AB 2059 Summary

• Requires rental companies to accept service of process on behalf of out-of-country renters for claims related to vehicle use if the company provides supplemental liability insurance, effective until January 1, 2016.

• Revises damage waiver rate limitations: economy cars capped at $8 per day (previously $9) for vehicles under $17,000 MSRP; mid-range vehicles ($17,001-$35,000) capped at $14 per day (previously $15) for current/prior model year vehicles.

• Prohibits rental companies from using electronic surveillance technology to track renters or collect location data, except for locating stolen/abandoned vehicles, responding to law enforcement requests, or determining return date/mileage after rental completion.

• Establishes renter liability limits based on actual repair costs, parts, labor, and administrative charges, with rental companies required to mitigate damages and apply insurance discounts.

• Mandates clear disclosure to renters about financial responsibility, damage waiver options, insurance coverage, and customer facility charges through rental contracts, signage, and oral notifications.