agent Entrepreneur logo
MenuMENU
SearchSEARCH

Calif. Dealers Get Warranty Rate Hike, 10-Year Upgrade Intervals, CCPA Exemption

California Gov. Gavin Newsom has signed AB 179, enacting new dealer protections against below-market warranty reimbursement rates and OEM-ordered facility upgrades. The bill also allows dealers to issue recall notices without violating new data privacy rules.

Tariq Kamal
Tariq KamalFormer Associate Publisher
Read Tariq's Posts
October 15, 2019
Calif. Dealers Get Warranty Rate Hike, 10-Year Upgrade Intervals, CCPA Exemption

Calif. Gov. Gavin Newsom has signed a dealer protection bill similar to a measure vetoed by his predecessor a year ago.

Photo by World Economic Forum via Office of Governor Gavin Newsom

3 min to read


SACRAMENTO, Calif. — California Gov. Gavin Newsom signed Assembly Bill 179 on Saturday, making official an update to the state’s franchised dealer law. The bill affects retailers in three key areas: reimbursement for warranty work, facility upgrades ordered by manufacturers, and compliance with the California Consumer Privacy Act.

Read: Survey: 56% of Businesses Not Prepared for CCPA

Ad Loading...

• Warranty reimbursement: Vehicle manufacturers must now pay California dealers a warranty parts and labor reimbursement rate closer to that charged to consumers. California New Car Dealers Association officials had lobbied forcefully for this change, noting a near-40% spread between the going rates and the passage of similar bills in other states.

• Facility upgrades: AB 179 forbids factories from ordering dealers to renovate showrooms and other facilities in intervals of less than 10 years.

• CCPA compliance: California dealers and their manufacturers are permitted to notify owners of vehicles subject to recall without violating the California Consumer Privacy Act. The state’s enhanced data privacy rules go into effect Jan. 1.

“This bill brings California’s new motor vehicle franchise laws into the 21st century.”

“This is a significant step forward in our commitment to a stronger and more equitable new motor vehicle franchise system for California new car dealers,” said CNCDA President Brian Maas. “With AB 179 taking effect Jan. 1, 2020, this is a huge victory for all Californians, local businesses, and consumers alike. This bill brings California’s new motor vehicle franchise laws into the 21st century by establishing a level playing field between local independently owned dealerships and multinational vehicle manufacturers.

Ad Loading...

“Franchise laws exist to govern the relationship between dealers and manufacturers,” Maas added. “California was overdue for significant improvements in the laws that will continue to protect dealers, their businesses, and their patrons. We are pleased and encouraged that Gov. Newsom agrees and supports our approach to improvements in California’s franchise laws.”

A similar dealer protection bill was unexpectedly vetoed by former Gov. Jerry Brown last year. AB 2107 included 10 provisions, including the normalization of warranty reimbursement rates and 15-year factory upgrade intervals.

Read: Calif. Governor Vetoes Dealer Protection Bill

At the time, Brown expressed concern over unspecified complications.

“Under current law, manufacturers are required to reimburse dealers for warranty and recall repairs at a ‘reasonable’ rate negotiated between the two parties,” Brown wrote in a statement. “This framework appears to be working reasonably well and I see no reason to adopt the rather complicated formula authorized in this bill — with perhaps unintended consequences.”

Ad Loading...

Just over a year later, his successor signed the new bill — one of 68 passed into law on Saturday alone, part of a flurry of signatures and vetoes that closed California’s 2019 legislative session.

“We have clearly achieved a great deal together, and I commend the legislature for their hard work,” Newsom said in a release. “I look forward to our continued partnership as we head into the new year and continue to tackle challenges of affordability and work to expand opportunity to all Californians.”

Read: Opinion: States Lead the Way in Privacy Law

Originally posted on Auto Dealer Today

More Industry

Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ad Loading...
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Ad Loading...
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industry•by Lauren Lawrence•August 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...