California 2025 2025-2026 Regular Session

California Assembly Bill AB1197 Amended / Bill

Filed 04/10/2025

                    Amended IN  Assembly  April 10, 2025 Amended IN  Assembly  March 28, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1197Introduced by Assembly Member CalderonFebruary 21, 2025An act to amend Section 1939.03 Sections 1939.01, 1939.03, and 1939.23 of the Civil Code, relating to rental passenger vehicles.LEGISLATIVE COUNSEL'S DIGESTAB 1197, as amended, Calderon. Rental passenger vehicles: electronic surveillance technology: renter liability: liability for 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 prohibits a rental company from using, accessing, or obtaining any information relating to the renters 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 above-described situation, 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 customers experience during the rental car transaction, if specified conditions are met. The bill, with respect to the above-described provisions relating to the renters liability for loss due to theft, would also 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 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. 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.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 1939.01 of the Civil Code is amended to read:1939.01. For the purpose of this chapter, the following definitions shall apply:(a) Rental company means a person or entity in the business of renting passenger vehicles to the public.(b) Renter means any person in a manner obligated under a contract for the lease or hire of a passenger vehicle from a rental company for a period of less than 30 days.(c) Additional mandatory charges means any separately stated charges that the rental company requires the renter to pay to hire or lease the vehicle for the period of time to which the rental rate applies, which are imposed by a governmental entity and specifically relate to the operation of a rental vehicle business, including, but not limited to, a customer facility charge, airport concession fee, tourism commission assessment, vehicle license recovery fee, or other government-imposed taxes or fees.(d) Airport concession fee means a charge collected by a rental company from a renter that is the renters proportionate share of the amount paid by the rental company to the owner or operator of an airport for the right or privilege of conducting a vehicle rental business on the airports premises.(e) Authorized driver means all of the following:(1) The renter.(2) The renters spouse, if that person is a licensed driver and satisfies the rental companys minimum age requirement.(3) The renters employer or coworker, if the employer or coworker is engaged in business activity with the renter, is a licensed driver, and satisfies the rental companys minimum age requirement.(4) A person expressly listed by the rental company on that renters contract as an authorized driver.(f) Customer facility charge means any fee, including an alternative fee, required by an airport to be collected by a rental company from a renter pursuant to Section 50474.21 of the Government Code.(g) Damage waiver means a rental companys agreement not to hold a renter liable for all or any portion of any damage or loss related to the rented vehicle, any loss of use of the rented vehicle, or any storage, impound, towing, or administrative charges.(h) Electronic surveillance technology means a technological method or system used to observe, monitor, or collect information, including telematics, Global Positioning System (GPS), wireless technology, or location-based technologies. Electronic surveillance technology does not include event data recorders (EDR), sensing and diagnostic modules (SDM), or other systems that are used either: for any of the following purposes:(1) For the purpose of identifying, diagnosing, or monitoring functions related to the potential need to repair, service, or perform maintenance on the rental vehicle.(2) As part of the vehicles airbag sensing and diagnostic system in order to capture safety systems-related data for retrieval after a crash has occurred or in the event that the collision sensors are activated to prepare the decisionmaking computer to make the determination to deploy or not to deploy the airbag.(3) For the purpose of maintaining, managing, and protecting vehicles in the rental car fleet, or otherwise improving a customers experience during the rental car transaction, provided that all of the following conditions are met:(A) The purpose is clearly and conspicuously disclosed to the renter in the rental agreement.(B) Use of the information is otherwise permissible under the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100)).(C) Any personally identifiable information obtained from the rental vehicle is not retained or used after the rental vehicle is returned and the rental has concluded.(i) Estimated time for replacement means the number of hours of labor, or fraction thereof, needed to replace damaged vehicle parts as set forth in collision damage estimating guides generally used in the vehicle repair business and commonly known as crash books.(j) Estimated time for repair means a good faith estimate of the reasonable number of hours of labor, or fraction thereof, needed to repair damaged vehicle parts.(k) Membership program means a service offered by a rental company that permits customers to bypass the rental counter and go directly to the vehicle previously reserved or select an alternate vehicle. A membership program shall meet all of the following requirements:(1) The renter initiates enrollment by completing an application on which the renter can specify a preference for type of vehicle and acceptance or declination of optional services.(2) The rental company fully discloses, prior to the enrollees first rental as a participant in the program, all terms and conditions of the rental agreement as well as all required disclosures.(3) The renter may terminate enrollment at any time.(4) The rental company fully explains to the renter that designated preferences, as well as acceptance or declination of optional services, may be changed by the renter at any time for the next and future rentals.(5) An employee is available at the lot where the renter takes possession of the vehicle, to receive any change in the rental agreement from the renter.(l) Passenger vehicle or vehicle means a passenger vehicle as defined in Section 465 of the Vehicle Code.(m) Personal vehicle sharing program means a person or entity that for monetary compensation facilitates sharing or renting passenger vehicles to the public, including via a peer-to-peer internet website, application, or other platform that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration, and includes a personal vehicle sharing program as defined in Section 11580.24 of the Insurance Code.(n) Quote means an estimated cost of rental provided by a rental company or a third party to a potential customer that is based on information provided by the potential customer and used to generate an estimated cost of rental, including, but not limited to, potential dates of rental, locations, or classes of vehicle.(o) Tourism commission assessment means the charge collected by a rental company from a renter that has been established by the California Travel and Tourism Commission pursuant to Section 13995.65 of the Government Code.(p) Vehicle license fee means the tax imposed pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code).(q) Vehicle registration fee means any fee imposed pursuant to any provision of Chapter 6 (commencing with Section 9101) of Division 3 of the Vehicle Code or any other law that imposes a fee upon the registration of vehicles in this state.(r) Vehicle license recovery fee means a charge that seeks to recover the amount of any vehicle license fee and vehicle registration fee paid by a rental company for the particular class of vehicle being rented. If imposed, the vehicle license recovery fee shall be separately stated as a single charge in the quote and rental contract.SECTION 1.SEC. 2. 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 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 both of the following conditions are met:(A) An authorized driver returns the ignition key furnished by the rental 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.(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.SEC. 3. Section 1939.23 of the Civil Code is amended to read:1939.23. (a) A rental company shall not use, access, or obtain any information relating to the renters use of the rental vehicle that was obtained using electronic surveillance technology, except in the following circumstances:(1) (A) When the equipment is used by the rental company only for the purpose of locating a stolen, abandoned, or missing rental vehicle after one of the following:(i) The renter or law enforcement has informed the rental company that the vehicle is missing or has been stolen or abandoned.(ii) If the rental vehicle has not been returned following 24 hours after the contracted return date or by 24 hours following the end of an extension of that return date, the rental company may activate electronic surveillance technology. The rental company shall provide notice of activation of the electronic surveillance technology 24 hours before activation, by telephone and electronically pursuant to Section 1939.22, unless the renter has not provided a telephone number or the renter has not agreed to electronic communication pursuant to Section 1939.22. The rental or lease agreement shall advise the renter that electronic surveillance technology may be activated if the rental vehicle has not been returned within 24 hours after the contracted return date or extension of the return date. The renter shall acknowledge this advisement in the rental or lease agreement by initials. The advisement shall also be made orally to the renter at the time of executing the rental or lease agreement if the transaction is completed in person or by telephone. The advisements are not required to be made to members of the rental companys membership program executing a rental or lease agreement. However, a renter shall be given those advisements upon enrolling in the rental companys membership program.(iii) Notwithstanding clause (ii), if the rental vehicle has not been returned following one week after the contracted return date or by one week following the end of an extension of that return date.(iv) The rental company discovers the rental vehicle has been stolen or abandoned, and, if stolen, the rental company shall report the vehicle stolen to law enforcement by filing a stolen vehicle report, unless law enforcement has already informed the rental company that the vehicle is missing or has been stolen or abandoned.(v) The rental vehicle is the subject of an AMBER Alert issued pursuant to Section 8594 of the Government Code. If the rental company uses the equipment in connection with this provision relating to an AMBER Alert, the rental company shall notify law enforcement that one of the rental companys vehicles is the subject of an AMBER Alert upon becoming aware of the situation, unless law enforcement has already informed the rental company that the vehicle was the subject of an AMBER Alert.(B) If electronic surveillance technology is activated pursuant to subparagraph (A), a rental company shall maintain a record, in either electronic or written form, of information relevant to the activation of that technology. That information shall include the rental agreement, including the return date, and the date and time the electronic surveillance technology was activated. The record shall also include, if relevant, a record of written or other communication with the renter, including communications regarding extensions of the rental, police reports, or other written communication with law enforcement officials. The record shall be maintained for a period of at least 12 months from the time the record is created and shall be made available upon the renters request. The rental company shall maintain and furnish explanatory codes necessary to read the record. A rental company shall not be required to maintain a record if electronic surveillance technology is activated to recover a rental vehicle that is stolen or missing at a time other than during a rental period.(2) In response to a specific request from law enforcement pursuant to a subpoena or search warrant.(3) The rental company uses location-based technology, including, but not limited to, a geofence or other virtual perimeter, to detect the movement of a rental vehicle in either of the following circumstances:(A) The rental vehicle is moved outside of the country, if travel outside of the country is not authorized by the rental agreement.(B) The rental vehicle is moved into an impound or tow yard. If the vehicle remains within the perimeter of the impound or tow yard for 24 hours, the vehicle shall be deemed abandoned by the renter.(b) Subdivision (a) does not prohibit a rental company from equipping rental vehicles with any of the following:(1) GPS-based technology that provides navigation assistance to the occupants of the rental vehicle, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except for the purposes of discovering or repairing a defect in the technology and the information may then be used only for that purpose.(2) Electronic surveillance technology that allows for the remote locking or unlocking of the vehicle at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except as necessary to lock or unlock the vehicle.(3) Electronic surveillance technology that allows the company to provide roadside assistance, such as towing, flat tire, or fuel services, at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology except as necessary to provide the requested roadside assistance.(c) Subdivision (a) does not prohibit a rental company from obtaining, accessing, or using information from electronic surveillance technology for the sole purpose of determining the date and time the vehicle departs from and is returned to the rental company, and the total mileage driven and the vehicle fuel level of the returned vehicle. The information obtained or accessed from this electronic surveillance technology shall only be used for the purpose described in this subdivision.(d) A rental company shall not use electronic surveillance technology to track a renter in order to impose fines or surcharges relating to the renters use of the rental vehicle.

