Existing law generally governs the transactions between a rental car company, also referred to as a rental company, and its customers, as provided. Existing law prohibits a rental company from using, accessing, or obtaining any information relating to the renter's use of the rental vehicle that was obtained using electronic surveillance technology, except under specified circumstances. Existing law defines "electronic surveillance technology" for these purposes to include, among other things, location-based technologies and to exclude, among other things, systems that are used for prescribed purposes related to repairs and safety, as provided. Existing law permits a rental company and a renter to limit the responsibilities of a renter in specified events, including loss due to theft of the rented vehicle up to its fair market value, as specified, provided the rental company establishes by clear and convincing evidence that the renter or an authorized driver failed to exercise ordinary care while in possession of the vehicle. Existing law establishes, in the situation described in the previous sentence, a presumption that the renter has no liability for loss due to theft if specified conditions are met, including that an authorized driver has possession of the ignition key or establishes that the ignition key was not in the vehicle at the time of the theft, as provided.
This bill would allow a rental company to use location-based technology, as specified, to detect rental vehicle movement in prescribed circumstances. The bill would additionally exclude from the definition of electronic surveillance technology, thereby exempting from the general prohibition on electronic surveillance technology, systems that are used for the purpose of maintaining, managing, and protecting vehicles in the rental car fleet, or otherwise improving a customer's experience during the rental car transaction, if specified conditions are met. The bill, with respect to the above-described provisions relating to the renter's liability for loss due to theft, would also delete the requirement that the rental company establish the renter's or authorized driver's failure to exercise ordinary care by clear and convincing evidence standard, and would revise the presumption that the renter has no liability for loss due to theft to instead apply this presumption if an authorized driver returns the ignition key.

Statutes affected:
AB 1197: 1760 CIV
02/21/25 - Introduced: 1760 CIV
03/28/25 - Amended Assembly: 1939.03 CIV, 1939.03 CIV, 1760 CIV
04/10/25 - Amended Assembly: 1939.01 CIV, 1939.01 CIV, 1939.03 CIV, 1939.23 CIV, 1939.23 CIV