Bill Text: IA HF721 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to customer facility charges as part of a vehicle rental transaction at airports, and including effective date and applicability provisions.(Formerly HSB 241.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-03-26 - Subcommittee recommends passage. Vote Total: 2-0. [HF721 Detail]
Download: Iowa-2023-HF721-Introduced.html
House
File
721
-
Introduced
HOUSE
FILE
721
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
241)
A
BILL
FOR
An
Act
relating
to
customer
facility
charges
as
part
of
a
1
vehicle
rental
transaction
at
airports,
and
including
2
effective
date
and
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
2522HV
(1)
90
th/ns
H.F.
721
Section
1.
NEW
SECTION
.
330B.1
Definitions.
1
As
used
in
this
chapter:
2
1.
“Agreement
day”
means
each
twenty-four-hour
period,
3
or
fraction
thereof,
within
a
rental
period,
each
of
which
4
constitutes
a
separate
day
for
which
a
customer
facility
charge
5
may
be
levied.
6
2.
“Airport
commission”
means
an
airport
commission
created
7
under
chapter
330.
8
3.
“Aviation
authority”
means
an
aviation
authority
created
9
under
chapter
330A.
10
4.
“Consolidated
vehicle
rental
facility”
means
a
11
consolidated
facility
used
by
a
rental
vehicle
business
on
12
airport
property.
13
5.
“Customer”
means
a
person
who
is
authorized
to
use
a
14
rental
vehicle
under
the
terms
of
a
rental
agreement
as
the
15
result
of
a
vehicle
rental
transaction
involving
a
rental
16
vehicle
business.
17
6.
“Customer
facility
charge”
means
any
fee
or
charge
18
required
by
an
aviation
authority,
airport
commission,
19
municipality,
or
other
entity
that
operates
an
airport
to
be
20
collected
by
the
owner
or
operator
of
a
rental
vehicle
business
21
from
a
customer
in
a
vehicle
rental
transaction
at
an
airport.
22
7.
“Municipality”
means
any
county
or
city
of
this
state,
23
whose
ordinances
permit
the
entry
of
and
submission
by
such
24
political
subdivision
to
an
aviation
authority
created
and
25
operating
under
chapter
330A.
26
8.
“Rental
agreement”
means
a
written
contract
containing
27
the
terms
and
conditions
for
the
use
of
a
rental
vehicle
by
a
28
customer
for
not
more
than
sixty
days.
29
9.
“Rental
vehicle”
means
a
passenger-type
vehicle
that,
30
upon
execution
of
a
rental
agreement,
is
made
available
to
a
31
customer
for
the
customer’s
use
for
not
more
than
sixty
days.
32
10.
“Rental
vehicle
business”
means
a
person
who
authorizes
33
a
customer
to
use
a
rental
vehicle
and
who
utilizes
airport
34
property
in
any
aspect
during
a
vehicle
rental
transaction.
35
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721
11.
“Vehicle
rental
transaction”
means
an
act
by
a
customer
1
and
rental
vehicle
business
that
results
in
the
customer’s
use
2
of
a
rental
vehicle
for
not
more
than
sixty
days.
3
Sec.
2.
NEW
SECTION
.
330B.2
Customer
facility
charges.
4
1.
An
aviation
authority,
airport
commission,
municipality,
5
or
other
entity
that
operates
an
airport
may
require
the
6
owner
or
operator
of
a
rental
vehicle
business
to
collect
a
7
customer
facility
charge
from
a
customer
as
part
of
a
vehicle
8
rental
transaction
at
an
airport,
which
shall
be
used
for
the
9
purposes
of
financing,
designing,
constructing,
operating,
10
maintaining,
acquiring,
or
otherwise
improving
consolidated
11
vehicle
rental
facilities
and
common
use
transportation
systems
12
used
to
transport
customers
between
consolidated
vehicle
rental
13
facilities
and
other
airport
facilities.
14
2.
If
a
customer
facility
charge
is
included
as
part
of
a
15
vehicle
rental
transaction,
the
rental
vehicle
business
shall
16
include
the
customer
facility
charge
as
a
separate
line
item
17
in
the
rental
agreement
and
the
rental
agreement
must
refer
to
18
the
charge
as
“customer
facility
charge”.
The
moneys
collected
19
as
a
customer
facility
charge
shall
be
held
in
trust
for
the
20
benefit
of
the
airport
for
the
purposes
authorized
in
this
21
chapter
and
remitted
at
the
direction
of
the
airport,
but
not
22
more
often
than
once
per
month,
for
use
only
as
authorized
in
23
this
chapter.
24
3.
A
customer
facility
charge
shall
be
uniformly
calculated
25
based
either
on
a
per-agreement
or
per-agreement-day
basis
at
26
the
discretion
of
the
aviation
authority,
airport
commission,
27
municipality,
or
other
entity
that
operates
the
airport.