 Amended IN  Assembly  April 10, 2025 Amended IN  Assembly  March 28, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1197Introduced by Assembly Member CalderonFebruary 21, 2025An act to amend Section 1939.03 Sections 1939.01, 1939.03, and 1939.23 of the Civil Code, relating to rental passenger vehicles.LEGISLATIVE COUNSEL'S DIGESTAB 1197, as amended, Calderon. Rental passenger vehicles: electronic surveillance technology: renter liability: liability for 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 prohibits a rental company from using, accessing, or obtaining any information relating to the renters 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 above-described situation, 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 customers experience during the rental car transaction, if specified conditions are met. The bill, with respect to the above-described provisions relating to the renters liability for loss due to theft, would also 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 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. 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.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO 

 Amended IN  Assembly  April 10, 2025 Amended IN  Assembly  March 28, 2025

Amended IN  Assembly  April 10, 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 1939.03 Sections 1939.01, 1939.03, and 1939.23 of the Civil Code, relating to rental passenger vehicles.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 1197, as amended, Calderon. Rental passenger vehicles: electronic surveillance technology: renter liability: liability for 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 prohibits a rental company from using, accessing, or obtaining any information relating to the renters 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 above-described situation, 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 customers experience during the rental car transaction, if specified conditions are met. The bill, with respect to the above-described provisions relating to the renters liability for loss due to theft, would also 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 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. 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 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 renters 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 above-described situation, 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 customers experience during the rental car transaction, if specified conditions are met. The bill, with respect to the above-described provisions relating to the renters liability for loss due to theft, would also 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 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. 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.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 1939.01 of the Civil Code is amended to read:1939.01. For the purpose of this chapter, the following definitions shall apply:(a) Rental company means a person or entity in the business of renting passenger vehicles to the public.(b) Renter means any person in a manner obligated under a contract for the lease or hire of a passenger vehicle from a rental company for a period of less than 30 days.(c) Additional mandatory charges means any separately stated charges that the rental company requires the renter to pay to hire or lease the vehicle for the period of time to which the rental rate applies, which are imposed by a governmental entity and specifically relate to the operation of a rental vehicle business, including, but not limited to, a customer facility charge, airport concession fee, tourism commission assessment, vehicle license recovery fee, or other government-imposed taxes or fees.(d) Airport concession fee means a charge collected by a rental company from a renter that is the renters proportionate share of the amount paid by the rental company to the owner or operator of an airport for the right or privilege of conducting a vehicle rental business on the airports premises.(e) Authorized driver means all of the following:(1) The renter.(2) The renters spouse, if that person is a licensed driver and satisfies the rental companys minimum age requirement.(3) The renters employer or coworker, if the employer or coworker is engaged in business activity with the renter, is a licensed driver, and satisfies the rental companys minimum age requirement.(4) A person expressly listed by the rental company on that renters contract as an authorized driver.(f) Customer facility charge means any fee, including an alternative fee, required by an airport to be collected by a rental company from a renter pursuant to Section 50474.21 of the Government Code.(g) Damage waiver means a rental companys agreement not to hold a renter liable for all or any portion of any damage or loss related to the rented vehicle, any loss of use of the rented vehicle, or any storage, impound, towing, or administrative charges.(h) Electronic surveillance technology means a technological method or system used to observe, monitor, or collect information, including telematics, Global Positioning System (GPS), wireless technology, or location-based technologies. Electronic surveillance technology does not include event data recorders (EDR), sensing and diagnostic modules (SDM), or other systems that are used either: for any of the following purposes:(1) For the purpose of identifying, diagnosing, or monitoring functions related to the potential need to repair, service, or perform maintenance on the rental vehicle.(2) As part of the vehicles airbag sensing and diagnostic system in order to capture safety systems-related data for retrieval after a crash has occurred or in the event that the collision sensors are activated to prepare the decisionmaking computer to make the determination to deploy or not to deploy the airbag.(3) For the purpose of maintaining, managing, and protecting vehicles in the rental car fleet, or otherwise improving a customers experience during the rental car transaction, provided that all of the following conditions are met:(A) The purpose is clearly and conspicuously disclosed to the renter in the rental agreement.(B) Use of the information is otherwise permissible under the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100)).(C) Any personally identifiable information obtained from the rental vehicle is not retained or used after the rental vehicle is returned and the rental has concluded.(i) Estimated time for replacement means the number of hours of labor, or fraction thereof, needed to replace damaged vehicle parts as set forth in collision damage estimating guides generally used in the vehicle repair business and commonly known as crash books.(j) Estimated time for repair means a good faith estimate of the reasonable number of hours of labor, or fraction thereof, needed to repair damaged vehicle parts.(k) Membership program means a service offered by a rental company that permits customers to bypass the rental counter and go directly to the vehicle previously reserved or select an alternate vehicle. A membership program shall meet all of the following requirements:(1) The renter initiates enrollment by completing an application on which the renter can specify a preference for type of vehicle and acceptance or declination of optional services.(2) The rental company fully discloses, prior to the enrollees first rental as a participant in the program, all terms and conditions of the rental agreement as well as all required disclosures.(3) The renter may terminate enrollment at any time.(4) The rental company fully explains to the renter that designated preferences, as well as acceptance or declination of optional services, may be changed by the renter at any time for the next and future rentals.(5) An employee is available at the lot where the renter takes possession of the vehicle, to receive any change in the rental agreement from the renter.(l) Passenger vehicle or vehicle means a passenger vehicle as defined in Section 465 of the Vehicle Code.(m) Personal vehicle sharing program means a person or entity that for monetary compensation facilitates sharing or renting passenger vehicles to the public, including via a peer-to-peer internet website, application, or other platform that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration, and includes a personal vehicle sharing program as defined in Section 11580.24 of the Insurance Code.(n) Quote means an estimated cost of rental provided by a rental company or a third party to a potential customer that is based on information provided by the potential customer and used to generate an estimated cost of rental, including, but not limited to, potential dates of rental, locations, or classes of vehicle.(o) Tourism commission assessment means the charge collected by a rental company from a renter that has been established by the California Travel and Tourism Commission pursuant to Section 13995.65 of the Government Code.(p) Vehicle license fee means the tax imposed pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code).(q) Vehicle registration fee means any fee imposed pursuant to any provision of Chapter 6 (commencing with Section 9101) of Division 3 of the Vehicle Code or any other law that imposes a fee upon the registration of vehicles in this state.(r) Vehicle license recovery fee means a charge that seeks to recover the amount of any vehicle license fee and vehicle registration fee paid by a rental company for the particular class of vehicle being rented. If imposed, the vehicle license recovery fee shall be separately stated as a single charge in the quote and rental contract.SECTION 1.SEC. 2. 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 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 both of the following conditions are met:(A) An authorized driver returns the ignition key furnished by the rental 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.(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.SEC. 3. Section 1939.23 of the Civil Code is amended to read:1939.23. (a) A rental company shall not use, access, or obtain any information relating to the renters use of the rental vehicle that was obtained using electronic surveillance technology, except in the following circumstances:(1) (A) When the equipment is used by the rental company only for the purpose of locating a stolen, abandoned, or missing rental vehicle after one of the following:(i) The renter or law enforcement has informed the rental company that the vehicle is missing or has been stolen or abandoned.(ii) If the rental vehicle has not been returned following 24 hours after the contracted return date or by 24 hours following the end of an extension of that return date, the rental company may activate electronic surveillance technology. The rental company shall provide notice of activation of the electronic surveillance technology 24 hours before activation, by telephone and electronically pursuant to Section 1939.22, unless the renter has not provided a telephone number or the renter has not agreed to electronic communication pursuant to Section 1939.22. The rental or lease agreement shall advise the renter that electronic surveillance technology may be activated if the rental vehicle has not been returned within 24 hours after the contracted return date or extension of the return date. The renter shall acknowledge this advisement in the rental or lease agreement by initials. The advisement shall also be made orally to the renter at the time of executing the rental or lease agreement if the transaction is completed in person or by telephone. The advisements are not required to be made to members of the rental companys membership program executing a rental or lease agreement. However, a renter shall be given those advisements upon enrolling in the rental companys membership program.(iii) Notwithstanding clause (ii), if the rental vehicle has not been returned following one week after the contracted return date or by one week following the end of an extension of that return date.(iv) The rental company discovers the rental vehicle has been stolen or abandoned, and, if stolen, the rental company shall report the vehicle stolen to law enforcement by filing a stolen vehicle report, unless law enforcement has already informed the rental company that the vehicle is missing or has been stolen or abandoned.(v) The rental vehicle is the subject of an AMBER Alert issued pursuant to Section 8594 of the Government Code. If the rental company uses the equipment in connection with this provision relating to an AMBER Alert, the rental company shall notify law enforcement that one of the rental companys vehicles is the subject of an AMBER Alert upon becoming aware of the situation, unless law enforcement has already informed the rental company that the vehicle was the subject of an AMBER Alert.(B) If electronic surveillance technology is activated pursuant to subparagraph (A), a rental company shall maintain a record, in either electronic or written form, of information relevant to the activation of that technology. That information shall include the rental agreement, including the return date, and the date and time the electronic surveillance technology was activated. The record shall also include, if relevant, a record of written or other communication with the renter, including communications regarding extensions of the rental, police reports, or other written communication with law enforcement officials. The record shall be maintained for a period of at least 12 months from the time the record is created and shall be made available upon the renters request. The rental company shall maintain and furnish explanatory codes necessary to read the record. A rental company shall not be required to maintain a record if electronic surveillance technology is activated to recover a rental vehicle that is stolen or missing at a time other than during a rental period.(2) In response to a specific request from law enforcement pursuant to a subpoena or search warrant.(3) The rental company uses location-based technology, including, but not limited to, a geofence or other virtual perimeter, to detect the movement of a rental vehicle in either of the following circumstances:(A) The rental vehicle is moved outside of the country, if travel outside of the country is not authorized by the rental agreement.(B) The rental vehicle is moved into an impound or tow yard. If the vehicle remains within the perimeter of the impound or tow yard for 24 hours, the vehicle shall be deemed abandoned by the renter.(b) Subdivision (a) does not prohibit a rental company from equipping rental vehicles with any of the following:(1) GPS-based technology that provides navigation assistance to the occupants of the rental vehicle, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except for the purposes of discovering or repairing a defect in the technology and the information may then be used only for that purpose.(2) Electronic surveillance technology that allows for the remote locking or unlocking of the vehicle at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except as necessary to lock or unlock the vehicle.(3) Electronic surveillance technology that allows the company to provide roadside assistance, such as towing, flat tire, or fuel services, at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology except as necessary to provide the requested roadside assistance.(c) Subdivision (a) does not prohibit a rental company from obtaining, accessing, or using information from electronic surveillance technology for the sole purpose of determining the date and time the vehicle departs from and is returned to the rental company, and the total mileage driven and the vehicle fuel level of the returned vehicle. The information obtained or accessed from this electronic surveillance technology shall only be used for the purpose described in this subdivision.(d) A rental company shall not use electronic surveillance technology to track a renter in order to impose fines or surcharges relating to the renters use of the rental vehicle.

