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

Plain English Breakdown

The official source material does not provide specific details on what happens if a manufacturer chooses not to follow these rules or how many manufacturers will comply. The bill text and summary do not mention requirements for car makers to inform buyers of used cars about any issues with the vehicle before selling it.

Restitution or Replacement Procedures for New Motor Vehicles

The law changes the start date for new rules about getting back money or getting a replacement car from April 1, 2025, to July 1, 2025 and requires manufacturers to opt into these procedures.

What This Bill Does

• Changes the start date for new rules about getting back money or getting a replacement car from April 1, 2025, to July 1, 2025.
• Requires car manufacturers to choose if they want to follow certain procedures by reporting their choice to an official program within 30 days of the law taking effect.

Who It Names or Affects

• Car manufacturers
• Consumers buying or selling new and used vehicles

Terms To Know

Restitution

Getting back money you paid for something that was not as promised.

Replacement

Getting a new item instead of the one that did not work properly.

Limits and Unknowns

• The bill does not specify what happens if a manufacturer does not choose to follow these rules.
• It is unclear how many car manufacturers will join this program and comply with its requirements.

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