Iowa 2023-2024 Regular Session

Iowa House Bill HSB241

Introduced
3/30/23  
Introduced
3/30/23  

Caption

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.(See HF 721.)

Impact

If enacted, HSB241 will explicitly require rental vehicle businesses at airports to itemize the customer facility charge in rental agreements. This will enhance financial transparency for customers, allowing them to see exactly what they are being charged and for what purpose. Furthermore, the bill stipulates that the funds collected will be exclusively used for designated purposes associated with vehicle rental facilities and related transport systems serving the airports, rather than broader airport expansion projects.

Summary

House Study Bill 241 (HSB241) proposes provisions relating to customer facility charges that are part of vehicle rental transactions at airports. The bill aims to authorize aviation authorities and municipalities to impose a charge, which is to be paid by customers renting vehicles at airports. This charge is intended to help finance the maintenance and improvement of airport facilities specifically related to rental vehicles, ensuring a streamlined process for both the authorities and the rental businesses involved.

Contention

Notably, the bill contains provisions preventing the use of collected customer facility charge revenues for broader airport terminal expansions and runway developments. This restriction addresses concerns that funds could otherwise be diverted away from the intended improvements for rental facilities. However, discussions around the bill may reveal differing views on whether such a restriction effectively prioritizes customer interests, or if it limits the flexibility of airport operations.

Enforcement

The bill takes effect immediately upon enactment, with applicability to any customer facility charges collected moving forward. The enforced rules require auditing processes to ensure that the collected funds align with the enumerated uses stated in the legislation. Discussions about this bill are likely to center on how it will influence future contracts between rental companies and airport authorities, as well as the potential financial implications for customers renting vehicles at airports.

Companion Bills

IA HF721

Replaced by 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.(Formerly HSB 241.)

Previously Filed As

IA HF721

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.(Formerly HSB 241.)

IA AB1286

Airports: alternative customer facility charges.

IA AB218

Local agencies: airports: customer facility charges.

IA AB534

Local agencies: airports: customer facility charges.

IA AB1150

Local agencies: airports: alternative customer facility charges.

IA HSB159

A bill for an act relating to nonsubstantive Code corrections, and including effective date and retroactive applicability provisions.(See HF 567.)

IA HSB281

A bill for an act relating to the conduct of elections, and including effective date and retroactive applicability provisions.(See HF 954.)

IA HF567

A bill for an act relating to nonsubstantive Code corrections, and including effective date and retroactive applicability provisions. (Formerly HSB 159.) Contingent effective date. Applicability date: 01/01/2022, 01/01/2023.

IA SF449

A bill for an act relating to digital financial asset transaction kiosks and including penalties, and effective date and applicability provisions. (Formerly SSB 1142.) Effective date: 05/19/2025. Applicability date: 07/01/2025.

IA HF491

A bill for an act concerning common carriers and including effective date and applicability provisions.(See HF 939.)

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