1936.
(a) For the purpose of this section, the following definitions shall apply:(1) “Rental company” means any person or entity in the business of renting passenger vehicles to the public.
(2) “Renter” means any person in any 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 they are engaged in business activity with the renter, are licensed drivers, and satisfy the rental company’s minimum age requirement, and (D) any person expressly listed by the rental company on the renter’s contract as an authorized driver.
(4) “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.
(5) “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.”
(6) “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.
(7) “Passenger vehicle” means a passenger vehicle as defined in Section 465 of the Vehicle Code.
(8) “Taxes” mean, and are limited to, the following:
(A) Sales and use taxes imposed directly upon individual rental transactions.
(B) Vehicle license fees as defined in Sections 10751 and 10752 of the Revenue and Taxation Code. The vehicle license fee shall be separately charged, clearly stated on the rental agreement, and prorated at1/365th of the annual vehicle license fee actually paid on the particular vehicle being rented for each full or partial 24-hour rental day that the vehicle is rented. The total of all vehicle license fees charged to renters shall not exceed the annual vehicle license fee actually paid for the particular vehicle rented.
(C) Local taxes, however designated, on individual rental transactions imposed directly on the renter or specifically permitted to be charged to the renter.
(D) Nothing in this section shall be construed to authorize the imposition of a new tax or the increase of an existing tax.
(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.
(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 and loss of use of the rented vehicle as provided in paragraph (5) up to a total of five hundred dollars ($500) resulting from vandalism unrelated to the theft of the rented vehicle.
(5) Loss of use of the rented vehicle if the renter is liable for damage or loss.
(6) Actual charges for towing, storage, and impound fees paid by the rental company if the renter is liable for damage or loss.
(7) An administrative charge which shall include the cost of appraisal and all other costs and expenses incident to the damage, loss, loss of use, 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) Except as provided in paragraph (5), the loss of use of the rented vehicle which shall not exceed the product of (A) the rental rate stated in the renter’s contract, excluding all optional charges, and (B) the total of the estimated time for replacement and the estimated time for repair. For the purpose of converting the estimated time for repair into the same unit of time in which the rental rate is expressed, a day shall be deemed to consist of eight hours.
(5) Under any of the circumstances described in subdivision (f), the rental company’s loss of use of the rented vehicle shall not exceed the product of (A) the rental rate stated in the renter’s contract, excluding all optional charges, and (B) the period from the date of the accident to the date the vehicle is ready to be returned to rental service. This paragraph applies only if the rental company uses its best efforts to effect repairs and return the vehicle to rental service as soon as practicable.
(6) Actual charges for towing, storage, and impound fees paid by the rental company.
(7) The administrative charge described in paragraph (7) 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). No administrative charge shall 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 and another authorized driver an amount exceeding the renter’s liability under subdivision (c).
(3) A rental company shall not recover from the renter or other authorized driver for any item described in subdivision (b) to the extent the rental company obtains recovery from any other person.
(4) 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 any other person.
(e) (1) Except as provided in subdivisions (f) and (g), every damage waiver shall provide or, if not expressly stated in writing, shall be deemed to provide that the renter has no liability for any damage, loss, loss of use, or any cost or expense incident thereto.
(2) Except as provided in subdivisions (f) and (g), every limitation, exception, or exclusion to any 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 of the United States.
(3) Any authorized driver (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) No damage waiver shall apply to any loss due to theft of the vehicle.
(h) (1) A rental company which 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: (A) the nature of the renter’s liability, e.g., liability for all collision damage regardless of cause, (B) the extent of the renter’s liability, e.g., 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 deductible, if any, for which the renter is obligated, (E) the renter may purchase an optional damage waiver to cover all liability, except liability for loss due to theft pursuant to subdivision (g), subject to whatever exceptions the rental company expressly lists that are permitted under subdivision (f), and (F) the charge for the damage waiver.
(2) 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, loss of use, 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 to find out about your coverage and the amount of deductible, if any, for which you are 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 damage waiver, except with regard to loss due to theft. But, damage waiver will not protect you if (list exceptions).
The cost of optional damage waiver is $_____ for every (day or week).
(i) Notwithstanding any other provision of law, a rental company may offer optional damage waiver to its customers provided that the company indicates, on that part of the contract where the renter indicates his or her acceptance of declination of damage waiver, that the purchase of damage waiver is optional. A company shall not charge for damage waiver more than nine dollars ($9) per full or partial 24-hour rental day.
(j) A rental company which disseminates in this state an advertisement containing a rental rate shall clearly disclose in any print advertisement the existence and amount of damage waiver printed in a size no smaller than the print size of the rental rate; the advertisement shall also state that damage waiver is optional. Any print advertisement shall also advise a consumer to contact his or her insurance agent or credit card company, or both, to determine whether collision damage waiver duplicates the consumer’s own insurance or credit card benefits.
(k) (1) A rental company shall not require the purchase of a damage waiver, optional insurance, or any other optional good or service.
(2) A rental company shall not engage in any unfair, deceptive, or coercive conduct to induce a renter to purchase damage waiver, optional insurance, or any other 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 damage waiver, optional insurance, or any other optional good or service.
(3) A rental company shall not pay an employee any compensation, fee, or commission dependent on the sale of damage waiver. Nothing in this section shall prohibit the payment of a “performance-related incentive.” For the purposes of this paragraph, a “performance-related incentive” is money or other tangible or intangible items of value paid or given to an employee of the rental company that is not based solely on the offering or selling of the damage waiver.
(l) (1) A rental company shall not seek to recover any portion of any claim arising out of damage to, or loss of, the rented vehicle by processing a credit card charge or causing any 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 rental company shall only advertise, quote, and charge a rental rate that includes the entire amount except taxes, as defined in paragraph (8) of subdivision (a), and a mileage charge, if any, which 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, and mileage charge, if any, any fee which 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, nor any fee for transporting the renter to the location where the rented vehicle will be delivered to the renter.
(2) (A) In addition to the rental rate, taxes, and mileage charge, 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:
(i) Optional insurance and accessories requested by the renter.
(ii) 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.
(iii) Service 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. If the rental company imposes a refueling service charge, the rental company shall, at the time of the transaction, notify the renter of the conditions subject to a refueling service charge and what the maximum charge per gallon of fuel will be at the time that the vehicle is returned.
(B) 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 any fee for authorized drivers in addition to the rental charge for an individual renter.
(4) When a rental company states a rental rate in a television, radio, or print advertisement or in a telephonic, in-person, or computer-transmitted quotation, the rental company shall clearly disclose in that advertisement or quotation all of the following: (i) that taxes shall be added; (ii) the average dollar amount or range of dollar amounts of vehicle license fees for each full or partial 24-hour rental day; (iii) the charge for optional damage waiver; and (iv) the terms of any 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) 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 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 shall not charge the renter any amount for the rental for the period after the renter notifies the rental company to pick up the vehicle.
(n) 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.
(o) 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.
(p) Any waiver of any of the provisions of this section shall be void and unenforceable as contrary to public policy.
(q) This section shall remain in effect only until January 1, 2002, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2002, deletes or extends that date.