Amended in Senate July 6, 2015

Amended in Assembly April 30, 2015

Amended in Assembly April 15, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 675


Introduced by Assembly Member Alejo

February 25, 2015


An act to amend Section 1936.05 of, to amend and repeal Section 1936 of, and to repeal Sections 1936.01 and 1936.015 of, the Civil Code, relating to rental vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 675, as amended, Alejo. Rental vehicles: disclosures: obligations.

begin delete

(1) Existing law governs contracts between rental car companies and their customers in connection with the rental of a passenger vehicle. Existing law requires a rental company that offers or provides a damage waiver to orally disclose to all renters, except participants in the rental company’s membership program, that the damage waiver may be duplicative of coverage that the customer maintains under his or her own policy of motor vehicle insurance, and requires that the contract include that information in a clear and conspicuous written disclosure.

end delete
begin delete

This bill would specify that the oral disclosure only applies if a damage waiver is offered orally at the rental counter, at the time of the offer, and, if a damage waiver may be obtained online, would require the clear and conspicuous written disclosure to also be included on the Internet Web site page on which an estimate of total charges is provided for any reservation made through the rental company’s online reservation system.

end delete
begin delete

(2)

end delete

begin insert(1)end insert Existing lawbegin insert governs contracts between rental car companies and their customers in connection with the rental of a passenger vehicle andend insert requires a rental company to only advertise a rental rate that includes the entire amount except taxes, and any applicable customer facility charge or mileage charge that a renter must pay to hire or lease the vehicle for the period of time to which the rental rate applies. Existing law prohibits a rental company from charging any fee that is required to be paid by the renter as a condition of hiring or leasing the vehicle, other than the rental rate, taxes, or any applicable customer facility charge, airport concession fee, tourism commission assessment, or mileage charge.

This bill would repeal that advertisement requirement andbegin delete thatend deletebegin insert modify theend insert prohibition against charging any otherbegin delete requiredend delete fees.

begin delete

(3)

end delete

begin insert(2)end insert Existing law authorizes, when providing a quote, or imposing charges for a rental, a rental company to separately state the rental rate, taxes, and any applicable customer facility charge, airport concession fee, tourism commission assessment, mileage charge that a renter must pay to hire or lease the vehicle for the period of time to which the rental rate applies.

This bill would revise and recast that law to provide that a rental company is authorized to separately state any additional mandatory charges,begin delete defined to mean any charges imposed by a governmental entity that a renter must pay to hire or lease the vehicle for the period of time to which the rental rate applies, including, but not limited to, a customer facility charge, airport concession fee, tourism commission assessment, vehicle license recovery fee, or other government imposed taxes or fees.end deletebegin insert as defined.end insert This bill would further define the term vehicle license recovery fee to mean the amount of vehicle license fee and vehicle registration fee, as those terms are defined, paid by the rental company for the particular class of vehicle being rented.

begin delete

(4)

end delete

begin insert(3)end insert Existing law requires a rental company, if customer facility charges, airport concession fees, or tourism commission assessments are imposed, to take specified actions, including, when a quote is given, providing the person receiving the quote with a good faith estimate of the rental rate, taxes, customer facility charge, if any, airport concession fee, if any, and tourism commission assessment, if any, as well as the total charges for the entire rental.

This bill would require a rental company to take those specified actions when any additional mandatory charge is imposed.

begin delete

(5)

end delete

begin insert(4)end insert Existing law requires, when a rental rate is stated in an advertisement, in connection with a car rental at an airport where a customer facility charge is imposed, the rental company to clearly disclose the existence and amount of the customer facility charge, as specified. Existing law requires, if any person or entity other than a rental car company, advertises a rental rate for a car rental at an airport where a customer facility charge is imposed, that person or entity to clearly disclose the existence and amount of the charge, as specified.

This bill would repeal these disclosure requirements.

begin delete

(6) Existing law prohibits a rental company from using, accessing, or obtaining information relating to the renter’s use of the rental vehicle obtained using electronic surveillance technology, except in specified circumstances.

end delete
begin delete

This bill would instead allow a rental company to access or obtain information relating to the renter’s use of the rental vehicle obtained using electronic surveillance technology, and also revise and expand the circumstances when information from electronic surveillance technology can be used by a rental company, as specified.

end delete
begin delete

(7) Existing law provides that a rental company’s disclosure requirements for renters enrolled in the company’s membership program are satisfied if specified conditions are met, including a requirement that the rental company provide a specified notice on a hanger, as provided. Existing law specifies that this provision is effective only if a designated employee is actually present at the required location, and specifies that the provision does not relieve the rental company from the disclosures required to be made within the text of a contract or holder in which the contract is placed, in or on an advertisement containing a rate, or in a telephonic, in-person, or computer-transmitted quotation or reservation.

end delete
begin delete

This bill would eliminate that requirement that the rental company provide a specified notice on a hanger. This bill would eliminate the requirement that a designated employee be present. This bill would expand the circumstances in which a rental company’s disclosure requirements for renters enrolled in the company’s membership program are relieved when those specified conditions are met.

end delete
begin delete

(8)

end delete

begin insert(5)end insert Existing law, until January 1, 2020, requires a rental company or its registered agent to accept service of a summons and complaint and any other required documents against a renter who resides out of this country for an accident or collision resulting from the operation of the rental vehicle in this state, if the rental company provides liability insurance coverage as part of, or associated with, the rental agreement. Existing law requires any plaintiff who elects to serve the foreign renter by delivering the summons and complaint and any other required documents to the rental company pursuant to these provisions to agree to limit his or her recovery against the foreign renter and rental company to the limits of the protection of the liability insurance.

This bill would remove the repeal of these requirements on January 1, 2020, thus making these requirements apply indefinitely.

begin delete

(9)

end delete

begin insert(6)end insert This bill would also make other technical, nonsubstantive changes by reorganizing several provisions and repealing obsolete provisions.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

begin delete
P4    1

SECTION 1.  

Section 1936 of the Civil Code, as amended by
2Section 5.2 of Chapter 913 of the Statutes of 2014, is amended to
3read:

4

1936.  

(a) For the purpose of this section, the following
5definitions shall apply:

6(1) “Rental company” means a person or entity in the business
7of renting passenger vehicles to the public.

8(2) “Renter” means any person in a manner obligated under a
9contract for the lease or hire of a passenger vehicle from a rental
10company for a period of less than 30 days.

11(3) “Additional mandatory charges” means any charges imposed
12by a governmental entity that a renter must pay to hire or lease the
13vehicle for the period of time to which the rental rate applies,
14including, but not limited to, a customer facility charge, airport
15concession fee, tourism commission assessment, vehicle license
16recovery fee, or other government imposed taxes or fees.

17(4) “Airport concession fee” means a charge collected by a
18rental company from a renter that is the renter’s proportionate
P5    1share of the amount paid by the rental company to the owner or
2operator of an airport for the right or privilege of conducting a
3vehicle rental business on the airport’s premises.

4(5) “Authorized driver” means all of the following:

5(A) The renter.

6(B) The renter’s spouse if that person is a licensed driver and
7satisfies the rental company’s minimum age requirement.

8(C) The renter’s employer or coworker if he or she is engaged
9in business activity with the renter, is a licensed driver, and satisfies
10the rental company’s minimum age requirement.

11(D) A person expressly listed by the rental company on that
12renter’s contract as an authorized driver.

13(6) “Customer facility charge” means any fee, including an
14alternative fee, required by an airport to be collected by a rental
15company from a renter for any of the following purposes:

16(i) To finance, design, and construct consolidated airport car
17rental facilities.

18(ii) To finance, design, construct, and operate common-use
19transportation systems that move passengers between airport
20terminals and those consolidated car rental facilities, and acquire
21vehicles for use in that system.

22(iii) To finance, design, and construct terminal modifications
23solely to accommodate and provide customer access to
24common-use transportation systems.

25(7) “Damage waiver” means a rental company’s agreement not
26to hold a renter liable for all or any portion of any damage or loss
27related to the rented vehicle, any loss of use of the rented vehicle,
28or any storage, impound, towing, or administrative charges.

29(8) “Electronic surveillance technology” means a technological
30method or system used to observe, monitor, or collect information,
31including telematics, Global Positioning System (GPS), wireless
32technology, or location-based technologies. “Electronic
33surveillance technology” does not include event data recorders
34(EDR), sensing and diagnostic modules (SDM), or other systems
35that are used either:

36(A) For the purpose of identifying, diagnosing, or monitoring
37functions related to the potential need to repair, service, or perform
38maintenance on the rental vehicle.

39(B) As part of the vehicle’s airbag sensing and diagnostic system
40in order to capture safety systems-related data for retrieval after a
P6    1crash has occurred or in the event that the collision sensors are
2activated to prepare the decisionmaking computer to make the
3determination to deploy or not to deploy the airbag.

4(9) “Estimated time for replacement” means the number of hours
5of labor, or fraction thereof, needed to replace damaged vehicle
6parts as set forth in collision damage estimating guides generally
7used in the vehicle repair business and commonly known as “crash
8books.”

9(10) “Estimated time for repair” means a good faith estimate of
10the reasonable number of hours of labor, or fraction thereof, needed
11to repair damaged vehicle parts.

12(11) “Membership program” means a service offered by a rental
13company that permits customers to bypass the rental counter and
14go directly to the car previously reserved. A membership program
15shall meet all of the following requirements:

16(A) The renter initiates enrollment by completing an application
17on which the renter can specify a preference for type of vehicle
18and acceptance or declination of optional services.

19(B) The rental company fully discloses, prior to the enrollee’s
20first rental as a participant in the program, all terms and conditions
21of the rental agreement as well as all required disclosures.

22(C) The renter may terminate enrollment at any time.

23(D) The rental company fully explains to the renter that
24designated preferences, as well as acceptance or declination of
25optional services, may be changed by the renter at any time for
26the next and future rentals.

27(12) “Passenger vehicle” means a passenger vehicle as defined
28in Section 465 of the Vehicle Code.

29(13) “Quote” means an estimated cost of rental provided by a
30rental company or a third party to a potential customer by
31telephone, in-person, computer-transmission, or other means, that
32is based on information provided by the potential customer and
33used to generate an estimated cost of rental, including, but not
34limited to, any of the following: potential dates of rental, locations,
35or classes of car.

36(14) “Tourism commission assessment” means the charge
37collected by a rental company from a renter that has been
38established by the California Travel and Tourism Commission
39pursuant to Section 13995.65 of the Government Code.

P7    1(15) “Vehicle license fee” means the tax imposed pursuant to
2the Vehicle License Fee Law (Part 5 (commencing with Section
310701) of Division 2 of the Revenue and Taxation Code).

4(16) “Vehicle registration fee” means any fee imposed pursuant
5to any provision of Chapter 6 (commencing with Section 9101)
6of Division 3 of the Vehicle Code.

7(17) “Vehicle license recovery fee” means a charge that seeks
8to recover the amount of any vehicle license fee and vehicle
9registration fee paid by a rental company for the particular class
10of vehicle being rented.

11(b) Except as limited by subdivision (c), a rental company and
12a renter may agree that the renter will be responsible for no more
13than all of the following:

14(1) Physical or mechanical damage to the rented vehicle up to
15its fair market value, as determined in the customary market for
16the sale of that vehicle, regardless of the cause of the damage.

17(2) Loss due to theft of the rented vehicle up to its fair market
18value, as determined in the customary market for the sale of that
19vehicle, provided that the rental company establishes by clear and
20convincing evidence that the renter or the authorized driver failed
21to exercise ordinary care while in possession of the vehicle. In
22addition, the renter shall be presumed to have no liability for any
23loss due to theft if (A) an authorized driver has possession of the
24ignition key furnished by the rental company or an authorized
25driver establishes that the ignition key furnished by the rental
26company was not in the vehicle at the time of the theft, and (B) an
27authorized driver files an official report of the theft with the police
28or other law enforcement agency within 24 hours of learning of
29the theft and reasonably cooperates with the rental company and
30the police or other law enforcement agency in providing
31information concerning the theft. The presumption set forth in this
32paragraph is a presumption affecting the burden of proof which
33the rental company may rebut by establishing that an authorized
34driver committed, or aided and abetted the commission of, the
35theft.

