Bill > SB26

This bill modifies the procedures for civil actions related to new motor vehicle restitution or replacement, primarily by changing the operative date of certain provisions from April 1, 2025, to July 1, 2025. The bill allows motor vehicle manufacturers to voluntarily elect to be governed by specific legal procedures for handling consumer warranty claims by providing written notice to the Arbitration Certification Program within the Department of Consumer Affairs. Manufacturers who choose to participate must make an irrevocable election covering their vehicles for five consecutive calendar years, with an initial opportunity for manufacturers of 2025 and prior year vehicles to elect within 30 days of the bill's effective date. The bill requires manufacturers to notify consumers at the time of vehicle sale which procedural approach will govern potential warranty claims. Additionally, the bill places new restrictions on consumers seeking civil penalties after selling a vehicle, mandating that they provide written notice to the buyer about the basis for seeking restitution and any pending legal actions. The legislation is designed to provide clarity and flexibility for both manufacturers and consumers in resolving motor vehicle warranty disputes, with a built-in legislative review scheduled for January 1, 2029, to evaluate the law's outcomes and effects on consumers, manufacturers, and the court system.

Budget and Finance, Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB26