collect
4an alternative customer facility charge pursuant to this subdivision,
5the following provisions apply:

6
(A) The airport shall provide reports on an annual basis to the
7Senate and Assembly Committees on Judiciary detailing all of the
8following:

9
(i) The total amount of the customer facility charge collected.

10
(ii) How the funds are being spent.

11
(iii) The amount of and reason for any changes in the airport’s
12budget or financial needs for the facility or common-use
13transportation system.

14
(B) (i) The airport shall complete an independent audit as
15required by subdivision (b) of Section 50474.22 prior to the initial
16collection of the customer facility charge. Copies of the audit shall
17be provided to the Assembly and Senate Committees on Judiciary,
18the Assembly Committee on Transportation, and the Senate
19Committee on Transportation and Housing and shall be posted
20on the airport’s Internet Web site.

21
(ii) Prior to any increase pursuant to subdivision (b), the airport
22shall update the information provided in the initial collection audit
23completed pursuant to clause (i). Copies of the updated 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
27on the airport’s Internet Web site.

28
(iii) An audit shall be completed every three years after initial
29collection if the customer facility charge is collected for the
30purpose of operating a common-use transportation system or to
31acquire vehicles for use in the system pursuant to paragraph (2)
32of subdivision (a) of Section 50474.22. A regularly conducted audit
33of airport finances that includes the customer facility charge
34information, that satisfies the requirements of subdivision (b) of
35Section 50474.22, and is produced in accordance with the
36generally accepted accounting principles of the Government
37Accounting Standards Board, shall satisfy the requirements of this
38clause. This obligation shall continue until the fee authorization
39becomes inoperative pursuant to subdivision (c) of Section
4050474.22. The information reported pursuant to this clause shall
P57   1be compiled into one document, shall be provided to the Assembly
2and Senate Committees on Judiciary, the Assembly Committee on
3Transportation, and the Senate Committee on Transportation and
4Housing and shall be posted on the airport’s Internet Web site
5accessible to the public. The information reported shall be
6contained within one easily accessible page contained within the
7airport’s Internet Web site.

8
(iv) This section shall not be construed to require an airport to
9audit a common-use transportation system not financed by a
10customer facility charge and used for the purposes permitted
11pursuant to paragraph (2) of subdivision (a) of Section 50474.22.

12
(v) The airport shall post on the airport’s Internet Web site
13copies of the completed audits required by this subparagraph for
14a period of six years following the audit’s completion.

15
(C) Use of proceeds of any bonds backed by alternative customer
16facility charges shall be limited to the purposes specified in Section
1750474.22.

18
(c) Notwithstanding any other provision of law, including, but
19not limited to, Part 1 (commencing with Section 6001) to Part 1.7
20(commencing with Section 7280), inclusive, of Division 2 of the
21Revenue and Taxation Code, the fees collected pursuant to this
22section, or another law whereby a local agency operating an
23airport requires a rental car company to collect a facility financing
24fee from its customers, are not subject to sales, use, or transaction
25taxes.

end insert
begin delete

  

  

26

SECTION 1.  

Section 1936 of the Civil Code is amended to
27read:

28

1936.  

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

30(1) “Rental company” means a person or entity in the business
31of renting passenger vehicles to the public.

32(2) “Renter” means any person in a manner obligated under a
33contract for the lease or hire of a passenger vehicle from a rental
34company for a period of less than 30 days.

35(3) “Additional mandatory charges” means any separately stated
36charges that the rental car company requires the renter to pay to
37hire or lease the vehicle for the period of time to which the rental
38rate applies, which are imposed by a governmental entity and
39specifically relate to the operation of a rental car business,
40including, but not limited to, a customer facility charge, airport
P58   1concession fee, tourism commission assessment, vehicle license
2recovery fee, or other government imposed taxes or fees.

3(4) “Airport concession fee” means a charge collected by a
4rental company from a renter that is the renter’s proportionate
5share of the amount paid by the rental company to the owner or
6operator of an airport for the right or privilege of conducting a
7vehicle rental business on the airport’s premises.

8(5) “Authorized driver” means all of the following:

9(A) The renter.

10(B) The renter’s spouse if that person is a licensed driver and
11satisfies the rental company’s minimum age requirement.

