SB988 - California Motor Vehicle Glass Act.

Enrolled August 28, 2026 Passed IN Senate August 26, 2026 Passed IN Assembly August 24, 2026 Amended IN Assembly August 19, 2026 Amended IN Assembly June 04, 2026 Amended IN Assembly June 03, 2026 Amended IN Senate April 16, 2026 Amended IN Senate March 23, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 988 Introduced by Senator Grayson February 05, 2026 An act to add Title 1.5C (commencing with Section 1784.50) to Part 4 of Division 3 of the Civil Code, relating to civil law. LEGISLATIVE COUNSEL'S DIGEST SB 988, Grayson. California Motor Vehicle Glass Act. Existing law enacts the California Combating Auto Retail Scams (CARS) Act, commencing October 1, 2026, that makes it a violation of the act for a dealer to, among other things, 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. Existing law generally regulates classes of insurance, including automobile insurance. Existing law requires an insurer that issues a policy providing automobile collision coverage, or automobile physical damage coverage, to pay to the repairer or to the named insured and the repairer, jointly, for repairs in a specified manner if a covered automobile is damaged by collision or otherwise and the insurer knows that the automobile will be repaired. Existing law prohibits an insurer from withholding the payment of reasonable repair cost benefits that are otherwise payable under the policy if the insured decides not to have the vehicle repaired. Existing law states that these provisions do not prohibit an insurer from restricting payment in cases of suspected fraud or from including a named loss payee or lienholder as an additional payee on the claims payment check or draft, as described. Existing law states that these provisions do not prohibit an insurer from requiring that a damaged vehicle be repaired as a condition for payment if the damage to the vehicle is sufficiently serious that safety features that are part of the vehicle’s operating systems are compromised. This bill, the California Motor Vehicle Glass Act, would prohibit an insured under a motor vehicle insurance policy that covers windshield and calibration repair or replacement from, either before or after a claimed or covered loss, assigning, delegating, or otherwise transferring, in whole or in part, to any other person the insured’s duties under the policy or rights or benefits under the policy, and would make a contract entered into, on and after January 1, 2027, under these circumstances void and unenforceable. The bill would require a motor vehicle glass repair shop (repair shop), before providing service to a person for a repair or replacement of damaged motor vehicle glass, to notify the person, among other things, whether the motor vehicle has an advanced driver assistance system, and if it does, whether calibration or recalibration of the motor vehicle’s advanced driver assistance system is needed after a windshield repair or replacement as recommended by the vehicle manufacturer. The bill would require the repair shop to provide written notice to the person whether the calibration or recalibration was successful or not successful, as specified, and would require the repair shop to provide an itemized invoice and receipt upon completion of a repair or replacement of damaged motor vehicle glass. This bill would prohibit a repair shop from contracting with a person for repair or replacement of damaged motor vehicle glass that would be paid by a first-party insurance policy until specified conditions are met, including, among others, that the person has made a first-party claim for the repair or replacement of damaged motor vehicle glass under a motor vehicle insurance policy and that the repair shop has received a claim or referral number for the claim. The bill would require a repair shop to, among other things, provide the person a good faith estimate of the fees and costs that are anticipated to be charged to the person by the repair shop for the repair or replacement of damaged motor vehicle glass. This bill would prohibit a repair shop, or any other person who is compensated for the solicitation of insurance claims, from offering a rebate, gift, gift card, cash, coupon, fee, prize, bonus, payment, incentive, inducement, or any other thing of value to any insured, insurance producer, or other person in exchange for directing or making a claim under a motor vehicle insurance policy for a repair or replacement of damaged motor vehicle glass. The bill would also prohibit a repair shop from, among other things, submitting false, misleading, or incomplete documentation or information to an insured or an insured’s insurer, including any agent of the insured or insurer, for a repair or replacement of damaged motor vehicle glass or state that a repair or replacement of damaged motor vehicle glass will be paid for entirely by an insurer and at no cost to the insured unless the coverage has been verified by the insurer or the insurer’s agent. This bill would state that these provisions do not prohibit an insurer, insurance producer, insurance adjuster, or any person acting on behalf of an insurer, insurance producer, or insurance adjuster from recommending a repair shop or providing an explanation to an insured of the coverage available, and any applicable liability limit, under any insurance policy. The bill would make a violation of these provisions punishable by a civil penalty not to exceed $500 for the first violation and not to exceed $2,000 for each subsequent violation. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Title 1.5C (commencing with Section 1784.50) is added to Part 4 of Division 3 of the Civil Code, to read: TITLE 1.5C. California Motor Vehicle Glass Act 1784.50. This act shall be known, and may be cited, as the California Motor Vehicle Glass Act. 1784.51. As used in this title, all of the following terms have the following meanings: (a) “Advanced driver assistance system” means any motor vehicle electronic safety system, as outlined in the most recent version of SAE International’s Standard J3016 Levels of Driving Automation, that is designed to support the driver and motor vehicle in a manner intended to increase motor vehicle safety and reduce losses associated with motor vehicle crashes. (b) “Insurance producer” means an individual or business entity required to be licensed within the state to sell, solicit, or negotiate insurance or annuity contracts. “Insurance producer” includes an agent, managing general agent, surplus lines broker, reinsurance intermediary broker and manager, rental vehicle agent and rental vehicle agent managing employee, and consultant. (c) “Insured” means a person that is entitled, or may be entitled, to receive first-party benefits or payments under an insurance policy. (d) “Motor vehicle glass” means the glass and nonglass parts associated with the replacement of the glass used in the windshield, doors, or windows of a motor vehicle. (e) “Motor vehicle glass repair shop” means a person or business primarily engaged in automotive glass replacement, including the cutting, fabrication, repair, and installation of vehicle windows and windshields. (f) “Notice” means direct written communications, including verifiable text, email, or application-based messaging, that is easily accessible by the consumer. (g) “Person” means any individual, corporation, limited liability company, partnership, association, or other group authorized to conduct business in the state. (h) “Repair or replacement of damaged motor vehicle glass” includes both of the following: (1) Inspecting, repairing, restoring, or replacing damaged motor vehicle glass. (2) Calibrating or recalibrating an advanced driver assistance system when an incident requires the replacement of damaged motor vehicle glass. (i) “Rights or benefits under the policy” includes the insured’s right to receive any and all post-loss benefits or payments available or payable under the policy, including, but not limited to, claim payments. 1784.52. (a) An insured under a motor vehicle insurance policy that covers windshield and calibration repair or replacement shall not, either before or after a claimed or covered loss, assign, delegate, or otherwise transfer, in whole or in part, to any other person the insured’s duties under the policy or rights or benefits under the policy. (b) A contract entered into on and after January 1, 2027, in violation of this section shall be void and unenforceable. (c) This section shall not be construed to prohibit an insured from authorizing or directing payment to, or paying, a person for services, materials, or any other thing that may be, or is, covered under an insurance policy. 1784.53. (a) Before providing service to a person for a repair or replacement of damaged motor vehicle glass, a motor vehicle glass repair shop shall notify the person of both of the following: (1) Whether the motor vehicle has an advanced driver assistance system. (2) If the motor vehicle has an advanced driver assistance system: (A) Whether calibration or recalibration of the motor vehicle’s advanced driver assistance system is needed after the windshield repair or replacement as recommended by the vehicle manufacturer. (B) Whether the motor vehicle glass repair shop intends to calibrate or recalibrate the advanced driver assistance system in a manner that meets the motor vehicle manufacturer’s specifications. (C) If the motor vehicle glass repair shop cannot perform or does not intend to perform a calibration or recalibration, that the motor vehicle should be taken to the vehicle manufacturer’s certified dealership or a qualified specialist capable of performing the calibration or recalibration. (b) If calibration or recalibration of the motor vehicle’s advanced driver assistance system is performed, the motor vehicle glass repair shop shall provide written notice to the person for both of the following: (1) Whether the calibration or recalibration was successful. (2) If the calibration or recalibration was not successful, the motor vehicle should be taken to the vehicle manufacturer’s certified dealership or a qualified specialist capable of performing the calibration or recalibration. 