36(3) Physical damage to the rented vehicle up to its fair market
37value, as determined in the customary market for the sale of that
38vehicle, resulting from vandalism occurring after, or in connection
39with, the theft of the rented vehicle. However, the renter shall have
P8    1no liability for any damage due to vandalism if the renter would
2have no liability for theft pursuant to paragraph (2).

3(4) Physical damage to the rented vehicle up to a total of five
4hundred dollars ($500) resulting from vandalism unrelated to the
5theft of the rented vehicle.

6(5) Actual charges for towing, storage, and impound fees paid
7by the rental company if the renter is liable for damage or loss.

8(6) An administrative charge, which shall include the cost of
9appraisal and all other costs and expenses incident to the damage,
10loss, repair, or replacement of the rented vehicle.

11(c) The total amount of the renter’s liability to the rental
12company resulting from damage to the rented vehicle shall not
13exceed the sum of the following:

14(1) The estimated cost of parts which the rental company would
15have to pay to replace damaged vehicle parts. All discounts and
16price reductions or adjustments that are or will be received by the
17rental company shall be subtracted from the estimate to the extent
18not already incorporated in the estimate, or otherwise promptly
19credited or refunded to the renter.

20(2) The estimated cost of labor to replace damaged vehicle parts,
21which shall not exceed the product of (A) the rate for labor usually
22paid by the rental company to replace vehicle parts of the type that
23were damaged and (B) the estimated time for replacement. All
24discounts and price reductions or adjustments that are or will be
25received by the rental company shall be subtracted from the
26estimate to the extent not already incorporated in the estimate, or
27otherwise promptly credited or refunded to the renter.

28(3) (A) The estimated cost of labor to repair damaged vehicle
29parts, which shall not exceed the lesser of the following:

30(i) The product of the rate for labor usually paid by the rental
31company to repair vehicle parts of the type that were damaged and
32the estimated time for repair.

33(ii) The sum of the estimated labor and parts costs determined
34under paragraphs (1) and (2) to replace the same vehicle parts.

35(B) All discounts and price reductions or adjustments that are
36or will be received by the rental company shall be subtracted from
37the estimate to the extent not already incorporated in the estimate,
38or otherwise promptly credited or refunded to the renter.

P9    1(4) For the purpose of converting the estimated time for repair
2into the same units of time in which the rental rate is expressed, a
3day shall be deemed to consist of eight hours.

4(5) Actual charges for towing, storage, and impound fees paid
5by the rental company.

6(6) The administrative charge described in paragraph (6) of
7subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
8estimated cost for parts and labor is more than one hundred dollars
9($100) up to and including five hundred dollars ($500), (B) one
10hundred dollars ($100) if the total estimated cost for parts and
11labor exceeds five hundred dollars ($500) up to and including one
12thousand five hundred dollars ($1,500), and (C) one hundred fifty
13dollars ($150) if the total estimated cost for parts and labor exceeds
14one thousand five hundred dollars ($1,500). An administrative
15charge shall not be imposed if the total estimated cost of parts and
16labor is one hundred dollars ($100) or less.

17(d) (1) The total amount of an authorized driver’s liability to
18the rental company, if any, for damage occurring during the
19authorized driver’s operation of the rented vehicle shall not exceed
20the amount of the renter’s liability under subdivision (c).

21(2) A rental company shall not recover from the renter or other
22authorized driver an amount exceeding the renter’s liability under
23subdivision (c).

24(3) A claim against a renter resulting from damage or loss,
25excluding loss of use, to a rental vehicle shall be reasonably and
26rationally related to the actual loss incurred. A rental company
27shall mitigate damages where possible and shall not assert or collect
28a claim for physical damage which exceeds the actual costs of the
29repairs performed or the estimated cost of repairs, if the rental
30company chooses not to repair the vehicle, including all discounts
31and price reductions. However, if the vehicle is a total loss vehicle,
32the claim shall not exceed the total loss vehicle value established
33in accordance with procedures that are customarily used by
34insurance companies when paying claims on total loss vehicles,
35less the proceeds from salvaging the vehicle, if those proceeds are
36retained by the rental company.

37(4) If insurance coverage exists under the renter’s applicable
38personal or business insurance policy and the coverage is confirmed
39during regular business hours, the renter may require that the rental
40company submit any claims to the renter’s applicable personal or
P10   1business insurance carrier. The rental company shall not make any
2written or oral representations that it will not present claims or
3negotiate with the renter’s insurance carrier. For purposes of this
4paragraph, confirmation of coverage includes telephone
5confirmation from insurance company representatives during
6regular business hours. Upon request of the renter and after
7confirmation of coverage, the amount of claim shall be resolved
8between the insurance carrier and the rental company. The renter
9shall remain responsible for payment to the rental car company
10for any loss sustained that the renter’s applicable personal or
11business insurance policy does not cover.

12(5) A rental company shall not recover from the renter or other
13authorized driver for an item described in subdivision (b) to the
14extent the rental company obtains recovery from another person.

15(6) This section applies only to the maximum liability of a renter
16or other authorized driver to the rental company resulting from
17damage to the rented vehicle and not to the liability of another
18person.

19(e) (1) Except as provided in subdivision (f), a damage waiver
20shall provide or, if not expressly stated in writing, shall be deemed
21to provide that the renter has no liability for damage, loss, loss of
22use, or a cost or expense incident thereto.

23(2) Except as provided in subdivision (f), every limitation,
24exception, or exclusion to a damage waiver is void and
25unenforceable.

26(f) A rental company may provide in the rental contract that a
27damage waiver does not apply under any of the following
28circumstances:

29(1) Damage or loss results from an authorized driver’s (A)
30intentional, willful, wanton, or reckless conduct, (B) operation of
31the vehicle under the influence of drugs or alcohol in violation of
32Section 23152 of the Vehicle Code, (C) towing or pushing
33anything, or (D) operation of the vehicle on an unpaved road if
34the damage or loss is a direct result of the road or driving
35conditions.

36(2) Damage or loss occurs while the vehicle is (A) used for
37commercial hire, (B) used in connection with conduct that could
38be properly charged as a felony, (C) involved in a speed test or
39contest or in driver training activity, (D) operated by a person other
40than an authorized driver, or (E) operated outside the United States.

P11   1(3) An authorized driver who has (A) provided fraudulent
2information to the rental company, or (B) provided false
3information and the rental company would not have rented the
4vehicle if it had instead received true information.

5(g) (1) A rental company that offers or provides a damage
6waiver for any consideration in addition to the rental rate shall
7clearly and conspicuously disclose the following information in
8the rental contract or holder in which the contract is placed and,
9also, in signs posted at the place, such as the counter, where the
10renter signs the rental contract, and, for renters who are enrolled
11in the rental company’s membership program, in a sign that shall
12be posted in a location clearly visible to those renters as they enter
13the location where their reserved rental cars are parked or near the
14exit of the bus or other conveyance that transports the enrollee to
15a reserved car: (A) the nature of the renter’s liability, such as
16liability for all collision damage regardless of cause, (B) the extent
17of the renter’s liability, such as liability for damage or loss up to
18a specified amount, (C) the renter’s personal insurance policy or
19the credit card used to pay for the car rental transaction may
20provide coverage for all or a portion of the renter’s potential
21liability, (D) the renter should consult with his or her insurer to
22determine the scope of insurance coverage, including the amount
23of the deductible, if any, for which the renter is obligated, (E) the
24renter may purchase an optional damage waiver to cover all
25liability, subject to whatever exceptions the rental company
26expressly lists that are permitted under subdivision (f), and (F) the
27range of charges for the damage waiver.

28(2) In addition to the requirements of paragraph (1), if a damage
29waiver is offered orally at the rental counter, a rental company
30shall orally disclose at the time of the offer, that the damage waiver
31may be duplicative of coverage that the customer maintains under
32his or her own policy of motor vehicle insurance. The renter’s
33receipt of the oral disclosure shall be demonstrated through the
34renter’s acknowledging receipt of the oral disclosure near that part
35of the contract where the renter indicates, by the renter’s own
36initials, his or her acceptance or declination of the damage waiver.
37Adjacent to that same part, the contract also shall state that the
38damage waiver is optional. Further, the contract for these renters,
39 and, if a damage waiver may be obtained online, the Internet Web
40site page on which an estimate of total charges is provided pursuant
P12   1to subparagraph (A) of paragraph (2) of subdivision (m) for any
2reservation made through the rental company’s online reservation
3system, shall include a clear and conspicuous written disclosure
4that the damage waiver may be duplicative of coverage that the
5customer maintains under his or her own policy of motor vehicle
6insurance. No oral disclosure shall be required for renters that are
7participants in the rental company’s membership program.

8(3) The following is an example, for purposes of illustration
9and not limitation, of a notice fulfilling the requirements of
10paragraph (1) for a rental company that imposes liability on the
11renter for collision damage to the full value of the vehicle:
12

13“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
14AND OPTIONAL DAMAGE WAIVER
15

16You are responsible for all collision damage to the rented vehicle
17even if someone else caused it or the cause is unknown. You are
18responsible for the cost of repair up to the value of the vehicle,
19and towing, storage, and impound fees.

20Your own insurance, or the issuer of the credit card you use to
21pay for the car rental transaction, may cover all or part of your
22financial responsibility for the rented vehicle. You should check
23with your insurance company, or credit card issuer, to find out
24about your coverage and the amount of the deductible, if any, for
25which you may be liable.

26Further, if you use a credit card that provides coverage for your
27potential liability, you should check with the issuer to determine
28if you must first exhaust the coverage limits of your own insurance
29before the credit card coverage applies.

30The rental company will not hold you responsible if you buy a
31damage waiver. But a damage waiver will not protect you if (list
32exceptions).”
33


34(A) When the above notice is printed in the rental contract or
35holder in which the contract is placed, the following shall be printed
36immediately following the notice:


38“The cost of an optional damage waiver is $____ for every (day
39or week).”
40


P13   1(B) When the above notice appears on a sign, the following
2shall appear immediately adjacent to the notice:


4“The cost of an optional damage waiver is $____ to $____ for
5every (day or week), depending upon the vehicle rented.”
6


7(h) Notwithstanding any other provision of law, a rental
8company may sell a damage waiver subject to the following rate
9limitations for each full or partial 24-hour rental day for the damage
10waiver:

11(1) For rental vehicles that the rental company designates as an
12“economy car,” “compact car,” or another term having similar
13meaning to the two smallest body-size categories of vehicles
14established by the Association of Car Rental Industry Systems
15Standards for North America, as of January 1, 2014, when offered
16for rental, the rate shall not exceed eleven dollars ($11).

17(2) For rental vehicles that the rental company designates as an
18“intermediate car,” “standard car,” or “full-size car,” or another
19term having similar meaning to the next three body-size categories
20of vehicles established by the Association of Car Rental Industry
21Systems Standards for North America, as of January 1, 2014, and
22that are also either vehicles of the next model-year or not older
23than the previous year’s model, when offered for rental, the rate
24shall not exceed seventeen dollars ($17). For rental vehicles that
25are older than the previous year’s model-year, the rate shall not
26exceed eleven dollars ($11).

27(i) A rental company that disseminates in this state an
28advertisement containing a rental rate shall include in that
29advertisement a clearly readable statement of the charge for a
30damage waiver and a statement that a damage waiver is optional.

31(j) (1) A rental company shall not require the purchase of a
32damage waiver, optional insurance, or another optional good or
33service.

