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AB-1374 • 2026

Rental passenger vehicle transactions: third parties.

Rental passenger vehicle transactions: third parties.

Housing Taxes
Enacted

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

Sponsor
Berman
Last action
Official status
Chaptered
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Rental Car Rules for Third Parties

This law extends rental car pricing rules to third-party sellers, requiring them to show total costs including taxes and fees, list mandatory service charges with the base rate, and state the vehicle's fuel source before a reservation is completed.

What This Bill Does

  • Applies existing rental rate disclosure laws to third parties like travel agencies or passenger carriers selling rentals.
  • Requires companies to provide an estimate of total charges for the entire rental, including all government taxes and fees, as soon as they have specific information about the trip.
  • Mandates that sellers clearly state what kind of fuel source the vehicle uses before a customer finishes booking.
  • Counts mandatory third-party service fees as part of additional mandatory charges that cannot be added on top of the advertised rate without disclosure.
  • Changes rules so rental companies must provide a total charges estimate instead of just a good faith estimate for rates and extra charges.

Who It Names or Affects

  • Rental car companies
  • Third-party sellers such as passenger carriers or travel service providers
  • People renting vehicles

Terms To Know

Third party
A person or business other than the rental company that sells or books a vehicle for a customer, such as a passenger carrier.
Additional mandatory charges
Fees required to be paid by the renter, including third-party service fees and government taxes, which must be listed with the base rate.

Limits and Unknowns

  • The official text does not specify an exact effective date.
  • Responsibility for breaking these rules depends on whether one party provided correct charge information to the other before a sale was made.

Bill History

  1. California Legislative Information

    Chaptered

Official Summary Text

Rental passenger vehicle transactions: third parties.