California New Laws β€” Car Prices, 3-Day Used Car Refunds & More

California New Laws
Governor Newsom signing the bill. [Provided by the Governor’s Office]

Governor Gavin Newsom signs legislation as regulations change across California.

Automobile dealers must clearly disclose vehicle prices from the start, kindergarteners through second graders will be required to take basic math assessments, and penalties for insurance companies during disasters like wildfires will be strengthened.

The first regulation to take effect is the consumer protection rule for car buyers. The California Car Retail Fraud Prevention Act (SB 766), which went into effect on the 1st, requires car dealers to clearly state the total selling price of a vehicle during advertisements or price negotiations. It strictly prohibits presenting different prices for ads and actual sales, or making false statements about financing terms or vehicle inventory.

Regulations on used car returns have also been strengthened. Used cars priced at $50,000 or less can receive a full refund if returned within 3 days of purchase. However, the mileage must not exceed 400 miles after purchase, and dealers may charge a restocking fee.

Math evaluations targeting early elementary school students have also been mandated.

Under SB 1067, kindergarteners and 1st and 2nd-grade students in California will take basic math proficiency assessments annually. This measure aims to early identify and support students struggling with math.

This is a response to persistent issues regarding the decline in math skills among California students. Last year, only 37% of California students met grade-level math proficiency. Recently, over 3,000 professors at the University of California even demanded the resurrection of the SAT, stating they have to reteach middle school-level math to some freshmen.

Homeowners insurance regulations against major disasters like wildfires are also being strengthened.

SB 876, signed by Governor Gavin Newsom on the 27th of last month, doubles the maximum fines for insurance companies violating related laws during states of emergency.

Insurance coverage is also expanding. Insurance companies must offer policyholders products that cover at least 50% of the home coverage limit in case reconstruction costs exceed the policy limit.

Additional living expenses paid when losing a home in a disaster will now include temporary housing, food, and transportation, as well as furniture rental and pet boarding costs. Insurance companies must also establish disaster response plans and claims management systems. This law will be implemented in phases starting next year.

Child marriage is also banned. With Governor Newsom signing AB 1267 on the 30th of last month, the minimum age for marriage and domestic partnership has been set at 18. Existing regulations allowing minors to marry with parental consent and court approval have been abolished.

Additionally, SB 947 prevents employers from relying solely on automation systems such as artificial intelligence (AI) to fire or discipline employees. Regulations were also established to require prior notice in the event of large-scale layoffs driven by AI.