Local agencies: airports: alternative customer facility charges.

Housing Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Schultz
Last action: 2025-10-01
Official status: Chaptered by Secretary of State - Chapter 182, Statutes of 2025.
Effective date: Not listed

Plain English Breakdown

The bill summary and digest do not specify the effective date or when airports must start using these new rules.

Airports Can Charge More for Maintenance

This law increases the daily charge limit airports can collect from car rental companies and allows proceeds from these charges to be used for major maintenance of rental vehicle facilities.

What This Bill Does

Allows airports to collect alternative customer facility charges up to $12 per day from car rental companies.
Limits total collected charges to reasonable costs for building, designing, constructing, or performing major maintenance on airport vehicle rental facilities and common-use transportation systems.
Authorizes bond proceeds from these charges to be used for major maintenance of rental vehicle facilities but not for terminal modifications.

Who It Names or Affects

Airports that have car rental companies operating within them.
Car rental companies at these airports who must collect charges from customers.
Customers renting cars from these companies who will pay the additional fees.

Terms To Know

Customer facility charge: A fee collected by car rental companies to help finance airport facilities and systems.
Alternative customer facility charge: An extra fee that can be charged for major maintenance or construction projects at the airport.

Limits and Unknowns

The law does not specify when airports must start using these new rules.
It is unclear how much more money will actually be collected under this new system.

Bill History

2025-10-01 California Legislative Information
Chaptered by Secretary of State - Chapter 182, Statutes of 2025.
2025-10-01 California Legislative Information
Approved by the Governor.
2025-09-09 California Legislative Information
Enrolled and presented to the Governor at 3 p.m.
2025-09-03 California Legislative Information
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 72. Noes 1. Page 2861.).
2025-09-02 California Legislative Information
In Assembly. Concurrence in Senate amendments pending.
2025-09-02 California Legislative Information
Read third time. Passed. Ordered to the Assembly. (Ayes 36. Noes 0. Page 2411.).
2025-06-19 California Legislative Information
Read second time. Ordered to third reading.
2025-06-18 California Legislative Information
From committee: Do pass. (Ayes 11. Noes 0.) (June 17).
2025-05-20 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.
2025-05-07 California Legislative Information
Referred to Com. on JUD.
2025-04-10 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2025-04-10 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 66. Noes 1. Page 1116.)
2025-04-03 California Legislative Information
Read second time. Ordered to third reading.
2025-04-02 California Legislative Information
From committee: Do pass. (Ayes 12. Noes 1.) (April 1).
2025-03-27 California Legislative Information
Re-referred to Com. on P. & C.P.
2025-03-26 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on P. & C.P. Read second time and amended.
2025-03-10 California Legislative Information
Referred to Com. on P. & C.P.
2025-02-21 California Legislative Information
From printer. May be heard in committee March 23.
2025-02-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1150, Schultz.
Local agencies: airports: alternative customer facility charges.
Existing law authorizes airports to require rental companies to collect a customer facility charge or an alternative customer facility charge for purposes that include financing, designing, and constructing airport vehicle rental facilities and common-use transportation systems. Existing law requires the aggregate amount of charges collected to not exceed, among other things, the reasonable costs to finance, design, and construct those facilities. Existing law authorizes a rental company to collect a customer facility charge under specified circumstances, including that revenues collected from the fee do not exceed the reasonable costs of financing, designing, and constructing the facility.
Existing law authorizes an airport to require rental companies to collect an alternative customer facility charge under specified conditions, including
that the airport finds that the reasonable cost of the project requires the additional amount of revenue that would be generated by the proposed daily rate, and prohibits the daily rate of the alternative customer facility charge from exceeding $9 per day. Existing law limits use of proceeds of any bonds backed by alternative customer facility charges to construction and design of the consolidated rental vehicle facility, terminal modifications, and operating costs of the common-use transportation system.
This bill would require that the aggregate amount of charges collected also not exceed the reasonable costs of performance of major maintenance on airport vehicle rental facilities, as provided. The bill would increase the daily maximum alternative customer facility charge an airport is authorized to require rental companies to collect to $12 per day. The bill would also authorize proceeds of any bonds backed by, or revenues from, alternative customer facility
charges to be used for major maintenance of a consolidated rental vehicle facility and would remove the authorization for the proceeds of those bonds to be used for terminal modifications.

Current Bill Text

Read the full stored bill text

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