1784.54. (a) A motor vehicle glass repair shop shall not contract with a person for repair or replacement of damaged motor vehicle glass that would be paid by a first-party insurance policy until all of the following conditions are met: (1) The person has made a first-party claim for the repair or replacement of damaged motor vehicle glass under a motor vehicle insurance policy. (2) The motor vehicle glass repair shop has received a claim or referral number for the claim. (3) The requirements of paragraphs (1) and (2) of subdivision (a) of Section 1784.53 are satisfied. (b) A motor vehicle glass repair shop shall do all of the following: (1) Provide the person a good faith estimate of the fees and costs that are anticipated to be charged to the person by the motor vehicle glass repair shop for the repair or replacement of damaged motor vehicle glass. (2) Before performing the service, provide the person an updated estimate. (3) Not charge more than the reasonable and customary fees and costs to a person for the repair or replacement of damaged motor vehicle glass and any associated calibration or recalibration of the motor vehicle’s advanced driver assistance system as recommended by the vehicle manufacturer specifications. (c) A motor vehicle glass repair shop shall provide all of the following to the person upon completion of the repair or replacement of damaged motor vehicle glass: (1) An itemized invoice and, upon payment, a receipt. (2) A notice that states whether the advanced driver assistance system was successfully or was not successfully calibrated or recalibrated. (3) If the calibration or recalibration was not successful, the motor vehicle glass repair shop shall advise the person not to rely on the advanced driver assistance system until it has been successfully calibrated or recalibrated by the vehicle manufacturer’s certified dealership or a qualified specialist capable of performing the calibration or recalibration. 1784.55. (a) A motor vehicle glass repair shop, or any other person who is compensated for the solicitation of insurance claims, shall not offer a rebate, gift, gift card, cash, coupon, fee, prize, bonus, payment, incentive, inducement, or any other thing of value to any insured, insurance producer, or other person in exchange for directing or making a claim under a motor vehicle insurance policy for the repair or replacement of damaged motor vehicle glass. (b) A motor vehicle glass repair shop shall not do any of the following: (1) Charge higher fees and costs to a person for the repair or replacement of damaged motor vehicle glass than a reasonable price for the repair, replacement, or installation of automotive glass charged by a motor vehicle glass repair shop within a specific geographic area. (2) Submit false, misleading, or incomplete documentation or information to an insured or an insured’s insurer, including any agent of the insured or insurer, for the repair or replacement of damaged motor vehicle glass. (3) With respect to an insured’s claim, or potential claim, for the repair or replacement of damaged motor vehicle glass, do either the following, which results, or would result, in a higher insurance payment or a change of insurance coverage status: (A) Indicate that work was performed in a geographical area that was not the geographical area where the work occurred. (B) Advise an insured to falsify the date of damage. (4) Falsely sign a work order or other insurance-related form relating to an insured’s claim, or potential claim, for the repair or replacement of damaged motor vehicle glass. (5) Misrepresent to an insured or the insured’s insurer, including any agent of the insured or insurer, the price of the proposed repair or replacement of damaged motor vehicle glass. (6) State that an insured’s insurer has approved the repair or replacement of damaged motor vehicle glass without doing both of the following: (A) Verifying coverage directly with, or obtaining approval directly from, the insurer or the insurer’s agent. (B) Obtaining confirmation of the coverage or approval by facsimile, email, or other written or recorded communication. (7) State that the repair or replacement of damaged motor vehicle glass will be paid for entirely by an insurer and at no cost to the insured unless the coverage has been verified by t [Text truncated for display. Full text available on Congress.gov.]