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

AB 1197 amends Sections 1939.03 and 1939.23 of the California Civil Code, focusing on the liability of renters for theft of rental vehicles and the use of electronic surveillance technology by rental companies. The bill allows rental companies to utilize geofence technology to monitor vehicle movement, particularly when vehicles are moved outside the country or into impound yards. It also revises the presumption of renter liability for theft, now requiring that an authorized driver returns the ignition key to benefit from the presumption of no liability. Rental companies must ensure that their rental agreements clearly outline the conditions under which geofence technology may be activated, including the requirement for prior notice to renters. The bill also maintains protections against unauthorized surveillance, stipulating that rental companies cannot use electronic surveillance technology to track renters for punitive measures. October 7, 2025, is the approval date, not a compliance deadline. Rental companies must update their policies and agreements to align with these changes to avoid potential liability issues. The bill reflects a growing trend in technology regulation, particularly concerning data privacy and surveillance in the rental vehicle sector.