Bill Text: CA AB2747 | 2013-2014 | Regular Session | Chaptered
Bill Title: Civil law: omnibus bill.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2014-09-30 - Chaptered by Secretary of State - Chapter 913, Statutes of 2014. [AB2747 Detail]
Download: California-2013-AB2747-Chaptered.html
BILL NUMBER: AB 2747 CHAPTERED
BILL TEXT
CHAPTER 913
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2014
APPROVED BY GOVERNOR SEPTEMBER 30, 2014
PASSED THE SENATE AUGUST 25, 2014
PASSED THE ASSEMBLY AUGUST 27, 2014
AMENDED IN SENATE AUGUST 19, 2014
AMENDED IN SENATE AUGUST 5, 2014
AMENDED IN SENATE JULY 1, 2014
AMENDED IN SENATE JUNE 12, 2014
AMENDED IN ASSEMBLY MAY 14, 2014
AMENDED IN ASSEMBLY MAY 5, 2014
AMENDED IN ASSEMBLY APRIL 22, 2014
INTRODUCED BY Committee on Judiciary (Assembly Members Wieckowski
(Chair), Alejo, Chau, Dickinson, Garcia, Muratsuchi, and Stone)
MARCH 4, 2014
An act to amend Sections 56.06, 1633.3, 1936, and 1942.2 of the
Civil Code, to amend Sections 415.46, 1174.25, 1174.3, 1501.5, 1571,
and 2025.510 of the Code of Civil Procedure, to amend Sections 912,
917, and 1038.2 of the Evidence Code, to amend Section 504 of the
Family Code, to amend Sections 831.7, 6103, 8214.15, 60371, 68085.1,
68631, and 68632 of, to add Section 68631.5 to, and to repeal Section
1456 of, the Government Code, to amend Section 1569.698 of the
Health and Safety Code, to amend Section 11163.3 of the Penal Code,
to amend Sections 1513.1, 1811, 1812, 1813, 1851.5, 2356.5, 6401, and
6402 of the Probate Code, to amend Section 21189.2 of the Public
Resources Code, and to repeal Chapter 4.2 (commencing with Section
10830) of Part 2 of Division 9 of the Welfare and Institutions Code,
relating to civil law.
LEGISLATIVE COUNSEL'S DIGEST
AB 2747, Committee on Judiciary. Civil law: omnibus bill.
(1) Existing law, the Uniform Electronic Transactions Act,
generally allows parties to contract to conduct transactions by
electronic means and imposes specified requirements on electronic
transactions. That act does not apply to specific transactions,
including a transaction regarding security for a rental agreement for
residential property that is used as the dwelling of the tenant.
This bill would remove those security transactions from the list
of transactions to which the Uniform Electronic Transactions Act does
not apply.
(2) Existing law governs contracts between vehicle rental
companies and their customers. Existing law, until January 1, 2015,
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 extend these requirements until January 1, 2020.
(3) Existing law governs the obligations of tenants and landlords
under a lease or tenancy. Existing law authorizes a tenant who has
made a payment to a public utility or publicly owned utility to
deduct the amount of the payment from the rent when due, as
specified.
This bill would additionally authorize a tenant who has made a
payment to a district for public utility service to deduct the amount
of the payment from the rent when due, as specified.
Existing law provides that whenever a district, as defined,
furnishes residential light, heat, water, or power through a master
meter, or furnishes individually metered service in a multiunit
residential structure, mobilehome park, or farm labor camp where the
owner, manager, or farm labor employer is listed by the district as
the customer of record, the district is required to make every good
faith effort to inform the actual users of the services, by means of
a specified notice, when the account is in arrears, that service will
be terminated at least 10 days prior to termination and further
provides for the district to make service available to actual users
who are willing and able to assume responsibility for the entire
account.
This bill would additionally require a district to provide that
notice to actual users in a single-family dwelling. The bill would
require that the notice be written in English, Spanish, Chinese,
Tagalog, Vietnamese, and Korean. The bill would instead provide for
the district to make service available to actual users who are
willing and able to assume responsibility for subsequent charges to
the account. By imposing on special districts additional requirements
regarding termination of residential utility service, the bill would
impose a state-mandated local program.
(4) Existing law generally provides, in an unlawful detainer
action, that if an owner or owner's agent has obtained service of a
prejudgment claim of right to possession, as specified, no occupant
of the premises, whether or not that occupant is named in the
judgment for possession, may object to the enforcement of the
judgment against that occupant by filing a claim of right to
possession as prescribed. Existing law provides, in any action for
unlawful detainer resulting from a foreclosure sale of a rental
housing unit pursuant to specified provisions, that the above
provisions regarding objection to the enforcement of a judgment do
not limit the right of a tenant or subtenant to file a prejudgment
claim of right of possession or to object to enforcement of a
judgment for possession by filing a claim of right to possession,
regardless of whether the tenant or subtenant was served with a
prejudgment claim of right to possession, as specified. Existing law
includes the forms for claim of right to possession and for service
of a prejudgment claim of right to possession.
This bill, with regard to the foreclosure sale provision in
existing law, would make conforming changes to statutory provisions
and statutory forms regarding claim of right to possession and
prejudgment claim of right to possession.
(5) Existing law, known as the Unclaimed Property Law, provides
for the escheat to the state of, among other property, certain
personal property held or owing in the ordinary course of the holder'
s business. Existing law declares the intent of the Legislature to
adopt a more expansive notification component as part of the
unclaimed property program that has a waiting period of not less than
18 months from delivery of property to the state prior to disposal
of any unclaimed property deemed to have no commercial value. The
Unclaimed Property Law also vests the Commissioner of Financial
Institutions with full authority to examine the records of any
banking organization and any savings association doing business
within this state for the purposes of determining compliance pursuant
to its provisions.
This bill would modify the declaration of legislative intent to
provide for a 7-year waiting period from delivery of property to the
state prior to the disposal of unclaimed property. The bill would
also update an obsolete reference.
(6) Existing law requires the party noticing a deposition to bear
the cost of stenographically transcribing the deposition, unless the
court, on motion and for good cause shown, orders that the cost be
borne or shared by another party. Existing law provides that any
other party or the deponent is authorized to obtain a copy of the
transcript at the expense of that party or deponent. Existing law
requires the requesting attorney or party appearing in propria
persona to timely pay the deposition officer or the entity providing
the services of the deposition officer for the transcription or copy
of the transcription and any other requested deposition product or
service, as defined.
This bill would prohibit a specified court ruling from being
construed to alter the standards by which a court acquires personal
jurisdiction over a nonparty to an action.
(7) Existing law governs the admissibility of evidence in court
proceedings and permits a person to claim an evidentiary privilege
for confidential communications between that person and a specified
individual, including, but not limited to, a lawyer, physician,
clergy member, sexual assault counselor, and domestic violence
counselor, among others, and the communication is presumed to have
been made in confidence with the burden lying with the opponent of
the claim of privilege to rebut the presumption. Existing law also
recognizes a lawyer referral service-client privilege and a human
trafficking caseworker-victim privilege, but does not extend the
presumption of confidentiality to communications between those
parties. Existing law provides that the right to claim the
evidentiary privilege for confidential communications is waived if
any holder of the privilege has, without coercion, disclosed a
significant part of the communication or consented to disclosure of
the communication, as specified.
This bill would provide that the communications made between a
client and a lawyer referral service, and between a victim and a
human trafficking counselor, are also presumed to be confidential,
such that the opponent of the privilege would have the burden to
rebut the presumption. The bill would also provide that the
evidentiary privilege for confidential communications made between a
victim, as defined, and a human trafficking counselor are presumed to
have been made in confidence, and would apply the above-described
waiver provision to the disclosure of those communications. The bill
would also make technical, nonsubstantive changes to these
provisions.
(8) Existing law authorizes the county clerk to issue a
confidential marriage license upon the personal appearance together
of the parties to be married, except as specified, and their payment
of certain fees. Existing law provides that a confidential marriage
license is valid only for a period of 90 days after its issuance by
the county clerk and requires that it be used only in the county in
which it was issued.
This bill would delete the requirement that a confidential
marriage license only be used in the county in which it was issued.
(9) Existing law governs the tort liability and immunity of, and
claims and actions against, a public entity. Existing law provides
that neither a public entity nor a public employee is liable to a
person who participates in a hazardous recreational activity, defined
to include, among other things, bicycle racing or jumping and
mountain bicycling.
This bill would include bicycle motocross within the definition of
a hazardous recreational activity.
(10) Existing law requires the official bond of the Secretary of
State to be filed in the office of the Treasurer after it is
recorded.
This bill would repeal that provision.
(11) Existing law exempts the state, any county, city, district,
or other political subdivision, any public officer or body, acting in
his or her official capacity on behalf of the state, county, city,
district, or other district or other political subdivision, from
paying or depositing any fee for the filing of any document or paper,
for the performance of any official service, or for the filing of
any stipulation or agreement which may constitute an appearance in
any court by any other party to the stipulation or agreement, except
as specified.
Existing law requires the property of a decedent's estate to be
appraised by a probate referee, the personal representative of the
estate, or an independent expert, as specified. Existing law provides
that, upon designation by the court, a probate referee has all the
powers of a referee of the superior court.
This bill would specify that a probate referee is included within
the exemption described above.
(12) Existing law authorizes the Secretary of State to appoint and
commission notaries public in such number as the secretary deems
necessary for the public convenience. Existing law authorizes the
secretary to refuse to appoint any person as notary public or to
revoke or suspend the commission of any notary public upon specified
grounds. Existing law also makes specified violations by a notary
public punishable by a civil penalty not to exceed $750 or $1,500.
This bill would make a willful failure by a notary public to
discharge fully and faithfully any of the duties or responsibilities
of a notary public punishable by a civil fine not to exceed $1,500.
(13) Existing law requires the court to grant a fee waiver to an
applicant at any stage of the proceedings at both the appellate and
trial court levels if the applicant meets specified standards of
eligibility and application requirements, including a person who is
receiving certain public benefits, such as Supplemental Security
Income. An initial fee waiver excuses the applicant from paying fees
for the first pleading or other paper, and other court fees and
costs, unless the court orders the applicant to make partial
payments, as specified.
This bill would authorize the court, upon the establishment of a
conservatorship or guardianship, to collect all or part of any fees
waived from the estate of the conservatee or ward if the court finds
that the estate has the ability to pay the fees, or a portion
thereof, immediately, over a period of time, or under an equitable
agreement, without using moneys that normally would pay for the
common necessaries of life for the applicant and the applicant's
family. This bill would provide, for the purposes of these provisions
for fee waivers, that an "applicant" is deemed to be a conservatee,
ward, or person for whom a conservatorship or guardianship is sought,
and "petitioner" is deemed to be the conservator, guardian, or
person or persons seeking to establish the conservatorship or
guardianship. This bill would permit a person who files a petition
for appointment of a fiduciary in a guardianship or conservatorship,
or files pleadings as the appointed fiduciary of a conservatee or
ward, when the financial condition of the conservatee or ward meets
the standards for a fee waiver, to proceed without paying court fees
and costs. This bill would also clarify that assessments for
specified court investigations for the establishment of a
conservatorship or guardianship are included as court fees and costs
to be excused under an initial fee waiver.
(14) Existing law authorizes a county to establish an interagency
domestic violence death review team to assist local agencies in
identifying and reviewing domestic violence deaths, and authorizes
the confidential disclosure by an individual or agency of written or
oral information, including those that are subject to the evidentiary
privilege for confidential communications, as specified.
This bill would authorize the confidential disclosure of
communications protected by the human trafficking caseworker-victim
privilege. The bill would also revise a cross-reference in this
provision.
(15) Existing law governs the disposal of a decedent's estate by
intestate succession and declares that the surviving spouse or
surviving domestic partner is entitled to a specified share of the
decedent's separate property that is not effectively disposed of by
will.
This bill would delete the reference to a surviving domestic
partner from this provision.
(16) The California Environmental Quality Act (CEQA) requires a
lead agency, as defined, to prepare, or cause to be prepared, and
certify the completion of, an environmental impact report (EIR) on a
project that it proposes to carry out or approve that may have a
significant effect on the environment or to adopt a negative
declaration if it finds that the project will not have that effect.
CEQA also requires a lead agency to prepare a mitigated negative
declaration for a project that may have a significant effect on the
environment if revisions in the project would avoid or mitigate that
effect and there is no substantial evidence that the project, as
revised, would have a significant effect on the environment.
CEQA establishes procedures for creating the administrative record
and judicial review procedure for any action or proceeding brought
to challenge the lead agency's decision to certify the EIR or to
grant project approvals.
The Jobs and Economic Improvement Through Environmental Leadership
Act of 2011 establishes, until January 1, 2017, alternative
procedures for creating the administrative record and specified
judicial review procedures for the judicial review of the EIR and
approvals granted for a leadership project related to the development
of a residential, retail, commercial, sports, cultural,
entertainment, or recreational use project, or clean renewable energy
or clean energy manufacturing project. The act authorizes the
Governor, upon application, to certify a leadership project for
streamlining pursuant to the act if certain conditions are met. The
act requires the Judicial Council to report to the Legislature on or
before January 1, 2015, on the effects of the act, including specific
information on benefits, costs, and detriments.
The bill would require instead that the Judicial Council report to
the Legislature on or before January 1, 2017, on the effects of the
act on the administration of justice.
(17) Existing law requires each county to provide cash assistance
and other social services to needy families through the California
Work Opportunity and Responsibility to Kids (CalWORKs) program using
federal Temporary Assistance to Needy Families block grant program,
state, and county funds. Under the CalWORKs program, a county may
make a restricted payment directly to a vendor when a recipient of
homeless assistance benefits has mismanaged funds or has requested
the restricted payment.
Existing law authorizes a county, or 2 or more counties, to
implement 3-year CalWORKs demonstration projects to test alternative
methods of service delivery, if the county receives approval from the
Director of Social Services. Existing law also specifically
authorizes the director to conduct a demonstration project in Kern
County pertaining to restricted payments under the CalWORKs program.
Existing law limits the duration of this demonstration project to a
period of not more than 3 years.
This bill would repeal the provisions authorizing that
demonstration project in Kern County.
(18) The bill would also make technical, nonsubstantive changes to
provisions relating to the courts, health facilities, and
conservatorships.
(19) This bill would incorporate additional changes to Section
1936 of the Civil Code proposed by AB 1981 that would become
operative if this bill and AB 1981 are both enacted and this bill is
enacted last.
(20) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature in amending
Sections 415.46, 1174.25, and 1174.3 of the Code of Civil Procedure
to appropriately update statutory language and statutory forms to
properly reflect the changes to law enacted by Assembly Bill 2610,
Chapter 562 of the Statutes of 2012.
SEC. 2. Section 56.06 of the Civil Code is amended to read:
56.06. (a) Any business organized for the purpose of maintaining
medical information, as defined in subdivision (g) of Section 56.05,
in order to make the information available to an individual or to a
provider of health care at the request of the individual or a
provider of health care, for purposes of allowing the individual to
manage his or her information, or for the diagnosis and treatment of
the individual, shall be deemed to be a provider of health care
subject to the requirements of this part. However, nothing in this
section shall be construed to make a business specified in this
subdivision a provider of health care for purposes of any law other
than this part, including laws that specifically incorporate by
reference the definitions of this part.
(b) Any business that offers software or hardware to consumers,
including a mobile application or other related device that is
designed to maintain medical information, as defined in subdivision
(j) of Section 56.05, in order to make the information available to
an individual or a provider of health care at the request of the
individual or a provider of health care, for purposes of allowing the
individual to manage his or her information, or for the diagnosis,
treatment, or management of a medical condition of the individual,
shall be deemed to be a provider of health care subject to the
requirements of this part. However, nothing in this section shall be
construed to make a business specified in this subdivision a provider
of health care for purposes of any law other than this part,
including laws that specifically incorporate by reference the
definitions of this part.
(c) Any business described in subdivision (a) or (b) shall
maintain the same standards of confidentiality required of a provider
of health care with respect to medical information disclosed to the
business.
(d) Any business described in subdivision (a) or (b) shall be
subject to the penalties for improper use and disclosure of medical
information prescribed in this part.
SEC. 3. Section 1633.3 of the Civil Code, as amended by Section
16.5 of Chapter 605 of the Statutes of 2013, is amended to read:
1633.3. (a) Except as otherwise provided in subdivisions (b) and
(c), this title applies to electronic records and electronic
signatures relating to a transaction.
(b) This title does not apply to transactions subject to the
following laws:
(1) A law governing the creation and execution of wills, codicils,
or testamentary trusts.
(2) Division 1 (commencing with Section 1101) of the Uniform
Commercial Code, except Sections 1206 and 1306.
(3) Divisions 3 (commencing with Section 3101), 4 (commencing with
Section 4101), 5 (commencing with Section 5101), 8 (commencing with
Section 8101), 9 (commencing with Section 9101), and 11 (commencing
with Section 11101) of the Uniform Commercial Code.
(4) A law that requires that specifically identifiable text or
disclosures in a record or a portion of a record be separately
signed, including initialed, from the record. However, this paragraph
does not apply to Section 1677 or 1678 of this code or Section 1298
of the Code of Civil Procedure.
(c) This title does not apply to any specific transaction
described in Section 17511.5 of the Business and Professions Code,
Section 56.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6,
1689.7, or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
1789.16, or 1793.23 of, Chapter 1 (commencing with Section 1801) of
Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
1917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i, 2924j,
2924.3, or 2937 of, Article 1.5 (commencing with Section 2945) of
Chapter 2 of Title 14 of Part 4 of Division 3 of, Section 2954.5 or
2963 of, Chapter 2b (commencing with Section 2981) or 2d (commencing
with Section 2985.7) of Title 14 of Part 4 of Division 3 of, Section
3071.5 of, Part 5 (commencing with Section 4000) of Division 4 of, or
Part 5.3 (commencing with Section 6500) of Division 4 of this code,
subdivision (b) of Section 18608 or Section 22328 of the Financial
Code, Section 1358.15, 1365, 1368.01, 1368.1, 1371, or 18035.5 of the
Health and Safety Code, Section 662, paragraph (2) of subdivision
(a) of Section 663, 664, 667.5, 673, 677, paragraph (2) of
subdivision (a) of Section 678, subdivisions (a) and (b) of Section
678.1, Section 786, 10113.7, 10127.7, 10127.9, 10127.10, 10192.18,
10199.44, 10199.46, 10235.16, 10235.40, 10509.4, 10509.7, 11624.09,
or 11624.1 of the Insurance Code, Section 779.1, 10010.1, or 16482 of
the Public Utilities Code, or Section 9975 or 11738 of the Vehicle
Code. An electronic record may not be substituted for any notice that
is required to be sent pursuant to Section 1162 of the Code of Civil
Procedure. Nothing in this subdivision shall be construed to
prohibit the recordation of any document with a county recorder by
electronic means.
(d) This title applies to an electronic record or electronic
signature otherwise excluded from the application of this title under
subdivision (b) when used for a transaction subject to a law other
than those specified in subdivision (b).
(e) A transaction subject to this title is also subject to other
applicable substantive law.
(f) The exclusion of a transaction from the application of this
title under subdivision (b) or (c) shall be construed only to exclude
the transaction from the application of this title, but shall not be
construed to prohibit the transaction from being conducted by
electronic means if the transaction may be conducted by electronic
means under any other applicable law.
(g) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
SEC. 4. Section 1633.3 of the Civil Code, as added by Section 3 of
Chapter 369 of the Statutes of 2013, is amended to read:
1633.3. (a) Except as otherwise provided in subdivisions (b) and
(c), this title applies to electronic records and electronic
signatures relating to a transaction.
(b) This title does not apply to transactions subject to the
following laws:
(1) A law governing the creation and execution of wills, codicils,
or testamentary trusts.
(2) Division 1 (commencing with Section 1101) of the Uniform
Commercial Code, except Sections 1206 and 1306.
(3) Divisions 3 (commencing with Section 3101), 4 (commencing with
Section 4101), 5 (commencing with Section 5101), 8 (commencing with
Section 8101), 9 (commencing with Section 9101), and 11 (commencing
with Section 11101) of the Uniform Commercial Code.
(4) A law that requires that specifically identifiable text or
disclosures in a record or a portion of a record be separately
signed, including initialed, from the record. However, this paragraph
does not apply to Section 1677 or 1678 of this code or Section 1298
of the Code of Civil Procedure.
(c) This title does not apply to any specific transaction
described in Section 17511.5 of the Business and Professions Code,
Section 56.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6,
1689.7, or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
1789.16, or 1793.23 of, Chapter 1 (commencing with Section 1801) of
Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
1917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i, 2924j,
2924.3, or 2937 of, Article 1.5 (commencing with Section 2945) of
Chapter 2 of Title 14 of Part 4 of Division 3 of, Section 2954.5 or
2963 of, Chapter 2b (commencing with Section 2981) or 2d (commencing
with Section 2985.7) of Title 14 of Part 4 of Division 3 of, Section
3071.5 of Part 5 (commencing with Section 4000) of Division 4 of, or
Part 5.3 (commencing with Section 6500) of Division 4 of this code,
subdivision (b) of Section 18608 or Section 22328 of the Financial
Code, Section 1358.15, 1365, 1368.01, 1368.1, 1371, or 18035.5 of the
Health and Safety Code, Section 662, 663, 664, 667.5, 673, 677, 678,
678.1, 786, 10086, 10113.7, 10127.7, 10127.9, 10127.10, 10192.18,
10199.44, 10199.46, 10235.16, 10235.40, 10509.4, 10509.7, 11624.09,
or 11624.1 of the Insurance Code, Section 779.1, 10010.1, or 16482 of
the Public Utilities Code, or Section 9975 or 11738 of the Vehicle
Code. An electronic record may not be substituted for any notice that
is required to be sent pursuant to Section 1162 of the Code of Civil
Procedure. Nothing in this subdivision shall be construed to
prohibit the recordation of any document with a county recorder by
electronic means.
(d) This title applies to an electronic record or electronic
signature otherwise excluded from the application of this title under
subdivision (b) when used for a transaction subject to a law other
than those specified in subdivision (b).
(e) A transaction subject to this title is also subject to other
applicable substantive law.
(f) The exclusion of a transaction from the application of this
title under subdivision (b) or (c) shall be construed only to exclude
the transaction from the application of this title, but shall not be
construed to prohibit the transaction from being conducted by
electronic means if the transaction may be conducted by electronic
means under any other applicable law.
(g) This section shall become operative on January 1, 2019.
SEC. 5. Section 1936 of the Civil Code, as amended by Section 1 of
Chapter 549 of the Statutes of 2013, is amended to read:
1936. (a) For the purpose of this section, the following
definitions shall apply:
(1) "Rental company" means a person or entity in the business of
renting passenger vehicles to the public.
(2) "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.
(3) "Authorized driver" means (A) the renter, (B) the renter's
spouse if that person is a licensed driver and satisfies the rental
company's minimum age requirement, (C) the renter's employer or
coworker if he or she is engaged in business activity with the
renter, is a licensed driver, and satisfies the rental company's
minimum age requirement, and (D) a person expressly listed by the
rental company on the renter's contract as an authorized driver.
(4) (A) "Customer facility charge" means any fee, including an
alternative fee, required by an airport to be collected by a rental
company from a renter for any of the following purposes:
(i) To finance, design, and construct consolidated airport car
rental facilities.
(ii) To finance, design, construct, and operate common-use
transportation systems that move passengers between airport terminals
and those consolidated car rental facilities, and acquire vehicles
for use in that system.
(iii) To finance, design, and construct terminal modifications
solely to accommodate and provide customer access to common-use
transportation systems.
(B) The aggregate amount to be collected shall not exceed the
reasonable costs, as determined by an audit, by an independent
auditor, paid for by the airport, to finance, design, and construct
those facilities. The auditor shall independently examine and
substantiate the necessity for and the amount of the customer
facility charge, including whether the airport's actual or projected
costs are supported and justified, any steps the airport may take to
limit costs, potential alternatives for meeting the airport's revenue
needs other than the collection of the fee, and whether and to what
extent car rental companies or other businesses or individuals using
the facility or common-use transportation system may pay for the
costs associated with these facilities and systems other than the fee
from rental customers, or whether the airport did not comply with
any provision of this subparagraph. Copies of the audit shall be
provided to the Assembly and Senate Committees on Judiciary, the
Assembly Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport's
Internet Web site. In the case of a customer facility charge for a
common-use transportation system, the audit also shall consider the
reasonable costs of providing the transit system or busing network
pursuant to clause (ii) of subparagraph (A). Any audit required by
this subparagraph may be included as a part of an audit of an airport'
s finances. Notwithstanding clause (iii) of subparagraph (A), the
fees designated as a customer facility charge shall not be used to
pay for terminal expansion, gate expansion, runway expansion, changes
in hours of operation, or changes in the number of flights arriving
or departing from the airport.
(C) Except as provided in subparagraph (D), the authorization
given pursuant to this section for an airport to impose a customer
facility charge shall become inoperative when the bonds used for
financing are paid.
(D) If a bond or other form of indebtedness is not used for
financing, or the bond or other form of indebtedness used for
financing has been paid, the Oakland International Airport may
require the collection of a customer facility charge for a period of
up to 10 years from the imposition of the charge for the purposes
allowed by, and subject to the conditions imposed by, this section.
(5) "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.
(6) "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:
(A) For the purpose of identifying, diagnosing, or monitoring
functions related to the potential need to repair, service, or
perform maintenance on the rental vehicle.
(B) 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.
(7) "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."
(8) "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.
(9) "Membership program" means a service offered by a rental
company that permits customers to bypass the rental counter and go
directly to the car previously reserved. A membership program shall
meet all of the following requirements:
(A) 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.
(B) 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.
(C) The renter may terminate enrollment at any time.
(D) 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.
(E) An employee designated to receive the form specified in
subparagraph (C) of paragraph (1) of subdivision (t) is present at
the lot where the renter takes possession of the car, to receive any
change in the rental agreement from the renter.
(10) "Passenger vehicle" means a passenger vehicle as defined in
Section 465 of the Vehicle Code.
(b) Except as limited by subdivision (c), a rental company and a
renter may agree that the renter will be responsible for no more than
all of the following:
(1) Physical or mechanical damage to the rented vehicle up to its
fair market value, as determined in the customary market for the sale
of that vehicle, resulting from collision regardless of the cause of
the damage.
(2) Loss due to theft of the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, provided that the rental company establishes by clear and
convincing evidence that the renter or the authorized driver failed
to exercise ordinary care while in possession of the vehicle. In
addition, the renter shall be presumed to have no liability for any
loss due to theft if (A) an authorized driver has possession of the
ignition key furnished by the rental company or an authorized driver
establishes that the ignition key furnished by the rental company was
not in the vehicle at the time of the theft, and (B) an authorized
driver files an official report of the theft with the police or other
law enforcement agency within 24 hours of learning of the theft and
reasonably cooperates with the rental company and the police or other
law enforcement agency in providing information concerning the
theft. The presumption set forth in this paragraph is a presumption
affecting the burden of proof which the rental company may rebut by
establishing that an authorized driver committed, or aided and
abetted the commission of, the theft.
(3) Physical damage to the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, resulting from vandalism occurring after, or in connection
with, the theft of the rented vehicle. However, the renter shall have
no liability for any damage due to vandalism if the renter would
have no liability for theft pursuant to paragraph (2).
(4) Physical damage to the rented vehicle up to a total of five
hundred dollars ($500) resulting from vandalism unrelated to the
theft of the rented vehicle.
(5) Actual charges for towing, storage, and impound fees paid by
the rental company if the renter is liable for damage or loss.
(6) An administrative charge, which shall include the cost of
appraisal and all other costs and expenses incident to the damage,
loss, repair, or replacement of the rented vehicle.
