Ben Allen
- Democratic
- Senator
- District 24
Author
Existing law governs motor vehicle conditional sale contracts, as defined, and requires a seller, prior to the execution of a conditional sale contract, to make certain disclosures to the buyer, including a description and the price of each item sold if the contract includes a charge for the item, and the sum of all of those charges. Existing law prohibits a dealer from selling specified used vehicles at retail to an individual for personal, family, or household use without offering the buyer a contract cancellation option agreement that allows the buyer to return the vehicle without cause. Existing law sets forth certain requirements for the contract cancellation option agreement, including prescribing the purchase price for the contract cancellation option and requiring specified disclosures. This bill would enact the California Combating Auto Retail Scams (CARS) Act. The bill would define the terms "vehicle" and "used vehicle" for these purposes. The bill would make it a violation of the act for a dealer to make any misrepresentation regarding material information about specified matters relating to the vehicle sale, including the costs or terms of purchasing, financing, or leasing a vehicle, the availability of vehicles at a total price communicated by the dealer, and the remedy available if a dealer fails to sell or lease a vehicle at the total price, as defined. The bill would also make it a violation of the act for a dealer to fail to make certain disclosures clear and conspicuous, including specified information relating to the total price and any add-on products or services, and would exempt from that provision a used vehicle sold at an auction, as defined. The bill would make it a violation of the act for a dealer, in connection with the sale or financing of a vehicle, to charge for certain items, including an add-on product or service if the vehicle purchaser or lessee would not benefit from the add-on product or service. The bill would repeal the above-described contract cancellation option agreement requirement and would instead prohibit a dealer from selling or leasing specified used vehicles without providing the purchaser or lessee a 3-day right to cancel the purchase or lease, as provided. The bill would require a dealer to create and retain, for a period of 2 years from the date the record is created, all records necessary to demonstrate compliance with the act, including specified records. The bill would make its provisions operative on October 1, 2026. The bill would make related conforming changes.
Chaptered by Secretary of State. Chapter 354, Statutes of 2025.
Approved by the Governor.
Enrolled and presented to the Governor at 11 a.m.
Assembly amendments concurred in. (Ayes 30. Noes 8. Page 2894.) Ordered to engrossing and enrolling.
Read third time. Passed. (Ayes 76. Noes 1. Page 3169.) Ordered to the Senate.
In Senate. Concurrence in Assembly amendments pending.
Ordered to third reading.
Read third time and amended.
Ordered to third reading.
Read third time and amended.
Read second time. Ordered to third reading.
Read second time and amended. Ordered to second reading.
From committee: Do pass as amended. (Ayes 11. Noes 0.) (July 16).
From committee with author's amendments. Read second time and amended. Re-referred to Com. on P. & C.P.
From committee: Do pass and re-refer to Com. on P. & C.P. (Ayes 9. Noes 1.) (July 1). Re-referred to Com. on P. & C.P.
Coauthors revised.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
June 17 hearing postponed by committee.
In Assembly. Read first time. Held at Desk.
Read third time. Passed. (Ayes 27. Noes 9. Page 1377.) Ordered to the Assembly.
Read second time. Ordered to third reading.
From committee: Do pass as amended. (Ayes 5. Noes 1. Page 1212.) (May 23).
Read second time and amended. Ordered to second reading.
Set for hearing May 23.
May 19 hearing: Placed on APPR. suspense file.
Set for hearing May 19.
Read second time and amended. Re-referred to Com. on APPR.
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0. Page 943.) (April 29).
Set for hearing April 29.
Read second time and amended. Re-referred to Com. on JUD.
From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 9. Noes 3. Page 711.) (April 8).
Set for hearing April 8.
Referred to Coms. on TRANS., JUD., and APPR.
From printer. May be acted upon on or after March 24.
Read first time.
Introduced. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB766 | HTML |
| 02/21/25 - Introduced | |
| 04/10/25 - Amended Senate | |
| 05/01/25 - Amended Senate | |
| 05/23/25 - Amended Senate | |
| 06/13/25 - Amended Assembly | |
| 06/26/25 - Amended Assembly | |
| 07/14/25 - Amended Assembly | |
| 07/17/25 - Amended Assembly | |
| 08/29/25 - Amended Assembly | |
| 09/05/25 - Amended Assembly | |
| 09/16/25 - Enrolled | |
| 10/06/25 - Chaptered |
| Document | Format |
|---|---|
| 04/04/25- Senate Transportation | |
| 04/25/25- Senate Judiciary | |
| 05/19/25- Senate Appropriations | |
| 05/24/25- Senate Appropriations | |
| 05/27/25- Sen. Floor Analyses | |
| 06/28/25- Assembly Judiciary | |
| 08/08/25- Assembly Privacy and Consumer Protection | |
| 08/18/25- ASSEMBLY FLOOR ANALYSIS | |
| 09/03/25- ASSEMBLY FLOOR ANALYSIS | |
| 09/05/25- ASSEMBLY FLOOR ANALYSIS | |
| 09/10/25- Sen. Floor Analyses |
Data on Open States is updated periodically throughout the day from the official website of the California State Legislature.
If you notice any inconsistencies with these official sources, feel free to file an issue.