12(C) The renter’s employer or coworker if he or she is engaged
13in business activity with the renter, is a licensed driver, and satisfies
14the rental company’s minimum age requirement.

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

17(6) (A) “Customer facility charge” means any fee, including
18an alternative fee, required by an airport to be collected by a rental
19company from a renter for any of the following purposes:

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

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

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

29(B) The aggregate amount to be collected shall not exceed the
30reasonable costs, as determined by an audit, by an independent
31auditor, paid for by the airport, to finance, design, and construct
32those facilities. The auditor shall independently examine and
33substantiate the necessity for and the amount of the customer
34facility charge, including whether the airport’s actual or projected
35costs are supported and justified, any steps the airport may take to
36limit costs, potential alternatives for meeting the airport’s revenue
37needs other than the collection of the fee, and whether and to what
38extent car rental companies or other businesses or individuals using
39the facility or common-use transportation system may pay for the
40costs associated with these facilities and systems other than the
P59   1fee from rental customers, or whether the airport did not comply
2with any provision of this subparagraph. Copies of the audit shall
3be provided to the Assembly and Senate Committees on Judiciary,
4the Assembly Committee on Transportation, and the Senate
5Committee on Transportation and Housing and shall be posted on
6the airport’s Internet Web site. In the case of a customer facility
7charge for a common-use transportation system, the audit also
8shall consider the reasonable costs of providing the transit system
9or busing network pursuant to clause (ii) of subparagraph (A). Any
10audit required by this subparagraph may be included as a part of
11an audit of an airport’s finances. Notwithstanding clause (iii) of
12subparagraph (A), the fees designated as a customer facility charge
13shall not be used to pay for terminal expansion, gate expansion,
14runway expansion, changes in hours of operation, or changes in
15the number of flights arriving or departing from the airport.

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

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

26(7) “Damage waiver” means a rental company’s agreement not
27to hold a renter liable for all or any portion of any damage or loss
28 related to the rented vehicle, any loss of use of the rented vehicle,
29or any storage, impound, towing, or administrative charges.

30(8) “Electronic surveillance technology” means a technological
31method or system used to observe, monitor, or collect information,
32including telematics, Global Positioning System (GPS), wireless
33technology, or location-based technologies. “Electronic
34surveillance technology” does not include event data recorders
35(EDR), sensing and diagnostic modules (SDM), or other systems
36that are used either:

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

P60   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(9) “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(10) “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(11) “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 subdivision (s) is present at
31the lot where the renter takes possession of the car, to receive any
32change in the rental agreement from the renter.

33(12) “Passenger vehicle” means a passenger vehicle as defined
34in Section 465 of the Vehicle Code.

35(13) “Quote” means an estimated cost of rental provided by a
36rental company or a third party to a potential customer by
37telephone, in-person, computer-transmission, or other means, that
38is based on information provided by the potential customer and
39used to generate an estimated cost of rental, including, but not
40limited to, potential dates of rental, locations, or classes of car.

P61   1(14) “Tourism commission assessment” means the charge
2collected by a rental company from a renter that has been
3established by the California Travel and Tourism Commission
4pursuant to Section 13995.65 of the Government Code.

5(15) “Vehicle license fee” means the tax imposed pursuant to
6the Vehicle License Fee Law (Part 5 (commencing with Section
710701) of Division 2 of the Revenue and Taxation Code).

8(16) “Vehicle registration fee” means any fee imposed pursuant
9to any provision of Chapter 6 (commencing with Section 9101)
10of Division 3 of the Vehicle Code.

11(17) “Vehicle license recovery fee” means a charge that seeks
12to recover the amount of any vehicle license fee and vehicle
13registration fee paid by a rental company for the particular class
14of vehicle being rented.

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.

P62   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,
25which 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
P63   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
P64   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
P65   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
P66   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


31(A) When the above notice is printed in the rental contract or
32holder in which the contract is placed, the following shall be printed
33immediately following the notice:


35“The cost of an optional damage waiver is $____ for every (day
36or week).”
37


38(B) When the above notice appears on a sign, the following
39shall appear immediately adjacent to the notice:


P67   1“The cost of an optional damage waiver is $____ to $____ for
2every (day or week), depending upon the vehicle rented.”
3


4(h) Notwithstanding any other provision of law, a rental
5company may sell a damage waiver subject to the following rate
6limitations for each full or partial 24-hour rental day for the damage
7waiver:

8(1) For rental vehicles that the rental company designates as an
9“economy car,” “compact car,” or another term having similar
10meaning to the two smallest body-size categories of vehicles
11established by the Association of Car Rental Industry Systems
12Standards for North America, as of January 1, 2014, when offered
13for rental, the rate shall not exceed eleven dollars ($11).

