BILL NUMBER: SB 1907 CHAPTERED BILL TEXT CHAPTER 889 FILED WITH SECRETARY OF STATE SEPTEMBER 28, 1998 APPROVED BY GOVERNOR SEPTEMBER 26, 1998 PASSED THE SENATE AUGUST 26, 1998 PASSED THE ASSEMBLY AUGUST 20, 1998 AMENDED IN ASSEMBLY AUGUST 17, 1998 AMENDED IN ASSEMBLY JULY 9, 1998 AMENDED IN ASSEMBLY JUNE 17, 1998 AMENDED IN SENATE APRIL 13, 1998 INTRODUCED BY Senators Burton and Peace FEBRUARY 19, 1998 An act to amend Section 50474 of, and to add Section 50474.1 to, the Government Code, and to add Section 57.5 to the San Diego Unified Port District Act (Chapter 67 of the Statutes of 1962, First Extraordinary Session), relating to airports. LEGISLATIVE COUNSEL'S DIGEST SB 1907, Burton. Airports. (1) Existing law authorizes a local agency to perform various activities, including the exaction of charges, fees, and tolls, in connection with the erection or maintenance of airports and facilities that it may operate. This bill would additionally authorize a local agency to perform those activities in connection with the improvement or expansion of those airports or facilities. The bill would also provide that an airport operated by a city and county may require a rental car company to collect a fee from its customers on behalf of the airport for the use of an airport-mandated common use busing system or light rail transit system operated for the movement of passengers between the terminal and a consolidated on-airport rental car facility. (2) Existing law, the San Diego Unified Port District Act, provides for the establishment of the San Diego Unified Port District and specifies its authority and powers. This bill would specify certain conditions that would apply to a fee that the district requires any transportation vendor conducting business on district tidelands, including the airport, to collect from its customers to finance a district parking structure and would specify further conditions if the vendor is a rental car agency. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 50474 of the Government Code is amended to read: 50474. In connection with the erection, improvement, expansion, or maintenance of such airports or facilities, a local agency may: (a) Regulate the receipt, deposit, and removal, and the embarkation or debarkation of passengers or property to and from such landing places or moorage. (b) Exact charges, fees, and tolls, and enforce liens for their payment. (c) Lease or assign for operation any space and any necessary or useful appurtenances, appliances, or other conveniences. (d) Own and operate aircraft. (e) Employ pilots. (f) Regulate the use of the airport and facilities and other property or means of transportation within or over the airport. (g) Perform any duties necessary or convenient for the regulation of air traffic. (h) Enter into contracts or otherwise cooperate with the federal government or other public or private agencies. (i) Exercise powers necessary or convenient in the promotion of aeronautics and commerce and navigation by air. SEC. 2. Section 50474.1 is added to the Government Code, to read: 50474.1. (a) An airport operated by a city and county may require a rental car company, in writing, to collect a fee from its customers on behalf of the airport for the use of an airport-mandated common use busing system or light rail transit system operated for the movement of passengers between the terminal and a consolidated on-airport rental car facility. If a rental car company is required pursuant to this section to collect a fee, the following conditions shall apply: (1) The fees shall be calculated on a per contract basis. (2) All fees collected for this purpose constitute debts owed to the airport by the collecting party. The debts are due and payable to the airport quarterly or at any other interval the airport may establish to facilitate collection and insure payment. (3) The fee is a user fee, not a tax. (4) Revenues collected from the fee may not exceed the reasonable costs of providing the busing and light rail transit service and may not be used for any other purpose. (b) Notwithstanding any other provision of law, including, but not limited to, Section 1936 of the Civil Code, a rental car company that is required to collect fees under this section shall do all of the following: (1) Collect the fee from those of its customers subject to the fee as required in subdivision (a). (2) Clearly disclose the existence of the fee in any radio, television, or print advertisement that states a rental rate applicable to an airport at which the fee is to be imposed, and the amount of the fee at the airport where it is imposed, or a range of fees if the fee is imposed at more than one airport. (3) Clearly disclose the existence of the fee in a telephonic, in-person, or computer-transmitted quotation that states a rental rate applicable to an airport at which the fee is to be imposed and the amount of the fee at the airport where it is imposed. (4) Separately identify the fee on its rental agreement. SEC. 3. Section 57.5 is added to the San Diego Unified Port District Act (Chapter 67 of the Statutes of 1962, First Extraordinary Session), to read: Sec. 57.5. (a) If the district requires any transportation vendor conducting business on district tidelands, including San Diego International Airport, Lindbergh Field, or the airport, in writing, to collect a fee from its customers on behalf of the district for financing a parking structure that is located on district-owned property and adjacent to and intended principally to serve a convention center, all of the following shall apply: (1) The fees shall be calculated on a per transaction basis. (2) All fees collected for this purpose constitute debts owed to the district by the collecting party. The debts are due and payable to the district quarterly or at any other interval the district may establish to facilitate collection and ensure payment. (3) The fee is a transaction fee, not a tax. (4) Revenues collected from the fee may not exceed the reasonable costs of financing the construction of the parking structure and may not be used for any other purpose. (5) For purposes of this section, a rental car company shall be deemed to be conducting business on district tidelands if it has a business location on district tidelands or it picks up customers at a location on district tidelands. (b) If the vendor required to collect a fee pursuant to subdivision (a) is a rental car company, then, notwithstanding any other provision of law, including, but not limited to, Section 1936 of the Civil Code, the rental car company shall do all of the following: (1) Collect the fee only as permitted by this section. (2) Clearly disclose the existence of the fee in any radio, television, or print advertisement that states a rental rate applicable to the location at which the fee is to be imposed, and the amount of the fee at the location where it is imposed, or a range of fees if the fee is imposed at more than one location. (3) Clearly disclose the existence of the fee in a telephonic, in-person, or computer-transmitted quotation that states a rental rate applicable to a location at which the fee is to be imposed and the amount of the fee at the location where it is imposed. (4) Separately identify the fee on its rental agreement. (c) If a rental car company conducting business on district tidelands operates a facility not located on district tidelands, then, the rental car company shall be subject to all provisions of subdivisions (a) and (b), but shall collect the fee only from those customers of that facility who do either of the following: (1) Are picked up from a location on district tidelands, including the airport, and are transported to the rental car company's business facility via a courtesy ground transportation vehicle for the purpose of entering into a car rental agreement or securing a rental vehicle. (2) Enter into a car rental agreement with the rental car company within 24 hours of arrival at the airport and rental car arrangements or reservations were made using a telephone located at an airport information board by such customers. (d) In the event that the Federal Aviation Administration makes a determination that the provisions of this section are in conflict with federal law requiring a nexus to airport operations, the provisions of this section shall be inoperative. SEC. 4. If any section of this act, or the applicability thereof to any person or circumstances, is for any reason held invalid, the validity of the remainder of the act, or the application of that provision to other persons or circumstances, shall not be affected thereby. The Legislature hereby declares that it would have passed this act, and each section thereof, irrespective of the fact that one or more sections or the application thereof to any person or circumstance, be held invalid.