AB2782 - Judiciary omnibus.

Amended IN Senate June 15, 2026 Amended IN Senate May 20, 2026 Amended IN Assembly April 08, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 2782 Introduced by Committee on Judiciary (Assembly Members Kalra (Chair), Bauer-Kahan, Bryan, Connolly, Harabedian, Macedo, Pacheco, Papan, Stefani, and Zbur) March 11, 2026 An act to amend Sections 2981, 2982, and 2982.2 of the Civil Code, to amend Sections 568.1 and 704.730 of the Code of Civil Procedure, to amend Sections 2110 and 3042 Section 2110 of the Family Code, to amend Section 2699.3 of the Labor Code, and to amend Sections 9763 and 16350 1063, 9763, and 16350 of the Probate Code, relating to state government. LEGISLATIVE COUNSEL'S DIGEST AB 2782, as amended, Committee on Judiciary. Judiciary omnibus. (1) The Automobile Sales Finance Act generally regulates motor vehicle conditional sale contracts. The act defines various terms for these purposes, including “cash price” to mean the amount for which the seller would sell and transfer to the buyer unqualified title to the motor vehicle described in the conditional sale contract, if the property were sold for cash at the seller’s place of business on the date the contract is executed, and taxes to the extent imposed on the cash sale and the cash price of accessories or services related to the sale, including, among other things, a vehicle contract cancellation option agreement. The act requires a conditional sale contract to contain certain disclosures, including the amount charged for a contract cancellation option agreement. The act requires a seller to provide specified information to a buyer prior to the execution of a conditional sale contract, as specified, including a description and the price of a vehicle contract cancellation option agreement. This bill would remove a vehicle contract cancellation option agreement from the definition of “cash price.” The bill would remove the requirement that a conditional sale contract disclose the amount charged for a contract cancellation option agreement. The bill would remove the requirement that the seller provide to a buyer prior to the execution of a conditional sale contract a description and the price of a vehicle contract cancellation option agreement. (2) Existing law defines “homestead” to mean a principal dwelling in which a judgment debtor or their spouse resided on the date the judgment creditor’s lien attached to the dwelling and in which the judgment debtor or their spouse resided continuously thereafter until the date of a court determination that the dwelling is a homestead. Under existing law, a homestead is exempt from a sale to enforce a money judgment, except pursuant to a court order for sale if certain conditions are met. Existing law provides that the amount of a homestead exemption is the greater of (A) the countywide median price for a single-family home in the calendar year prior to the calendar year in which the judgment debtor claims the exemption, not to exceed $600,000, or (B) $300,000. Beginning on January 1, 2022, existing law requires the amount of a homestead exemption to be adjusted annually for inflation, as specified. This bill would set the amount of a homestead exemption in the 2026 calendar year as the greater of (A) the “ceiling amount” of $746,350, or (B) the “floor amount” of $373,175. The bill would require those ceiling and floor amounts to be adjusted annually for inflation, beginning on January 1, 2027, by applying a multiplier produced by the change in the annual California Consumer Price Index (CPI) for All Urban Consumers, published by the Department of Industrial Relations, during the prior fiscal year. The bill would provide that the multiplier is calculated by dividing the CPI for the June ending the prior fiscal year by the CPI for the June immediately preceding the prior fiscal year. The bill would require each ceiling and floor amount that has been adjusted annually for inflation to be rounded to the nearest $25. (3) Existing law requires each party to a proceeding for dissolution of marriage or legal separation to serve on the other party a preliminary declaration of disclosure of assets, as specified, and a final declaration of disclosure, as specified. In the case of a default judgment, existing law prohibits a petitioner from being required to serve or receive a final declaration of disclosure, but still requires a preliminary declaration of disclosure, except as specified. This bill would provide that both parties are not required to exchange declarations of disclosure in a dissolution of marriage or registered domestic partnership if the parties have an existing enforceable judgment of legal separation that adjudicates or reserves jurisdiction over the division of property. (4) Existing law governs the determination of child custody and visitation in contested proceedings. Existing law requires that custody should be granted according to the best interest of the child in a specified order of preference. Existing law requires the court to consider, and give due weight to, the wishes of the child in making an order granting or modifying custody or visitation if the child is of sufficient age and capacity to reason so as to form an intelligent preference as to custody or visitation. This bill would instead require the court to consider, and give due weight to, the wishes of the child in making an order granting or modifying custody or visitation if the child is of sufficient age and capacity to reason. (5) (4) This bill would correct various cross-references and make other technical changes. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 2981 of the Civil Code is amended to read: 2981. As used in this chapter, unless the context otherwise requires: (a) “Conditional sale contract” means: (1) A contract for the sale of a motor vehicle between a buyer and a seller, with or without accessories, under which possession is delivered to the buyer and either of the following: (A) The title vests in the buyer thereafter only upon the payment of all or a part of the price, or the performance of any other condition. (B) A lien on the property is to vest in the seller as security for the payment of part or all of the price, or for the performance of any other condition. (2) A contract for the bailment of a motor vehicle between a buyer and a seller, with or without accessories, by which the bailee or lessee agrees to pay as compensation for use a sum substantially equivalent to or in excess of the aggregate value of the vehicle and its accessories, if any, at the time the contract is executed, and by which it is agreed that the bailee or lessee will become, or for no other or for a nominal consideration has the option of becoming, the owner of the vehicle upon full compliance with the terms of the contract. (b) “Seller” means a person engaged in the business of selling or leasing motor vehicles under conditional sale contracts. (c) “Buyer” means the person who buys or hires a motor vehicle under a conditional sale contract. (d) “Person” includes an individual, company, firm, association, partnership, trust, corporation, limited liability company, or other legal entity. (e) “Holder” means the person entitled to enforce the conditional sale contract against the buyer at the time. (f) “Cash price” means the amount for which the seller would sell and transfer to the buyer unqualified title to the motor vehicle described in the conditional sale contract, if the property were sold for cash at the seller’s place of business on the date the contract is executed, and shall include taxes to the extent imposed on the cash sale and the cash price of accessories or services related to the sale, including, but not limited to, delivery, installation, alterations, modifications, improvements, document preparation fees, a service contract, and payment of a prior credit or lease balance remaining on property being traded in. (g) “Downpayment” means a payment that the buyer pays or agrees to pay to the seller in cash or property value or money’s worth at or prior to delivery by the seller to the buyer of the motor vehicle described in the conditional sale contract. The term shall also include the amount of any portion of the downpayment the payment of which is deferred until not later than the due date of the second otherwise scheduled payment, if the amount of the deferred downpayment is not subject to a finance charge. The term does not include any administrative finance charge charged, received, or collected by the seller as provided in this chapter. (h) “Amount financed” means the amount required to be disclosed pursuant to paragraph (8) of subdivision (a) of Section 2982. (i) “Unpaid balance” means the difference between subdivisions (f) and (g), plus all insurance premiums (except for credit life or disability insurance when the amount thereof is included in the finance charge), which are included in the contract balance, and the total amount paid or to be paid as follows: (1) To a public officer in connection with the transaction. (2) For license, certificate of title, and registration fees imposed by law, and the amount of the state fee for issuance of a certificate of compliance or certificate of waiver pursuant to Section 9889.56 of the Business and Professions Code. (j) “Finance charge” has the meaning set forth for that term in Section 226.4 of Regulation Z. The term shall not include delinquency charges or collection costs and fees as provided by subdivision (k) of Section 2982, extension or deferral agreement charges as provided by Section 2982.3, or amounts for insurance, repairs to or preservation of the motor vehicle, or preservation of the security interest therein advanced by the holder under the terms of the contract. (k) “Total of payments” means the amount required to be disclosed pursuant to subdivision (h) of Section 226.18 of Regulation Z. The term