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AB-1197 • 2026

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

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

Housing Privacy Technology
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Calderon
Last action
2025-10-07
Official status
Chaptered by Secretary of State - Chapter 449, Statutes of 2025.
Effective date
Not listed

Plain English Breakdown

The official source does not provide specific details on when or where geofence tracking can be used by rental companies.

Rental Cars and Electronic Tracking

This law allows rental car companies to use geofence technology to track vehicles in certain situations and changes rules about renter liability for theft losses if the ignition key is returned.

What This Bill Does

  • Allows rental car companies to use geofence technology to detect vehicle movement under specified circumstances.
  • Revises the rule that says a renter has no liability for loss due to theft if an authorized driver returns the ignition key.

Who It Names or Affects

  • Rental car companies
  • People who rent cars

Terms To Know

Geofence technology
A system that uses virtual boundaries to track when a vehicle enters or leaves a specific area.
Ignition key
The key used to start and control the ignition of a car.

Limits and Unknowns

  • Does not specify what happens if an authorized driver does not return the ignition key.
  • Does not explain how rental companies will use geofence technology in practice.
  • Does not provide details on when or where geofence tracking can be used.

Bill History

  1. 2025-10-07 California Legislative Information

    Chaptered by Secretary of State - Chapter 449, Statutes of 2025.

  2. 2025-10-07 California Legislative Information

    Approved by the Governor.

  3. 2025-09-22 California Legislative Information

    Enrolled and presented to the Governor at 3 p.m.

  4. 2025-09-10 California Legislative Information

    Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 3239.).

  5. 2025-09-09 California Legislative Information

    In Assembly. Concurrence in Senate amendments pending.

  6. 2025-09-09 California Legislative Information

    Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 2705.).

  7. 2025-07-16 California Legislative Information

    Read second time. Ordered to third reading.

  8. 2025-07-15 California Legislative Information

    From committee: Do pass. (Ayes 6. Noes 0.) (July 15).

  9. 2025-06-26 California Legislative Information

    Read second time and amended. Re-referred to Com. on PUB. S.

  10. 2025-06-25 California Legislative Information

    From committee: Amend, and do pass as amended and re-refer to Com. on PUB. S. (Ayes 11. Noes 1.) (June 24).

  11. 2025-06-04 California Legislative Information

    Referred to Coms. on JUD. and PUB. S.

  12. 2025-05-23 California Legislative Information

    In Senate. Read first time. To Com. on RLS. for assignment.

  13. 2025-05-23 California Legislative Information

    Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 0. Page 1649.)

  14. 2025-05-12 California Legislative Information

    Read second time. Ordered to third reading.

  15. 2025-05-08 California Legislative Information

    Read second time and amended. Ordered returned to second reading.

  16. 2025-05-07 California Legislative Information

    From committee: Amend, and do pass as amended. (Ayes 14. Noes 0.) (May 6).

  17. 2025-04-30 California Legislative Information

    From committee: Do pass and re-refer to Com. on P. & C.P. (Ayes 11. Noes 0.) (April 29). Re-referred to Com. on P. & C.P.

  18. 2025-04-28 California Legislative Information

    Re-referred to Com. on JUD.

  19. 2025-04-24 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.

  20. 2025-04-21 California Legislative Information

    Re-referred to Com. on JUD.

  21. 2025-04-21 California Legislative Information

    In committee: Set, first hearing. Hearing canceled at the request of author.

  22. 2025-04-10 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.

  23. 2025-04-02 California Legislative Information

    In committee: Hearing postponed by committee.

  24. 2025-04-01 California Legislative Information

    Re-referred to Com. on JUD.

  25. 2025-03-28 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.

  26. 2025-03-28 California Legislative Information

    Referred to Coms. on JUD. and INS.

  27. 2025-02-24 California Legislative Information

    Read first time.

  28. 2025-02-22 California Legislative Information

    From printer. May be heard in committee March 24.

  29. 2025-02-21 California Legislative Information

    Introduced. To print.

Official Summary Text

AB 1197, Calderon.
Rental passenger vehicles: electronic surveillance technology: renter 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 renter’s use of the rental vehicle that was obtained using electronic surveillance technology, as defined, except under specified circumstances. 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 provided. Existing law establishes, in the 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 geofence technology, as specified, to detect rental vehicle movement in prescribed circumstances. The bill, with respect to the above-described provisions relating to the renter’s liability for loss due to theft, 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.

Current Bill Text

Read the full stored bill text 
Download Bill PDF