(c) The total amount of the renter's liability to the rental
company resulting from damage to the rented vehicle shall not exceed
the sum of the following:
(1) The estimated cost of parts which the rental company would
have to pay to replace damaged vehicle parts. All discounts and price
reductions or adjustments that are or will be received by the rental
company shall be subtracted from the estimate to the extent not
already incorporated in the estimate, or otherwise promptly credited
or refunded to the renter.
(2) The estimated cost of labor to replace damaged vehicle parts,
which shall not exceed the product of (A) the rate for labor usually
paid by the rental company to replace vehicle parts of the type that
were damaged and (B) the estimated time for replacement. All
discounts and price reductions or adjustments that are or will be
received by the rental company shall be subtracted from the estimate
to the extent not already incorporated in the estimate, or otherwise
promptly credited or refunded to the renter.
(3) (A) The estimated cost of labor to repair damaged vehicle
parts, which shall not exceed the lesser of the following:
(i) The product of the rate for labor usually paid by the rental
company to repair vehicle parts of the type that were damaged and the
estimated time for repair.
(ii) The sum of the estimated labor and parts costs determined
under paragraphs (1) and (2) to replace the same vehicle parts.
(B) All discounts and price reductions or adjustments that are or
will be received by the rental company shall be subtracted from the
estimate to the extent not already incorporated in the estimate, or
otherwise promptly credited or refunded to the renter.
(4) For the purpose of converting the estimated time for repair
into the same units of time in which the rental rate is expressed, a
day shall be deemed to consist of eight hours.
(5) Actual charges for towing, storage, and impound fees paid by
the rental company.
(6) The administrative charge described in paragraph (6) of
subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
estimated cost for parts and labor is more than one hundred dollars
($100) up to and including five hundred dollars ($500), (B) one
hundred dollars ($100) if the total estimated cost for parts and
labor exceeds five hundred dollars ($500) up to and including one
thousand five hundred dollars ($1,500), and (C) one hundred fifty
dollars ($150) if the total estimated cost for parts and labor
exceeds one thousand five hundred dollars ($1,500). An administrative
charge shall not be imposed if the total estimated cost of parts and
labor is one hundred dollars ($100) or less.
(d) (1) The total amount of an authorized driver's liability to
the rental company, if any, for damage occurring during the
authorized driver's operation of the rented vehicle shall not exceed
the amount of the renter's liability under subdivision (c).
(2) A rental company shall not recover from the renter or other
authorized driver an amount exceeding the renter's liability under
subdivision (c).
(3) A claim against a renter resulting from damage or loss,
excluding loss of use, to a rental vehicle shall be reasonably and
rationally related to the actual loss incurred. A rental company
shall mitigate damages where possible and shall not assert or collect
a claim for physical damage which exceeds the actual costs of the
repairs performed or the estimated cost of repairs, if the rental
company chooses not to repair the vehicle, including all discounts
and price reductions. However, if the vehicle is a total loss
vehicle, the claim shall not exceed the total loss vehicle value
established in accordance with procedures that are customarily used
by insurance companies when paying claims on total loss vehicles,
less the proceeds from salvaging the vehicle, if those proceeds are
retained by the rental company.
(4) If insurance coverage exists under the renter's applicable
personal or business insurance policy and the coverage is confirmed
during regular business hours, the renter may require that the rental
company submit any claims to the renter's applicable personal or
business insurance carrier. The rental company shall not make any
written or oral representations that it will not present claims or
negotiate with the renter's insurance carrier. For purposes of this
paragraph, confirmation of coverage includes telephone confirmation
from insurance company representatives during regular business hours.
Upon request of the renter and after confirmation of coverage, the
amount of claim shall be resolved between the insurance carrier and
the rental company. The renter shall remain responsible for payment
to the rental car company for any loss sustained that the renter's
applicable personal or business insurance policy does not cover.
(5) A rental company shall not recover from the renter or other
authorized driver for an item described in subdivision (b) to the
extent the rental company obtains recovery from another person.
(6) This section applies only to the maximum liability of a renter
or other authorized driver to the rental company resulting from
damage to the rented vehicle and not to the liability of another
person.
(e) (1) Except as provided in subdivision (f), a damage waiver
shall provide or, if not expressly stated in writing, shall be deemed
to provide that the renter has no liability for a damage, loss, loss
of use, or a cost or expense incident thereto.
(2) Except as provided in subdivision (f), every limitation,
exception, or exclusion to a damage waiver is void and unenforceable.
(f) A rental company may provide in the rental contract that a
damage waiver does not apply under any of the following
circumstances:
(1) Damage or loss results from an authorized driver's (A)
intentional, willful, wanton, or reckless conduct, (B) operation of
the vehicle under the influence of drugs or alcohol in violation of
Section 23152 of the Vehicle Code, (C) towing or pushing anything, or
(D) operation of the vehicle on an unpaved road if the damage or
loss is a direct result of the road or driving conditions.
(2) Damage or loss occurs while the vehicle is (A) used for
commercial hire, (B) used in connection with conduct that could be
properly charged as a felony, (C) involved in a speed test or contest
or in driver training activity, (D) operated by a person other than
an authorized driver, or (E) operated outside the United States.
(3) An authorized driver who has (A) provided fraudulent
information to the rental company, or (B) provided false information
and the rental company would not have rented the vehicle if it had
instead received true information.
(g) (1) A rental company that offers or provides a damage waiver
for any consideration in addition to the rental rate shall clearly
and conspicuously disclose the following information in the rental
contract or holder in which the contract is placed and, also, in
signs posted at the place, such as the counter, where the renter
signs the rental contract, and, for renters who are enrolled in the
rental company's membership program, in a sign that shall be posted
in a location clearly visible to those renters as they enter the
location where their reserved rental cars are parked or near the exit
of the bus or other conveyance that transports the enrollee to a
reserved car: (A) the nature of the renter's liability, such as
liability for all collision damage regardless of cause, (B) the
extent of the renter's liability, such as liability for damage or
loss up to a specified amount, (C) the renter's personal insurance
policy or the credit card used to pay for the car rental transaction
may provide coverage for
all or a portion of the renter's potential liability, (D) the renter
should consult with his or her insurer to determine the scope of
insurance coverage, including the amount of the deductible, if any,
for which the renter is obligated, (E) the renter may purchase an
optional damage waiver to cover all liability, subject to whatever
exceptions the rental company expressly lists that are permitted
under subdivision (f), and (F) the range of charges for the damage
waiver.
(2) In addition to the requirements of paragraph (1), a rental
company that offers or provides a damage waiver shall orally disclose
to all renters, except those who are 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. The renter's receipt of the
oral disclosure shall be demonstrated through the renter's
acknowledging receipt of the oral disclosure near that part of the
contract where the renter indicates, by the renter's own initials,
his or her acceptance or declination of the damage waiver. Adjacent
to that same part, the contract also shall state that the damage
waiver is optional. Further, the contract for these renters shall
include a clear and conspicuous written disclosure that the damage
waiver may be duplicative of coverage that the customer maintains
under his or her own policy of motor vehicle insurance.
(3) The following is an example, for purposes of illustration and
not limitation, of a notice fulfilling the requirements of paragraph
(1) for a rental company that imposes liability on the renter for
collision damage to the full value of the vehicle:
"NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY AND OPTIONAL DAMAGE
WAIVER
You are responsible for all collision damage to the rented vehicle
even if someone else caused it or the cause is unknown. You are
responsible for the cost of repair up to the value of the vehicle,
and towing, storage, and impound fees.
Your own insurance, or the issuer of the credit card you use to
pay for the car rental transaction, may cover all or part of your
financial responsibility for the rented vehicle. You should check
with your insurance company, or credit card issuer, to find out about
your coverage and the amount of the deductible, if any, for which
you may be liable.
Further, if you use a credit card that provides coverage for your
potential liability, you should check with the issuer to determine if
you must first exhaust the coverage limits of your own insurance
before the credit card coverage applies.
The rental company will not hold you responsible if you buy a
damage waiver. But a damage waiver will not protect you if (list
exceptions)."
(A) When the above notice is printed in the rental contract or
holder in which the contract is placed, the following shall be
printed immediately following the notice:
"The cost of an optional damage waiver is $____ for every (day or
week)."
(B) When the above notice appears on a sign, the following shall
appear immediately adjacent to the notice:
"The cost of an optional damage waiver is $____ to $____ for every
(day or week), depending upon the vehicle rented."
(h) Notwithstanding any other provision of law, a rental company
may sell a damage waiver subject to the following rate limitations
for each full or partial 24-hour rental day for the damage waiver.
(1) For rental vehicles that the rental company designates as an
"economy car," "subcompact car," "compact car," or another term
having similar meaning when offered for rental, or another vehicle
having a manufacturer's suggested retail price of nineteen thousand
dollars ($19,000) or less, the rate shall not exceed nine dollars
($9).
(2) For rental vehicles that have a manufacturer's suggested
retail price from nineteen thousand one dollars ($19,001) to
thirty-four thousand nine hundred ninety-nine dollars ($34,999),
inclusive, and that are also either vehicles of next year's model, or
not older than the previous year's model, the rate shall not exceed
fifteen dollars ($15). For those rental vehicles older than the
previous year's model-year, the rate shall not exceed nine dollars
($9).
(i) The manufacturer's suggested retail prices described in
subdivision (h) shall be adjusted annually to reflect changes from
the previous year in the Consumer Price Index. For the purposes of
this section, "Consumer Price Index" means the United States Consumer
Price Index for All Urban Consumers, for all items.
(j) A rental company that disseminates in this state an
advertisement containing a rental rate shall include in that
advertisement a clearly readable statement of the charge for a damage
waiver and a statement that a damage waiver is optional.
(k) (1) A rental company shall not require the purchase of a
damage waiver, optional insurance, or another optional good or
service.
(2) A rental company shall not engage in any unfair, deceptive, or
coercive conduct to induce a renter to purchase the damage waiver,
optional insurance, or another optional good or service, including
conduct such as, but not limited to, refusing to honor the renter's
reservation, limiting the availability of vehicles, requiring a
deposit, or debiting or blocking the renter's credit card account for
a sum equivalent to a deposit if the renter declines to purchase the
damage waiver, optional insurance, or another optional good or
service.
(l) (1) In the absence of express permission granted by the renter
subsequent to damage to, or loss of, the vehicle, a rental company
shall not seek to recover any portion of a claim arising out of
damage to, or loss of, the rented vehicle by processing a credit card
charge or causing a debit or block to be placed on the renter's
credit card account.
(2) A rental company shall not engage in any unfair, deceptive, or
coercive tactics in attempting to recover or in recovering on any
claim arising out of damage to, or loss of, the rented vehicle.
(m)
(1) A customer facility charge may be collected by a rental
company under the following circumstances:
(A) Collection of the fee by the rental company is required by an
airport operated by a city, a county, a city and county, a joint
powers authority, a special district, or the San Diego County
Regional Airport Authority formed pursuant to Division 17 (commencing
with Section 170000) of the Public Utilities Code.
(B) The fee is calculated on a per contract basis or as provided
in paragraph (2).
(C) The fee is a user fee, not a tax imposed upon real property or
an incidence of property ownership under Article XIII D of the
California Constitution.
(D) Except as otherwise provided in subparagraph (E), the fee
shall be ten dollars ($10) per contract or the amount provided in
paragraph (2).
(E) The fee for a consolidated rental car facility shall be
collected only from customers of on-airport rental car companies. If
the fee imposed by the airport is for both a consolidated rental car
facility and a common-use transportation system, the fee collected
from customers of on-airport rental car companies shall be ten
dollars ($10) or the amount provided in paragraph (2), but the fee
imposed on customers of off-airport rental car companies who are
transported on the common-use transportation system is proportionate
to the costs of the common-use transportation system only. The fee is
uniformly applied to each class of on-airport or off-airport
customers, provided that the airport requires off-airport customers
to use the common-use transportation system. For purposes of this
subparagraph, "on-airport rental car company" means a rental company
operating under an airport property lease or an airport concession or
license agreement whose customers use or will use the consolidated
rental car facility and the collection of the fee as to those
customers is consistent with subparagraph (C).
(F) Revenues collected from the fee do not exceed the reasonable
costs of financing, designing, and constructing the facility and
financing, designing, constructing, and operating any common-use
transportation system, or acquiring vehicles for use in that system,
and shall not be used for any other purpose.
(G) The fee is separately identified on the rental agreement.
(H) This paragraph does not apply to fees which are governed by
Section 50474.1 of the Government Code or Section 57.5 of the San
Diego Unified Port District Act.
(I) For any airport seeking to require rental car companies to
collect an alternative customer facility charge pursuant to paragraph
(2), the following provisions apply:
(i) Notwithstanding Section 10231.5 of the Government Code, the
airport shall provide reports on an annual basis to the Senate and
Assembly Committees on Judiciary detailing all of the following:
(I) The total amount of the customer facility charge collected.
(II) How the funds are being spent.
(III) The amount of and reason for any changes in the airport's
budget or financial needs for the facility or common-use
transportation system.
(IV) Whether airport concession fees authorized by Section 1936.01
have increased since the prior report, if any.
(ii) (I) The airport shall complete the audit required by
subparagraph (B) of paragraph (4) of subdivision (a) prior to initial
collection of the customer facility charge. Notwithstanding Section
10231.5 of the Government Code, copies of the audit shall be provided
to the Assembly and Senate Committees on Judiciary, the Assembly
Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport's
Internet Web site.
(II) Prior to any increase pursuant to paragraph (2), the airport
shall update the information provided in the initial collection audit
pursuant to subclause (I). Notwithstanding Section 10231.5 of the
Government Code, copies of the updated audit shall be provided to the
Assembly and Senate Committees on Judiciary, the Assembly Committee
on Transportation, and the Senate Committee on Transportation and
Housing and shall be posted on the airport's Internet Web site.
(III) An audit shall be completed every three years after initial
collection only if the customer facility charge is collected for the
purpose of operating a common-use transportation system or to acquire
vehicles for use in such a system pursuant to clause (ii) of
subparagraph (A) of paragraph (4) of subdivision (a). A regularly
conducted audit of airport finances that includes the customer
facility charge information, that satisfies the requirements of
subparagraph (B) of paragraph (4) of subdivision (a), and is produced
in accordance with the generally accepted accounting principles of
the Government Accounting Standards Board, shall satisfy the
requirements of this subclause. This obligation shall continue until
the fee authorization becomes inoperative pursuant to subparagraph
(C) of paragraph (4) of subdivision (a). Notwithstanding Section
10231.5 of the Government Code, the information reported pursuant to
this subclause shall be compiled into one document, shall be provided
to the Assembly and Senate Committees on Judiciary, the Assembly
Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport's
Internet Web site accessible to the public. The information reported
shall be contained within one easily accessible page contained within
the airport's Internet Web site.
(IV) This section shall not be construed to require an airport to
audit a common-use transportation system not financed by a customer
facility charge and used for the purposes permitted pursuant to
clause (ii) of subparagraph (A) of paragraph (4) of subdivision (a).
(V) The airport shall post on the airport's Internet Web site
copies of the completed audits required by this clause for a period
of six years following the audit's completion.
(iii) Use of the bonds shall be limited to construction and design
of the consolidated rental car facility, terminal modifications, and
operating costs of the common-use transportation system, as
specified in paragraph (4) of subdivision (a).
(2) Any airport may require rental car companies to collect an
alternative customer facility charge under the following conditions:
(A) The airport first conducts a publicly noticed hearing pursuant
to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)
of Part 1 of Division 2 of Title 5 of the Government Code) to review
the costs of financing the design and construction of a consolidated
rental car facility and the design, construction, and operation of
any common-use transportation system in which all of the following
occur:
(i) The airport establishes the amount of revenue necessary to
finance the reasonable cost to design and construct a consolidated
rental car facility and to design, construct, and operate any
common-use transportation system, or acquire vehicles for use in that
system, based on evidence presented during the hearing.
(ii) The airport finds, based on evidence presented during the
hearing, that the fee authorized in paragraph (1) will not generate
sufficient revenue to finance the reasonable costs to design and
construct a consolidated rental car facility and to design,
construct, and operate any common-use transportation system, or
acquire vehicles for use in that system.
(iii) The airport finds that the reasonable cost of the project
requires the additional amount of revenue that would be generated by
the proposed daily rate, including any rate increase, authorized
pursuant to this paragraph.
(iv) The airport outlines each of the following:
(I) Steps it has taken to limit costs.
(II) Other potential alternatives for meeting its revenue needs
other than the collection of the fee.
(III) The extent to which rental car companies or other businesses
or individuals using the facility or common-use transportation
system will pay for the costs associated with these facilities and
systems other than the fee from rental customers.
(B) The airport may not require the fee authorized in this
paragraph to be collected at any time that the fee authorized in
paragraph (1) of this subdivision is being collected.
(C) Pursuant to the procedure set forth in this subdivision, the
fee may be collected at a rate charged on a per-day basis subject to
the following conditions:
(i) Commencing January 1, 2011, the amount of the fee may not
exceed six dollars ($6) per day.
(ii) Commencing January 1, 2014, the amount of the fee may not
exceed seven dollars and fifty cents ($7.50) per day.
(iii) Commencing January 1, 2017, and thereafter, the amount of
the fee may not exceed nine dollars ($9) per day.
(iv) At no time shall the fee authorized in this paragraph be
collected from any customer for more than five days for each
individual rental car contract.
(v) An airport subject to this paragraph shall initiate the
process for obtaining the authority to require or increase the
alternative fee no later than January 1, 2018. Any airport that
obtains the authority to require or increase an alternative fee shall
be authorized to continue collecting that fee until the fee
authorization becomes inoperative pursuant to subparagraph (C) of
paragraph (4) of subdivision (a).
(3) Notwithstanding any other provision of law, including, but not
limited to, Part 1 (commencing with Section 6001) to Part 1.7
(commencing with Section 7280), inclusive, of Division 2 of the
Revenue and Taxation Code, the fees collected pursuant to this
section, or another law whereby a local agency operating an airport
requires a rental car company to collect a facility financing fee
from its customers, are not subject to sales, use, or transaction
taxes.
(n) (1) A rental company shall only advertise, quote, and charge a
rental rate that includes the entire amount except taxes, a customer
facility charge, if any, and a mileage charge, if any, that a renter
must pay to hire or lease the vehicle for the period of time to
which the rental rate applies. A rental company shall not charge in
addition to the rental rate, taxes, a customer facility charge, if
any, and a mileage charge, if any, any fee that is required to be
paid by the renter as a condition of hiring or leasing the vehicle,
including, but not limited to, required fuel or airport surcharges
other than customer facility charges, nor a fee for transporting the
renter to the location where the rented vehicle will be delivered to
the renter.
(2) In addition to the rental rate, taxes, customer facility
charges, if any, and mileage charges, if any, a rental company may
charge for an item or service provided in connection with a
particular rental transaction if the renter could have avoided
incurring the charge by choosing not to obtain or utilize the
optional item or service. Items and services for which the rental
company may impose an additional charge include, but are not limited
to, optional insurance and accessories requested by the renter,
service charges incident to the renter's optional return of the
vehicle to a location other than the location where the vehicle was
hired or leased, and charges for refueling the vehicle at the
conclusion of the rental transaction in the event the renter did not
return the vehicle with as much fuel as was in the fuel tank at the
beginning of the rental. A rental company also may impose an
additional charge based on reasonable age criteria established by the
rental company.
(3) A rental company shall not charge a fee for authorized drivers
in addition to the rental charge for an individual renter.
(4) If a rental company states a rental rate in print
advertisement or in a telephonic, in-person, or computer-transmitted
quotation, the rental company shall disclose clearly in that
advertisement or quotation the terms of mileage conditions relating
to the advertised or quoted rental rate, including, but not limited
to, to the extent applicable, the amount of mileage and gas charges,
the number of miles for which no charges will be imposed, and a
description of geographic driving limitations within the United
States and Canada.
(5) (A) When a rental rate is stated in an advertisement,
quotation, or reservation in connection with a car rental at an
airport where a customer facility charge is imposed, the rental
company shall disclose clearly the existence and amount of the
customer facility charge. For purposes of this subparagraph,
advertisements include radio, television, other electronic media, and
print advertisements. For purposes of this subparagraph, quotations
and reservations include those that are telephonic, in-person, and
computer-transmitted. If the rate advertisement is intended to
include transactions at more than one airport imposing a customer
facility charge, a range of fees may be stated in the advertisement.
However, all rate advertisements that include car rentals at airport
destinations shall clearly and conspicuously include a toll-free
telephone number whereby a customer can be told the specific amount
of the customer facility charge to which the customer will be
obligated.
(B) If a person or entity other than a rental car company,
including a passenger carrier or a seller of travel services,
advertises or quotes a rate for a car rental at an airport where a
customer facility charge is imposed, that person or entity shall,
provided that he, she, or it is provided with information about the
existence and amount of the fee, to the extent not specifically
prohibited by federal law, clearly disclose the existence and amount
of the fee in any telephonic, in-person, or computer-transmitted
quotation at the time of making an initial quotation of a rental rate
and at the time of making a reservation of a rental car. If a rental
car company provides the person or entity with rate and customer
facility charge information, the rental car company is not
responsible for the failure of that person or entity to comply with
this subparagraph when quoting or confirming a rate to a third person
or entity.
(6) If a rental company delivers a vehicle to a renter at a
location other than the location where the rental company normally
carries on its business, the rental company shall not charge the
renter an amount for the rental for the period before the delivery of
the vehicle. If a rental company picks up a rented vehicle from a
renter at a location other than the location where the rental company
normally carries on its business, the rental company shall not
charge the renter an amount for the rental for the period after the
renter notifies the rental company to pick up the vehicle.
(o) A rental company shall not use, access, or obtain any
information relating to the renter's use of the rental vehicle that
was obtained using electronic surveillance technology, except in the
following circumstances:
(1) (A) When the equipment is used by the rental company only for
the purpose of locating a stolen, abandoned, or missing rental
vehicle after one of the following:
(i) The renter or law enforcement has informed the rental company
that the vehicle is missing or has been stolen or abandoned.
(ii) The rental vehicle has not been returned following one week
after the contracted return date, or by one week following the end of
an extension of that return date.
(iii) The rental company discovers the rental vehicle has been
stolen or abandoned, and, if stolen, it shall report the vehicle
stolen to law enforcement by filing a stolen vehicle report, unless
law enforcement has already informed the rental company that the
vehicle is missing or has been stolen or abandoned.
(B) If electronic surveillance technology is activated pursuant to
subparagraph (A), a rental company shall maintain a record, in
either electronic or written form, of information relevant to the
activation of that technology. That information shall include the
rental agreement, including the return date, and the date and time
the electronic surveillance technology was activated. The record
shall also include, if relevant, a record of written or other
communication with the renter, including communications regarding
extensions of the rental, police reports, or other written
communication with law enforcement officials. The record shall be
maintained for a period of at least 12 months from the time the
record is created and shall be made available upon the renter's
request. The rental company shall maintain and furnish explanatory
codes necessary to read the record. A rental company shall not be
required to maintain a record if electronic surveillance technology
is activated to recover a rental vehicle that is stolen or missing at
a time other than during a rental period.
(2) In response to a specific request from law enforcement
pursuant to a subpoena or search warrant.
(3) This subdivision does not prohibit a rental company from
equipping rental vehicles with GPS-based technology that provides
navigation assistance to the occupants of the rental vehicle, if the
rental company does not use, access, or obtain information relating
to the renter's use of the rental vehicle that was obtained using
that technology, except for the purposes of discovering or repairing
a defect in the technology and the information may then be used only
for that purpose.
(4) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows for the remote locking or unlocking of the vehicle at the
request of the renter, if the rental company does not use, access,
or obtain information relating to the renter's use of the rental
vehicle that was obtained using that technology, except as necessary
to lock or unlock the vehicle.
(5) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows the company to provide roadside assistance, such as
towing, flat tire, or fuel services, at the request of the renter, if
the rental company does not use, access, or obtain information
relating to the renter's use of the rental vehicle that was obtained
using that technology except as necessary to provide the requested
roadside assistance.
(6) This subdivision does not prohibit a rental company from
obtaining, accessing, or using information from electronic
surveillance technology for the sole purpose of determining the date
and time the vehicle is returned to the rental company, and the total
mileage driven and the vehicle fuel level of the returned vehicle.
This paragraph, however, shall apply only after the renter has
returned the vehicle to the rental company, and the information shall
only be used for the purpose described in this paragraph.
(p) A rental company shall not use electronic surveillance
technology to track a renter in order to impose fines or surcharges
relating to the renter's use of the rental vehicle.
(q) A renter may bring an action against a rental company for the
recovery of damages and appropriate equitable relief for a violation
of this section. The prevailing party shall be entitled to recover
reasonable attorney's fees and costs.
(r) A rental company that brings an action against a renter for
loss due to theft of the vehicle shall bring the action in the county
in which the renter resides or, if the renter is not a resident of
this state, in the jurisdiction in which the renter resides.
(s) A waiver of any of the provisions of this section shall be
void and unenforceable as contrary to public policy.
(t) (1) A rental company's disclosure requirements shall be
satisfied for renters who are enrolled in the rental company's
membership program if all of the following conditions are met:
(A) Prior to the enrollee's first rental as a participant in the
program, the renter receives, in writing, the following:
(i) All of the disclosures required by paragraph (1) of
subdivision (g), including the terms and conditions of the rental
agreement then in effect.
(ii) An Internet Web site address, as well as a contact number or
address, where the enrollee can learn of changes to the rental
agreement or to the laws of this state governing rental agreements
since the effective date of the rental company's most recent
restatement of the rental agreement and distribution of that
restatement to its members.
(B) At the commencement of each rental period, the renter is
provided, on the rental record or the folder in which it is inserted,
with a printed notice stating that he or she had either previously
selected or declined an optional damage waiver and that the renter
has the right to change
preferences.
(C) At the commencement of each rental period, the rental company
provides, on the rearview mirror, a hanger on which a statement is
printed, in a box, in at least 12-point boldface type, notifying the
renter that the collision damage waiver offered by the rental company
may be duplicative of coverage that the customer maintains under his
or her own policy of motor vehicle insurance. If it is not feasible
to hang the statement from the rearview mirror, it shall be hung from
the steering wheel.
The hanger shall provide the renter a box to initial if he or she
(not his or her employer) has previously accepted or declined the
collision damage waiver and that he or she now wishes to change his
or her decision to accept or decline the collision damage waiver, as
follows:
"/-/ If I previously accepted the collision damage waiver, I now
decline it.
/-/ If I previously declined the collision damage waiver, I now
accept it."
The hanger shall also provide a box for the enrollee to indicate
whether this change applies to this rental transaction only or to all
future rental transactions. The hanger shall also notify the renter
that he or she may make that change, prior to leaving the lot, by
returning the form to an employee designated to receive the form who
is present at the lot where the renter takes possession of the car,
to receive any change in the rental agreement from the renter.
(2) (A) This subdivision is not effective unless the employee
designated pursuant to subparagraph (E) of paragraph (8) of
subdivision (a) is actually present at the required location.
(B) This subdivision 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 rental rate; or in a telephonic, in-person, or
computer-transmitted quotation or reservation.
(u) The amendments made to this section during the 2001-02 Regular
Session of the Legislature do not affect litigation pending on or
before January 1, 2003, alleging a violation of Section 22325 of the
Business and Professions Code as it read at the time the action was
commenced.
(v) (1) When a rental company enters into a rental agreement in
the state for the rental of a vehicle to any renter who is not a
resident of this country and, as part of, or associated with, the
rental agreement, the renter purchases liability insurance, as
defined in subdivision (b) of Section 1758.85 of the Insurance Code,
from the rental company in its capacity as a rental car agent for an
authorized insurer, the rental company shall be authorized to accept,
and, if served as set forth in this subdivision, shall accept,
service of a summons and complaint and any other required documents
against the foreign renter for any accident or collision resulting
from the operation of the rental vehicle within the state during the
rental period. If the rental company has a registered agent for
service of process on file with the Secretary of State, process shall
be served on the rental company's registered agent, either by
first-class mail, return receipt requested, or by personal service.