34(2) A rental company shall not engage in any unfair, deceptive,
35or coercive conduct to induce a renter to purchase the damage
36waiver, optional insurance, or another optional good or service,
37including conduct such as, but not limited to, refusing to honor
38the renter’s reservation, limiting the availability of vehicles,
39requiring a deposit, or debiting or blocking the renter’s credit card
40account for a sum equivalent to a deposit if the renter declines to
P14   1purchase the damage waiver, optional insurance, or another
2optional good or service.

3(k) (1) In the absence of express permission granted by the
4renter subsequent to damage to, or loss of, the vehicle, a rental
5company shall not seek to recover any portion of a claim arising
6out of damage to, or loss of, the rented vehicle by processing a
7credit card charge or causing a debit or block to be placed on the
8renter’s credit card account.

9(2) A rental company shall not engage in any unfair, deceptive,
10or coercive tactics in attempting to recover or in recovering on any
11claim arising out of damage to, or loss of, the rented vehicle.

12(l) (1) A customer facility charge may be collected by a rental
13company under the following circumstances:

14(A) Collection of the fee by the rental company is required by
15an airport operated by a city, a county, a city and county, a joint
16powers authority, a special district, or the San Diego County
17Regional Airport Authority formed pursuant to Division 17
18(commencing with Section 170000) of the Public Utilities Code.

19(B) The fee is calculated on a per contract basis or as provided
20in paragraph (2).

21(C) The fee is a user fee, not a tax imposed upon real property
22or an incident of property ownership under Article XIII D of the
23California Constitution.

24(D) Except as otherwise provided in subparagraph (E), the fee
25shall be ten dollars ($10) per contract or the amount provided in
26paragraph (2).

27(E) The fee for a consolidated rental car facility shall be
28collected only from customers of on-airport rental car companies.
29If the fee imposed by the airport is for both a consolidated rental
30car facility and a common-use transportation system, the fee
31collected from customers of on-airport rental car companies shall
32be ten dollars ($10) or the amount provided in paragraph (2), but
33the fee imposed on customers of off-airport rental car companies
34who are transported on the common-use transportation system is
35proportionate to the costs of the common-use transportation system
36only. The fee is uniformly applied to each class of on-airport or
37off-airport customers, provided that the airport requires off-airport
38customers to use the common-use transportation system. For
39purposes of this subparagraph, “on-airport rental car company”
40means a rental company operating under an airport property lease
P15   1or an airport concession or license agreement whose customers
2use or will use the consolidated rental car facility and the collection
3of the fee as to those customers is consistent with subparagraph
4(C).

5(F) Revenues collected from the fee do not exceed the reasonable
6costs of financing, designing, and constructing the facility and
7financing, designing, constructing, and operating any common-use
8 transportation system, or acquiring vehicles for use in that system,
9and shall not be used for any other purpose.

10(G) The fee is separately identified on the rental agreement.

11(H) This paragraph does not apply to fees which are governed
12by Section 50474.1 of the Government Code or Section 57.5 of
13the San Diego Unified Port District Act (Chapter 67 of the First
14Extraordinary Session of the Statutes of 1962).

15(I) (i) The aggregate amount to be collected shall not exceed
16the reasonable costs, as determined by an audit, by an independent
17auditor, paid for by the airport, to finance, design, and construct
18those facilities. The auditor shall independently examine and
19substantiate the necessity for and the amount of the customer
20facility charge, including whether the airport’s actual or projected
21costs are supported and justified, any steps the airport may take to
22limit costs, potential alternatives for meeting the airport’s revenue
23needs other than the collection of the fee, and whether and to what
24extent car rental companies or other businesses or individuals using
25the facility or common-use transportation system may pay for the
26costs associated with these facilities and systems other than the
27fee from rental customers, or whether the airport did not comply
28with any provision of this subclause. Copies of the audit shall be
29provided to the Assembly and Senate Committees on Judiciary,
30the Assembly Committee on Transportation, and the Senate
31Committee on Transportation and Housing and shall be posted on
32the airport’s Internet Web site. In the case of a customer facility
33charge for a common-use transportation system, the audit also
34shall consider the reasonable costs of providing the transit system
35or busing network. Any audit required by this subclause may be
36included as a part of an audit of an airport’s finances.
37Notwithstanding clause (iii) of subparagraph (A) of paragraph (6)
38of subdivision (a), the fees designated as a customer facility charge
39shall not be used to pay for terminal expansion, gate expansion,
P16   1runway expansion, changes in hours of operation, or changes in
2the number of flights arriving or departing from the airport.

3(ii) Except as provided in clause (iii), the authorization given
4pursuant to this section for an airport to impose a customer facility
5charge shall become inoperative when the bonds used for financing
6are paid.

7(iii) If a bond or other form of indebtedness is not used for
8financing, or the bond or other form of indebtedness used for
9financing has been paid, the Oakland International Airport may
10require the collection of a customer facility charge for a period of
11up to 10 years from the imposition of the charge for the purposes
12allowed by, and subject to the conditions imposed by, this section.

13(J) For any airport seeking to require rental car companies to
14collect an alternative customer facility charge pursuant to paragraph
15(2), the following provisions apply:

16(i) Notwithstanding Section 10231.5 of the Government Code,
17the airport shall provide reports on an annual basis to the Senate
18and Assembly Committees on Judiciary detailing all of the
19following:

20(I) The total amount of the customer facility charge collected.

21(II) How the funds are being spent.

22(III) The amount of and reason for any changes in the airport’s
23budget or financial needs for the facility or common-use
24transportation system.

25(IV) Whether airport concession fees authorized by Section
261936.01 have increased since the prior report, if any.

27(ii) (I) The airport shall complete the audit required by clause
28(i) of subclause (I) prior to the initial collection of the customer
29facility charge.

30(II) Notwithstanding Section 10231.5 of the Government Code,
31copies of the audit shall be provided to the Assembly and Senate
32Committees on Judiciary, the Assembly Committee on
33Transportation, and the Senate Committee on Transportation and
34Housing and shall be posted on the airport’s Internet Web site.

35(III) Prior to any increase pursuant to paragraph (2), the airport
36shall update the information provided in the initial collection audit
37pursuant to subclause (I). Notwithstanding Section 10231.5 of the
38Government Code, copies of the updated audit shall be provided
39to the Assembly and Senate Committees on Judiciary, the
40Assembly Committee on Transportation, and the Senate Committee
P17   1on Transportation and Housing, and shall be posted on the airport’s
2Internet Web site.

3(IV) An audit shall be completed every three years after initial
4collection only if the customer facility charge is collected for the
5purpose of operating a common-use transportation system or to
6acquire vehicles for use in the system pursuant to clause (ii) of
7subparagraph (A) of paragraph (6) of subdivision (a). A regularly
8conducted audit of airport finances that includes the customer
9facility charge information, that satisfies the requirements of this
10subdivision, and is produced in accordance with the generally
11accepted accounting principles of the Government Accounting
12Standards Board, shall satisfy the requirements of this subclause.
13This obligation shall continue until the fee authorization becomes
14inoperative pursuant to subclause (II). Notwithstanding Section
1510231.5 of the Government Code, the information reported
16pursuant to this subclause shall be compiled into one document,
17shall be provided to the Assembly and Senate Committees on
18Judiciary, the Assembly Committee on Transportation, and the
19Senate Committee on Transportation and Housing and shall be
20posted on the airport’s Internet Web site accessible to the public.
21The information reported shall be contained within one easily
22accessible page contained within the airport’s Internet Web site.

23(V) This section shall not be construed to require an airport to
24audit a common-use transportation system not financed by a
25customer facility charge and used for the purposes permitted
26pursuant to clause (ii) of subparagraph (A) of paragraph (6) of
27subdivision (a).

28(VI) The airport shall post on the airport’s Internet Web site
29copies of the completed audits required by this clause for a period
30of six years following the audit’s completion.

31(iii) Use of the bonds shall be limited to construction and design
32of the consolidated rental car facility, terminal modifications, and
33operating costs of the common-use transportation system, as
34specified in paragraph (6) of subdivision (a).

35(2) Any airport may require rental car companies to collect an
36alternative customer facility charge under the following conditions:

37(A) The airport first conducts a publicly noticed hearing pursuant
38to the Ralph M. Brown Act (Chapter 9 (commencing with Section
3954950) of Part 1 of Division 2 of Title 5 of the Government Code)
40to review the costs of financing the design and construction of a
P18   1consolidated rental car facility and the design, construction, and
2operation of any common-use transportation system in which all
3of the following occur:

4(i) The airport establishes the amount of revenue necessary to
5finance the reasonable cost to design and construct a consolidated
6rental car facility and to design, construct, and operate any
7common-use transportation system, or acquire vehicles for use in
8that system, based on evidence presented during the hearing.

9(ii) The airport finds, based on evidence presented during the
10hearing, that the fee authorized in paragraph (1) will not generate
11sufficient revenue to finance the reasonable costs to design and
12construct a consolidated rental car facility and to design, construct,
13and operate any common-use transportation system, or acquire
14vehicles for use in that system.

15(iii) The airport finds that the reasonable cost of the project
16requires the additional amount of revenue that would be generated
17by the proposed daily rate, including any rate increase, authorized
18pursuant to this paragraph.

19(iv) The airport outlines each of the following:

20(I) Steps it has taken to limit costs.

21(II) Other potential alternatives for meeting its revenue needs
22other than the collection of the fee.

23(III) The extent to which rental car companies or other
24businesses or individuals using the facility or common-use
25transportation system will pay for the costs associated with these
26facilities and systems other than the fee from rental customers.

27(B) The airport may not require the fee authorized in this
28paragraph to be collected at any time that the fee authorized in
29paragraph (1) of this subdivision is being collected.

30(C) Pursuant to the procedure set forth in this subdivision, the
31fee may be collected at a rate charged on a per-day basis subject
32to the following conditions:

33(i) Commencing January 1, 2011, the amount of the fee may
34not exceed six dollars ($6) per day.

35(ii) Commencing January 1, 2014, the amount of the fee may
36not exceed seven dollars and fifty cents ($7.50) per day.

37(iii) Commencing January 1, 2017, and thereafter, the amount
38of the fee may not exceed nine dollars ($9) per day.

P19   1(iv) At no time shall the fee authorized in this paragraph be
2collected from any customer for more than five days for each
3individual rental car contract.

4(v) An airport subject to this paragraph shall initiate the process
5for obtaining the authority to require or increase the alternative
6fee no later than January 1, 2018. Any airport that obtains the
7authority to require or increase an alternative fee shall be authorized
8to continue collecting that fee until the fee authorization becomes
9inoperative pursuant to subparagraph (C) of paragraph (4) of
10subdivision (a).

11(3) Notwithstanding any other provision of law, including, but
12not limited to, Part 1 (commencing with Section 6001) to Part 1.7
13(commencing with Section 7280), inclusive, of Division 2 of the
14Revenue and Taxation Code, the fees collected pursuant to this
15section, or another law whereby a local agency operating an airport
16requires a rental car company to collect a facility financing fee
17from its customers, are not subject to sales, use, or transaction
18taxes.

19(m) (1) When providing a quote, or imposing charges for a
20rental, the rental company may separately state the rental rate,
21additional mandatory charges, if any, and a mileage charge, if any,
22that a renter must pay to hire or lease the vehicle for the period of
23time to which the rental rate applies.

24(2) If additional mandatory charges are imposed, the rental
25company shall do each of the following:

26(A) At the time the quote is given, provide the person receiving
27the quote with a good faith estimate of the rental rate and all
28additional mandatory charges, as well as the total charges for the
29entire rental. The total charges, if provided on an Internet Web site
30page, shall be displayed in a typeface at least as large as any rental
31rate disclosed on that page and shall be provided on a page that
32the person receiving the quote may reach by following links
33through no more than two Internet Web site pages, including the
34page on which the rental rate is first provided. The good faith
35estimate may exclude mileage charges and charges for optional
36items that cannot be determined prior to completing the reservation
37based upon the information provided by the person.