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 1939.01 of the Civil Code is amended to read:1939.01. For the purpose of this chapter, the following definitions shall apply:(a) Rental company means a person or entity in the business of renting passenger vehicles to the public.(b) Renter means any person in a manner obligated under a contract for the lease or hire of a passenger vehicle from a rental company for a period of less than 30 days.(c) Additional mandatory charges means any separately stated charges that the rental company requires the renter to pay to hire or lease the vehicle for the period of time to which the rental rate applies, which are imposed by a governmental entity and specifically relate to the operation of a rental vehicle business, including, but not limited to, a customer facility charge, airport concession fee, tourism commission assessment, vehicle license recovery fee, or other government-imposed taxes or fees.(d) Airport concession fee means a charge collected by a rental company from a renter that is the renters proportionate share of the amount paid by the rental company to the owner or operator of an airport for the right or privilege of conducting a vehicle rental business on the airports premises.(e) Authorized driver means all of the following:(1) The renter.(2) The renters spouse, if that person is a licensed driver and satisfies the rental companys minimum age requirement.(3) The renters employer or coworker, if the employer or coworker is engaged in business activity with the renter, is a licensed driver, and satisfies the rental companys minimum age requirement.(4) A person expressly listed by the rental company on that renters contract as an authorized driver.(f) Customer facility charge means any fee, including an alternative fee, required by an airport to be collected by a rental company from a renter pursuant to Section 50474.21 of the Government Code.(g) Damage waiver means a rental companys agreement not to hold a renter liable for all or any portion of any damage or loss related to the rented vehicle, any loss of use of the rented vehicle, or any storage, impound, towing, or administrative charges.(h) Electronic surveillance technology means a technological method or system used to observe, monitor, or collect information, including telematics, Global Positioning System (GPS), wireless technology, or location-based technologies. Electronic surveillance technology does not include event data recorders (EDR), sensing and diagnostic modules (SDM), or other systems that are used either: for any of the following purposes:(1) For the purpose of identifying, diagnosing, or monitoring functions related to the potential need to repair, service, or perform maintenance on the rental vehicle.(2) As part of the vehicles airbag sensing and diagnostic system in order to capture safety systems-related data for retrieval after a crash has occurred or in the event that the collision sensors are activated to prepare the decisionmaking computer to make the determination to deploy or not to deploy the airbag.(3) For the purpose of maintaining, managing, and protecting vehicles in the rental car fleet, or otherwise improving a customers experience during the rental car transaction, provided that all of the following conditions are met:(A) The purpose is clearly and conspicuously disclosed to the renter in the rental agreement.(B) Use of the information is otherwise permissible under the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100)).(C) Any personally identifiable information obtained from the rental vehicle is not retained or used after the rental vehicle is returned and the rental has concluded.(i) Estimated time for replacement means the number of hours of labor, or fraction thereof, needed to replace damaged vehicle parts as set forth in collision damage estimating guides generally used in the vehicle repair business and commonly known as crash books.(j) Estimated time for repair means a good faith estimate of the reasonable number of hours of labor, or fraction thereof, needed to repair damaged vehicle parts.(k) Membership program means a service offered by a rental company that permits customers to bypass the rental counter and go directly to the vehicle previously reserved or select an alternate vehicle. A membership program shall meet all of the following requirements:(1) The renter initiates enrollment by completing an application on which the renter can specify a preference for type of vehicle and acceptance or declination of optional services.(2) The rental company fully discloses, prior to the enrollees first rental as a participant in the program, all terms and conditions of the rental agreement as well as all required disclosures.(3) The renter may terminate enrollment at any time.(4) The rental company fully explains to the renter that designated preferences, as well as acceptance or declination of optional services, may be changed by the renter at any time for the next and future rentals.(5) An employee is available at the lot where the renter takes possession of the vehicle, to receive any change in the rental agreement from the renter.(l) Passenger vehicle or vehicle means a passenger vehicle as defined in Section 465 of the Vehicle Code.(m) Personal vehicle sharing program means a person or entity that for monetary compensation facilitates sharing or renting passenger vehicles to the public, including via a peer-to-peer internet website, application, or other platform that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration, and includes a personal vehicle sharing program as defined in Section 11580.24 of the Insurance Code.(n) Quote means an estimated cost of rental provided by a rental company or a third party to a potential customer that is based on information provided by the potential customer and used to generate an estimated cost of rental, including, but not limited to, potential dates of rental, locations, or classes of vehicle.(o) Tourism commission assessment means the charge collected by a rental company from a renter that has been established by the California Travel and Tourism Commission pursuant to Section 13995.65 of the Government Code.(p) Vehicle license fee means the tax imposed pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code).(q) Vehicle registration fee means any fee imposed pursuant to any provision of Chapter 6 (commencing with Section 9101) of Division 3 of the Vehicle Code or any other law that imposes a fee upon the registration of vehicles in this state.(r) Vehicle license recovery fee means a charge that seeks to recover the amount of any vehicle license fee and vehicle registration fee paid by a rental company for the particular class of vehicle being rented. If imposed, the vehicle license recovery fee shall be separately stated as a single charge in the quote and rental contract.