(2) Within 30 days of acceptance of service of process, the rental
company shall provide a copy of the summons and complaint and any
other required documents served in accordance with this subdivision
to the foreign renter by first-class mail, return receipt requested.
(3) Any plaintiff, or his or her representative, who elects to
serve the foreign renter by delivering a copy of the summons and
complaint and any other required documents to the rental company
pursuant to paragraph (1) shall agree to limit his or her recovery
against the foreign renter and the rental company to the limits of
the protection extended by the liability insurance.
(4) Notwithstanding the requirements of Sections 17450 to 17456,
inclusive, of the Vehicle Code, service of process in compliance with
paragraph (1) shall be deemed valid and effective service.
(5) Notwithstanding any other provision of law, the requirement
that the rental company accept service of process pursuant to
paragraph (1) shall not create any duty, obligation, or agency
relationship other than that provided in paragraph (1).
(w) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
SEC. 5.2. Section 1936 of the Civil Code, as amended by Section 1
of Chapter 549 of the Statutes of 2013, is amended to read:
1936. (a) For the purpose of this section, the following
definitions shall apply:
(1) "Rental company" means a person or entity in the business of
renting passenger vehicles to the public.
(2) "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.
(3) "Authorized driver" means all of the following:
(A) The renter.
(B) The renter's spouse if that person is a licensed driver and
satisfies the rental company's minimum age requirement.
(C) The renter's employer or coworker if he or she is engaged in
business activity with the renter, is a licensed driver, and
satisfies the rental company's minimum age requirement.
(D) A person expressly listed by the rental company on that renter'
s contract as an authorized driver.
(4) (A) "Customer facility charge" means any fee, including an
alternative fee, required by an airport to be collected by a rental
company from a renter for any of the following purposes:
(i) To finance, design, and construct consolidated airport car
rental facilities.
(ii) To finance, design, construct, and operate common-use
transportation systems that move passengers between airport terminals
and those consolidated car rental facilities, and acquire vehicles
for use in that system.
(iii) To finance, design, and construct terminal modifications
solely to accommodate and provide customer access to common-use
transportation systems.
(B) The aggregate amount to be collected shall not exceed the
reasonable costs, as determined by an audit, by an independent
auditor, paid for by the airport, to finance, design, and construct
those facilities. The auditor shall independently examine and
substantiate the necessity for and the amount of the customer
facility charge, including whether the airport's actual or projected
costs are supported and justified, any steps the airport may take to
limit costs, potential alternatives for meeting the airport's revenue
needs other than the collection of the fee, and whether and to what
extent car rental companies or other businesses or individuals using
the facility or common-use transportation system may pay for the
costs associated with these facilities and systems other than the fee
from rental customers, or whether the airport did not comply with
any provision of this subparagraph. Copies of the audit shall be
provided to the Assembly and Senate Committees on Judiciary, the
Assembly Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport's
Internet Web site. In the case of a customer facility charge for a
common-use transportation system, the audit also shall consider the
reasonable costs of providing the transit system or busing network
pursuant to clause (ii) of subparagraph (A). Any audit required by
this subparagraph may be included as a part of an audit of an airport'
s finances. Notwithstanding clause (iii) of subparagraph (A), the
fees designated as a customer facility charge shall not be used to
pay for terminal expansion, gate expansion, runway expansion, changes
in hours of operation, or changes in the number of flights arriving
or departing from the airport.
(C) Except as provided in subparagraph (D), the authorization
given pursuant to this section for an airport to impose a customer
facility charge shall become inoperative when the bonds used for
financing are paid.
(D) If a bond or other form of indebtedness is not used for
financing, or the bond or other form of indebtedness used for
financing has been paid, the Oakland International Airport may
require the collection of a customer facility charge for a period of
up to 10 years from the imposition of the charge for the purposes
allowed by, and subject to the conditions imposed by, this section.
(5) "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.
(6) "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:
(A) For the purpose of identifying, diagnosing, or monitoring
functions related to the potential need to repair, service, or
perform maintenance on the rental vehicle.
(B) 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.
(7) "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."
(8) "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.
(9) "Membership program" means a service offered by a rental
company that permits customers to bypass the rental counter and go
directly to the car previously reserved. A membership program shall
meet all of the following requirements:
(A) 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.
(B) 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.
(C) The renter may terminate enrollment at any time.
(D) 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.
(E) An employee designated to receive the form specified in
subparagraph (C) of paragraph (1) of subdivision (s) is present at
the lot where the renter takes possession of the car, to receive any
change in the rental agreement from the renter.
(10) "Passenger vehicle" means a passenger vehicle as defined in
Section 465 of the Vehicle Code.
(b) Except as limited by subdivision (c), a rental company and a
renter may agree that the renter will be responsible for no more than
all of the following:
(1) Physical or mechanical damage to the rented vehicle up to its
fair market value, as determined in the customary market for the sale
of that vehicle, resulting from collision regardless of the cause of
the damage.
(2) Loss due to theft of the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, provided that the rental company establishes by clear and
convincing evidence that the renter or the authorized driver failed
to exercise ordinary care while in possession of the vehicle. In
addition, the renter shall be presumed to have no liability for any
loss due to theft if (A) an authorized driver has possession of the
ignition key furnished by the rental company or an authorized driver
establishes that the ignition key furnished by the rental company was
not in the vehicle at the time of the theft, and (B) an authorized
driver files an official report of the theft with the police or other
law enforcement agency within 24 hours of learning of the theft and
reasonably cooperates with the rental company and the police or other
law enforcement agency in providing information concerning the
theft. The presumption set forth in this paragraph is a presumption
affecting the burden of proof which the rental company may rebut by
establishing that an authorized driver committed, or aided and
abetted the commission of, the theft.
(3) Physical damage to the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, resulting from vandalism occurring after, or in connection
with, the theft of the rented vehicle. However, the renter shall have
no liability for any damage due to vandalism if the renter would
have no liability for theft pursuant to paragraph (2).
(4) Physical damage to the rented vehicle up to a total of five
hundred dollars ($500) resulting from vandalism unrelated to the
theft of the rented vehicle.
(5) Actual charges for towing, storage, and impound fees paid by
the rental company if the renter is liable for damage or loss.
(6) An administrative charge, which shall include the cost of
appraisal and all other costs and expenses incident to the damage,
loss, repair, or replacement of the rented vehicle.
(c) The total amount of the renter's liability to the rental
company resulting from damage to the rented vehicle shall not exceed
the sum of the following:
(1) The estimated cost of parts which the rental company would
have to pay to replace damaged vehicle parts. All discounts and price
reductions or adjustments that are or will be received by the rental
company shall be subtracted from the estimate to the extent not
already incorporated in the estimate, or otherwise promptly credited
or refunded to the renter.
(2) The estimated cost of labor to replace damaged vehicle parts,
which shall not exceed the product of (A) the rate for labor usually
paid by the rental company to replace vehicle parts of the type that
were damaged and (B) the estimated time for replacement. All
discounts and price reductions or adjustments that are or will be
received by the rental company shall be subtracted from the estimate
to the extent not already incorporated in the estimate, or otherwise
promptly credited or refunded to the renter.
(3) (A) The estimated cost of labor to repair damaged vehicle
parts, which shall not exceed the lesser of the following:
(i) The product of the rate for labor usually paid by the rental
company to repair vehicle parts of the type that were damaged and the
estimated time for repair.
(ii) The sum of the estimated labor and parts costs determined
under paragraphs (1) and (2) to replace the same vehicle parts.
(B) All discounts and price reductions or adjustments that are or
will be received by the rental company shall be subtracted from the
estimate to the extent not already incorporated in the estimate, or
otherwise promptly credited or refunded to the renter.
(4) For the purpose of converting the estimated time for repair
into the same units of time in which the rental rate is expressed, a
day shall be deemed to consist of eight hours.
(5) Actual charges for towing, storage, and impound fees paid by
the rental company.
(6) The administrative charge described in paragraph (6) of
subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
estimated cost for parts and labor is more than one hundred dollars
($100) up to and including five hundred dollars ($500), (B) one
hundred dollars ($100) if the total estimated cost for parts and
labor exceeds five hundred dollars ($500) up to and including one
thousand five hundred dollars ($1,500), and (C) one hundred fifty
dollars ($150) if the total estimated cost for parts and labor
exceeds one thousand five hundred dollars ($1,500). An administrative
charge shall not be imposed if the total estimated cost of parts and
labor is one hundred dollars ($100) or less.
(d) (1) The total amount of an authorized driver's liability to
the rental company, if any, for damage occurring during the
authorized driver's operation of the rented vehicle shall not exceed
the amount of the renter's liability under subdivision (c).
(2) A rental company shall not recover from the renter or other
authorized driver an amount exceeding the renter's liability under
subdivision (c).
(3) A claim against a renter resulting from damage or loss,
excluding loss of use, to a rental vehicle shall be reasonably and
rationally related to the actual loss incurred. A rental company
shall mitigate damages where possible and shall not assert or collect
a claim for physical damage which exceeds the actual costs of the
repairs performed or the estimated cost of repairs, if the rental
company chooses not to repair the vehicle, including all discounts
and price reductions. However, if the vehicle is a total loss
vehicle, the claim shall not exceed the total loss vehicle value
established in accordance with procedures that are customarily used
by insurance companies when paying claims on total loss vehicles,
less the proceeds from salvaging the vehicle, if those proceeds are
retained by the rental company.
(4) If insurance coverage exists under the renter's applicable
personal or business insurance policy and the coverage is confirmed
during regular business hours, the renter may require that the rental
company submit any claims to the renter's applicable personal or
business insurance carrier. The rental company shall not make any
written or oral representations that it will not present claims or
negotiate with the renter's insurance carrier. For purposes of this
paragraph, confirmation of coverage includes telephone confirmation
from insurance company representatives during regular business hours.
Upon request of the renter and after confirmation of coverage, the
amount of claim shall be resolved between the insurance carrier and
the rental company. The renter shall remain responsible for payment
to the rental car company for any loss sustained that the renter's
applicable personal or business insurance policy does not cover.
(5) A rental company shall not recover from the renter or other
authorized driver for an item described in subdivision (b) to the
extent the rental company obtains recovery from another person.
(6) This section applies only to the maximum liability of a renter
or other authorized driver to the rental company resulting from
damage to the rented vehicle and not to the liability of another
person.
(e) (1) Except as provided in subdivision (f), a damage waiver
shall provide or, if not expressly stated in writing, shall be deemed
to provide that the renter has no liability for damage, loss, loss
of use, or a cost or expense incident thereto.
(2) Except as provided in subdivision (f), every limitation,
exception, or exclusion to a damage waiver is void and unenforceable.
(f) A rental company may provide in the rental contract that a
damage waiver does not apply under any of the following
circumstances:
(1) Damage or loss results from an authorized driver's (A)
intentional, willful, wanton, or reckless conduct, (B) operation of
the vehicle under the influence of drugs or alcohol in violation of
Section 23152 of the Vehicle Code, (C) towing or pushing anything, or
(D) operation of the vehicle on an unpaved road if the damage or
loss is a direct result of the road or driving conditions.
(2) Damage or loss occurs while the vehicle is (A) used for
commercial hire, (B) used in connection with conduct that could be
properly charged as a felony, (C) involved in a speed test or contest
or in driver training activity, (D) operated by a person other than
an authorized driver, or (E) operated outside the United States.
(3) An authorized driver who has (A) provided fraudulent
information to the rental company, or (B) provided false information
and the rental company would not have rented the vehicle if it had
instead received true information.
(g) (1) A rental company that offers or provides a damage waiver
for any consideration in addition to the rental rate shall clearly
and conspicuously disclose the following information in the rental
contract or holder in which the contract is placed and, also, in
signs posted at the place, such as the counter, where the renter
signs the rental contract, and, for renters who are enrolled in the
rental company's membership program, in a sign that shall be posted
in a location clearly visible to those renters as they enter the
location where their reserved rental cars are parked or near the exit
of the bus or other conveyance that transports the enrollee to a
reserved car: (A) the nature of the renter's liability, such as
liability for all collision damage regardless of cause, (B) the
extent of the renter's liability, such as liability for damage or
loss up to a specified amount, (C) the renter's personal insurance
policy or the credit card used to pay for the car rental transaction
may provide coverage for all or a portion of the renter's potential
liability, (D) the renter should consult with his or her insurer to
determine the scope of insurance coverage, including the amount of
the deductible, if any, for which the renter is obligated, (E) the
renter may purchase an optional damage waiver to cover all liability,
subject to whatever exceptions the rental company expressly lists
that are permitted under subdivision (f), and (F) the range of
charges for the damage waiver.
(2) In addition to the requirements of paragraph (1), a rental
company that offers or provides a damage waiver shall orally disclose
to all renters, except those who are 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. The renter's receipt of the
oral disclosure shall be demonstrated through the renter's
acknowledging receipt of the oral disclosure near that part of the
contract where the renter indicates, by the renter's own initials,
his or her acceptance or declination of the damage waiver. Adjacent
to that same part, the contract also shall state that the damage
waiver is optional. Further, the contract for these renters shall
include a clear and conspicuous written disclosure that the damage
waiver may be duplicative of coverage that the customer maintains
under his or her own policy of motor vehicle insurance.
(3) The following is an example, for purposes of illustration and
not limitation, of a notice fulfilling the requirements of paragraph
(1) for a rental company that imposes liability on the renter for
collision damage to the full value of the vehicle:
"NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY AND OPTIONAL DAMAGE
WAIVER
You are responsible for all collision damage to the rented vehicle
even if someone else caused it or the cause is unknown. You are
responsible for the cost of repair up to the value of the vehicle,
and towing, storage, and impound fees.
Your own insurance, or the issuer of the credit card you use to
pay for the car rental transaction, may cover all or part of your
financial responsibility for the rented vehicle. You should check
with your insurance company, or credit card issuer, to find out about
your coverage and the amount of the deductible, if any, for which
you may be liable.
Further, if you use a credit card that provides coverage for your
potential liability, you should check with the issuer to determine if
you must first exhaust the coverage limits of your own insurance
before the credit card coverage applies.
The rental company will not hold you responsible if you buy a
damage waiver. But a damage waiver will not protect you if (list
exceptions)."
(A) When the above notice is printed in the rental contract or
holder in which the contract is placed, the following shall be
printed immediately following the notice:
"The cost of an optional damage waiver is $____ for every (day or
week)."
(B) When the above notice appears on a sign, the following shall
appear immediately adjacent to the notice:
"The cost of an optional damage waiver is $____ to $____ for every
(day or week), depending upon the vehicle rented."
(h) Notwithstanding any other provision of law, a rental company
may sell a damage waiver subject to the following rate limitations
for each full or partial 24-hour rental day for the damage waiver:
(1) For rental vehicles that the rental company designates as an
"economy car," "compact car," or another term having similar meaning
to the two smallest body-size categories of vehicles established by
the Association of Car Rental Industry Systems Standards for North
America, as of January 1, 2014, when offered for rental, the rate
shall not exceed eleven dollars ($11).
(2) For rental vehicles that the rental company designates as an
"intermediate car," "standard car," or "full-size car," or another
term having similar meaning to the next three body-size categories of
vehicles established by the Association of Car Rental Industry
Systems Standards for North America, as of January 1, 2014, and that
are also either vehicles of the next model year, or not older than
the previous year's model, when offered for rental, the rate shall
not exceed seventeen dollars ($17). For rental vehicles that are
older than the previous year's model-year, the rate shall not exceed
eleven dollars ($11).
(i) A rental company that disseminates in this state an
advertisement containing a rental rate shall include in that
advertisement a clearly readable statement of the charge for a damage
waiver and a statement that a damage waiver is optional.
(j) (1) A rental company shall not require the purchase of a
damage waiver, optional insurance, or another optional good or
service.
(2) A rental company shall not engage in any unfair, deceptive, or
coercive conduct to induce a renter to purchase the damage waiver,
optional insurance, or another optional good or service, including
conduct such as, but not limited to, refusing to honor the renter's
reservation, limiting the availability of vehicles, requiring a
deposit, or debiting or blocking the renter's credit card account for
a sum equivalent to a deposit if the renter declines to purchase the
damage waiver, optional
insurance, or another optional good or service.
(k) (1) In the absence of express permission granted by the renter
subsequent to damage to, or loss of, the vehicle, a rental company
shall not seek to recover any portion of a claim arising out of
damage to, or loss of, the rented vehicle by processing a credit card
charge or causing a debit or block to be placed on the renter's
credit card account.
(2) A rental company shall not engage in any unfair, deceptive, or
coercive tactics in attempting to recover or in recovering on any
claim arising out of damage to, or loss of, the rented vehicle.
(l) (1) A customer facility charge may be collected by a rental
company under the following circumstances:
(A) Collection of the fee by the rental company is required by an
airport operated by a city, a county, a city and county, a joint
powers authority, a special district, or the San Diego County
Regional Airport Authority formed pursuant to Division 17 (commencing
with Section 170000) of the Public Utilities Code.
(B) The fee is calculated on a per contract basis or as provided
in paragraph (2).
(C) The fee is a user fee, not a tax imposed upon real property or
an incident of property ownership under Article XIII D of the
California Constitution.
(D) Except as otherwise provided in subparagraph (E), the fee
shall be ten dollars ($10) per contract or the amount provided in
paragraph (2).
(E) The fee for a consolidated rental car facility shall be
collected only from customers of on-airport rental car companies. If
the fee imposed by the airport is for both a consolidated rental car
facility and a common-use transportation system, the fee collected
from customers of on-airport rental car companies shall be ten
dollars ($10) or the amount provided in paragraph (2), but the fee
imposed on customers of off-airport rental car companies who are
transported on the common-use transportation system is proportionate
to the costs of the common-use transportation system only. The fee is
uniformly applied to each class of on-airport or off-airport
customers, provided that the airport requires off-airport customers
to use the common-use transportation system. For purposes of this
subparagraph, "on-airport rental car company" means a rental company
operating under an airport property lease or an airport concession or
license agreement whose customers use or will use the consolidated
rental car facility and the collection of the fee as to those
customers is consistent with subparagraph (C).
(F) Revenues collected from the fee do not exceed the reasonable
costs of financing, designing, and constructing the facility and
financing, designing, constructing, and operating any common-use
transportation system, or acquiring vehicles for use in that system,
and shall not be used for any other purpose.
(G) The fee is separately identified on the rental agreement.
(H) This paragraph does not apply to fees which are governed by
Section 50474.1 of the Government Code or Section 57.5 of the San
Diego Unified Port District Act (Chapter 67 of the First
Extraordinary Session of the Statutes of 1962).
(I) For any airport seeking to require rental car companies to
collect an alternative customer facility charge pursuant to paragraph
(2), the following provisions apply:
(i) Notwithstanding Section 10231.5 of the Government Code, the
airport shall provide reports on an annual basis to the Senate and
Assembly Committees on Judiciary detailing all of the following:
(I) The total amount of the customer facility charge collected.
(II) How the funds are being spent.
(III) The amount of and reason for any changes in the airport's
budget or financial needs for the facility or common-use
transportation system.
(IV) Whether airport concession fees authorized by Section 1936.01
have increased since the prior report, if any.
(ii) (I) The airport shall complete the audit required by
subparagraph (B) of paragraph (4) of subdivision (a) prior to the
initial collection of the customer facility charge. Notwithstanding
Section 10231.5 of the Government Code, copies of the audit shall be
provided to the Assembly and Senate Committees on Judiciary, the
Assembly Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport's
Internet Web site.
(II) Prior to any increase pursuant to paragraph (2), the airport
shall update the information provided in the initial collection audit
pursuant to subclause (I). Notwithstanding Section 10231.5 of the
Government Code, copies of the updated audit shall be provided to the
Assembly and Senate Committees on Judiciary, the Assembly Committee
on Transportation, and the Senate Committee on Transportation and
Housing, and shall be posted on the airport's Internet Web site.
(III) An audit shall be completed every three years after initial
collection only if the customer facility charge is collected for the
purpose of operating a common-use transportation system or to acquire
vehicles for use in the system pursuant to clause (ii) of
subparagraph (A) of paragraph (4) of subdivision (a). A regularly
conducted audit of airport finances that includes the customer
facility charge information, that satisfies the requirements of
subparagraph (B) of paragraph (4) of subdivision (a), and is produced
in accordance with the generally accepted accounting principles of
the Government Accounting Standards Board, shall satisfy the
requirements of this subclause. This obligation shall continue until
the fee authorization becomes inoperative pursuant to subparagraph
(C) of paragraph (4) of subdivision (a). Notwithstanding Section
10231.5 of the Government Code, the information reported pursuant to
this subclause shall be compiled into one document, shall be provided
to the Assembly and Senate Committees on Judiciary, the Assembly
Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport's
Internet Web site accessible to the public. The information reported
shall be contained within one easily accessible page contained within
the airport's Internet Web site.
(IV) This section shall not be construed to require an airport to
audit a common-use transportation system not financed by a customer
facility charge and used for the purposes permitted pursuant to
clause (ii) of subparagraph (A) of paragraph (4) of subdivision (a).
(V) The airport shall post on the airport's Internet Web site
copies of the completed audits required by this clause for a period
of six years following the audit's completion.
(iii) Use of the bonds shall be limited to construction and design
of the consolidated rental car facility, terminal modifications, and
operating costs of the common-use transportation system, as
specified in paragraph (4) of subdivision (a).
(2) Any airport may require rental car companies to collect an
alternative customer facility charge under the following conditions:
(A) The airport first conducts a publicly noticed hearing pursuant
to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)
of Part 1 of Division 2 of Title 5 of the Government Code) to review
the costs of financing the design and construction of a consolidated
rental car facility and the design, construction, and operation of
any common-use transportation system in which all of the following
occur:
(i) The airport establishes the amount of revenue necessary to
finance the reasonable cost to design and construct a consolidated
rental car facility and to design, construct, and operate any
common-use transportation system, or acquire vehicles for use in that
system, based on evidence presented during the hearing.
(ii) The airport finds, based on evidence presented during the
hearing, that the fee authorized in paragraph (1) will not generate
sufficient revenue to finance the reasonable costs to design and
construct a consolidated rental car facility and to design,
construct, and operate any common-use transportation system, or
acquire vehicles for use in that system.
(iii) The airport finds that the reasonable cost of the project
requires the additional amount of revenue that would be generated by
the proposed daily rate, including any rate increase, authorized
pursuant to this paragraph.
(iv) The airport outlines each of the following:
(I) Steps it has taken to limit costs.
(II) Other potential alternatives for meeting its revenue needs
other than the collection of the fee.
(III) The extent to which rental car companies or other businesses
or individuals using the facility or common-use transportation
system will pay for the costs associated with these facilities and
systems other than the fee from rental customers.
(B) The airport may not require the fee authorized in this
paragraph to be collected at any time that the fee authorized in
paragraph (1) of this subdivision is being collected.
(C) Pursuant to the procedure set forth in this subdivision, the
fee may be collected at a rate charged on a per-day basis subject to
the following conditions:
(i) Commencing January 1, 2011, the amount of the fee may not
exceed six dollars ($6) per day.
(ii) Commencing January 1, 2014, the amount of the fee may not
exceed seven dollars and fifty cents ($7.50) per day.
(iii) Commencing January 1, 2017, and thereafter, the amount of
the fee may not exceed nine dollars ($9) per day.
(iv) At no time shall the fee authorized in this paragraph be
collected from any customer for more than five days for each
individual rental car contract.
(v) An airport subject to this paragraph shall initiate the
process for obtaining the authority to require or increase the
alternative fee no later than January 1, 2018. Any airport that
obtains the authority to require or increase an alternative fee shall
be authorized to continue collecting that fee until the fee
authorization becomes inoperative pursuant to subparagraph (C) of
paragraph (4) of subdivision (a).
(3) Notwithstanding any other provision of law, including, but not
limited to, Part 1 (commencing with Section 6001) to Part 1.7
(commencing with Section 7280), inclusive, of Division 2 of the
Revenue and Taxation Code, the fees collected pursuant to this
section, or another law whereby a local agency operating an airport
requires a rental car company to collect a facility financing fee
from its customers, are not subject to sales, use, or transaction
taxes.
(m) (1) A rental company shall only advertise, quote, and charge a
rental rate that includes the entire amount except taxes, a customer
facility charge, if any, and a mileage charge, if any, that a renter
must pay to hire or lease the vehicle for the period of time to
which the rental rate applies. A rental company shall not charge in
addition to the rental rate, taxes, a customer facility charge, if
any, and a mileage charge, if any, any fee that is required to be
paid by the renter as a condition of hiring or leasing the vehicle,
including, but not limited to, required fuel or airport surcharges
other than customer facility charges, nor a fee for transporting the
renter to the location where the rented vehicle will be delivered to
the renter.
(2) In addition to the rental rate, taxes, customer facility
charges, if any, and mileage charges, if any, a rental company may
charge for an item or service provided in connection with a
particular rental transaction if the renter could have avoided
incurring the charge by choosing not to obtain or utilize the
optional item or service. Items and services for which the rental
company may impose an additional charge include, but are not limited
to, optional insurance and accessories requested by the renter,
service charges incident to the renter's optional return of the
vehicle to a location other than the location where the vehicle was
hired or leased, and charges for refueling the vehicle at the
conclusion of the rental transaction in the event the renter did not
return the vehicle with as much fuel as was in the fuel tank at the
beginning of the rental. A rental company also may impose an
additional charge based on reasonable age criteria established by the
rental company.
(3) A rental company shall not charge a fee for authorized drivers
in addition to the rental charge for an individual renter.
(4) If a rental company states a rental rate in print
advertisement or in a telephonic, in-person, or computer-transmitted
quotation, the rental company shall disclose clearly in that
advertisement or quotation the terms of mileage conditions relating
to the advertised or quoted rental rate, including, but not limited
to, to the extent applicable, the amount of mileage and gas charges,
the number of miles for which no charges will be imposed, and a
description of geographic driving limitations within the United
States and Canada.
(5) (A) When a rental rate is stated in an advertisement,
quotation, or reservation in connection with a car rental at an
airport where a customer facility charge is imposed, the rental
company shall disclose clearly the existence and amount of the
customer facility charge. For purposes of this subparagraph,
advertisements include radio, television, other electronic media, and
print advertisements. For purposes of this subparagraph, quotations
and reservations include those that are telephonic, in-person, and
computer-transmitted. If the rate advertisement is intended to
include transactions at more than one airport imposing a customer
facility charge, a range of fees may be stated in the advertisement.
However, all rate advertisements that include car rentals at airport
destinations shall clearly and conspicuously include a toll-free
telephone number whereby a customer can be told the specific amount
of the customer facility charge to which the customer will be
obligated.
(B) If a person or entity other than a rental car company,
including a passenger carrier or a seller of travel services,
advertises or quotes a rate for a car rental at an airport where a
customer facility charge is imposed, that person or entity shall,
provided that he, she, or it is provided with information about the
existence and amount of the fee, to the extent not specifically
prohibited by federal law, clearly disclose the existence and amount
of the fee in any telephonic, in-person, or computer-transmitted
quotation at the time of making an initial quotation of a rental rate
and at the time of making a reservation of a rental car. If a rental
car company provides the person or entity with rate and customer
facility charge information, the rental car company is not
responsible for the failure of that person or entity to comply with
this subparagraph when quoting or confirming a rate to a third person
or entity.
(6) If a rental company delivers a vehicle to a renter at a
location other than the location where the rental company normally
carries on its business, the rental company shall not charge the
renter an amount for the rental for the period before the delivery of
the vehicle. If a rental company picks up a rented vehicle from a
renter at a location other than the location where the rental company
normally carries on its business, the rental company shall not
charge the renter an amount for the rental for the period after the
renter notifies the rental company to pick up the vehicle.
