Bill Text: CA AB893 | 2023-2024 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Personal vehicle sharing programs.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2023-10-08 - Chaptered by Secretary of State - Chapter 547, Statutes of 2023. [AB893 Detail]
Download: California-2023-AB893-Amended.html
the personal vehicle sharing program first requests certification from the vehicle owner as to whether the vehicle owner paid all sales and use taxes due on the purchase price of the vehicle or has elected
to collect sales and use taxes measured by the gross charges for the rental of the vehicle. the certification described in subdivision (a) or (b), as applicable, is fulfilled:
Bill Title: Personal vehicle sharing programs.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2023-10-08 - Chaptered by Secretary of State - Chapter 547, Statutes of 2023. [AB893 Detail]
Download: California-2023-AB893-Amended.html
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Amended
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Assembly
May 22, 2023 |
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Amended
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Assembly
April 12, 2023 |
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Amended
IN
Assembly
March 23, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 893
| Introduced by Assembly Member Papan |
February 14, 2023 |
An act to amend Sections 1939.01 and 1939.19 of, and to add Sections 1939.38 and 1939.39 to, the Civil Code, and to amend Section 13995.65.5 of, and to add Section 50474.20 to, the Government Code, relating to rental passenger vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 893, as amended, Papan.
Personal vehicle sharing programs.
(1) Existing law generally governs the transactions between a rental car company, also referred to as a rental company, and its customers, including, among other provisions, required disclosures by a rental company, mandatory contract provisions for a vehicle rental agreement, restrictions on a rental company’s use of electronic surveillance technology, and authorization for a rental company to collect specific types of fees and charges from its customers. Existing law defines “rental company,” among other terms, for purposes of those provisions.
This bill would define the term “personal vehicle sharing program” for purposes of these provisions as a person or entity that, for monetary compensation, facilitates the rental of passenger vehicles to the public, including via a peer-to-peer internet website, application, or
other platform, that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration, as specified.
This bill would, on and after July 1, 2024, prohibit a personal vehicle sharing program from allowing a vehicle to be placed on a digital network or software application of the personal vehicle sharing program for the purpose of making the vehicle available for rental through the personal vehicle sharing program unless certain conditions are satisfied, including that the personal vehicle sharing program requests certification from the vehicle owner as to whether the vehicle owner paid all sales and use taxes due on the purchase price of the vehicle, or elected to collect sales and use taxes measured by the gross charges for the rental of the vehicle. specified
certifications regarding tax-related matters pertaining to the motor vehicle.
(2) Existing law prohibits a rental company from charging in addition to the rental rate certain charges and fees, including, among others, a mileage charge, as specified. Existing law requires a rental company, among other things, if additional mandatory charges are imposed, to provide a good faith estimate of the total charges for the entire rental, as prescribed. Existing law limits the items and service for which it may impose an additional charge.
This bill would make these provisions applicable to a personal vehicle sharing program.
(3) Existing law authorizes an airport operated by a city and county to require a rental car
company to collect a customer facility charge from its customers on behalf of the airport for the use of airport-mandated common use facilities, as specified.
This bill would make those provisions applicable to a personal vehicle sharing program, as defined. The bill would require that before facilitating sharing or renting of vehicles, any program, person, or entity that is a personal vehicle sharing program obtain a permit or other written authorization from the airport operator that sets forth the same or reasonably similar standards, regulations, procedures, fees, and access requirements, applicable to a rental company.
(4) Existing law, the California Tourism Marketing Act, authorizes the California Travel and Tourism Commission to require businesses to pay an assessment for the purpose of increasing the number of persons traveling to and within California, implementing a tourism marketing plan,
and administration and collecting assessments, as specified. Existing law provides that for purposes of calculating the assessment for a business within the passenger car rental category, the assessment shall be collected only on each rental transaction that commences at either an airport or at a hotel or other overnight lodging with respect to which a city, city and county, or county is authorized to levy a tax as specified.
This bill would specify that these provisions apply to a personal vehicle sharing program in the same manner as a business in the passenger car rental category for each sharing or rental transaction that begins at an airport.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1939.01 of the Civil Code is amended to read:1939.01.
