AB 1185: Rental passenger vehicles.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2017-06-12
Existing law generally governs the transactions between a rental car company, also referred to as a rental company, and its customers, including, among other provisions, required disclosures by a rental company, mandatory contract provisions for a vehicle rental agreement, restrictions on a rental companys use of electronic surveillance technology, and authorization for a rental company to collect specific types of fees and charges from its customers. Existing law defines terms for its purposes.
Existing law requires a rental company that offers or provides a damage waiver for consideration in addition to the rental rate to disclose specified information about the renters liability and how the renters personal insurance policy or credit card may provide coverage for all or a portion of the renters potential liability. Existing law requires this information to be posted on a sign in a clearly visible location and describes how a rental companys disclosure requirements may be satisfied for renters who are enrolled in the rental companys membership program. Existing law requires a rental car agent, if it sells insurance, or its endorsee, to make specified disclosures to the renter relating to that insurance, that may be displayed by clear and conspicuous signs posted where rental agreements are executed. Existing law also requires a car rental agency to inform each customer of a state law regarding child restraint systems by posting in a conspicuous place a notice not smaller than 15 by 20 inches with a specific statement.
This bill would authorize a rental company to comply with a these sign posting requirement requirements or the above-described child restraint systems notice requirement by using an electronic sign.
Existing law, as part of the restrictions on the use of electronic surveillance technology referenced above, prohibits a rental car company from using, accessing, or obtaining any information relating to the renters use of the rental vehicle that was obtained using electronic surveillance technology unless certain conditions are met, including that 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.
This bill would instead authorize a rental car company to use, access, or obtain that information if the rental vehicle has not been returned following 3 calendar days after the contracted return date, or by 3 calendar days following the end of an extension of that return date.
Existing law generally governs the transactions between a rental car company, also referred to as a rental company, and its customers, including, among other provisions, required disclosures by a rental company, mandatory contract provisions for a vehicle rental agreement, restrictions on a rental companys use of electronic surveillance technology, and authorization for a rental company to collect specific types of fees and charges from its customers. Existing law defines terms for its purposes.
Existing law requires a rental company that offers or provides a damage waiver for consideration in addition to the rental rate to disclose specified information about the renters liability and how the renters personal insurance policy or credit card may provide coverage for all or a portion of the renters potential liability. Existing law requires this information to be posted on a sign in a clearly visible location and describes how a rental companys disclosure requirements may be satisfied for renters who are enrolled in the rental companys membership program. Existing law also requires a car rental agency to inform each customer of a state law regarding child restraint systems by posting in a conspicuous place a notice not smaller than 15 by 20 inches with a specific statement.
This bill would authorize a rental company to comply with a sign posting requirement or the above-described child restraint systems notice requirement by using an electronic sign.
Existing law, as part of the restrictions on the use of electronic surveillance technology referenced above, prohibits a rental car company from using, accessing, or obtaining any information relating to the renters use of the rental vehicle that was obtained using electronic surveillance technology unless certain conditions are met, including that 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.
This bill would instead authorize a rental car company to use, access, or obtain that information if the rental vehicle has not been returned following 3 calendar days after the contracted return date, or by 3 calendar days following the end of an extension of that return date.
Existing law generally governs the transactions between a rental car company, also referred to as a rental company, and its customers, including, among other provisions, required disclosures by a rental company, mandatory contract provisions for a vehicle rental agreement, restrictions on a rental companys use of electronic surveillance technology, and authorization for a rental company to collect specific types of fees and charges from its customers. Existing law defines terms for its purposes.
Existing law requires a rental company that offers or provides a damage waiver for consideration in addition to the rental rate to disclose specified information about the renters liability and how the renters personal insurance policy or credit card may provide coverage for all or a portion of the renters potential liability. Existing law requires this information to be posted on a sign in a clearly visible location and describes how a rental companys disclosure requirements may be satisfied for renters who are enrolled in the rental companys membership program. Existing law also requires a car rental agency to inform each customer of a state law regarding child restraint systems by posting in a conspicuous place a notice not smaller than 15 by 20 inches with a specific statement.
