BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2189
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          ASSEMBLY THIRD READING
          AB 2189 (Skinner)
          As Amended  April 16, 2012
          Majority vote 

           TRANSPORTATION      13-0                                        
           
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          |Ayes:|Bonnie Lowenthal,         |     |                          |
          |     |Jeffries, Achadjian,      |     |                          |
          |     |Blumenfield, Bonilla,     |     |                          |
          |     |Buchanan, Eng, Carter,    |     |                          |
          |     |Galgiani, Miller, Norby,  |     |                          |
          |     |Portantino, Solorio       |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Authorizes an alternative procedure for renting 
          vehicles that allows vehicle rental agencies to verify driver's 
          license information electronically from remote locations via 
          information kiosks.  

           EXISTING LAW  prohibits a person from renting a motor vehicle to 
          another unless the person to whom the vehicle is rented is a 
          validly licensed driver, as specified, and the person renting to 
          that driver has inspected the person's driver's license and 
          compared the signature on the license with the signature of the 
          driver written in his or her presence.  

           FISCAL EFFECT  :  Unknown.  This bill is keyed non-fiscal by the 
          Legislative Counsel.  

           COMMENTS  :  Currently, a vehicle rental agency must follow 
          security procedures that help ensure that the vehicle renter is 
          a valid, licensed driver.  Further, as an added check, the 
          rental agency is required to compare the person's driver's 
          license signature with that of the person renting the vehicle.  
          This bill would allow a rental agency to approve a vehicle under 
          the current terms but also provide for an alternative procedure 
          for renting vehicles by allowing driver information to be 
          verified electronically.  

          The Hertz Corporation (Hertz), writing in support of this bill, 
          contends that current law requiring  a valid identification card 
          to be presented at the time of the transaction and verified via 








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          visual comparison of signatures is outdated and was implemented 
          in 1994, before photographs became standard on driver's 
          licenses.  That law requires that the rental agent be physically 
          in the presence of the customer and visually compare the 
          signature on the license with that of the signature on the 
          contract.  Hertz further indicates that "electronic innovations 
          such as kiosks where rental car transactions can occur while 
          retaining protections in existing law provide a face-to-face 
          interaction between rental agent and customer while not 
          requiring the physical presence of a rental agent.  These new 
          kiosks will scan an ID, charge a credit card, provide 
          face-to-face assistance from a live operator, and are equipped 
          to check a driver's license.  In addition, we currently request 
          that a customer hold up the driver's license to the camera to 
          compare the photo with the customer."  

          According to the author, this bill addresses transactions that 
          are completed through a kiosk by allowing an inspection of a 
          driver's license through electronic means.  "This simple and 
          unobtrusive amendment will keep California current with advances 
          in technology and will allow Hertz to bring the benefits of its 
          innovation to the people of California."  

          Maintaining security - customer convenience:  By allowing a 
          person to rent a vehicle via electronic means has comparisons 
          with interacting with an agent in person.  The advantage that 
          this bill seeks to provide is speed and convenience of the 
          customer in the ability to process a car rental agreement 
          without waiting in line at the car rental delivery location.  
          Hertz contends that security protections from renters using 
          false identification to rent vehicles is basically the same 
          whether or not the renter is standing face-to-face either in 
          front of the rental agent or in front of the kiosk camera.  A 
          car renter can easily provide a signature before a rental agent, 
          as required under current law that resembles the signature that 
          is signed on the false driver's license.  This bill will have no 
          effect on that type of illegal activity.  According to Hertz, 
          the kiosk cameras and electronic conveyance of driver's license 
          information provides similar protections as if the renter were 
          processing the rental agreement in person, it just makes renting 
          more convenient.  
           

          Analysis Prepared by  :   Ed Imai / TRANS. / (916) 319-2093 








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