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House Study Bill 241 - IntroducedA Bill ForAn Act 1relating to customer facility charges as part of a
2vehicle rental transaction at airports, and including
3effective date and applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 330B.1 Definitions.
2As used in this chapter:
31. “Agreement day” means each twenty-four-hour period,
4or fraction thereof, within a rental period, each of which
5constitutes a separate day for which a customer facility charge
6may be levied.
72. “Airport commission” means an airport commission created
8under chapter 330.
93. “Aviation authority” means an aviation authority created
10under chapter 330A.
114. “Consolidated vehicle rental facility” means a
12consolidated facility used by a rental vehicle business on
13airport property.
145. “Customer” means a person who is authorized to use a
15rental vehicle under the terms of a rental agreement as the
16result of a vehicle rental transaction involving a rental
17vehicle business.
186. “Customer facility charge” means any fee or charge
19required by an aviation authority, airport commission,
20municipality, or other entity that operates an airport to be
21collected by the owner or operator of a rental vehicle business
22from a customer in a vehicle rental transaction at an airport.
237. “Municipality” means any county or city of this state,
24whose ordinances permit the entry of and submission by such
25political subdivision to an aviation authority created and
26operating under chapter 330A.
278. “Rental agreement” means a written contract containing
28the terms and conditions for the use of a rental vehicle by a
29customer for not more than sixty days.
309. “Rental vehicle” means a passenger-type vehicle that,
31upon execution of a rental agreement, is made available to a
32customer for the customer’s use for not more than sixty days.
3310. “Rental vehicle business” means a person who authorizes
34a customer to use a rental vehicle and who utilizes airport
35property in any aspect during a vehicle rental transaction.
-1- 111. “Vehicle rental transaction” means an act by a customer
2and rental vehicle business that results in the customer’s use
3of a rental vehicle for not more than sixty days.
4 Sec. 2. NEW SECTION. 330B.2 Customer facility charges.
51. An aviation authority, airport commission, municipality,
6or other entity that operates an airport may require the
7owner or operator of a rental vehicle business to collect a
8customer facility charge from a customer as part of a vehicle
9rental transaction at an airport, which shall be used for the
10purposes of financing, designing, constructing, operating,
11maintaining, acquiring, or otherwise improving consolidated
12vehicle rental facilities and common use transportation systems
13used to transport customers between consolidated vehicle rental
14facilities and other airport facilities.
152. If a customer facility charge is included as part of a
16vehicle rental transaction, the rental vehicle business shall
17include the customer facility charge as a separate line item
18in the rental agreement and the rental agreement must refer to
19the charge as “customer facility charge”. The moneys collected
20as a customer facility charge shall be held in trust for the
21benefit of the airport for the purposes authorized in this
22chapter and remitted at the direction of the airport, but not
23more often than once per month, for use only as authorized in
24this chapter.
253. A customer facility charge shall be uniformly calculated
26based either on a per-agreement or per-agreement-day basis at
27the discretion of the aviation authority, airport commission,
28municipality, or other entity that operates the airport. An
29aviation authority, airport commission, municipality, or other
30entity that operates an airport shall provide notice of any
31changes to the customer facility charge, including but not
32limited to the amount and calculation method, to every rental
33vehicle business not less than thirty days prior to the change
34taking effect.
354. A customer facility charge imposed by an aviation
-2-1authority, airport commission, municipality, or other entity
2that operates an airport must be used only for financing,
3designing, constructing, operating, maintaining, acquiring, or
4otherwise improving the consolidated vehicle rental facilities
5and common-use transportation systems used to transport
6customers between consolidated vehicle rental facilities and
7other airport facilities, including necessary equipment,
8vehicles, and facilities for such systems. Customer facility
9charge moneys shall not be used for airport terminal expansion,
10gate expansion, runway expansion, or for any purpose not
11authorized under this chapter.
125. Other than the fee to rent a vehicle, a rental vehicle
13business shall not collect an additional fee or impose an
14additional charge as part of a vehicle rental transaction at
15an airport, other than a customer facility charge as provided
16under this chapter.
