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SB 272: "An Act relating to charges for rented motor vehicles, including cost recovery fees, and making a violation of the rented motor vehicle charge provisions an unfair trade practice."

00 SENATE BILL NO. 272 01 "An Act relating to charges for rented motor vehicles, including cost recovery fees, and 02 making a violation of the rented motor vehicle charge provisions an unfair trade 03 practice." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 LEGISLATIVE FINDING AND INTENT. The legislature finds that there are rental 08 car agreements that include fees in addition to the rental rate and taxes. It is the intent of the 09 legislature that car rental agreements separately identify and charge for these additional fees 10 and the taxes in the rental car agreements. 11 * Sec. 2. AS 45.45 is amended by adding new sections to read: 12 Article 7A. Car Rental Fees. 13 Sec. 45.45.450. Identification of cost recovery fees. If a rental car business 14 charges a cost recovery fee, the rental car business shall separately identify and charge

01 for each cost recovery fee in writing in the rental car agreement. In this section, "cost 02 recovery fee" means a vehicle licensing cost recovery fee, an airport-related cost, a 03 government tax, or a government surcharge. 04 Sec. 45.45.460. Vehicle licensing cost recovery fee. (a) A rental car business 05 may not charge a renter a vehicle licensing cost recovery fee unless the vehicle 06 licensing cost recovery fee represents a good faith estimate by the rental car business 07 of the average daily cost to the rental car business of recovering its actual total annual 08 licensing costs in the state during a calendar year. 09 (b) If the total amount of the vehicle licensing cost recovery fees collected by 10 a rental car business during a calendar year exceeds the actual amount of the car rental 11 business's licensing costs during that calendar year, the car rental company shall 12 (1) retain the excess amount; and 13 (2) adjust the good faith estimate required by (a) of this section for the 14 next calendar year so that the good faith estimate reflects the excess amount. 15 (c) In addition to the adjustment required by (b) of this section, a car rental 16 business may adjust its vehicle licensing cost recovery fee during the calendar year 17 when the excess vehicle licensing cost recovery fees are collected, if the vehicle 18 licensing cost recovery fee otherwise complies with this section. 19 Sec. 45.45.470. Definitions. In AS 45.45.450 - 45.45.470, 20 (1) "car" means a motor vehicle; 21 (2) "licensing cost" means the cost of titling, registering, obtaining 22 license plates for, or inspection of the rental cars of a rental car business in the state; 23 (3) "motor vehicle" has the meaning given in AS 28.90.990; 24 (4) "rental car business" means a person who engages in the business 25 of renting cars in the state; 26 (5) "vehicle licensing cost recovery fee" means a fee to recover 27 licensing costs. 28 * Sec. 3. AS 45.50.471(b) is amended by adding a new paragraph to read: 29 (57) violating AS 45.45.450 - 45.45.470 (car rental fees).