Civil actions: restitution for or replacement of a new motor vehicle.

Plain English Breakdown

The official source material does not provide specific details on penalties for non-compliance or consequences of failing to report election by manufacturers.

Restitution or Replacement for New Cars

The law changes the date when certain rules about getting money back or a replacement car from a manufacturer start to July 1, 2025 and requires manufacturers who want to follow these rules to report their election to a special program.

What This Bill Does

• Changes the date when certain rules about getting money back or a replacement car from a manufacturer start to July 1, 2025.
• Requires manufacturers who wish to be governed by these procedures to report their election to the Arbitration Certification Program within the Department of Consumer Affairs.

Who It Names or Affects

• Car manufacturers who want to follow new rules about fixing or replacing faulty vehicles.
• Consumers buying or selling cars with known issues.

Terms To Know

Restitution

Getting money back for something that is not working properly.

Arbitration Certification Program

A program within the Department of Consumer Affairs that oversees how manufacturers handle car issues.

Limits and Unknowns

• The bill does not specify what happens if a manufacturer fails to report their election by the deadline.
• It is unclear how this law will affect consumers who buy cars before July 1, 2025.
• There are no details on penalties for manufacturers or consumers who do not follow these new rules.

Official Summary Text

SB 26, Umberg.
Civil actions: restitution for or replacement of a new motor vehicle.
(1) Existing law prescribes specified procedures to govern actions seeking the restitution for or replacement of a new motor vehicle, or for civil penalties, pursuant to the provisions of the Song-Beverly Consumer Warranty Act or Tanner Consumer Protection Act. Beginning April 1, 2025, existing law will require the consumer to, prior to seeking civil penalties, provide a written notice to the manufacturer that, among other things, demands the manufacturer’s restitution for or replacement of the consumer’s vehicle.
This bill would provide that certain procedures described above would instead become operative on July 1, 2025. The bill would specify that the procedures described above would apply to the manufacturer of a motor vehicle only if the manufacturer elects to be governed by those procedures by reporting the election to
the Arbitration Certification Program within the Department of Consumer Affairs. The bill would require a manufacturer that wishes to make this election regarding its motor vehicles sold in the year 2025 and all prior years to make the election within 30 days after the effective date of this bill. Thereafter, the bill would require a manufacturer that wishes to make this election to make an irrevocable election, as specified, regarding motor vehicles sold during the five calendar years following the date of the election. The bill would require the Arbitration Certification Program within the Department of Consumer Affairs, by December 15 of each year, to publish to its website a list of the manufacturers that have elected to be governed by the procedures described above for a period that includes the following calendar year.
(2) Under existing law, beginning April 1, 2025, a consumer who demands restitution for or replacement of a new motor
vehicle may, if specified conditions are met, instead sell the vehicle and seek remedies against the manufacturer, including civil penalties.
This bill would change the operative date of that provision to July 1, 2025. The bill would prohibit a consumer who sells their vehicle after demanding restitution or replacement from seeking civil penalties unless the consumer provides to the prospective buyer or recipient of the vehicle, prior to the sale, written notice of the consumer’s basis for seeking restitution or replacement and of any pending action against the manufacturer, as specified.
This bill would declare that it is to take effect immediately as an urgency statute.

Current Bill Text

Download Bill PDF