SECTION 1. Section 1939.01 of the Civil Code is amended to read:

### SECTION 1.

1939.01. For the purpose of this chapter, the following definitions shall apply:(a) Rental company means a person or entity in the business of renting passenger vehicles to the public.(b) Renter means any person in a manner obligated under a contract for the lease or hire of a passenger vehicle from a rental company for a period of less than 30 days.(c) Additional mandatory charges means any separately stated charges that the rental company requires the renter to pay to hire or lease the vehicle for the period of time to which the rental rate applies, which are imposed by a governmental entity and specifically relate to the operation of a rental vehicle business, including, but not limited to, a customer facility charge, airport concession fee, tourism commission assessment, vehicle license recovery fee, or other government-imposed taxes or fees.(d) Airport concession fee means a charge collected by a rental company from a renter that is the renters proportionate share of the amount paid by the rental company to the owner or operator of an airport for the right or privilege of conducting a vehicle rental business on the airports premises.(e) Authorized driver means all of the following:(1) The renter.(2) The renters spouse, if that person is a licensed driver and satisfies the rental companys minimum age requirement.(3) The renters employer or coworker, if the employer or coworker is engaged in business activity with the renter, is a licensed driver, and satisfies the rental companys minimum age requirement.(4) A person expressly listed by the rental company on that renters contract as an authorized driver.(f) Customer facility charge means any fee, including an alternative fee, required by an airport to be collected by a rental company from a renter pursuant to Section 50474.21 of the Government Code.(g) Damage waiver means a rental companys agreement not to hold a renter liable for all or any portion of any damage or loss related to the rented vehicle, any loss of use of the rented vehicle, or any storage, impound, towing, or administrative charges.(h) Electronic surveillance technology means a technological method or system used to observe, monitor, or collect information, including telematics, Global Positioning System (GPS), wireless technology, or location-based technologies. Electronic surveillance technology does not include event data recorders (EDR), sensing and diagnostic modules (SDM), or other systems that are used either: for any of the following purposes:(1) For the purpose of identifying, diagnosing, or monitoring functions related to the potential need to repair, service, or perform maintenance on the rental vehicle.(2) As part of the vehicles airbag sensing and diagnostic system in order to capture safety systems-related data for retrieval after a crash has occurred or in the event that the collision sensors are activated to prepare the decisionmaking computer to make the determination to deploy or not to deploy the airbag.(3) For the purpose of maintaining, managing, and protecting vehicles in the rental car fleet, or otherwise improving a customers experience during the rental car transaction, provided that all of the following conditions are met:(A) The purpose is clearly and conspicuously disclosed to the renter in the rental agreement.(B) Use of the information is otherwise permissible under the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100)).(C) Any personally identifiable information obtained from the rental vehicle is not retained or used after the rental vehicle is returned and the rental has concluded.(i) Estimated time for replacement means the number of hours of labor, or fraction thereof, needed to replace damaged vehicle parts as set forth in collision damage estimating guides generally used in the vehicle repair business and commonly known as crash books.(j) Estimated time for repair means a good faith estimate of the reasonable number of hours of labor, or fraction thereof, needed to repair damaged vehicle parts.(k) Membership program means a service offered by a rental company that permits customers to bypass the rental counter and go directly to the vehicle previously reserved or select an alternate vehicle. A membership program shall meet all of the following requirements:(1) The renter initiates enrollment by completing an application on which the renter can specify a preference for type of vehicle and acceptance or declination of optional services.(2) The rental company fully discloses, prior to the enrollees first rental as a participant in the program, all terms and conditions of the rental agreement as well as all required disclosures.(3) The renter may terminate enrollment at any time.(4) The rental company fully explains to the renter that designated preferences, as well as acceptance or declination of optional services, may be changed by the renter at any time for the next and future rentals.(5) An employee is available at the lot where the renter takes possession of the vehicle, to receive any change in the rental agreement from the renter.(l) Passenger vehicle or vehicle means a passenger vehicle as defined in Section 465 of the Vehicle Code.(m) Personal vehicle sharing program means a person or entity that for monetary compensation facilitates sharing or renting passenger vehicles to the public, including via a peer-to-peer internet website, application, or other platform that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration, and includes a personal vehicle sharing program as defined in Section 11580.24 of the Insurance Code.(n) Quote means an estimated cost of rental provided by a rental company or a third party to a potential customer that is based on information provided by the potential customer and used to generate an estimated cost of rental, including, but not limited to, potential dates of rental, locations, or classes of vehicle.(o) Tourism commission assessment means the charge collected by a rental company from a renter that has been established by the California Travel and Tourism Commission pursuant to Section 13995.65 of the Government Code.(p) Vehicle license fee means the tax imposed pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code).(q) Vehicle registration fee means any fee imposed pursuant to any provision of Chapter 6 (commencing with Section 9101) of Division 3 of the Vehicle Code or any other law that imposes a fee upon the registration of vehicles in this state.(r) Vehicle license recovery fee means a charge that seeks to recover the amount of any vehicle license fee and vehicle registration fee paid by a rental company for the particular class of vehicle being rented. If imposed, the vehicle license recovery fee shall be separately stated as a single charge in the quote and rental contract.

1939.01. For the purpose of this chapter, the following definitions shall apply:(a) Rental company means a person or entity in the business of renting passenger vehicles to the public.(b) Renter means any person in a manner obligated under a contract for the lease or hire of a passenger vehicle from a rental company for a period of less than 30 days.(c) Additional mandatory charges means any separately stated charges that the rental company requires the renter to pay to hire or lease the vehicle for the period of time to which the rental rate applies, which are imposed by a governmental entity and specifically relate to the operation of a rental vehicle business, including, but not limited to, a customer facility charge, airport concession fee, tourism commission assessment, vehicle license recovery fee, or other government-imposed taxes or fees.(d) Airport concession fee means a charge collected by a rental company from a renter that is the renters proportionate share of the amount paid by the rental company to the owner or operator of an airport for the right or privilege of conducting a vehicle rental business on the airports premises.(e) Authorized driver means all of the following:(1) The renter.(2) The renters spouse, if that person is a licensed driver and satisfies the rental companys minimum age requirement.(3) The renters employer or coworker, if the employer or coworker is engaged in business activity with the renter, is a licensed driver, and satisfies the rental companys minimum age requirement.(4) A person expressly listed by the rental company on that renters contract as an authorized driver.(f) Customer facility charge means any fee, including an alternative fee, required by an airport to be collected by a rental company from a renter pursuant to Section 50474.21 of the Government Code.(g) Damage waiver means a rental companys agreement not to hold a renter liable for all or any portion of any damage or loss related to the rented vehicle, any loss of use of the rented vehicle, or any storage, impound, towing, or administrative charges.(h) Electronic surveillance technology means a technological method or system used to observe, monitor, or collect information, including telematics, Global Positioning System (GPS), wireless technology, or location-based technologies. Electronic surveillance technology does not include event data recorders (EDR), sensing and diagnostic modules (SDM), or other systems that are used either: for any of the following purposes:(1) For the purpose of identifying, diagnosing, or monitoring functions related to the potential need to repair, service, or perform maintenance on the rental vehicle.(2) As part of the vehicles airbag sensing and diagnostic system in order to capture safety systems-related data for retrieval after a crash has occurred or in the event that the collision sensors are activated to prepare the decisionmaking computer to make the determination to deploy or not to deploy the airbag.(3) For the purpose of maintaining, managing, and protecting vehicles in the rental car fleet, or otherwise improving a customers experience during the rental car transaction, provided that all of the following conditions are met:(A) The purpose is clearly and conspicuously disclosed to the renter in the rental agreement.(B) Use of the information is otherwise permissible under the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100)).(C) Any personally identifiable information obtained from the rental vehicle is not retained or used after the rental vehicle is returned and the rental has concluded.(i) Estimated time for replacement means the number of hours of labor, or fraction thereof, needed to replace damaged vehicle parts as set forth in collision damage estimating guides generally used in the vehicle repair business and commonly known as crash books.(j) Estimated time for repair means a good faith estimate of the reasonable number of hours of labor, or fraction thereof, needed to repair damaged vehicle parts.(k) Membership program means a service offered by a rental company that permits customers to bypass the rental counter and go directly to the vehicle previously reserved or select an alternate vehicle. A membership program shall meet all of the following requirements:(1) The renter initiates enrollment by completing an application on which the renter can specify a preference for type of vehicle and acceptance or declination of optional services.(2) The rental company fully discloses, prior to the enrollees first rental as a participant in the program, all terms and conditions of the rental agreement as well as all required disclosures.(3) The renter may terminate enrollment at any time.(4) The rental company fully explains to the renter that designated preferences, as well as acceptance or declination of optional services, may be changed by the renter at any time for the next and future rentals.(5) An employee is available at the lot where the renter takes possession of the vehicle, to receive any change in the rental agreement from the renter.(l) Passenger vehicle or vehicle means a passenger vehicle as defined in Section 465 of the Vehicle Code.(m) Personal vehicle sharing program means a person or entity that for monetary compensation facilitates sharing or renting passenger vehicles to the public, including via a peer-to-peer internet website, application, or other platform that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration, and includes a personal vehicle sharing program as defined in Section 11580.24 of the Insurance Code.(n) Quote means an estimated cost of rental provided by a rental company or a third party to a potential customer that is based on information provided by the potential customer and used to generate an estimated cost of rental, including, but not limited to, potential dates of rental, locations, or classes of vehicle.(o) Tourism commission assessment means the charge collected by a rental company from a renter that has been established by the California Travel and Tourism Commission pursuant to Section 13995.65 of the Government Code.(p) Vehicle license fee means the tax imposed pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code).(q) Vehicle registration fee means any fee imposed pursuant to any provision of Chapter 6 (commencing with Section 9101) of Division 3 of the Vehicle Code or any other law that imposes a fee upon the registration of vehicles in this state.(r) Vehicle license recovery fee means a charge that seeks to recover the amount of any vehicle license fee and vehicle registration fee paid by a rental company for the particular class of vehicle being rented. If imposed, the vehicle license recovery fee shall be separately stated as a single charge in the quote and rental contract.