14(2) For rental vehicles that the rental company designates as an
15“intermediate car,” “standard car,” or “full-size car,” or another
16term having similar meaning to the next three body-size categories
17of vehicles established by the Association of Car Rental Industry
18Systems Standards for North America, as of January 1, 2014, and
19that are also either vehicles of the next model-year, or not older
20than the previous year’s model, when offered for rental, the rate
21shall not exceed seventeen dollars ($17). For rental vehicles that
22are older than the previous year’s model-year, the rate shall not
23exceed eleven dollars ($11).

24(i) A rental company that disseminates in this state an
25advertisement containing a rental rate shall include in that
26advertisement a clearly readable statement of the charge for a
27damage waiver and a statement that a damage waiver is optional.

28(j) (1) A rental company shall not require the purchase of a
29damage waiver, optional insurance, or another optional good or
30service.

31(2) A rental company shall not engage in any unfair, deceptive,
32or coercive conduct to induce a renter to purchase the damage
33waiver, optional insurance, or another optional good or service,
34including conduct such as, but not limited to, refusing to honor
35the renter’s reservation, limiting the availability of vehicles,
36requiring a deposit, or debiting or blocking the renter’s credit card
37 account for a sum equivalent to a deposit if the renter declines to
38purchase the damage waiver, optional insurance, or another
39optional good or service.

P68   1(k) (1) In the absence of express permission granted by the
2renter subsequent to damage to, or loss of, the vehicle, a rental
3company shall not seek to recover any portion of a claim arising
4out of damage to, or loss of, the rented vehicle by processing a
5credit card charge or causing a debit or block to be placed on the
6renter’s credit card account.

7(2) A rental company shall not engage in any unfair, deceptive,
8or coercive tactics in attempting to recover or in recovering on any
9claim arising out of damage to, or loss of, the rented vehicle.

10(l) (1) A customer facility charge may be collected by a rental
11company under the following circumstances:

12(A) Collection of the fee by the rental company is required by
13an airport operated by a city, a county, a city and county, a joint
14powers authority, a special district, or the San Diego County
15Regional Airport Authority formed pursuant to Division 17
16(commencing with Section 170000) of the Public Utilities Code.

17(B) The fee is calculated on a per contract basis or as provided
18in paragraph (2).

19(C) The fee is a user fee, not a tax imposed upon real property
20or an incident of property ownership under Article XIII D of the
21California Constitution.

22(D) Except as otherwise provided in subparagraph (E), the fee
23shall be ten dollars ($10) per contract or the amount provided in
24paragraph (2).

25(E) The fee for a consolidated rental car facility shall be
26collected only from customers of on-airport rental car companies.
27If the fee imposed by the airport is for both a consolidated rental
28car facility and a common-use transportation system, the fee
29collected from customers of on-airport rental car companies shall
30be ten dollars ($10) or the amount provided in paragraph (2), but
31the fee imposed on customers of off-airport rental car companies
32who are transported on the common-use transportation system is
33proportionate to the costs of the common-use transportation system
34only. The fee is uniformly applied to each class of on-airport or
35off-airport customers, provided that the airport requires off-airport
36customers to use the common-use transportation system. For
37purposes of this subparagraph, “on-airport rental car company”
38means a rental company operating under an airport property lease
39or an airport concession or license agreement whose customers
40use or will use the consolidated rental car facility and the collection
P69   1of the fee as to those customers is consistent with subparagraph
2(C).

3(F) Revenues collected from the fee do not exceed the reasonable
4costs of financing, designing, and constructing the facility and
5financing, designing, constructing, and operating any common-use
6transportation system, or acquiring vehicles for use in that system,
7and shall not be used for any other purpose.

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

9(H) This paragraph does not apply to fees which are governed
10by Section 50474.1 of the Government Code or Section 57.5 of
11the San Diego Unified Port District Act (Chapter 67 of the First
12Extraordinary Session of the Statutes of 1962).

