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AB-2246 Rental passenger vehicles: personal vehicle sharing programs.(2017-2018)

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Date Published: 03/16/2018 04:00 AM
AB2246:v98#DOCUMENT

Amended  IN  Assembly  March 15, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2246


Introduced by Assembly Member Friedman

February 13, 2018


An act to amend Section 50474.21 of the Government Code, relating to local government. add Section 1939.02 to the Civil Code, relating to vehicles.


LEGISLATIVE COUNSEL'S DIGEST


AB 2246, as amended, Friedman. Customer facility charges. Rental passenger vehicles: personal vehicle sharing programs.
Existing law defines various terms including “rental company” and “rental car company” for purposes of provisions regulating rental passenger vehicle business and usage. Existing law provides various rules and regulations that govern those businesses, including requiring specified disclosures by the 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. In addition, the Consumer Automotive Recall Safety Act in the Vehicle Code prohibits a rental car company with a 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, as specified. A violation of the Vehicle Code is a crime. Existing law also defines “personal vehicle sharing program” as a legal entity qualified to do business in California that is engaged in the business of sharing private passenger vehicles for noncommercial use by individuals within the state.
This bill would provide that specified provisions of law that refer to the terms “rental company,” “rental car companies,” or similar specified terms, are deemed to include personal vehicle sharing programs, as defined. By including personal vehicle sharing programs within those terms, the bill would make personal vehicle ride sharing programs subject to the rules and regulations applicable to rental car businesses, including provisions of the Consumer Automotive Recall Safety Act. By expanding the application of the Consumer Automotive Recall Safety Act, the bill would expand the scope of a crime and thereby 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 authorizes airports to require rental car companies to collect a customer facility charge under specified circumstances for purposes that include financing, designing, and constructing airport vehicle rental facilities and common-use transportation systems. Existing law requires that the amount collected not exceed the reasonable cost of financing, designing, and constructing these transportation systems, as determined by an independent auditor paid for by the airport.

This bill would correct a cross reference by making a technical change to these provisions.

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

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


SECTION 1.

 Section 1939.02 is added to the Civil Code, to read:

1939.02.
 Notwithstanding any other law, the following terms shall include, but not be limited to, a personal vehicle sharing program, as defined in Section 11580.24 of the Insurance Code:
(a) “Rental company” as defined in Section 1939.01.
(b) “Rental car company” as defined in Section 11752 of the Vehicle Code.
(c) “Rental company” or “rental car company” as used in Article 6 (commencing with Section 50470) of Chapter 2 of Part 1 of Division 1 of Title 5 of the Government Code.
(d) “Business within the passenger rental category” as used in Section 13995.65.5 of the Government Code.

SEC. 2.

 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 50474.21 of the Government Code, as amended by Section 1 of Chapter 311 of the Statutes of 2017, is amended to read:
50474.21.

(a)For purposes of this article, “customer facility charge” means any fee, including an alternative fee, required by an airport to be collected by a rental company from a renter for any of the following purposes:

(1)To finance, design, and construct consolidated airport vehicle rental facilities.

(2)To finance, design, construct, and operate common-use transportation systems that move passengers between airport terminals and those consolidated vehicle rental facilities, and acquire vehicles for use in that system.

(3)To finance, design, and construct terminal modifications solely to accommodate and provide customer access to common-use transportation systems. The fees designated as a customer facility charge shall not otherwise be used to pay for terminal expansion, gate expansion, runway expansion, changes in hours of operation, or changes in the number of flights arriving or departing from the airport.

(b)The aggregate amount to be collected shall not exceed the reasonable costs, as determined by an audit by an independent auditor paid for by the airport, to finance, design, and construct those facilities. The auditor shall independently examine and substantiate the necessity for, and the amount of, the customer facility charge, including whether the airport’s actual or projected costs are supported and justified, any steps the airport may take to limit costs, potential alternatives for meeting the airport’s revenue needs other than the collection of the fee, and whether and to what extent rental companies or other businesses or individuals using the facility or common-use transportation system may pay for the costs associated with these facilities and systems apart from the fee from rental customers, or whether the airport did not comply with any provision of this section. Copies of the audit shall be provided to the Assembly and Senate Committees on Judiciary, the Assembly Committee on Transportation, and the Senate Committee on Transportation and Housing and shall be posted on the airport’s Internet Web site. In the case of a customer facility charge for a common-use transportation system, the audit shall also consider the reasonable costs of providing the transit system or busing network pursuant to paragraph (2) of subdivision (a). Any audit required by this subdivision may be included as a part of an audit of an airport’s finances.

(c)This section shall remain in effect only until January 1, 2023, and as of that date is repealed.

SEC. 2.Section 50474.21 of the Government Code, as added by Section 2 of Chapter 311 of the Statutes of 2017, is amended to read:
50474.21.

(a)For purposes of this article, “customer facility charge” means any fee, including an alternative fee, required by an airport to be collected by a rental company from a renter for any of the following purposes:

(1)To finance, design, and construct consolidated airport vehicle rental facilities.

(2)To finance, design, construct, and operate common-use transportation systems that move passengers between airport terminals and those consolidated vehicle rental facilities, and acquire vehicles for use in that system.

(3)To finance, design, and construct terminal modifications solely to accommodate and provide customer access to common-use transportation systems. The fees designated as a customer facility charge shall not otherwise be used to pay for terminal expansion, gate expansion, runway expansion, changes in hours of operation, or changes in the number of flights arriving or departing from the airport.

(b)The aggregate amount to be collected shall not exceed the reasonable costs, as determined by an audit by an independent auditor paid for by the airport, to finance, design, and construct those facilities. The auditor shall independently examine and substantiate the necessity for, and the amount of, the customer facility charge, including whether the airport’s actual or projected costs are supported and justified, any steps the airport may take to limit costs, potential alternatives for meeting the airport’s revenue needs other than the collection of the fee, and whether and to what extent rental companies or other businesses or individuals using the facility or common-use transportation system may pay for the costs associated with these facilities and systems apart from the fee from rental customers, or whether the airport did not comply with any provision of this section. Copies of the audit shall be provided to the Assembly and Senate Committees on Judiciary, the Assembly Committee on Transportation, and the Senate Committee on Transportation and Housing and shall be posted on the airport’s Internet Web site. In the case of a customer facility charge for a common-use transportation system, the audit shall also consider the reasonable costs of providing the transit system or busing network pursuant to paragraph (2) of subdivision (a). Any audit required by this subdivision may be included as a part of an audit of an airport’s finances.

(c)Except as provided in subdivision (d), the authorization given pursuant to this article for an airport to impose a customer facility charge shall become inoperative when the bonds used for financing are paid.

(d)If a bond or other form of indebtedness is not used for financing, or a bond or other form of indebtedness used for financing has been paid, the Oakland International Airport may require the collection of a customer facility charge for a period of up to 10 years from the imposition of the charge for the purposes allowed by, and subject to the conditions imposed by, this article.

(e)This section shall become operative on January 1, 2023.