Amended IN Assembly March 28, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1197Introduced by Assembly Member CalderonFebruary 21, 2025 An act to amend Section 1760 1939.03 of the Civil Code, relating to deceptive business practices. rental passenger vehicles.LEGISLATIVE COUNSEL'S DIGESTAB 1197, as amended, Calderon. Consumer Legal Remedies Act: deceptive business practices. Rental passenger vehicles: renter liability: loss due to theft.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 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 above-described situation, 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 delete the requirement that the rental company establish the renters or authorized drivers failure to exercise ordinary care by clear and convincing evidence standard. The bill would also 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. The bill, if a renter or authorized driver failed to exercise ordinary care, would also require the rental company to limit any recovery for loss due to theft to the limits of the renters or authorized drivers insurance coverage.Existing law, the Consumer Legal Remedies Act, prohibits specified unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer. This bill would make a nonsubstantive change to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1939.03 of the Civil Code is amended to read:1939.03. Except as limited by Section 1939.05, a rental company and a renter may agree that the renter will be responsible for no more than all of the following:(a) Physical or mechanical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from collision regardless of the cause of the damage.(b) (1) Loss due to theft of the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, provided that the rental company establishes by clear and convincing evidence that the renter or the authorized driver failed to exercise ordinary care while in possession of the vehicle. In addition, the renter shall be presumed to have no liability for any loss due to theft if (1) an both of the following conditions are met:(A) An authorized driver has possession of returns the ignition key furnished by the rental company or an authorized driver establishes that the ignition key furnished by the rental company was not in the vehicle at the time of the theft, and (2) an company.(B) An authorized driver files an official report of the theft with the police or other law enforcement agency within 24 hours of learning of the theft and reasonably cooperates with the rental company and the police or other law enforcement agency in providing information concerning the theft. The(2) The presumption set forth in this subdivision is a presumption affecting the burden of proof which the rental company may rebut by establishing that an authorized driver committed, or aided and abetted the commission of, the theft.(3) If the renter or the authorized driver failed to exercise ordinary care, then the rental company shall limit any recovery for loss due to theft to the limits of the protection extended by any applicable insurance coverage of the renter or authorized driver.(c) Physical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from vandalism occurring after, or in connection with, the theft of the rented vehicle. However, the renter shall have no liability for any damage due to vandalism if the renter would have no liability for theft pursuant to subdivision (b).(d) Physical damage to the rented vehicle up to a total of five hundred dollars ($500) resulting from vandalism unrelated to the theft of the rented vehicle.(e) Actual charges for towing, storage, and impound fees paid by the rental company if the renter is liable for damage or loss.(f) An administrative charge, which shall include the cost of appraisal and all other costs and expenses incident to the damage, loss, repair, or replacement of the rented vehicle.SECTION 1.Section 1760 of the Civil Code is amended to read:1760.This title shall be liberally construed and applied to promote its underlying purposes, which are to protect consumers against unfair and deceptive business practices and to provide efficient and economical procedures to secure that protection.
Amended IN Assembly March 28, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1197Introduced by Assembly Member CalderonFebruary 21, 2025 An act to amend Section 1760 1939.03 of the Civil Code, relating to deceptive business practices. rental passenger vehicles.LEGISLATIVE COUNSEL'S DIGESTAB 1197, as amended, Calderon. Consumer Legal Remedies Act: deceptive business practices. Rental passenger vehicles: renter liability: loss due to theft.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 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 above-described situation, 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 delete the requirement that the rental company establish the renters or authorized drivers failure to exercise ordinary care by clear and convincing evidence standard. The bill would also 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. The bill, if a renter or authorized driver failed to exercise ordinary care, would also require the rental company to limit any recovery for loss due to theft to the limits of the renters or authorized drivers insurance coverage.Existing law, the Consumer Legal Remedies Act, prohibits specified unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer. This bill would make a nonsubstantive change to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
Amended IN Assembly March 28, 2025
Amended IN Assembly March 28, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 1197
Introduced by Assembly Member CalderonFebruary 21, 2025
Introduced by Assembly Member Calderon
February 21, 2025
An act to amend Section 1760 1939.03 of the Civil Code, relating to deceptive business practices. rental passenger vehicles.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1197, as amended, Calderon. Consumer Legal Remedies Act: deceptive business practices. Rental passenger vehicles: renter liability: loss due to theft.
