H.F. 721 Section 1. NEW SECTION . 330B.1 Definitions. 1 As used in this chapter: 2 1. “Agreement day” means each twenty-four-hour period, 3 or fraction thereof, within a rental period, each of which 4 constitutes a separate day for which a customer facility charge 5 may be levied. 6 2. “Airport commission” means an airport commission created 7 under chapter 330. 8 3. “Aviation authority” means an aviation authority created 9 under chapter 330A. 10 4. “Consolidated vehicle rental facility” means a 11 consolidated facility used by a rental vehicle business on 12 airport property. 13 5. “Customer” means a person who is authorized to use a 14 rental vehicle under the terms of a rental agreement as the 15 result of a vehicle rental transaction involving a rental 16 vehicle business. 17 6. “Customer facility charge” means any fee or charge 18 required by an aviation authority, airport commission, 19 municipality, or other entity that operates an airport to be 20 collected by the owner or operator of a rental vehicle business 21 from a customer in a vehicle rental transaction at an airport. 22 7. “Municipality” means any county or city of this state, 23 whose ordinances permit the entry of and submission by such 24 political subdivision to an aviation authority created and 25 operating under chapter 330A. 26 8. “Rental agreement” means a written contract containing 27 the terms and conditions for the use of a rental vehicle by a 28 customer for not more than sixty days. 29 9. “Rental vehicle” means a passenger-type vehicle that, 30 upon execution of a rental agreement, is made available to a 31 customer for the customer’s use for not more than sixty days. 32 10. “Rental vehicle business” means a person who authorizes 33 a customer to use a rental vehicle and who utilizes airport 34 property in any aspect during a vehicle rental transaction. 35 -1- LSB 2522HV (1) 90 th/ns 1/ 4

H.F. 721 11. “Vehicle rental transaction” means an act by a customer 1 and rental vehicle business that results in the customer’s use 2 of a rental vehicle for not more than sixty days. 3 Sec. 2. NEW SECTION . 330B.2 Customer facility charges. 4 1. An aviation authority, airport commission, municipality, 5 or other entity that operates an airport may require the 6 owner or operator of a rental vehicle business to collect a 7 customer facility charge from a customer as part of a vehicle 8 rental transaction at an airport, which shall be used for the 9 purposes of financing, designing, constructing, operating, 10 maintaining, acquiring, or otherwise improving consolidated 11 vehicle rental facilities and common use transportation systems 12 used to transport customers between consolidated vehicle rental 13 facilities and other airport facilities. 14 2. If a customer facility charge is included as part of a 15 vehicle rental transaction, the rental vehicle business shall 16 include the customer facility charge as a separate line item 17 in the rental agreement and the rental agreement must refer to 18 the charge as “customer facility charge”. The moneys collected 19 as a customer facility charge shall be held in trust for the 20 benefit of the airport for the purposes authorized in this 21 chapter and remitted at the direction of the airport, but not 22 more often than once per month, for use only as authorized in 23 this chapter. 24 3. A customer facility charge shall be uniformly calculated 25 based either on a per-agreement or per-agreement-day basis at 26 the discretion of the aviation authority, airport commission, 27 municipality, or other entity that operates the airport. An 28 aviation authority, airport commission, municipality, or other 29 entity that operates an airport shall provide notice of any 30 changes to the customer facility charge, including but not 31 limited to the amount and calculation method, to every rental 32 vehicle business not less than thirty days prior to the change 33 taking effect. 34 4. A customer facility charge imposed by an aviation 35 -2- LSB 2522HV (1) 90 th/ns 2/ 4

H.F. 721 authority, airport commission, municipality, or other entity 1 that operates an airport must be used only for financing, 2 designing, constructing, operating, maintaining, acquiring, or 3 otherwise improving the consolidated vehicle rental facilities 4 and common-use transportation systems used to transport 5 customers between consolidated vehicle rental facilities and 6 other airport facilities, including necessary equipment, 7 vehicles, and facilities for such systems. Customer facility 8 charge moneys shall not be used for airport terminal expansion, 9 gate expansion, runway expansion, or for any purpose not 10 authorized under this chapter. 11 5. Other than the fee to rent a vehicle, a rental vehicle 12 business shall not collect an additional fee or impose an 13 additional charge as part of a vehicle rental transaction at 14 an airport, other than a customer facility charge as provided 15 under this chapter. 16 6. The aggregate amount of moneys collected as customer 17 facility charges shall not exceed the reasonable costs, 18 as determined by an annual audit by an independent auditor 19 paid for by the aviation authority, airport commission, 20 municipality, or other entity that operates an airport, for the 21 purposes authorized under this chapter. 22 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 23 importance, takes effect upon enactment. 24 Sec. 4. APPLICABILITY. This Act applies to moneys collected 25 as a customer facility charge on or after the effective date of 26 this Act, and to moneys collected as a customer facility charge 27 prior to the effective date of this Act that are unexpended, 28 unencumbered, and unobligated on the effective date of this 29 Act. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill creates a new Code chapter 330B authorizing and 34 regulating customer facility charges imposed as part of a 35 -3- LSB 2522HV (1) 90 th/ns 3/ 4

H.F. 721 vehicle rental transaction at an airport. Under the bill, an 1 aviation authority, airport commission, municipality, or other 2 entity that operates an airport is authorized to require a 3 rental vehicle business to impose a customer facility charge 4 (charge), as defined by the bill. The charge is paid by a 5 customer who rents a vehicle at the airport. 6 The bill requires a charge to be listed as a separate 7 line item on all vehicle rental agreements transacted at the 8 airport. The charge must be uniformly calculated based either 9 on a per-agreement or per-agreement-day basis at the discretion 10 of the aviation authority, airport commission, municipality, 11 or other entity that operates the airport. An entity that 12 operates an airport is required to provide notice of any 13 changes to the charge, including but not limited to the amount 14 and calculation method, to every rental vehicle business not 15 less than 30 days prior to the change taking effect. 16 The charge must be used only for financing, designing, 17 constructing, operating, maintaining, acquiring, or otherwise 18 improving the consolidated vehicle rental facilities and 19 common-use transportation systems used to transport customers 20 between consolidated vehicle rental facilities and other 21 airport facilities, including necessary equipment, vehicles, 22 and facilities for such systems. The bill prohibits customer 23 facility charge moneys from being used for airport terminal 24 expansion, gate expansion, runway expansion, or for any other 25 purpose not authorized under the bill. 26 The bill takes effect upon enactment and applies to charges 27 collected on or after that date, and to charges collected prior 28 to that date that are unexpended, unencumbered, and unobligated 29 on that date. 30 -4- LSB 2522HV (1) 90 th/ns 4/ 4