38(B) At the time and place the rental commences, clearly and
39conspicuously disclose in the rental contract, or that portion of the
40contract that is provided to the renter, the total of the rental rate,
P20   1additional mandatory charges, for the entire rental, exclusive of
2charges that cannot be determined at the time the rental
3commences. Charges imposed pursuant to this subparagraph shall
4be no more than the amount of the quote provided in a confirmed
5reservation, unless the person changes the terms of the rental
6contract subsequent to making the reservation.

7(C) Provide each person, other than those persons within the
8rental company, offering quotes to actual or prospective customers
9access to information about additional mandatory charges, as well
10as access to information about when those charges apply. Any
11person providing quotes to actual or prospective customers for the
12hire or lease of a vehicle from a rental company shall provide the
13quotes in the manner described in subparagraph (A).

14(3) In addition to the rental rate, additional mandatory charges,
15if any, and mileage charges, if any, a rental company may charge
16for an item or service provided in connection with a particular
17rental transaction if the renter could have avoided incurring the
18charge by choosing not to obtain or utilize the optional item or
19service. Items and services for which the rental company may
20impose an additional charge, include, but are not limited to,
21optional insurance and accessories requested by the renter, service
22charges incident to the renter’s optional return of the vehicle to a
23location other than the location where the vehicle was hired or
24leased, and charges for refueling the vehicle at the conclusion of
25the rental transaction in the event the renter did not return the
26vehicle with as much fuel as was in the fuel tank at the beginning
27of the rental. A rental company also may impose an additional
28charge based on reasonable age criteria established by the rental
29company.

30(4) A rental company shall not charge a fee for authorized
31drivers in addition to the rental charge for an individual renter.

32(5) If a rental company states a rental rate in print advertisement
33or in a telephonic, in-person, or computer-transmitted quotation,
34the rental company shall disclose clearly in that advertisement or
35quotation the terms of mileage conditions relating to the advertised
36or quoted rental rate, including, but not limited to, to the extent
37applicable, the amount of mileage and gas charges, the number of
38miles for which no charges will be imposed, and a description of
39geographic driving limitations within the United States and Canada.

P21   1(6) All rate advertisements that include car rentals at airport
2destinations shall clearly and conspicuously include a toll-free
3telephone number whereby a customer can be told the specific
4amount of the customer facility charge to which the customer will
5be obligated.

6(7) If a rental company delivers a vehicle to a renter at a location
7other than the location where the rental company normally carries
8on its business, the rental company shall not charge the renter an
9amount for the rental for the period before the delivery of the
10vehicle. If a rental company picks up a rented vehicle from a renter
11at a location other than the location where the rental company
12normally carries on its business, the rental company shall not
13charge the renter an amount for the rental for the period after the
14renter notifies the rental company to pick up the vehicle.

15(8) Except as otherwise permitted pursuant to the customer
16facility charge, a rental company may not separately charge, in
17addition to the rental rate, a fee for transporting the renter to the
18location where the rented vehicle will be delivered to the renter.

19(n) A rental company shall not use any information relating to
20the renter’s use of the rental vehicle that was obtained using
21electronic surveillance technology, except in the following
22circumstances:

23(1) (A) When the equipment is used by the rental company
24only for the purpose of locating a stolen, abandoned, or missing
25rental vehicle after one of the following:

26(i) The renter or law enforcement has informed the rental
27company that the vehicle is missing or has been stolen or
28abandoned.

29(ii) The rental vehicle has not been returned following three
30days after the contracted return date, or by three days following
31the end of an extension of that return date.

32(iii) The rental company discovers the rental vehicle has been
33stolen or abandoned, and, if stolen, it shall report the vehicle stolen
34to law enforcement by filing a stolen vehicle report, unless law
35enforcement has already informed the rental company that the
36vehicle is missing or has been stolen or abandoned.

37(B) If electronic surveillance technology is activated pursuant
38to subparagraph (A), a rental company shall maintain a record, in
39either electronic or written form, of information relevant to the
40activation of that technology. That information shall include the
P22   1rental agreement, including the return date, and the date and time
2the electronic surveillance technology was activated. The record
3shall also include, if relevant, a record of written or other
4 communication with the renter, including communications
5regarding extensions of the rental, police reports, or other written
6communication with law enforcement officials. The record shall
7be maintained for a period of at least 12 months from the time the
8record is created and shall be made available upon the renter’s
9request. The rental company shall maintain and furnish explanatory
10codes necessary to read the record. A rental company shall not be
11required to maintain a record if electronic surveillance technology
12is activated to recover a rental vehicle that is stolen or missing at
13a time other than during a rental period.

14(2) In response to a specific request from law enforcement
15pursuant to a subpoena or search warrant.

16(3) This subdivision does not prohibit a rental company from
17equipping rental vehicles with GPS-based technology that provides
18navigation assistance to the occupants of the rental vehicle, if the
19rental company does not use information relating to the renter’s
20use of the rental vehicle that was obtained using that technology,
21except for the purposes of providing such navigation assistance or
22discovering or repairing a defect in the technology and the
23information may then be used only for that purpose.

24(4) This subdivision does not prohibit a rental company from
25equipping rental vehicles with electronic surveillance technology
26that allows for the remote locking or unlocking of the vehicle at
27the request of the renter, if the rental company does not use, access,
28or obtain information relating to the renter’s use of the rental
29vehicle that was obtained using that technology, except as
30necessary to lock or unlock the vehicle.

31(5) This subdivision does not prohibit a rental company from
32equipping rental vehicles with electronic surveillance technology
33that allows the company to provide roadside assistance, such as
34towing, flat tire, or fuel services, at the request of the renter, if the
35rental company does not use, access, or obtain information relating
36to the renter’s use of the rental vehicle that was obtained using
37that technology except as necessary to provide the requested
38roadside assistance.

39(6) This subdivision does not prohibit a rental company from
40using information from electronic surveillance technology for the
P23   1purpose of determining the date and time the vehicle is returned
2to the rental company, the return location, the total mileage driven
3and the vehicle fuel level of the returned vehicle. This paragraph,
4however, shall apply only after the renter has returned the vehicle
5to the rental company, or is at one of the rental company’s facilities
6and is in the process of returning the vehicle, and the information
7shall only be used for the purpose described in this paragraph.

8(o) A rental company shall not use electronic surveillance
9technology to track a renter in order to impose fines or surcharges
10relating to the renter’s use of the rental vehicle.

11(p) A renter may bring an action against a rental company for
12the recovery of damages and appropriate equitable relief for a
13violation of this section. The prevailing party shall be entitled to
14recover reasonable attorney’s fees and costs.

15(q) A rental company that brings an action against a renter for
16loss due to theft of the vehicle shall bring the action in the county
17in which the renter resides or, if the renter is not a resident of this
18state, in the jurisdiction in which the renter resides.

19(r) A waiver of any of the provisions of this section shall be
20void and unenforceable as contrary to public policy.

21(s) A rental company’s disclosure requirements shall be satisfied
22for renters who are enrolled in the rental company’s membership
23program if all of the following conditions are met:

24(1) Prior to the enrollee’s first rental as a participant in the
25program, the renter receives, in writing, the following:

26(A) All of the disclosures required by paragraph (1) of
27subdivision (g), including the terms and conditions of the rental
28agreement then in effect.

29(B) An Internet Web site address, as well as a contact number
30or address, where the enrollee can learn of changes to the rental
31agreement or to the laws of this state governing rental agreements
32since the effective date of the rental company’s most recent
33restatement of the rental agreement and distribution of that
34restatement to its members.

35(2) At the commencement of each rental period, the renter is
36provided, on the rental record or the folder in which it is inserted,
37with a printed notice stating that he or she had either previously
38selected or declined an optional damage waiver and that the renter
39has the right to change preferences.

P24   1(t) The amendments made to this section during the 2001-02
2Regular Session of the Legislature do not affect litigation pending
3on or before January 1, 2003, alleging a violation of Section 22325
4of the Business and Professions Code as it read at the time the
5action was commenced.

6(u) (1) When a rental company enters into a rental agreement
7in the state for the rental of a vehicle to any renter who is not a
8resident of this country and, as part of, or associated with, the rental
9agreement, the renter purchases liability insurance, as defined in
10subdivision (b) of Section 1758.85 of the Insurance Code, from
11the rental company in its capacity as a rental car agent for an
12authorized insurer, the rental company shall be authorized to accept,
13and, if served as set forth in this subdivision, shall accept, service
14of a summons and complaint and any other required documents
15against the foreign renter for any accident or collision resulting
16from the operation of the rental vehicle within the state during the
17rental period. If the rental company has a registered agent for
18service of process on file with the Secretary of State, process shall
19be served on the rental company’s registered agent, either by
20first-class mail, return receipt requested, or by personal service.

21(2) Within 30 days of acceptance of service of process, the rental
22company shall provide a copy of the summons and complaint and
23any other required documents served in accordance with this
24subdivision to the foreign renter by first-class mail, return receipt
25requested.

26(3) Any plaintiff, or his or her representative, who elects to serve
27the foreign renter by delivering a copy of the summons and
28complaint and any other required documents to the rental company
29pursuant to paragraph (1) shall agree to limit his or her recovery
30against the foreign renter and the rental company to the limits of
31the protection extended by the liability insurance.

32(4) Notwithstanding the requirements of Sections 17450 to
3317456, inclusive, of the Vehicle Code, service of process in
34compliance with paragraph (1) shall be deemed valid and effective
35service.

36(5) Notwithstanding any other provision of law, the requirement
37that the rental company accept service of process pursuant to
38paragraph (1) shall not create any duty, obligation, or agency
39relationship other than that provided in paragraph (1).

end delete
P25   1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1936 of the end insertbegin insertCivil Codeend insertbegin insert, as amended by
2Section 5.2 of Chapter 913 of the Statutes of 2014, is amended to
3read:end insert

4

1936.  

(a) For the purpose of this section, the following
5definitions shall apply:

6(1) “Rental company” means a person or entity in the business
7of renting passenger vehicles to the public.

8(2) “Renter” means any person in a manner obligated under a
9contract for the lease or hire of a passenger vehicle from a rental
10company for a period of less than 30 days.

begin insert

11(3) “Additional mandatory charges” means any separately
12stated charges that the rental car company requires the renter to
13pay to hire or lease the vehicle for the period of time to which the
14rental rate applies, which are imposed by a governmental entity
15and specifically relate to the operation of a rental car business,
16including, but not limited to, a customer facility charge, airport
17concession fee, tourism commission assessment, vehicle license
18recovery fee, or other government imposed taxes or fees.

end insert
begin insert

19(4) “Airport concession fee” means a charge collected by a
20rental company from a renter that is the renter’s proportionate
21share of the amount paid by the rental company to the owner or
22operator of an airport for the right or privilege of conducting a
23vehicle rental business on the airport’s premises.

end insert
begin delete

24(3)

end delete

25begin insert(5)end insert “Authorized driver” means all of the following:

26(A) The renter.

27(B) The renter’s spouse if that person is a licensed driver and
28satisfies the rental company’s minimum age requirement.

29(C) The renter’s employer or coworker if he or she is engaged
30in business activity with the renter, is a licensed driver, and satisfies
31the rental company’s minimum age requirement.

32(D) A person expressly listed by the rental company on that
33renter’s contract as an authorized driver.

begin delete

34(4)

end delete

35begin insert(6)end insert (A) “Customer facility charge” means any fee, including
36an alternative fee, required by an airport to be collected by a rental
37company from a renter for any of the following purposes:

38(i) To finance, design, and construct consolidated airport car
39rental facilities.

P26   1(ii) To finance, design, construct, and operate common-use
2transportation systems that move passengers between airport
3terminals and those consolidated car rental facilities, and acquire
4vehicles for use in that system.