This bill would authorize a rental company to comply with a sign posting requirement or the above-described child restraint systems notice requirement by using an electronic sign.
Existing law, as part of the restrictions on the use of electronic surveillance technology referenced above, prohibits a rental car company from using, accessing, or obtaining any information relating to the renters use of the rental vehicle that was obtained using electronic surveillance technology unless certain conditions are met, including that 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.
This bill would instead authorize a rental car company to use, access, or obtain that information if the rental vehicle has not been returned following 24 hours 3 calendar days after the contracted return date, or by 24 hours 3 calendar days following the end of an extension of that return date.
Existing law generally governs the transactions between a rental car company, also referred to as a rental company, and its customers, including, among other provisions, required disclosures by a rental company, mandatory contract provisions for a vehicle rental agreement, restrictions on a rental companys use of electronic surveillance technology, and authorization for a rental company to collect specific types of fees and charges from its customers. Existing law defines terms for its purposes.
Existing law, as part of the restrictions on the use of electronic surveillance technology referenced above, prohibits a rental car company from using, accessing, or obtaining any information relating to the renters use of the rental vehicle that was obtained using electronic surveillance technology unless certain conditions are met, including that 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.
This bill would instead authorize a rental car company to use, access, or obtain that information 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.
A rental company may comply with a requirement to post a sign pursuant to this chapter or subdivision (c) of Section 1758.86 of the Insurance Code by using an electronic sign.
SEC. 2.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 renters 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)The rental vehicle has not been returned following three calendar days after the contracted return date or by three calendar days following the end of an extension of that return date.
(iii)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.
(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 renters 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 renters 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 renters 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 renters 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 renters use of the rental vehicle.
SEC. 3.Section 27365 of the Vehicle Code is amended to read:27365.(a)(1)A car rental agency in California shall inform each of its customers of Section 27360 by posting, in a place conspicuous to the public in each established place of business of the agency, a notice not smaller than 15 by 20 inches or an electronic sign which states the following:
CALIFORNIA LAW REQUIRES ALL CHILDREN UNDER 8 YEARS OF AGE TO BE TRANSPORTED IN THE REAR SEAT OF THE VEHICLE IN A CHILD RESTRAINT SYSTEM. THIS AGENCY IS REQUIRED TO PROVIDE FOR RENTAL OF A CHILD RESTRAINT SYSTEM IF YOU DO NOT HAVE A CHILD RESTRAINT SYSTEM YOURSELF.
(2)The posted notice or electronic sign specified in paragraph (1) is not required if the car rental agencys place of business is located in a hotel that has a business policy prohibiting the posting of signs or notices in any area of the hotel. In that case, a car rental agency shall furnish a written notice to each customer that contains the same information as required for the posted notice.
(b)Every car rental agency in California shall have available for, and shall, upon request, provide for rental to, adults traveling with children under eight years of age, child passenger restraint systems that are certified by the manufacturer to meet applicable federal motor vehicle safety standards for use by children, are in good and safe condition, with no missing original parts, and are not older than five years.
(c)A violation of this section is an infraction punishable by a fine of one hundred dollars ($100).
A rental company may comply with a requirement to post a sign pursuant to this chapter or to post a notice pursuant to Section 27365 of the Vehicle Code by using an electronic sign.
SEC. 2.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 renters 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)The rental vehicle has not been returned following three calendar days after the contracted return date or by three calendar days following the end of an extension of that return date.
(iii)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.
(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 renters 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 renters 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 renters 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 renters 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 renters use of the rental vehicle.
SEC. 3.Section 27365 of the Vehicle Code is amended to read:27365.(a)(1)A car rental agency in California shall inform each of its customers of Section 27360 by posting, in a place conspicuous to the public in each established place of business of the agency, a notice not smaller than 15 by 20 inches or an electronic sign which states the following:
CALIFORNIA LAW REQUIRES ALL CHILDREN UNDER 8 YEARS OF AGE TO BE TRANSPORTED IN THE REAR SEAT OF THE VEHICLE IN A CHILD RESTRAINT SYSTEM. THIS AGENCY IS REQUIRED TO PROVIDE FOR RENTAL OF A CHILD RESTRAINT SYSTEM IF YOU DO NOT HAVE A CHILD RESTRAINT SYSTEM YOURSELF.
