California Code
ARTICLE 2 - Fleet Purchaser Labor Standards
Section 39693.

39693. (a) For purposes of this chapter, a fleet purchaser excludes a rental or leasing entity.

(b) A lessee of a vehicle that was purchased using an incentive subject to this chapter shall comply with the requirements applicable to a fleet purchaser pursuant to Section 39690.

(c) A rental or leasing entity that purchases vehicles for use in fleet operations using an incentive program subject to this chapter shall notify lessees of these vehicles with lease terms of greater than one year that the lessee is required to comply with the requirements applicable to fleet purchasers pursuant to Section 39690.

(d) An agreement to lease a vehicle purchased using an incentive subject to this chapter is equivalent to the attestations described in subdivisions (a) and (b) of Section 39690.

(e) A lessee of a vehicle that was purchased using an incentive subject to this chapter shall, for the life of the lease, comply with requirements applicable to a fleet purchaser pursuant to subdivision (c) of Section 39690 and shall provide to the state board all information and disclosures required by that section.

(f) If the state board determines, upon investigation, that a fleet purchaser and rental or leasing entity entered into a rental agreement of less than one year for the express purpose of circumventing this chapter, the fleet purchaser and rental or leasing entity are subject to penalties as described in subdivision (a) of Section 39688.

(g) (1) A lessee of a vehicle that was purchased using an incentive subject to this chapter is in violation of this chapter if, at any time during the term of the operative lease, any of the following apply to the lessee:

(A) The lessee has been in violation of any applicable law.

(B) The lessee appears on the list maintained by the Division of Labor Standards Enforcement pursuant to Section 2810.4 of the Labor Code.

(C) The lessee fails to retain direct control over the manner and means for performance of any individual using or driving the vehicle.

(D) The lessee fails to make accurate and truthful attestations as required under Section 39690 and this section.

(2) A lessee who is in violation of this chapter is subject to a civil penalty in the amount of any incentive received by the rental or leasing entity related to the vehicle leased, prorated to the term of that lease.

(Added by Stats. 2022, Ch. 213, Sec. 2. (AB 2737) Effective January 1, 2023.)