Senate committee advances SB 26 to Appropriations to clarify manufacturer opt‑out under AB 1755

The California State Senate Committee on Business, Professions and Economic Development voted to pass SB 26 as amended to the Senate Appropriations Committee, advancing a cleanup to last year’s AB 1755 lemon law changes and adding language that allows automakers to opt out and revert to prior law.

SB 26, presented to the committee by Senator Umberg, clarifies implementation details of AB 1755 and creates an opt‑in/opt‑out pathway for manufacturers that were not part of negotiations on AB 1755. Proponents said the bill will speed consumer redress and align definitions across statutes; opponents said the changes still reduce protections for some owners.

"We believe the bill will help consumers get redressed faster for defective vehicles," Sabina Taca of the Consumer Attorneys of California told the committee in support of SB 26. Matt Kloeffenstein of Summit Advocacy, speaking for a coalition that included Volkswagen Group of America, said the bill "creates an opt in option" that will allow manufacturers flexibility in handling customer relations.

Consumer advocate Rosemary Shahan, president of Consumers for Auto Reliability and Safety, testified in opposition and said the bill leaves outstanding harms from AB 1755. "The amount they can get is being reduced under AB 17 55 by the amount of negative equities ... on average, that's about $6,000," Shahan said, adding that many owners could be unable to obtain refunds if they cannot pay that negative equity out of pocket. She also raised concerns that consumers might not know they must send formal written notice to a specified email or mailing address to preserve rights under the law.

Committee members spoke about weighing the competing goals of faster resolutions and preserving California’s historic consumer protections. The committee’s chair emphasized the need to monitor implementation, asking whether consumers can reliably get to work and school while a case is pending and whether manufacturers are using the opt‑in/opt‑out provision in practice.

Senator Umberg described SB 26 as aimed at expediting lemon‑law challenges, clarifying notice requirements and reducing litigation costs. The author said the bill aligns definitions with prior law and provides oversight mechanisms to review how AB 1755 is functioning once implemented.

On a roll call, the committee voted to pass SB 26 as amended to the Senate Appropriations Committee. Several members recorded aye votes during the roll call; the clerk announced the measure as "due pass" and that eight affirmative votes carried the item forward.

Committee members and witnesses said the bill will be revisited after implementation to assess whether consumers are receiving timely remedies and whether further fixes are needed. The committee did not adopt any amendments at final reading that were described as changing the bill’s consumer notice or refund calculations on the floor of the hearing.

Votes at a glance: SB 26 — Motion to pass as amended to Senate Appropriations Committee; outcome: passed (committee announced eight yes votes).