(n) A rental company shall not use, access, or obtain any
information relating to the renter's use of the rental vehicle that
was obtained using electronic surveillance technology, except in the
following circumstances:
(1) (A) When the equipment is used by the rental company only for
the purpose of locating a stolen, abandoned, or missing rental
vehicle after one of the following:
(i) The renter or law enforcement has informed the rental company
that the vehicle is missing or has been stolen or abandoned.
(ii) The rental vehicle has not been returned following one week
after the contracted return date, or by one week following the end of
an extension of that return date.
(iii) The rental company discovers the rental vehicle has been
stolen or abandoned, and, if stolen, it shall report the vehicle
stolen to law enforcement by filing a stolen vehicle report, unless
law enforcement has already informed the rental company that the
vehicle is missing or has been stolen or abandoned.
(B) If electronic surveillance technology is activated pursuant to
subparagraph (A), a rental company shall maintain a record, in
either electronic or written form, of information relevant to the
activation of that technology. That information shall include the
rental agreement, including the return date, and the date and time
the electronic surveillance technology was activated. The record
shall also include, if relevant, a record of written or other
communication with the renter, including communications regarding
extensions of the rental, police reports, or other written
communication with law enforcement officials. The record shall be
maintained for a period of at least 12 months from the time the
record is created and shall be made available upon the renter's
request. The rental company shall maintain and furnish explanatory
codes necessary to read the record. A rental company shall not be
required to maintain a record if electronic surveillance technology
is activated to recover a rental vehicle that is stolen or missing at
a time other than during a rental period.
(2) In response to a specific request from law enforcement
pursuant to a subpoena or search warrant.
(3) This subdivision does not prohibit a rental company from
equipping rental vehicles with GPS-based technology that provides
navigation assistance to the occupants of the rental vehicle, if the
rental company does not use, access, or obtain information relating
to the renter's use of the rental vehicle that was obtained using
that technology, except for the purposes of discovering or repairing
a defect in the technology and the information may then be used only
for that purpose.
(4) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows for the remote locking or unlocking of the vehicle at the
request of the renter, if the rental company does not use, access,
or obtain information relating to the renter's use of the rental
vehicle that was obtained using that technology, except as necessary
to lock or unlock the vehicle.
(5) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows the company to provide roadside assistance, such as
towing, flat tire, or fuel services, at the request of the renter, if
the rental company does not use, access, or obtain information
relating to the renter's use of the rental vehicle that was obtained
using that technology except as necessary to provide the requested
roadside assistance.
(6) This subdivision does not prohibit a rental company from
obtaining, accessing, or using information from electronic
surveillance technology for the sole purpose of determining the date
and time the vehicle is returned to the rental company, and the total
mileage driven and the vehicle fuel level of the returned vehicle.
This paragraph, however, shall apply only after the renter has
returned the vehicle to the rental company, and the information shall
only be used for the purpose described in this paragraph.
(o) A rental company shall not use electronic surveillance
technology to track a renter in order to impose fines or surcharges
relating to the renter's use of the rental vehicle.
(p) A renter may bring an action against a rental company for the
recovery of damages and appropriate equitable relief for a violation
of this section. The prevailing party shall be entitled to recover
reasonable attorney's fees and costs.
(q) A rental company that brings an action against a renter for
loss due to theft of the vehicle shall bring the action in the county
in which the renter resides or, if the renter is not a resident of
this state, in the jurisdiction in which the renter resides.
(r) A waiver of any of the provisions of this section shall be
void and unenforceable as contrary to public policy.
(s) (1) A rental company's disclosure requirements shall be
satisfied for renters who are enrolled in the rental company's
membership program if all of the following conditions are met:
(A) Prior to the enrollee's first rental as a participant in the
program, the renter receives, in writing, the following:
(i) All of the disclosures required by paragraph (1) of
subdivision (g), including the terms and conditions of the rental
agreement then in effect.
(ii) An Internet Web site address, as well as a contact number or
address, where the enrollee can learn of changes to the rental
agreement or to the laws of this state governing rental agreements
since the effective date of the rental company's most recent
restatement of the rental agreement and distribution of that
restatement to its members.
(B) At the commencement of each rental period, the renter is
provided, on the rental record or the folder in which it is inserted,
with a printed notice stating that he or she had either previously
selected or declined an optional damage waiver and that the renter
has the right to change preferences.
(C) At the commencement of each rental period, the rental company
provides, on the rearview mirror, a hanger on which a statement is
printed, in a box, in at least 12-point boldface type, notifying the
renter that the collision damage waiver offered by the rental company
may be duplicative of coverage that the customer maintains under his
or her own policy of motor vehicle insurance. If it is not feasible
to hang the statement from the rearview mirror, it shall be hung from
the steering wheel.
The hanger shall provide the renter a box to initial if he or she
(not his or her employer) has previously accepted or declined the
collision damage waiver and that he or she now wishes to change his
or her decision to accept or decline the collision damage waiver, as
follows:
"If I previously accepted the collision damage waiver, I now
decline it.
If I previously declined the collision damage waiver, I now accept
it."
The hanger shall also provide a box for the enrollee to indicate
whether this change applies to this rental transaction only or to all
future rental transactions. The hanger shall also notify the renter
that he or she may make that change, prior to leaving the lot, by
returning the form to an employee designated to receive the form who
is present at the lot where the renter takes possession of the car,
to receive any change in the rental agreement from the renter.
(2) (A) This subdivision is not effective unless the employee
designated pursuant to subparagraph (E) of paragraph (8) of
subdivision (a) is actually present at the required location.
(B) This subdivision 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 rental rate; or in a telephonic, in-person, or
computer-transmitted quotation or reservation.
(t) The amendments made to this section during the 2001-02 Regular
Session of the Legislature do not affect litigation pending on or
before January 1, 2003, alleging a violation of Section 22325 of the
Business and Professions Code as it read at the time the action was
commenced.
(u) (1) When a rental company enters into a rental agreement in
the state for the rental of a vehicle to any renter who is not a
resident of this country and, as part of, or associated with, the
rental agreement, the renter purchases liability insurance, as
defined in subdivision (b) of Section 1758.85 of the Insurance Code,
from the rental company in its capacity as a rental car agent for an
authorized insurer, the rental company shall be authorized to accept,
and, if served as set forth in this subdivision, shall accept,
service of a summons and complaint and any other required documents
against the foreign renter for any accident or collision resulting
from the operation of the rental vehicle within the state during the
rental period. If the rental company has a registered agent for
service of process on file with the Secretary of State, process shall
be served on the rental company's registered agent, either by
first-class mail, return receipt requested, or by personal service.
(2) Within 30 days of acceptance of service of process, the rental
company shall provide a copy of the summons and complaint and any
other required documents served in accordance with this subdivision
to the foreign renter by first-class mail, return receipt requested.
(3) Any plaintiff, or his or her representative, who elects to
serve the foreign renter by delivering a copy of the summons and
complaint and any other required documents to the rental company
pursuant to paragraph (1) shall agree to limit his or her recovery
against the foreign renter and the rental company to the limits of
the protection extended by the liability insurance.
(4) Notwithstanding the requirements of Sections 17450 to 17456,
inclusive, of the Vehicle Code, service of process in compliance with
paragraph (1) shall be deemed valid and effective service.
(5) Notwithstanding any other provision of law, the requirement
that the rental company accept service of process pursuant to
paragraph (1) shall not create any duty, obligation, or agency
relationship other than that provided in paragraph (1).
(v) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
SEC. 5.5. Section 1936 of the Civil Code, as amended by Section 2
of Chapter 549 of the Statutes of 2013, is amended to read:
1936. (a) For the purpose of this section, the following
definitions shall apply:
(1) "Rental company" means a person or entity in the business of
renting passenger vehicles to the public.
(2) "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.
(3) "Authorized driver" means (A) the renter, (B) the renter's
spouse if that person is a licensed driver and satisfies the rental
company's minimum age requirement, (C) the renter's employer or
coworker if he or she is engaged in business activity with the
renter, is a licensed driver, and satisfies the rental company's
minimum age requirement, and (D) a person
expressly listed by the rental company on the renter'
s contract as an authorized driver.
(4) (A) "Customer facility charge" means any fee, including an
alternative fee, required by an airport to be collected by a rental
company from a renter for any of the following purposes:
(i) To finance, design, and construct consolidated airport car
rental facilities.
(ii) To finance, design, construct, and operate common-use
transportation systems that move passengers between airport terminals
and those consolidated car rental facilities, and acquire vehicles
for use in that system.
(iii) To finance, design, and construct terminal modifications
solely to accommodate and provide customer access to common-use
transportation systems.
(B) The aggregate amount to be collected shall not exceed the
reasonable costs, as determined by an audit, by an independent
auditor, paid for by the airport, to finance, design, and construct
those facilities. The auditor shall independently examine and
substantiate the necessity for and the amount of the customer
facility charge, including whether the airport's actual or projected
costs are supported and justified, any steps the airport may take to
limit costs, potential alternatives for meeting the airport's revenue
needs other than the collection of the fee, and whether and to what
extent car rental companies or other businesses or individuals using
the facility or common-use transportation system may pay for the
costs associated with these facilities and systems other than the fee
from rental customers, or whether the airport did not comply with
any provision of this subparagraph. Copies of the audit shall be
provided to the Assembly and Senate Committees on Judiciary, the
Assembly Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport's
Internet Web site. In the case of a customer facility charge for a
common-use transportation system, the audit also shall consider the
reasonable costs of providing the transit system or busing network
pursuant to clause (ii) of subparagraph (A). Any audit required by
this subparagraph may be included as a part of an audit of an airport'
s finances. Notwithstanding clause (iii) of subparagraph (A), the
fees designated as a customer facility charge shall not be used to
pay for terminal expansion, gate expansion, runway expansion, changes
in hours of operation, or changes in the number of flights arriving
or departing from the airport.
(C) Except as provided in subparagraph (D), the authorization
given pursuant to this section for an airport to impose a customer
facility charge shall become inoperative when the bonds used for
financing are paid.
(D) If a bond or other form of indebtedness is not used for
financing, or the bond or other form of indebtedness used for
financing has been paid, the Oakland International Airport may
require the collection of a customer facility charge for a period of
up to 10 years from the imposition of the charge for the purposes
allowed by, and subject to the conditions imposed by, this section.
(5) "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.
(6) "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:
(A) For the purpose of identifying, diagnosing, or monitoring
functions related to the potential need to repair, service, or
perform maintenance on the rental vehicle.
(B) 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.
(7) "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."
(8) "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.
(9) "Membership program" means a service offered by a rental
company that permits customers to bypass the rental counter and go
directly to the car previously reserved. A membership program shall
meet all of the following requirements:
(A) 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.
(B) 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.
(C) The renter may terminate enrollment at any time.
(D) 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.
(E) An employee designated to receive the form specified in
subparagraph (C) of paragraph (1) of subdivision (t) is present at
the lot where the renter takes possession of the car, to receive any
change in the rental agreement from the renter.
(10) "Passenger vehicle" means a passenger vehicle as defined in
Section 465 of the Vehicle Code.
(b) Except as limited by subdivision (c), a rental company and a
renter may agree that the renter will be responsible for no more than
all of the following:
(1) Physical or mechanical damage to the rented vehicle up to its
fair market value, as determined in the customary market for the sale
of that vehicle, resulting from collision regardless of the cause of
the damage.
(2) Loss due to theft of the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, provided that the rental company establishes by clear and
convincing evidence that the renter or the authorized driver failed
to exercise ordinary care while in possession of the vehicle. In
addition, the renter shall be presumed to have no liability for any
loss due to theft if (A) an authorized driver has possession of the
ignition key furnished by the rental company or an authorized driver
establishes that the ignition key furnished by the rental company was
not in the vehicle at the time of the theft, and (B) an authorized
driver files an official report of the theft with the police or other
law enforcement agency within 24 hours of learning of the theft and
reasonably cooperates with the rental company and the police or other
law enforcement agency in providing information concerning the
theft. The presumption set forth in this paragraph is a presumption
affecting the burden of proof which the rental company may rebut by
establishing that an authorized driver committed, or aided and
abetted the commission of, the theft.
(3) Physical damage to the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, resulting from vandalism occurring after, or in connection
with, the theft of the rented vehicle. However, the renter shall have
no liability for any damage due to vandalism if the renter would
have no liability for theft pursuant to paragraph (2).
(4) Physical damage to the rented vehicle up to a total of five
hundred dollars ($500) resulting from vandalism unrelated to the
theft of the rented vehicle.
(5) Actual charges for towing, storage, and impound fees paid by
the rental company if the renter is liable for damage or loss.
(6) An administrative charge, which shall include the cost of
appraisal and all other costs and expenses incident to the damage,
loss, repair, or replacement of the rented vehicle.
(c) The total amount of the renter's liability to the rental
company resulting from damage to the rented vehicle shall not exceed
the sum of the following:
(1) The estimated cost of parts which the rental company would
have to pay to replace damaged vehicle parts. All discounts and price
reductions or adjustments that are or will be received by the rental
company shall be subtracted from the estimate to the extent not
already incorporated in the estimate, or otherwise promptly credited
or refunded to the renter.
(2) The estimated cost of labor to replace damaged vehicle parts,
which shall not exceed the product of (A) the rate for labor usually
paid by the rental company to replace vehicle parts of the type that
were damaged and (B) the estimated time for replacement. All
discounts and price reductions or adjustments that are or will be
received by the rental company shall be subtracted from the estimate
to the extent not already incorporated in the estimate, or otherwise
promptly credited or refunded to the renter.
(3) (A) The estimated cost of labor to repair damaged vehicle
parts, which shall not exceed the lesser of the following:
(i) The product of the rate for labor usually paid by the rental
company to repair vehicle parts of the type that were damaged and the
estimated time for repair.
(ii) The sum of the estimated labor and parts costs determined
under paragraphs (1) and (2) to replace the same vehicle parts.
(B) All discounts and price reductions or adjustments that are or
will be received by the rental company shall be subtracted from the
estimate to the extent not already incorporated in the estimate, or
otherwise promptly credited or refunded to the renter.
(4) For the purpose of converting the estimated time for repair
into the same units of time in which the rental rate is expressed, a
day shall be deemed to consist of eight hours.
(5) Actual charges for towing, storage, and impound fees paid by
the rental company.
(6) The administrative charge described in paragraph (6) of
subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
estimated cost for parts and labor is more than one hundred dollars
($100) up to and including five hundred dollars ($500), (B) one
hundred dollars ($100) if the total estimated cost for parts and
labor exceeds five hundred dollars ($500) up to and including one
thousand five hundred dollars ($1,500), and (C) one hundred fifty
dollars ($150) if the total estimated cost for parts and labor
exceeds one thousand five hundred dollars ($1,500). An administrative
charge shall not be imposed if the total estimated cost of parts and
labor is one hundred dollars ($100) or less.
(d) (1) The total amount of an authorized driver's liability to
the rental company, if any, for damage occurring during the
authorized driver's operation of the rented vehicle shall not exceed
the amount of the renter's liability under subdivision (c).
(2) A rental company shall not recover from the renter or other
authorized driver an amount exceeding the renter's liability under
subdivision (c).
(3) A claim against a renter resulting from damage or loss,
excluding loss of use, to a rental vehicle shall be reasonably and
rationally related to the actual loss incurred. A rental company
shall mitigate damages where possible and shall not assert or collect
a claim for physical damage which exceeds the actual costs of the
repairs performed or the estimated cost of repairs, if the rental
company chooses not to repair the vehicle, including all discounts
and price reductions. However, if the vehicle is a total loss
vehicle, the claim shall not exceed the total loss vehicle value
established in accordance with procedures that are customarily used
by insurance companies when paying claims on total loss vehicles,
less the proceeds from salvaging the vehicle, if those proceeds are
retained by the rental company.
(4) If insurance coverage exists under the renter's applicable
personal or business insurance policy and the coverage is confirmed
during regular business hours, the renter may require that the rental
company submit any claims to the renter's applicable personal or
business insurance carrier. The rental company shall not make any
written or oral representations that it will not present claims or
negotiate with the renter's insurance carrier. For purposes of this
paragraph, confirmation of coverage includes telephone confirmation
from insurance company representatives during regular business hours.
Upon request of the renter and after confirmation of coverage, the
amount of claim shall be resolved between the insurance carrier and
the rental company. The renter shall remain responsible for payment
to the rental car company for any loss sustained that the renter's
applicable personal or business insurance policy does not cover.
(5) A rental company shall not recover from the renter or other
authorized driver for an item described in subdivision (b) to the
extent the rental company obtains recovery from another person.
(6) This section applies only to the maximum liability of a renter
or other authorized driver to the rental company resulting from
damage to the rented vehicle and not to the liability of another
person.
(e) (1) Except as provided in subdivision (f), a damage waiver
shall provide or, if not expressly stated in writing, shall be deemed
to provide that the renter has no liability for a damage, loss, loss
of use, or a cost or expense incident thereto.
(2) Except as provided in subdivision (f), every limitation,
exception, or exclusion to a damage waiver is void and unenforceable.
(f) A rental company may provide in the rental contract that a
damage waiver does not apply under any of the following
circumstances:
(1) Damage or loss results from an authorized driver's (A)
intentional, willful, wanton, or reckless conduct, (B) operation of
the vehicle under the influence of drugs or alcohol in violation of
Section 23152 of the Vehicle Code, (C) towing or pushing anything, or
(D) operation of the vehicle on an unpaved road if the damage or
loss is a direct result of the road or driving conditions.
(2) Damage or loss occurs while the vehicle is (A) used for
commercial hire, (B) used in connection with conduct that could be
properly charged as a felony, (C) involved in a speed test or contest
or in driver training activity, (D) operated by a person other than
an authorized driver, or (E) operated outside the United States.
(3) An authorized driver who has (A) provided fraudulent
information to the rental company, or (B) provided false information
and the rental company would not have rented the vehicle if it had
instead received true information.
(g) (1) A rental company that offers or provides a damage waiver
for any consideration in addition to the rental rate shall clearly
and conspicuously disclose the following information in the rental
contract or holder in which the contract is placed and, also, in
signs posted at the place, such as the counter, where the renter
signs the rental contract, and, for renters who are enrolled in the
rental company's membership program, in a sign that shall be posted
in a location clearly visible to those renters as they enter the
location where their reserved rental cars are parked or near the exit
of the bus or other conveyance that transports the enrollee to a
reserved car: (A) the nature of the renter's liability, such as
liability for all collision damage regardless of cause, (B) the
extent of the renter's liability, such as liability for damage or
loss up to a specified amount, (C) the renter's personal insurance
policy or the credit card used to pay for the car rental transaction
may provide coverage for all or a portion of the renter's potential
liability, (D) the renter should consult with his or her insurer to
determine the scope of insurance coverage, including the amount of
the deductible, if any, for which the renter is obligated, (E) the
renter may purchase an optional damage waiver to cover all liability,
subject to whatever exceptions the rental company expressly lists
that are permitted under subdivision (f), and (F) the range of
charges for the damage waiver.
(2) In addition to the requirements of paragraph (1), a rental
company that offers or provides a damage waiver shall orally disclose
to all renters, except those who are 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. The renter's receipt of the
oral disclosure shall be demonstrated through the renter's
acknowledging receipt of the oral disclosure near that part of the
contract where the renter indicates, by the renter's own initials,
his or her acceptance or declination of the damage waiver. Adjacent
to that same part, the contract also shall state that the damage
waiver is optional. Further, the contract for these renters shall
include a clear and conspicuous written disclosure that the damage
waiver may be duplicative of coverage that the customer maintains
under his or her own policy of motor vehicle insurance.
(3) The following is an example, for purposes of illustration and
not limitation, of a notice fulfilling the requirements of paragraph
(1) for a rental company that imposes liability on the renter for
collision damage to the full value of the vehicle:
"NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY AND OPTIONAL DAMAGE
WAIVER
You are responsible for all collision damage to the rented vehicle
even if someone else caused it or the cause is unknown. You are
responsible for the cost of repair up to the value of the vehicle,
and towing, storage, and impound fees.
Your own insurance, or the issuer of the credit card you use to
pay for the car rental transaction, may cover all or part of your
financial responsibility for the rented vehicle. You should check
with your insurance company, or credit card issuer, to find out about
your coverage and the amount of the deductible, if any, for which
you may be liable.
Further, if you use a credit card that provides coverage for your
potential liability, you should check with the issuer to determine if
you must first exhaust the coverage limits of your own insurance
before the credit card coverage applies.
The rental company will not hold you responsible if you buy a
damage waiver. But a damage waiver will not protect you if (list
exceptions)."
(A) When the above notice is printed in the rental contract or
holder in which the contract is placed, the following shall be
printed immediately following the notice:
"The cost of an optional damage waiver is $____ for every (day or
week)."
(B) When the above notice appears on a sign, the following shall
appear immediately adjacent to the notice:
"The cost of an optional damage waiver is $____ to $____ for every
(day or week), depending upon the vehicle rented."
(h) Notwithstanding any other provision of law, a rental company
may sell a damage waiver subject to the following rate limitations
for each full or partial 24-hour rental day for the damage waiver.
(1) For rental vehicles that the rental company designates as an
"economy car," "subcompact car," "compact car," or another term
having similar meaning when offered for rental, or another vehicle
having a manufacturer's suggested retail price of nineteen thousand
dollars ($19,000) or less, the rate shall not exceed nine dollars
($9).
(2) For rental vehicles that have a manufacturer's suggested
retail price from nineteen thousand one dollars ($19,001) to
thirty-four thousand nine hundred ninety-nine dollars ($34,999),
inclusive, and that are also either vehicles of next year's model, or
not older than the previous year's model, the rate shall not exceed
fifteen dollars ($15). For those rental vehicles older than the
previous year's model-year, the rate shall not exceed nine dollars
($9).
(i) The manufacturer's suggested retail prices described in
subdivision (h) shall be adjusted annually to reflect changes from
the previous year in the Consumer Price Index. For the purposes of
this section, "Consumer Price Index" means the United States Consumer
Price Index for All Urban Consumers, for all items.
(j) A rental company that disseminates in this state an
advertisement containing a rental rate shall include in that
advertisement a clearly readable statement of the charge for a damage
waiver and a statement that a damage waiver is optional.
(k) (1) A rental company shall not require the purchase of a
damage waiver, optional insurance, or another optional good or
service.
(2) A rental company shall not engage in any unfair, deceptive, or
coercive conduct to induce a renter to purchase the damage waiver,
optional insurance, or another optional good or service, including
conduct such as, but not limited to, refusing to honor the renter's
reservation, limiting the availability of vehicles, requiring a
deposit, or debiting or blocking the renter's credit card account for
a sum equivalent to a deposit if the renter declines to purchase the
damage waiver, optional insurance, or another optional good or
service.
( l ) (1) In the absence of express permission granted
by the renter subsequent to damage to, or loss of, the vehicle, a
rental company shall not seek to recover any portion of a claim
arising out of damage to, or loss of, the rented vehicle by
processing a credit card charge or causing a debit or block to be
placed on the renter's credit card account.
(2) A rental company shall not engage in any unfair, deceptive, or
coercive tactics in attempting to recover or in recovering on any
claim arising out of damage to, or loss of, the rented vehicle.
(m) (1) A customer facility charge may be collected by a rental
company under the following circumstances:
(A) Collection of the fee by the rental company is required by an
airport operated by a city, a county, a city and county, a joint
powers authority, a special district, or the San Diego County
Regional Airport Authority formed pursuant to Division 17 (commencing
with Section 170000) of the Public Utilities Code.
(B) The fee is calculated on a per contract basis or as provided
in paragraph (2).
(C) The fee is a user fee, not a tax imposed upon real property or
an incidence of property ownership under Article XIII D of the
California Constitution.
(D) Except as otherwise provided in subparagraph (E), the fee
shall be ten dollars ($10) per contract or the amount provided in
paragraph (2).
(E) The fee for a consolidated rental car facility shall be
collected only from customers of on-airport rental car companies. If
the fee imposed by the airport is for both a consolidated rental car
facility and a common-use transportation system, the fee collected
from customers of on-airport rental car companies shall be ten
dollars ($10) or the amount provided in paragraph (2), but the fee
imposed on customers of off-airport rental car companies who are
transported on the common-use transportation system is proportionate
to the costs of the common-use transportation system only. The fee is
uniformly applied to each class of on-airport or off-airport
customers, provided that the airport requires off-airport customers
to use the common-use transportation system. For purposes of this
subparagraph, "on-airport rental car company" means a rental company
operating under an airport property lease or an airport concession or
license agreement whose customers use or will use the consolidated
rental car facility and the collection of the fee as to those
customers is consistent with subparagraph (C).
(F) Revenues collected from the fee do not exceed the reasonable
costs of financing, designing, and constructing the facility and
financing, designing, constructing, and operating any common-use
transportation system, or acquiring vehicles for use in that system,
and shall not be used for any other purpose.
(G) The fee is separately identified on the rental agreement.
(H) This paragraph does not apply to fees which are governed by
Section 50474.1 of the Government Code or Section 57.5 of the San
Diego Unified Port District Act.
(I) For any airport seeking to require rental car companies to
collect an alternative customer facility charge pursuant to paragraph
(2), the following provisions apply:
(i) Notwithstanding Section 10231.5 of the Government Code, the
airport shall provide reports on an annual basis to the Senate and
Assembly Committees on Judiciary detailing all of the following:
(I) The total amount of the customer facility charge collected.
(II) How the funds are being spent.
(III) The amount of and reason for any changes in the airport's
budget or financial needs for the facility or common-use
transportation system.
(IV) Whether airport concession fees authorized by Section 1936.01
have increased since the prior report, if any.
(ii) (I) The airport shall complete the audit required by
subparagraph (B) of paragraph (4) of subdivision (a) prior to initial
collection of the customer facility charge. Notwithstanding Section
10231.5 of the Government Code, copies of the audit shall be provided
to the Assembly and Senate Committees on Judiciary, the Assembly
Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport's
Internet Web site.
(II) Prior to any increase pursuant to paragraph (2), the airport
shall update the information provided in the initial collection audit
pursuant to subclause (I). Notwithstanding Section 10231.5 of the
Government Code, copies of the updated audit shall be provided to the
Assembly and Senate Committees on Judiciary, the Assembly Committee
on Transportation, and the Senate Committee on Transportation and
Housing and shall be posted on the airport's Internet Web site.
(III) An audit shall be completed every three years after initial
collection only if the customer facility charge is collected for the
purpose of operating a common-use transportation system or to acquire
vehicles for use in such a system pursuant to clause (ii) of
subparagraph (A) of paragraph (4) of subdivision (a). A regularly
conducted audit of airport finances that includes the customer
facility charge information, that satisfies the requirements of
subparagraph (B) of paragraph (4) of subdivision (a), and
is produced in accordance with the
generally accepted accounting principles of the Government Accounting
Standards Board, shall satisfy the requirements of this subclause.
This obligation shall continue until the fee authorization becomes
inoperative pursuant to subparagraph (C) of paragraph (4) of
subdivision (a). Notwithstanding Section 10231.5 of the Government
Code, the information reported pursuant to this subclause shall be
compiled into one document, shall be provided to the Assembly and
Senate Committees on Judiciary, the Assembly Committee on
Transportation, and the Senate Committee on Transportation and
Housing and shall be posted on the airport's Internet Web site
accessible to the public. The information reported shall be contained
within one easily accessible page contained within the airport's
Internet Web site.
(IV) This section shall not be construed to require an airport to
audit a common-use transportation system not financed by a customer
facility charge and used for the purposes permitted pursuant to
clause (ii) of subparagraph (A) of paragraph (4) of subdivision (a).
(V) The airport shall post on the airport's Internet Web site
copies of the completed audits required by this clause for a period
of six years following the audit's completion.
(iii) Use of the bonds shall be limited to construction and design
of the consolidated rental car facility, terminal modifications, and
operating costs of the common-use transportation system, as
specified in paragraph (4) of subdivision (a).
