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AB-2873 Personal vehicle sharing: recalled vehicles.(2017-2018)

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Date Published: 05/10/2018 09:00 PM
AB2873:v97#DOCUMENT

Amended  IN  Assembly  May 10, 2018
Amended  IN  Assembly  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2873


Introduced by Assembly Member Low

February 16, 2018


An act to amend Section 1939.01 of, and to add Chapter 1.6 (commencing with Section 1939.50) to Title 5 of Part 4 of Division 3 of, the Civil Sections 11752 and 11754 of the Vehicle Code, relating to personal vehicle sharing.


LEGISLATIVE COUNSEL'S DIGEST


AB 2873, as amended, Low. Personal Vehicle Sharing Act. vehicle sharing: recalled vehicles.
Existing law generally governs the transactions between a rental car company, also referred to as a rental company, and its customers. Existing law prohibits a dealer or rental car company, as defined, with a motor vehicle fleet of 34 or fewer loaner or rental vehicles from loaning, renting, or offering for loan or rent a vehicle subject to a manufacturer’s recall after receiving a notice of the recall, as specified, until the vehicle has been repaired, with exceptions. Existing law requires a personal vehicle sharing program, which facilitates the sharing of private passenger vehicles for noncommercial use, to provide specified insurance coverage for a vehicle and driver while the vehicle is engaged in personal ride sharing. Under existing law, it is an infraction for a person to violate, or fail to comply with, a provision of the Vehicle Code, unless otherwise specified.
This bill would prohibit a personal vehicle sharing program, as defined, from facilitating or arranging for transportation with a vehicle that is subject to a manufacturer’s recall for which a safety recall notice has been issued by the manufacturer and appears in the National Highway Traffic Safety Administration recall database. By creating new prohibitions, the violation of which would be a crime under existing law, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law generally governs the transactions between a rental car company, also referred to as a rental company, and its customers. Existing law defines the term “rental company” for those purposes to mean a person or entity in the business of renting passenger vehicles to the public.

Existing law prohibits a private passenger motor vehicle, as defined, from being classified for insurance purposes as a commercial, for-hire, or permissive use vehicle, or livery solely on the basis of it being used for personal vehicle sharing, as defined, if certain conditions are fulfilled.

This bill would provide that the term “rental company” as used in the provisions governing transactions between a rental car company and its customers does not include a personal vehicle sharing program or a private passenger motor vehicle that is engaged in personal vehicle sharing, as those terms are defined in the provision governing insurance described above.

This bill would enact the Personal Vehicle Sharing Act, and would state that it is the intent of the Legislature in enacting that act to establish baseline consumer protection and transparency with regard to personal vehicle sharing transactions.

The bill would include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 11752 of the Vehicle Code is amended to read:

11752.
 As used in this article, the following definitions apply:
(a) The term “dealer” has the same meaning as in Section 285.
(b) (1) A “manufacturer’s recall” is a recall conducted pursuant to Sections 30118 to 30120, inclusive, of Title 49 of the United States Code.
(2) A manufacturer’s recall does not include a service campaign or emission recall when the vehicle manufacturer or the National Highway Traffic Safety Administration has not issued a recall notice to owners of affected vehicles, pursuant to Section 30118 of Title 49 of the United States Code.
(c) A “personal vehicle sharing program” has the same meaning as defined in Section 11580.24 of the Insurance Code.

(c)

(d) A “recall database” is a database from which an individual may obtain vehicle identification number (VIN) specific manufacturer’s recall information relevant to a specific vehicle.
(1) For a vehicle manufacturer that is not subject to the regulations adopted pursuant to Section 31301 of the federal Moving Ahead for Progress in the 21st Century Act (Public Law 112-141), a recall database is one of the following:
(A) The recall data on a vehicle manufacturer’s Internet Web site for a specific vehicle’s line-make.
(B) The recall data in a vehicle manufacturer’s internal system that provides information to its franchisees on vehicles subject to recall.
(C) The recall data in subparagraph (A) or (B) that is contained in a commercially available vehicle history system.
(2) For a vehicle manufacturer that is subject to the regulations adopted pursuant to Section 31301 of the federal Moving Ahead for Progress in the 21st Century Act (Public Law 112-141), a recall database shall include, at a minimum, the recall information required pursuant to Section 573.15 of Title 49 of the Code of Federal Regulations.

(d)

(e) A “recall database report” is a report, specific to a vehicle that is identified by its VIN, containing information obtained from a recall database.

(e)

(f) A “rental car company” is a person or entity in the business of renting passenger vehicles to the public in California.

SEC. 2.

 Section 11754 of the Vehicle Code is amended to read:

11754.
 (a) No later than 48 hours after receiving a notice of a manufacturer’s recall, or sooner if practicable, a dealer or rental car company with a motor vehicle fleet of 34 or fewer loaner or rental vehicles shall not loan, rent, or offer for loan or rent a vehicle subject to that recall until the recall repair has been made.
(b) If a recall notification indicates that the remedy for the recall is not immediately available and specifies actions to temporarily repair the vehicle in a manner to eliminate the safety risk that prompted the recall, the dealer or rental car company, after having the repairs completed, may loan or rent the vehicle. Once the remedy for the vehicle becomes available to the dealer or rental car company, the dealer or rental car company shall not loan or rent the vehicle until the vehicle has been repaired.
(c) A personal vehicle sharing program shall not facilitate or otherwise arrange for transportation with a vehicle that is subject to a manufacturer’s recall, as defined in subdivision (b) of Section 11752, and a safety recall notice has been issued by the manufacturer and appears in the recall database provided by the National Highway Traffic Safety Administration pursuant to Section 573.15 of Title 49 of the Code of Federal Regulations.
(d) The changes to this section made by the act adding subdivision (c) shall not apply in any manner to pending litigation.

SEC. 3.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
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)(1)“Rental company” means a person or entity in the business of renting passenger vehicles to the public.

(2)“Rental company” does not include a personal vehicle sharing program, or a private passenger motor vehicle that is engaged in personal vehicle sharing, unless that person or entity otherwise meets the definition of “rental company” for some reason other than participating in or facilitating personal vehicle sharing or a personal vehicle sharing program. For purposes of this paragraph, the terms “personal vehicle sharing” and “personal vehicle sharing program” have the same meaning as defined in Section 11580.24 of the Insurance Code. This paragraph is declaratory of existing law.

(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 he or she 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)“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.

(n)“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.

(o)“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).

(p)“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.

(q)“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.Chapter 1.6 (commencing with Section 1939.50) is added to Title 5 of Part 4 of Division 3 of the Civil Code, to read:
1.6.Personal Vehicle Sharing Act
1939.50.

This chapter shall be known, and may be cited as, the Personal Vehicle Sharing Act.

1939.51.

For purposes of this chapter:

(a)“Personal vehicle sharing” has the same meaning as defined in Section 11580.24 of the Insurance Code.

(b)“Personal vehicle sharing program” has the same meaning as defined in Section 11580.24 of the Insurance Code.

1939.52.

It is the intent of the Legislature in enacting this chapter to establish baseline consumer protection and transparency with regard to personal vehicle sharing transactions. For that reason, the Legislature finds and declares that ensuring those baseline standards is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this chapter applies to all cities, including charter cities.