LEGISLATIVE UPDATE — California Lemon Law Procedures (2024–2025)
Two bills have added new dispute resolution procedures that run alongside the Song-Beverly Consumer Warranty Act and Tanner Consumer Protection Act statutes below:
Assembly Bill 1755 (Kalra, Ch. 938, Stats. 2024) — Signed September 29, 2024; operative January 1, 2025 (most provisions) and April 1, 2025 (pre-suit notice requirement, §871.24). Added Chapter 12 (§§871.20–871.28) to the Code of Civil Procedure, establishing new procedures for actions seeking restitution or replacement of a motor vehicle under the Song-Beverly/Tanner Acts.
Senate Bill 26 (Umberg, Ch. 1, Stats. 2025) — Signed April 2, 2025; effective immediately (urgency statute). Amended §§871.20 and 871.24; added §§871.29 and 871.30. Made the Chapter 12 procedures elective rather than mandatory: they apply only to manufacturers who opt in. Manufacturers that do not elect remain governed by the existing Song-Beverly/Tanner statutes.
Effect on existing statutes below: Civil Code §§1793.22–1793.25 are unchanged and remain fully operative. The CCP Chapter 12 procedures (see new section at bottom of this page) apply only where a manufacturer has elected to proceed under them. At the time of sale, the manufacturer must notify the consumer which procedure governs their vehicle.
A current list of manufacturers that have elected the Chapter 12 procedures is published annually by December 15 by the California Department of Consumer Affairs Arbitration Certification Program at: https://www.dca.ca.gov/acp/
1790. This chapter may be cited as the "Song-Beverly Consumer Warranty Act."
(Added by Stats. 1970, Ch. 1333.)1790.1. Any waiver by the buyer of consumer goods of the provisions of this chapter, except as expressly provided in this chapter, shall be deemed contrary to public policy and shall be unenforceable and void.
(Added by Stats. 1970, Ch. 1333.)1790.2. If any provision of this chapter or the application thereof to any person or circumstance is held unconstitutional, such invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.
(Added by Stats. 1970, Ch. 1333.)1790.3. The provisions of this chapter shall not affect the rights and obligations of parties determined by reference to the Commercial Code except that, where the provisions of the Commercial Code conflict with the rights guaranteed to buyers of consumer goods under the provisions of this chapter, the provisions of this chapter shall prevail.
(Added by Stats. 1970, Ch. 1333.)1790.4. The remedies provided by this chapter are cumulative and shall not be construed as restricting any remedy that is otherwise available, and, in particular, shall not be construed to supplant the provisions of the Unfair Practices Act.
(Amended by Stats. 1976, Ch. 416.)
1793.22. (a) This section shall be known and may be cited as the Tanner Consumer Protection Act.(b) It shall be presumed that a reasonable number of attempts have been made to conform a new motor vehicle to the applicable express warranties if, within 18 months from delivery to the buyer or 18,000 miles on the odometer of the vehicle, whichever occurs first, one or more of the following occurs:
(1) The same nonconformity results in a condition that is likely to cause death or serious bodily injury if the vehicle is driven and the nonconformity has been subject to repair two or more times by the manufacturer or its agents, and the buyer or lessee has at least once directly notified the manufacturer of the need for the repair of the nonconformity.(c) If a qualified third-party dispute resolution process exists, and the buyer receives timely notification in writing of the availability of that qualified third-party dispute resolution process with a description of its operation and effect, the presumption in subdivision (b) may not be asserted by the buyer until after the buyer has initially resorted to the qualified third-party dispute resolution process as required in subdivision (d). Notification of the availability of the qualified third-party dispute resolution process is not timely if the buyer suffers any prejudice resulting from any delay in giving the notification. If a qualified third-party dispute resolution process does not exist, or if the buyer is dissatisfied with that third-party decision, or if the manufacturer or its agent neglects to promptly fulfill the terms of the qualified third-party dispute resolution process decision after the decision is accepted by the buyer, the buyer may assert the presumption provided in subdivision (b) in an action to enforce the buyer's rights under subdivision (d) of Section 1793.2. The findings and decision of a qualified third-party dispute resolution process shall be admissible in evidence in the action without further foundation. Any period of limitation of actions under any federal or California laws with respect to any person shall be extended for a period equal to the number of days between the date a complaint is filed with a third-party dispute resolution process and the date of its decision or the date before which the manufacturer or its agent is required by the decision to fulfill its terms if the decision is accepted by the buyer, whichever occurs later.(2) The same nonconformity has been subject to repair four or more times by the manufacturer or its agents and the buyer has at least once directly notified the manufacturer of the need for the repair of the nonconformity.