1939.01. For the purpose of this chapter, the following definitions shall apply:(a) Rental company means a person or entity in the business of renting passenger vehicles to the public.(b) Renter means any person in a manner obligated under a contract for the lease or hire of a passenger vehicle from a rental company for a period of less than 30 days.(c) Additional mandatory charges means any separately stated charges that the rental company requires the renter to pay to hire or lease the vehicle for the period of time to which the rental rate applies, which are imposed by a governmental entity and specifically relate to the operation of a rental vehicle business, including, but not limited to, a customer facility charge, airport concession fee, tourism commission assessment, vehicle license recovery fee, or other government-imposed taxes or fees.(d) Airport concession fee means a charge collected by a rental company from a renter that is the renters proportionate share of the amount paid by the rental company to the owner or operator of an airport for the right or privilege of conducting a vehicle rental business on the airports premises.(e) Authorized driver means all of the following:(1) The renter.(2) The renters spouse, if that person is a licensed driver and satisfies the rental companys minimum age requirement.(3) The renters employer or coworker, if the employer or coworker is engaged in business activity with the renter, is a licensed driver, and satisfies the rental companys minimum age requirement.(4) A person expressly listed by the rental company on that renters contract as an authorized driver.(f) Customer facility charge means any fee, including an alternative fee, required by an airport to be collected by a rental company from a renter pursuant to Section 50474.21 of the Government Code.(g) Damage waiver means a rental companys agreement not to hold a renter liable for all or any portion of any damage or loss related to the rented vehicle, any loss of use of the rented vehicle, or any storage, impound, towing, or administrative charges.(h) Electronic surveillance technology means a technological method or system used to observe, monitor, or collect information, including telematics, Global Positioning System (GPS), wireless technology, or location-based technologies. Electronic surveillance technology does not include event data recorders (EDR), sensing and diagnostic modules (SDM), or other systems that are used either: for any of the following purposes:(1) For the purpose of identifying, diagnosing, or monitoring functions related to the potential need to repair, service, or perform maintenance on the rental vehicle.(2) As part of the vehicles airbag sensing and diagnostic system in order to capture safety systems-related data for retrieval after a crash has occurred or in the event that the collision sensors are activated to prepare the decisionmaking computer to make the determination to deploy or not to deploy the airbag.(3) For the purpose of maintaining, managing, and protecting vehicles in the rental car fleet, or otherwise improving a customers experience during the rental car transaction, provided that all of the following conditions are met:(A) The purpose is clearly and conspicuously disclosed to the renter in the rental agreement.(B) Use of the information is otherwise permissible under the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100)).(C) Any personally identifiable information obtained from the rental vehicle is not retained or used after the rental vehicle is returned and the rental has concluded.(i) Estimated time for replacement means the number of hours of labor, or fraction thereof, needed to replace damaged vehicle parts as set forth in collision damage estimating guides generally used in the vehicle repair business and commonly known as crash books.(j) Estimated time for repair means a good faith estimate of the reasonable number of hours of labor, or fraction thereof, needed to repair damaged vehicle parts.(k) Membership program means a service offered by a rental company that permits customers to bypass the rental counter and go directly to the vehicle previously reserved or select an alternate vehicle. A membership program shall meet all of the following requirements:(1) The renter initiates enrollment by completing an application on which the renter can specify a preference for type of vehicle and acceptance or declination of optional services.(2) The rental company fully discloses, prior to the enrollees first rental as a participant in the program, all terms and conditions of the rental agreement as well as all required disclosures.(3) The renter may terminate enrollment at any time.(4) The rental company fully explains to the renter that designated preferences, as well as acceptance or declination of optional services, may be changed by the renter at any time for the next and future rentals.(5) An employee is available at the lot where the renter takes possession of the vehicle, to receive any change in the rental agreement from the renter.(l) Passenger vehicle or vehicle means a passenger vehicle as defined in Section 465 of the Vehicle Code.(m) Personal vehicle sharing program means a person or entity that for monetary compensation facilitates sharing or renting passenger vehicles to the public, including via a peer-to-peer internet website, application, or other platform that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration, and includes a personal vehicle sharing program as defined in Section 11580.24 of the Insurance Code.(n) Quote means an estimated cost of rental provided by a rental company or a third party to a potential customer that is based on information provided by the potential customer and used to generate an estimated cost of rental, including, but not limited to, potential dates of rental, locations, or classes of vehicle.(o) Tourism commission assessment means the charge collected by a rental company from a renter that has been established by the California Travel and Tourism Commission pursuant to Section 13995.65 of the Government Code.(p) Vehicle license fee means the tax imposed pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code).(q) Vehicle registration fee means any fee imposed pursuant to any provision of Chapter 6 (commencing with Section 9101) of Division 3 of the Vehicle Code or any other law that imposes a fee upon the registration of vehicles in this state.(r) Vehicle license recovery fee means a charge that seeks to recover the amount of any vehicle license fee and vehicle registration fee paid by a rental company for the particular class of vehicle being rented. If imposed, the vehicle license recovery fee shall be separately stated as a single charge in the quote and rental contract.



1939.01. For the purpose of this chapter, the following definitions shall apply:

(a) Rental company means a person or entity in the business of renting passenger vehicles to the public.

(b) Renter means any person in a manner obligated under a contract for the lease or hire of a passenger vehicle from a rental company for a period of less than 30 days.

(c) Additional mandatory charges means any separately stated charges that the rental company requires the renter to pay to hire or lease the vehicle for the period of time to which the rental rate applies, which are imposed by a governmental entity and specifically relate to the operation of a rental vehicle business, including, but not limited to, a customer facility charge, airport concession fee, tourism commission assessment, vehicle license recovery fee, or other government-imposed taxes or fees.

(d) Airport concession fee means a charge collected by a rental company from a renter that is the renters proportionate share of the amount paid by the rental company to the owner or operator of an airport for the right or privilege of conducting a vehicle rental business on the airports premises.

(e) Authorized driver means all of the following:

(1) The renter.

(2) The renters spouse, if that person is a licensed driver and satisfies the rental companys minimum age requirement.

(3) The renters employer or coworker, if the employer or coworker is engaged in business activity with the renter, is a licensed driver, and satisfies the rental companys minimum age requirement.

(4) A person expressly listed by the rental company on that renters contract as an authorized driver.

(f) Customer facility charge means any fee, including an alternative fee, required by an airport to be collected by a rental company from a renter pursuant to Section 50474.21 of the Government Code.

(g) Damage waiver means a rental companys agreement not to hold a renter liable for all or any portion of any damage or loss related to the rented vehicle, any loss of use of the rented vehicle, or any storage, impound, towing, or administrative charges.

