HB 102: "An Act relating to rental vehicles; relating to vehicle rental networks; relating to liability for vehicle rental taxes; and providing for an effective date."

00                             HOUSE BILL NO. 102                                                                          
01 "An Act relating to rental vehicles; relating to vehicle rental networks; relating to                                   
02 liability for vehicle rental taxes; and providing for an effective date."                                               
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
05 to read:                                                                                                                
06       SHORT TITLE. This Act may be known as the Vehicle Rental Modernization Act.                                       
07    * Sec. 2. AS 43.52.050(a) is amended to read:                                                                      
08            (a)  The taxes imposed by AS 43.52.010 - 43.52.099 shall be collected and                                    
09       paid to the department                                                                                            
10                 (1)  by the                                                                                             
11                      (A)  person who provides the leased or rented vehicle; or                                  
12                      (B)  vehicle rental business that arranged or executed the                                     
13            rental through the vehicle rental network if the rental was arranged or                                  
14            executed through a vehicle rental network; and                                                           
01                 (2)  in the manner and at the times required by the department by                                       
02       regulation.                                                                                                       
03    * Sec. 3. AS 43.52.050 is amended by adding a new subsection to read:                                              
04            (c)  In this section, "vehicle rental business" and "vehicle rental network" have                            
05       the meanings given in AS 45.45.459.                                                                               
06    * Sec. 4. AS 45.45 is amended by adding new sections to article 8 to read:                                         
07 Sec. 45.45.425. Vehicle rental network rental. A vehicle rental business that                                         
08 arranges or executes personal passenger vehicle or recreational vehicle rentals through                                 
09 a vehicle rental network is subject to the same laws and regulations as other passenger                                 
10 vehicle or recreational vehicle rentals, including AS 19.75.915, AS 28.10.375,                                          
11       AS 28.35.320, AS 43.52, and AS 45.45.425 - 45.45.459.                                                             
12 Sec. 45.45.430. Electronic notice and disclosure. (a) If a vehicle rental                                             
13 business is required to provide a notice or disclosure, the vehicle rental business may                                 
14       deliver the notice or disclosure electronically.                                                                  
15 (b)  A person may accept a notice or disclosure from a vehicle rental business                                          
16 electronically. The acceptance of a notice or disclosure is valid until the person                                      
17       affirmatively withdraws acceptance of the notice or disclosure.                                                   
18    * Sec. 5. AS 45.45.450 is amended to read:                                                                         
19 Sec. 45.45.450. Identification of cost recovery fees. If a vehicle rental [CAR]                                   
20 business charges a cost recovery fee, the vehicle rental [CAR] business shall                                       
21 separately identify and charge for each cost recovery fee in writing in the vehicle                                 
22 rental [CAR] agreement. In this section, "cost recovery fee" means a vehicle licensing                                  
23 cost recovery fee, an airport-related cost, a government tax, or a government                                           
24       surcharge.                                                                                                        
25    * Sec. 6. AS 45.45.455 is amended to read:                                                                         
26 Sec. 45.45.455. Vehicle licensing cost recovery fee. (a) A vehicle rental                                         
27 [CAR] business may not charge a renter a vehicle licensing cost recovery fee unless                                     
28 the vehicle licensing cost recovery fee represents a good faith estimate by the vehicle                             
29 rental [CAR] business of the average daily cost to the vehicle rental [CAR] business                                
30       of recovering its actual total annual licensing costs in the state during a calendar year.                        
31 (b)  If the total amount of the vehicle licensing cost recovery fees collected by                                       
01       a vehicle rental [CAR] business during a calendar year exceeds the actual amount of                           
02       the vehicle rental [CAR] business's licensing costs during that calendar year, the                            
03       vehicle rental [CAR] business shall                                                                           
04                 (1)  retain the excess amount; and                                                                      
05                 (2)  adjust the good faith estimate required by (a) of this section for the                             
06       next calendar year so that the good faith estimate reflects the excess amount.                                    
07 (c)  In addition to the adjustment required by (b) of this section, a vehicle                                       
08 rental [CAR] business may adjust its vehicle licensing cost recovery fee during the                                     
09 calendar year when the excess vehicle licensing cost recovery fees are collected if the                                 
10       vehicle licensing cost recovery fee otherwise complies with this section.                                         
11    * Sec. 7. AS 45.45.459 is amended to read:                                                                         
12 Sec. 45.45.459. Definitions. In AS 45.45.425 - 45.45.459 [AS 45.45.450 -                                          
13       45.45.459],                                                                                                     
14                 (1)  ["CAR" MEANS A MOTOR VEHICLE;                                                                      
15 (2)]  "licensing cost" means the cost of titling, registering, obtaining                                                
16       license plates for, or inspection of the rental cars of a rental car business in the state;                       
17                 (2)  "passenger vehicle" has the meaning given in AS 43.52.099;                                     
18 (3)  "personal vehicle" means a motor vehicle that is owned, leased,                                                
19 or otherwise authorized to be rented by the owner; "personal vehicle" does not                                      
20       include a taxi, limousine, or other commercial motor vehicle for hire;                                        
21                 (4)  "recreational vehicle" has the meaning given in AS 43.52.099;                                  
22 (5)  "vehicle" [(3) "MOTOR VEHICLE"] has the meaning given to                                                   
23       "motor vehicle" in AS 28.90.990;                                                                              
24 (6) [(4)  "RENTAL CAR BUSINESS" MEANS A PERSON WHO                                                                  
25       ENGAGES IN THE BUSINESS OF RENTING CARS IN THE STATE;                                                             
26 (5)]  "vehicle licensing cost recovery fee" means a fee to recover                                                      
27       licensing costs;                                                                                              
28 (7)  "vehicle rental business" means a person who engages in the                                                    
29 business of renting a vehicle in the state or, through a vehicle rental network,                                    
30       arranging or executing a vehicle rental in the state;                                                         
31 (8)  "vehicle rental network" means a digital network that connects                                                 
01 vehicle renters to personal vehicle owners; in this paragraph, "digital network"                                    
02 means any online-enabled application, software, website, or system offered or                                       
03 used by a vehicle rental network company that enables the prearrangement of                                         
04       vehicle rentals with personal vehicle owners.                                                                 
05    * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).