(3) The vehicle is out of service by reason of repair of nonconformities by the manufacturer or its agents for a cumulative total of more than 30 calendar days since delivery of the vehicle to the buyer. The 30-day limit shall be extended only if repairs cannot be performed due to conditions beyond the control of the manufacturer or its agents. The buyer shall be required to directly notify the manufacturer pursuant to paragraphs (1) and (2) only if the manufacturer has clearly and conspicuously disclosed to the buyer, with the warranty or the owner's manual, the provisions of this section and that of subdivision (d) of Section 1793.2, including the requirement that the buyer must notify the manufacturer directly pursuant to paragraphs (1) and (2). The notification, if required, shall be sent to the address, if any, specified clearly and conspicuously by the manufacturer in the warranty or owner's manual. This presumption shall be a rebuttable presumption affecting the burden of proof, and it may be asserted by the buyer in any civil action, including an action in small claims court, or other formal or informal proceeding.
(d) A qualified third-party dispute resolution process shall be one that does all of the following:
(1) Complies with the minimum requirements of the Federal Trade Commission for informal dispute settlement procedures as set forth in Part 703 of Title 16 of the Code of Federal Regulations, as those regulations read on January 1, 1987.(e) For the purposes of subdivision (d) of Section 1793.2 and this section, the following terms have the following meanings:(2) Renders decisions which are binding on the manufacturer if the buyer elects to accept the decision.
(3) Prescribes a reasonable time, not to exceed 30 days after the decision is accepted by the buyer, within which the manufacturer or its agent must fulfill the terms of its decisions.
(4) Provides arbitrators who are assigned to decide disputes with copies of, and instruction in, the provisions of the Federal Trade Commission's regulations in Part 703 of Title 16 of the Code of Federal Regulations as those regulations read on January 1, 1987, Division 2 (commencing with Section 2101) of the Commercial Code, and this chapter.
(5) Requires the manufacturer, when the process orders, under the terms of this chapter, either that the nonconforming motor vehicle be replaced if the buyer consents to this remedy or that restitution be made to the buyer, to replace the motor vehicle or make restitution in accordance with paragraph (2) of subdivision (d) of Section 1793.2.
(6) Provides, at the request of the arbitrator or a majority of the arbitration panel, for an inspection and written report on the condition of a nonconforming motor vehicle, at no cost to the buyer, by an automobile expert who is independent of the manufacturer.
(7) Takes into account, in rendering decisions, all legal and equitable factors, including, but not limited to, the written warranty, the rights and remedies conferred in regulations of the Federal Trade Commission contained in Part 703 of Title 16 of the Code of Federal Regulations as those regulations read on January 1, 1987, Division 2 (commencing with Section 2101) of the Commercial Code, this chapter, and any other equitable considerations appropriate in the circumstances. Nothing in this chapter requires that, to be certified as a qualified third-party dispute resolution process pursuant to this section, decisions of the process must consider or provide remedies in the form of awards of punitive damages or multiple damages, under subdivision (c) of Section 1794, or of attorneys' fees under subdivision (d) of Section 1794, or of consequential damages other than as provided in subdivisions (a) and (b) of Section 1794, including, but not limited to, reasonable repair, towing, and rental car costs actually incurred by the buyer.
(8) Requires that no arbitrator deciding a dispute may be a party to the dispute and that no other person, including an employee, agent, or dealer for the manufacturer, may be allowed to participate substantively in the merits of any dispute with the arbitrator unless the buyer is allowed to participate also. Nothing in this subdivision prohibits any member of an arbitration board from deciding a dispute.
(9) Obtains and maintains certification by the Department of Consumer Affairs pursuant to Chapter 9 (commencing with Section 472) of Division 1 of the Business and Professions Code.
