Bill Text: CA AB893 | 2023-2024 | Regular Session | Amended

California Assembly Bill 893

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Personal vehicle sharing programs.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2023-10-08 - Chaptered by Secretary of State - Chapter 547, Statutes of 2023. [AB893 Detail]

Download: California-2023-AB893-Amended.html

Amended IN Senate August 15, 2023

Amended IN Senate July 06, 2023

Amended IN Senate June 12, 2023

Amended IN Assembly May 22, 2023

Amended IN Assembly April 12, 2023

Amended IN Assembly March 23, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 893

Introduced by Assembly Member Papan

February 14, 2023

An act to amend Section 1939.01 of, and to add Sections 1939.38 and 1939.39 to, the Civil Code, and to amend Section 13995.65.5 of, and to add Section 50474.20 to, the Government Code, relating to rental passenger vehicles.

LEGISLATIVE COUNSEL'S DIGEST

AB 893, as amended, Papan. Personal vehicle sharing programs.

(1) Existing law generally governs the transactions between a rental car company, also referred to as a rental company, and its customers, including, among other provisions, required disclosures by a rental company, mandatory contract provisions for a vehicle rental agreement, restrictions on a rental company’s use of electronic surveillance technology, and authorization for a rental company to collect specific types of fees and charges from its customers. Existing law defines “rental company,” among other terms, for purposes of those provisions.

This bill would define the term “personal vehicle sharing program” for purposes of these provisions as a person or entity that, for monetary compensation, facilitates the rental of passenger vehicles to the public, including via a peer-to-peer internet website, application, or other platform, that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration, as specified.

This bill would, on and after July 1, 2024, prohibit a personal vehicle sharing program from allowing a vehicle to be placed on a digital network or software application of the personal vehicle sharing program for the purpose of making the vehicle available for rental through the personal vehicle sharing program unless certain conditions are satisfied, including specified certifications regarding tax-related matters pertaining to the motor vehicle.

(2) Existing law authorizes an airport operated by a city and county to require a rental car company to collect a customer facility charge from its customers on behalf of the airport for the use of airport-mandated common use facilities, as specified.

This bill would make those provisions applicable to a personal vehicle sharing program, as defined, and require that any ~~fees~~ customer facility charges collected be proportionate to the services and infrastructure utilized. The bill, beginning on July 1, 2024, would require that before facilitating sharing or renting of vehicles, any program, person, or entity that is a personal vehicle sharing program obtain a permit or other written authorization from the airport operator that sets forth the terms, standards, regulations, procedures, fees, and access requirements for the activity.

(3) Existing law, the California Tourism Marketing Act, authorizes the California Travel and Tourism Commission to require businesses to pay an assessment for the purpose of increasing the number of persons traveling to and within California, implementing a tourism marketing plan, and administration and collecting assessments, as specified. Existing law provides that for purposes of calculating the assessment for a business within the passenger car rental category, the assessment shall be collected only on each rental transaction that commences at either an airport or at a hotel or other overnight lodging with respect to which a city, city and county, or county is authorized to levy a tax as specified.

This bill would specify that these provisions apply to a personal vehicle sharing program in the same manner as a business in the passenger car rental category for each sharing or rental transaction that begins at an airport.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

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

SECTION 1.

Section 1939.01 of the Civil Code is amended to read:

1939.01.

For the purpose of this chapter, the following definitions shall apply:

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

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

(c) “Additional mandatory charges” means any separately stated charges that the rental company requires the renter to pay to hire or lease the vehicle for the period of time to which the rental rate applies, which are imposed by a governmental entity and specifically relate to the operation of a rental vehicle business, 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.

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

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

(1) The renter.

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

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

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

(f) “Customer facility charge” means any fee, including an alternative fee, required by an airport to be collected by a rental company from a renter pursuant to Section 50474.21 of the Government Code.

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

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

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

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

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

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

(k) “Membership program” means a service offered by a rental company that permits customers to bypass the rental counter and go directly to the vehicle previously reserved or select an alternate vehicle. A membership program shall meet all of the following requirements:

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

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

(3) The renter may terminate enrollment at any time.

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

(5) An employee is available at the lot where the renter takes possession of the vehicle, to receive any change in the rental agreement from the renter.

(l) “Passenger vehicle” or “vehicle” means a “passenger vehicle” as defined in Section 465 of the Vehicle Code.

(m) “Personal vehicle sharing program” means a person or entity that for monetary compensation facilitates sharing or renting passenger vehicles to the public, including via a peer-to-peer internet website, application, or other platform that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration, and includes a personal vehicle sharing program as defined in Section 11580.24 of the Insurance Code.

