Leased and rented vehicles: embezzlement and theft.

Existing law establishes a presumption that a person who willfully and intentionally fails to return a leased or rented vehicle to its owner within 5 days of the expiration of the agreement has embezzled the vehicle. Existing law requires every peace officer, upon receiving a report based on reliable information that a registered vehicle has been stolen, or that a leased or rented vehicle has not been returned within 5 days after its owner has made written demand for its return, by certified or registered mail, following the expiration of the lease or rental agreement, to report the information to the Department of Justice Stolen Vehicle System. Except as otherwise provided, a failure to comply with the Vehicle Code is punishable as an infraction. This bill would reduce the 5-day period following the expiration of the vehicle lease or rental agreement to 48 hours for the presumption of embezzlement to apply. The bill would require the lease or rental agreement to disclose that failure to return the vehicle within 48 hours after expiration of the lease or rental agreement may result in the vehicle being reported stolen. The bill would require the lease or rental agreement to require the lessee or renter to provide a method to contact him or her if the vehicle is not returned as required. The bill would require the owner of an embezzled vehicle to attempt to contact the other party to the lease or rental agreement who has failed to return the vehicle using the contact method specified in the lease or rental agreement. If the owner is able to contact the party, the bill would require the owner to inform the party that if arrangements for the return of the vehicle that are satisfactory for the owner are not made, the owner may report the vehicle stolen to law enforcement. If the owner is not able to contact the other party after a reasonable number of attempts, or if upon contacting the other party, the owner is not able to arrange for the return of the vehicle, the bill would authorize the owner to report the vehicle stolen to a peace officer. With regard to a leased or rented vehicle procured by fraud, the bill would specify that the owner is not required to wait until the expiration of the lease or rental agreement to inform law enforcement of the theft. The bill would except an owner that fails to comply with these requirements from the crime described above. The bill would make conforming changes.