For the purpose of this chapter, the following definitions shall apply:(a) “Rental company” means a person or entity in the business of renting passenger vehicles to the public.
(b) “Renter” means any person in a manner obligated under a contract for the lease or hire of a passenger vehicle from a rental company for a period of less than 30 days.
(c) “Additional mandatory charges” means any separately stated charges that the rental company requires the renter to pay to hire or lease the vehicle for the period of time to which the rental rate applies, which are imposed by a governmental
entity and specifically relate to the operation of a rental vehicle business, including, but not limited to, a customer facility charge, airport concession fee, tourism commission assessment, vehicle license recovery fee, or other government-imposed taxes or fees.
(d) “Airport concession fee” means a charge collected by a rental company from a renter that is the renter’s proportionate share of the amount paid by the rental company to the owner or operator of an airport for the right or privilege of conducting a vehicle rental business on the airport’s premises.
(e) “Authorized driver” means all of the following:
(1) The renter.
(2) The renter’s spouse, if
that person is a licensed driver and satisfies the rental company’s minimum age requirement.
(3) The renter’s employer or coworker, if the employer or coworker is engaged in business activity with the renter, is a licensed driver, and satisfies the rental company’s minimum age requirement.
(4) A person expressly listed by the rental company on that renter’s contract as an authorized driver.
(f) “Customer facility charge” means any fee, including an alternative fee, required by an airport to be collected by a rental company from a renter pursuant to Section 50474.21 of the Government Code.
(g) “Damage waiver” means a rental company’s agreement not to
hold a renter liable for all or any portion of any damage or loss related to the rented vehicle, any loss of use of the rented vehicle, or any storage, impound, towing, or administrative charges.
(h) “Electronic surveillance technology” means a technological method or system used to observe, monitor, or collect information, including telematics, Global Positioning System (GPS), wireless technology, or location-based technologies. “Electronic surveillance technology” does not include event data recorders (EDR), sensing and diagnostic modules (SDM), or other systems that are used either:
(1) For the purpose of identifying, diagnosing, or monitoring functions related to the potential need to repair, service, or perform maintenance on the rental vehicle.
(2) As part of the vehicle’s airbag sensing and diagnostic system in order to capture safety systems-related data for retrieval after a crash has occurred or in the event that the collision sensors are activated to prepare the decisionmaking computer to make the determination to deploy or not to deploy the airbag.
(i) “Estimated time for replacement” means the number of hours of labor, or fraction thereof, needed to replace damaged vehicle parts as set forth in collision damage estimating guides generally used in the vehicle repair business and commonly known as “crash books.”
(j) “Estimated time for repair” means a good faith estimate of the reasonable number of hours of labor, or fraction thereof, needed to repair
damaged vehicle parts.
(k) “Membership program” means a service offered by a rental company that permits customers to bypass the rental counter and go directly to the vehicle previously reserved or select an alternate vehicle. A membership program shall meet all of the following requirements:
(1) The renter initiates enrollment by completing an application on which the renter can specify a preference for type of vehicle and acceptance or declination of optional services.
(2) The rental company fully discloses, prior to the enrollee’s first rental as a participant in the program, all terms and conditions of the rental agreement as well as all required disclosures.
(3) The renter may terminate enrollment at any time.
(4) The rental company fully explains to the renter that designated preferences, as well as acceptance or declination of optional services, may be changed by the renter at any time for the next and future rentals.
(5) An employee is available at the lot where the renter takes possession of the vehicle, to receive any change in the rental agreement from the renter.
(l) “Passenger vehicle” or “vehicle” means a “passenger vehicle” as defined in Section 465 of the Vehicle Code.
(m) “Personal vehicle sharing program” means a person or entity that for monetary compensation facilitates sharing or renting passenger
vehicles to the public, including via a peer-to-peer internet website, application, or other platform that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration, and includes a personal vehicle sharing program as defined in Section 11580.24 of the Insurance Code.