(2)The posted notice or electronic sign specified in paragraph (1) is not required if the car rental agencys place of business is located in a hotel that has a business policy prohibiting the posting of signs or notices in any area of the hotel. In that case, a car rental agency shall furnish a written notice to each customer that contains the same information as required for the posted notice.
(b)Every car rental agency in California shall have available for, and shall, upon request, provide for rental to, adults traveling with children under eight years of age, child passenger restraint systems that are certified by the manufacturer to meet applicable federal motor vehicle safety standards for use by children, are in good and safe condition, with no missing original parts, and are not older than five years.
(c)A violation of this section is an infraction punishable by a fine of one hundred dollars ($100).
A rental company may comply with a requirement to post a sign pursuant to this chapter or to post a notice pursuant to Section 27365 of the Vehicle Code by using an electronic sign.
SECTION 1.SEC. 2.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 renters 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)The rental vehicle has not been returned following 24 hours three calendar days after the contracted return date or by 24 hours three calendar days following the end of an extension of that return date.
(iii)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.
(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 renters 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 renters 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 renters 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 renters 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 renters use of the rental vehicle.
(a)A rental company shall not use, access, or obtain any information relating to the renters 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)The rental vehicle has not been returned following one week 24 hours after the contracted return date or by one week 24 hours following the end of an extension of that return date.
(iii)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.
(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 renters 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 renters 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 renters 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 renters 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 renters use of the rental vehicle.
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Date
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Status
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|---|---|
| Jun 27, 2017 | In committee: Set, second hearing. Hearing canceled at the request of author. |
| Jun 15, 2017 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jun 12, 2017 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. |
| May 24, 2017 | Referred to Com. on JUD. |
| May 11, 2017 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 11, 2017 | Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 1490.) |
| May 8, 2017 | Read second time. Ordered to Consent Calendar. |
| May 4, 2017 | Read second time and amended. Ordered returned to second reading. |
| May 3, 2017 | From committee: Amend, and do pass as amended. To Consent Calendar. (Ayes 10. Noes 0.) (May 2). |
| Apr 4, 2017 | Re-referred to Com. on P. & C.P. |
| Apr 3, 2017 | Read second time and amended. |
| Mar 30, 2017 | From committee: Amend, and do pass as amended and re-refer to Com. on P. & C.P. with recommendation: To Consent Calendar. (Ayes 11. Noes 0.) (March 28). |
| Mar 9, 2017 | Referred to Coms. on JUD. and P. & C.P. |
| Feb 19, 2017 | From printer. May be heard in committee March 21. |
| Feb 17, 2017 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| May 11, 2017 | AB 1185 O'DONNELL Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
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| May 2, 2017 | Do pass as amended. To Consent Calendar. | Assembly Standing Committee on Privacy and Consumer Protection |
Passed |
|
| Mar 28, 2017 | Do pass as amended, and be re-referred to the Committee on [Privacy and Consumer Protection] with recommendation: To Consent Calendar | Assembly Standing Committee on Judiciary |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| Avis Budget Group | ** Support | Apr 28, 2017 |
| California Chamber Of Commerce | ** Support | Apr 28, 2017 |
| California Travel Association | ** Support | Apr 28, 2017 |
| Enterprise Holdings | ** Support | Apr 28, 2017 |
| Hertz | ** Support | Apr 28, 2017 |
Date of Hearing: May 2, 2017
ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION
Ed Chau, Chair
ABPCA Bill Id:AB 1185 (
Author:O'Donnell) – As Amended Ver:April 3, 2017
SUBJECT: Rental passenger vehicles
SUMMARY: Reduces the number of days car rental companies have to wait before using and accessing customer information to locate a missing rental vehicle from seven to three calendar days and allows several existing notice requirements to be met by electronic display. Specifically, this bill:
- Changes the number of days car rental companies have to wait to use and access customer information through electronic surveillance technology (i.e. GPS location technology) to locate a missing rental vehicle, from seven to three days.
- Authorizes car rental companies to use an electronic sign to comply with existing requirements to notify customers of the nature of the renter’s liability, as specified, along with the requirement that children under the age of 8 are required to be transported in the rear seat of the vehicle in a child restraint system, as specified.
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, unless the technology is used to locate a stolen, abandoned, or missing rental vehicle after one of the following:
- The renter or law enforcement has informed the rental car company that the vehicle is missing or has been stolen or abandoned.
- The rental vehicle has not been returned following one week after the contracted return date, or one week following the end of an extension of that return date.
- The rental car company discovers that the vehicle has been stolen or abandoned and, if stolen, reports the vehicle stolen to law enforcement by filing a stolen vehicle report. (Civil Code (CC) Section 1939.23)
- 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 in response to a specific request from law enforcement pursuant to a subpoena or search warrant, or if the customer requests assistance, or to determine the date, time, and total mileage and vehicle fuel level upon return. (CC 1939.23)
- Requires a rental company that offers or provides a damage waiver shall clearly and conspicuously disclose specified information in the rental contract or holder in which the contract is placed and, also, in signs posted at the location where the renter signs the rental contract and other locations. This information, among other things, includes the nature and extent of the renter’s liability, and that the renter may purchase an optional damage waiver to cover all liability. (CC 1939.09)
- Requires car rental agencies to post in a place conspicuous to the public, in each established place of business of the agency, a notice that specifies that all children under eight years of age be transported in the rear seat of the vehicle in a child restraint system. (Vehicle Code Section 27365)
FISCAL EFFECT: None. This bill has been keyed nonfiscal by the Legislative Counsel.
COMMENTS:
- Purpose of the bill: This bill is intended to allow rental car companies to track down overdue cars faster by shortening, from seven days to three, the amount of time the company must wait to locate the rental car with GPS technology. AB 1185 also aims to modernize consumer notification by allowing rental car companies to comply with several existing notice requirements by using electronic signage. AB 1185 is sponsored by Enterprise Holdings.
- Author’s statement: According to the author, “Our treatment of GPS use in rental cars is terribly out of date and does not consider the realities rental vehicle companies face in retrieving lost vehicles. This bill strikes an appropriate balance between respecting the privacy of customers and allowing rental car companies to retrieve their property. A 3-day waiting period accounts for customers that may simply be a few hours late delivering a vehicle, while still allowing companies to locate vehicles before they might be lost forever.”
“The bill also allows rental vehicle companies to satisfy requirements to post certain information in visible locations by using an electronic display instead of a physical sign. Many businesses have been switching to electronic displays as their versatility can make them cheaper and better at drawing customer attention than physical signs. By allowing rental vehicle companies to use these displays, the bill will make delivering this important information easier and more effective.”
- Rental car companies and GPS information: In California, rental vehicle companies are allowed to equip cars with GPS technology, but there are many restrictions to accessing customer information. For example, rental companies can utilize GPS information to locate a car that has been reported to be missing, stolen or abandoned – but only after the vehicle has been missing for a week.
The author argues that one week is too long to wait and the seven-day waiting period has created numerous problems for rental vehicle companies. If the car has not been returned for seven days, it is likely that it has been stolen or abandoned. While current law was written to protect the privacy rights of individuals, changing the waiting time from seven days to three days is unlikely to violate customer privacy expectations.
The author contends that if a customer has a good reason for delaying the return of the vehicle, three days should be sufficient time to return the vehicle or contact the company. If the renter knows that he or she will not be able to return the vehicle on time, he or she can obtain an extension of the rental contract and the GPS will not be activated until three days have passed after the extended time period of the contract. If a renter has not contacted the rental company within three days after a scheduled return date, it seems reasonable to believe that either the vehicle has been stolen, or that the renter is injured or in distress.
