Bill Text

Bill Information


Bill PDF |Add To My Favorites |Track Bill | print page

AB-1222 Rental passenger vehicles: additional mandatory charges.(2023-2024)

SHARE THIS: share this bill in Facebook share this bill in Twitter
Date Published: 03/16/2023 09:00 PM
AB1222:v98#DOCUMENT

Amended  IN  Assembly  March 16, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1222

Introduced by Assembly Member McKinnor

February 16, 2023

An act to amend Section 1939.19 of the Civil Code, relating to rental passenger vehicles.


LEGISLATIVE COUNSEL'S DIGEST


AB 1222, as amended, McKinnor. Rental passenger vehicles. vehicles: additional mandatory charges.
Existing law regulates rental passenger vehicle transactions, including by limiting what the renter will be responsible for and the total amount of the renter’s liability resulting from damage to the rented vehicle, as specified. including, among other provisions, required disclosures by a rental company, mandatory and prohibited contract provisions for a vehicle rental agreement, and authorization for a rental company to collect specific types of fees and charges from its customers. Existing law authorizes a rental company, when providing a quote, or imposing charges for a rental, to separately state the rental rate, additional mandatory charges, as defined, and a mileage charge, if applicable, that a renter must pay to hire or lease the vehicle for the period of time to which the rental rate applies.
This bill would express the intent of the Legislature to enact legislation addressing the growing concern of unnecessary fees related to car rentals and providing notice to consumers about, and protection to consumers from, additional car rental fees. instead require a rental company to only advertise or quote a rental rate that includes the entire amount that the renter is required to pay to hire or lease the vehicle for the period of time to which the rental rate applies, including, but not limited to, additional mandatory charges and any gas or mileage charge, if applicable.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 1939.19 of the Civil Code is amended to read:

1939.19.
 (a) When providing a quote, or imposing charges for a rental, the rental company may separately state the rental rate, additional mandatory charges, 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 shall only advertise or quote a rental rate that includes the entire amount that the renter is required to pay to hire or lease the vehicle for the period of time to which the rental rate applies, including, but not limited to, additional mandatory charges and any gas or mileage charge, if applicable. A rental company shall not charge in addition to the rental rate, additional mandatory charges, or a mileage charge, as those may be applicable, any other fee that is required to be paid by the renter as a condition of hiring or leasing the vehicle.
(b) If additional mandatory charges are imposed, the rental company shall do each of the following:
(1) At the time the quote is given, provide the person receiving the quote with a good faith estimate of the rental rate and all additional mandatory charges, as well as the total charges for the entire rental. The total charges, if provided on an internet website page, 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 a link directly from 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.
(2) 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 and additional mandatory charges, for the entire rental, exclusive of charges that cannot be determined at the time the rental commences. Charges imposed pursuant to this paragraph 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.
(3) Provide each person, other than those persons within the rental company, offering quotes to actual or prospective customers access to information about additional mandatory charges, 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 paragraph (1).
(c) In addition to the rental rate, taxes, additional mandatory charges, 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.
(d) A rental company may charge a fee for an authorized driver, in addition to the rental charge for an individual renter, unless the authorized driver is either of the following:
(1) The renter’s spouse, as described in paragraph (2) of subdivision (e) of Section 1939.01, the renter’s child or person for whom the renter is a legal guardian, the renter’s sibling, or the renter’s parent or grandparent.
(2) The renter’s employer or coworker, as described in paragraph (3) of subdivision (e) of Section 1939.01.
(e) In the event that a rental company learns that an additional driver who was not previously authorized in the rental agreement has driven the rental car, the rental company may charge up to twice the authorized driver fee.
(f) If a rental company states a rental rate in print advertisement or in a quotation, the rental company shall disclose clearly in that advertisement or quotation the terms of 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.
(g) All rate advertisements shall include a disclaimer, which shall be prominently displayed, providing that additional mandatory charges may be imposed, including, but not limited to, airport fees, tourism fees, vehicle license recovery fees, or other government imposed taxes or fees, and indicating that this information, including an estimate of the total rental cost, is displayed on the rental company’s internet website. All rate advertisements shall also include a statement that additional charges may apply if an optional good or service, such as a damage waiver, is purchased.
(h) If any person or entity other than a rental company, including a passenger carrier or a seller of travel services, advertises a rental rate for a vehicle rental that includes additional mandatory charges, that person or entity shall clearly disclose the existence and amount of the charges. If a rental company provides the person or entity with rental rate and additional mandatory charges information, the rental car company is not responsible for the failure of that person or entity to comply with this subdivision.
(i) 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 an 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 an amount for the rental for the period after the renter notifies the rental company to pick up the vehicle.
(j) Except as otherwise permitted pursuant to the customer facility charge, a rental company shall not separately charge, in addition to the rental rate, a fee for transporting the renter to a location where the rented vehicle will be delivered to the renter.

SECTION 1.

It is the intent of the Legislature to enact legislation addressing the growing concern of unnecessary fees related to car rentals and providing notice to consumers about, and protection to consumers from, additional car rental fees.