BILL NUMBER: AB 2761 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 28, 2004
AMENDED IN ASSEMBLY MAY 12, 2004
AMENDED IN ASSEMBLY APRIL 27, 2004
AMENDED IN ASSEMBLY APRIL 1, 2004
INTRODUCED BY Assembly Member Leno
FEBRUARY 20, 2004
An act to amend Section 1936 of add
Section 1936.05 to the Civil Code, relating to vehicle rental
agreements.
LEGISLATIVE COUNSEL'S DIGEST
AB 2761, as amended, Leno. Vehicle rental agreements.
Existing law regulates various terms and conditions of vehicle
rental agreements for the lease or hire of a passenger vehicle from a
rental company for less than a period of 30 days, as specified.
This bill would authorize a rental car company to separately
quote, and separately impose, additional charges for the rental in
connection with the qualified business rental of a
passenger vehicle to a business renter of a business program sponsor,
as defined, under the sponsor's business program.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1936 of the Civil Code, as amended by
SECTION 1. Section 1936.05 is added to the Civil Code, to read:
1936.05. (a) For purposes of this section:
(1) "Additional charges" means charges other than a per period
base rental rate established by the business program.
(2) "Business program" means (A) a contract between a rental
company and a business program sponsor that has established the per
period base rental rate, and any other material terms relating to
additional charges, on which the rental company will rent passenger
vehicles to persons authorized by the sponsor, or (B) a plan,
program, or other arrangement established by a rental company at the
request of, or with the consent of, a business program sponsor under
which the rental company offers to rent passenger vehicles to persons
authorized by the sponsor at per period base rental rates, and any
other material terms relating to additional charges, that are not the
same as those generally offered by the rental company to the public.
(3) "Business program sponsor" means a legal entity, other than a
natural person, that is a corporation, limited liability company, or
partnership.
(4) "Business renter" means, for any business program sponsor, a
person who is authorized by the sponsor, through the use of an
identifying number or program name or code, to enter into a rental
contract under the sponsor's business program. In no case shall the
term "business renter" include a person renting as: (A) a
non-employee member of a not-for-profit organization, (B) the
purchaser of a voucher or other prepaid rental arrangement from a
person, including a tour operator, engaged in the business of
reselling those vouchers or prepaid rental arrangements to the
general public, (C) an individual whose car rental is eligible for
reimbursement in whole or in part as a result of the person being
insured or provided coverage under a policy of insurance issued by an
insurance company, or (D) an individual whose car rental is eligible
for reimbursement in whole or in part as a result of the person
purchasing passenger vehicle repair services from a person licensed
to perform such services.
(5) "Qualified business rental" under a business program
established for a business program sponsor by a rental company means
the rental of a passenger vehicle under the business program if
either (A) in the 12-month period ending on the date of the rental or
in the calendar year immediately preceding the year in which the
rental occurs, the rentals under all business programs established by
the rental company for the business program sponsor and its
affiliates produced gross rental revenues in excess of ten thousand
dollars ($10,000) or (B) the rental company in good faith estimates
that rentals under all the business programs established by the
rental company for the business program sponsor and its affiliates
will produce gross rental revenues in excess of ten thousand dollars
($10,000) in the 12-month period commencing with the date of the
rental or in the calendar year in which the rental occurs. The
rental company has the burden of establishing by objectively
verifiable evidence that the rental was a qualified business rental.
(6) "Quote" means telephonic, in-person, and computer-transmitted
quotations.
(b) Notwithstanding any provision to the contrary contained in
paragraph (1) of subdivision (n) of Section 1936, a rental car
company may, in connection with the qualified business rental of a
passenger vehicle to a business renter of a business program sponsor
under the sponsor's business program, do both of the following:
(1) Separately quote additional charges for the rental if, at the
time the quote is provided, the person receiving the quote is also
provided a good faith estimate of the total of all the charges for
the entire rental. The estimate may exclude mileage charges and
charges for optional items and services that cannot be determined
prior to completing the reservation based upon the information
provided by the renter.
(2) Separately impose additional charges for the rental, if the
rental contract, or another document provided to the business renter
at the time and place the rental commences, clearly and conspicuously
discloses the total of all the charges for the entire rental,
exclusive of charges that cannot be determined at the time the rental
commences.
(c) Nothing in this section shall be interpreted to mean that a
rental company is not required to comply with the requirements of
paragraphs (2) to (6), inclusive, of subdivision (n) of Section 1936.
_____________________________________ All matter omitted
in this version of the bill appears in the bill as amended in the
Assembly, May 12, 2004 (JR 11) ____________________________________