(n) “Quote” means an estimated cost of rental provided by a rental company or a third party to a potential customer that is based on information provided by the potential customer and used to generate an estimated cost of rental, including, but not limited to, potential dates of rental, locations, or classes of vehicle.

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

(p) “Vehicle license fee” means the tax imposed pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code).

(q) “Vehicle registration fee” means any fee imposed pursuant to any provision of Chapter 6 (commencing with Section 9101) of Division 3 of the Vehicle Code or any other law that imposes a fee upon the registration of vehicles in this state.

(r) “Vehicle license recovery fee” means a charge that seeks to recover the amount of any vehicle license fee and vehicle registration fee paid by a rental company for the particular class of vehicle being rented. If imposed, the vehicle license recovery fee shall be separately stated as a single charge in the quote and rental contract.

SEC. 2.

Section 1939.38 is added to the Civil Code, immediately following Section 1939.37, to read:

1939.38.

(a) Notwithstanding any other law, a commercial airport facility may regulate access to an airport and require any person or entity described in subdivision (m) of Section 1939.01 to collect a customer facility charge pursuant to Section 50474.21 of the Government Code.

(b) (1) Before facilitating the sharing or renting of vehicles, any program, person, or entity described in subdivision (m) of Section 1939.01 shall obtain a permit or other written authorization from the airport operator that sets forth the terms, standards, regulations, procedures, fees, and access requirements for the activity.

(2) For purposes of paragraph (1), “facilitating the sharing or renting of vehicles” includes listing, publishing, or advertising vehicles or motor vehicles parked on airport property or at airport facilities.

(1) Regulate access to an airport it owns or operates.

(2) Enter into written agreements.

(3) Set access fees or permit requirements.

(4) Regulate existing airport access permits granted by an airport to personal vehicle sharing programs.

(d) This section shall become operative on July 1, 2024.

SEC. 3.

Section 1939.39 is added to the Civil Code, to read:

1939.39.

On and after July 1, 2024, a personal vehicle sharing program shall not allow a vehicle to be placed on a digital network or software application of the personal vehicle sharing program for the purpose of making the vehicle available for rental through the personal vehicle sharing program unless the certification described in subdivision (a) or (b), as applicable, is fulfilled:

(a) If the request is to list a motor vehicle that was purchased in California, and that motor vehicle would first be made available for sharing on or after July 1, 2024, certification that one of the following occurred:

(1) All sales and use taxes were paid on the purchase price of the motor vehicle.

(2) The purchaser elected to have sales and use taxes collected on receipts from renting the motor vehicle in lieu of paying applicable taxes on the purchase price of the motor vehicle.

(3) The purchase of the motor vehicle was not subject to taxation due to an exemption available under law.

(b) If the request is to list a motor vehicle that was not purchased in California, and that motor vehicle would first be made available for sharing on or after July 1, 2024, certification that one of the following occurred:

(1) Applicable taxes were paid on the purchase price of the vehicle.

(2) Applicable taxes were not paid on the purchase price of the vehicle.

SEC. 4.

Section 13995.65.5 of the Government Code is amended to read:

13995.65.5.

(a) Notwithstanding Section 13995.65 or any other provision of this chapter, for purposes of calculating the assessment for a business within the passenger car rental category, the assessment shall be collected only on each rental transaction that commences at either an airport or at a hotel or other overnight lodging with respect to which a city, city and county, or county is authorized to levy a tax as described in Section 7280 of the Revenue and Taxation Code. A transaction commencing at an airport or hotel or other overnight lodging subject to a transient occupancy tax as described in Section 7280 of the Revenue and Taxation Code, including those that commence at a location that might otherwise by regulation be exempt from assessment, shall be subject to the assessment. The assessment shall always be expressed as a fixed percentage of the amount of the rental transaction.

(b) This section shall apply to any person or entity described in subdivision (m) of Section 1939.01 of the Civil Code in the same manner as a business in the passenger car rental category for each sharing or rental transaction that begins at an airport.

SEC. 5.

Section 50474.20 is added to the Government Code, to read:

50474.20.

This article shall apply to both of the following in the same manner as it applies to a rental car company and any ~~fees~~ customer facility charges collected shall be proportionate to the services and infrastructure utilized:

(a) A personal vehicle sharing program as defined in subdivision (m) of Section 1939.01 of the Civil Code.

(b) Any person or entity that for monetary compensation facilitates sharing or renting passenger vehicles to the public, including via a peer-to-peer internet website, application, or other platform that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration.