California 2025-2026 Regular Session

California Senate Bill SB82 Latest Draft

Bill / Amended Version Filed 04/10/2025

                            Amended IN  Senate  April 10, 2025 Amended IN  Senate  March 17, 2025 Amended IN  Senate  February 27, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 82Introduced by Senator UmbergJanuary 17, 2025An act to add Section 1670.15 to the Civil Code, relating to contracts.LEGISLATIVE COUNSEL'S DIGESTSB 82, as amended, Umberg. Contracts: consumer goods and services: agreements to arbitrate. dispute resolution provisions.Existing law regulates the formation and enforcement of contracts, including imposing certain restrictions on the terms of a contract for the sale or lease of consumer goods or services. In this regard, existing law prohibits a provision waiving the consumers right to make any statement regarding the seller, lessor, or its employees or agents, or concerning the goods or services. Existing law also prohibits a consumer service contract from limiting a consumers ability to file a complaint with a licensing board that regulates the consumer service provider or to participate in the boards investigation into the consumer service provider, as specified.This bill would, for contracts for the sale or lease of consumer goods or services entered into on or after January 1, 2026, require an agreement to arbitrate to be limited to a claim arising out of and relating to the contract containing the agreement to arbitrate. a consumer use agreement, limit the dispute resolution terms and conditions to the use, payment, or provision of the good, service, money, or credit provided by the consumer use agreement. The bill would make a violation of this requirement or a waiver of these provisions void and unenforceable, as provided. provided, and would require that the provisions be liberally construed for the purpose of protecting consumers. The bill would provide that the duties and obligations it imposes are cumulative with, and do not limit or expand, duties and obligations imposed under any other law, and do not limit any rights or remedies under any other law. The bill would define terms for purposes of these provisions.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1670.15 is added to the Civil Code, to read:1670.15. (a) For a contract for the sale or lease of consumer goods or services entered into on or after January 1, 2026, an agreement to arbitrate shall be limited to a claim arising out of and relating to the contract containing the agreement to arbitrate. As used in this section, the following definitions shall apply:(b)An agreement to arbitrate that violates subdivision (a) is void and unenforceable.(1) Consumer has the same meaning as defined in subdivision (c) of Section 302 of the Business and Professions Code.(2) Consumer use agreement means a contract between a person and a consumer that the consumer enters into in order to use, receive, or otherwise enjoy a good, service, money, or credit.(3) Person has the same meaning as defined in subdivision (d) of Section 302 of the Business and Professions Code.(b) Dispute resolution terms and conditions of a consumer use agreement shall be limited to the use, payment, or provision of the good, service, money, or credit provided by that consumer use agreement.(c) A waiver of the provisions of this section is contrary to public policy and void and unenforceable.(d) This section shall be liberally construed for the purpose of protecting consumers.(e) The duties and obligations imposed by this section are cumulative with duties or obligations imposed under any other law, shall not be construed to relieve any party from any duties or obligations imposed under any other law, and do not limit any rights or remedies under any other law.

 Amended IN  Senate  April 10, 2025 Amended IN  Senate  March 17, 2025 Amended IN  Senate  February 27, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 82Introduced by Senator UmbergJanuary 17, 2025An act to add Section 1670.15 to the Civil Code, relating to contracts.LEGISLATIVE COUNSEL'S DIGESTSB 82, as amended, Umberg. Contracts: consumer goods and services: agreements to arbitrate. dispute resolution provisions.Existing law regulates the formation and enforcement of contracts, including imposing certain restrictions on the terms of a contract for the sale or lease of consumer goods or services. In this regard, existing law prohibits a provision waiving the consumers right to make any statement regarding the seller, lessor, or its employees or agents, or concerning the goods or services. Existing law also prohibits a consumer service contract from limiting a consumers ability to file a complaint with a licensing board that regulates the consumer service provider or to participate in the boards investigation into the consumer service provider, as specified.This bill would, for contracts for the sale or lease of consumer goods or services entered into on or after January 1, 2026, require an agreement to arbitrate to be limited to a claim arising out of and relating to the contract containing the agreement to arbitrate. a consumer use agreement, limit the dispute resolution terms and conditions to the use, payment, or provision of the good, service, money, or credit provided by the consumer use agreement. The bill would make a violation of this requirement or a waiver of these provisions void and unenforceable, as provided. provided, and would require that the provisions be liberally construed for the purpose of protecting consumers. The bill would provide that the duties and obligations it imposes are cumulative with, and do not limit or expand, duties and obligations imposed under any other law, and do not limit any rights or remedies under any other law. The bill would define terms for purposes of these provisions.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO 

 Amended IN  Senate  April 10, 2025 Amended IN  Senate  March 17, 2025 Amended IN  Senate  February 27, 2025

Amended IN  Senate  April 10, 2025
Amended IN  Senate  March 17, 2025
Amended IN  Senate  February 27, 2025

 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION

 Senate Bill 

No. 82

Introduced by Senator UmbergJanuary 17, 2025

Introduced by Senator Umberg
January 17, 2025

An act to add Section 1670.15 to the Civil Code, relating to contracts.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

SB 82, as amended, Umberg. Contracts: consumer goods and services: agreements to arbitrate. dispute resolution provisions.