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 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 above-described situation, 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 delete the requirement that the rental company establish the renters or authorized drivers failure to exercise ordinary care by clear and convincing evidence standard. The bill would also 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. The bill, if a renter or authorized driver failed to exercise ordinary care, would also require the rental company to limit any recovery for loss due to theft to the limits of the renters or authorized drivers insurance coverage.Existing law, the Consumer Legal Remedies Act, prohibits specified unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer. This bill would make a nonsubstantive change to these provisions.
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 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 above-described situation, 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 delete the requirement that the rental company establish the renters or authorized drivers failure to exercise ordinary care by clear and convincing evidence standard. The bill would also 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. The bill, if a renter or authorized driver failed to exercise ordinary care, would also require the rental company to limit any recovery for loss due to theft to the limits of the renters or authorized drivers insurance coverage.
Existing law, the Consumer Legal Remedies Act, prohibits specified unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer.
This bill would make a nonsubstantive change to these provisions.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 1939.03 of the Civil Code is amended to read:1939.03. Except as limited by Section 1939.05, a rental company and a renter may agree that the renter will be responsible for no more than all of the following:(a) Physical or mechanical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from collision regardless of the cause of the damage.(b) (1) Loss due to theft of the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, provided that the rental company establishes by clear and convincing evidence that the renter or the authorized driver failed to exercise ordinary care while in possession of the vehicle. In addition, the renter shall be presumed to have no liability for any loss due to theft if (1) an both of the following conditions are met:(A) An authorized driver has possession of returns the ignition key furnished by the rental company or an authorized driver establishes that the ignition key furnished by the rental company was not in the vehicle at the time of the theft, and (2) an company.(B) An authorized driver files an official report of the theft with the police or other law enforcement agency within 24 hours of learning of the theft and reasonably cooperates with the rental company and the police or other law enforcement agency in providing information concerning the theft. The(2) The presumption set forth in this subdivision is a presumption affecting the burden of proof which the rental company may rebut by establishing that an authorized driver committed, or aided and abetted the commission of, the theft.(3) If the renter or the authorized driver failed to exercise ordinary care, then the rental company shall limit any recovery for loss due to theft to the limits of the protection extended by any applicable insurance coverage of the renter or authorized driver.(c) Physical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from vandalism occurring after, or in connection with, the theft of the rented vehicle. However, the renter shall have no liability for any damage due to vandalism if the renter would have no liability for theft pursuant to subdivision (b).(d) Physical damage to the rented vehicle up to a total of five hundred dollars ($500) resulting from vandalism unrelated to the theft of the rented vehicle.(e) Actual charges for towing, storage, and impound fees paid by the rental company if the renter is liable for damage or loss.(f) An administrative charge, which shall include the cost of appraisal and all other costs and expenses incident to the damage, loss, repair, or replacement of the rented vehicle.SECTION 1.Section 1760 of the Civil Code is amended to read:1760.This title shall be liberally construed and applied to promote its underlying purposes, which are to protect consumers against unfair and deceptive business practices and to provide efficient and economical procedures to secure that protection.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 1939.03 of the Civil Code is amended to read:1939.03. Except as limited by Section 1939.05, a rental company and a renter may agree that the renter will be responsible for no more than all of the following:(a) Physical or mechanical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from collision regardless of the cause of the damage.(b) (1) Loss due to theft of the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, provided that the rental company establishes by clear and convincing evidence that the renter or the authorized driver failed to exercise ordinary care while in possession of the vehicle. In addition, the renter shall be presumed to have no liability for any loss due to theft if (1) an both of the following conditions are met:(A) An authorized driver has possession of returns the ignition key furnished by the rental company or an authorized driver establishes that the ignition key furnished by the rental company was not in the vehicle at the time of the theft, and (2) an company.(B) An authorized driver files an official report of the theft with the police or other law enforcement agency within 24 hours of learning of the theft and reasonably cooperates with the rental company and the police or other law enforcement agency in providing information concerning the theft. The(2) The presumption set forth in this subdivision is a presumption affecting the burden of proof which the rental company may rebut by establishing that an authorized driver committed, or aided and abetted the commission of, the theft.(3) If the renter or the authorized driver failed to exercise ordinary care, then the rental company shall limit any recovery for loss due to theft to the limits of the protection extended by any applicable insurance coverage of the renter or authorized driver.(c) Physical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from vandalism occurring after, or in connection with, the theft of the rented vehicle. However, the renter shall have no liability for any damage due to vandalism if the renter would have no liability for theft pursuant to subdivision (b).(d) Physical damage to the rented vehicle up to a total of five hundred dollars ($500) resulting from vandalism unrelated to the theft of the rented vehicle.(e) Actual charges for towing, storage, and impound fees paid by the rental company if the renter is liable for damage or loss.(f) An administrative charge, which shall include the cost of appraisal and all other costs and expenses incident to the damage, loss, repair, or replacement of the rented vehicle.