176. The aggregate amount of moneys collected as customer
18facility charges shall not exceed the reasonable costs,
19as determined by an annual audit by an independent auditor
20paid for by the aviation authority, airport commission,
21municipality, or other entity that operates an airport, for the
22purposes authorized under this chapter.
23 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate
24importance, takes effect upon enactment.
25 Sec. 4. APPLICABILITY. This Act applies to moneys collected
26as a customer facility charge on or after the effective date of
27this Act, and to moneys collected as a customer facility charge
28prior to the effective date of this Act that are unexpended,
29unencumbered, and unobligated on the effective date of this
30Act.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34This bill creates a new Code chapter 330B authorizing and
35regulating customer facility charges imposed as part of a
-3-1vehicle rental transaction at an airport. Under the bill, an
2aviation authority, airport commission, municipality, or other
3entity that operates an airport is authorized to require a
4rental vehicle business to impose a customer facility charge
5(charge), as defined by the bill. The charge is paid by a
6customer who rents a vehicle at the airport.
7The bill requires a charge to be listed as a separate
8line item on all vehicle rental agreements transacted at the
9airport. The charge must be uniformly calculated based either
10on a per-agreement or per-agreement-day basis at the discretion
11of the aviation authority, airport commission, municipality,
12or other entity that operates the airport. An entity that
13operates an airport is required to provide notice of any
14changes to the charge, including but not limited to the amount
15and calculation method, to every rental vehicle business not
16less than 30 days prior to the change taking effect.
17The charge must be used only for financing, designing,
18constructing, operating, maintaining, acquiring, or otherwise
19improving the consolidated vehicle rental facilities and
20common-use transportation systems used to transport customers
21between consolidated vehicle rental facilities and other
22airport facilities, including necessary equipment, vehicles,
23and facilities for such systems. The bill prohibits customer
24facility charge moneys from being used for airport terminal
25expansion, gate expansion, runway expansion, or for any other
26purpose not authorized under the bill.
27The bill takes effect upon enactment and applies to charges
28collected on or after that date, and to charges collected prior
29to that date that are unexpended, unencumbered, and unobligated
30on that date.
-4-th/ns
2vehicle rental transaction at airports, and including
3effective date and applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 330B.1 Definitions.
2As used in this chapter:
31. “Agreement day” means each twenty-four-hour period,
4or fraction thereof, within a rental period, each of which
5constitutes a separate day for which a customer facility charge
6may be levied.
72. “Airport commission” means an airport commission created
8under chapter 330.
93. “Aviation authority” means an aviation authority created
10under chapter 330A.
114. “Consolidated vehicle rental facility” means a
12consolidated facility used by a rental vehicle business on
13airport property.
145. “Customer” means a person who is authorized to use a
15rental vehicle under the terms of a rental agreement as the
16result of a vehicle rental transaction involving a rental
17vehicle business.
186. “Customer facility charge” means any fee or charge
19required by an aviation authority, airport commission,
20municipality, or other entity that operates an airport to be
21collected by the owner or operator of a rental vehicle business
22from a customer in a vehicle rental transaction at an airport.
237. “Municipality” means any county or city of this state,
24whose ordinances permit the entry of and submission by such
25political subdivision to an aviation authority created and
26operating under chapter 330A.
278. “Rental agreement” means a written contract containing
28the terms and conditions for the use of a rental vehicle by a
29customer for not more than sixty days.
309. “Rental vehicle” means a passenger-type vehicle that,
31upon execution of a rental agreement, is made available to a
32customer for the customer’s use for not more than sixty days.
3310. “Rental vehicle business” means a person who authorizes
34a customer to use a rental vehicle and who utilizes airport
35property in any aspect during a vehicle rental transaction.
-1- 111. “Vehicle rental transaction” means an act by a customer
2and rental vehicle business that results in the customer’s use
3of a rental vehicle for not more than sixty days.