5(iii) To finance, design, and construct terminal modifications
6solely to accommodate and provide customer access to
7common-use transportation systems.

8(B) The aggregate amount to be collected shall not exceed the
9reasonable costs, as determined by an audit, by an independent
10auditor, paid for by the airport, to finance, design, and construct
11those facilities. The auditor shall independently examine and
12substantiate the necessity for and the amount of the customer
13facility charge, including whether the airport’s actual or projected
14costs are supported and justified, any steps the airport may take to
15limit costs, potential alternatives for meeting the airport’s revenue
16needs other than the collection of the fee, and whether and to what
17extent car rental companies or other businesses or individuals using
18the facility or common-use transportation system may pay for the
19costs associated with these facilities and systems other than the
20fee from rental customers, or whether the airport did not comply
21with any provision of this subparagraph. Copies of the audit shall
22be provided to the Assembly and Senate Committees on Judiciary,
23the Assembly Committee on Transportation, and the Senate
24Committee on Transportation and Housing and shall be posted on
25the airport’s Internet Web site. In the case of a customer facility
26charge for a common-use transportation system, the audit also
27shall consider the reasonable costs of providing the transit system
28or busing network pursuant to clause (ii) of subparagraph (A). Any
29audit required by this subparagraph may be included as a part of
30an audit of an airport’s finances. Notwithstanding clause (iii) of
31subparagraph (A), the fees designated as a customer facility charge
32shall not be used to pay for terminal expansion, gate expansion,
33runway expansion, changes in hours of operation, or changes in
34the number of flights arriving or departing from the airport.

35(C) Except as provided in subparagraph (D), the authorization
36given pursuant to this section for an airport to impose a customer
37facility charge shall become inoperative when the bonds used for
38financing are paid.

39(D) If a bond or other form of indebtedness is not used for
40financing, or the bond or other form of indebtedness used for
P27   1financing has been paid, the Oakland International Airport may
2require the collection of a customer facility charge for a period of
3up to 10 years from the imposition of the charge for the purposes
4allowed by, and subject to the conditions imposed by, this section.

begin delete

5(5)

end delete

6begin insert(7)end insert “Damage waiver” means a rental company’s agreement not
7to hold a renter liable for all or any portion of any damage or loss
8related to the rented vehicle, any loss of use of the rented vehicle,
9or any storage, impound, towing, or administrative charges.

begin delete

10(6)

end delete

11begin insert(8)end insert “Electronic surveillance technology” means a technological
12method or system used to observe, monitor, or collect information,
13including telematics, Global Positioning System (GPS), wireless
14technology, or location-based technologies. “Electronic
15surveillance technology” does not include event data recorders
16(EDR), sensing and diagnostic modules (SDM), or other systems
17that are used either:

18(A) For the purpose of identifying, diagnosing, or monitoring
19functions related to the potential need to repair, service, or perform
20maintenance on the rental vehicle.

21(B) As part of the vehicle’s airbag sensing and diagnostic system
22in order to capture safety systems-related data for retrieval after a
23crash has occurred or in the event that the collision sensors are
24activated to prepare the decisionmaking computer to make the
25determination to deploy or not to deploy the airbag.

begin delete

26(7)

end delete

27begin insert(9)end insert “Estimated time for replacement” means the number of hours
28of labor, or fraction thereof, needed to replace damaged vehicle
29parts as set forth in collision damage estimating guides generally
30used in the vehicle repair business and commonly known as “crash
31books.”

begin delete

32(8)

end delete

33begin insert(10)end insert “Estimated time for repair” means a good faith estimate of
34the reasonable number of hours of labor, or fraction thereof, needed
35to repair damaged vehicle parts.

begin delete

36(9)

end delete

37begin insert(11)end insert “Membership program” means a service offered by a rental
38company that permits customers to bypass the rental counter and
39go directly to the car previously reserved. A membership program
40shall meet all of the following requirements:

P28   1(A) The renter initiates enrollment by completing an application
2on which the renter can specify a preference for type of vehicle
3and acceptance or declination of optional services.

4(B) The rental company fully discloses, prior to the enrollee’s
5first rental as a participant in the program, all terms and conditions
6of the rental agreement as well as all required disclosures.

7(C) The renter may terminate enrollment at any time.

8(D) The rental company fully explains to the renter that
9designated preferences, as well as acceptance or declination of
10optional services, may be changed by the renter at any time for
11the next and future rentals.

12(E) An employee designated to receive the form specified in
13subparagraph (C) of paragraph (1) of subdivision (s) is present at
14the lot where the renter takes possession of the car, to receive any
15change in the rental agreement from the renter.

begin delete

16(10)

end delete

17begin insert(12)end insert “Passenger vehicle” means a passenger vehicle as defined
18in Section 465 of the Vehicle Code.

begin insert

19(13) “Quote” means an estimated cost of rental provided by a
20rental company or a third party to a potential customer by
21telephone, in-person, computer-transmission, or other means, that
22is based on information provided by the potential customer and
23used to generate an estimated cost of rental, including, but not
24limited to, potential dates of rental, locations, or classes of car.

end insert
begin insert

25(14) “Tourism commission assessment” means the charge
26collected by a rental company from a renter that has been
27established by the California Travel and Tourism Commission
28pursuant to Section 13995.65 of the Government Code.

end insert
begin insert

29(15) “Vehicle license fee” means the tax imposed pursuant to
30the Vehicle License Fee Law (Part 5 (commencing with Section
3110701) of Division 2 of the Revenue and Taxation Code).

end insert
begin insert

32(16) “Vehicle registration fee” means any fee imposed pursuant
33to any provision of Chapter 6 (commencing with Section 9101) of
34Division 3 of the Vehicle Code.

end insert
begin insert

35(17) “Vehicle license recovery fee” means a charge that seeks
36to recover the amount of any vehicle license fee and vehicle
37registration fee paid by a rental company for the particular class
38of vehicle being rented.

end insert

P29   1(b) Except as limited by subdivision (c), a rental company and
2a renter may agree that the renter will be responsible for no more
3than all of the following:

4(1) Physical or mechanical damage to the rented vehicle up to
5its fair market value, as determined in the customary market for
6the sale of that vehicle, resulting from collision regardless of the
7cause of the damage.

8(2) Loss due to theft of the rented vehicle up to its fair market
9value, as determined in the customary market for the sale of that
10vehicle, provided that the rental company establishes by clear and
11 convincing evidence that the renter or the authorized driver failed
12to exercise ordinary care while in possession of the vehicle. In
13addition, the renter shall be presumed to have no liability for any
14loss due to theft if (A) an authorized driver has possession of the
15ignition key furnished by the rental company or an authorized
16driver establishes that the ignition key furnished by the rental
17company was not in the vehicle at the time of the theft, and (B) an
18authorized driver files an official report of the theft with the police
19or other law enforcement agency within 24 hours of learning of
20the theft and reasonably cooperates with the rental company and
21the police or other law enforcement agency in providing
22information concerning the theft. The presumption set forth in this
23paragraph is a presumption affecting the burden of proof which
24the rental company may rebut by establishing that an authorized
25driver committed, or aided and abetted the commission of, the
26theft.

27(3) Physical damage to the rented vehicle up to its fair market
28value, as determined in the customary market for the sale of that
29vehicle, resulting from vandalism occurring after, or in connection
30with, the theft of the rented vehicle. However, the renter shall have
31no liability for any damage due to vandalism if the renter would
32have no liability for theft pursuant to paragraph (2).

33(4) Physical damage to the rented vehicle up to a total of five
34hundred dollars ($500) resulting from vandalism unrelated to the
35theft of the rented vehicle.

36(5) Actual charges for towing, storage, and impound fees paid
37by the rental company if the renter is liable for damage or loss.

38(6) An administrative charge, which shall include the cost of
39appraisal and all other costs and expenses incident to the damage,
40loss, repair, or replacement of the rented vehicle.

P30   1(c) The total amount of the renter’s liability to the rental
2company resulting from damage to the rented vehicle shall not
3exceed the sum of the following:

4(1) The estimated cost of parts which the rental company would
5have to pay to replace damaged vehicle parts. All discounts and
6price reductions or adjustments that are or will be received by the
7rental company shall be subtracted from the estimate to the extent
8not already incorporated in the estimate, or otherwise promptly
9credited or refunded to the renter.

10(2) The estimated cost of labor to replace damaged vehicle parts,
11which shall not exceed the product of (A) the rate for labor usually
12paid by the rental company to replace vehicle parts of the type that
13were damaged and (B) the estimated time for replacement. All
14discounts and price reductions or adjustments that are or will be
15received by the rental company shall be subtracted from the
16estimate to the extent not already incorporated in the estimate, or
17otherwise promptly credited or refunded to the renter.

18(3) (A) The estimated cost of labor to repair damaged vehicle
19parts, which shall not exceed the lesser of the following:

20(i) The product of the rate for labor usually paid by the rental
21company to repair vehicle parts of the type that were damaged and
22the estimated time for repair.

23(ii) The sum of the estimated labor and parts costs determined
24under paragraphs (1) and (2) to replace the same vehicle parts.

25(B) All discounts and price reductions or adjustments that are
26or will be received by the rental company shall be subtracted from
27the estimate to the extent not already incorporated in the estimate,
28or otherwise promptly credited or refunded to the renter.

29(4) For the purpose of converting the estimated time for repair
30into the same units of time in which the rental rate is expressed, a
31day shall be deemed to consist of eight hours.

32(5) Actual charges for towing, storage, and impound fees paid
33by the rental company.

34(6) The administrative charge described in paragraph (6) of
35subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
36estimated cost for parts and labor is more than one hundred dollars
37($100) up to and including five hundred dollars ($500), (B) one
38hundred dollars ($100) if the total estimated cost for parts and
39labor exceeds five hundred dollars ($500) up to and including one
40thousand five hundred dollars ($1,500), and (C) one hundred fifty
P31   1dollars ($150) if the total estimated cost for parts and labor exceeds
2one thousand five hundred dollars ($1,500). An administrative
3charge shall not be imposed if the total estimated cost of parts and
4labor is one hundred dollars ($100) or less.

5(d) (1) The total amount of an authorized driver’s liability to
6the rental company, if any, for damage occurring during the
7authorized driver’s operation of the rented vehicle shall not exceed
8the amount of the renter’s liability under subdivision (c).

9(2) A rental company shall not recover from the renter or other
10authorized driver an amount exceeding the renter’s liability under
11subdivision (c).

12(3) A claim against a renter resulting from damage or loss,
13excluding loss of use, to a rental vehicle shall be reasonably and
14rationally related to the actual loss incurred. A rental company
15shall mitigate damages where possible and shall not assert or collect
16a claim for physical damage which exceeds the actual costs of the
17repairs performed or the estimated cost of repairs, if the rental
18company chooses not to repair the vehicle, including all discounts
19and price reductions. However, if the vehicle is a total loss vehicle,
20the claim shall not exceed the total loss vehicle value established
21in accordance with procedures that are customarily used by
22insurance companies when paying claims on total loss vehicles,
23less the proceeds from salvaging the vehicle, if those proceeds are
24retained by the rental company.

25(4) If insurance coverage exists under the renter’s applicable
26personal or business insurance policy and the coverage is confirmed
27during regular business hours, the renter may require that the rental
28company submit any claims to the renter’s applicable personal or
29business insurance carrier. The rental company shall not make any
30written or oral representations that it will not present claims or
31negotiate with the renter’s insurance carrier. For purposes of this
32paragraph, confirmation of coverage includes telephone
33confirmation from insurance company representatives during
34regular business hours. Upon request of the renter and after
35confirmation of coverage, the amount of claim shall be resolved
36between the insurance carrier and the rental company. The renter
37shall remain responsible for payment to the rental car company
38for any loss sustained that the renter’s applicable personal or
39business insurance policy does not cover.