This change in the waiting period from seven days to three will allow rental car companies to find the cars faster, potentially reduce the number of lost rental vehicles, and possibly find customers in distress. - Sign requirements: Rental vehicle companies are required to post a variety of signs to inform consumers about financial responsibility and damage waivers as well as seatbelt requirements for children eight years and younger. These are important consumer protection measures that inform the consumer about the contract that they are signing and provide important safety information.
This bill allows rental vehicle companies to use electronic displays instead of a physical sign to provide those notices. The sponsor states that they plan to have the notices on a rotating slide show on a television, but the notices will be displayed multiple times during a person’s visit. The sponsor notes that they believe that a moving display is more likely to draw attention to the notices than a static physical sign. Of note, this bill allows digital signs to be used to comply with all signage requirements within the chapter, which will extend to future sections within this chapter. While the text will not be static like a physical sign, customers may be more engaged in a digital sign than a printed sign. This bill does not mandate that rental vehicle companies display sign requirements digitally, so companies still have flexibility to choose the display method. - Suggested amendments: In order to provide greater clarity about the electronic sign authorization, the Committee suggests that the authorization be placed directly into Vehicle Code Section 27365 instead of simply being referenced in the Civil Code Section created by this bill. The amendments agreed by the author’s office are as follows:
On page 2, line 4-5, strike
“or to post a notice pursuant to Section 27365 of the Vehicle Code”
On page 4, after line 21, insert the following:
Section 27365 of the Vehicle Code is amended to read:
Vehicle Code 27365 (a) (1) A car rental agency in California shall inform each of its customers of Section 27360 by posting, in a place conspicuous to the public in each established place of business of the agency, a notice not smaller than 15 by 20 inches or an electronic sign which states the following:
“CALIFORNIA LAW REQUIRES ALL CHILDREN UNDER 8 YEARS OF AGE TO BE TRANSPORTED IN THE REAR SEAT OF THE VEHICLE IN A CHILD RESTRAINT SYSTEM. THIS AGENCY IS REQUIRED TO PROVIDE FOR RENTAL OF A CHILD RESTRAINT SYSTEM IF YOU DO NOT HAVE A CHILD RESTRAINT SYSTEM YOURSELF.”
(2) The posted notice or electronic sign, specified in paragraph (1) is not required if the car rental agency’s place of business is located in a hotel that has a business policy prohibiting the posting of signs or notices in any area of the hotel. In that case, a car rental agency shall furnish a written notice to each customer that contains the same information as required for the posted notice.
- Previous legislation: AB 2051 (O’Donnell), Chapter 183, Statutes of 2016, reorganized and reconciled several Civil Code sections addressing rental cars and rental car facilities. The bill provided that entities outside rental companies that rent vehicles provide disclosures to the consumer about customer charges.
AB 675 (Alejo), Chapter 333, Statutes of 2015, revised and recast the statute governing agreements between rental car companies and their customers in order to allow a rental car company to better separate rental fees from government-imposed charges.
- Arguments in support: According to several groups in support, led by the California Chamber of Commerce, “Under existing law, a rental car company cannot access GPS information to locate a missing vehicle until seven days after it was scheduled to be returned. By updating that time frame to three days, AB 1185 allows rental car companies to determine the status of their vehicle in a timely manner while still protecting the privacy of customers during the rental period. Additionally, by allowing the use of electronic signs, AB 1185 clarifies that modern technology can be used to provide the required posted notices as opposed to relying upon the outdated paper versions.”
REGISTERED SUPPORT / OPPOSITION:
Support
Enterprise Holdings (sponsor)
Avis Budget Group
California Chamber of Commerce
California Travel Association
Hertz
Opposition
None on file.
Analysis Prepared by: Jennifer Chase / P. & C.P. / (916) 319-2200
Date of Hearing: March 28, 2017
ASSEMBLY COMMITTEE ON JUDICIARY
Mark Stone, Chair
ABPCA Bill Id:AB 1185
Author:(O'Donnell) – As Introduced Ver:February 17, 2017
PROPOSED CONSENT (As Proposed to be Amended)
SUBJECT: RENTAL PASSENGER VEHICLES
KEY ISSUE: SHOULD a RENTAL CAR COMPANy BE ALLOWED TO USE ELECTRONIC SURVEILLANCE TECHNOLOGY TO LOCATE A RENTAL VEHICLE after THAT VEHICLE IS THREE DAYS—RATHER THAN SEVEN DAYS---OVERDUE IN BEING RETURNED?
