Rental vehicles: law enforcement.

The tactical team (SWAT) exemption in Section 1939.36(b)(3) was expanded to explicitly include 'predeployment, staging, and training use,' meaning vehicles used for these preparatory activities are now exempt from the decal requirement, not just those actively performing tactical operations.

The undercover operations exemption in Section 1939.36(b)(5) was broadened to include 'surveillance' as a distinct activity alongside 'active undercover operations or investigative activities,' creating a separate category of exempted use.

Section 1939.36(d) changed the required contract language from 'compliance with the temporary decal requirement in subdivision (a) state law is mandatory' to simply 'compliance with state law is mandatory,' making the contractual obligation broader and less tied to a specific provision.

Section 1939.36(e) expanded the grandfather clause for pre-existing rental contracts (entered into before January 1, 2027) from applying only to subdivision (a) (the decal display requirement) to also covering subdivision (d) (the mandatory contract term), so older contracts are exempt from both obligations.

The legislative counsel's digest was restructured, moving the sentence about electronic surveillance tracking from the 'existing law' paragraph into a new position before the 'this bill would' language. The operative statutory text is unchanged by this edit.

Section 1939.36(d) now states that compliance with the decal requirement is mandatory under 'state law' rather than simply being a contractual obligation, strengthening the legal basis for enforcement actions.

Section 1939.36(e) expands the exemption for rental car contracts entered into prior to January 1, 2027, from applying only to subdivision (a) (the decal display requirement) to also covering subdivision (d) (the mandatory contract language requirement), so existing contracts are not retroactively required to include the new compliance clause.

New exemption (b)(6) allows law enforcement to use unmarked rental vehicles when transporting a person already in lawful custodial status following arrest under a judicial warrant or judicially issued extradition order, to or from a custodial facility or transportation hub, if the officer reasonably determines that displaying the decal would compromise officer safety, public safety, or the security of the person being transported.

The new exemption explicitly does not apply to the initial detention or arrest of an individual in the field, meaning the decal requirement still applies during the initial stop or arrest.

New definition clarifies that 'judicial warrant' or 'judicially issued extradition order' does not include any civil, administrative, or executive warrant, detainer, or order not issued by a court of competent jurisdiction, limiting the exemption to true court-issued orders.

A new exemption (b)(5) was added to Section 1939.36, exempting privately owned vehicles used by officers engaged in active undercover operations or investigative activities from the temporary decal requirement. This is broader than the existing plainclothes exemption, which only covers officers from specific state agencies.

All Vehicle Code amendments were removed: the expansion of 'authorized emergency vehicle' in Section 165, the light and decal requirements in Section 25252, and the legislative policy declaration in Section 30. The bill now only adds Section 1939.36 to the Civil Code.

The covered activities were narrowed from 'investigating, monitoring, detaining, arresting, or transporting' to only 'detaining, arresting, or transporting.' Vehicles used for surveillance or investigation are no longer covered.

The requirement that rental vehicles be permanently equipped with burning or flashing red and blue lights visible above the roofline was eliminated entirely.

A new subdivision (d) requires that rental car contracts specify compliance with the decal requirement is mandatory, and permits a term requiring the law enforcement agency to indemnify the private vehicle owner.

The tiered civil penalty structure ($3,000 for first violation, $10,000 for second within 24 months, $15,000 for third and subsequent) was removed. Enforcement is now limited to civil actions seeking injunctive or declaratory relief by the Attorney General, district attorney, county counsel, or city attorney.

The liable party was clarified as 'the entity renting the vehicle from the private owner' rather than just 'the entity renting the vehicle,' making it clearer that the rental company (not the law enforcement agency) bears liability.

Most of the detailed legislative findings referencing specific federal immigration enforcement incidents, impersonation cases, and the state's police powers were removed, replaced with shorter general findings about public safety and vehicle identification.

Removed the specific prohibition in Civil Code Section 1939.36 that barred rental companies from renting vehicles to the United States Immigration and Customs Enforcement (ICE).

The bill's scope expanded from targeting only ICE to covering all federal, state, and local law enforcement agencies that rent vehicles for enforcement activities.

Added a new requirement in Civil Code Section 1939.36 that any privately owned vehicle rented by or furnished to any federal, state, or local law enforcement agency for detaining, arresting, or transporting persons must display a temporary decal with the agency name and logo on the front door panels, legible from 50 feet in daylight. The governmental entity is responsible for creating and affixing the decal.

Enforcement of the new Civil Code decal requirement is through civil action by the Attorney General, district attorney, county counsel, or city attorney seeking injunctive or declaratory relief, with prevailing plaintiffs entitled to reasonable attorney's fees and costs. This replaces the earlier escalating civil penalty structure ($3,000/$10,000/$15,000) that applied under the Vehicle Code provisions.

Fiscal committee designation changed from 'no' to 'yes,' indicating the amendment was found to have state fiscal impact.

Added additional legislative findings emphasizing that unmarked rental vehicles create ambiguity about whether individuals are being lawfully stopped, can lead to escalation of conflict, and that proper marking serves a critical safety function by preventing impersonation.

The bill now applies to all privately owned vehicles rented or furnished to any federal, state, or local law enforcement agency for investigating, monitoring, detaining, arresting, or transporting persons, not just ICE. The original ICE-only prohibition is retained but is now one component of a broader framework.

Extensive legislative findings and declarations are added, citing public safety concerns about unmarked vehicles, facial coverings, impersonation of law enforcement officers, and specific incidents including a woman tackled on a sidewalk whose family called 911 reporting a kidnapping.

Section 165 of the Vehicle Code is amended to add subdivision (g), defining 'authorized emergency vehicle' to include any privately owned vehicle rented by or furnished to a law enforcement agency for law enforcement activities. This triggers the light and decal requirements in Section 25252.

Vehicles under the new definition must be permanently equipped with burning or flashing red and blue lights visible above the roofline to the front, side, and rear, plus decals identifying the law enforcement agency that procured the vehicle.

The Attorney General or a city, county, or city and county attorney may bring civil actions for injunctive relief and civil penalties of $3,000 for the first violation, $10,000 for a second violation within 24 months, and $15,000 for the third and any subsequent violation within 24 months.

Four exemptions from the light and decal requirements: (1) plainclothes operations by officers of specific state agencies, (2) exigent circumstances involving imminent danger, escape of a perpetrator, or destruction of evidence, (3) vehicles rented to SWAT or tactical teams actively performing duties, and (4) protective operations for elected officials, judicial officers, or designated dignitaries where identification would compromise safety or effectiveness.

Rental car contracts entered into prior to January 1, 2027 are exempt from the light and decal requirements, giving rental companies a transition period.

Section 30 of the Vehicle Code is repealed and replaced with an updated legislative policy declaration that adds a provision stating privately owned cars rented to law enforcement agencies should be equipped with proper lights for public safety.