BILL NUMBER: AB 753 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Monning
FEBRUARY 17, 2011
An act to amend Section 1936 of the Civil Code, relating to
vehicle rental contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 753, as introduced, Monning. Vehicle rental contracts.
Existing law authorizes a vehicle rental company and a renter of a
passenger vehicle to agree that the renter will be responsible for,
among other things, loss due to theft of the rented vehicle up to its
fair market value. Under those provisions, a renter is presumed to
not have liability due to theft if certain conditions are met,
including, among others, that an authorized driver files an official
report of the theft with police or other law enforcement agency
within 24 hours of learning of the theft.
This bill instead would require the authorized driver to file that
report within 48 hours of learning of the theft.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1936 of the Civil Code 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 independent audit paid for by
the airport, to finance, design, and construct those facilities.
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. In the case
of a transportation system, the audit also shall consider the
reasonable costs of providing the transit system or busing network.
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 48
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) The airport shall complete the independent audit required by
subparagraph (B) of paragraph (4) of subdivision (a) prior to initial
collection of the customer facility charge, prior to any increase
pursuant to paragraph (2), and every three years after initial
collection and any increase until such time as the fee authorization
becomes inoperative pursuant to subparagraph (C) of paragraph (4) of
subdivision (a). The Controller shall review those audits and
independently examine and substantiate the necessity for and the
amount of the customer facility charge. The Controller's costs shall
be reimbursed by the individual airport being audited.
Notwithstanding Section 10231.5 of the Government Code, the
Controller shall report to the Legislature on its conclusions,
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.
(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.
(v) The Controller reviews and substantiates the need for and
amount of the fee pursuant to clause (ii) of subparagraph (I) of
paragraph (1).
(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.