includes any portion of the downpayment that is deferred until not later than the second otherwise scheduled payment and that is not subject to a finance charge. The term shall not include amounts for which the buyer may later become obligated under the terms of the contract in connection with insurance, repairs to or preservation of the motor vehicle, preservation of the security interest therein, or otherwise. (l) “Motor vehicle” means a vehicle required to be registered under the Vehicle Code that is bought for use primarily for personal or family purposes, and does not mean any vehicle that is bought for use primarily for business or commercial purposes or a mobilehome, as defined in Section 18008 of the Health and Safety Code that is sold on or after July 1, 1981. “Motor vehicle” does not include any trailer that is sold in conjunction with a vessel and that comes within the definition of “goods” under Section 1802.1. (m) “Purchase order” means a sales order, car reservation, statement of transaction, or any other such instrument used in the conditional sale of a motor vehicle pending execution of a conditional sale contract. The purchase order shall conform to the disclosure requirements of subdivision (a) of Section 2982 and Section 2984.1, and subdivision (m) of Section 2982 shall apply. (n) “Regulation Z” means a rule, regulation, or interpretation promulgated by the Board of Governors of the Federal Reserve System (“Board”) under the federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601, et seq.), and an interpretation or approval issued by an official or employee of the Federal Reserve System duly authorized by the board under the Truth in Lending Act, as amended, to issue the interpretations or approvals. (o) “Simple-interest basis” means the determination of a finance charge, other than an administrative finance charge, by applying a constant rate to the unpaid balance as it changes from time to time either: (1) Calculated on the basis of a 365-day year and actual days elapsed (although the seller may, but need not, adjust its calculations to account for leap years); reference in this chapter to the “365-day basis” shall mean this method of determining the finance charge, or (2) For contracts entered into prior to January 1, 1988, calculated on the basis of a 360-day year consisting of 12 months of 30 days each and on the assumption that all payments will be received by the seller on their respective due dates; reference in this chapter to the “360-day basis” shall mean this method of determining the finance charge. (p) “Precomputed basis” means the determination of a finance charge by multiplying the original unpaid balance of the contract by a rate and multiplying that product by the number of payment periods elapsing between the date of the contract and the date of the last scheduled payment. (q) “Service contract” means “vehicle service contract” as defined in subdivision (c) of Section 12800 of the Insurance Code. (r) “Surface protection product” means the following products installed by the seller after the motor vehicle is sold: (1) Undercoating. (2) Rustproofing. (3) Chemical or film paint sealant or protectant. (4) Chemical sealant or stain inhibitor for carpet and fabric. (s) “Theft deterrent device” means the following devices installed by the seller after the motor vehicle is sold: (1) A vehicle alarm system. (2) A window etch product. (3) A body part marking product. (4) A steering lock. (5) A pedal or ignition lock. (6) A fuel or ignition kill switch. (t) “Guaranteed asset protection waiver” means an optional contractual obligation under which a seller agrees, for additional consideration, to cancel or waive all or part of amounts due on the buyer’s conditional sale contract subject to this chapter in the event of a total loss or unrecovered theft of the motor vehicle specified in the conditional sale contract. SEC. 2. Section 2982 of the Civil Code, as added by Section 3 of Chapter 354 of the Statutes of 2025, is amended to read: 2982. A conditional sale contract subject to this chapter shall contain the disclosures required by Regulation Z, whether or not Regulation Z applies to the transaction. In addition, to the extent applicable, the contract shall contain the other disclosures and notices required by, and shall satisfy the requirements and limitations of, this section. The disclosures required by subdivision (a) may be itemized or subtotaled to a greater extent than as required by that subdivision and shall be made together and in the sequence set forth in that subdivision. All other disclosures and notices may appear in the contract in any location or sequence and may be combined or interspersed with other provisions of the contract. (a) The contract shall contain the following disclosures, as applicable, which shall be labeled “itemization of the amount financed”: (1) (A) The cash pr [Text truncated for display. Full text available on Congress.gov.]