(h) Electronic surveillance technology means a technological method or system used to observe, monitor, or collect information, including telematics, Global Positioning System (GPS), wireless technology, or location-based technologies. Electronic surveillance technology does not include event data recorders (EDR), sensing and diagnostic modules (SDM), or other systems that are used either: for any of the following purposes:

(1) For the purpose of identifying, diagnosing, or monitoring functions related to the potential need to repair, service, or perform maintenance on the rental vehicle.

(2) As part of the vehicles airbag sensing and diagnostic system in order to capture safety systems-related data for retrieval after a crash has occurred or in the event that the collision sensors are activated to prepare the decisionmaking computer to make the determination to deploy or not to deploy the airbag.

(3) For the purpose of maintaining, managing, and protecting vehicles in the rental car fleet, or otherwise improving a customers experience during the rental car transaction, provided that all of the following conditions are met:

(A) The purpose is clearly and conspicuously disclosed to the renter in the rental agreement.

(B) Use of the information is otherwise permissible under the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100)).

(C) Any personally identifiable information obtained from the rental vehicle is not retained or used after the rental vehicle is returned and the rental has concluded.

(i) Estimated time for replacement means the number of hours of labor, or fraction thereof, needed to replace damaged vehicle parts as set forth in collision damage estimating guides generally used in the vehicle repair business and commonly known as crash books.

(j) Estimated time for repair means a good faith estimate of the reasonable number of hours of labor, or fraction thereof, needed to repair damaged vehicle parts.

(k) Membership program means a service offered by a rental company that permits customers to bypass the rental counter and go directly to the vehicle previously reserved or select an alternate vehicle. A membership program shall meet all of the following requirements:

(1) The renter initiates enrollment by completing an application on which the renter can specify a preference for type of vehicle and acceptance or declination of optional services.

(2) The rental company fully discloses, prior to the enrollees first rental as a participant in the program, all terms and conditions of the rental agreement as well as all required disclosures.

(3) The renter may terminate enrollment at any time.

(4) The rental company fully explains to the renter that designated preferences, as well as acceptance or declination of optional services, may be changed by the renter at any time for the next and future rentals.

(5) An employee is available at the lot where the renter takes possession of the vehicle, to receive any change in the rental agreement from the renter.

(l) Passenger vehicle or vehicle means a passenger vehicle as defined in Section 465 of the Vehicle Code.

(m) Personal vehicle sharing program means a person or entity that for monetary compensation facilitates sharing or renting passenger vehicles to the public, including via a peer-to-peer internet website, application, or other platform that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration, and includes a personal vehicle sharing program as defined in Section 11580.24 of the Insurance Code.

(n) Quote means an estimated cost of rental provided by a rental company or a third party to a potential customer that is based on information provided by the potential customer and used to generate an estimated cost of rental, including, but not limited to, potential dates of rental, locations, or classes of vehicle.

(o) Tourism commission assessment means the charge collected by a rental company from a renter that has been established by the California Travel and Tourism Commission pursuant to Section 13995.65 of the Government Code.

(p) Vehicle license fee means the tax imposed pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code).

(q) Vehicle registration fee means any fee imposed pursuant to any provision of Chapter 6 (commencing with Section 9101) of Division 3 of the Vehicle Code or any other law that imposes a fee upon the registration of vehicles in this state.

(r) Vehicle license recovery fee means a charge that seeks to recover the amount of any vehicle license fee and vehicle registration fee paid by a rental company for the particular class of vehicle being rented. If imposed, the vehicle license recovery fee shall be separately stated as a single charge in the quote and rental contract.

SECTION 1.SEC. 2. 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 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 both of the following conditions are met:(A) An authorized driver returns the ignition key furnished by the rental 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.(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.SEC. 2. Section 1939.03 of the Civil Code is amended to read:

### SECTION 1.SEC. 2.

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 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 both of the following conditions are met:(A) An authorized driver returns the ignition key furnished by the rental 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.(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 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 both of the following conditions are met:(A) An authorized driver returns the ignition key furnished by the rental 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.(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 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 both of the following conditions are met:(A) An authorized driver returns the ignition key furnished by the rental 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.(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 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 both of the following conditions are met:

(A) An authorized driver returns the ignition key furnished by the rental 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.

(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.

SEC. 3. Section 1939.23 of the Civil Code is amended to read:1939.23. (a) A rental company shall not use, access, or obtain any information relating to the renters use of the rental vehicle that was obtained using electronic surveillance technology, except in the following circumstances:(1) (A) When the equipment is used by the rental company only for the purpose of locating a stolen, abandoned, or missing rental vehicle after one of the following:(i) The renter or law enforcement has informed the rental company that the vehicle is missing or has been stolen or abandoned.(ii) If the rental vehicle has not been returned following 24 hours after the contracted return date or by 24 hours following the end of an extension of that return date, the rental company may activate electronic surveillance technology. The rental company shall provide notice of activation of the electronic surveillance technology 24 hours before activation, by telephone and electronically pursuant to Section 1939.22, unless the renter has not provided a telephone number or the renter has not agreed to electronic communication pursuant to Section 1939.22. The rental or lease agreement shall advise the renter that electronic surveillance technology may be activated if the rental vehicle has not been returned within 24 hours after the contracted return date or extension of the return date. The renter shall acknowledge this advisement in the rental or lease agreement by initials. The advisement shall also be made orally to the renter at the time of executing the rental or lease agreement if the transaction is completed in person or by telephone. The advisements are not required to be made to members of the rental companys membership program executing a rental or lease agreement. However, a renter shall be given those advisements upon enrolling in the rental companys membership program.(iii) Notwithstanding clause (ii), if the rental vehicle has not been returned following one week after the contracted return date or by one week following the end of an extension of that return date.(iv) The rental company discovers the rental vehicle has been stolen or abandoned, and, if stolen, the rental company shall report the vehicle stolen to law enforcement by filing a stolen vehicle report, unless law enforcement has already informed the rental company that the vehicle is missing or has been stolen or abandoned.(v) The rental vehicle is the subject of an AMBER Alert issued pursuant to Section 8594 of the Government Code. If the rental company uses the equipment in connection with this provision relating to an AMBER Alert, the rental company shall notify law enforcement that one of the rental companys vehicles is the subject of an AMBER Alert upon becoming aware of the situation, unless law enforcement has already informed the rental company that the vehicle was the subject of an AMBER Alert.(B) If electronic surveillance technology is activated pursuant to subparagraph (A), a rental company shall maintain a record, in either electronic or written form, of information relevant to the activation of that technology. That information shall include the rental agreement, including the return date, and the date and time the electronic surveillance technology was activated. The record shall also include, if relevant, a record of written or other communication with the renter, including communications regarding extensions of the rental, police reports, or other written communication with law enforcement officials. The record shall be maintained for a period of at least 12 months from the time the record is created and shall be made available upon the renters request. The rental company shall maintain and furnish explanatory codes necessary to read the record. A rental company shall not be required to maintain a record if electronic surveillance technology is activated to recover a rental vehicle that is stolen or missing at a time other than during a rental period.(2) In response to a specific request from law enforcement pursuant to a subpoena or search warrant.(3) The rental company uses location-based technology, including, but not limited to, a geofence or other virtual perimeter, to detect the movement of a rental vehicle in either of the following circumstances:(A) The rental vehicle is moved outside of the country, if travel outside of the country is not authorized by the rental agreement.(B) The rental vehicle is moved into an impound or tow yard. If the vehicle remains within the perimeter of the impound or tow yard for 24 hours, the vehicle shall be deemed abandoned by the renter.(b) Subdivision (a) does not prohibit a rental company from equipping rental vehicles with any of the following:(1) GPS-based technology that provides navigation assistance to the occupants of the rental vehicle, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except for the purposes of discovering or repairing a defect in the technology and the information may then be used only for that purpose.(2) Electronic surveillance technology that allows for the remote locking or unlocking of the vehicle at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except as necessary to lock or unlock the vehicle.(3) Electronic surveillance technology that allows the company to provide roadside assistance, such as towing, flat tire, or fuel services, at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology except as necessary to provide the requested roadside assistance.(c) Subdivision (a) does not prohibit a rental company from obtaining, accessing, or using information from electronic surveillance technology for the sole purpose of determining the date and time the vehicle departs from and is returned to the rental company, and the total mileage driven and the vehicle fuel level of the returned vehicle. The information obtained or accessed from this electronic surveillance technology shall only be used for the purpose described in this subdivision.(d) A rental company shall not use electronic surveillance technology to track a renter in order to impose fines or surcharges relating to the renters use of the rental vehicle.