P32   1(5) A rental company shall not recover from the renter or other
2authorized driver for an item described in subdivision (b) to the
3extent the rental company obtains recovery from another person.

4(6) This section applies only to the maximum liability of a renter
5or other authorized driver to the rental company resulting from
6damage to the rented vehicle and not to the liability of another
7person.

8(e) (1) Except as provided in subdivision (f), a damage waiver
9shall provide or, if not expressly stated in writing, shall be deemed
10to provide that the renter has no liability for damage, loss, loss of
11use, or a cost or expense incident thereto.

12(2) Except as provided in subdivision (f), every limitation,
13exception, or exclusion to a damage waiver is void and
14unenforceable.

15(f) A rental company may provide in the rental contract that a
16damage waiver does not apply under any of the following
17circumstances:

18(1) Damage or loss results from an authorized driver’s (A)
19intentional, willful, wanton, or reckless conduct, (B) operation of
20the vehicle under the influence of drugs or alcohol in violation of
21Section 23152 of the Vehicle Code, (C) towing or pushing
22anything, or (D) operation of the vehicle on an unpaved road if
23the damage or loss is a direct result of the road or driving
24conditions.

25(2) Damage or loss occurs while the vehicle is (A) used for
26commercial hire, (B) used in connection with conduct that could
27be properly charged as a felony, (C) involved in a speed test or
28contest or in driver training activity, (D) operated by a person other
29than an authorized driver, or (E) operated outside the United States.

30(3) An authorized driver who has (A) provided fraudulent
31information to the rental company, or (B) provided false
32information and the rental company would not have rented the
33vehicle if it had instead received true information.

34(g) (1) A rental company that offers or provides a damage
35waiver for any consideration in addition to the rental rate shall
36clearly and conspicuously disclose the following information in
37the rental contract or holder in which the contract is placed and,
38also, in signs posted at the place, such as the counter, where the
39renter signs the rental contract, and, for renters who are enrolled
40in the rental company’s membership program, in a sign that shall
P33   1be posted in a location clearly visible to those renters as they enter
2the location where their reserved rental cars are parked or near the
3exit of the bus or other conveyance that transports the enrollee to
4a reserved car: (A) the nature of the renter’s liability, such as
5liability for all collision damage regardless of cause, (B) the extent
6of the renter’s liability, such as liability for damage or loss up to
7a specified amount, (C) the renter’s personal insurance policy or
8the credit card used to pay for the car rental transaction may
9provide coverage for all or a portion of the renter’s potential
10liability, (D) the renter should consult with his or her insurer to
11determine the scope of insurance coverage, including the amount
12of the deductible, if any, for which the renter is obligated, (E) the
13renter may purchase an optional damage waiver to cover all
14liability, subject to whatever exceptions the rental company
15expressly lists that are permitted under subdivision (f), and (F) the
16range of charges for the damage waiver.

17(2) In addition to the requirements of paragraph (1), a rental
18company that offers or provides a damage waiver shall orally
19disclose to all renters, except those who are participants in the
20rental company’s membership program, that the damage waiver
21may be duplicative of coverage that the customer maintains under
22his or her own policy of motor vehicle insurance. The renter’s
23receipt of the oral disclosure shall be demonstrated through the
24renter’s acknowledging receipt of the oral disclosure near that part
25of the contract where the renter indicates, by the renter’s own
26initials, his or her acceptance or declination of the damage waiver.
27Adjacent to that same part, the contract also shall state that the
28damage waiver is optional. Further, the contract for these renters
29shall include a clear and conspicuous written disclosure that the
30damage waiver may be duplicative of coverage that the customer
31maintains under his or her own policy of motor vehicle insurance.

32(3) The following is an example, for purposes of illustration
33and not limitation, of a notice fulfilling the requirements of
34paragraph (1) for a rental company that imposes liability on the
35renter for collision damage to the full value of the vehicle:

P34   1“NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY
2AND OPTIONAL DAMAGE WAIVER
3

4You are responsible for all collision damage to the rented vehicle
5even if someone else caused it or the cause is unknown. You are
6responsible for the cost of repair up to the value of the vehicle,
7and towing, storage, and impound fees.

8Your own insurance, or the issuer of the credit card you use to
9pay for the car rental transaction, may cover all or part of your
10financial responsibility for the rented vehicle. You should check
11with your insurance company, or credit card issuer, to find out
12about your coverage and the amount of the deductible, if any, for
13which you may be liable.

14Further, if you use a credit card that provides coverage for your
15potential liability, you should check with the issuer to determine
16if you must first exhaust the coverage limits of your own insurance
17before the credit card coverage applies.

18The rental company will not hold you responsible if you buy a
19damage waiver. But a damage waiver will not protect you if (list
20exceptions).”


22(A) When the above notice is printed in the rental contract or
23holder in which the contract is placed, the following shall be printed
24immediately following the notice:


26“The cost of an optional damage waiver is $____ for every (day
27or week).”


29(B) When the above notice appears on a sign, the following
30shall appear immediately adjacent to the notice:


32“The cost of an optional damage waiver is $____ to $____ for
33every (day or week), depending upon the vehicle rented.”


35(h) Notwithstanding any other provision of law, a rental
36company may sell a damage waiver subject to the following rate
37limitations for each full or partial 24-hour rental day for the damage
38waiver:

39(1) For rental vehicles that the rental company designates as an
40“economy car,” “compact car,” or another term having similar
P35   1meaning to the two smallest body-size categories of vehicles
2established by the Association of Car Rental Industry Systems
3Standards for North America, as of January 1, 2014, when offered
4for rental, the rate shall not exceed eleven dollars ($11).

5(2) For rental vehicles that the rental company designates as an
6“intermediate car,” “standard car,” or “full-size car,” or another
7term having similar meaning to the next three body-size categories
8of vehicles established by the Association of Car Rental Industry
9Systems Standards for North America, as of January 1, 2014, and
10that are also either vehicles of the nextbegin delete model year,end deletebegin insert model-year,end insert
11 or not older than the previous year’s model, when offered for rental,
12the rate shall not exceed seventeen dollars ($17). For rental vehicles
13that are older than the previous year’s model-year, the rate shall
14not exceed eleven dollars ($11).

15(i) A rental company that disseminates in this state an
16advertisement containing a rental rate shall include in that
17advertisement a clearly readable statement of the charge for a
18damage waiver and a statement that a damage waiver is optional.

19(j) (1) A rental company shall not require the purchase of a
20damage waiver, optional insurance, or another optional good or
21service.

22(2) A rental company shall not engage in any unfair, deceptive,
23or coercive conduct to induce a renter to purchase the damage
24waiver, optional insurance, or another optional good or service,
25including conduct such as, but not limited to, refusing to honor
26the renter’s reservation, limiting the availability of vehicles,
27requiring a deposit, or debiting or blocking the renter’s credit card
28account for a sum equivalent to a deposit if the renter declines to
29purchase the damage waiver, optional insurance, or another
30optional good or service.

31(k) (1) In the absence of express permission granted by the
32renter subsequent to damage to, or loss of, the vehicle, a rental
33company shall not seek to recover any portion of a claim arising
34out of damage to, or loss of, the rented vehicle by processing a
35credit card charge or causing a debit or block to be placed on the
36renter’s credit card account.

37(2) A rental company shall not engage in any unfair, deceptive,
38or coercive tactics in attempting to recover or in recovering on any
39claim arising out of damage to, or loss of, the rented vehicle.

P36   1(l) (1) A customer facility charge may be collected by a rental
2company under the following circumstances:

3(A) Collection of the fee by the rental company is required by
4an airport operated by a city, a county, a city and county, a joint
5powers authority, a special district, or the San Diego County
6Regional Airport Authority formed pursuant to Division 17
7 (commencing with Section 170000) of the Public Utilities Code.

8(B) The fee is calculated on a per contract basis or as provided
9in paragraph (2).

10(C) The fee is a user fee, not a tax imposed upon real property
11or an incident of property ownership under Article XIII D of the
12California Constitution.

13(D) Except as otherwise provided in subparagraph (E), the fee
14shall be ten dollars ($10) per contract or the amount provided in
15paragraph (2).

16(E) The fee for a consolidated rental car facility shall be
17collected only from customers of on-airport rental car companies.
18If the fee imposed by the airport is for both a consolidated rental
19car facility and a common-use transportation system, the fee
20collected from customers of on-airport rental car companies shall
21be ten dollars ($10) or the amount provided in paragraph (2), but
22the fee imposed on customers of off-airport rental car companies
23who are transported on the common-use transportation system is
24proportionate to the costs of the common-use transportation system
25only. The fee is uniformly applied to each class of on-airport or
26off-airport customers, provided that the airport requires off-airport
27customers to use the common-use transportation system. For
28purposes of this subparagraph, “on-airport rental car company”
29means a rental company operating under an airport property lease
30or an airport concession or license agreement whose customers
31use or will use the consolidated rental car facility and the collection
32of the fee as to those customers is consistent with subparagraph
33(C).

34(F) Revenues collected from the fee do not exceed the reasonable
35costs of financing, designing, and constructing the facility and
36financing, designing, constructing, and operating any common-use
37transportation system, or acquiring vehicles for use in that system,
38and shall not be used for any other purpose.

39(G) The fee is separately identified on the rental agreement.

P37   1(H) This paragraph does not apply to fees which are governed
2by Section 50474.1 of the Government Code or Section 57.5 of
3the San Diego Unified Port District Act (Chapter 67 of the First
4Extraordinary Session of the Statutes of 1962).

5(I) For any airport seeking to require rental car companies to
6collect an alternative customer facility charge pursuant to paragraph
7(2), the following provisions apply:

8(i) Notwithstanding Section 10231.5 of the Government Code,
9the airport shall provide reports on an annual basis to the Senate
10 and Assembly Committees on Judiciary detailing all of the
11following:

12(I) The total amount of the customer facility charge collected.

13(II) How the funds are being spent.

14(III) The amount of and reason for any changes in the airport’s
15budget or financial needs for the facility or common-use
16transportation system.

begin delete

17(IV) Whether airport concession fees authorized by Section
181936.01 have increased since the prior report, if any.

end delete

19(ii) (I) The airport shall complete the audit required by
20subparagraph (B) of paragraphbegin delete (4)end deletebegin insert (6)end insert of subdivision (a) prior to
21the initial collection of the customer facility charge.
22Notwithstanding Section 10231.5 of the Government Code, copies
23of the audit shall be provided to the Assembly and Senate
24Committees on Judiciary, the Assembly Committee on
25Transportation, and the Senate Committee on Transportation and
26Housing and shall be posted on the airport’s Internet Web site.

27(II) Prior to any increase pursuant to paragraph (2), the airport
28shall update the information provided in the initial collection audit
29pursuant to subclause (I). Notwithstanding Section 10231.5 of the
30Government Code, copies of the updated audit shall be provided
31to the Assembly and Senate Committees on Judiciary, the
32Assembly Committee on Transportation, and the Senate Committee
33on Transportation and Housing, and shall be posted on the airport’s
34Internet Web site.

35(III) An audit shall be completed every three years after initial
36collection only if the customer facility charge is collected for the
37purpose of operating a common-use transportation system or to
38acquire vehicles for use in the system pursuant to clause (ii) of
39subparagraph (A) of paragraphbegin delete (4)end deletebegin insert (6)end insert of subdivision (a). A
40regularly conducted audit of airport finances that includes the
P38   1customer facility charge information, that satisfies the requirements
2of subparagraph (B) of paragraphbegin delete (4)end deletebegin insert (6)end insert of subdivision (a), and
3is produced in accordance with the generally accepted accounting
4principles of the Government Accounting Standards Board, shall
5satisfy the requirements of this subclause. This obligation shall
6continue until the fee authorization becomes inoperative pursuant
7to subparagraph (C) of paragraphbegin delete (4)end deletebegin insert (6)end insert of subdivision (a).
8Notwithstanding Section 10231.5 of the Government Code, the
9information reported pursuant to this subclause shall be compiled
10into one document, shall be provided to the Assembly and Senate
11Committees on Judiciary, the Assembly Committee on
12Transportation, and the Senate Committee on Transportation and
13Housing and shall be posted on the airport’s Internet Web site
14accessible to the public. The information reported shall be
15contained within one easily accessible page contained within the
16airport’s Internet Web site.

