BILL ANALYSIS �
AB 817
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Date of Hearing: May 10, 2011
ASSEMBLY COMMITTEE ON JUDICIARY
Mike Feuer, Chair
AB 817 (Gatto) - As Amended: April 7, 2011
As Proposed to be Amended
SUBJECT : VEHICLE RENTALS
KEY ISSUE : SHOULD THE LAW REVISION COMMISSION BE DIRECTED TO
STUDY AND RECOMMEND REORGANIZATION AND CLARIFICATION OF THE
STATUTES RELATED TO CAR RENTAL COMPANIES?
FISCAL EFFECT : As currently in print this bill is keyed
non-fiscal.
SYNOPSIS
This non-controversial measure would direct the California Law
Revision Commission to evaluate and make recommendations for
non-substantive reorganization and revision of statutes relating
to car rental companies for the purpose of clarity and
concision.
SUMMARY : Seeks to improve vehicle rental statutes.
Specifically, this bill directs the California Law Revision
Commission to study and report its findings and recommendations
to the Legislature on or before December 31, 2012 whether the
laws regulating vehicle rental companies and their consumers
would benefit from greater clarity and concision, including but
not limited to Civil Code sections 1936, 1936.01, 1936.015,
1936.05, and 1936.1.
EXISTING LAW generally regulates certain provisions of vehicle
rental charges and fees and fee-collection, advertising, quotes,
and contracts. (Civil Code sections 1936, 1936.01, 1936.015,
1936.05, and 1936.1.)
COMMENTS : According to the author, existing statutes regarding
car rental companies would benefit by reorganization and
revision:
Civil Code Section 1936, relating to rental car
transactions, was first enacted in 1988. It relates to
AB 817
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liability, advertising, disclosure, damage waivers,
specific fees not included in base prices, electronic
surveillance, authorized drivers, special requirements for
the rental of 15-passenger vans, and other provisions
related to rental car transactions. Since 1988, section
1988, section 1936 has been amended numerous times and
further, sections 1936.01, 1936.015, 1936.05 and 1936.1
have all been enacted which includes many provisions that
are redundant to section 1936. The cumulative effect of
these amendments to section 1936 along with the adoption of
the other sections has resulted in a number of redundancies
and a set of laws that is confusingly organized and is
excessively and unnecessarily long. This has led to a lack
of clarity for rental car companies and their customers
when they are faced with a question that pertains to these
code sections. Rental company personnel who are involved in
company operations continually seek legal interpretations
of the meanings of current law.
This Bill Would Direct The California Law Revision Commission To
Study And Make Recommendations To the Legislature Regarding
Non-Substantive Reorganization Of The Statutes Regulating Car
Rental Company Obligations and Responsibility. Few areas of
consumer protection have been the subject of more contested
legislation in recent years than the regulation of car rental
companies. Insofar as the statutes would benefit from
clarification and non-substantive reorganization and revision,
the California Law Revision Commission is ideally suited to this
painstaking task, as their outstanding board and staff has
repeatedly demonstrated on similar projects over many years,
ranging from trial court unification to mechanics' liens and
common interest developments, to cite only some recent examples.
Importantly, CLRC recommendations routinely earn the unanimous
respect and approval of stakeholders such that they are
regularly implemented by the Legislature without controversy.
Author's Proposed Amendments. To facilitate review and input
from interested stakeholders, the author proposes to revise the
bill by substituting the following provision for those currently
in the bill:
The California Law Revision Commission shall study and
report its findings and recommendations to the Legislature
on or before December 31, 2012 whether the laws regulating
vehicle rental companies and their consumers would benefit
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from greater clarity and concision, including but not
limited to Civil Code sections 1936, 1936.01, 1936.015,
1936.05, and 1936.1.
REGISTERED SUPPORT / OPPOSITION :
Support
AvisBudget Group
Hertz Corporation
Opposition
None on file
Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334