(n) “Quote” means an estimated cost of rental provided by a rental company or a third party to a potential customer that is based on information provided by the potential customer and used to generate an estimated cost of rental, including, but not limited to, potential dates of rental, locations, or classes of vehicle.
(o) “Tourism commission assessment” means the charge collected by a rental company from a renter that has been established by the California Travel and
Tourism Commission pursuant to Section 13995.65 of the Government Code.
(p) “Vehicle license fee” means the tax imposed pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code).
(q) “Vehicle registration fee” means any fee imposed pursuant to any provision of Chapter 6 (commencing with Section 9101) of Division 3 of the Vehicle Code or any other law that imposes a fee upon the registration of vehicles in this state.
(r) “Vehicle license recovery fee” means a charge that seeks to recover the amount of any vehicle license fee and vehicle registration fee paid by a rental company for the particular class of vehicle being rented. If imposed, the vehicle
license recovery fee shall be separately stated as a single charge in the quote and rental contract.
SEC. 2.
Section 1939.19 of the Civil Code is amended to read:1939.19.
(a) When providing a quote, or imposing charges for a rental, the rental company may separately state the rental rate, additional mandatory charges, 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, additional mandatory charges, or a mileage charge, as those may be applicable, any other fee that is required to be paid by the renter as a condition of hiring or leasing the vehicle.(b) If additional mandatory charges are imposed, the rental company shall do each of the following:
(1) At the time the quote is given, provide the person receiving the quote with a good faith estimate of the rental rate and all additional mandatory charges, as well as the total charges for the entire rental. The total charges, if provided on an internet website page, shall be displayed in a typeface at least as large as any rental rate disclosed on that page and shall be provided on a page that the person receiving the quote may reach by following a link directly from the page on which the rental rate is first provided. The good faith estimate may exclude mileage charges and charges for optional items that cannot be determined prior to completing the reservation based upon the information provided by the person.
(2) At the time and place the rental commences, clearly and conspicuously disclose in the rental contract, or that portion
of the contract that is provided to the renter, the total of the rental rate and additional mandatory charges, for the entire rental, exclusive of charges that cannot be determined at the time the rental commences. Charges imposed pursuant to this paragraph shall be no more than the amount of the quote provided in a confirmed reservation, unless the person changes the terms of the rental contract subsequent to making the reservation.
(3) Provide each person, other than those persons within the rental company, offering quotes to actual or prospective customers access to information about additional mandatory charges, as well as access to information about when those charges apply. Any person providing quotes to actual or prospective customers for the hire or lease of a vehicle from a rental company shall provide the quotes in the
manner described in paragraph (1).
(c) In addition to the rental rate, taxes, additional mandatory 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.
(d) This section shall apply to any person or entity described in subdivision (m) of Section 1939.01 in the same manner as a business in the passenger rental car category for each sharing or rental transaction.
(e) A rental company may charge a fee for an authorized driver, in addition to the rental charge for an individual renter, unless the authorized driver is either of the following:
(1) The renter’s spouse, as described in paragraph (2) of subdivision (e) of Section 1939.01, the renter’s child or person for whom the renter is a legal
guardian, the renter’s sibling, or the renter’s parent or grandparent.
(2) The renter’s employer or coworker, as described in paragraph (3) of subdivision (e) of Section 1939.01.
(f) In the event that a rental company learns that an additional driver who was not previously authorized in the rental agreement has driven the rental car, the rental company may charge up to twice the authorized driver fee.
(g) If a rental company states a rental rate in print advertisement or in a 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.
(h) All rate advertisements shall include a disclaimer, which shall be prominently displayed, providing that additional mandatory charges may be imposed, including, but not limited to, airport fees, tourism fees, vehicle license recovery fees, or other government imposed taxes or fees, and indicating that this information, including an estimate of the total rental cost, is displayed on the rental company’s internet website. All rate advertisements shall also include a statement that additional charges may apply if an optional good or service, such as a damage waiver, is purchased.