17(IV) This section shall not be construed to require an airport to
18audit a common-use transportation system not financed by a
19customer facility charge and used for the purposes permitted
20pursuant to clause (ii) of subparagraph (A) of paragraphbegin delete (4)end deletebegin insert (6)end insert of
21subdivision (a).

22(V) The airport shall post on the airport’s Internet Web site
23copies of the completed audits required by this clause for a period
24of six years following the audit’s completion.

25(iii) Use of the bonds shall be limited to construction and design
26of the consolidated rental car facility, terminal modifications, and
27operating costs of the common-use transportation system, as
28specified in paragraphbegin delete (4)end deletebegin insert (6)end insert of subdivision (a).

29(2) Any airport may require rental car companies to collect an
30alternative customer facility charge under the following conditions:

31(A) The airport first conducts a publicly noticed hearing pursuant
32to the Ralph M. Brown Act (Chapter 9 (commencing with Section
3354950) of Part 1 of Division 2 of Title 5 of the Government Code)
34to review the costs of financing the design and construction of a
35consolidated rental car facility and the design, construction, and
36operation of any common-use transportation system in which all
37of the following occur:

38(i) The airport establishes the amount of revenue necessary to
39finance the reasonable cost to design and construct a consolidated
40rental car facility and to design, construct, and operate any
P39   1common-use transportation system, or acquire vehicles for use in
2that system, based on evidence presented during the hearing.

3(ii) The airport finds, based on evidence presented during the
4hearing, that the fee authorized in paragraph (1) will not generate
5sufficient revenue to finance the reasonable costs to design and
6construct a consolidated rental car facility and to design, construct,
7and operate any common-use transportation system, or acquire
8vehicles for use in that system.

9(iii) The airport finds that the reasonable cost of the project
10requires the additional amount of revenue that would be generated
11by the proposed daily rate, including any rate increase, authorized
12pursuant to this paragraph.

13(iv) The airport outlines each of the following:

14(I) Steps it has taken to limit costs.

15(II) Other potential alternatives for meeting its revenue needs
16other than the collection of the fee.

17(III) The extent to which rental car companies or other
18businesses or individuals using the facility or common-use
19transportation system will pay for the costs associated with these
20facilities and systems other than the fee from rental customers.

21(B) The airport may not require the fee authorized in this
22paragraph to be collected at any time that the fee authorized in
23paragraph (1) of this subdivision is being collected.

24(C) Pursuant to the procedure set forth in this subdivision, the
25fee may be collected at a rate charged on a per-day basis subject
26to the following conditions:

27(i) Commencing January 1, 2011, the amount of the fee may
28not exceed six dollars ($6) per day.

29(ii) Commencing January 1, 2014, the amount of the fee may
30not exceed seven dollars and fifty cents ($7.50) per day.

31(iii) Commencing January 1, 2017, and thereafter, the amount
32of the fee may not exceed nine dollars ($9) per day.

33(iv) At no time shall the fee authorized in this paragraph be
34collected from any customer for more than five days for each
35individual rental car contract.

36(v) An airport subject to this paragraph shall initiate the process
37for obtaining the authority to require or increase the alternative
38fee no later than January 1, 2018. Any airport that obtains the
39authority to require or increase an alternative fee shall be authorized
40to continue collecting that fee until the fee authorization becomes
P40   1inoperative pursuant to subparagraph (C) of paragraphbegin delete (4)end deletebegin insert (6)end insert of
2subdivision (a).

3(3) Notwithstanding any other provision of law, including, but
4not limited to, Part 1 (commencing with Section 6001) to Part 1.7
5(commencing with Section 7280), inclusive, of Division 2 of the
6Revenue and Taxation Code, the fees collected pursuant to this
7section, or another law whereby a local agency operating an airport
8requires a rental car company to collect a facility financing fee
9from its customers, are not subject to sales, use, or transaction
10taxes.

11(m) (1) begin deleteA rental company shall only advertise, quote, and charge
12a rental rate that includes the entire amount except taxes, a
13customer facility charge, end delete
begin insertWhen providing a quote, or imposing
14charges for a rental, the rental company may separately state the
15rental rate, additional mandatory charges, end insert
if any, and a mileage
16charge, if any, that a renter must pay to hire or lease the vehicle
17for the period of time to which the rental rate applies. A rental
18company shall not charge in addition to the rental rate, taxes, begin delete a
19customer facility charge, if any, and a mileage charge, if any, any
20fee that is required to be paid by the renter as a condition of hiring
21or leasing the vehicle, including, but not limited to, required fuel
22or airport surcharges other than customer facility charges, nor a
23fee for transporting the renter to the location where the rented
24vehicle will be delivered to the renter.end delete
begin insert additional mandatory
25charges, if any, a mileage charge, if any, and any other fee that is
26required to be paid by the renter as a condition of hiring or leasing
27the vehicle.end insert

begin insert

28(2) If additional mandatory charges are imposed, the rental
29company shall do each of the following:

end insert
begin insert

30(A) At the time the quote is given, provide the person receiving
31the quote with a good faith estimate of the rental rate and all
32additional mandatory charges, as well as the total charges for the
33entire rental. The total charges, if provided on an Internet Web
34site page, shall be displayed in a typeface at least as large as any
35rental rate disclosed on that page and shall be provided on a page
36that the person receiving the quote may reach by following links
37through no more than two Internet Web site pages, including the
38page on which the rental rate is first provided. The good faith
39estimate may exclude mileage charges and charges for optional
P41   1items that cannot be determined prior to completing the reservation
2based upon the information provided by the person.

end insert
begin insert

3(B) At the time and place the rental commences, clearly and
4conspicuously disclose in the rental contract, or that portion of
5the contract that is provided to the renter, the total of the rental
6rate, additional mandatory charges, for the entire rental, exclusive
7of charges that cannot be determined at the time the rental
8commences. Charges imposed pursuant to this subparagraph shall
9be no more than the amount of the quote provided in a confirmed
10reservation, unless the person changes the terms of the rental
11contract subsequent to making the reservation.

end insert
begin insert

12(C) Provide each person, other than those persons within the
13rental company, offering quotes to actual or prospective customers
14access to information about additional mandatory charges, as well
15as access to information about when those charges apply. Any
16person providing quotes to actual or prospective customers for
17the hire or lease of a vehicle from a rental company shall provide
18the quotes in the manner described in subparagraph (A).

end insert
begin delete

19(2)

end delete

20begin insert(3)end insert In addition to the rental rate, taxes,begin delete customer facilityend delete
21begin insert additional mandatoryend insert charges, if any, and mileage charges, if any,
22a rental company may charge for an item or service provided in
23connection with a particular rental transaction if the renter could
24have avoided incurring the charge by choosing not to obtain or
25utilize the optional item or service. Items and services for which
26the rental company may impose an additional charge include, but
27are not limited to, optional insurance and accessories requested by
28the renter, service charges incident to the renter’s optional return
29of the vehicle to a location other than the location where the vehicle
30 was hired or leased, and charges for refueling the vehicle at the
31conclusion of the rental transaction in the event the renter did not
32return the vehicle with as much fuel as was in the fuel tank at the
33beginning of the rental. A rental company also may impose an
34additional charge based on reasonable age criteria established by
35the rental company.

begin delete

36(3)

end delete

37begin insert(4)end insert A rental company shall not charge a fee for authorized
38drivers in addition to the rental charge for an individual renter.

begin delete

39(4)

end delete

P42   1begin insert(5)end insert If a rental company states a rental rate in print advertisement
2or in a telephonic, in-person, or computer-transmitted quotation,
3the rental company shall disclose clearly in that advertisement or
4quotation the terms of mileage conditions relating to the advertised
5or quoted rental rate, including, but not limited to, to the extent
6applicable, the amount of mileage and gas charges, the number of
7miles for which no charges will be imposed, and a description of
8geographic driving limitations within the United States and Canada.

begin delete

9(5) (A) When a rental rate is stated in an advertisement,
10quotation, or reservation in connection with a car rental at an airport
11where a customer facility charge is imposed, the rental company
12shall disclose clearly the existence and amount of the customer
13facility charge. For purposes of this subparagraph, advertisements
14include radio, television, other electronic media, and print
15advertisements. For purposes of this subparagraph, quotations and
16reservations include those that are telephonic, in-person, and
17computer-transmitted. If the rate advertisement is intended to
18include transactions at more than one airport imposing a customer
19facility charge, a range of fees may be stated in the advertisement.
20However, all rate advertisements that include car rentals at airport
21destinations shall clearly and conspicuously include a toll-free
22telephone number whereby a customer can be told the specific
23amount of the customer facility charge to which the customer will
24be obligated.

25(B) If a person or entity other than a rental car company,
26including a passenger carrier or a seller of travel services, advertises
27or quotes a rate for a car rental at an airport where a customer
28facility charge is imposed, that person or entity shall, provided
29that he, she, or it is provided with information about the existence
30and amount of the fee, to the extent not specifically prohibited by
31federal law, clearly disclose the existence and amount of the fee
32in any telephonic, in-person, or computer-transmitted quotation at
33the time of making an initial quotation of a rental rate and at the
34time of making a reservation of a rental car. If a rental car company
35provides the person or entity with rate and customer facility charge
36information, the rental car company is not responsible for the
37failure of that person or entity to comply with this subparagraph
38when quoting or confirming a rate to a third person or entity.

end delete
begin insert

39(6) All rate advertisements shall include the following
40disclaimer, which shall be prominently displayed: “Additional
P43   1mandatory charges may be imposed, including, but not limited to,
2a customer facility charge, airport concession fee, tourism
3commission assessment, vehicle license recovery fee, or other
4government imposed taxes or fees. For more information, including
5an estimate of your total rental cost, visit our Internet Web site at
6[www.____.com].”

end insert
begin delete

7(6)

end delete

8begin insert(7)end insert If a rental company delivers a vehicle to a renter at a location
9other than the location where the rental company normally carries
10on its business, the rental company shall not charge the renter an
11amount for the rental for the period before the delivery of the
12vehicle. If a rental company picks up a rented vehicle from a renter
13at a location other than the location where the rental company
14normally carries on its business, the rental company shall not
15charge the renter an amount for the rental for the period after the
16renter notifies the rental company to pick up the vehicle.

begin insert

17(8) Except as otherwise permitted pursuant to the customer
18facility charge, a rental company shall not separately charge, in
19addition to the rental rate, a fee for transporting the renter to a
20location where the rented vehicle will be delivered to the renter.

end insert

21(n) A rental company shall not use, access, or obtain any
22information relating to the renter’s use of the rental vehicle that
23was obtained using electronic surveillance technology, except in
24the following circumstances:

25(1) (A) When the equipment is used by the rental company
26only for the purpose of locating a stolen, abandoned, or missing
27rental vehicle after one of the following:

28(i) The renter or law enforcement has informed the rental
29company that the vehicle is missing or has been stolen or
30abandoned.

31(ii) The rental vehicle has not been returned following one week
32after the contracted return date, or by one week following the end
33of an extension of that return date.

34(iii) The rental company discovers the rental vehicle has been
35stolen or abandoned, and, if stolen, it shall report the vehicle stolen
36to law enforcement by filing a stolen vehicle report, unless law
37 enforcement has already informed the rental company that the
38vehicle is missing or has been stolen or abandoned.