Existing law regulates the formation and enforcement of contracts, including imposing certain restrictions on the terms of a contract for the sale or lease of consumer goods or services. In this regard, existing law prohibits a provision waiving the consumers right to make any statement regarding the seller, lessor, or its employees or agents, or concerning the goods or services. Existing law also prohibits a consumer service contract from limiting a consumers ability to file a complaint with a licensing board that regulates the consumer service provider or to participate in the boards investigation into the consumer service provider, as specified.This bill would, for contracts for the sale or lease of consumer goods or services entered into on or after January 1, 2026, require an agreement to arbitrate to be limited to a claim arising out of and relating to the contract containing the agreement to arbitrate. a consumer use agreement, limit the dispute resolution terms and conditions to the use, payment, or provision of the good, service, money, or credit provided by the consumer use agreement. The bill would make a violation of this requirement or a waiver of these provisions void and unenforceable, as provided. provided, and would require that the provisions be liberally construed for the purpose of protecting consumers. The bill would provide that the duties and obligations it imposes are cumulative with, and do not limit or expand, duties and obligations imposed under any other law, and do not limit any rights or remedies under any other law. The bill would define terms for purposes of these provisions.

Existing law regulates the formation and enforcement of contracts, including imposing certain restrictions on the terms of a contract for the sale or lease of consumer goods or services. In this regard, existing law prohibits a provision waiving the consumers right to make any statement regarding the seller, lessor, or its employees or agents, or concerning the goods or services. Existing law also prohibits a consumer service contract from limiting a consumers ability to file a complaint with a licensing board that regulates the consumer service provider or to participate in the boards investigation into the consumer service provider, as specified.

This bill would, for contracts for the sale or lease of consumer goods or services entered into on or after January 1, 2026, require an agreement to arbitrate to be limited to a claim arising out of and relating to the contract containing the agreement to arbitrate. a consumer use agreement, limit the dispute resolution terms and conditions to the use, payment, or provision of the good, service, money, or credit provided by the consumer use agreement. The bill would make a violation of this requirement or a waiver of these provisions void and unenforceable, as provided. provided, and would require that the provisions be liberally construed for the purpose of protecting consumers. The bill would provide that the duties and obligations it imposes are cumulative with, and do not limit or expand, duties and obligations imposed under any other law, and do not limit any rights or remedies under any other law. The bill would define terms for purposes of these provisions.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 1670.15 is added to the Civil Code, to read:1670.15. (a) For a contract for the sale or lease of consumer goods or services entered into on or after January 1, 2026, an agreement to arbitrate shall be limited to a claim arising out of and relating to the contract containing the agreement to arbitrate. As used in this section, the following definitions shall apply:(b)An agreement to arbitrate that violates subdivision (a) is void and unenforceable.(1) Consumer has the same meaning as defined in subdivision (c) of Section 302 of the Business and Professions Code.(2) Consumer use agreement means a contract between a person and a consumer that the consumer enters into in order to use, receive, or otherwise enjoy a good, service, money, or credit.(3) Person has the same meaning as defined in subdivision (d) of Section 302 of the Business and Professions Code.(b) Dispute resolution terms and conditions of a consumer use agreement shall be limited to the use, payment, or provision of the good, service, money, or credit provided by that consumer use agreement.(c) A waiver of the provisions of this section is contrary to public policy and void and unenforceable.(d) This section shall be liberally construed for the purpose of protecting consumers.(e) The duties and obligations imposed by this section are cumulative with duties or obligations imposed under any other law, shall not be construed to relieve any party from any duties or obligations imposed under any other law, and do not limit any rights or remedies under any other law.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Section 1670.15 is added to the Civil Code, to read:1670.15. (a) For a contract for the sale or lease of consumer goods or services entered into on or after January 1, 2026, an agreement to arbitrate shall be limited to a claim arising out of and relating to the contract containing the agreement to arbitrate. As used in this section, the following definitions shall apply:(b)An agreement to arbitrate that violates subdivision (a) is void and unenforceable.(1) Consumer has the same meaning as defined in subdivision (c) of Section 302 of the Business and Professions Code.(2) Consumer use agreement means a contract between a person and a consumer that the consumer enters into in order to use, receive, or otherwise enjoy a good, service, money, or credit.(3) Person has the same meaning as defined in subdivision (d) of Section 302 of the Business and Professions Code.(b) Dispute resolution terms and conditions of a consumer use agreement shall be limited to the use, payment, or provision of the good, service, money, or credit provided by that consumer use agreement.(c) A waiver of the provisions of this section is contrary to public policy and void and unenforceable.(d) This section shall be liberally construed for the purpose of protecting consumers.(e) The duties and obligations imposed by this section are cumulative with duties or obligations imposed under any other law, shall not be construed to relieve any party from any duties or obligations imposed under any other law, and do not limit any rights or remedies under any other law.

