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AB-2741 Rental car companies: electronic surveillance technology.(2023-2024)

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Date Published: 09/30/2024 09:00 PM
AB2741:v93#DOCUMENT

Assembly Bill No. 2741
CHAPTER 970

An act to amend Section 1939.23 of the Civil Code, relating to rental passenger vehicles.

[ Approved by Governor  September 29, 2024. Filed with Secretary of State  September 29, 2024. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 2741, Haney. Rental car companies: electronic surveillance technology.
Existing law generally governs the transactions between a rental company, also referred to as a rental car company, and its customers. 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, except under specified circumstances.
Existing law, until January 1, 2028, authorizes a rental company to activate electronic surveillance technology if the rental vehicle has not been returned following 72 hours after the contracted return date or by 72 hours following the end of an extension of that return date. Existing law requires the rental company to provide notice of activation of the electronic surveillance technology 24 hours prior to activation, as specified. Existing law, except as specified, requires the rental or lease agreement to advise the renter that electronic surveillance technology may be activated if the rental vehicle has not been returned within 72 hours of the return date. Existing law requires the advisement to also be made orally to the renter at the time of executing the rental or lease agreement, except as provided.
This bill would delete the January 1, 2028, sunset date, thereby extending those provisions, as further revised by the bill, indefinitely. The bill would decrease the time that a rental company must wait after the contracted or extended return date before activating electronic surveillance technology to 24 hours. The bill would specify that the oral advisement shall be made if the transaction is completed in person or by telephone.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 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 renter’s 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 company’s membership program executing a rental or lease agreement. However, a renter shall be given those advisements upon enrolling in the rental company’s 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 company’s 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 renter’s 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.
(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 renter’s 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 renter’s 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 renter’s 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 renter’s use of the rental vehicle.