SECTION 1. Section 1939.03 of the Civil Code is amended to read:
### SECTION 1.
1939.03. Except as limited by Section 1939.05, a rental company and a renter may agree that the renter will be responsible for no more than all of the following:(a) Physical or mechanical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from collision regardless of the cause of the damage.(b) (1) Loss due to theft of the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, provided that the rental company establishes by clear and convincing evidence that the renter or the authorized driver failed to exercise ordinary care while in possession of the vehicle. In addition, the renter shall be presumed to have no liability for any loss due to theft if (1) an both of the following conditions are met:(A) An authorized driver has possession of returns the ignition key furnished by the rental company or an authorized driver establishes that the ignition key furnished by the rental company was not in the vehicle at the time of the theft, and (2) an company.(B) An authorized driver files an official report of the theft with the police or other law enforcement agency within 24 hours of learning of the theft and reasonably cooperates with the rental company and the police or other law enforcement agency in providing information concerning the theft. The(2) The presumption set forth in this subdivision is a presumption affecting the burden of proof which the rental company may rebut by establishing that an authorized driver committed, or aided and abetted the commission of, the theft.(3) If the renter or the authorized driver failed to exercise ordinary care, then the rental company shall limit any recovery for loss due to theft to the limits of the protection extended by any applicable insurance coverage of the renter or authorized driver.(c) Physical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from vandalism occurring after, or in connection with, the theft of the rented vehicle. However, the renter shall have no liability for any damage due to vandalism if the renter would have no liability for theft pursuant to subdivision (b).(d) Physical damage to the rented vehicle up to a total of five hundred dollars ($500) resulting from vandalism unrelated to the theft of the rented vehicle.(e) Actual charges for towing, storage, and impound fees paid by the rental company if the renter is liable for damage or loss.(f) An administrative charge, which shall include the cost of appraisal and all other costs and expenses incident to the damage, loss, repair, or replacement of the rented vehicle.
1939.03. Except as limited by Section 1939.05, a rental company and a renter may agree that the renter will be responsible for no more than all of the following:(a) Physical or mechanical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from collision regardless of the cause of the damage.(b) (1) Loss due to theft of the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, provided that the rental company establishes by clear and convincing evidence that the renter or the authorized driver failed to exercise ordinary care while in possession of the vehicle. In addition, the renter shall be presumed to have no liability for any loss due to theft if (1) an both of the following conditions are met:(A) An authorized driver has possession of returns the ignition key furnished by the rental company or an authorized driver establishes that the ignition key furnished by the rental company was not in the vehicle at the time of the theft, and (2) an company.(B) An authorized driver files an official report of the theft with the police or other law enforcement agency within 24 hours of learning of the theft and reasonably cooperates with the rental company and the police or other law enforcement agency in providing information concerning the theft. The(2) The presumption set forth in this subdivision is a presumption affecting the burden of proof which the rental company may rebut by establishing that an authorized driver committed, or aided and abetted the commission of, the theft.(3) If the renter or the authorized driver failed to exercise ordinary care, then the rental company shall limit any recovery for loss due to theft to the limits of the protection extended by any applicable insurance coverage of the renter or authorized driver.(c) Physical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from vandalism occurring after, or in connection with, the theft of the rented vehicle. However, the renter shall have no liability for any damage due to vandalism if the renter would have no liability for theft pursuant to subdivision (b).(d) Physical damage to the rented vehicle up to a total of five hundred dollars ($500) resulting from vandalism unrelated to the theft of the rented vehicle.(e) Actual charges for towing, storage, and impound fees paid by the rental company if the renter is liable for damage or loss.(f) An administrative charge, which shall include the cost of appraisal and all other costs and expenses incident to the damage, loss, repair, or replacement of the rented vehicle.