(1) "Nonconformity" means a nonconformity which substantially impairs the use, value, or safety of the new motor vehicle to the buyer or lessee.(f)(2) "New motor vehicle" means a new motor vehicle that is bought or used primarily for personal, family, or household purposes. "New motor vehicle" also means a new motor vehicle with a gross vehicle weight under 10,000 pounds that is bought or used primarily for business purposes by a person, including a partnership, limited liability company, corporation, association, or any other legal entity, to which not more than five motor vehicles are registered in this state. "New motor vehicle" includes the chassis, chassis cab, and that portion of a motor home devoted to its propulsion, but does not include any portion designed, used, or maintained primarily for human habitation, a dealer-owned vehicle and a "demonstrator" or other motor vehicle sold with a manufacturer's new car warranty but does not include a motorcycle or a motor vehicle which is not registered under the Vehicle Code because it is to be operated or used exclusively off the highways. A demonstrator is a vehicle assigned by a dealer for the purpose of demonstrating qualities and characteristics common to vehicles of the same or similar model and type.
(3) "Motor home" means a vehicular unit built on, or permanently attached to, a self-propelled motor vehicle chassis, chassis cab, or van, which becomes an integral part of the completed vehicle, designed for human habitation for recreational or emergency occupancy.
(1) Except as provided in paragraph (2), no person shall sell, either at wholesale or retail, lease, or transfer a motor vehicle transferred by a buyer or lessee to a manufacturer pursuant to paragraph (2) of subdivision (d) of Section 1793.2 or a similar statute of any other state, unless the nature of the nonconformity experienced by the original buyer or lessee is clearly and conspicuously disclosed to the prospective buyer, lessee, or transferee, the nonconformity is corrected, and the manufacturer warrants to the new buyer, lessee, or transferee in writing for a period of one year that the motor vehicle is free of that nonconformity.
(2) Except for the requirement that the nature of the nonconformity be disclosed to the transferee, paragraph (1) does not apply to the transfer of a motor vehicle to an educational institution if the purpose of the transfer is to make the motor vehicle available for use in automotive repair courses.
(Amended Sec. 1, Ch. 679, Stats. 2000. Effective January 1, 2001.)
1793.23. (a) The Legislature finds and declares all of the following:
(1) That the expansion of state warranty laws covering new and used cars has given important and valuable protection to consumers.
(b) This section and Section 1793.24 shall be known, and may be cited as, the Automotive Consumer Notification Act.
(2) That, in states without this valuable warranty protection, used and irrepairable motor vehicles are being resold in the marketplace without notice to the subsequent purchaser.
(3) That other states have addressed this problem by requiring notices on the title of these vehicles or other notice procedures to warn consumers that the motor vehicles were repurchased by a dealer or manufacturer because the vehicle could not be repaired in a reasonable length of time or a reasonable number of repair attempts or the dealer or manufacturer was not willing to repair the vehicle.
(4) That these notices serve the interests of consumers who have a right to information relevant to their buying decisions.
(5) That the disappearance of these notices upon the transfer of title from another state to this state encourages the transport of lemons to this state for sale to the drivers of this state.
(c) Any manufacturer who reacquires or assists a dealer or lienholder to reacquire a motor vehicle registered in this state, any other state, or a federally administered district shall, prior to any sale, lease, or transfer of the vehicle in this state, or prior to exporting the vehicle to another state for sale, lease, or transfer if the vehicle was registered in this state and reacquired pursuant to paragraph (2) of subdivision (d) of Section 1793.2, cause the vehicle to be retitled in the name of the manufacturer, request the Department of Motor Vehicles to inscribe the ownership certificate with the notation Lemon Law Buyback, and affix a decal to the vehicle in accordance with Section 11713.12 of the Vehicle Code if the manufacturer knew or should have known that the vehicle is required by law to be replaced, accepted for restitution due to the failure of the manufacturer to conform the vehicle to applicable warranties pursuant to paragraph (2) of subdivision (d) of Section 1793.2, or accepted for restitution by the manufacturer due to the failure of the manufacturer to conform the vehicle to warranties required by any other applicable law of the state, any other state, or federal law.
(d) Any manufacturer who reacquires or assists a dealer or lienholder to reacquire a motor vehicle in response to a request by the buyer or lessee that the vehicle be either replaced or accepted for restitution because the vehicle did not conform to express warranties shall, prior to the sale, lease, or other transfer of the vehicle, execute and deliver to the subsequent transferee a notice and obtain the transferee s written acknowledgment of a notice, as prescribed by Section 1793.24.