An
28
aviation
authority,
airport
commission,
municipality,
or
other
29
entity
that
operates
an
airport
shall
provide
notice
of
any
30
changes
to
the
customer
facility
charge,
including
but
not
31
limited
to
the
amount
and
calculation
method,
to
every
rental
32
vehicle
business
not
less
than
thirty
days
prior
to
the
change
33
taking
effect.
34
4.
A
customer
facility
charge
imposed
by
an
aviation
35
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721
authority,
airport
commission,
municipality,
or
other
entity
1
that
operates
an
airport
must
be
used
only
for
financing,
2
designing,
constructing,
operating,
maintaining,
acquiring,
or
3
otherwise
improving
the
consolidated
vehicle
rental
facilities
4
and
common-use
transportation
systems
used
to
transport
5
customers
between
consolidated
vehicle
rental
facilities
and
6
other
airport
facilities,
including
necessary
equipment,
7
vehicles,
and
facilities
for
such
systems.
Customer
facility
8
charge
moneys
shall
not
be
used
for
airport
terminal
expansion,
9
gate
expansion,
runway
expansion,
or
for
any
purpose
not
10
authorized
under
this
chapter.
11
5.
Other
than
the
fee
to
rent
a
vehicle,
a
rental
vehicle
12
business
shall
not
collect
an
additional
fee
or
impose
an
13
additional
charge
as
part
of
a
vehicle
rental
transaction
at
14
an
airport,
other
than
a
customer
facility
charge
as
provided
15
under
this
chapter.
16
6.
The
aggregate
amount
of
moneys
collected
as
customer
17
facility
charges
shall
not
exceed
the
reasonable
costs,
18
as
determined
by
an
annual
audit
by
an
independent
auditor
19
paid
for
by
the
aviation
authority,
airport
commission,
20
municipality,
or
other
entity
that
operates
an
airport,
for
the
21
purposes
authorized
under
this
chapter.
22
Sec.
3.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
23
importance,
takes
effect
upon
enactment.
24
Sec.
4.
APPLICABILITY.
This
Act
applies
to
moneys
collected
25
as
a
customer
facility
charge
on
or
after
the
effective
date
of
26
this
Act,
and
to
moneys
collected
as
a
customer
facility
charge
27
prior
to
the
effective
date
of
this
Act
that
are
unexpended,
28
unencumbered,
and
unobligated
on
the
effective
date
of
this
29
Act.
30
EXPLANATION
31
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
32
the
explanation’s
substance
by
the
members
of
the
general
assembly.
33
This
bill
creates
a
new
Code
chapter
330B
authorizing
and
34
regulating
customer
facility
charges
imposed
as
part
of
a
35
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721
vehicle
rental
transaction
at
an
airport.
Under
the
bill,
an
1
aviation
authority,
airport
commission,
municipality,
or
other
2
entity
that
operates
an
airport
is
authorized
to
require
a
3
rental
vehicle
business
to
impose
a
customer
facility
charge
4
(charge),
as
defined
by
the
bill.
The
charge
is
paid
by
a
5
customer
who
rents
a
vehicle
at
the
airport.
6
The
bill
requires
a
charge
to
be
listed
as
a
separate
7
line
item
on
all
vehicle
rental
agreements
transacted
at
the
8
airport.
The
charge
must
be
uniformly
calculated
based
either
9
on
a
per-agreement
or
per-agreement-day
basis
at
the
discretion
10
of
the
aviation
authority,
airport
commission,
municipality,
11
or
other
entity
that
operates
the
airport.
An
entity
that
12
operates
an
airport
is
required
to
provide
notice
of
any
13
changes
to
the
charge,
including
but
not
limited
to
the
amount
14
and
calculation
method,
to
every
rental
vehicle
business
not
15
less
than
30
days
prior
to
the
change
taking
effect.
16
The
charge
must
be
used
only
for
financing,
designing,
17
constructing,
operating,
maintaining,
acquiring,
or
otherwise
18
improving
the
consolidated
vehicle
rental
facilities
and
19
common-use
transportation
systems
used
to
transport
customers
20
between
consolidated
vehicle
rental
facilities
and
other
21
airport
facilities,
including
necessary
equipment,
vehicles,
22
and
facilities
for
such
systems.
The
bill
prohibits
customer
23
facility
charge
moneys
from
being
used
for
airport
terminal
24
expansion,
gate
expansion,
runway
expansion,
or
for
any
other
25
purpose
not
authorized
under
the
bill.
26
The
bill
takes
effect
upon
enactment
and
applies
to
charges
27
collected
on
or
after
that
date,
and
to
charges
collected
prior
28
to
that
date
that
are
unexpended,
unencumbered,
and
unobligated
29
on
that
date.
30
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4