SEC. 3. Section 1939.23 of the Civil Code is amended to read:

### SEC. 3.

1939.23. (a) A rental company shall not use, access, or obtain any information relating to the renters use of the rental vehicle that was obtained using electronic surveillance technology, except in the following circumstances:(1) (A) When the equipment is used by the rental company only for the purpose of locating a stolen, abandoned, or missing rental vehicle after one of the following:(i) The renter or law enforcement has informed the rental company that the vehicle is missing or has been stolen or abandoned.(ii) If the rental vehicle has not been returned following 24 hours after the contracted return date or by 24 hours following the end of an extension of that return date, the rental company may activate electronic surveillance technology. The rental company shall provide notice of activation of the electronic surveillance technology 24 hours before activation, by telephone and electronically pursuant to Section 1939.22, unless the renter has not provided a telephone number or the renter has not agreed to electronic communication pursuant to Section 1939.22. The rental or lease agreement shall advise the renter that electronic surveillance technology may be activated if the rental vehicle has not been returned within 24 hours after the contracted return date or extension of the return date. The renter shall acknowledge this advisement in the rental or lease agreement by initials. The advisement shall also be made orally to the renter at the time of executing the rental or lease agreement if the transaction is completed in person or by telephone. The advisements are not required to be made to members of the rental companys membership program executing a rental or lease agreement. However, a renter shall be given those advisements upon enrolling in the rental companys membership program.(iii) Notwithstanding clause (ii), if the rental vehicle has not been returned following one week after the contracted return date or by one week following the end of an extension of that return date.(iv) The rental company discovers the rental vehicle has been stolen or abandoned, and, if stolen, the rental company shall report the vehicle stolen to law enforcement by filing a stolen vehicle report, unless law enforcement has already informed the rental company that the vehicle is missing or has been stolen or abandoned.(v) The rental vehicle is the subject of an AMBER Alert issued pursuant to Section 8594 of the Government Code. If the rental company uses the equipment in connection with this provision relating to an AMBER Alert, the rental company shall notify law enforcement that one of the rental companys vehicles is the subject of an AMBER Alert upon becoming aware of the situation, unless law enforcement has already informed the rental company that the vehicle was the subject of an AMBER Alert.(B) If electronic surveillance technology is activated pursuant to subparagraph (A), a rental company shall maintain a record, in either electronic or written form, of information relevant to the activation of that technology. That information shall include the rental agreement, including the return date, and the date and time the electronic surveillance technology was activated. The record shall also include, if relevant, a record of written or other communication with the renter, including communications regarding extensions of the rental, police reports, or other written communication with law enforcement officials. The record shall be maintained for a period of at least 12 months from the time the record is created and shall be made available upon the renters request. The rental company shall maintain and furnish explanatory codes necessary to read the record. A rental company shall not be required to maintain a record if electronic surveillance technology is activated to recover a rental vehicle that is stolen or missing at a time other than during a rental period.(2) In response to a specific request from law enforcement pursuant to a subpoena or search warrant.(3) The rental company uses location-based technology, including, but not limited to, a geofence or other virtual perimeter, to detect the movement of a rental vehicle in either of the following circumstances:(A) The rental vehicle is moved outside of the country, if travel outside of the country is not authorized by the rental agreement.(B) The rental vehicle is moved into an impound or tow yard. If the vehicle remains within the perimeter of the impound or tow yard for 24 hours, the vehicle shall be deemed abandoned by the renter.(b) Subdivision (a) does not prohibit a rental company from equipping rental vehicles with any of the following:(1) GPS-based technology that provides navigation assistance to the occupants of the rental vehicle, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except for the purposes of discovering or repairing a defect in the technology and the information may then be used only for that purpose.(2) Electronic surveillance technology that allows for the remote locking or unlocking of the vehicle at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except as necessary to lock or unlock the vehicle.(3) Electronic surveillance technology that allows the company to provide roadside assistance, such as towing, flat tire, or fuel services, at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology except as necessary to provide the requested roadside assistance.(c) Subdivision (a) does not prohibit a rental company from obtaining, accessing, or using information from electronic surveillance technology for the sole purpose of determining the date and time the vehicle departs from and is returned to the rental company, and the total mileage driven and the vehicle fuel level of the returned vehicle. The information obtained or accessed from this electronic surveillance technology shall only be used for the purpose described in this subdivision.(d) A rental company shall not use electronic surveillance technology to track a renter in order to impose fines or surcharges relating to the renters use of the rental vehicle.

1939.23. (a) A rental company shall not use, access, or obtain any information relating to the renters use of the rental vehicle that was obtained using electronic surveillance technology, except in the following circumstances:(1) (A) When the equipment is used by the rental company only for the purpose of locating a stolen, abandoned, or missing rental vehicle after one of the following:(i) The renter or law enforcement has informed the rental company that the vehicle is missing or has been stolen or abandoned.(ii) If the rental vehicle has not been returned following 24 hours after the contracted return date or by 24 hours following the end of an extension of that return date, the rental company may activate electronic surveillance technology. The rental company shall provide notice of activation of the electronic surveillance technology 24 hours before activation, by telephone and electronically pursuant to Section 1939.22, unless the renter has not provided a telephone number or the renter has not agreed to electronic communication pursuant to Section 1939.22. The rental or lease agreement shall advise the renter that electronic surveillance technology may be activated if the rental vehicle has not been returned within 24 hours after the contracted return date or extension of the return date. The renter shall acknowledge this advisement in the rental or lease agreement by initials. The advisement shall also be made orally to the renter at the time of executing the rental or lease agreement if the transaction is completed in person or by telephone. The advisements are not required to be made to members of the rental companys membership program executing a rental or lease agreement. However, a renter shall be given those advisements upon enrolling in the rental companys membership program.(iii) Notwithstanding clause (ii), if the rental vehicle has not been returned following one week after the contracted return date or by one week following the end of an extension of that return date.(iv) The rental company discovers the rental vehicle has been stolen or abandoned, and, if stolen, the rental company shall report the vehicle stolen to law enforcement by filing a stolen vehicle report, unless law enforcement has already informed the rental company that the vehicle is missing or has been stolen or abandoned.(v) The rental vehicle is the subject of an AMBER Alert issued pursuant to Section 8594 of the Government Code. If the rental company uses the equipment in connection with this provision relating to an AMBER Alert, the rental company shall notify law enforcement that one of the rental companys vehicles is the subject of an AMBER Alert upon becoming aware of the situation, unless law enforcement has already informed the rental company that the vehicle was the subject of an AMBER Alert.(B) If electronic surveillance technology is activated pursuant to subparagraph (A), a rental company shall maintain a record, in either electronic or written form, of information relevant to the activation of that technology. That information shall include the rental agreement, including the return date, and the date and time the electronic surveillance technology was activated. The record shall also include, if relevant, a record of written or other communication with the renter, including communications regarding extensions of the rental, police reports, or other written communication with law enforcement officials. The record shall be maintained for a period of at least 12 months from the time the record is created and shall be made available upon the renters request. The rental company shall maintain and furnish explanatory codes necessary to read the record. A rental company shall not be required to maintain a record if electronic surveillance technology is activated to recover a rental vehicle that is stolen or missing at a time other than during a rental period.(2) In response to a specific request from law enforcement pursuant to a subpoena or search warrant.(3) The rental company uses location-based technology, including, but not limited to, a geofence or other virtual perimeter, to detect the movement of a rental vehicle in either of the following circumstances:(A) The rental vehicle is moved outside of the country, if travel outside of the country is not authorized by the rental agreement.(B) The rental vehicle is moved into an impound or tow yard. If the vehicle remains within the perimeter of the impound or tow yard for 24 hours, the vehicle shall be deemed abandoned by the renter.(b) Subdivision (a) does not prohibit a rental company from equipping rental vehicles with any of the following:(1) GPS-based technology that provides navigation assistance to the occupants of the rental vehicle, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except for the purposes of discovering or repairing a defect in the technology and the information may then be used only for that purpose.(2) Electronic surveillance technology that allows for the remote locking or unlocking of the vehicle at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except as necessary to lock or unlock the vehicle.(3) Electronic surveillance technology that allows the company to provide roadside assistance, such as towing, flat tire, or fuel services, at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology except as necessary to provide the requested roadside assistance.(c) Subdivision (a) does not prohibit a rental company from obtaining, accessing, or using information from electronic surveillance technology for the sole purpose of determining the date and time the vehicle departs from and is returned to the rental company, and the total mileage driven and the vehicle fuel level of the returned vehicle. The information obtained or accessed from this electronic surveillance technology shall only be used for the purpose described in this subdivision.(d) A rental company shall not use electronic surveillance technology to track a renter in order to impose fines or surcharges relating to the renters use of the rental vehicle.

