AB 1981 Summary

• Increases maximum damage waiver rates for rental vehicles: $11 per day for economy and compact cars, $17 per day for intermediate, standard, and full-size cars that are current or previous model year (reduces to $11 for older vehicles).

• Removes manufacturer's suggested retail price as a criterion for damage waiver rates, instead basing rates on vehicle body-size categories established by the Association of Car Rental Industry Systems Standards for North America as of January 1, 2014.

• Requires rental companies to clearly disclose damage waiver charges in advertisements and rental contracts, and prohibits unfair or coercive practices in marketing damage waivers.

• Restricts rental companies' use of electronic surveillance technology to locate stolen or abandoned vehicles, and prohibits tracking renters to impose fines or surcharges based on vehicle usage.

• Expands regulations on airport customer facility charges, requiring independent audits and detailed reporting to legislative committees, with maximum fees of $10 per contract or $6-9 per day depending on the year.