SYNOPSIS
Under California law, car rental companies are allowed to equip vehicles with electronic surveillance technology (e.g. GPS technology), but the use of information relating to the customer's use of the car obtained through the technology is severely restricted in order to protect the privacy of customers. Current law prohibits information obtained through GPS from being accessed until the vehicle is returned by the customer, unless the vehicle is missing, abandoned, or stolen, or the customer fails to return the vehicle within one week of the contracted return date or any extension thereof.
This bill, sponsored by the rental car industry, seeks to make two changes to sections of the Civil Code that affect rental car companies and their customers. First, as proposed to be amended, the bill authorizes a rental car company to use information obtained through electronic surveillance technology after a rental car is three days overdue, rather than 24 hours overdue as provided in the current version of the bill. In both cases, of course, the wait period is significantly decreased from the seven day time-period required under existing law. However, the proposed amendment provides stronger privacy protections for customers while also allowing rental car companies reasonable use of GPS technology to locate overdue cars that have not been returned after three days. Second, proposed author's amendments would allow rental car companies to use an electronic sign to post certain specified notices in the area where customers typically sign rental contracts, rather than posting a printed copy of the notice on the wall or counter in the same area. Supporters of the bill contend that this change helps incorporate modern technology instead of outdated paper version of notices. There is no known opposition to this bill.
SUMMARY: Allows car rental companies to use and access customer usage information obtained through electronic surveillance technology more quickly (after three days, rather than seven days) upon failure of the renter to return the car on time. Specifically, this bill:
- Authorizes a rental car company to use, access, or obtain information relating to a renter's use of the rental vehicle that was obtained through electronic surveillance technology if the vehicle has not been returned following three calendar days (rather than one week) after the contracted return date, or by three calendar days (rather than one week) following the end of an extension of that return date.
- Authorizes a rental company to use an electronic sign to comply with any requirement to post a sign, in the following cases:
- Any sign required to post a sign pursuant to Chapter 1.5 of Title 5 of Part 4 of Division 3 of the Civil Code (commencing with Section 1939.01), including signs posted in the location where the renter signs the rental contract that notify the renter of his or her financial responsibility for damage to the vehicle and the availability of the optional damage waiver.
- The notice specified by Vehicle Code Section 27365 notifying customers of car rental agencies that state law requires children under age 8 to ride in a child restraint system, and that the rental agency is required to provide a restraint system for rent if the customer does not have one.
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, unless the technology is used to locate a stolen, abandoned, or missing rental vehicle after one of the following:
- The renter or law enforcement has informed the rental car company that the vehicle is missing or has been stolen or abandoned.
- The rental vehicle has not been returned following one week after the contracted return date, or one week following the end of an extension of that return date.
- The rental car company discovers that the vehicle has been stolen or abandoned and, if stolen, reports the vehicle stolen to law enforcement by filing a stolen vehicle report. (Civil Code Section 1939.23 (a)(1)(A). All further references are to this code unless otherwise stated.)
- Requires a rental company to maintain records of information, as specified, relevant to any activation of electronic surveillance technology pursuant to 1) above. Specifies that this information shall include the return date, the date and time the electronic surveillance technology was activated, and, 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. (Section 1939.23 (a)(1)(B).)
- 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 in response to a specific request from law enforcement pursuant to a subpoena or search warrant. (Section 1939.23 (a)(2).)
- 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 in specified situations, including:
- To discover or repair a defect in the GPS-based technology that provides navigation assistance to the occupants of the rental vehicle;
- To allow for the remote locking or unlocking of a vehicle at the request of the renter;
- To provide roadside assistance, such as towing, flat tire, or fuel services, at the request of the renter; and
- For the sole purpose of determining the date and time the vehicle is returned to the rental company, and the total mileage driven and the vehicle fuel level of the returned vehicle. (Section 1939.23, subd. (b) and (c).)
