HF 721 (LSB 2522HV (1) 90)

HOUSE FILE 721

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HSB 241)

A BILL FOR

An Act relating to customer facility charges as part of a vehicle rental transaction at airports, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

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