California has launched a new website allowing vehicle manufacturers to opt into AB 1755, a recently implemented law that streamlines lemon law claims. The website rollout follows the passage of Senate Bill 26, which was signed into law by Governor Gavin Newsom as a cleanup measure for AB 1755.
The Arbitration Certification Program, part of the Department of Consumer Affairs, is managing the opt-in system. The site includes an opt-in form, procedural instructions, and a list of manufacturers who have already opted in.
Manufacturers have until May 1 to decide whether to opt into the new procedures under AB 1755. Those who choose to participate will be subject to its requirements for five years, after which they may opt in again.
AB 1755 took effect on January 1, aiming to expedite lemon law claims by updating dispute resolution processes. Senate Bill 26 was enacted to give manufacturers, particularly smaller ones, greater flexibility.
“The intent of the SB 26 legislation is twofold. First, it allows manufacturers (especially smaller manufacturers that may find some of the procedures in AB 1755 unworkable or unnecessary to streamline their cases) to continue under the previous procedural rules governing lemon law claims,” the association said in a News and Insights report of RVIA.
SB 26 accomplishes this flexibility by establishing a formal opt-in procedure. Manufacturers who do not wish to follow AB 1755 can continue under the previous rules without taking any action.
The legislation also aims to protect consumers by encouraging the disclosure of active lemon law claims to potential buyers of used vehicles.
Those who opt in must provide written notice to the Arbitration Certification Program. The program is responsible for managing and monitoring compliance with the opt-in process.
Manufacturers that miss the initial May 1 deadline will have future opportunities to opt in. However, delayed participation will exclude prior model years from AB 1755’s coverage.