- Prohibits a rental car company from using electronic surveillance technology to track a renter in order to impose fines or surcharges relating to the renter’s use of the rental vehicle. (Section 1939.23 (d).)
- Requires a rental company that offers or provides a damage waiver shall clearly and conspicuously disclose specified information in the rental contract or holder in which the contract is placed and, also, in signs posted at the location where the renter signs the rental contract and other locations. This information, among other things, includes the nature and extent of the renter’s liability, and that the renter may purchase an optional damage waiver to cover all liability. (Section 1939.09 (c).)
- Requires car rental agencies to post in a place conspicuous to the public, in each established place of business of the agency, a notice not smaller than 15 by 20 inches which states the following: “CALIFORNIA LAW REQUIRES ALL CHILDREN UNDER 8 YEARS OF AGE TO BE TRANSPORTED IN THE REAR SEAT OF THE VEHICLE IN A CHILD RESTRAINT SYSTEM. THIS AGENCY IS REQUIRED TO PROVIDE FOR RENTAL OF A CHILD RESTRAINT SYSTEM IF YOU DO NOT HAVE A CHILD RESTRAINT SYSTEM YOURSELF.” (Vehicle Code Section 27365.)
FISCAL EFFECT: As currently in print this bill is keyed non-fiscal.
COMMENTS: This bill, sponsored by Enterprise Holdings, seeks to make two changes to sections of the Civil Code that affect rental car companies and their customers. First, as proposed to be amended, the bill would allow rental car companies to use an electronic sign to post certain notices in the area where customers typically sign rental contracts, rather than post a printed copy of the notice on the wall or counter in the same area. Second, proposed amendments authorize a rental car company to use information obtained through electronic surveillance technology (e.g. GPS location technology) after a rental car is three days overdue, rather than the seven days, as required under existing law.
With respect to the electronic surveillance issue, the author states:
California is one of just a handful of states that prohibit rental car companies from using information obtained from the rental vehicle's GPS device to locate their vehicles, except in a few narrowly defined situations. Current law prohibits GPS information from being accessed until the vehicle is returned, unless the vehicle is missing, abandoned, or stolen, or the customer fails to return the vehicle within one week of the contracted return date or any extension thereof.
This has created numerous problems for rental vehicle companies. A week is far longer than any reasonable customer should need to correct an honest mistake. In instances where vehicles have not been returned for that long, they are likely stolen or abandoned. Each day the vehicle is missing increases the likelihood that it has been shipped out overseas, torn apart in a chop shop, or damaged beyond repair.
Restrictions on use of GPS information, generally. According to the author, several states, including California, passed laws in recent years that generally limited the ability of rental car companies to use GPS technology to obtain information about a renter's use of a rental vehicle, except for certain limited purposes. The impetus for these laws apparently arose from the facts of a 2005 Connecticut case involving a rental company that used GPS technology to ascertain the speed and location of a vehicle throughout its rental period. This information was then used to calculate the number of instances in which the driver exceeded a certain speed for two minutes or longer, which then was used to justify the imposition of extra charges for "reckless" use of the vehicle under the rental contract. (American Car Rental, Inc. v. Commissioner of Consumer Protection (2005) 869 A.2d 1198.) More than the legal issue in the case (whether the charge represented a valid liquidated damages charge or an illegal penalty), the facts of the case revealed that some rental car companies were using electronic surveillance technology to monitor the driving behavior of their customers. The same technology could also be used, for example, to keep track of whether the renter had driven the vehicle beyond a contractually-restricted geographical area.
Under California law, car rental companies are allowed to equip vehicles with GPS technology, but the use of information relating to the customer's use of a vehicle that is obtained through the technology is generally prohibited, except for certain authorized purposes. For example, the law allows use of GPS information to discover or repair a defect in the GPS-based technology that provides navigation assistance to the occupants of the rental vehicle; to facilitate remote locking or unlocking of a vehicle; and to provide roadside assistance, such as towing, flat tire, or fuel services, all if done at the request of the renter. Otherwise, current law prohibits information obtained through GPS from being accessed until the vehicle is returned, unless the vehicle is missing, abandoned, or stolen, or the customer fails to return the vehicle within one week of the contracted return date or any extension thereof.