4 Sec. 2. NEW SECTION. 330B.2 Customer facility charges.
51. An aviation authority, airport commission, municipality,
6or other entity that operates an airport may require the
7owner or operator of a rental vehicle business to collect a
8customer facility charge from a customer as part of a vehicle
9rental transaction at an airport, which shall be used for the
10purposes of financing, designing, constructing, operating,
11maintaining, acquiring, or otherwise improving consolidated
12vehicle rental facilities and common use transportation systems
13used to transport customers between consolidated vehicle rental
14facilities and other airport facilities.
152. If a customer facility charge is included as part of a
16vehicle rental transaction, the rental vehicle business shall
17include the customer facility charge as a separate line item
18in the rental agreement and the rental agreement must refer to
19the charge as “customer facility charge”. The moneys collected
20as a customer facility charge shall be held in trust for the
21benefit of the airport for the purposes authorized in this
22chapter and remitted at the direction of the airport, but not
23more often than once per month, for use only as authorized in
24this chapter.
253. A customer facility charge shall be uniformly calculated
26based either on a per-agreement or per-agreement-day basis at
27the discretion of the aviation authority, airport commission,
28municipality, or other entity that operates the airport. An
29aviation authority, airport commission, municipality, or other
30entity that operates an airport shall provide notice of any
31changes to the customer facility charge, including but not
32limited to the amount and calculation method, to every rental
33vehicle business not less than thirty days prior to the change
34taking effect.
354. A customer facility charge imposed by an aviation
-2-1authority, airport commission, municipality, or other entity
2that operates an airport must be used only for financing,
3designing, constructing, operating, maintaining, acquiring, or
4otherwise improving the consolidated vehicle rental facilities
5and common-use transportation systems used to transport
6customers between consolidated vehicle rental facilities and
7other airport facilities, including necessary equipment,
8vehicles, and facilities for such systems. Customer facility
9charge moneys shall not be used for airport terminal expansion,
10gate expansion, runway expansion, or for any purpose not
11authorized under this chapter.
125. Other than the fee to rent a vehicle, a rental vehicle
13business shall not collect an additional fee or impose an
14additional charge as part of a vehicle rental transaction at
15an airport, other than a customer facility charge as provided
16under this chapter.
176. The aggregate amount of moneys collected as customer
18facility charges shall not exceed the reasonable costs,
19as determined by an annual audit by an independent auditor
20paid for by the aviation authority, airport commission,
21municipality, or other entity that operates an airport, for the
22purposes authorized under this chapter.
23 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate
24importance, takes effect upon enactment.
25 Sec. 4. APPLICABILITY. This Act applies to moneys collected
26as a customer facility charge on or after the effective date of
27this Act, and to moneys collected as a customer facility charge
28prior to the effective date of this Act that are unexpended,
29unencumbered, and unobligated on the effective date of this
30Act.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34This bill creates a new Code chapter 330B authorizing and
35regulating customer facility charges imposed as part of a
-3-1vehicle rental transaction at an airport. Under the bill, an
2aviation authority, airport commission, municipality, or other
3entity that operates an airport is authorized to require a
4rental vehicle business to impose a customer facility charge
5(charge), as defined by the bill. The charge is paid by a
6customer who rents a vehicle at the airport.
7The bill requires a charge to be listed as a separate
8line item on all vehicle rental agreements transacted at the
9airport. The charge must be uniformly calculated based either
10on a per-agreement or per-agreement-day basis at the discretion
11of the aviation authority, airport commission, municipality,
12or other entity that operates the airport. An entity that
13operates an airport is required to provide notice of any
14changes to the charge, including but not limited to the amount
15and calculation method, to every rental vehicle business not
16less than 30 days prior to the change taking effect.
17The charge must be used only for financing, designing,
18constructing, operating, maintaining, acquiring, or otherwise
19improving the consolidated vehicle rental facilities and
20common-use transportation systems used to transport customers
21between consolidated vehicle rental facilities and other
22airport facilities, including necessary equipment, vehicles,
23and facilities for such systems. The bill prohibits customer
24facility charge moneys from being used for airport terminal
25expansion, gate expansion, runway expansion, or for any other
26purpose not authorized under the bill.
27The bill takes effect upon enactment and applies to charges
28collected on or after that date, and to charges collected prior
29to that date that are unexpended, unencumbered, and unobligated
30on that date.
-4-th/ns