(e) Any person, including any dealer, who acquires a motor vehicle for resale and knows or should have known that the vehicle was reacquired by the vehicle s manufacturer in response to a request by the last retail owner or lessee of the vehicle that it be replaced or accepted for restitution because the vehicle did not conform to express warranties shall, prior to the sale, lease, or other transfer, execute and deliver to the subsequent transferee a notice and obtain the transferee s written acknowledgment of a notice, as prescribed by Section 1793.24.
(f) Any person, including any manufacturer or dealer, who sells, leases, or transfers ownership of a motor vehicle when the vehicle s ownership certificate is inscribed with the notation Lemon Law Buyback shall, prior to the sale, lease, or ownership transfer of the vehicle, provide the transferee with a disclosure statement signed by the transferee that states: THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER DUE TO A DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE TO THIS VEHICLE HAS BEEN PERMANENTLY BRANDED WITH THE NOTATION LEMON LAW BUYBACK .
(g) The disclosure requirements in subdivisions (d), (e), and (f) are cumulative with all other consumer notice requirements and do not relieve any person, including any dealer or manufacturer, from complying with any other applicable law, including any requirement of subdivision (f) of Section 1793.22.
(h) For purposes of this section, dealer means any person engaged in the business of selling, offering for sale, or negotiating the retail sale of, a used motor vehicle or selling motor vehicles as a broker or agent for another, including the officers, agents, and employees of the person and any combination or association of dealers.
(Amended by Stats. 1998, Ch. 932, Sec. 7. Effective January 1, 1999.)
1793.24. (a) The notice required in subdivisions (d) and (e) of Section 1793.23 shall be prepared by the manufacturer of the reacquired vehicle and shall disclose all of the following:(1) Year, make, model, and vehicle identification number of the vehicle.
(b) The notice shall be on a form 81/2 x 11 inches in size and printed in no smaller than 10-point black type on a white background.
(2) Whether the title to the vehicle has been inscribed with the notation Lemon Law Buyback.
(3) The nature of each nonconformity reported by the original buyer or lessee of the vehicle.
(4) Repairs, if any, made to the vehicle in an attempt to correct each nonconformity reported by the original buyer or lessee.
The form shall only contain the following information prior to it being filled out by the manufacturer:
WARRANTY BUYBACK NOTICE
(Check One)
__/This vehicle was repurchased by the vehicle s manufacturer after the last retail owner or lessee requested its repurchase due to the problem(s) listed below.
__/THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER DUE TO A DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE TO THIS VEHICLE HAS BEEN PERMANENTLY BRANDED WITH THE NOTATION LEMON LAW BUYBACK. Under California law, the manufacturer must warrant to you, for a one year period, that the vehicle is free of the problem(s) listed below.
V.I.N.___________________________
Year ________
Make ___________________________
Model __________________________
Problem(s) Reported by Original Owner
Repairs Made, if any, to Correct Reported Problem(s)
___________________________________________
Signature of Manufacturer Date
___________________________________________
Signature of Dealer(s) Date
___________________________________________
Signature of Retail Buyer or Lessee Date
(c) The manufacturer shall provide an executed copy of the notice to the manufacturer s transferee. Each transferee, including a dealer, to whom the motor vehicle is transferred prior to its sale to a retail buyer or lessee shall be provided an executed copy of the notice by the previous transferor.
(Added by Stats. 1995, Ch. 503, Sec. 2. Effective January 1, 1996.)
1793.25. (a) Notwithstanding Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code, the State Board of Equalization shall reimburse the manufacturer of a new motor vehicle for an amount equal to the sales tax or use tax which the manufacturer pays to or for the buyer or lessee when providing a replacement vehicle pursuant to subparagraph (A) of paragraph (2) of subdivision (d) of Section 1793.2 or includes in making restitution to the buyer or lessee pursuant to subparagraph (B) of paragraph (2) of subdivision (d) of Section 1793.2, when the manufacturer provides satisfactory proof that it has complied with subdivision (c) of Section 1793.23, and satisfactory proof is provided for one of the following:(1) The retailer of the motor vehicle for which the manufacturer is making restitution has reported and paid the sales tax on the gross receipts from the sale of that motor vehicle.
