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Committee advances rental-car bill to allow limited geofencing, tighten 'keys' rule
Summary
Assemblymember Calderon’s AB 1197 would modernize rental-car law to discourage organized theft by permitting geofencing in narrow circumstances and by clarifying a 'keys' presumption. Support from major rental companies; consumer groups asked for consumer protections.
Assemblymember Calderon presented AB 1197, a bill that the committee advanced to modernize rental-car law and discourage organized theft and fraudulent schemes that target rental vehicles.
Why it matters: Witnesses said rental cars are frequent targets for theft and that current law contains loopholes that encourage bad actors. The bill would allow limited use of location-based technology (geofencing) in narrowly defined scenarios and would revise a ‘‘keys’’ presumption that affects renter liability.
Calderon told the committee that each year 400 to 500 rental cars are reported stolen and that current law, as written, can leave rental companies unable to recover losses. She said…
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