PRIA Logo™
CaliforniaAB 4832025-2026 Regular SessionHouseWALLET

Fixed term installment contracts: cancellation fees.

Sponsored By: Jacqui Irwin (Democratic)

Signed by Governor

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Early termination fees capped and disclosed

Beginning August 1, 2026, fixed-term installment contracts must clearly show early termination fees up front. The contract must display either the total fee or the formula and the highest possible fee, without needing to click a link or tooltip. The early termination fee cannot be more than 30% of the total amount you owe under the contract, not counting the fee itself. If your broadband provider follows the federal broadband consumer label, that counts as meeting this disclosure rule.

You cannot waive these protections

Any contract term that tries to waive these rules is void and cannot be enforced. You keep these protections even if you signed a waiver.

Ending or paying off your contract

Beginning August 1, 2026, if you end a fixed-term installment contract, the seller can still require you to return the goods. You can also choose to pay the full remaining balance early to finish your payment obligations.

Who this installment fee law covers

This law does not apply when another state or federal law gives you stronger protections, like banning or lowering early termination fees. It also does not apply to home improvement contracts defined in Section 7151.2. In those cases, the other law controls.

Sponsors & Cosponsors

Sponsor

  • Jacqui Irwin

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 184 • No: 18

House vote • 9/10/2025

Item 242 — Assembly AFLOOR

Yes: 78 • No: 0

Senate vote • 9/9/2025

Item 220 — Senate SFLOOR

Yes: 39 • No: 1

legislature vote • 6/24/2025

Vote in CS53

Yes: 11 • No: 1

House vote • 4/7/2025

Item 36 — Assembly AFLOOR

Yes: 47 • No: 12

legislature vote • 4/1/2025

Vote in CX32

Yes: 9 • No: 4

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 557, Statutes of 2025.

    10/10/2025Senate

  2. Approved by the Governor.

    10/10/2025legislature

  3. Enrolled and presented to the Governor at 3 p.m.

    9/22/2025legislature

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 3219.).

    9/10/2025House

  5. In Assembly. Concurrence in Senate amendments pending.

    9/9/2025House

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 1. Page 2663.).

    9/9/2025Senate

  7. Read second time. Ordered to third reading.

    9/4/2025Senate

  8. Read third time and amended. Ordered to second reading.

    9/3/2025Senate

  9. Read second time. Ordered to third reading.

    8/20/2025Senate

  10. Read third time and amended. Ordered to second reading.

    8/19/2025Senate

  11. Read second time. Ordered to third reading.

    6/26/2025Senate

  12. From committee: Do pass. (Ayes 11. Noes 1.) (June 24).

    6/25/2025Senate

  13. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.

    6/12/2025Senate

  14. Referred to Com. on JUD.

    5/7/2025Senate

  15. In Senate. Read first time. To Com. on RLS. for assignment.

    4/7/2025Senate

  16. Read third time. Passed. Ordered to the Senate. (Ayes 46. Noes 12. Page 1034.)

    4/7/2025House

  17. Read second time. Ordered to third reading.

    4/3/2025House

  18. From committee: Do pass. (Ayes 9. Noes 4.) (April 1).

    4/2/2025House

  19. Re-referred to Com. on P. & C.P.

    3/25/2025House

  20. From committee chair, with author's amendments: Amend, and re-refer to Com. on P. & C.P. Read second time and amended.

    3/24/2025House

  21. In committee: Hearing postponed by committee.

    3/13/2025House

  22. Referred to Com. on P. & C.P.

    2/24/2025House

  23. From printer. May be heard in committee March 13.

    2/11/2025House

  24. Read first time. To print.

    2/10/2025House

Bill Text

  • Chaptered

    10/10/2025

    HTML

  • Enrolled

    9/12/2025

    HTML

  • Amended Senate

    9/3/2025

    HTML

  • Amended Senate

    8/19/2025

    HTML

  • Amended Senate

    6/12/2025

    HTML

  • Amended Assembly

    3/24/2025

    HTML

  • Introduced

    2/10/2025

    HTML

Related Bills

Back to State Legislation