(b) The State Board of Equalization may adopt rules and regulations to carry out, facilitate compliance with, or prevent circumvention or evasion of, this section.
(2) The buyer of the motor vehicle has paid the use tax on the sales price for the storage, use, or other consumption of that motor vehicle in this state.
(3) The lessee of the motor vehicle has paid the use tax on the rentals payable from the lease of that motor vehicle.
(c) This section shall not change the application of the sales and use tax to the gross receipts, the rentals payable, and the sales price from the sale, lease, and the storage, use, or other consumption, in this state of tangible personal property pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(d) The manufacturer s claim for reimbursement and the State Board of Equalization s approval or denial of the claim shall be subject to the provisions of Article 1 (commencing with Section 6901) of Chapter 7 of Part 1 of Division 2 of the Revenue and Taxation Code, except Sections 6907 and 6908, insofar as those provisions are not inconsistent with this section.
(e) For purposes of this section, the amount of use tax that the State Board of Equalization is required to reimburse the manufacturer shall be limited to the amount of use tax the manufacturer is required to pay to or for the lessee pursuant to Section 1793.2.
(Amended by Stats. 2011, Ch. 727, Sec. 2. Effective January 1, 2012.)
NOTE: The procedures in this chapter apply only to manufacturers that have elected to proceed under them. Manufacturers that have not elected remain governed by the Song-Beverly Consumer Warranty Act (Civil Code §§1790–1795.7) and Tanner Consumer Protection Act (§1793.22) above. At the time of new vehicle sale, the manufacturer must notify the consumer which procedure governs their vehicle. See California DCA Arbitration Certification Program for the current list of electing manufacturers.871.20. (a) Notwithstanding any other law, this chapter applies to an action, brought against a manufacturer who has elected under Section 871.29 to proceed under this chapter, seeking restitution or replacement of a motor vehicle pursuant to subdivision (b) or (d) of Section 1793.2, Section 1793.22, or Section 1794 of the Civil Code, or for civil penalties pursuant to subdivision (c) of Section 1794 of the Civil Code, where the request for restitution or replacement is based on noncompliance with the applicable express warranty.
(b) This chapter does not apply to service contract claims under Section 1794 of the Civil Code or any action seeking remedies that are not restitution or replacement of a motor vehicle.
(Amended by Stats. 2025, Ch. 1, Sec. 1 (SB 26). Effective April 2, 2025.)871.21. (a) An action covered by Section 871.20 shall be commenced within one year after the expiration of the applicable express warranty.
(b) Notwithstanding subdivision (a), an action covered by Section 871.20 shall not be brought later than six years after the date of original delivery of the motor vehicle.
(c) The time periods prescribed in subdivisions (a) and (b) shall be tolled as follows:(1) As provided by tolling requirements prescribed in subdivision (c) of Section 1793.22 of the Civil Code, as applicable.(Added by Stats. 2024, Ch. 938, Sec. 1 (AB 1755). Effective January 1, 2025.)
(2) For the time the motor vehicle is out of service by reason of repair for any nonconformity.
(3) For the time period after a pre-suit notice is provided to the manufacturer in accordance with Section 871.24, which time period shall not exceed 60 days.871.22. For purposes of this chapter, the following definitions apply:
(a) "Applicable express warranty" means the written warranty provided by the manufacturer at the time of delivery of the subject motor vehicle, which provides coverage for the specific nonconformity at issue in the action, subject to the terms and exclusions of that warranty.
(b) "Distributor" means any individual, partnership, corporation, association, or other legal relationship that stands between the manufacturer and the retail seller in purchases, consignments, or contracts for sale of consumer goods or motor vehicles.
(c) "Manufacturer" has the same meaning as defined in subdivision (a) of Section 1793.22 of the Civil Code and includes a distributor.
(d) "Motor vehicle" has the same meaning as "new motor vehicle" as defined in subdivision (e) of Section 1793.22 of the Civil Code.
(Added by Stats. 2024, Ch. 938, Sec. 1 (AB 1755). Effective January 1, 2025.)871.23. (a) In a civil action subject to this chapter, a prevailing buyer shall be allowed by the court to recover the following:
(1) Restitution as provided in subdivision (d) of Section 1793.2 of the Civil Code and Section 871.27, or replacement of the motor vehicle as provided in subdivision (d) of Section 1793.2 of the Civil Code.(Added by Stats. 2024, Ch. 938, Sec. 1 (AB 1755). Effective January 1, 2025.)
