BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 817|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
CONSENT
Bill No: AB 817
Author: Gatto (D)
Amended: 5/12/11 in Assembly
Vote: 21
SENATE JUDICIARY COMMITTEE : 4-0, 06/21/11
AYES: Evans, Blakeslee, Corbett, Leno
NO VOTE RECORDED: Harman
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 79-0, 05/31/11 - See last page for vote
SUBJECT : Vehicle rental contracts
SOURCE : Author
DIGEST : This bill requires the California Law Revision
Commission (CLRC) to study whether the laws regulating
rental car companies and their customers would benefit from
greater clarity and concision and report its findings and
recommendations to the Legislature by December 31, 2012.
ANALYSIS : Existing law regulates contracts between a
rental car company and its customers, including regulation
of vehicle rental charges and fees, disclosures,
advertising, quotes, and apportionment of responsibility
and liability. (Civ. Code Secs. 1936, 1936.01, 1936.015,
1936.05, 1936.1.)
CONTINUED
AB 817
Page
2
This bill requires the CLRC to study whether the laws
regulating rental car companies and their consumers would
benefit from greater clarity and concision.
This bill requires the CLRC to report its findings and
recommendations to the Legislature by December 31, 2012.
Background
Created in 1953, the California Law Revision Commission
identifies deficiencies in existing California law and
recommends needed reforms to the Legislature. Recent
Commission studies have reviewed trial court restructuring
and the laws relating to mechanics liens and common
interest developments. Currently, the Legislature has
authorized the Commission to study 22 specific topics.
This bill requires the CLRC to study whether the laws
regulating rental car companies and their consumers would
benefit from greater clarity and concision and report its
findings and recommendations to the Legislature by December
31, 2012.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 7/8/11)
Avis Budget Group
Hertz Corporation
ARGUMENTS IN SUPPORT : According to the author:
Civil Code Section 1936, relating to rental car
transactions, was first enacted in 1988. It relates
to 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 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.
CONTINUED
AB 817
Page
3
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.
Avis Budget Group and the Hertz Corporation write that ". .
. it would be beneficial to have the California Law
Revision Commission review these code sections and
recommend any changes that would benefit from greater
clarity and concision."
ASSEMBLY FLOOR : 79-0, 05/31/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor,
Mendoza, Miller, Mitchell, Monning, Morrell, Nestande,
Nielsen, Norby, Olsen, Pan, Perea, V. Manuel P�rez,
Portantino, Silva, Skinner, Smyth, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Williams, Yamada,
John A. P�rez
NO VOTE RECORDED: Gorell
RJG:nl 7/11/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED
AB 817
Page
4
CONTINUED