(2) Any airport may require rental car companies to collect an
alternative customer facility charge under the following conditions:
(A) The airport first conducts a publicly noticed hearing pursuant
to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)
of Part 1 of Division 2 of Title 5 of the Government Code) to review
the costs of financing the design and construction of a consolidated
rental car facility and the design, construction, and operation of
any common-use transportation system in which all of the following
occur:
(i) The airport establishes the amount of revenue necessary to
finance the reasonable cost to design and construct a consolidated
rental car facility and to design, construct, and operate any
common-use transportation system, or acquire vehicles for use in that
system, based on evidence presented during the hearing.
(ii) The airport finds, based on evidence presented during the
hearing, that the fee authorized in paragraph (1) will not generate
sufficient revenue to finance the reasonable costs to design and
construct a consolidated rental car facility and to design,
construct, and operate any common-use transportation system, or
acquire vehicles for use in that system.
(iii) The airport finds that the reasonable cost of the project
requires the additional amount of revenue that would be generated by
the proposed daily rate, including any rate increase, authorized
pursuant to this paragraph.
(iv) The airport outlines each of the following:
(I) Steps it has taken to limit costs.
(II) Other potential alternatives for meeting its revenue needs
other than the collection of the fee.
(III) The extent to which rental car companies or other businesses
or individuals using the facility or common-use transportation
system will pay for the costs associated with these facilities and
systems other than the fee from rental customers.
(B) The airport may not require the fee authorized in this
paragraph to be collected at any time that the fee authorized in
paragraph (1) of this subdivision is being collected.
(C) Pursuant to the procedure set forth in this subdivision, the
fee may be collected at a rate charged on a per-day basis subject to
the following conditions:
(i) Commencing January 1, 2011, the amount of the fee may not
exceed six dollars ($6) per day.
(ii) Commencing January 1, 2014, the amount of the fee may not
exceed seven dollars and fifty cents ($7.50) per day.
(iii) Commencing January 1, 2017, and thereafter, the amount of
the fee may not exceed nine dollars ($9) per day.
(iv) At no time shall the fee authorized in this paragraph be
collected from any customer for more than five days for each
individual rental car contract.
(v) An airport subject to this paragraph shall initiate the
process for obtaining the authority to require or increase the
alternative fee no later than January 1, 2018. Any airport that
obtains the authority to require or increase an alternative fee shall
be authorized to continue collecting that fee until the fee
authorization becomes inoperative pursuant to subparagraph (C) of
paragraph (4) of subdivision (a).
(3) Notwithstanding any other provision of law, including, but not
limited to, Part 1 (commencing with Section 6001) to Part 1.7
(commencing with Section 7280), inclusive, of Division 2 of the
Revenue and Taxation Code, the fees collected pursuant to this
section, or another law whereby a local agency operating an airport
requires a rental car company to collect a facility financing fee
from its customers, are not subject to sales, use, or transaction
taxes.
(n) (1) A rental company shall only advertise, quote, and charge a
rental rate that includes the entire amount except taxes, a customer
facility charge, if any, and a mileage charge, if any, that a renter
must pay to hire or lease the vehicle for the period of time to
which the rental rate applies. A rental company shall not charge in
addition to the rental rate, taxes, a customer facility charge, if
any, and a mileage charge, if any, any fee that is required to be
paid by the renter as a condition of hiring or leasing the vehicle,
including, but not limited to, required fuel or airport surcharges
other than customer facility charges, nor a fee for transporting the
renter to the location where the rented vehicle will be delivered to
the renter.
(2) In addition to the rental rate, taxes, customer facility
charges, if any, and mileage charges, if any, a rental company may
charge for an item or service provided in connection with a
particular rental transaction if the renter could have avoided
incurring the charge by choosing not to obtain or utilize the
optional item or service. Items and services for which the rental
company may impose an additional charge include, but are not limited
to, optional insurance and accessories requested by the renter,
service charges incident to the renter's optional return of the
vehicle to a location other than the location where the vehicle was
hired or leased, and charges for refueling the vehicle at the
conclusion of the rental transaction in the event the renter did not
return the vehicle with as much fuel as was in the fuel tank at the
beginning of the rental. A rental company also may impose an
additional charge based on reasonable age criteria established by the
rental company.
(3) A rental company shall not charge a fee for authorized drivers
in addition to the rental charge for an individual renter.
(4) If a rental company states a rental rate in print
advertisement or in a telephonic, in-person, or computer-transmitted
quotation, the rental company shall disclose clearly in that
advertisement or quotation the terms of mileage conditions relating
to the advertised or quoted rental rate, including, but not limited
to, to the extent applicable, the amount of mileage and gas charges,
the number of miles for which no charges will be imposed, and a
description of geographic driving limitations within the United
States and Canada.
(5) (A) When a rental rate is stated in an advertisement,
quotation, or reservation in connection with a car rental at an
airport where a customer facility charge is imposed, the rental
company shall disclose clearly the existence and amount of the
customer facility charge. For purposes of this subparagraph,
advertisements include radio, television, other electronic media, and
print advertisements. For purposes of this subparagraph, quotations
and reservations include those that are telephonic, in-person, and
computer-transmitted. If the rate advertisement is intended to
include transactions at more than one airport imposing a customer
facility charge, a range of fees may be stated in the advertisement.
However, all rate advertisements that include car rentals at airport
destinations shall clearly and conspicuously include a toll-free
telephone number whereby a customer can be told the specific amount
of the customer facility charge to which the customer will be
obligated.
(B) If a person or entity other than a rental car company,
including a passenger carrier or a seller of travel services,
advertises or quotes a rate for a car rental at an airport where a
customer facility charge is imposed, that person or entity shall,
provided that he, she, or it is provided with information about the
existence and amount of the fee, to the extent not specifically
prohibited by federal law, clearly disclose the existence and amount
of the fee in any telephonic, in-person, or computer-transmitted
quotation at the time of making an initial quotation of a rental rate
and at the time of making a reservation of a rental car. If a rental
car company provides the person or entity with rate and customer
facility charge information, the rental car company is not
responsible for the failure of that person or entity to comply with
this subparagraph when quoting or confirming a rate to a third person
or entity.
(6) If a rental company delivers a vehicle to a renter at a
location other than the location where the rental company normally
carries on its business, the rental company shall not charge the
renter an amount for the rental for the period before the delivery of
the vehicle. If a rental company picks up a rented vehicle from a
renter at a location other than the location where the rental company
normally carries on its business, the rental company shall not
charge the renter an amount for the rental for the period after the
renter notifies the rental company to pick up the vehicle.
(o) A rental company shall not use, access, or obtain any
information relating to the renter's use of the rental vehicle that
was obtained using electronic surveillance technology, except in the
following circumstances:
(1) (A) When the equipment is used by the rental company only for
the purpose of locating a stolen, abandoned, or missing rental
vehicle after one of the following:
(i) The renter or law enforcement has informed the rental company
that the vehicle is missing or has been stolen or abandoned.
(ii) The rental vehicle has not been returned following one week
after the contracted return date, or by one week following the end of
an extension of that return date.
(iii) The rental company discovers the rental vehicle has been
stolen or abandoned, and, if stolen, it shall report the vehicle
stolen to law enforcement by filing a stolen vehicle report, unless
law enforcement has already informed the rental company that the
vehicle is missing or has been stolen or abandoned.
(B) If electronic surveillance technology is activated pursuant to
subparagraph (A), a rental company shall maintain a record, in
either electronic or written form, of information relevant to the
activation of that technology. That information shall include the
rental agreement, including the return date, and the date and time
the electronic surveillance technology was activated. The record
shall also include, if relevant, a record of written or other
communication with the renter, including communications regarding
extensions of the rental, police reports, or other written
communication with law enforcement officials. The record shall be
maintained for a period of at least 12 months from the time the
record is created and shall be made available upon the renter's
request. The rental company shall maintain and furnish explanatory
codes necessary to read the record. A rental company shall not be
required to maintain a record if electronic surveillance technology
is activated to recover a rental vehicle that is stolen or missing at
a time other than during a rental period.
(2) In response to a specific request from law enforcement
pursuant to a subpoena or search warrant.
(3) This subdivision does not prohibit a rental company from
equipping rental vehicles with GPS-based technology that provides
navigation assistance to the occupants of the rental vehicle, if the
rental company does not use, access, or obtain information relating
to the renter's use of the rental vehicle that was obtained using
that technology, except for the purposes of discovering or repairing
a defect in the technology and the information may then be used only
for that purpose.
(4) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows for the remote locking or unlocking of the vehicle at the
request of the renter, if the rental company does not use, access,
or obtain information relating to the renter's use of the rental
vehicle that was obtained using that technology, except as necessary
to lock or unlock the vehicle.
(5) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows the company to provide roadside assistance, such as
towing, flat tire, or fuel services, at the request of the renter, if
the rental company does not use, access, or obtain information
relating to the renter's use of the rental vehicle that was obtained
using that technology except as necessary to provide the requested
roadside assistance.
(6) This subdivision does not prohibit a rental company from
obtaining, accessing, or using information from electronic
surveillance technology for the sole purpose of determining the date
and time the vehicle is returned to the rental company, and the total
mileage driven and the vehicle fuel level of the returned vehicle.
This paragraph, however, shall apply only after the renter has
returned the vehicle to the rental company, and the information shall
only be used for the purpose described in this paragraph.
(p) A rental company shall not use electronic surveillance
technology to track a renter in order to impose fines or surcharges
relating to the renter's use of the rental vehicle.
(q) A renter may bring an action against a rental company for the
recovery of damages and appropriate equitable relief for a violation
of this section. The prevailing party shall be entitled to recover
reasonable attorney's fees and costs.
(r) A rental company that brings an action against a renter for
loss due to theft of the vehicle shall bring the action in the county
in which the renter resides or, if the renter is not a resident of
this state, in the jurisdiction in which the renter resides.
(s) A waiver of any of the provisions of this section shall be
void and unenforceable as contrary to public policy.
(t) (1) A rental company's disclosure requirements shall be
satisfied for renters who are enrolled in the rental company's
membership program if all of the following conditions are met:
(A) Prior to the enrollee's first rental as a participant in the
program, the renter receives, in writing, the following:
(i) All of the disclosures required by paragraph (1) of
subdivision (g), including the terms and conditions of the rental
agreement then in effect.
(ii) An Internet Web site address, as well as a contact number or
address, where the enrollee can learn of changes to the rental
agreement or to the laws of this state governing rental agreements
since the effective date of the rental company's most recent
restatement of the rental agreement and distribution of that
restatement to its members.
(B) At the commencement of each rental period, the renter is
provided, on the rental record or the folder in which it is inserted,
with a printed notice stating that he or she had either previously
selected or declined an optional damage waiver and that the renter
has the right to change preferences.
(C) At the commencement of each rental period, the rental company
provides, on the rearview mirror, a hanger on which a statement is
printed, in a box, in at least 12-point boldface type, notifying the
renter that the collision damage waiver offered by the rental company
may be duplicative of coverage that the customer maintains under his
or her own policy of motor vehicle insurance. If it is not feasible
to hang the statement from the rearview mirror, it shall be hung from
the steering wheel.
The hanger shall provide the renter a box to initial if he or she
(not his or her employer) has previously accepted or declined the
collision damage waiver and that he or she now wishes to change his
or her decision to accept or decline the collision damage waiver, as
follows:
"/-/ If I previously accepted the collision damage waiver, I now
decline it.
/-/ If I previously declined the collision damage waiver, I now
accept it."
The hanger shall also provide a box for the enrollee to indicate
whether this change applies to this rental transaction only or to all
future rental transactions. The hanger shall also notify the renter
that he or she may make that change, prior to leaving the lot, by
returning the form to an employee designated to receive the form who
is present at the lot where the renter takes possession of the car,
to receive any change in the rental agreement from the renter.
(2) (A) This subdivision is not effective unless the employee
designated pursuant to subparagraph (E) of paragraph (8) of
subdivision (a) is actually present at the required location.
(B) This subdivision 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 rental rate; or in a telephonic, in-person, or
computer-transmitted quotation or reservation.
(u) The amendments made to this section during the 2001-02 Regular
Session of the Legislature do not affect litigation pending on or
before January 1, 2003, alleging a violation of Section 22325 of the
Business and Professions Code as it read at the time the action was
commenced.
(v) This section shall become operative on January 1, 2020.
SEC. 5.7. Section 1936 of the Civil Code, as amended by Section 2
of Chapter 549 of the Statutes of 2013, is amended to read:
1936. (a) For the purpose of this section, the following
definitions shall apply:
(1) "Rental company" means a person or entity in the business of
renting passenger vehicles to the public.
(2) "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.
(3) "Authorized driver" means all of the following:
(A) The renter.
(B) The renter's spouse if that person is a licensed driver and
satisfies the rental company's minimum age requirement.
(C) The renter's employer or coworker if he or she is engaged in
business activity with the renter, is a licensed driver, and
satisfies the rental company's minimum age requirement.
(D) A person expressly listed by the rental company on that renter'
s contract as an authorized driver.
(4) (A) "Customer facility charge" means any fee, including an
alternative fee, required by an airport to be collected by a rental
company from a renter for any of the following purposes:
(i) To finance, design, and construct consolidated airport car
rental facilities.
(ii) To finance, design, construct, and operate common-use
transportation systems that move passengers between airport terminals
and those consolidated car rental facilities, and acquire vehicles
for use in that system.
(iii) To finance, design, and construct terminal modifications
solely to accommodate and provide customer access to common-use
transportation systems.
(B) The aggregate amount to be collected shall not exceed the
reasonable costs, as determined by an audit, by an independent
auditor, paid for by the airport, to finance, design, and construct
those facilities. The auditor shall independently examine and
substantiate the necessity for and the amount of the customer
facility charge, including whether the airport's actual or projected
costs are supported and justified, any steps the airport may take to
limit costs, potential alternatives for meeting the airport's revenue
needs other than the collection of the fee, and whether and to what
extent car rental companies or other businesses or individuals using
the facility or common-use transportation system may pay for the
costs associated with these facilities and systems other than the fee
from rental customers, or whether the airport did not comply with
any provision of this subparagraph. Copies of the audit shall be
provided to the Assembly and Senate Committees on Judiciary, the
Assembly Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport's
Internet Web site. In the case of a customer facility charge for a
common-use transportation system, the audit also shall consider the
reasonable costs of providing the transit system or busing network
pursuant to clause (ii) of subparagraph (A). Any audit required by
this subparagraph may be included as a part of an audit of an airport'
s finances. Notwithstanding clause (iii) of subparagraph (A), the
fees designated as a customer facility charge shall not be used to
pay for terminal expansion, gate expansion, runway expansion, changes
in hours of operation, or changes in the number of flights arriving
or departing from the airport.
(C) Except as provided in subparagraph (D), the authorization
given pursuant to this section for an airport to impose a customer
facility charge shall become inoperative when the bonds used for
financing are paid.
(D) If a bond or other form of indebtedness is not used for
financing, or the bond or other form of indebtedness used for
financing has been paid, the Oakland International Airport may
require the collection of a customer facility charge for a period of
up to 10 years from the imposition of the charge for the purposes
allowed by, and subject to the conditions imposed by, this section.
(5) "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.
(6) "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:
(A) For the purpose of identifying, diagnosing, or monitoring
functions related to the potential need to repair, service, or
perform maintenance on the rental vehicle.
(B) 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.
(7) "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."
(8) "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.
(9) "Membership program" means a service offered by a rental
company that permits customers to bypass the rental counter and go
directly to the car previously reserved. A membership program shall
meet all of the following requirements:
(A) 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.
(B) 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.
(C) The renter may terminate enrollment at any time.
(D) 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.
(E) An employee designated to receive the form specified in
subparagraph (C) of paragraph (1) of subdivision (s) is present at
the lot where the renter takes possession of the car, to receive any
change in the rental agreement from the renter.
(10) "Passenger vehicle" means a passenger vehicle as defined in
Section 465 of the Vehicle Code.
(b) Except as limited by subdivision (c), a rental company and a
renter may agree that the renter will be responsible for no more than
all of the following:
(1) Physical or mechanical damage to the rented vehicle up to its
fair market value, as determined in the customary market for the sale
of that vehicle, resulting from collision regardless of the cause of
the damage.
(2) Loss due to theft of the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, provided that the rental company establishes by clear and
convincing evidence that the renter or the authorized driver failed
to exercise ordinary care while in possession of the vehicle. In
addition, the renter shall be presumed to have no liability for any
loss due to theft if (A) an authorized driver has possession of the
ignition key furnished by the rental company or an authorized driver
establishes that the ignition key furnished by the rental company was
not in the vehicle at the time of the theft, and (B) an authorized
driver files an official report of the theft with the police or other
law enforcement agency within 24 hours of learning of the theft and
reasonably cooperates with the rental company and the police or other
law enforcement agency in providing information concerning the
theft. The presumption set forth in this paragraph is a presumption
affecting the burden of proof which the rental company may rebut by
establishing that an authorized driver committed, or aided and
abetted the commission of, the theft.
(3) Physical damage to the rented
vehicle up to its fair market value, as determined in the customary
market for the sale of that vehicle, resulting from vandalism
occurring after, or in connection with, the theft of the rented
vehicle. However, the renter shall have no liability for any damage
due to vandalism if the renter would have no liability for theft
pursuant to paragraph (2).
(4) Physical damage to the rented vehicle up to a total of five
hundred dollars ($500) resulting from vandalism unrelated to the
theft of the rented vehicle.
(5) Actual charges for towing, storage, and impound fees paid by
the rental company if the renter is liable for damage or loss.
(6) An administrative charge, which shall include the cost of
appraisal and all other costs and expenses incident to the damage,
loss, repair, or replacement of the rented vehicle.
(c) The total amount of the renter's liability to the rental
company resulting from damage to the rented vehicle shall not exceed
the sum of the following:
(1) The estimated cost of parts which the rental company would
have to pay to replace damaged vehicle parts. All discounts and price
reductions or adjustments that are or will be received by the rental
company shall be subtracted from the estimate to the extent not
already incorporated in the estimate, or otherwise promptly credited
or refunded to the renter.
(2) The estimated cost of labor to replace damaged vehicle parts,
which shall not exceed the product of (A) the rate for labor usually
paid by the rental company to replace vehicle parts of the type that
were damaged and (B) the estimated time for replacement. All
discounts and price reductions or adjustments that are or will be
received by the rental company shall be subtracted from the estimate
to the extent not already incorporated in the estimate, or otherwise
promptly credited or refunded to the renter.
(3) (A) The estimated cost of labor to repair damaged vehicle
parts, which shall not exceed the lesser of the following:
(i) The product of the rate for labor usually paid by the rental
company to repair vehicle parts of the type that were damaged and the
estimated time for repair.
(ii) The sum of the estimated labor and parts costs determined
under paragraphs (1) and (2) to replace the same vehicle parts.
(B) All discounts and price reductions or adjustments that are or
will be received by the rental company shall be subtracted from the
estimate to the extent not already incorporated in the estimate, or
otherwise promptly credited or refunded to the renter.
(4) For the purpose of converting the estimated time for repair
into the same units of time in which the rental rate is expressed, a
day shall be deemed to consist of eight hours.
(5) Actual charges for towing, storage, and impound fees paid by
the rental company.
(6) The administrative charge described in paragraph (6) of
subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
estimated cost for parts and labor is more than one hundred dollars
($100) up to and including five hundred dollars ($500), (B) one
hundred dollars ($100) if the total estimated cost for parts and
labor exceeds five hundred dollars ($500) up to and including one
thousand five hundred dollars ($1,500), and (C) one hundred fifty
dollars ($150) if the total estimated cost for parts and labor
exceeds one thousand five hundred dollars ($1,500). An administrative
charge shall not be imposed if the total estimated cost of parts and
labor is one hundred dollars ($100) or less.
(d) (1) The total amount of an authorized driver's liability to
the rental company, if any, for damage occurring during the
authorized driver's operation of the rented vehicle shall not exceed
the amount of the renter's liability under subdivision (c).
(2) A rental company shall not recover from the renter or other
authorized driver an amount exceeding the renter's liability under
subdivision (c).
(3) A claim against a renter resulting from damage or loss,
excluding loss of use, to a rental vehicle shall be reasonably and
rationally related to the actual loss incurred. A rental company
shall mitigate damages where possible and shall not assert or collect
a claim for physical damage which exceeds the actual costs of the
repairs performed or the estimated cost of repairs, if the rental
company chooses not to repair the vehicle, including all discounts
and price reductions. However, if the vehicle is a total loss
vehicle, the claim shall not exceed the total loss vehicle value
established in accordance with procedures that are customarily used
by insurance companies when paying claims on total loss vehicles,
less the proceeds from salvaging the vehicle, if those proceeds are
retained by the rental company.
(4) If insurance coverage exists under the renter's applicable
personal or business insurance policy and the coverage is confirmed
during regular business hours, the renter may require that the rental
company submit any claims to the renter's applicable personal or
business insurance carrier. The rental company shall not make any
written or oral representations that it will not present claims or
negotiate with the renter's insurance carrier. For purposes of this
paragraph, confirmation of coverage includes telephone confirmation
from insurance company representatives during regular business hours.
Upon request of the renter and after confirmation of coverage, the
amount of claim shall be resolved between the insurance carrier and
the rental company. The renter shall remain responsible for payment
to the rental car company for any loss sustained that the renter's
applicable personal or business insurance policy does not cover.
(5) A rental company shall not recover from the renter or other
authorized driver for an item described in subdivision (b) to the
extent the rental company obtains recovery from another person.
(6) This section applies only to the maximum liability of a renter
or other authorized driver to the rental company resulting from
damage to the rented vehicle and not to the liability of another
person.
(e) (1) Except as provided in subdivision (f), a damage waiver
shall provide or, if not expressly stated in writing, shall be deemed
to provide that the renter has no liability for damage, loss, loss
of use, or a cost or expense incident thereto.
(2) Except as provided in subdivision (f), every limitation,
exception, or exclusion to a damage waiver is void and unenforceable.
(f) A rental company may provide in the rental contract that a
damage waiver does not apply under any of the following
circumstances:
(1) Damage or loss results from an authorized driver's (A)
intentional, willful, wanton, or reckless conduct, (B) operation of
the vehicle under the influence of drugs or alcohol in violation of
Section 23152 of the Vehicle Code, (C) towing or pushing anything, or
(D) operation of the vehicle on an unpaved road if the damage or
loss is a direct result of the road or driving conditions.
(2) Damage or loss occurs while the vehicle is (A) used for
commercial hire, (B) used in connection with conduct that could be
properly charged as a felony, (C) involved in a speed test or contest
or in driver training activity, (D) operated by a person other than
an authorized driver, or (E) operated outside the United States.
(3) An authorized driver who has (A) provided fraudulent
information to the rental company, or (B) provided false information
and the rental company would not have rented the vehicle if it had
instead received true information.
(g) (1) A rental company that offers or provides a damage waiver
for any consideration in addition to the rental rate shall clearly
and conspicuously disclose the following information in the rental
contract or holder in which the contract is placed and, also, in
signs posted at the place, such as the counter, where the renter
signs the rental contract, and, for renters who are enrolled in the
rental company's membership program, in a sign that shall be posted
in a location clearly visible to those renters as they enter the
location where their reserved rental cars are parked or near the exit
of the bus or other conveyance that transports the enrollee to a
reserved car: (A) the nature of the renter's liability, such as
liability for all collision damage regardless of cause, (B) the
extent of the renter's liability, such as liability for damage or
loss up to a specified amount, (C) the renter's personal insurance
policy or the credit card used to pay for the car rental transaction
may provide coverage for all or a portion of the renter's potential
liability, (D) the renter should consult with his or her insurer to
determine the scope of insurance coverage, including the amount of
the deductible, if any, for which the renter is obligated, (E) the
renter may purchase an optional damage waiver to cover all liability,
subject to whatever exceptions the rental company expressly lists
that are permitted under subdivision (f), and (F) the range of
charges for the damage waiver.
(2) In addition to the requirements of paragraph (1), a rental
company that offers or provides a damage waiver shall orally disclose
to all renters, except those who are 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. The renter's receipt of the
oral disclosure shall be demonstrated through the renter's
acknowledging receipt of the oral disclosure near that part of the
contract where the renter indicates, by the renter's own initials,
his or her acceptance or declination of the damage waiver. Adjacent
to that same part, the contract also shall state that the damage
waiver is optional. Further, the contract for these renters shall
include a clear and conspicuous written disclosure that the damage
waiver may be duplicative of coverage that the customer maintains
under his or her own policy of motor vehicle insurance.
(3) The following is an example, for purposes of illustration and
not limitation, of a notice fulfilling the requirements of paragraph
(1) for a rental company that imposes liability on the renter for
collision damage to the full value of the vehicle:
"NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY AND OPTIONAL DAMAGE
WAIVER
You are responsible for all collision damage to the rented vehicle
even if someone else caused it or the cause is unknown. You are
responsible for the cost of repair up to the value of the vehicle,
and towing, storage, and impound fees.
Your own insurance, or the issuer of the credit card you use to
pay for the car rental transaction, may cover all or part of your
financial responsibility for the rented vehicle. You should check
with your insurance company, or credit card issuer, to find out about
your coverage and the amount of the deductible, if any, for which
you may be liable.
Further, if you use a credit card that provides coverage for your
potential liability, you should check with the issuer to determine if
you must first exhaust the coverage limits of your own insurance
before the credit card coverage applies.
The rental company will not hold you responsible if you buy a
damage waiver. But a damage waiver will not protect you if (list
exceptions)."
(A) When the above notice is printed in the rental contract or
holder in which the contract is placed, the following shall be
printed immediately following the notice:
"The cost of an optional damage waiver is $____ for every (day or
week)."
(B) When the above notice appears on a sign, the following shall
appear immediately adjacent to the notice:
"The cost of an optional damage waiver is $____ to $____ for every
(day or week), depending upon the vehicle rented."
(h) Notwithstanding any other provision of law, a rental company
may sell a damage waiver subject to the following rate limitations
for each full or partial 24-hour rental day for the damage waiver:
(1) For rental vehicles that the rental company designates as an
"economy car," "compact car," or another term having similar meaning
to the two smallest body-size categories of vehicles established by
the Association of Car Rental Industry Systems Standards for North
America, as of January 1, 2014, when offered for rental, the rate
shall not exceed eleven dollars ($11).
(2) For rental vehicles that the rental company designates as an
"intermediate car," "standard car," or "full-size car," or another
term having similar meaning to the next three body-size categories of
vehicles established by the Association of Car Rental Industry
Systems Standards for North America, as of January 1, 2014, and that
are also either vehicles of the next model year, or not older than
the previous year's model, when offered for rental, the rate shall
not exceed seventeen dollars ($17). For rental vehicles that are
older than the previous year's model year, the rate shall not exceed
eleven dollars ($11).
(i) A rental company that disseminates in this state an
advertisement containing a rental rate shall include in that
advertisement a clearly readable statement of the charge for a damage
waiver and a statement that a damage waiver is optional.
(j) (1) A rental company shall not require the purchase of a
damage waiver, optional insurance, or another optional good or
service.
(2) A rental company shall not engage in any unfair, deceptive, or
coercive conduct to induce a renter to purchase the damage waiver,
optional insurance, or another optional good or service, including
conduct such as, but not limited to, refusing to honor the renter's
reservation, limiting the availability of vehicles, requiring a
deposit, or debiting or blocking the renter's credit card account for
a sum equivalent to a deposit if the renter declines to purchase the
damage waiver, optional insurance, or another optional good or
service.
(k) (1) In the absence of express permission granted by the renter
subsequent to damage to, or loss of, the vehicle, a rental company
shall not seek to recover any portion of a claim arising out of
damage to, or loss of, the rented vehicle by processing a credit card
charge or causing a debit or block to be placed on the renter's
credit card account.
