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

Assembly Member Calderon's rental vehicle legislation redefines how California rental companies may employ electronic surveillance technology while clarifying renter liability protections. The measure permits rental companies to use geofence technology to detect when vehicles cross international borders without authorization or enter impound yards, requiring companies to notify renters if their vehicle remains in an impound facility for more than 24 hours.

The bill modifies existing theft liability presumptions by specifically requiring the return of the ignition key by an authorized driver to maintain protection from liability. Rental companies must still demonstrate by clear and convincing evidence that renters failed to exercise ordinary care while possessing the vehicle. The legislation maintains current requirements for renters to file police reports within 24 hours of discovering a theft and cooperate with law enforcement investigations.

Under the new provisions, rental companies must maintain 12-month records of all electronic surveillance activations, including rental agreements, activation timestamps, and related communications. Companies must notify renters 24 hours before activating surveillance technology, both by phone and electronically, unless contact information is unavailable. The bill explicitly prohibits using tracking technology to impose fines or surcharges based on vehicle usage, while preserving existing allowances for GPS navigation, remote locking, and roadside assistance features when requested by renters.