SECTION 1. Section 1670.15 is added to the Civil Code, to read:

### SECTION 1.

1670.15. (a) For a contract for the sale or lease of consumer goods or services entered into on or after January 1, 2026, an agreement to arbitrate shall be limited to a claim arising out of and relating to the contract containing the agreement to arbitrate. As used in this section, the following definitions shall apply:(b)An agreement to arbitrate that violates subdivision (a) is void and unenforceable.(1) Consumer has the same meaning as defined in subdivision (c) of Section 302 of the Business and Professions Code.(2) Consumer use agreement means a contract between a person and a consumer that the consumer enters into in order to use, receive, or otherwise enjoy a good, service, money, or credit.(3) Person has the same meaning as defined in subdivision (d) of Section 302 of the Business and Professions Code.(b) Dispute resolution terms and conditions of a consumer use agreement shall be limited to the use, payment, or provision of the good, service, money, or credit provided by that consumer use agreement.(c) A waiver of the provisions of this section is contrary to public policy and void and unenforceable.(d) This section shall be liberally construed for the purpose of protecting consumers.(e) The duties and obligations imposed by this section are cumulative with duties or obligations imposed under any other law, shall not be construed to relieve any party from any duties or obligations imposed under any other law, and do not limit any rights or remedies under any other law.

1670.15. (a) For a contract for the sale or lease of consumer goods or services entered into on or after January 1, 2026, an agreement to arbitrate shall be limited to a claim arising out of and relating to the contract containing the agreement to arbitrate. As used in this section, the following definitions shall apply:(b)An agreement to arbitrate that violates subdivision (a) is void and unenforceable.(1) Consumer has the same meaning as defined in subdivision (c) of Section 302 of the Business and Professions Code.(2) Consumer use agreement means a contract between a person and a consumer that the consumer enters into in order to use, receive, or otherwise enjoy a good, service, money, or credit.(3) Person has the same meaning as defined in subdivision (d) of Section 302 of the Business and Professions Code.(b) Dispute resolution terms and conditions of a consumer use agreement shall be limited to the use, payment, or provision of the good, service, money, or credit provided by that consumer use agreement.(c) A waiver of the provisions of this section is contrary to public policy and void and unenforceable.(d) This section shall be liberally construed for the purpose of protecting consumers.(e) The duties and obligations imposed by this section are cumulative with duties or obligations imposed under any other law, shall not be construed to relieve any party from any duties or obligations imposed under any other law, and do not limit any rights or remedies under any other law.

1670.15. (a) For a contract for the sale or lease of consumer goods or services entered into on or after January 1, 2026, an agreement to arbitrate shall be limited to a claim arising out of and relating to the contract containing the agreement to arbitrate. As used in this section, the following definitions shall apply:(b)An agreement to arbitrate that violates subdivision (a) is void and unenforceable.(1) Consumer has the same meaning as defined in subdivision (c) of Section 302 of the Business and Professions Code.(2) Consumer use agreement means a contract between a person and a consumer that the consumer enters into in order to use, receive, or otherwise enjoy a good, service, money, or credit.(3) Person has the same meaning as defined in subdivision (d) of Section 302 of the Business and Professions Code.(b) Dispute resolution terms and conditions of a consumer use agreement shall be limited to the use, payment, or provision of the good, service, money, or credit provided by that consumer use agreement.(c) A waiver of the provisions of this section is contrary to public policy and void and unenforceable.(d) This section shall be liberally construed for the purpose of protecting consumers.(e) The duties and obligations imposed by this section are cumulative with duties or obligations imposed under any other law, shall not be construed to relieve any party from any duties or obligations imposed under any other law, and do not limit any rights or remedies under any other law.



1670.15. (a) For a contract for the sale or lease of consumer goods or services entered into on or after January 1, 2026, an agreement to arbitrate shall be limited to a claim arising out of and relating to the contract containing the agreement to arbitrate. As used in this section, the following definitions shall apply:

(b)An agreement to arbitrate that violates subdivision (a) is void and unenforceable.



(1) Consumer has the same meaning as defined in subdivision (c) of Section 302 of the Business and Professions Code.

(2) Consumer use agreement means a contract between a person and a consumer that the consumer enters into in order to use, receive, or otherwise enjoy a good, service, money, or credit.

(3) Person has the same meaning as defined in subdivision (d) of Section 302 of the Business and Professions Code.

(b) Dispute resolution terms and conditions of a consumer use agreement shall be limited to the use, payment, or provision of the good, service, money, or credit provided by that consumer use agreement.

(c) A waiver of the provisions of this section is contrary to public policy and void and unenforceable.

(d) This section shall be liberally construed for the purpose of protecting consumers.

(e) The duties and obligations imposed by this section are cumulative with duties or obligations imposed under any other law, shall not be construed to relieve any party from any duties or obligations imposed under any other law, and do not limit any rights or remedies under any other law.