(2) A rental company shall not engage in any unfair, deceptive, or
coercive tactics in attempting to recover or in recovering on any
claim arising out of damage to, or loss of, the rented vehicle.
(l) (1) A customer facility charge may be collected by a rental
company under the following circumstances:
(A) Collection of the fee by the rental company is required by an
airport operated by a city, a county, a city and county, a joint
powers authority, a special district, or the San Diego County
Regional Airport Authority formed pursuant to Division 17 (commencing
with Section 170000) of the Public Utilities Code.
(B) The fee is calculated on a per contract basis or as provided
in paragraph (2).
(C) The fee is a user fee, not a tax imposed upon real property or
an incident of property ownership under Article XIII D of the
California Constitution.
(D) Except as otherwise provided in subparagraph (E), the fee
shall be ten dollars ($10) per contract or the amount provided in
paragraph (2).
(E) The fee for a consolidated rental car facility shall be
collected only from customers of on-airport rental car companies. If
the fee imposed by the airport is for both a consolidated rental car
facility and a common-use transportation system, the fee collected
from customers of on-airport rental car companies shall be ten
dollars ($10) or the amount provided in paragraph (2), but the fee
imposed on customers of off-airport rental car companies who are
transported on the common-use transportation system is proportionate
to the costs of the common-use transportation system only. The fee is
uniformly applied to each class of on-airport or off-airport
customers, provided that the airport requires off-airport customers
to use the common-use transportation system. For purposes of this
subparagraph, "on-airport rental car company" means a rental company
operating under an airport property lease or an airport concession or
license agreement whose customers use or will use the consolidated
rental car facility and the collection of the fee as to those
customers is consistent with subparagraph (C).
(F) Revenues collected from the fee do not exceed the reasonable
costs of financing, designing, and constructing the facility and
financing, designing, constructing, and operating any common-use
transportation system, or acquiring vehicles for use in that system,
and shall not be used for any other purpose.
(G) The fee is separately identified on the rental agreement.
(H) This paragraph does not apply to fees which are governed by
Section 50474.1 of the Government Code or Section 57.5 of the San
Diego Unified Port District Act (Chapter 67 of the First
Extraordinary Session of the Statutes of 1962).
(I) For any airport seeking to require rental car companies to
collect an alternative customer facility charge pursuant to paragraph
(2), the following provisions apply:
(i) Notwithstanding Section 10231.5 of the Government Code, the
airport shall provide reports on an annual basis to the Senate and
Assembly Committees on Judiciary detailing all of the following:
(I) The total amount of the customer facility charge collected.
(II) How the funds are being spent.
(III) The amount of and reason for any changes in the airport's
budget or financial needs for the facility or common-use
transportation system.
(IV) Whether airport concession fees authorized by Section 1936.01
have increased since the prior report, if any.
(ii) (I) The airport shall complete the audit required by
subparagraph (B) of paragraph (4) of subdivision (a) prior to the
initial collection of the customer facility charge. Notwithstanding
Section 10231.5 of the Government Code, copies of the audit shall be
provided to the Assembly and Senate Committees on Judiciary, the
Assembly Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport's
Internet Web site.
(II) Prior to any increase pursuant to paragraph (2), the airport
shall update the information provided in the initial collection audit
pursuant to subclause (I). Notwithstanding Section 10231.5 of the
Government Code, copies of the updated audit shall be provided to the
Assembly and Senate Committees on Judiciary, the Assembly Committee
on Transportation, and the Senate Committee on Transportation and
Housing, and shall be posted on the airport's Internet Web site.
(III) An audit shall be completed every three years after initial
collection only if the customer facility charge is collected for the
purpose of operating a common-use transportation system or to acquire
vehicles for use in the system pursuant to clause (ii) of
subparagraph (A) of paragraph (4) of subdivision (a). A regularly
conducted audit of airport finances that includes the customer
facility charge information, that satisfies the requirements of
subparagraph (B) of paragraph (4) of subdivision (a), and is produced
in accordance with the generally accepted accounting principles of
the Government Accounting Standards Board, shall satisfy the
requirements of this subclause. This obligation shall continue until
the fee authorization becomes inoperative pursuant to subparagraph
(C) of paragraph (4) of subdivision (a). Notwithstanding Section
10231.5 of the Government Code, the information reported pursuant to
this subclause shall be compiled into one document, shall be provided
to the Assembly and Senate Committees on Judiciary, the Assembly
Committee on Transportation, and the Senate Committee on
Transportation and Housing and shall be posted on the airport's
Internet Web site accessible to the public. The information reported
shall be contained within one easily accessible page contained within
the airport's Internet Web site.
(IV) This section shall not be construed to require an airport to
audit a common-use transportation system not financed by a customer
facility charge and used for the purposes permitted pursuant to
clause (ii) of subparagraph (A) of paragraph (4) of subdivision (a).
(V) The airport shall post on the airport's Internet Web site
copies of the completed audits required by this clause for a period
of six years following the audit's completion.
(iii) Use of the bonds shall be limited to construction and design
of the consolidated rental car facility, terminal modifications, and
operating costs of the common-use transportation system, as
specified in paragraph (4) of subdivision (a).
(2) Any airport may require rental car companies to collect an
alternative customer facility charge under the following conditions:
(A) The airport first conducts a publicly noticed hearing pursuant
to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)
of Part 1 of Division 2 of Title 5 of the Government Code) to review
the costs of financing the design and construction of a consolidated
rental car facility and the design, construction, and operation of
any common-use transportation system in which all of the following
occur:
(i) The airport establishes the amount of revenue necessary to
finance the reasonable cost to design and construct a consolidated
rental car facility and to design, construct, and operate any
common-use transportation system, or acquire vehicles for use in that
system, based on evidence presented during the hearing.
(ii) The airport finds, based on evidence presented during the
hearing, that the fee authorized in paragraph (1) will not generate
sufficient revenue to finance the reasonable costs to design and
construct a consolidated rental car facility and to design,
construct, and operate any common-use transportation system, or
acquire vehicles for use in that system.
(iii) The airport finds that the reasonable cost of the project
requires the additional amount of revenue that would be generated by
the proposed daily rate, including any rate increase, authorized
pursuant to this paragraph.
(iv) The airport outlines each of the following:
(I) Steps it has taken to limit costs.
(II) Other potential alternatives for meeting its revenue needs
other than the collection of the fee.
(III) The extent to which rental car companies or other businesses
or individuals using the facility or common-use transportation
system will pay for the costs associated with these facilities and
systems other than the fee from rental customers.
(B) The airport may not require the fee authorized in this
paragraph to be collected at any time that the fee authorized in
paragraph (1) of this subdivision is being collected.
(C) Pursuant to the procedure set forth in this subdivision, the
fee may be collected at a rate charged on a per-day basis subject to
the following conditions:
(i) Commencing January 1, 2011, the amount of the fee may not
exceed six dollars ($6) per day.
(ii) Commencing January 1, 2014, the amount of the fee may not
exceed seven dollars and fifty cents ($7.50) per day.
(iii) Commencing January 1, 2017, and thereafter, the amount of
the fee may not exceed nine dollars ($9) per day.
(iv) At no time shall the fee authorized in this paragraph be
collected from any customer for more than five days for each
individual rental car contract.
(v) An airport subject to this paragraph shall initiate the
process for obtaining the authority to require or increase the
alternative fee no later than January 1, 2018. Any airport that
obtains the authority to require or increase an alternative fee shall
be authorized to continue collecting that fee until the fee
authorization becomes inoperative pursuant to subparagraph (C) of
paragraph (4) of subdivision (a).
(3) Notwithstanding any other provision of law, including, but not
limited to, Part 1 (commencing with Section 6001) to Part 1.7
(commencing with Section 7280), inclusive, of Division 2 of the
Revenue and Taxation Code, the fees collected pursuant to this
section, or another law whereby a local agency operating an airport
requires a rental car company to collect a facility financing fee
from its customers, are not subject to sales, use, or transaction
taxes.
(m) (1) A rental company shall only advertise, quote, and charge a
rental rate that includes the entire amount except taxes, a customer
facility charge, if any, and a mileage charge, if any, that a renter
must pay to hire or lease the vehicle for the period of time to
which the rental rate applies. A rental company shall not charge in
addition to the rental rate, taxes, a customer facility charge, if
any, and a mileage charge, if any, any fee that is required to be
paid by the renter as a condition of hiring or leasing the vehicle,
including, but not limited to, required fuel or airport surcharges
other than customer facility charges, nor a fee for transporting the
renter to the location where the rented vehicle will be delivered to
the renter.
(2) In addition to the rental rate, taxes, customer facility
charges, if any, and mileage charges, if any, a rental company may
charge for an item or service provided in connection with a
particular rental transaction if the renter could have avoided
incurring the charge by choosing not to obtain or utilize the
optional item or service. Items and services for which the rental
company may impose an additional charge include, but are not limited
to, optional insurance and accessories requested by the renter,
service charges incident to the renter's optional return of the
vehicle to a location other than the location where the vehicle was
hired or leased, and charges for refueling the vehicle at the
conclusion of the rental transaction in the event the renter did not
return the vehicle with as much fuel as was in the fuel tank at the
beginning of the rental. A rental company also may impose an
additional charge based on reasonable age criteria established by the
rental company.
(3) A rental company shall not charge a fee for authorized drivers
in addition to the rental charge for an individual renter.
(4) If a rental company states a rental rate in print
advertisement or in a telephonic, in-person, or computer-transmitted
quotation, the rental company shall disclose clearly in that
advertisement or quotation the terms of mileage conditions relating
to the advertised or quoted rental rate, including, but not limited
to, to the extent applicable, the amount of mileage and gas charges,
the number of miles for which no charges will be imposed, and a
description of geographic driving limitations within the
United States and Canada.
(5) (A) When a rental rate is stated in an advertisement,
quotation, or reservation in connection with a car rental at an
airport where a customer facility charge is imposed, the rental
company shall disclose clearly the existence and amount of the
customer facility charge. For purposes of this subparagraph,
advertisements include radio, television, other electronic media, and
print advertisements. For purposes of this subparagraph, quotations
and reservations include those that are telephonic, in-person, and
computer-transmitted. If the rate advertisement is intended to
include transactions at more than one airport imposing a customer
facility charge, a range of fees may be stated in the advertisement.
However, all rate advertisements that include car rentals at airport
destinations shall clearly and conspicuously include a toll-free
telephone number whereby a customer can be told the specific amount
of the customer facility charge to which the customer will be
obligated.
(B) If a person or entity other than a rental car company,
including a passenger carrier or a seller of travel services,
advertises or quotes a rate for a car rental at an airport where a
customer facility charge is imposed, that person or entity shall,
provided that he, she, or it is provided with information about the
existence and amount of the fee, to the extent not specifically
prohibited by federal law, clearly disclose the existence and amount
of the fee in any telephonic, in-person, or computer-transmitted
quotation at the time of making an initial quotation of a rental rate
and at the time of making a reservation of a rental car. If a rental
car company provides the person or entity with rate and customer
facility charge information, the rental car company is not
responsible for the failure of that person or entity to comply with
this subparagraph when quoting or confirming a rate to a third person
or entity.
(6) If a rental company delivers a vehicle to a renter at a
location other than the location where the rental company normally
carries on its business, the rental company shall not charge the
renter an amount for the rental for the period before the delivery of
the vehicle. If a rental company picks up a rented vehicle from a
renter at a location other than the location where the rental company
normally carries on its business, the rental company shall not
charge the renter an amount for the rental for the period after the
renter notifies the rental company to pick up the vehicle.
(n) A rental company shall not use, access, or obtain any
information relating to the renter's use of the rental vehicle that
was obtained using electronic surveillance technology, except in the
following circumstances:
(1) (A) When the equipment is used by the rental company only for
the purpose of locating a stolen, abandoned, or missing rental
vehicle after one of the following:
(i) The renter or law enforcement has informed the rental company
that the vehicle is missing or has been stolen or abandoned.
(ii) The rental vehicle has not been returned following one week
after the contracted return date, or by one week following the end of
an extension of that return date.
(iii) The rental company discovers the rental vehicle has been
stolen or abandoned, and, if stolen, it shall report the vehicle
stolen to law enforcement by filing a stolen vehicle report, unless
law enforcement has already informed the rental company that the
vehicle is missing or has been stolen or abandoned.
(B) If electronic surveillance technology is activated pursuant to
subparagraph (A), a rental company shall maintain a record, in
either electronic or written form, of information relevant to the
activation of that technology. That information shall include the
rental agreement, including the return date, and the date and time
the electronic surveillance technology was activated. The record
shall also include, if relevant, a record of written or other
communication with the renter, including communications regarding
extensions of the rental, police reports, or other written
communication with law enforcement officials. The record shall be
maintained for a period of at least 12 months from the time the
record is created and shall be made available upon the renter's
request. The rental company shall maintain and furnish explanatory
codes necessary to read the record. A rental company shall not be
required to maintain a record if electronic surveillance technology
is activated to recover a rental vehicle that is stolen or missing at
a time other than during a rental period.
(2) In response to a specific request from law enforcement
pursuant to a subpoena or search warrant.
(3) This subdivision does not prohibit a rental company from
equipping rental vehicles with GPS-based technology that provides
navigation assistance to the occupants of the rental vehicle, if the
rental company does not use, access, or obtain information relating
to the renter's use of the rental vehicle that was obtained using
that technology, except for the purposes of discovering or repairing
a defect in the technology and the information may then be used only
for that purpose.
(4) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows for the remote locking or unlocking of the vehicle at the
request of the renter, if the rental company does not use, access,
or obtain information relating to the renter's use of the rental
vehicle that was obtained using that technology, except as necessary
to lock or unlock the vehicle.
(5) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows the company to provide roadside assistance, such as
towing, flat tire, or fuel services, at the request of the renter, if
the rental company does not use, access, or obtain information
relating to the renter's use of the rental vehicle that was obtained
using that technology except as necessary to provide the requested
roadside assistance.
(6) This subdivision does not prohibit a rental company from
obtaining, accessing, or using information from electronic
surveillance technology for the sole purpose of determining the date
and time the vehicle is returned to the rental company, and the total
mileage driven and the vehicle fuel level of the returned vehicle.
This paragraph, however, shall apply only after the renter has
returned the vehicle to the rental company, and the information shall
only be used for the purpose described in this paragraph.
(o) A rental company shall not use electronic surveillance
technology to track a renter in order to impose fines or surcharges
relating to the renter's use of the rental vehicle.
(p) A renter may bring an action against a rental company for the
recovery of damages and appropriate equitable relief for a violation
of this section. The prevailing party shall be entitled to recover
reasonable attorney's fees and costs.
(q) A rental company that brings an action against a renter for
loss due to theft of the vehicle shall bring the action in the county
in which the renter resides or, if the renter is not a resident of
this state, in the jurisdiction in which the renter resides.
(r) A waiver of any of the provisions of this section shall be
void and unenforceable as contrary to public policy.
(s) (1) A rental company's disclosure requirements shall be
satisfied for renters who are enrolled in the rental company's
membership program if all of the following conditions are met:
(A) Prior to the enrollee's first rental as a participant in the
program, the renter receives, in writing, the following:
(i) All of the disclosures required by paragraph (1) of
subdivision (g), including the terms and conditions of the rental
agreement then in effect.
(ii) An Internet Web site address, as well as a contact number or
address, where the enrollee can learn of changes to the rental
agreement or to the laws of this state governing rental agreements
since the effective date of the rental company's most recent
restatement of the rental agreement and distribution of that
restatement to its members.
(B) At the commencement of each rental period, the renter is
provided, on the rental record or the folder in which it is inserted,
with a printed notice stating that he or she had either previously
selected or declined an optional damage waiver and that the renter
has the right to change preferences.
(C) At the commencement of each rental period, the rental company
provides, on the rearview mirror, a hanger on which a statement is
printed, in a box, in at least 12-point boldface type, notifying the
renter that the collision damage waiver offered by the rental company
may be duplicative of coverage that the customer maintains under his
or her own policy of motor vehicle insurance. If it is not feasible
to hang the statement from the rearview mirror, it shall be hung from
the steering wheel.
The hanger shall provide the renter a box to initial if he or she
(not his or her employer) has previously accepted or declined the
collision damage waiver and that he or she now wishes to change his
or her decision to accept or decline the collision damage waiver, as
follows:
"If I previously accepted the collision damage waiver, I now
decline it.
If I previously declined the collision damage waiver, I now accept
it."
The hanger shall also provide a box for the enrollee to indicate
whether this change applies to this rental transaction only or to all
future rental transactions. The hanger shall also notify the renter
that he or she may make that change, prior to leaving the lot, by
returning the form to an employee designated to receive the form who
is present at the lot where the renter takes possession of the car,
to receive any change in the rental agreement from the renter.
(2) (A) This subdivision is not effective unless the employee
designated pursuant to subparagraph (E) of paragraph (8) of
subdivision (a) is actually present at the required location.
(B) This subdivision 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 rental rate; or in a telephonic, in-person, or
computer-transmitted quotation or reservation.
(t) The amendments made to this section during the 2001-02 Regular
Session of the Legislature do not affect litigation pending on or
before January 1, 2003, alleging a violation of Section 22325 of the
Business and Professions Code as it read at the time the action was
commenced.
(u) This section shall become operative on January 1, 2020.
SEC. 6. Section 1942.2 of the Civil Code is amended to read:
1942.2. A tenant who has made a payment to a utility pursuant to
Section 777, 777.1, 10009, 10009.1, 12822, 12822.1, 16481, or 16481.1
of the Public Utilities Code, or to a district pursuant to Section
60371 of the Government Code, may deduct the payment from the rent as
provided in that section.
SEC. 7. Section 415.46 of the Code of Civil Procedure is amended
to read:
415.46. (a) In addition to the service of a summons and complaint
in an action for unlawful detainer upon a tenant and subtenant, if
any, as prescribed by this article, a prejudgment claim of right to
possession may also be served on any person who appears to be or who
may claim to have occupied the premises at the time of the filing of
the action. Service upon occupants shall be made pursuant to
subdivision (c) by serving a copy of a prejudgment claim of right to
possession, as specified in subdivision (f), attached to a copy of
the summons and complaint at the same time service is made upon the
tenant and subtenant, if any.
(b) Service of the prejudgment claim of right to possession in
this manner shall be effected by a marshal, sheriff, or registered
process server.
(c) (1) When serving the summons and complaint upon a tenant and
subtenant, if any, the marshal, sheriff, or registered process server
shall make a reasonably diligent effort to ascertain whether there
are other adult occupants of the premises who are not named in the
summons and complaint by inquiring of the person or persons who are
being personally served, or any person of suitable age and discretion
who appears to reside upon the premises, whether there are other
occupants of the premises.
(2) If the identity of such an occupant is disclosed to the
officer or process server and the occupant is present at the
premises, the officer or process server shall serve that occupant
with a copy of the prejudgment claim of right to possession attached
to a copy of the summons and complaint. If personal service cannot be
made upon that occupant at that time, service may be effected by
leaving a copy of a prejudgment claim of right to possession attached
to a copy of the summons and complaint addressed to that occupant
with a person of suitable age and discretion at the premises,
affixing the same so that it is not readily removable in a
conspicuous place on the premises in a manner most likely to give
actual notice to that occupant, and sending the same addressed to
that occupant by first-class mail.
(3) In addition to the service on an identified occupant, or if no
occupant is disclosed to the officer or process server, or if
substituted service is made upon the tenant and subtenant, if any,
the officer or process server shall serve a prejudgment claim of
right to possession for all other persons who may claim to occupy the
premises at the time of the filing of the action by leaving a copy
of a prejudgment claim of right to possession attached to a copy of
the summons and complaint at the premises at the same time service is
made upon the tenant and subtenant, if any, affixing the same so
that it is not readily removable in a conspicuous place on the
premises so that it is likely to give actual notice to an occupant,
and sending the same addressed to "all occupants in care of the named
tenant" to the premises by first-class mail.
(4) The person serving process shall state the date of service on
the prejudgment claim of right to possession form. However, the
absence of the date of service on the prejudgment claim of right to
possession does not invalidate the claim.
(d) Proof of service under this section shall be filed with the
court and shall include a statement that service was made pursuant to
this section. Service on occupants in accordance with this section
shall not alter or affect service upon the tenant or subtenant, if
any.
(e) (1) If an owner or his or her agent has directed and obtained
service of a prejudgment claim of right to possession in accordance
with this section, no occupant of the premises, whether or not that
occupant is named in the judgment for possession, may object to the
enforcement of that judgment as prescribed in Section 1174.3.
(2) In any action for unlawful detainer resulting from a
foreclosure sale of a rental housing unit pursuant to Section 1161a,
paragraph (1) shall not limit the right of any tenant or subtenant of
the property to file a prejudgment claim of right of possession
pursuant to subdivision (a) of Section 1174.25 at any time before
judgment, or to object to enforcement of a judgment for possession as
prescribed in Section 1174.3, regardless of whether the tenant or
subtenant was served with a prejudgment claim of right to possession.
(f) The prejudgment claim of right to possession shall be made on
the following form: GRAPHIC INSERT HERE: SEE PRINTED VERSION OF
THE BILL]
SEC. 8. Section 1174.25 of the Code of Civil Procedure is amended
to read:
1174.25. (a) (1) Except as provided in paragraph (2), an occupant
who is served with a prejudgment claim of right to possession in
accordance with Section 415.46 may file a claim as prescribed in
Section 415.46, with the court within 10 days of the date of service
of the prejudgment claim of right to possession as shown on the
return of service, which period shall include Saturday and Sunday but
exclude all other judicial holidays. If the last day for filing the
claim falls on a Saturday or Sunday, the filing period shall be
extended to and including the next court day. Filing the prejudgment
claim of right to possession shall constitute a general appearance
for which a fee shall be collected as provided in Section 70614 of
the Government Code. Section 68511.3 of the Government Code applies
to the prejudgment claim of right to possession.
(2) In an action as described in paragraph (2) of subdivision (e)
of Section 415.46, an occupant may file a prejudgment claim of right
to possession at any time before judgment is entered.
(b) At the time of filing, the claimant shall be added as a
defendant in the action for unlawful detainer and the clerk shall
notify the plaintiff that the claimant has been added as a defendant
in the action by mailing a copy of the claim filed with the court to
the plaintiff with a notation so indicating. The claimant shall
answer or otherwise respond to the summons and complaint within five
days, including Saturdays and Sundays, but excluding all other
judicial holidays, after filing the prejudgment claim of possession.
Thereafter, the name of the claimant shall be added to any pleading,
filing or form filed in the action for unlawful detainer.
SEC. 9. Section 1174.3 of the Code of Civil Procedure is amended
to read:
1174.3. (a) (1) Except as provided in paragraph (2), unless a
prejudgment claim of right to possession has been served upon
occupants in accordance with Section 415.46, any occupant not named
in the judgment for possession who occupied the premises on the date
of the filing of the action may object to enforcement of the judgment
against that occupant by filing a claim of right to possession as
prescribed in this section. A claim of right to possession may be
filed at any time after service or posting of the writ of possession
pursuant to subdivision (a) or (b) of Section 715.020, up to and
including the time at which the levying officer returns to effect the
eviction of those named in the judgment of possession. Filing the
claim of right to possession shall constitute a general appearance
for which a fee shall be collected as provided in Section 70614 of
the Government Code. Section 68511.3 of the Government Code applies
to the claim of right to possession. An occupant or tenant who is
named in the action shall not be required to file a claim of right to
possession to protect that occupant's right to possession of the
premises.
(2) In an action as described in paragraph (2) of subdivision (e)
of Section 415.46, an occupant may file a claim of right to
possession at any time up to and including the time at which the
levying officer returns to effect the eviction of those named in the
judgment of possession, without regard to whether a prejudgment claim
of right to possession has been served upon the occupant.
(b) The court issuing the writ of possession of real property
shall set a date or dates when the court will hold a hearing to
determine the validity of objections to enforcement of the judgment
specified in subdivision (a). An occupant of the real property for
which the writ is issued may make an objection to eviction to the
levying officer at the office of the levying officer or at the
premises at the time of the eviction.
If a claim of right to possession is completed and presented to
the sheriff, marshal, or other levying officer, the officer shall
forthwith (1) stop the eviction of occupants at the premises, and (2)
provide a receipt or copy of the completed claim of right of
possession to the claimant indicating the date and time the completed
form was received, and (3) deliver the original completed claim of
right to possession to the court issuing the writ of possession of
real property.
(c) A claim of right to possession is effected by any of the
following:
(1) Presenting a completed claim form in person with
identification to the sheriff, marshal, or other levying officer as
prescribed in this section, and delivering to the court within two
court days after its presentation, an amount equal to 15 days' rent
together with the appropriate fee or form for proceeding in forma
pauperis. Upon receipt of a claim of right to possession, the
sheriff, marshal, or other levying officer shall indicate thereon the
date and time of its receipt and forthwith deliver the original to
the issuing court and a receipt or copy of the claim to the claimant
and notify the plaintiff of that fact. Immediately upon receipt of an
amount equal to 15 days' rent and the appropriate fee or form for
proceeding in forma pauperis, the court shall file the claim of right
to possession and serve an endorsed copy with the notice of the
hearing date on the plaintiff and the claimant by first-class mail.
The court issuing the writ of possession shall set and hold a hearing
on the claim not less than five nor more than 15 days after the
claim is filed with the court.
(2) Presenting a completed claim form in person with
identification to the sheriff, marshal, or other levying officer as
prescribed in this section, and delivering to the court within two
court days after its presentation, the appropriate fee or form for
proceeding in forma pauperis without delivering the amount equivalent
to 15 days' rent. In this case, the court shall immediately set a
hearing on the claim to be held on the fifth day after the filing is
completed. The court shall notify the claimant of the hearing date at
the time the claimant completes the filing by delivering to the
court the appropriate fee or form for proceeding in forma pauperis,
and shall notify the plaintiff of the hearing date by first-class
mail. Upon receipt of a claim of right to possession, the sheriff,
marshal, or other levying officer shall indicate thereon the date and
time of its receipt and forthwith deliver the original to the
issuing court and a receipt or copy of the claim to the claimant and
notify the plaintiff of that fact.
(d) At the hearing, the court shall determine whether there is a
valid claim of possession by the claimant who filed the claim, and
the court shall consider all evidence produced at the hearing,
including, but not limited to, the information set forth in the
claim. The court may determine the claim to be valid or invalid based
upon the evidence presented at the hearing. The court shall
determine the claim to be invalid if the court determines that the
claimant is an invitee, licensee, guest, or trespasser. If the court
determines the claim is invalid, the court shall order the return to
the claimant of the amount of the 15 days' rent paid by the claimant,
if that amount was paid pursuant to paragraph (1) or (3) of
subdivision (c), less a pro rata amount for each day that enforcement
of the judgment was delayed by reason of making the claim of right
to possession, which pro rata amount shall be paid to the landlord.
If the court determines the claim is valid, the amount equal to 15
days' rent paid by the claimant shall be returned immediately to the
claimant.
(e) If, upon hearing, the court determines that the claim is
valid, then the court shall order further proceedings as follows:
(1) If the unlawful detainer is based upon a curable breach, and
the claimant was not previously served with a proper notice, if any
notice is required, then the required notice may at the plaintiff's
discretion be served on the claimant at the hearing or thereafter. If
the claimant does not cure the breach within the required time, then
a supplemental complaint may be filed and served on the claimant as
defendant if the plaintiff proceeds against the claimant in the same
action. For the purposes of this section only, service of the
required notice, if any notice is required, and of the supplemental
complaint may be made by first-class mail addressed to the claimant
at the subject premises or upon his or her attorney of record and, in
either case, Section 1013 shall otherwise apply. Further proceedings
on the merits of the claimant's continued right to possession after
service of the Summons and Supplemental Complaint as prescribed by
this subdivision shall be conducted pursuant to this chapter.
