(a) A rental company’s disclosure requirements shall be satisfied for renters who are enrolled in the rental company’s membership program if all of the following conditions are met:

(1) Prior to the enrollee’s first rental as a participant in the program, the renter receives, in writing, the following:

(A) All of the disclosures required by paragraph (1) of subdivision (c) of Section 1939.09, including the terms and conditions of the rental agreement then in effect.

(B) An Internet Web site address, as well as a contact number or address, where the enrollee can learn of changes to the rental agreement or to the laws of this state governing rental agreements since the effective date of the rental company’s most recent restatement of the rental agreement and distribution of that restatement to its members.

(2) At the commencement of each rental period, the renter is provided, on the rental record or the folder in which it is inserted, with a printed notice stating that he or she had either previously selected or declined an optional damage waiver and that the renter has the right to change preferences.

(3) (A) At the commencement of each rental period, the rental company provides, on the rearview mirror, a hanger on which a statement is printed, in a box, in at least 12-point boldface type, notifying the renter that the collision damage waiver offered by the rental company may be duplicative of coverage that the customer maintains under his or her own policy of motor vehicle insurance. If it is not feasible to hang the statement from the rearview mirror, it shall be hung from the steering wheel.

(B) The hanger shall provide the renter a box to initial if he or she, but not his or her employer, has previously accepted or declined the collision damage waiver and that he or she now wishes to change his or her decision to accept or decline the collision damage waiver, as follows:

“If I previously accepted the collision damage waiver, I now decline it.

“If I previously declined the collision damage waiver, I now accept it.”

(C) The hanger shall also provide a box for the enrollee to indicate whether this change applies to this rental transaction only or to all future rental transactions. The hanger shall also notify the renter that he or she may make that change, prior to leaving the lot, by returning the form to an employee designated to receive the form who is available at the lot where the renter takes possession of the car, to receive any change in the rental agreement from the renter.

(b) (1) This section is not effective unless an employee is available pursuant to paragraph (5) of subdivision (k) of Section 1939.01 is actually present at the required location.

(2) This section does not relieve the rental company from the disclosures required to be made within the text of a contract or holder in which the contract is placed; in or on an advertisement containing a rental rate; or in a telephonic, in-person, or computer-transmitted quotation or reservation.

(Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)