(2) Civil penalties as provided in subdivision (c) of Section 1794 of the Civil Code.
(3) Reasonable attorney's fees and costs as provided in subdivision (d) of Section 1794 of the Civil Code.871.24. (a) At least 30 days prior to the commencement of an action seeking civil penalties under subdivision (c) of Section 1794 of the Civil Code, the consumer shall do all of the following:
(1) Notify the manufacturer of the consumer's name, the accurate Vehicle Identification Number ("VIN") of the motor vehicle, and a brief summary of the repair history and problems with the motor vehicle.(b) Minor deviations in the notice submitted pursuant to subdivision (a) shall not disqualify consumers from seeking civil penalties.
(2) Demand that the manufacturer repurchase or replace the motor vehicle.
(c) At the time that notice submitted pursuant to subdivision (a) is sent, the consumer shall have possession of the motor vehicle.
(d) The notice required by subdivision (a) shall be in writing and shall be sent either by email to the email address prominently displayed on the manufacturer's website for this purpose or by certified or registered mail, return receipt requested, to the address provided by the manufacturer in the owner's manual or warranty booklet.
(e) A manufacturer shall be deemed to have complied with subdivision (a) of Section 1793.2 of the Civil Code and shall not be liable for civil penalties under subdivision (c) of Section 1794 of the Civil Code if, within 30 days after receipt of the notice, the manufacturer makes an offer of restitution or replacement of the motor vehicle for the amount provided by subdivision (a) of Section 1793.2 of the Civil Code and Section 871.27, plus reasonable attorney's fees and costs, if the consumer is represented by an attorney, and the motor vehicle replacement or restitution is completed within 60 days from the date of receipt of the original notice. The consumer shall comply in good faith with reasonable requests from the manufacturer for documentation required to complete the requested restitution or replacement of the motor vehicle. A prelitigation dispute as to attorney's fees and costs shall be resolved by neutral, binding arbitration.
(f) If the manufacturer does not offer restitution or replacement of the motor vehicle within 30 days of receiving the consumer's notice, the consumer shall be permitted to sell their motor vehicle and seek remedies, including, but not limited to, civil penalties under subdivision (c) of Section 1794 of the Civil Code.
(g) An action seeking restitution or replacement under Section 871.20 may be commenced without compliance with subdivision (a). In that event, the consumer shall have possession of the motor vehicle at the time of the filing of the complaint, and shall not seek civil penalties, whether by amendment of the complaint or otherwise.
(Amended by Stats. 2025, Ch. 1, Sec. 2 (SB 26). Effective April 2, 2025.)871.25. (a) Any release executed in connection with a settlement of an action subject to this chapter shall be on a standardized form developed by the Judicial Council.
(b) A manufacturer shall not make a settlement contingent on the execution of any release other than the standardized release described in subdivision (a).
(Added by Stats. 2024, Ch. 938, Sec. 1 (AB 1755). Effective January 1, 2025.)871.26. (a) This section only applies to a civil action seeking restitution or replacement of a motor vehicle pursuant to Section 871.20.
(b) Within 60 days after the filing of the answer or other responsive pleading, all parties shall, without awaiting a discovery request, provide to all other parties an initial disclosure and documents pursuant to subdivisions (f), (g), and (h).
(c) Within 120 days after the filing of the answer or other responsive pleading, all parties have the right to conduct initial depositions, each not to exceed two hours, of the following deponents:(1) The plaintiff consumer.(d) Within 90 days after filing of the answer or other responsive pleading, all parties shall schedule a mediation to occur within 150 days after filing of the answer or other responsive pleading with a court-appointed mediator or a mediator agreed upon by the parties.
(2) The defendant, and if the defendant is not a natural person, the person who is most qualified to testify on the defendant's behalf, limited to the topics listed in subdivision (i).
(l) In addition to the requirements prescribed by subdivision (a), this section only applies to a civil action filed on or after January 1, 2025.
(Added by Stats. 2024, Ch. 938, Sec. 1 (AB 1755). Effective January 1, 2025.)871.27. (a) For purposes of this section, "restitution" means the amount described in subparagraph (B) of paragraph (2) of subdivision (d) of Section 1793.2 of the Civil Code.