Author's proposed amendments regarding GPS activation period for overdue vehicles. The author and sponsor contend, not unreasonably, that one week is a long time to wait before using GPS to determine the whereabouts of a vehicle that has not been returned, especially in the case where the renter has failed to notify the rental company or sought to extend the contracted return date. As currently in print, the bill decreases this period of time from one week to just 24 hours after the return date (or end of any extension of that return date.) In order to take a slightly more conservative approach and protect the privacy concerns of renters, the author proposes to amend that waiting period to be three calendar days instead of 24 hours. This proposed amendment aligns the bill with the identical 3-day period that was approved by this Committee last year with respect to a similar bill, AB 2051 (O'Donnell). The amendment is:
On page 2, line 14, strike "24 hours" in both places where it appears, and replace with "three calendar days"
Committee staff notes that if the renter knows he or she will not be able to return the vehicle on time, he or she can obtain an extension of the rental contract and the GPS will not be activated until three days have passed after the extended time period of the contract. Knowing the whereabouts of a vehicle that has not been returned for three days after the contracted return date or extension would not only help the rental car company locate the vehicle, it could also help a renter who is lost, injured, or otherwise in distress. If a renter has not contacted the rental company within three days after a scheduled return date, it seems reasonable to believe that either the vehicle has been stolen, or that the renter is injured, disoriented, in distress, or even dead. In either case, knowing the whereabouts of the vehicle and the renter could be critically important.
Author's proposed amendments to allow use of electronic signs to fulfill signage requirements. As proposed to be amended, the bill would allow rental companies to comply with a requirement in current law to post certain signs at a rental car location by using an electronic sign to display the same sign or notice in electronic form. According to the sponsor, this modest change would "clarify that modern technology can be used to provide the required posted notices as opposed to relying upon the outdated paper versions." The sponsor contends that displaying the sign on a large flat screen television in the rental facility may cause more people to read the sign than when the sign is printed and affixed the wall, because the television is more "eye-catching." In addition, greater efficiency may be achieved by having the electronic sign cycle through different displays, thus consolidating multiple signs or notices in one location. The main tradeoff is that while printed signs are perhaps not as eye-catching as a television display, they remain visible at all times to customers in the rental office, rather than only a proportion of the time, as is the case when an electronic sign cycles through multiple screens or visual displays. The amendment is:
On page 2, before line 1, insert:
SECTION 1. Section 1939.02 is added to the Civil Code, to read:
1939.02. A rental company may comply with a requirement to post a sign pursuant to this chapter or to post a notice pursuant to Section 27365 of the Vehicle Code by using an electronic sign.
On page 2, in line 1, strike out "SECTION 1." and insert "SEC. 2"
As proposed to be amended, this bill would apply only to two requirements to post a sign or notice under current law. First, it would apply to the sign required to be posted in the location where the renter signs the rental contract, pursuant to Section 1939.09 (c), that notifies the renter of his or her financial responsibility for damage to the vehicle and the availability of the optional damage waiver. Second, it would apply to the notice specified by Vehicle Code Section 27365 notifying customers of car rental agencies that state law requires children under age 8 to ride in a child restraint system, and that the rental agency is required to provide a restraint system for rent if the customer does not have one. It should also be noted, however, that because the proposed amendment refers to any requirement to post a sign "pursuant to this chapter," the bill would also apply to any future requirement to post a sign if that requirement were to be located within Chapter 1.5 of Title 5 of Part 4 of Division 3 of the Civil Code (commencing with Section 1939.01), relating to rental car transactions.
REGISTERED SUPPORT / OPPOSITION:
Support
Enterprise Holdings (sponsor)
Avis Budget Group
California Chamber of Commerce
California Travel Association
Hertz
Opposition
None on file
Analysis Prepared by: Anthony Lew / JUD. / (916) 319-2334
Bill Author
Bill Co-Author(s):