1939.23. (a) A rental company shall not use, access, or obtain any information relating to the renters use of the rental vehicle that was obtained using electronic surveillance technology, except in the following circumstances:(1) (A) When the equipment is used by the rental company only for the purpose of locating a stolen, abandoned, or missing rental vehicle after one of the following:(i) The renter or law enforcement has informed the rental company that the vehicle is missing or has been stolen or abandoned.(ii) If the rental vehicle has not been returned following 24 hours after the contracted return date or by 24 hours following the end of an extension of that return date, the rental company may activate electronic surveillance technology. The rental company shall provide notice of activation of the electronic surveillance technology 24 hours before activation, by telephone and electronically pursuant to Section 1939.22, unless the renter has not provided a telephone number or the renter has not agreed to electronic communication pursuant to Section 1939.22. The rental or lease agreement shall advise the renter that electronic surveillance technology may be activated if the rental vehicle has not been returned within 24 hours after the contracted return date or extension of the return date. The renter shall acknowledge this advisement in the rental or lease agreement by initials. The advisement shall also be made orally to the renter at the time of executing the rental or lease agreement if the transaction is completed in person or by telephone. The advisements are not required to be made to members of the rental companys membership program executing a rental or lease agreement. However, a renter shall be given those advisements upon enrolling in the rental companys membership program.(iii) Notwithstanding clause (ii), if the rental vehicle has not been returned following one week after the contracted return date or by one week following the end of an extension of that return date.(iv) The rental company discovers the rental vehicle has been stolen or abandoned, and, if stolen, the rental company shall report the vehicle stolen to law enforcement by filing a stolen vehicle report, unless law enforcement has already informed the rental company that the vehicle is missing or has been stolen or abandoned.(v) The rental vehicle is the subject of an AMBER Alert issued pursuant to Section 8594 of the Government Code. If the rental company uses the equipment in connection with this provision relating to an AMBER Alert, the rental company shall notify law enforcement that one of the rental companys vehicles is the subject of an AMBER Alert upon becoming aware of the situation, unless law enforcement has already informed the rental company that the vehicle was the subject of an AMBER Alert.(B) If electronic surveillance technology is activated pursuant to subparagraph (A), a rental company shall maintain a record, in either electronic or written form, of information relevant to the activation of that technology. That information shall include the rental agreement, including the return date, and the date and time the electronic surveillance technology was activated. The record shall also include, if relevant, a record of written or other communication with the renter, including communications regarding extensions of the rental, police reports, or other written communication with law enforcement officials. The record shall be maintained for a period of at least 12 months from the time the record is created and shall be made available upon the renters request. The rental company shall maintain and furnish explanatory codes necessary to read the record. A rental company shall not be required to maintain a record if electronic surveillance technology is activated to recover a rental vehicle that is stolen or missing at a time other than during a rental period.(2) In response to a specific request from law enforcement pursuant to a subpoena or search warrant.(3) The rental company uses location-based technology, including, but not limited to, a geofence or other virtual perimeter, to detect the movement of a rental vehicle in either of the following circumstances:(A) The rental vehicle is moved outside of the country, if travel outside of the country is not authorized by the rental agreement.(B) The rental vehicle is moved into an impound or tow yard. If the vehicle remains within the perimeter of the impound or tow yard for 24 hours, the vehicle shall be deemed abandoned by the renter.(b) Subdivision (a) does not prohibit a rental company from equipping rental vehicles with any of the following:(1) GPS-based technology that provides navigation assistance to the occupants of the rental vehicle, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except for the purposes of discovering or repairing a defect in the technology and the information may then be used only for that purpose.(2) Electronic surveillance technology that allows for the remote locking or unlocking of the vehicle at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except as necessary to lock or unlock the vehicle.(3) Electronic surveillance technology that allows the company to provide roadside assistance, such as towing, flat tire, or fuel services, at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology except as necessary to provide the requested roadside assistance.(c) Subdivision (a) does not prohibit a rental company from obtaining, accessing, or using information from electronic surveillance technology for the sole purpose of determining the date and time the vehicle departs from and is returned to the rental company, and the total mileage driven and the vehicle fuel level of the returned vehicle. The information obtained or accessed from this electronic surveillance technology shall only be used for the purpose described in this subdivision.(d) A rental company shall not use electronic surveillance technology to track a renter in order to impose fines or surcharges relating to the renters use of the rental vehicle.



1939.23. (a) A rental company shall not use, access, or obtain any information relating to the renters use of the rental vehicle that was obtained using electronic surveillance technology, except in the following circumstances:

(1) (A) When the equipment is used by the rental company only for the purpose of locating a stolen, abandoned, or missing rental vehicle after one of the following:

(i) The renter or law enforcement has informed the rental company that the vehicle is missing or has been stolen or abandoned.

(ii) If the rental vehicle has not been returned following 24 hours after the contracted return date or by 24 hours following the end of an extension of that return date, the rental company may activate electronic surveillance technology. The rental company shall provide notice of activation of the electronic surveillance technology 24 hours before activation, by telephone and electronically pursuant to Section 1939.22, unless the renter has not provided a telephone number or the renter has not agreed to electronic communication pursuant to Section 1939.22. The rental or lease agreement shall advise the renter that electronic surveillance technology may be activated if the rental vehicle has not been returned within 24 hours after the contracted return date or extension of the return date. The renter shall acknowledge this advisement in the rental or lease agreement by initials. The advisement shall also be made orally to the renter at the time of executing the rental or lease agreement if the transaction is completed in person or by telephone. The advisements are not required to be made to members of the rental companys membership program executing a rental or lease agreement. However, a renter shall be given those advisements upon enrolling in the rental companys membership program.

(iii) Notwithstanding clause (ii), if the rental vehicle has not been returned following one week after the contracted return date or by one week following the end of an extension of that return date.

(iv) The rental company discovers the rental vehicle has been stolen or abandoned, and, if stolen, the rental company shall report the vehicle stolen to law enforcement by filing a stolen vehicle report, unless law enforcement has already informed the rental company that the vehicle is missing or has been stolen or abandoned.

(v) The rental vehicle is the subject of an AMBER Alert issued pursuant to Section 8594 of the Government Code. If the rental company uses the equipment in connection with this provision relating to an AMBER Alert, the rental company shall notify law enforcement that one of the rental companys vehicles is the subject of an AMBER Alert upon becoming aware of the situation, unless law enforcement has already informed the rental company that the vehicle was the subject of an AMBER Alert.

(B) If electronic surveillance technology is activated pursuant to subparagraph (A), a rental company shall maintain a record, in either electronic or written form, of information relevant to the activation of that technology. That information shall include the rental agreement, including the return date, and the date and time the electronic surveillance technology was activated. The record shall also include, if relevant, a record of written or other communication with the renter, including communications regarding extensions of the rental, police reports, or other written communication with law enforcement officials. The record shall be maintained for a period of at least 12 months from the time the record is created and shall be made available upon the renters request. The rental company shall maintain and furnish explanatory codes necessary to read the record. A rental company shall not be required to maintain a record if electronic surveillance technology is activated to recover a rental vehicle that is stolen or missing at a time other than during a rental period.

(2) In response to a specific request from law enforcement pursuant to a subpoena or search warrant.

(3) The rental company uses location-based technology, including, but not limited to, a geofence or other virtual perimeter, to detect the movement of a rental vehicle in either of the following circumstances:

(A) The rental vehicle is moved outside of the country, if travel outside of the country is not authorized by the rental agreement.

(B) The rental vehicle is moved into an impound or tow yard. If the vehicle remains within the perimeter of the impound or tow yard for 24 hours, the vehicle shall be deemed abandoned by the renter.

(b) Subdivision (a) does not prohibit a rental company from equipping rental vehicles with any of the following:

(1) GPS-based technology that provides navigation assistance to the occupants of the rental vehicle, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except for the purposes of discovering or repairing a defect in the technology and the information may then be used only for that purpose.

(2) Electronic surveillance technology that allows for the remote locking or unlocking of the vehicle at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology, except as necessary to lock or unlock the vehicle.

(3) Electronic surveillance technology that allows the company to provide roadside assistance, such as towing, flat tire, or fuel services, at the request of the renter, if the rental company does not use, access, or obtain information relating to the renters use of the rental vehicle that was obtained using that technology except as necessary to provide the requested roadside assistance.

(c) Subdivision (a) does not prohibit a rental company from obtaining, accessing, or using information from electronic surveillance technology for the sole purpose of determining the date and time the vehicle departs from and is returned to the rental company, and the total mileage driven and the vehicle fuel level of the returned vehicle. The information obtained or accessed from this electronic surveillance technology shall only be used for the purpose described in this subdivision.

(d) A rental company shall not use electronic surveillance technology to track a renter in order to impose fines or surcharges relating to the renters use of the rental vehicle.