39(B) If electronic surveillance technology is activated pursuant
40to subparagraph (A), a rental company shall maintain a record, in
P44   1either electronic or written form, of information relevant to the
2activation of that technology. That information shall include the
3rental agreement, including the return date, and the date and time
4the electronic surveillance technology was activated. The record
5shall also include, if relevant, a record of written or other
6communication with the renter, including communications
7regarding extensions of the rental, police reports, or other written
8communication with law enforcement officials. The record shall
9be maintained for a period of at least 12 months from the time the
10record is created and shall be made available upon the renter’s
11request. The rental company shall maintain and furnish explanatory
12 codes necessary to read the record. A rental company shall not be
13required to maintain a record if electronic surveillance technology
14is activated to recover a rental vehicle that is stolen or missing at
15a time other than during a rental period.

16(2) In response to a specific request from law enforcement
17pursuant to a subpoena or search warrant.

18(3) This subdivision does not prohibit a rental company from
19equipping rental vehicles with GPS-based technology that provides
20navigation assistance to the occupants of the rental vehicle, if the
21rental company does not use, access, or obtain information relating
22to the renter’s use of the rental vehicle that was obtained using
23that technology, except for the purposes of discovering or repairing
24a defect in the technology and the information may then be used
25only for that purpose.

26(4) This subdivision does not prohibit a rental company from
27equipping rental vehicles with electronic surveillance technology
28that allows for the remote locking or unlocking of the vehicle at
29the request of the renter, if the rental company does not use, access,
30or obtain information relating to the renter’s use of the rental
31vehicle that was obtained using that technology, except as
32necessary to lock or unlock the vehicle.

33(5) This subdivision does not prohibit a rental company from
34equipping rental vehicles with electronic surveillance technology
35that allows the company to provide roadside assistance, such as
36towing, flat tire, or fuel services, at the request of the renter, if the
37rental company does not use, access, or obtain information relating
38to the renter’s use of the rental vehicle that was obtained using
39that technology except as necessary to provide the requested
40roadside assistance.

P45   1(6) This subdivision does not prohibit a rental company from
2obtaining, accessing, or using information from electronic
3surveillance technology for the sole purpose of determining the
4date and time the vehicle is returned to the rental company, and
5the total mileage driven and the vehicle fuel level of the returned
6vehicle. This paragraph, however, shall apply only after the renter
7has returned the vehicle to the rental company, and the information
8shall only be used for the purpose described in this paragraph.

9(o) A rental company shall not use electronic surveillance
10technology to track a renter in order to impose fines or surcharges
11relating to the renter’s use of the rental vehicle.

12(p) A renter may bring an action against a rental company for
13the recovery of damages and appropriate equitable relief for a
14violation of this section. The prevailing party shall be entitled to
15recover reasonable attorney’s fees and costs.

16(q) A rental company that brings an action against a renter for
17loss due to theft of the vehicle shall bring the action in the county
18in which the renter resides or, if the renter is not a resident of this
19state, in the jurisdiction in which the renter resides.

20(r) A waiver of any of the provisions of this section shall be
21void and unenforceable as contrary to public policy.

22(s) (1) A rental company’s disclosure requirements shall be
23satisfied for renters who are enrolled in the rental company’s
24membership program if all of the following conditions are met:

25(A) Prior to the enrollee’s first rental as a participant in the
26 program, the renter receives, in writing, the following:

27(i) All of the disclosures required by paragraph (1) of subdivision
28(g), including the terms and conditions of the rental agreement
29then in effect.

30(ii) An Internet Web site address, as well as a contact number
31or address, where the enrollee can learn of changes to the rental
32agreement or to the laws of this state governing rental agreements
33since the effective date of the rental company’s most recent
34restatement of the rental agreement and distribution of that
35restatement to its members.

36(B) At the commencement of each rental period, the renter is
37provided, on the rental record or the folder in which it is inserted,
38with a printed notice stating that he or she had either previously
39selected or declined an optional damage waiver and that the renter
40has the right to change preferences.

P46   1(C) At the commencement of each rental period, the rental
2company provides, on the rearview mirror, a hanger on which a
3statement is printed, in a box, in at least 12-point boldface type,
4notifying the renter that the collision damage waiver offered by
5the rental company may be duplicative of coverage that the
6customer maintains under his or her own policy of motor vehicle
7insurance. If it is not feasible to hang the statement from the
8rearview mirror, it shall be hung from the steering wheel.

9The hanger shall provide the renter a box to initial if he or she
10(not his or her employer) has previously accepted or declined the
11collision damage waiver and that he or she now wishes to change
12his or her decision to accept or decline the collision damage waiver,
13as follows:


15“If I previously accepted the collision damage waiver, I now
16decline it.


19If I previously declined the collision damage waiver, I now
20accept it.”


22The hanger shall also provide a box for the enrollee to indicate
23whether this change applies to this rental transaction only or to all
24future rental transactions. The hanger shall also notify the renter
25that he or she may make that change, prior to leaving the lot, by
26returning the form to an employee designated to receive the form
27who is present at the lot where the renter takes possession of the
28car, to receive any change in the rental agreement from the renter.

29(2) (A) This subdivision is not effective unless the employee
30designated pursuant to subparagraph (E) of paragraphbegin delete (8)end deletebegin insert (9)end insert of
31subdivision (a) is actually present at the required location.

32(B) This subdivision does not relieve the rental company from
33the disclosures required to be made within the text of a contract
34or holder in which the contract is placed; in or on an advertisement
35containing a rental rate; or in a telephonic, in-person, or
36computer-transmitted quotation or reservation.

37(t) The amendments made to this section during the 2001-02
38Regular Session of the Legislature do not affect litigation pending
39on or before January 1, 2003, alleging a violation of Section 22325
P47   1of the Business and Professions Code as it read at the time the
2action was commenced.

3(u) (1) When a rental company enters into a rental agreement
4in the state for the rental of a vehicle to any renter who is not a
5resident of this country and, as part of, or associated with, the rental
6agreement, the renter purchases liability insurance, as defined in
7subdivision (b) of Section 1758.85 of the Insurance Code, from
8the rental company in its capacity as a rental car agent for an
9authorized insurer, the rental company shall be authorized to accept,
10and, if served as set forth in this subdivision, shall accept, service
11of a summons and complaint and any other required documents
12against the foreign renter for any accident or collision resulting
13from the operation of the rental vehicle within the state during the
14rental period. If the rental company has a registered agent for
15service of process on file with the Secretary of State, process shall
16be served on the rental company’s registered agent, either by
17 first-class mail, return receipt requested, or by personal service.

18(2) Within 30 days of acceptance of service of process, the rental
19company shall provide a copy of the summons and complaint and
20any other required documents served in accordance with this
21subdivision to the foreign renter by first-class mail, return receipt
22requested.

23(3) Any plaintiff, or his or her representative, who elects to serve
24the foreign renter by delivering a copy of the summons and
25complaint and any other required documents to the rental company
26pursuant to paragraph (1) shall agree to limit his or her recovery
27against the foreign renter and the rental company to the limits of
28the protection extended by the liability insurance.

29(4) Notwithstanding the requirements of Sections 17450 to
3017456, inclusive, of the Vehicle Code, service of process in
31compliance with paragraph (1) shall be deemed valid and effective
32service.

33(5) Notwithstanding any other provision of law, the requirement
34that the rental company accept service of process pursuant to
35paragraph (1) shall not create any duty, obligation, or agency
36relationship other than that provided in paragraph (1).

begin delete

37(v) This section shall remain in effect only until January 1, 2020,
38and as of that date is repealed, unless a later enacted statute, that
39is enacted before January 1, 2020, deletes or extends that date.

end delete
P48   1

SEC. 2.  

Section 1936 of the Civil Code, as amended by Section
25.7 of Chapter 913 of the Statutes of 2014, is repealed.

3

SEC. 3.  

Section 1936.01 of the Civil Code is repealed.

4

SEC. 4.  

Section 1936.015 of the Civil Code is repealed.

5

SEC. 5.  

Section 1936.05 of the Civil Code is amended to read:

6

1936.05.  

(a) For purposes of this section:

7(1) “Additional charges” means charges other than a per period
8base rental rate established by the business program.

9(2) “Business program” means (A) a contract between a rental
10company and a business program sponsor that has established the
11per period base rental rate, and any other material terms relating
12to additional charges, on which the rental company will rent
13passenger vehicles to persons authorized by the sponsor, or (B) a
14plan, program, or other arrangement established by a rental
15company at the request of, or with the consent of, a business
16program sponsor under which the rental company offers to rent
17passenger vehicles to persons authorized by the sponsor at per
18period base rental rates, and any other material terms relating to
19additional charges, that are not the same as those generally offered
20by the rental company to the public.

21(3) “Business program sponsor” means a legal entity, other than
22a natural person, that is a corporation, limited liability company,
23or partnership.

24(4) “Business renter” means, for any business program sponsor,
25a person who is authorized by the sponsor, through the use of an
26identifying number or program name or code, to enter into a rental
27contract under the sponsor’s business program. In no case shall
28the term “business renter” include a person renting as: (A) a
29nonemployee member of a not-for-profit organization, (B) the
30purchaser of a voucher or other prepaid rental arrangement from
31a person, including a tour operator, engaged in the business of
32reselling those vouchers or prepaid rental arrangements to the
33general public, (C) an individual whose car rental is eligible for
34reimbursement in whole or in part as a result of the person being
35insured or provided coverage under a policy of insurance issued
36by an insurance company, or (D) an individual whose car rental
37is eligible for reimbursement in whole or in part as a result of the
38person purchasing passenger vehicle repair services from a person
39licensed to perform such services.

P49   1(5) “Qualified business rental” under a business program
2established for a business program sponsor by a rental company
3means the rental of a passenger vehicle under the business program
4if either (A) in the 12-month period ending on the date of the rental
5or in the calendar year immediately preceding the year in which
6the rental occurs, the rentals under all business programs
7established by the rental company for the business program sponsor
8and its affiliates produced gross rental revenues in excess of
9twenty-five thousand dollars ($25,000) or (B) the rental company
10in good faith estimates that rentals under all the business programs
11established by the rental company for the business program sponsor
12and its affiliates will produce gross rental revenues in excess of
13twenty-five thousand dollars ($25,000) in the 12-month period
14commencing with the date of the rental or in the calendar year in
15which the rental occurs. The rental company has the burden of
16establishing by objectively verifiable evidence that the rental was
17a qualified business rental.

18(6) “Quote” means telephonic, in-person, and
19computer-transmitted quotations.

20(b) Notwithstanding any provision to the contrary contained in
21subdivision (m) of Section 1936, a rental car company may, in
22connection with the qualified business rental of a passenger vehicle
23to a business renter of a business program sponsor under the
24sponsor’s business program, do both of the following:

25(1) Separately quote additional charges for the rental if, at the
26time the quote is provided, the person receiving the quote is also
27provided a good faith estimate of the total of all the charges for
28the entire rental. The estimate may exclude mileage charges and
29charges for optional items and services that cannot be determined
30prior to completing the reservation based upon the information
31provided by the renter.

32(2) Separately impose additional charges for the rental, if the
33rental contract, or another document provided to the business renter
34at the time and place the rental commences, clearly and
35conspicuously discloses the total of all the charges for the entire
36rental, exclusive of charges that cannot be determined at the time
37the rental commences.

38(c) A renter may bring an action against a rental company for
39the recovery of damages and appropriate equitable relief for a
P50   1violation of this section. The prevailing party shall be entitled to
2recover reasonable attorney’s fees and costs.

3(d) Any waiver of any of the provisions of this section shall be
4void and unenforceable as contrary to public policy.

5(e) Nothing in this section shall be interpreted to mean that a
6rental company is not required to comply with the requirements
7of paragraphsbegin delete (2) to (6),end deletebegin insert (3) to (7),end insert inclusive, of subdivision (m)
8of Section 1936.



O

    95