13(I) For any airport seeking to require rental car companies to
14collect an alternative customer facility charge pursuant to paragraph
15(2), the following provisions apply:

16(i) Notwithstanding Section 10231.5 of the Government Code,
17the airport shall provide reports on an annual basis to the Senate
18and Assembly Committees on Judiciary detailing all of the
19following:

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

21(II) How the funds are being spent.

22(III) The amount of and reason for any changes in the airport’s
23budget or financial needs for the facility or common-use
24transportation system.

25(ii) (I) The airport shall complete the audit required by
26subparagraph (B) of paragraph (6) of subdivision (a) prior to the
27initial 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 and Housing, and shall be posted on the airport’s
40Internet Web site.

P70   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 in the system pursuant to clause (ii) of
5subparagraph (A) of paragraph (6) of subdivision (a). A regularly
6conducted audit of airport finances that includes the customer
7facility charge information, that satisfies the requirements of
8subparagraph (B) of paragraph (6) 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 (6) 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
20accessible 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 (6) 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 (6) 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
P71   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.

P72   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 (6) 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.

19(m) (1) When providing a quote, or imposing charges for a
20rental, the rental company may separately state the rental rate,
21additional mandatory charges, if any, and a mileage charge, if any,
22that a renter must pay to hire or lease the vehicle for the period of
23time to which the rental rate applies. A rental company shall not
24charge in addition to the rental rate, additional mandatory charges,
25or a mileage charge, as those may be applicable, any other fee that
26is required to be paid by the renter as a condition of hiring or
27leasing the vehicle.

28(2) If additional mandatory charges are imposed, the rental
29company shall do each of the following:

30(A) At the time the quote is given, provide the person receiving
31the quote with a good faith estimate of the rental rate and all
32additional mandatory charges, as well as the total charges for the
33entire rental. The total charges, if provided on an Internet Web site
34page, shall be displayed in a typeface at least as large as any rental
35rate disclosed on that page and shall be provided on a page that
36the person receiving the quote may reach by following links
37through no more than two Internet Web site pages, including the
38page on which the rental rate is first provided. The good faith
39estimate may exclude mileage charges and charges for optional
P73   1items that cannot be determined prior to completing the reservation
2based upon the information provided by the person.

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

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

19(3) In addition to the rental rate, taxes, additional mandatory
20charges, if any, and mileage charges, if any, a rental company may
21charge for an item or service provided in connection with a
22particular rental transaction if the renter could have avoided
23incurring the charge by choosing not to obtain or utilize the
24optional item or service. Items and services for which the rental
25company may impose an additional charge include, but are not
26limited to, optional insurance and accessories requested by the
27renter, service charges incident to the renter’s optional return of
28the vehicle to a location other than the location where the vehicle
29was hired or leased, and charges for refueling the vehicle at the
30conclusion of the rental transaction in the event the renter did not
31return the vehicle with as much fuel as was in the fuel tank at the
32beginning of the rental. A rental company also may impose an
33additional charge based on reasonable age criteria established by
34the rental company.

35(4) A rental company shall not charge a fee for authorized
36drivers in addition to the rental charge for an individual renter.

37(5) If a rental company states a rental rate in print advertisement
38or in a telephonic, in-person, or computer-transmitted quotation,
39the rental company shall disclose clearly in that advertisement or
40quotation the terms of mileage conditions relating to the advertised
P74   1or quoted rental rate, including, but not limited to, to the extent
2applicable, the amount of mileage and gas charges, the number of
3miles for which no charges will be imposed, and a description of
4geographic driving limitations within the United States and Canada.

5(6) All rate advertisements shall include the following
6disclaimer, which shall be prominently displayed: “Additional
7mandatory charges may be imposed, including, but not limited to,
8a customer facility charge, airport concession fee, tourism
9commission assessment, vehicle license recovery fee, or other
10government imposed taxes or fees. For more information, including
11an estimate of your total rental cost, visit our Internet Web site at
12[www.____.com].”

13(7) If a rental company delivers a vehicle to a renter at a location
14other than the location where the rental company normally carries
15on its business, the rental company shall not charge the renter an
16amount for the rental for the period before the delivery of the
17vehicle. If a rental company picks up a rented vehicle from a renter
18at a location other than the location where the rental company
19normally carries on its business, the rental company shall not
20charge the renter an amount for the rental for the period after the
21renter notifies the rental company to pick up the vehicle.