(2) In all other cases, the court shall deem the unlawful detainer
Summons and Complaint to be amended on their faces to include the
claimant as defendant, service of the Summons and Complaint, as thus
amended, may at the plaintiff's discretion be made at the hearing or
thereafter, and the claimant thus named and served as a defendant in
the action shall answer or otherwise respond within five days
thereafter.
(f) If a claim is made without delivery to the court of the
appropriate filing fee or a form for proceeding in forma pauperis, as
prescribed in this section, the claim shall be immediately deemed
denied and the court shall so order. Upon the denial of the claim,
the court shall immediately deliver an endorsed copy of the order to
the levying officer and shall serve an endorsed copy of the order on
the plaintiff and claimant by first-class mail.
(g) If the claim of right to possession is denied pursuant to
subdivision (f), or if the claimant fails to appear at the hearing
or, upon hearing, if the court determines that there are no valid
claims, or if the claimant does not prevail at a trial on the merits
of the unlawful detainer action, the court shall order the levying
officer to proceed with enforcement of the original writ of
possession of real property as deemed amended to include the
claimant, which shall be effected within a reasonable time not to
exceed five days. Upon receipt of the court's order, the levying
officer shall enforce the writ of possession of real property against
any occupant or occupants.
(h) The claim of right to possession shall be made on the
following form: GRAPHIC INSERT HERE: SEE PRINTED VERSION OF THE
BILL]
SEC. 10. Section 1501.5 of the Code of Civil Procedure is amended
to read:
1501.5. (a) Notwithstanding any provision of law to the contrary,
property received by the state under this chapter shall not
permanently escheat to the state.
(b) The Legislature finds and declares that this section is
declaratory of the existing law and sets forth the intent of the
Legislature regarding the Uniform Disposition of Unclaimed Property
Act (Chapter 1809, Statutes of 1959) and all amendments thereto and
revisions thereof. Any opinions, rulings, orders, judgments, or other
statements to the contrary by any court are erroneous and
inconsistent with the intent of the Legislature.
(c) It is the intent of the Legislature that property
owners be reunited with their property. In making changes to the
unclaimed property program, the Legislature intends to adopt a more
expansive notification program that will provide all of the
following:
(1) Notification by the state to all owners of unclaimed property
prior to escheatment.
(2) A more expansive postescheatment policy that takes action to
identify those owners of unclaimed property.
(3) A waiting period of not less than seven years from delivery of
property to the state prior to disposal of any unclaimed property
deemed to have no commercial value.
SEC. 11. Section 1571 of the Code of Civil Procedure is amended to
read:
1571. (a) The Controller may at reasonable times and upon
reasonable notice examine the records of any person if the Controller
has reason to believe that the person is a holder who has failed to
report property that should have been reported pursuant to this
chapter.
(b) When requested by the Controller, the examination shall be
conducted by any licensing or regulating agency otherwise empowered
by the laws of this state to examine the records of the holder. For
the purpose of determining compliance with this chapter, the
Commissioner of Business Oversight is vested with full authority to
examine the records of any banking organization and any savings
association doing business within this state but not organized under
the laws of or created in this state.
(c) Following a public hearing, the Controller shall adopt
guidelines as to the policies and procedures governing the activity
of third-party auditors who are hired by the Controller.
(d) Following a public hearing, the Controller shall adopt
guidelines, on or before July 1, 1999, establishing forms, policies,
and procedures to enable a person to dispute or appeal the results of
any record examination conducted pursuant to this section.
SEC. 12. Section 2025.510 of the Code of Civil Procedure is
amended to read:
2025.510. (a) Unless the parties agree otherwise, the testimony
at a deposition recorded by stenographic means shall be transcribed.
(b) The party noticing the deposition shall bear the cost of the
transcription, unless the court, on motion and for good cause shown,
orders that the cost be borne or shared by another party.
(c) Notwithstanding subdivision (b) of Section 2025.320, any other
party or the deponent, at the expense of that party or deponent, may
obtain a copy of the transcript.
(d) If the deposition officer receives a request from a party for
an original or a copy of the deposition transcript, or any portion
thereof, and the full or partial transcript will be available to that
party prior to the time the original or copy would be available to
any other party, the deposition officer shall immediately notify all
other parties attending the deposition of the request, and shall,
upon request by any party other than the party making the original
request, make that copy of the full or partial deposition transcript
available to all parties at the same time.
(e) Stenographic notes of depositions shall be retained by the
reporter for a period of not less than eight years from the date of
the deposition, where no transcript is produced, and not less than
one year from the date on which the transcript is produced. The notes
may be either on paper or electronic media, as long as it allows for
satisfactory production of a transcript at any time during the
periods specified.
(f) At the request of any other party to the action, including a
party who did not attend the taking of the deposition testimony, any
party who records or causes the recording of that testimony by means
of audio or video technology shall promptly do both of the following:
(1) Permit that other party to hear the audio recording or to view
the video recording.
(2) Furnish a copy of the audio or video recording to that other
party on receipt of payment of the reasonable cost of making that
copy of the recording.
(g) If the testimony at the deposition is recorded both
stenographically and by audio or video technology, the stenographic
transcript shall be the official record of that testimony for the
purpose of the trial and any subsequent hearing or appeal.
(h) (1) The requesting attorney or party appearing in propria
persona shall timely pay the deposition officer or the entity
providing the services of the deposition officer for the
transcription or copy of the transcription described in subdivision
(b) or (c), and any other deposition product or service that is
requested either orally or in writing.
(2) This subdivision shall apply unless responsibility for the
payment is otherwise provided by law or unless the deposition officer
or entity is notified in writing at the time the services or
products are requested that the party or another identified person
will be responsible for payment.
(3) This subdivision does not prohibit or supersede an agreement
between an attorney and a party allocating responsibility for the
payment of deposition costs to the party.
(4) Nothing in the case of Serrano v. Stefan Merli Plastering Co.,
Inc. (2008) 162 Cal.App.4th 1014 shall be construed to alter the
standards by which a court acquires personal jurisdiction over a
nonparty to an action.
(5) The requesting attorney or party appearing in propria persona,
upon the written request of a deposition officer who has obtained a
final judgment for payment of services provided pursuant to this
subdivision, shall provide to the deposition officer an address that
can be used to effectuate service for the purpose of Section 708.110
in the manner specified in Section 415.10.
(i) For purposes of this section, "deposition product or service"
means any product or service provided in connection with a deposition
that qualifies as shorthand reporting, as described in Section 8017
of the Business and Professions Code, and any product or service
derived from that shorthand reporting.
SEC. 13. Section 912 of the Evidence Code is amended to read:
912. (a) Except as otherwise provided in this section, the right
of any person to claim a privilege provided by Section 954
(lawyer-client privilege), 966 (lawyer referral service-client
privilege), 980 (privilege for confidential marital communications),
994 (physician-patient privilege), 1014 (psychotherapist-patient
privilege), 1033 (privilege of penitent), 1034 (privilege of clergy
member), 1035.8 (sexual assault counselor-victim privilege), 1037.5
(domestic violence counselor-victim privilege), or 1038 (human
trafficking caseworker-victim privilege) is waived with respect to a
communication protected by the privilege if any holder of the
privilege, without coercion, has disclosed a significant part of the
communication or has consented to disclosure made by anyone. Consent
to disclosure is manifested by any statement or other conduct of the
holder of the privilege indicating consent to the disclosure,
including failure to claim the privilege in any proceeding in which
the holder has legal standing and the opportunity to claim the
privilege.
(b) Where two or more persons are joint holders of a privilege
provided by Section 954 (lawyer-client privilege), 966 (lawyer
referral service-client privilege), 994 (physician-patient
privilege), 1014 (psychotherapist-patient privilege), 1035.8 (sexual
assault counselor-victim privilege), 1037.5 (domestic violence
counselor-victim privilege), or 1038 (human trafficking
caseworker-victim privilege), a waiver of the right of a particular
joint holder of the privilege to claim the privilege does not affect
the right of another joint holder to claim the privilege. In the case
of the privilege provided by Section 980 (privilege for confidential
marital communications), a waiver of the right of one spouse to
claim the privilege does not affect the right of the other spouse to
claim the privilege.
(c) A disclosure that is itself privileged is not a waiver of any
privilege.
(d) A disclosure in confidence of a communication that is
protected by a privilege provided by Section 954 (lawyer-client
privilege), 966 (lawyer referral service-client privilege), 994
(physician-patient privilege), 1014 (psychotherapist-patient
privilege), 1035.8 (sexual assault counselor-victim privilege),
1037.5 (domestic violence counselor-victim privilege), or 1038 (human
trafficking caseworker-victim privilege), when disclosure is
reasonably necessary for the accomplishment of the purpose for which
the lawyer, lawyer referral service, physician, psychotherapist,
sexual assault counselor, domestic violence counselor, or human
trafficking caseworker was consulted, is not a waiver of the
privilege.
SEC. 14. Section 917 of the Evidence Code is amended to read:
917. (a) If a privilege is claimed on the ground that the matter
sought to be disclosed is a communication made in confidence in the
course of the lawyer-client, lawyer referral service-client,
physician-patient, psychotherapist-patient, clergy-penitent,
husband-wife, sexual assault counselor-victim, domestic violence
counselor-victim, or human trafficking caseworker-victim
relationship, the communication is presumed to have been made in
confidence and the opponent of the claim of privilege has the burden
of proof to establish that the communication was not confidential.
(b) A communication between persons in a relationship listed in
subdivision (a) does not lose its privileged character for the sole
reason that it is communicated by electronic means or because persons
involved in the delivery, facilitation, or storage of electronic
communication may have access to the content of the communication.
(c) For purposes of this section, "electronic" has the same
meaning provided in Section 1633.2 of the Civil Code.
SEC. 15. Section 1038.2 of the Evidence Code is amended to read:
1038.2. (a) As used in this article, "victim" means any person
who is a "trafficking victim" as defined in Section 236.1 of the
Penal Code.
(b) As used in this article, "human trafficking caseworker" means
any of the following:
(1) A person who is employed by any organization providing the
programs specified in Section 18294 of the Welfare and Institutions
Code, whether financially compensated or not, for the purpose of
rendering advice or assistance to victims of human trafficking, who
has received specialized training in the counseling of human
trafficking victims, and who meets one of the following requirements:
(A) Has a master's degree in counseling or a related field; or has
one year of counseling experience, at least six months of which is
in the counseling of human trafficking victims.
(B) Has at least 40 hours of training as specified in this
paragraph and is supervised by an individual who qualifies as a
counselor under subparagraph (A), or is a psychotherapist, as defined
in Section 1010. The training, supervised by a person qualified
under subparagraph (A), shall include, but need not be limited to,
the following areas: history of human trafficking, civil and criminal
law as it relates to human trafficking, societal attitudes toward
human trafficking, peer counseling techniques, housing, public
assistance, and other financial resources available to meet the
financial needs of human trafficking victims, and referral services
available to human trafficking victims. A portion of this training
must include an explanation of privileged communication.
(2) A person who is employed by any organization providing the
programs specified in Section 13835.2 of the Penal Code, whether
financially compensated or not, for the purpose of counseling and
assisting human trafficking victims, and who meets one of the
following requirements:
(A) Is a psychotherapist as defined in Section 1010, has a master'
s degree in counseling or a related field, or has one year of
counseling experience, at least six months of which is in rape
assault counseling.
(B) Has the minimum training for human trafficking counseling
required by guidelines established by the employing agency pursuant
to subdivision (c) of Section 13835.10 of the Penal Code, and is
supervised by an individual who qualifies as a counselor under
subparagraph (A). The training, supervised by a person qualified
under subparagraph (A), shall include, but not be limited to, law,
victimology, counseling techniques, client and system advocacy, and
referral services. A portion of this training must include an
explanation of privileged communication.
(c) As used in this article, "confidential communication" means
information transmitted between the victim and the caseworker in the
course of their relationship and in confidence by a means which, so
far as the victim is aware, discloses the information to no third
persons other than those who are present to further the interests of
the victim in the consultation or those to whom disclosures are
reasonably necessary for the transmission of the information or an
accomplishment of the purposes for which the human trafficking
counselor is consulted. It includes all information regarding the
facts and circumstances involving all incidences of human
trafficking.
(d) As used in this article, "holder of the privilege" means the
victim when he or she has no guardian or conservator, or a guardian
or conservator of the victim when the victim has a guardian or
conservator.
SEC. 16. Section 504 of the Family Code is amended to read:
504. A confidential marriage license is valid only for a period
of 90 days after its issuance by the county clerk.
SEC. 17. Section 831.7 of the Government Code is amended to read:
831.7. (a) Neither a public entity nor a public employee is
liable to any person who participates in a hazardous recreational
activity, including any person who assists the participant, or to any
spectator who knew or reasonably should have known that the
hazardous recreational activity created a substantial risk of injury
to himself or herself and was voluntarily in the place of risk, or
having the ability to do so failed to leave, for any damage or injury
to property or persons arising out of that hazardous recreational
activity.
(b) As used in this section, "hazardous recreational activity"
means a recreational activity conducted on property of a public
entity that creates a substantial, as distinguished from a minor,
trivial, or insignificant, risk of injury to a participant or a
spectator.
"Hazardous recreational activity" also means:
(1) Water contact activities, except diving, in places where, or
at a time when, lifeguards are not provided and reasonable warning
thereof has been given, or the injured party should reasonably have
known that there was no lifeguard provided at the time.
(2) Any form of diving into water from other than a diving board
or diving platform, or at any place or from any structure where
diving is prohibited and reasonable warning thereof has been given.
(3) Animal riding, including equestrian competition, archery,
bicycle racing or jumping, bicycle motocross, mountain bicycling,
boating, cross-country and downhill skiing, hang gliding, kayaking,
motorized vehicle racing, off-road motorcycling or four-wheel driving
of any kind, orienteering, pistol and rifle shooting, rock climbing,
rocketeering, rodeo, self-contained underwater breathing apparatus
(SCUBA) diving, spelunking, skydiving, sport parachuting,
paragliding, body contact sports, surfing, trampolining, tree
climbing, tree rope swinging, waterskiing, white water rafting, and
windsurfing. For the purposes of this subdivision, "mountain
bicycling" does not include riding a bicycle on paved pathways,
roadways, or sidewalks. For the purpose of this paragraph, "body
contact sports" means sports in which it is reasonably foreseeable
that there will be rough bodily contact with one or more
participants.
(c) (1) Notwithstanding subdivision (a), this section does not
limit liability that would otherwise exist for any of the following:
(A) Failure of the public entity or employee to guard or warn of a
known dangerous condition or of another hazardous recreational
activity known to the public entity or employee that is not
reasonably assumed by the participant as inherently a part of the
hazardous recreational activity out of which the damage or injury
arose.
(B) Damage or injury suffered in any case where permission to
participate in the hazardous recreational activity was granted for a
specific fee. For the purpose of this subparagraph, "specific fee"
does not include a fee or consideration charged for a general purpose
such as a general park admission charge, a vehicle entry or parking
fee, or an administrative or group use application or permit fee, as
distinguished from a specific fee charged for participation in the
specific hazardous recreational activity out of which the damage or
injury arose.
(C) Injury suffered to the extent proximately caused by the
negligent failure of the public entity or public employee to properly
construct or maintain in good repair any structure, recreational
equipment or machinery, or substantial work of improvement utilized
in the hazardous recreational activity out of which the damage or
injury arose.
(D) Damage or injury suffered in any case where the public entity
or employee recklessly or with gross negligence promoted the
participation in or observance of a hazardous recreational activity.
For purposes of this subparagraph, promotional literature or a public
announcement or advertisement that merely describes the available
facilities and services on the property does not in itself constitute
a reckless or grossly negligent promotion.
(E) An act of gross negligence by a public entity or a public
employee that is the proximate cause of the injury.
(2) Nothing in this subdivision creates a duty of care or basis of
liability for personal injury or damage to personal property.
(d) Nothing in this section limits the liability of an independent
concessionaire, or any person or organization other than the public
entity, whether or not the person or organization has a contractual
relationship with the public entity to use the public property, for
injuries or damages suffered in any case as a result of the operation
of a hazardous recreational activity on public property by the
concessionaire, person, or organization.
SEC. 18. Section 1456 of the Government Code is repealed.
SEC. 19. Section 6103 of the Government Code is amended to read:
6103. (a) Neither the state nor any county, city, district, or
other political subdivision, nor any public officer or body, acting
in his or her official capacity on behalf of the state, or any
county, city, district, or other political subdivision, shall pay or
deposit any fee for the filing of any document or paper, for the
performance of any official service, or for the filing of any
stipulation or agreement that may constitute an appearance in any
court by any other party to the stipulation or agreement. This
section does not apply to civil jury fees or civil jury deposits.
This section does not apply to the State Compensation Insurance Fund
or where a public officer is acting with reference to private assets
or obligations that have come under that officer's jurisdiction by
virtue of his or her office, or where it is specifically provided
otherwise. No fee shall be charged for the filing of a confession of
judgment in favor of any of the public agencies named in this
section.
(b) No fee shall be charged any of the public agencies named in
this section to defray the costs of reporting services by court
reporters. Such fees shall be recoverable as costs as provided in
Section 6103.5.
(c) This section shall apply to probate referees, as described in
Part 12 (commencing with Section 400) of Division 2 of the Probate
Code.
SEC. 20. Section 8214.15 of the Government Code is amended to
read:
8214.15. (a) In addition to any commissioning or disciplinary
sanction, a violation of subdivision (f), (i), (l), (m), or (p) of
Section 8214.1, or a willful violation of subdivision (d) of Section
8214.1, is punishable by a civil penalty not to exceed one thousand
five hundred dollars ($1,500).
(b) In addition to any commissioning or disciplinary sanction, a
violation of subdivision (h), (j), or (k) of Section 8214.1, or a
negligent violation of subdivision (d) of Section 8214.1 is
punishable by a civil penalty not to exceed seven hundred fifty
dollars ($750).
(c) The civil penalty may be imposed by the Secretary of State if
a hearing is not requested pursuant to Section 8214.3. If a hearing
is requested, the hearing officer shall make the determination.
(d) Any civil penalties collected pursuant to this section shall
be transferred to the General Fund. It is the intent of the
Legislature that to the extent General Fund moneys are raised by
penalties collected pursuant to this section, that money shall be
made available to the Secretary of State's office to defray its costs
of investigating and pursuing commissioning and monetary remedies
for violations of the notary public law.
SEC. 21. Section 60371 of the Government Code is amended to read:
60371. (a) If a district furnishes residential light, heat,
water, or power through a master meter, or furnishes individually
metered service in a single-family dwelling, multiunit residential
structure, mobilehome park, or farm labor camp and the owner,
manager, or farm labor employer is the customer of record, the
district shall make every good faith effort to inform the actual
users of the services, by means of written notice, when the account
is in arrears, that service will be terminated in 10 days. The
written notice shall further inform the actual users that they have
the right to become customers of the district without being required
to pay the amount due on the delinquent account. The notice shall be
in English and in the languages listed in Section 1632 of the Civil
Code.
(b) The district is not required to make service available to the
actual users unless each actual user agrees to the terms and
conditions of service, and meets the requirements of the district's
rules and tariffs. However, if one or more actual users are willing
and able to assume responsibility for the subsequent charges to the
account to the satisfaction of the district, or if there is a
physical means, legally available to the district, of selectively
terminating service to those actual users who have not met the
requirements of the district's rules and tariffs, the district shall
make service available to the actual users who have met those
requirements.
(c) If prior service for a period of time is a condition for
establishing credit with the district, residence and proof of prompt
payment of rent for that period of time is a satisfactory equivalent.
(d) Any actual user who becomes a customer of the district
pursuant to this section whose periodic payments, such as rental
payments, include charges for residential light, heat, water, or
power, where these charges are not separately stated, may deduct from
the periodic payment each payment period all reasonable charges paid
to the district for those services during the preceding payment
period.
SEC. 22. Section 68085.1 of the Government Code, as amended by
Section 18 of Chapter 41 of the Statutes of 2012, is amended to read:
68085.1. (a) This section applies to all fees and fines that are
collected on or after January 1, 2006, under all of the following:
(1) Sections 177.5, 209, 403.060, 491.150, 631.3, 683.150,
704.750, 708.160, 724.100, 1134, 1161.2, 1218, and 1993.2 of,
subdivision (g) of Section 411.20 and subdivisions (c) and (g) of
Section 411.21 of, subdivision (b) of Section 631 of, and Chapter 5.5
(commencing with Section 116.110) of Title 1 of Part 1 of, the Code
of Civil Procedure.
(2) Section 3112 of the Family Code.
(3) Section 31622 of the Food and Agricultural Code.
(4) Subdivision (d) of Section 6103.5, Sections 68086 and 68086.1,
subdivision (d) of Section 68511.3, Sections 68926.1 and 69953.5,
and Chapter 5.8 (commencing with Section 70600).
(5) Section 103470 of the Health and Safety Code.
(6) Subdivisions (b) and (c) of Section 166 and Section 1214.1 of
the Penal Code.
(7) Sections 1835, 1851.5, 2343, 7660, and 13201 of the Probate
Code.
(8) Sections 14607.6 and 16373 of the Vehicle Code.
(9) Section 71386 of this code, Sections 304, 7851.5, and 9002 of
the Family Code, and Section 1513.1 of the Probate Code, if the
reimbursement is for expenses incurred by the court.
(10) Section 3153 of the Family Code, if the amount is paid to the
court for the cost of counsel appointed by the court to represent a
child.
(b) On and after January 1, 2006, each superior court shall
deposit all fees and fines listed in subdivision (a), as soon as
practicable after collection and on a regular basis, into a bank
account established for this purpose by the Administrative Office of
the Courts. Upon direction of the Administrative Office of the
Courts, the county shall deposit civil assessments under Section
1214.1 of the Penal Code and any other money it collects under the
sections listed in subdivision (a) as soon as practicable after
collection and on a regular basis into the bank account established
for this purpose and specified by the Administrative Office of the
Courts. The deposits shall be made as required by rules adopted by,
and financial policies and procedures authorized by, the Judicial
Council under subdivision (a) of Section 77206. Within 15 days after
the end of the month in which the fees and fines are collected, each
court, and each county that collects any fines or fees under
subdivision (a), shall provide the Administrative Office of the
Courts with a report of the fees by categories as specified by the
Administrative Office of the Courts. The Administrative Office of the
Courts and any court may agree upon a time period greater than 15
days, but in no case more than 30 days after the end of the month in
which the fees and fines are collected. The fees and fines listed in
subdivision (a) shall be distributed as provided in this section.
(c) (1) Within 45 calendar days after the end of the month in
which the fees and fines listed in subdivision (a) are collected, the
Administrative Office of the Courts shall make the following
distributions:
(A) To the small claims advisory services, as described in
subdivision (f) of Section 116.230 of the Code of Civil Procedure.
(B) To dispute resolution programs, as described in subdivision
(b) of Section 68085.3 and subdivision (b) of Section 68085.4.
(C) To the county law library funds, as
described in Sections 116.230 and 116.760 of the Code of Civil
Procedure, subdivision (b) of Section 68085.3, subdivision (b) of
Section 68085.4, and Section 70621 of this code, and Section 14607.6
of the Vehicle Code.
(D) To the courthouse construction funds in the Counties of
Riverside, San Bernardino, and San Francisco, as described in
Sections 70622, 70624, and 70625.
(E) Commencing July 1, 2011, to the Trial Court Trust Fund, as
described in subdivision (e) of Section 70626, to be used by the
Judicial Council to implement and administer the civil representation
pilot program under Section 68651.
(2) If any distribution under this subdivision is delinquent, the
Administrative Office of the Courts shall add a penalty to the
distribution as specified in subdivision (i).
(d) Within 45 calendar days after the end of the month in which
the fees and fines listed in subdivision (a) are collected, the
amounts remaining after the distributions in subdivision (c) shall be
transmitted to the State Treasury for deposit in the Trial Court
Trust Fund and other funds as required by law. This remittance shall
be accompanied by a remittance advice identifying the collection
month and the appropriate account in the Trial Court Trust Fund or
other fund to which it is to be deposited. Upon the receipt of any
delinquent payment required under this subdivision, the Controller
shall calculate a penalty as provided under subdivision (i).
(e) From the money transmitted to the State Treasury under
subdivision (d), the Controller shall make deposits as follows:
(1) Into the State Court Facilities Construction Fund, the Judges'
Retirement Fund, and the Equal Access Fund, as described in
subdivision (c) of Section 68085.3 and subdivision (c) of Section
68085.4.
(2) Into the Health Statistics Special Fund, as described in
subdivision (b) of Section 70670 of this code and Section 103730 of
the Health and Safety Code.
(3) Into the Family Law Trust Fund, as described in Section 70674.
(4) Into the Immediate and Critical Needs Account of the State
Court Facilities Construction Fund, established in Section 70371.5,
as described in Sections 68085.3, 68085.4, and 70657.5, and
subdivision (e) of Section 70617.
(5) The remainder of the money shall be deposited into the Trial
Court Trust Fund.
(f) The amounts collected by each superior court under Section
116.232, subdivision (g) of Section 411.20, and subdivision (g) of
Section 411.21 of the Code of Civil Procedure, Sections 304, 3112,
3153, 7851.5, and 9002 of the Family Code, subdivision (d) of Section
6103.5, subdivision (d) of Section 68511.3 and Sections 68926.1,
69953.5, 70627, 70631, 70640, 70661, 70678, and 71386 of this code,
and Sections 1513.1, 1835, 1851.5, and 2343 of the Probate Code shall
be added to the monthly apportionment for that court under
subdivision (a) of Section 68085.
(g) If any of the fees provided in subdivision (a) are partially
waived by court order or otherwise reduced, and the fee is to be
divided between the Trial Court Trust Fund and any other fund or
account, the amount of the reduction shall be deducted from the
amount to be distributed to each fund in the same proportion as the
amount of each distribution bears to the total amount of the fee. If
the fee is paid by installment payments, the amount distributed to
each fund or account from each installment shall bear the same
proportion to the installment payment as the full distribution to
that fund or account does to the full fee. If a court collects a fee
that was incurred before January 1, 2006, under a provision that was
the predecessor to one of the paragraphs contained in subdivision
(a), the fee may be deposited as if it were collected under the
paragraph of subdivision (a) that corresponds to the predecessor of
that paragraph and distributed in prorated amounts to each fund or
account to which the fee in subdivision (a) must be distributed.
(h) Except as provided in Sections 470.5 and 6322.1 of the
Business and Professions Code, and Sections 70622, 70624, and 70625
of this code, an agency shall not take action to change the amounts
allocated to any of the funds described in subdivision (c), (d), or
(e).
(i) The amount of the penalty on any delinquent payment under
subdivision (c) or (d) shall be calculated by multiplying the amount
of the delinquent payment at a daily rate equivalent to 11/2 percent
per month for the number of days the payment is delinquent. The
penalty shall be paid from the Trial Court Trust Fund. Penalties on
delinquent payments under subdivision (d) shall be calculated only on
the amounts to be distributed to the Trial Court Trust Fund and the
State Court Facilities Construction Fund, and each penalty shall be
distributed proportionately to the funds to which the delinquent
payment was to be distributed.
(j) If a delinquent payment under subdivision (c) or (d) results
from a delinquency by a superior court under subdivision (b), the
court shall reimburse the Trial Court Trust Fund for the amount of
the penalty. Notwithstanding Section 77009, any penalty on a
delinquent payment that a court is required to reimburse pursuant to
this section shall be paid from the court operations fund for that
court. The penalty shall be paid by the court to the Trial Court
Trust Fund no later than 45 days after the end of the month in which
the penalty was calculated. If the penalty is not paid within the
specified time, the Administrative Office of the Courts may reduce
the amount of a subsequent monthly allocation to the court by the
amount of the penalty on the delinquent payment.
