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Bill > AB1197


CA AB1197

CA AB1197
Rental passenger vehicles: electronic surveillance technology: renter liability for loss due to theft.


summary

Introduced
02/21/2025
In Committee
07/15/2025
Crossed Over
05/23/2025
Passed
10/07/2025
Dead
Signed/Enacted/Adopted
10/07/2025

Introduced Session

2025-2026 Regular Session

Bill Summary

An act to amend Sections 1939.03 and 1939.23 of the Civil Code, relating to rental passenger vehicles.

AI Summary

This bill modifies existing California law regarding rental vehicle transactions, focusing on two key areas: electronic surveillance technology and renter liability for vehicle theft. The legislation allows rental companies to use geofence technology to detect rental vehicle movement in specific situations, such as when a vehicle is moved outside the authorized country or into an impound yard. Regarding theft liability, the bill changes the existing legal presumption that absolves renters of responsibility for vehicle theft. Previously, renters were presumed not liable if an authorized driver returned the ignition key and filed a police report within 24 hours. The new version simplifies this provision by creating a presumption of no liability solely based on the authorized driver returning the ignition key. The bill also establishes clear guidelines for when rental companies can use electronic surveillance technology, such as locating stolen or missing vehicles, responding to law enforcement requests, or tracking vehicle movement in specific circumstances. Importantly, the legislation maintains protections for renters by prohibiting rental companies from using surveillance technology to track renters for imposing additional fines or surcharges, and it requires companies to maintain records of electronic surveillance technology usage and provide those records to renters upon request.

Committee Categories

Business and Industry, Justice

Sponsors (1)

Last Action

Chaptered by Secretary of State - Chapter 449, Statutes of 2025. (on 10/07/2025)

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