22(8) Except as otherwise permitted pursuant to the customer
23facility charge, a rental company shall not separately charge, in
24addition to the rental rate, a fee for transporting the renter to a
25location where the rented vehicle will be delivered to the renter.

26(n) A rental company shall not use, access, or obtain any
27information relating to the renter’s use of the rental vehicle that
28was obtained using electronic surveillance technology, except in
29the following circumstances:

30(1) (A) When the equipment is used by the rental company
31only for the purpose of locating a stolen, abandoned, or missing
32rental vehicle after one of the following:

33(i) The renter or law enforcement has informed the rental
34company that the vehicle is missing or has been stolen or
35abandoned.

36(ii) The rental vehicle has not been returned following three
37calendar days after the contracted return date, or by three calendar
38days following the end of an extension of that return date.

39(iii) The rental company discovers the rental vehicle has been
40stolen or abandoned, and, if stolen, it shall report the vehicle stolen
P75   1to law enforcement by filing a stolen vehicle report, unless law
2enforcement has already informed the rental company that the
3vehicle is missing or has been stolen or abandoned.

4(B) If electronic surveillance technology is activated pursuant
5to subparagraph (A), a rental company shall maintain a record, in
6either electronic or written form, of information relevant to the
7activation of that technology. That information shall include the
8rental agreement, including the return date, and the date and time
9the electronic surveillance technology was activated. The record
10shall also include, if relevant, a record of written or other
11communication with the renter, including communications
12regarding extensions of the rental, police reports, or other written
13communication with law enforcement officials. The record shall
14be maintained for a period of at least 12 months from the time the
15record is created and shall be made available upon the renter’s
16request. The rental company shall maintain and furnish explanatory
17codes necessary to read the record. A rental company shall not be
18required to maintain a record if electronic surveillance technology
19is activated to recover a rental vehicle that is stolen or missing at
20a time other than during a rental period.

21(2) In response to a specific request from law enforcement
22pursuant to a subpoena or search warrant.

23(3) This subdivision does not prohibit a rental company from
24equipping rental vehicles with GPS-based technology that provides
25navigation assistance to the occupants of the rental vehicle, 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 for the purposes of discovering or repairing
29a defect in the technology and the information may then be used
30only for that purpose.

31(4) This subdivision does not prohibit a rental company from
32equipping rental vehicles with electronic surveillance technology
33that allows for the remote locking or unlocking of the vehicle at
34the request of the renter, if the rental company does not use, access,
35or obtain information relating to the renter’s use of the rental
36vehicle that was obtained using that technology, except as
37necessary to lock or unlock the vehicle.

38(5) This subdivision does not prohibit a rental company from
39equipping rental vehicles with electronic surveillance technology
40that allows the company to provide roadside assistance, such as
P76   1towing, flat tire, or fuel services, at the request of the renter, if the
2rental company does not use, access, or obtain information relating
3to the renter’s use of the rental vehicle that was obtained using
4that technology except as necessary to provide the requested
5roadside assistance.

6(6) This subdivision does not prohibit a rental company from
7obtaining, accessing, or using information from electronic
8surveillance technology for the sole purpose of determining the
9date and time the vehicle is returned to the rental company, and
10the total mileage driven and the vehicle fuel level of the returned
11vehicle. This paragraph, however, shall apply only after the renter
12has returned the vehicle to the rental company, and the information
13shall only be used for the purpose described in this paragraph.

14(o) A rental company shall not use electronic surveillance
15technology to track a renter in order to impose fines or surcharges
16relating to the renter’s use of the rental vehicle.

17(p) A renter may bring an action against a rental company for
18the recovery of damages and appropriate equitable relief for a
19violation of this section. The prevailing party shall be entitled to
20recover reasonable attorney’s fees and costs.

21(q) A rental company that brings an action against a renter for
22loss due to theft of the vehicle shall bring the action in the county
23in which the renter resides or, if the renter is not a resident of this
24state, in the jurisdiction in which the renter resides.

25(r) A waiver of any of the provisions of this section shall be
26void and unenforceable as contrary to public policy.