(i) If any person or entity other than a
rental company, including a passenger carrier or a seller of travel services, advertises a rental rate for a vehicle rental that includes additional mandatory charges, that person or entity shall clearly disclose the existence and amount of the charges. If a rental company provides the person or entity with rental rate and additional mandatory charges information, the rental car company is not responsible for the failure of that person or entity to comply with this subdivision.
(j) 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.
(k) Except as otherwise permitted pursuant to the customer facility charge, a rental company shall not separately charge, in addition to the rental rate, a fee for transporting the renter to a location where the rented vehicle will be delivered to the renter.
SEC. 3.
Section 1939.38 is added to the Civil Code, immediately following Section 1939.37, to read:1939.38.
(a) Notwithstanding any other law, a commercial airport facility may regulate access to an airport and require any person or entity described in subdivision (m) of Section 1939.01 to collect a customer facility charge pursuant to Section 50474.21 of the Government Code.(b) (1) Before facilitating the sharing or renting of vehicles, any program, person, or entity described in subdivision (m) of Section 1939.01 shall obtain a permit or other written authorization from the airport operator that sets forth the same or reasonably similar standards, regulations, procedures, fees, and access requirements, applicable to a rental company.
(2) For purposes of paragraph (1), “facilitating the sharing or renting of vehicles” includes listing, publishing, or advertising vehicles or motor vehicles parked on airport property or at airport facilities.
(c) This section shall not affect the authority of any political subdivision or the state to regulate access to an airport it owns or operates and to set access fees or requirements. do any of the following:
(1) Regulate access to an airport it owns or operates.
(2) Enter into written agreements.
(3) Set access fees or permit requirements.
(4) Regulate existing airport access permits granted by an airport to personal vehicle sharing programs.
SEC. 4.
Section 1939.39 is added to the Civil Code, to read:1939.39.
On and after July 1, 2024, a personal vehicle sharing program shall not allow a vehicle to be placed on a digital network or software application of the personal vehicle sharing program for the purpose of making the vehicle available for rental through the personal vehicle sharing program unless(a) If the request is to list a motor vehicle that was purchased in California, and that motor vehicle would first be made available for sharing on or after July 1, 2024, certification that one of the following occurred:
(1) All sales and use taxes were paid on the purchase price of the motor vehicle.
(2) The purchaser elected to have sales and use taxes collected on receipts from renting the motor vehicle in lieu of paying applicable taxes on the purchase price of the motor vehicle.
(3) The purchase of the motor vehicle was not subject to taxation due to an exemption available under law.
(b) If the request is to list a motor vehicle that was not purchased in California, and that motor vehicle would first be made available for sharing on or after July 1, 2024, certification that one of the following occurred:
(1) Applicable taxes were paid on the purchase price of the vehicle.
(2) Applicable taxes were not paid on the purchase price of the vehicle.
SEC. 5.
Section 13995.65.5 of the Government Code is amended to read:13995.65.5.
(a) Notwithstanding Section 13995.65 or any other provision of this chapter, for purposes of calculating the assessment for a business within the passenger car rental category, the assessment shall be collected only on each rental transaction that commences at either an airport or at a hotel or other overnight lodging with respect to which a city, city and county, or county is authorized to levy a tax as described in Section 7280 of the Revenue and Taxation Code. A transaction commencing at an airport or hotel or other overnight lodging subject to a transient occupancy tax as described in Section 7280 of the Revenue and Taxation Code, including those that commence at a location that might otherwise by regulation be exempt from assessment, shall be subject to the assessment. The assessment shall always be expressed as a fixed percentage of the amount of the rental transaction.(b) This section shall apply to any person or entity described in subdivision (m) of Section 1939.01 of the Civil Code in the same manner as a business in the passenger car rental category for each sharing or rental transaction that begins at an airport.
SEC. 6.
Section 50474.20 is added to the Government Code, to read:50474.20.
This article shall apply to both of the following in the same manner as it applies to a rental car company:(a) A personal vehicle sharing program as defined in subdivision (m) of Section 1939.01 of the Civil Code.
(b) Any person or entity that for monetary compensation facilitates sharing or renting passenger vehicles to the public, including via a peer-to-peer internet website, application, or other platform that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration.
