Back to California

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
Official status
Chaptered
Effective date
Not listed

Plain English Breakdown

The official text specifies 'prescribed circumstances' for geofencing but does not detail what those are in this summary.

Rental Cars: Tracking Technology and Theft Liability

This law allows rental companies to use geofence technology in specific cases and changes the rule so that a renter is presumed not liable for theft only if they return the ignition key.

What This Bill Does

  • Allows rental companies to use geofence technology to detect vehicle movement under specified circumstances.
  • Changes the current law about who pays if a rented car is stolen by revising when a renter has no liability.

Who It Names or Affects

  • Rental passenger vehicle companies
  • Customers who rent vehicles

Terms To Know

Geofence technology
Technology used to detect when a rental vehicle moves, as specified by the bill.
Presumption of no liability
A legal rule that assumes the renter does not have to pay for loss due to theft if they meet specific conditions.

Limits and Unknowns

  • The bill states geofence technology can be used in 'prescribed circumstances' but does not list all of them.
  • The official source material notes the law was enacted on October 7, 2025, but does not provide a specific effective date.

Bill History

  1. California Legislative Information

    Chaptered

Official Summary Text

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