27(s) (1) A rental company’s disclosure requirements shall be
28satisfied for renters who are enrolled in the rental company’s
29membership program if all of the following conditions are met:

30(A) Prior to the enrollee’s first rental as a participant in the
31program, the renter receives, in writing, the following:

32(i) All of the disclosures required by paragraph (1) of subdivision
33(g), including the terms and conditions of the rental agreement
34then in effect.

35(ii) An Internet Web site address, as well as a contact number
36or address, where the enrollee can learn of changes to the rental
37agreement or to the laws of this state governing rental agreements
38since the effective date of the rental company’s most recent
39restatement of the rental agreement and distribution of that
40restatement to its members.

P77   1(B) At the commencement of each rental period, the renter is
2provided, on the rental record or the folder in which it is inserted,
3with a printed notice stating that he or she had either previously
4selected or declined an optional damage waiver and that the renter
5has the right to change preferences.

6(C) At the commencement of each rental period, the rental
7company provides, on the rearview mirror, a hanger on which a
8statement is printed, in a box, in at least 12-point boldface type,
9notifying the renter that the collision damage waiver offered by
10the rental company may be duplicative of coverage that the
11customer maintains under his or her own policy of motor vehicle
12insurance. If it is not feasible to hang the statement from the
13rearview mirror, it shall be hung from the steering wheel.

14The hanger shall provide the renter a box to initial if he or she
15(not his or her employer) has previously accepted or declined the
16collision damage waiver and that he or she now wishes to change
17his or her decision to accept or decline the collision damage waiver,
18as follows:
19


20“If I previously accepted the collision damage waiver, I now
21decline it.
22


23

24If I previously declined the collision damage waiver, I now
25accept it.”
26


27The hanger shall also provide a box for the enrollee to indicate
28whether this change applies to this rental transaction only or to all
29future rental transactions. The hanger shall also notify the renter
30that he or she may make that change, prior to leaving the lot, by
31returning the form to an employee designated to receive the form
32who is present at the lot where the renter takes possession of the
33car, to receive any change in the rental agreement from the renter.

34(2) (A) This subdivision is not effective unless the employee
35designated pursuant to subparagraph (E) of paragraph (9) of
36subdivision (a) is actually present at the required location.

37(B) This subdivision does not relieve the rental company from
38the disclosures required to be made within the text of a contract
39or holder in which the contract is placed; in or on an advertisement
P78   1containing a rental rate; or in a telephonic, in-person, or
2computer-transmitted quotation or reservation.

3(t) The amendments made to this section during the 2001-02
4Regular Session of the Legislature do not affect litigation pending
5on or before January 1, 2003, alleging a violation of Section 22325
6of the Business and Professions Code as it read at the time the
7action was commenced.

8(u) (1) When a rental company enters into a rental agreement
9in the state for the rental of a vehicle to any renter who is not a
10resident of this country and, as part of, or associated with, the rental
11agreement, the renter purchases liability insurance, as defined in
12subdivision (b) of Section 1758.85 of the Insurance Code, from
13the rental company in its capacity as a rental car agent for an
14authorized insurer, the rental company shall be authorized to accept,
15and, if served as set forth in this subdivision, shall accept, service
16of a summons and complaint and any other required documents
17against the foreign renter for any accident or collision resulting
18from the operation of the rental vehicle within the state during the
19rental period. If the rental company has a registered agent for
20service of process on file with the Secretary of State, process shall
21be served on the rental company’s registered agent, either by
22first-class mail, return receipt requested, or by personal service.

23(2) Within 30 days of acceptance of service of process, the rental
24company shall provide a copy of the summons and complaint and
25any other required documents served in accordance with this
26subdivision to the foreign renter by first-class mail, return receipt
27requested.

28(3) Any plaintiff, or his or her representative, who elects to serve
29the foreign renter by delivering a copy of the summons and
30complaint and any other required documents to the rental company
31pursuant to paragraph (1) shall agree to limit his or her recovery
32against the foreign renter and the rental company to the limits of
33the protection extended by the liability insurance.

34(4) Notwithstanding the requirements of Sections 17450 to
3517456, inclusive, of the Vehicle Code, service of process in
36compliance with paragraph (1) shall be deemed valid and effective
37service.

38(5) Notwithstanding any other provision of law, the requirement
39that the rental company accept service of process pursuant to
P79   1paragraph (1) shall not create any duty, obligation, or agency
2relationship other than that provided in paragraph (1).

end delete


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