1939.03. Except as limited by Section 1939.05, a rental company and a renter may agree that the renter will be responsible for no more than all of the following:(a) Physical or mechanical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from collision regardless of the cause of the damage.(b) (1) Loss due to theft of the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, provided that the rental company establishes by clear and convincing evidence that the renter or the authorized driver failed to exercise ordinary care while in possession of the vehicle. In addition, the renter shall be presumed to have no liability for any loss due to theft if (1) an both of the following conditions are met:(A) An authorized driver has possession of returns the ignition key furnished by the rental company or an authorized driver establishes that the ignition key furnished by the rental company was not in the vehicle at the time of the theft, and (2) an company.(B) An authorized driver files an official report of the theft with the police or other law enforcement agency within 24 hours of learning of the theft and reasonably cooperates with the rental company and the police or other law enforcement agency in providing information concerning the theft. The(2) The presumption set forth in this subdivision is a presumption affecting the burden of proof which the rental company may rebut by establishing that an authorized driver committed, or aided and abetted the commission of, the theft.(3) If the renter or the authorized driver failed to exercise ordinary care, then the rental company shall limit any recovery for loss due to theft to the limits of the protection extended by any applicable insurance coverage of the renter or authorized driver.(c) Physical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from vandalism occurring after, or in connection with, the theft of the rented vehicle. However, the renter shall have no liability for any damage due to vandalism if the renter would have no liability for theft pursuant to subdivision (b).(d) Physical damage to the rented vehicle up to a total of five hundred dollars ($500) resulting from vandalism unrelated to the theft of the rented vehicle.(e) Actual charges for towing, storage, and impound fees paid by the rental company if the renter is liable for damage or loss.(f) An administrative charge, which shall include the cost of appraisal and all other costs and expenses incident to the damage, loss, repair, or replacement of the rented vehicle.
1939.03. Except as limited by Section 1939.05, a rental company and a renter may agree that the renter will be responsible for no more than all of the following:
(a) Physical or mechanical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from collision regardless of the cause of the damage.
(b) (1) Loss due to theft of the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, provided that the rental company establishes by clear and convincing evidence that the renter or the authorized driver failed to exercise ordinary care while in possession of the vehicle. In addition, the renter shall be presumed to have no liability for any loss due to theft if (1) an both of the following conditions are met:
(A) An authorized driver has possession of returns the ignition key furnished by the rental company or an authorized driver establishes that the ignition key furnished by the rental company was not in the vehicle at the time of the theft, and (2) an company.
(B) An authorized driver files an official report of the theft with the police or other law enforcement agency within 24 hours of learning of the theft and reasonably cooperates with the rental company and the police or other law enforcement agency in providing information concerning the theft. The
(2) The presumption set forth in this subdivision is a presumption affecting the burden of proof which the rental company may rebut by establishing that an authorized driver committed, or aided and abetted the commission of, the theft.
(3) If the renter or the authorized driver failed to exercise ordinary care, then the rental company shall limit any recovery for loss due to theft to the limits of the protection extended by any applicable insurance coverage of the renter or authorized driver.
(c) Physical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from vandalism occurring after, or in connection with, the theft of the rented vehicle. However, the renter shall have no liability for any damage due to vandalism if the renter would have no liability for theft pursuant to subdivision (b).
(d) Physical damage to the rented vehicle up to a total of five hundred dollars ($500) resulting from vandalism unrelated to the theft of the rented vehicle.
(e) Actual charges for towing, storage, and impound fees paid by the rental company if the renter is liable for damage or loss.
(f) An administrative charge, which shall include the cost of appraisal and all other costs and expenses incident to the damage, loss, repair, or replacement of the rented vehicle.
This title shall be liberally construed and applied to promote its underlying purposes, which are to protect consumers against unfair and deceptive business practices and to provide efficient and economical procedures to secure that protection.