BILL NUMBER: AB 675 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Alejo
FEBRUARY 25, 2015
An act to amend Section 1936.01 of the Civil Code, relating to
rental vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 675, as introduced, Alejo. Rental vehicles: separately stated
charges.
Existing law requires a rental company, in connection with the
rental of a passenger vehicle, to only advertise a rental rate that
includes the entire amount, except taxes, a customer facility charge,
and a mileage charge, that a renter must pay to rent a vehicle.
Existing law specifies that when a rental company provides a quote or
imposes a charge, it may separately state the rental rate, taxes,
customer facility charge, airport concession, fee tourism commission
assessment, as defined, and mileage charge. Existing law prohibits a
rental company from charging any additional fees, other than
specified charges, that must be paid by the renter as a condition of
hiring or leasing the vehicle. Existing law requires a rental
company, if customer facility charges, airport concession fees, or
tourism commission assessments are imposed, to take specified
actions. Existing law made these provisions, and other related
provisions, operative only if a specified condition occurred.
This bill would make a technical, nonsubstantive change by
deleting that conditional operative provision, because that specified
condition occurred.
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 1936.01 of the Civil Code is amended to read:
1936.01. (a) For the purpose of this section, the following
definitions shall apply:
(1) "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.
(2) "Quote" means an estimated cost of rental provided by a rental
company or a third party to a potential customer by telephone,
in-person, computer-transmission, or other means, that is based on
information provided by the potential customer and used to generate
an estimated cost of rental, including, but not limited to, any of
the following: potential dates of rental, locations, or classes of
car.
(3) "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.
(b) Notwithstanding subdivision (m) of Section 1936, the following
provisions shall apply:
(1) A rental company shall only advertise 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.
(2) When providing a quote, or imposing charges for a rental, the
rental company may separately state the rental rate, taxes, customer
facility charge, if any, airport concession fee, if any, tourism
commission assessment, 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 may not charge in
addition to the rental rate, taxes, a customer facility charge, if
any, airport concession fee, if any, tourism commission assessment,
if any, and a mileage charge, if any, any fee that must be paid by
the renter as a condition of hiring or leasing the vehicle, such as,
but not limited to, required fuel or airport surcharges other than
customer facility charges and airport concession fees.
(3) If customer facility charges, airport concession fees, or
tourism commission assessments are imposed, the rental company shall
do each of the following:
(A) At the time the quote is given, provide the person receiving
the quote with a good faith estimate of the rental rate, taxes,
customer facility charge, if any, airport concession fee, if any, and
tourism commission assessment, if any, as well as the total charges
for the entire rental. The total charges, if provided on an Internet
Web site, 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 links
through no more than two Internet Web site pages, including 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.
(B) 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, taxes, customer facility charge, if any, airport concession
fee, if any, and tourism commission assessment, if any, for the
entire rental, exclusive of charges that cannot be determined at the
time the rental commences. Charges imposed pursuant to this
subparagraph 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.
(C) Provide each person, other than those persons within the
rental company, offering quotes to actual or prospective customers
access to information about customer facility charges, airport
concession fees, and tourism commission assessments 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 subparagraph (A).
(4) In addition to the rental rate, taxes, customer facility
charges, if any, airport concession fees, if any, tourism commission
assessments, 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.
(5) A rental company may not charge any fee for authorized drivers
in addition to the rental charge for an individual renter.
(6) If a rental company states a rental rate in print
advertisement or in a telephonic, in-person, or computer-transmitted
quote, the rental company shall clearly disclose in that
advertisement or quote the terms of any mileage conditions relating
to the rental rate disclosed in the advertisement or quote,
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.
(7) (A) When a rental rate is stated in an advertisement, in
connection with a car rental at an airport where a customer facility
charge is imposed, the rental company shall clearly disclose the
existence and amount of the customer facility charge. For the
purposes of this subparagraph, advertisements include radio,
television, other electronic media, and print advertisements. If the
rental rate advertisement is intended to include transactions at more
than one airport imposing a customer facility charge, a range of
charges may be stated in the advertisement. However, all rental 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 any person or entity other than a rental car company,
including a passenger carrier or a seller of travel services,
advertises a rental rate for a car rental at an airport where a
customer facility charge is imposed, that person or entity shall,
provided they are provided with information about the existence and
amount of the charge, to the extent not specifically prohibited by
federal law, clearly disclose the existence and amount of the charge.
If a rental car company provides the person or entity with rental
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.
(8) 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 may not charge the renter
any 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 may not charge
the renter any amount for the rental for the period after the renter
notifies the rental company to pick up the vehicle.
(9) Except as otherwise permitted pursuant to the customer
facility charge, a rental company may not separately charge, in
addition to the rental rate, a fee for transporting the renter to the
location where the rented vehicle will be delivered to the renter.
(c) 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.
(d) Any waiver of any of the provisions of this section shall be
void and unenforceable as contrary to public policy.
(e) This section shall become operative only if the Secretary of
Business, Transportation and Housing provides notice to the
Legislature and the Secretary of State and posts notice on its
Internet Web site that the conditions described in Section 13995.92
of the Government Code have been satisfied.