On January 29, 2025, California Senate Bill 26 was introduced in the California State Legislature, aiming to amend existing procedures related to the restitution and replacement of new motor vehicles. The bill seeks to provide manufacturers with a streamlined process to opt out of certain provisions established by Assembly Bill 1755, which is set to become operative on April 1, 2025.

The primary focus of SB 26 is to allow manufacturers to elect to be governed by a new chapter concerning actions related to vehicles sold new in 2025 and prior years. Specifically, manufacturers must notify the Department of Consumer Affairs within 30 days of the bill's effective date if they choose to proceed under the new regulations. Following this, the Department is required to publish a list of manufacturers who have made this election within 60 days.

Key provisions of the bill include the stipulation that if a manufacturer does not opt in, the existing procedures outlined in Sections 871.20 to 871.28 will not apply to any actions related to vehicles sold in 2025 and earlier. This provision is designed to provide clarity and flexibility for manufacturers in navigating the legal landscape surrounding vehicle restitution and replacement.

The urgency of the bill is underscored by its classification as an urgency statute, which allows it to take effect immediately upon passage. The rationale for this urgency is rooted in the need to ensure that manufacturers have adequate time to make informed decisions regarding their compliance with the new procedures before the April deadline.

Debate surrounding SB 26 has centered on its implications for consumer rights and manufacturer accountability. Critics argue that the bill may weaken protections for consumers seeking restitution for defective vehicles, while supporters contend that it provides necessary flexibility for manufacturers in a rapidly evolving automotive market.

As the bill progresses through the legislative process, its potential impact on both the automotive industry and consumer rights will be closely monitored. Stakeholders from various sectors are expected to weigh in as discussions unfold, highlighting the bill's significance in shaping the future of vehicle sales and consumer protection in California.