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Assembly committee approves SB 26 to allow automakers five-year opt-in to arbitration framework
Summary
The Assembly Judiciary Committee approved SB 26, which creates a five-year opt-in process giving automakers the choice to participate in the arbitration procedures created under AB 1755; consumer advocates expressed continued concerns about shortened timelines and financial deductions that could affect buyers.
The Assembly Judiciary Committee voted to approve SB 26, a bill that lets automakers choose whether to participate in the arbitration framework established by AB 1755, during a committee hearing where consumer advocates and several automakers testified in support.
SB 26 would require automakers that wish to remain under the AB 1755 arbitration procedures to notify the arbitration certification program in the Department of Consumer Affairs; that decision would apply for five years, proponents told the committee. Supporters said the measure preserves consumer access to arbitration while giving manufacturers an option they sought after last year’s changes to lemon-law procedures.
Senator Tom Umberg, the bill’s author in the hearing record, described SB 26 as a follow-up to AB 1755 and said the measure implements a…
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