(k) If a delinquent payment under subdivision (c) or (d) results
from a delinquency by a county in transmitting fees and fines listed
in subdivision (a) to the bank account established for this purpose,
as described in subdivision (b), the county shall reimburse the Trial
Court Trust Fund for the amount of the penalty. The penalty shall be
paid by the county to the Trial Court Trust Fund no later than 45
days after the end of the month in which the penalty was calculated.
(l) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 23. Section 68631 of the Government Code is amended to read:
68631. An initial fee waiver shall be granted by the court at any
stage of the proceedings at both the appellate and trial court
levels if an applicant meets the standards of eligibility and
application requirements under Sections 68632 and 68633. An initial
fee waiver excuses the applicant from paying fees for the first
pleading or other paper, and other court fees and costs, including
assessments for court investigations under Section 1513, 1826, or
1851 of the Probate Code, as specified in rules adopted by the
Judicial Council, unless the court orders the applicant to make
partial payments under subdivision (c) of Section 68632, subdivision
(d) of Section 68636, or subdivision (e) of Section 68637. Under
circumstances set forth in Section 68636, the court may reconsider
the initial fee waiver and order the fee waiver withdrawn for future
fees and costs or deny the fee waiver retroactively. At the end of
the case, the court may recover fees and costs that were initially
waived under circumstances set forth in Section 68637. Upon
establishment of a conservatorship or guardianship, the court may
collect all or part of any fees waived pursuant to this section and
Section 68632 from the estate of the conservatee or ward, if the
court finds that the estate has the ability to pay the fees, or a
portion thereof, immediately, over a period of time, or under some
other equitable agreement, without using moneys that normally would
pay for the common necessaries of life for the applicant and the
applicant's family.
SEC. 24. Section 68631.5 is added to the Government Code, to read:
68631.5. For purposes of this article, a conservatee, ward, or
person for whom a conservatorship or guardianship is sought, shall be
deemed the "applicant," and the conservator, guardian, or person or
persons seeking to establish the conservatorship or guardianship
shall be deemed the "petitioner." In those cases, the petitioner is
responsible for completing all forms and providing all information
required under this article.
SEC. 25. Section 68632 of the Government Code is amended to read:
68632. Permission to proceed without paying court fees and costs
because of an applicant's financial condition shall be granted
initially to all of the following persons:
(a) An applicant who is receiving public benefits under one or
more of the following programs:
(1) Supplemental Security Income (SSI) and State Supplementary
Payment (SSP) (Article 5 (commencing with Section 12200) of Chapter 3
of Part 3 of Division 9 of the Welfare and Institutions Code).
(2) California Work Opportunity and Responsibility to Kids Act
(CalWORKs) (Chapter 2 (commencing with Section 11200) of Part 3 of
Division 9 of the Welfare and Institutions Code) or a federal Tribal
Temporary Assistance for Needy Families (Tribal TANF) grant program
(Section 10553.25 of the Welfare and Institutions Code).
(3) Supplemental Nutrition Assistance Program (Chapter 51
(commencing with Section 2011) of Title 7 of the United States Code)
or the California Food Assistance Program (Chapter 10.1 (commencing
with Section 18930) of Part 6 of Division 9 of the Welfare and
Institutions Code).
(4) County Relief, General Relief (GR), or General Assistance (GA)
(Part 5 (commencing with Section 17000) of Division 9 of the Welfare
and Institutions Code).
(5) Cash Assistance Program for Aged, Blind, and Disabled Legal
Immigrants (CAPI) (Chapter 10.3 (commencing with Section 18937) of
Part 6 of Division 9 of the Welfare and Institutions Code).
(6) In-Home Supportive Services (IHSS) (Article 7 (commencing with
Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare
and Institutions Code).
(7) Medi-Cal (Chapter 7 (commencing with Section 14000) of Part 3
of Division 9 of the Welfare and Institutions Code).
(b) An applicant whose monthly income is 125 percent or less of
the current poverty guidelines updated periodically in the Federal
Register by the United States Department of Health and Human Services
under the authority of paragraph (2) of Section 9902 of Title 42 of
the United States Code.
(c) An applicant who, as individually determined by the court,
cannot pay court fees without using moneys that normally would pay
for the common necessaries of life for the applicant and the
applicant's family. Only if a trial court finds that an applicant
under this subdivision can pay a portion of court fees, or can pay
court fees over a period of time, or under some other equitable
arrangement, without using moneys that normally would pay for the
common necessaries of life for the applicant and the applicant's
family, the court may grant a partial initial fee waiver using the
notice and hearing procedures set forth in paragraph (5) of
subdivision (e) of Section 68634. "Common necessaries of life," as
used in this article, shall be interpreted consistently with the use
of that term in paragraph (1) of subdivision (c) of Section 706.051
of the Code of Civil Procedure, as that paragraph read prior to
January 1, 2012.
(d) A person who files a petition for appointment of a fiduciary
in a guardianship or conservatorship, or files pleadings as the
appointed fiduciary of a conservatee or ward, when the financial
condition of the conservatee or ward meets the standards for a fee
waiver pursuant to subdivision (a), (b), or (c).
SEC. 26. Section 1569.698 of the Health and Safety Code is amended
to read:
1569.698. (a) The State Fire Marshal has proposed that the State
Building Standards Commission adopt building standards to provide for
locked and secured perimeters in residential care facilities for the
elderly that care for persons with dementia:
(1) It is acknowledged that these building standards will not
become effective until October 1, 1996.
(2) It is the policy of the State Building Standards Commission
that building standards be adopted exclusively into the California
Building Standards Code and not into state statute.
(3) However, in recognition of the immediate need of residential
care facilities for the elderly caring for persons with dementia to
provide a secured environment, it is the intent of the Legislature
that the building standards for locked and secured perimeters
proposed by the State Fire Marshal for adoption in the 1994
California Building Standards Code, as set forth in Section 1569.699,
be effective upon the date this article becomes operative.
(b) (1) Upon the filing of emergency regulations with the
Secretary of State pursuant to subdivision (c), a residential care
facility for the elderly that cares for people with dementia may
utilize secured perimeter fences or locked exit doors, if it meets
the requirements for additional safeguards required by those
regulations.
(2) For the purposes of this article, dementia includes Alzheimer'
s disease and related disorders, diagnosed by a physician, that
increase the tendency to wander and that decrease hazard awareness
and the ability to communicate.
(3) It is the intent of the Legislature in enacting this article
that residential care facilities for the elderly have options for the
security of persons with dementia who are residents of those
facilities that are in addition to existing security exceptions made
for individual residents. It is the further intent of the Legislature
that these additional options shall include the use of waivers of
certain building standards relating to fire safety, to be issued by
the state department with the approval of the State Fire Marshal, to
permit the care of a target group of persons with dementia by means
of secured perimeter fences, or the use of locked exterior doors.
Each waiver request shall include a facility plan of operation that
addresses elements of care to be identified by the department in
regulations and demonstrates the facility's ability to meet the
safety needs of persons with dementia.
(4) The department shall adopt regulations that ensure that staff
for secured perimeter facilities receive appropriate and adequate
training in the care of residents with dementia.
(5) Nothing in this section is intended to prohibit residential
care facilities for the elderly from accepting or retaining persons
with dementia whose needs can be fully met using care options
permitted by existing law and regulations.
(6) It is not the intent of the Legislature to authorize an
increase in the level of care provided in a residential care facility
for the elderly or to establish a supplemental rate structure based
on the services provided in the facility.
(7) All admissions to residential care facilities for the elderly
shall continue to be voluntary on the part of the resident or with
the lawful consent of the resident's legal conservator.
(c) The department shall adopt regulations to implement
subdivision (b) in accordance with those provisions of the
Administrative Procedure Act contained in Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code. The initial adoption of any emergency regulations
following the effective date of the act amending this section during
the 1995-96 Regular Legislative Session shall be deemed to be an
emergency and necessary for the immediate preservation of the public
peace, health and safety, or general welfare. Emergency regulations
adopted pursuant to this subdivision shall remain in effect for no
more than 180 days.
(d) In addition to the security options authorized by subdivision
(b), residential care facilities for the elderly that accept or
retain as residents persons with dementia, and that choose to utilize
the security options of egress-control devices of the time-delay
type in addition to secured perimeter fences or locked exit doors,
shall comply with Section 1569.699, or regulations adopted by the
State Building Standards Commission, whichever is operative.
(e) A residential care facility for the elderly shall not utilize
special egress-control devices of the time-delay type, secured
perimeter fences, or locked exit doors unless the facility meets the
requirements of Section 1569.699 or the Building Standards Commission
adopts building standards to implement this section.
(f) Any person who is not a conservatee and is entering a locked
or secured perimeter facility pursuant to this section, shall sign a
statement of voluntary entry. The facility shall retain the original
statement and shall send a copy of the statement to the department.
SEC. 27. Section 11163.3 of the Penal Code is amended to read:
11163.3. (a) A county may establish an interagency domestic
violence death review team to assist local agencies in identifying
and reviewing domestic violence deaths, including homicides and
suicides, and facilitating communication among the various agencies
involved in domestic violence cases. Interagency domestic violence
death review teams have been used successfully to ensure that
incidents of domestic violence and abuse are recognized and that
agency involvement is reviewed to develop recommendations for
policies and protocols for community prevention and intervention
initiatives to reduce and eradicate the incidence of domestic
violence.
(b) For purposes of this section, "abuse" has the meaning set
forth in Section 6203 of the Family Code and "domestic violence" has
the meaning set forth in Section 6211 of the Family Code.
(c) A county may develop a protocol that may be used as a
guideline to assist coroners and other persons who perform autopsies
on domestic violence victims in the identification of domestic
violence, in the determination of whether domestic violence
contributed to death or whether domestic violence had occurred prior
to death, but was not the actual cause of death, and in the proper
written reporting procedures for domestic violence, including the
designation of the cause and mode of death.
(d) County domestic violence death review teams shall be comprised
of, but not limited to, the following:
(1) Experts in the field of forensic pathology.
(2) Medical personnel with expertise in domestic violence abuse.
(3) Coroners and medical examiners.
(4) Criminologists.
(5) District attorneys and city attorneys.
(6) Domestic violence shelter service staff and battered women's
advocates.
(7) Law enforcement personnel.
(8) Representatives of local agencies that are involved with
domestic violence abuse reporting.
(9) County health department staff who deal with domestic violence
victims' health issues.
(10) Representatives of local child abuse agencies.
(11) Local professional associations of persons described in
paragraphs (1) to (10), inclusive.
(e) An oral or written communication or a document shared within
or produced by a domestic violence death review team related to a
domestic violence death review is confidential and not subject to
disclosure or discoverable by a third party. An oral or written
communication or a document provided by a third party to a domestic
violence death review team, or between a third party and a domestic
violence death review team, is confidential and not subject to
disclosure or discoverable by a third party. Notwithstanding the
foregoing, recommendations of a domestic violence death review team
upon the completion of a review may be disclosed at the discretion of
a majority of the members of the domestic violence death review
team.
(f) Each organization represented on a domestic violence death
review team may share with other members of the team information in
its possession concerning the victim who is the subject of the review
or any person who was in contact with the victim and any other
information deemed by the organization to be pertinent to the review.
Any information shared by an organization with other members of a
team is confidential. This provision shall permit the disclosure to
members of the team of any information deemed confidential,
privileged, or prohibited from disclosure by any other statute.
(g) Written and oral information may be disclosed to a domestic
violence death review team established pursuant to this section. The
team may make a request in writing for the information sought and any
person with information of the kind described in paragraph (2) may
rely on the request in determining whether information may be
disclosed to the team.
(1) An individual or agency that has information governed by this
subdivision shall not be required to disclose information. The intent
of this subdivision is to allow the voluntary disclosure of
information by the individual or agency that has the information.
(2) The following information may be disclosed pursuant to this
subdivision:
(A) Notwithstanding Section 56.10 of the Civil Code, medical
information.
(B) Notwithstanding Section 5328 of the Welfare and Institutions
Code, mental health information.
(C) Notwithstanding Section 15633.5 of the Welfare and
Institutions Code, information from elder abuse reports and
investigations, except the identity of persons who have made reports,
which shall not be disclosed.
(D) Notwithstanding Section 11167.5 of the Penal Code, information
from child abuse reports and investigations, except the identity of
persons who have made reports, which shall not be disclosed.
(E) State summary criminal history information, criminal offender
record information, and local summary criminal history information,
as defined in Sections 11075, 11105, and 13300 of the Penal Code.
(F) Notwithstanding Section 11163.2 of the Penal Code, information
pertaining to reports by health practitioners of persons suffering
from physical injuries inflicted by means of a firearm or of persons
suffering physical injury where the injury is a result of assaultive
or abusive conduct, and information relating to whether a physician
referred the person to local domestic violence services as
recommended by Section 11161 of the Penal Code.
(G) Notwithstanding Section 827 of the Welfare and Institutions
Code, information in any juvenile court proceeding.
(H) Information maintained by the Family Court, including
information relating to the Family Conciliation Court Law pursuant to
Section 1818 of the Family Code, and Mediation of Custody and
Visitation Issues pursuant to Section 3177 of the Family Code.
(I) Information provided to probation officers in the course of
the performance of their duties, including, but not limited to, the
duty to prepare reports pursuant to Section 1203.10 of the Penal
Code, as well as the information on which these reports are based.
(J) Notwithstanding Section 10850 of the Welfare and Institutions
Code, records of in-home supportive services, unless disclosure is
prohibited by federal law.
(3) The disclosure of written and oral information authorized
under this subdivision shall apply notwithstanding Sections 2263,
2918, 4982, and 6068 of the Business and Professions Code, or the
lawyer-client privilege protected by Article 3 (commencing with
Section 950) of Chapter 4 of Division 8 of the Evidence Code, the
physician-patient privilege protected by Article 6 (commencing with
Section 990) of Chapter 4 of Division 8 of the Evidence Code, the
psychotherapist-patient privilege protected by Article 7 (commencing
with Section 1010) of Chapter 4 of Division 8 of the Evidence Code,
the sexual assault counselor-victim privilege protected by Article
8.5 (commencing with Section 1035) of Chapter 4 of Division 8 of the
Evidence Code, the domestic violence counselor-victim privilege
protected by Article 8.7 (commencing with Section 1037) of Chapter 4
of Division 8 of the Evidence Code, and the human trafficking
caseworker-victim privilege protected by Article 8.8 (commencing with
Section 1038) of Chapter 4 of Division 8 of the Evidence Code.
SEC. 27.5. Section 1513.1 of the Probate Code is amended to read:
1513.1. (a) Each court or county shall assess (1) the parent,
parents, or other person charged with the support and maintenance of
the ward or proposed ward, and (2) the guardian, proposed guardian,
or the estate of the ward or proposed ward, for court or county
expenses incurred for any investigation or review conducted by the
court investigator, probation officer, or domestic relations
investigator. Subject to Section 68631 of the Government Code, the
court may order reimbursement to the court or to the county in the
amount of the assessment, unless the court finds that all or any part
of the assessment would impose a hardship on the ward or the ward's
estate. A county may waive any or all of an assessment against the
guardianship on the basis of hardship. There shall be a rebuttable
presumption that the assessment would impose a hardship if the ward
is receiving Medi-Cal benefits.
(b) Any amount chargeable as state-mandated local costs incurred
by a county for the cost of the investigation or review shall be
reduced by any assessments actually collected by the county pursuant
to subdivision (a) during that fiscal year.
SEC. 28. Section 1811 of the Probate Code is amended to read:
1811. (a) Subject to Sections 1813 and 1813.1, the spouse,
domestic partner, or an adult child, parent, brother, or sister of
the proposed conservatee may nominate a conservator in the petition
or at the hearing on the petition.
(b) Subject to Sections 1813 and 1813.1, the spouse, domestic
partner, or a parent of the proposed conservatee may nominate a
conservator in a writing signed either before or after the petition
is filed and that nomination remains effective notwithstanding the
subsequent legal incapacity or death of the spouse, domestic partner,
or parent.
SEC. 29. Section 1812 of the Probate Code is amended to read:
1812. (a) Subject to Sections 1810, 1813, and 1813.1, the
selection of a conservator of the person or estate, or both, is
solely in the discretion of the court and, in making the selection,
the court is to be guided by what appears to be for the best
interests of the proposed conservatee.
(b) Subject to Sections 1810, 1813, and 1813.1, of persons equally
qualified in the opinion of the court to appointment as conservator
of the person or estate or both, preference is to be given in the
following order:
(1) The spouse
or domestic partner of the proposed conservatee or the person
nominated by the spouse or domestic partner pursuant to Section 1811.
(2) An adult child of the proposed conservatee or the person
nominated by the child pursuant to Section 1811.
(3) A parent of the proposed conservatee or the person nominated
by the parent pursuant to Section 1811.
(4) A brother or sister of the proposed conservatee or the person
nominated by the brother or sister pursuant to Section 1811.
(5) Any other person or entity eligible for appointment as a
conservator under this code or, if there is no person or entity
willing to act as a conservator, under the Welfare and Institutions
Code.
(c) The preference for any nominee for appointment under
paragraphs (2), (3), and (4) of subdivision (b) is subordinate to the
preference for any other parent, child, brother, or sister in that
class.
SEC. 30. Section 1813 of the Probate Code is amended to read:
1813. (a) (1) The spouse of a proposed conservatee may not
petition for the appointment of a conservator for a spouse or be
appointed as conservator of the person or estate of the proposed
conservatee unless the petitioner alleges in the petition for
appointment as conservator, and the court finds, that the spouse is
not a party to any action or proceeding against the proposed
conservatee for legal separation of the parties, dissolution of
marriage, or adjudication of nullity of their marriage. However, if
the court finds by clear and convincing evidence that the appointment
of the spouse, who is a party to an action or proceeding against the
proposed conservatee for legal separation of the parties,
dissolution of marriage, or adjudication of nullity of their
marriage, or has obtained a judgment in any of these proceedings, is
in the best interests of the proposed conservatee, the court may
appoint the spouse.
(2) Prior to making this appointment, the court shall appoint
counsel to consult with and advise the conservatee, and to report to
the court his or her findings concerning the suitability of
appointing the spouse as conservator.
(b) The spouse of a conservatee shall disclose to the conservator,
or if the spouse is the conservator, shall disclose to the court,
the filing of any action or proceeding against the conservatee for
legal separation of the parties, dissolution of marriage, or
adjudication of nullity of the marriage, within 10 days of the filing
of the action or proceeding by filing a notice with the court and
serving the notice according to the notice procedures under this
title. The court may, upon receipt of the notice, set the matter for
hearing on an order to show cause why the appointment of the spouse
as conservator, if the spouse is the conservator, should not be
terminated and a new conservator appointed by the court.
SEC. 30.5. Section 1851.5 of the Probate Code is amended to read:
1851.5. Each court shall assess each conservatee in the county
for any investigation or review conducted by a court investigator
with respect to that person. Subject to Section 68631 of the
Government Code, the court may order reimbursement to the court for
the amount of the assessment, unless the court finds that all or any
part of the assessment would impose a hardship on conservatee or the
conservatee's estate. There shall be a rebuttable presumption that
the assessment would impose a hardship if the conservatee is
receiving Medi-Cal benefits.
SEC. 31. Section 2356.5 of the Probate Code is amended to read:
2356.5. (a) The Legislature hereby finds and declares:
(1) That people with dementia, as defined in the last published
edition of the "Diagnostic and Statistical Manual of Mental
Disorders," should have a conservatorship to serve their unique and
special needs.
(2) That, by adding powers to the probate conservatorship for
people with dementia, their unique and special needs can be met. This
will reduce costs to the conservatee and the family of the
conservatee, reduce costly administration by state and county
government, and safeguard the basic dignity and rights of the
conservatee.
(3) That it is the intent of the Legislature to recognize that the
administration of psychotropic medications has been, and can be,
abused by caregivers and, therefore, granting powers to a conservator
to authorize these medications for the treatment of dementia
requires the protections specified in this section.
(b) Notwithstanding any other law, a conservator may authorize the
placement of a conservatee in a secured perimeter residential care
facility for the elderly operated pursuant to Section 1569.698 of the
Health and Safety Code, and which has a care plan that meets the
requirements of Section 87705 of Title 22 of the California Code of
Regulations, upon a court's finding, by clear and convincing
evidence, of all of the following:
(1) The conservatee has dementia, as defined in the last published
edition of the "Diagnostic and Statistical Manual of Mental
Disorders."
(2) The conservatee lacks the capacity to give informed consent to
this placement and has at least one mental function deficit pursuant
to subdivision (a) of Section 811, and this deficit significantly
impairs the person's ability to understand and appreciate the
consequences of his or her actions pursuant to subdivision (b) of
Section 811.
(3) The conservatee needs or would benefit from a restricted and
secure environment, as demonstrated by evidence presented by the
physician or psychologist referred to in paragraph (3) of subdivision
(f).
(4) The court finds that the proposed placement in a locked
facility is the least restrictive placement appropriate to the needs
of the conservatee.
(c) Notwithstanding any other law, a conservator of a person may
authorize the administration of medications appropriate for the care
and treatment of dementia, upon a court's finding, by clear and
convincing evidence, of all of the following:
(1) The conservatee has dementia, as defined in the last published
edition of the "Diagnostic and Statistical Manual of Mental
Disorders."
(2) The conservatee lacks the capacity to give informed consent to
the administration of medications appropriate to the care of
dementia, and has at least one mental function deficit pursuant to
subdivision (a) of Section 811, and this deficit or deficits
significantly impairs the person's ability to understand and
appreciate the consequences of his or her actions pursuant to
subdivision (b) of Section 811.
(3) The conservatee needs or would benefit from appropriate
medication as demonstrated by evidence presented by the physician or
psychologist referred to in paragraph (3) of subdivision (f).
(d) Pursuant to subdivision (b) of Section 2355, in the case of a
person who is an adherent of a religion whose tenets and practices
call for a reliance on prayer alone for healing, the treatment
required by the conservator under subdivision (c) shall be by an
accredited practitioner of that religion in lieu of the
administration of medications.
(e) A conservatee who is to be placed in a facility pursuant to
this section shall not be placed in a mental health rehabilitation
center as described in Section 5675 of the Welfare and Institutions
Code, or in an institution for mental disease as described in Section
5900 of the Welfare and Institutions Code.
(f) A petition for authority to act under this section shall be
governed by Section 2357, except:
(1) The conservatee shall be represented by an attorney pursuant
to Chapter 4 (commencing with Section 1470) of Part 1.
(2) The conservatee shall be produced at the hearing, unless
excused pursuant to Section 1893.
(3) The petition shall be supported by a declaration of a licensed
physician, or a licensed psychologist within the scope of his or her
licensure, regarding each of the findings required to be made under
this section for any power requested, except that the psychologist
has at least two years of experience in diagnosing dementia.
(4) The petition may be filed by any of the persons designated in
Section 1891.
(g) The court investigator shall annually investigate and report
to the court every two years pursuant to Sections 1850 and 1851 if
the conservator is authorized to act under this section. In addition
to the other matters provided in Section 1851, the conservatee shall
be specifically advised by the investigator that the conservatee has
the right to object to the conservator's powers granted under this
section, and the report shall also include whether powers granted
under this section are warranted. If the conservatee objects to the
conservator's powers granted under this section, or the investigator
determines that some change in the powers granted under this section
is warranted, the court shall provide a copy of the report to the
attorney of record for the conservatee. If no attorney has been
appointed for the conservatee, one shall be appointed pursuant to
Chapter 4 (commencing with Section 1470) of Part 1. The attorney
shall, within 30 days after receiving this report, do one of the
following:
(1) File a petition with the court regarding the status of the
conservatee.
(2) File a written report with the court stating that the attorney
has met with the conservatee and determined that the petition would
be inappropriate.
(h) A petition to terminate authority granted under this section
shall be governed by Section 2359.
(i) Nothing in this section shall be construed to affect a
conservatorship of the estate of a person who has dementia.
(j) Nothing in this section shall affect the laws that would
otherwise apply in emergency situations.
(k) Nothing in this section shall affect current law regarding the
power of a probate court to fix the residence of a conservatee or to
authorize medical treatment for any conservatee who has not been
determined to have dementia.
SEC. 32. Section 6401 of the Probate Code is amended to read:
6401. (a) As to community property, the intestate share of the
surviving spouse is the one-half of the community property that
belongs to the decedent under Section 100.
(b) As to quasi-community property, the intestate share of the
surviving spouse is the one-half of the quasi-community property that
belongs to the decedent under Section 101.
(c) As to separate property, the intestate share of the surviving
spouse is as follows:
(1) The entire intestate estate if the decedent did not leave any
surviving issue, parent, brother, sister, or issue of a deceased
brother or sister.
(2) One-half of the intestate estate in the following cases:
(A) Where the decedent leaves only one child or the issue of one
deceased child.
(B) Where the decedent leaves no issue, but leaves a parent or
parents or their issue or the issue of either of them.
(3) One-third of the intestate estate in the following cases:
(A) Where the decedent leaves more than one child.
(B) Where the decedent leaves one child and the issue of one or
more deceased children.
(C) Where the decedent leaves issue of two or more deceased
children.
SEC. 32.5. Section 6402 of the Probate Code is amended to read:
6402. Except as provided in Section 6402.5, the part of the
intestate estate not passing to the surviving spouse, under Section
6401, or the entire intestate estate if there is no surviving spouse,
passes as follows:
(a) To the issue of the decedent, the issue taking equally if they
are all of the same degree of kinship to the decedent, but if of
unequal degree those of more remote degree take in the manner
provided in Section 240.
(b) If there is no surviving issue, to the decedent's parent or
parents equally.
(c) If there is no surviving issue or parent, to the issue of the
parents or either of them, the issue taking equally if they are all
of the same degree of kinship to the decedent, but if of unequal
degree those of more remote degree take in the manner provided in
Section 240.
(d) If there is no surviving issue, parent or issue of a parent,
but the decedent is survived by one or more grandparents or issue of
grandparents, to the grandparent or grandparents equally, or to the
issue of those grandparents if there is no surviving grandparent, the
issue taking equally if they are all of the same degree of kinship
to the decedent, but if of unequal degree those of more remote degree
take in the manner provided in Section 240.
(e) If there is no surviving issue, parent or issue of a parent,
grandparent or issue of a grandparent, but the decedent is survived
by the issue of a predeceased spouse, to that issue, the issue taking
equally if they are all of the same degree of kinship to the
predeceased spouse, but if of unequal degree those of more remote
degree take in the manner provided in Section 240.
(f) If there is no surviving issue, parent or issue of a parent,
grandparent or issue of a grandparent, or issue of a predeceased
spouse, but the decedent is survived by next of kin, to the next of
kin in equal degree, but where there are two or more collateral
kindred in equal degree who claim through different ancestors, those
who claim through the nearest ancestor are preferred to those
claiming through an ancestor more remote.
(g) If there is no surviving next of kin of the decedent and no
surviving issue of a predeceased spouse of the decedent, but the
decedent is survived by the parents of a predeceased spouse or the
issue of those parents, to the parent or parents equally, or to the
issue of those parents if both are deceased, the issue taking equally
if they are all of the same degree of kinship to the predeceased
spouse, but if of unequal degree those of more remote degree take in
the manner provided in Section 240.
SEC. 33. Section 21189.2 of the Public Resources Code is amended
to read:
21189.2. The Judicial Council shall report to the Legislature on
or before January 1, 2017, on the effects of this chapter on the
administration of justice.
SEC. 34. Chapter 4.2 (commencing with Section 10830) of Part 2 of
Division 9 of the Welfare and Institutions Code is repealed.
SEC. 34.5. Sections 5.2 and 5.7 of this bill incorporate
amendments to Section 1936 of the Civil Code proposed by both this
bill and Assembly Bill 1981. They shall only become operative if (1)
both bills are enacted and become effective on or before January 1,
2015, (2) each bill amends Section 1936 of the Civil Code, and (3)
this bill is enacted after Assembly Bill 1981, in which case Sections
5 and 5.5 of this bill shall not become operative.
SEC. 35. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.