(b) In addition to the amounts described in subdivision (a), restitution under this chapter shall include amounts paid or payable for optional equipment and accessories, theft-deterrent devices, surface-protection products, service contracts, extended warranties, debt-cancellation agreements, and guaranteed asset protection ("GAP") financing supplied by the selling or leasing dealership or an authorized retail facility for the manufacturer.
(c) Restitution under this chapter shall not include any negative equity from a prior vehicle trade-in that was incorporated into the financing of the subject motor vehicle.
(e) For a leased motor vehicle, amounts paid or payable by the lessee under an existing agreement to extend a lease term shall be allowable as damages, provided the lease extension is activated by the consumer no later than 30 days after delivering pre-suit notice or filing a lawsuit, whichever is earlier.
(g) A manufacturer shall not make settlement contingent on the execution of any release other than the standardized release in Section 871.25. The manufacturer shall pay the consumer the restitution amount at the time the consumer returns the vehicle. The manufacturer shall pay the vehicle payoff amount, attorney's fees, and relevant civil penalties within one business day of the vehicle return. A manufacturer shall complete a repurchase or replacement within 30 days from the date the manufacturer receives the signed release from the consumer or consumer's counsel. If the manufacturer fails to complete the repurchase or replacement within 30 days, the manufacturer shall pay a penalty of $50 per day until completion.
(Added by Stats. 2024, Ch. 938, Sec. 1 (AB 1755). Effective January 1, 2025.)871.28. (a) In any action subject to this chapter, a court may award sanctions against a party or attorney who fails to comply with the disclosure and discovery requirements of Section 871.26 or the settlement payment requirements of Section 871.27, after notice and an opportunity to be heard.
(Added by Stats. 2024, Ch. 938, Sec. 1 (AB 1755). Effective January 1, 2025.)871.29. (a)
(1) A manufacturer may elect to be governed by this chapter for all actions described in subdivision (a) of Section 871.20 with respect to all of the manufacturer's motor vehicles sold during a period of five consecutive calendar years by providing written notice of that election to the Arbitration Certification Program within the Department of Consumer Affairs by October 31 of the preceding calendar year, except as provided in Section 871.30.(b) Unless a manufacturer has made the election described in subdivision (a) that covers a given year, Sections 871.20 to 871.28, inclusive, shall not apply to an action described in subdivision (a) of Section 871.20 with respect to all of the manufacturer's vehicles sold new during that year, except as provided in Section 871.30.
(2) A manufacturer who makes the election described in paragraph (1) may not revoke that election during the five-year period covered by the election, but the manufacturer may make a new election under paragraph (1) that will cover motor vehicles sold in a subsequent five-year period.
(c) By December 15 of each year, the Arbitration Certification Program within the Department of Consumer Affairs shall publish to its website a list of the manufacturers that have elected to proceed under this chapter for a period that includes the following calendar year, except as provided in Section 871.30.
(d) At the time a motor vehicle is sold new, a manufacturer shall provide notice to a consumer specifying which one of the following procedures governs the vehicle:(1) The procedures set forth in this chapter.(Added by Stats. 2025, Ch. 1, Sec. 3 (SB 26). Effective April 2, 2025.)
(2) The procedures set forth in Article 3 (commencing with Section 1792) of Chapter 1 of Title 1.7 of Part 4 of Division 3 of the Civil Code.871.30. (a) Notwithstanding Section 871.29, a manufacturer that has not previously made an election under Section 871.29 may make an initial election to be governed by this chapter covering motor vehicles sold new in 2025 and the preceding four years (2021–2024) by providing written notice of that election to the Arbitration Certification Program within the Department of Consumer Affairs no later than December 31, 2025.
(b) A manufacturer making the initial election under subdivision (a) shall be governed by this chapter for actions filed on or after the effective date of this section concerning motor vehicles sold new in 2021 through 2025, including actions already filed as of the effective date of this section.
(c) Unless a manufacturer has made the election described in subdivision (a), Sections 871.20 to 871.28, inclusive, shall not apply to actions with respect to all of its vehicles sold new in the year 2025 and in all prior years.
(Added by Stats. 2025, Ch. 1, Sec. 4 (SB 26). Effective April 2, 2025.)