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Papan Bill to Regulate Peer to Peer Car Rental Services

Assembly Bill 893 Approved by Assembly Committee on the Judiciary

For immediate release:

SAN MATEO – Today, Assembly Bill 893, a bill to require peer to peer car rental companies to adhere to requirements related to airport operations, the collection of fees on rental transactions and the collection of the state tourism assessment fee. Assembly Bill 893 will ensure that vehicles rented through third party platforms similarly pay local and state fees that support vital public services, placing the peer to peer platforms on a level playing field with traditional car rental services. These include local levies such as those imposed in San Mateo County that help address local needs and fees supporting the California Office of Tourism which markets California as a destination, helping to attract billions of dollars in spending by visitors. “Many industries and public agencies that provide vital public services are in part supported and benefit from car rental fees,” said Papan. “Peer to Peer car rental services represent a dynamic innovation in the market but can no longer operate without paying their fair share like traditional car rental operators do.” In the rental vehicle space, personal vehicle sharing programs (peer-to-peer and ride sharing platforms) have become an avenue for private individuals to rent vehicles to consumers in the State of California. However, California law currently does not regulate personal vehicle sharing programs in the same manner it regulates rental car companies. Assembly Bill 893 will require peer to peer services to simply meet the same standard as all other vehicle rental services. Most tourism serving services including accommodations, restaurants and some retail services, transportation and travel services and many attractions are all required to collect such fees for the benefit of the tourism industry in California. The California Tourism Marketing Act of 1995 enabled the state’s tourism industry to assess itself to conduct statewide marketing. In 1998, the industry supported the first industrywide referendum, creating the Tourism Assessment Program and establishing the California Travel and Tourism Commission as the first-of-its-kind destination marketing organization in the nation. “Every Californian benefits from dollars spent within our State,” said Papan. “Peer to peer providers should similarly contribute as, like with traditional car rental companies, the business benefit is derived in part from the tourism promotion provided by the State and local governments.”