CA SB 623 Settles Ballot Contest Between Uber & Consumer Attorneys of California

A dispute that had been shaping up as one of the most expensive ballot fights in California history came to a resolution on June 25, 2026, when Governor Gavin Newsom signed Senate Bill 623, the Fair Medical Billing & Rideshare Safety Act. The new law emerged from a negotiated agreement between Uber and the Consumer Attorneys of California (CAOC) and led both sides to withdraw their competing ballot measures before voters ever weighed in.

How the Ballot Battle Started

Earlier in 2026, Uber and the CAOC each qualified separate ballot initiatives for the November election, setting up a costly and contentious fight over the rights of Californians who had been in car accidents. Uber's proposed measure would have reduced access to legal representation and limited how much victims of any California car accident, not just rideshare crashes, could recover for medical expenses. CAOC countered with its own measure focused on rideshare safety and holding companies like Uber accountable for the conduct of their drivers. Reportedly, each side had raised or allocated more than $75 million for their respective campaigns before the deal was struck.

A Legislative Compromise

Rather than taking their dispute to California voters at enormous financial and political cost, the two sides reached a compromise. The result was SB 623, authored by Senator Thomas J. Umberg (D-Santa Ana), Chair of the Senate Judiciary Committee. In a statement following the bill's signing, Senator Umberg reflected on how the agreement came together: "SB 623 is a testament to the fact that the best public policy is often built through negotiation. Instead of taking competing measures to the ballot, stakeholders came together and reached a solution that better protects Californians."

Uber and the CAOC issued a joint statement expressing their shared support: "Both sides agree: Californians deserve a system that's safe, fair, and accountable. This agreement protects patients from unnecessary treatment or getting overcharged, ensures access to medical care and legal representation, and strengthens safety measures."

What SB 623 Does

SB 623 introduces several changes that affect rideshare passengers, drivers, and attorneys handling rideshare-related injury cases.

Key provisions of the new law include:

• Scope limited to rideshare crashes: Unlike Uber's original ballot measure, SB 623 applies only to accidents involving rideshare services, not all motor vehicle accidents in California.
• Medical cost recovery limits: The law limits how much injured plaintiffs can recover for medical treatment received from lien-based providers in rideshare crash cases.
• Prohibition on the sale or assignment of medical liens: Medical liens allow injured victims to receive treatment upfront while their case is pending; the sale or assignment of those liens, such as to creditors and collection agencies, will no longer be permitted under the new law.
• Restrictions on attorney referrals: Attorneys are prohibited from referring clients to medical providers with whom they have close financial ties.
• Stronger driver background checks: Rideshare companies will be required to conduct annual criminal background checks on their drivers, and the range of offenses that disqualify a person from driving for a rideshare company has been expanded.

What SB 623 Does Not Do

Equally important for Californians to understand is what the new law does not include. SB 623 does not cap attorney contingency fees, which was one of the most significant and widely criticized elements of Uber's original ballot measure. It also does not extend any of its provisions to non-rideshare car accidents, meaning the legal rights of victims in car accident cases outside the rideshare context remain unchanged.

KTB is Always Here to Help

If you were injured in a rideshare accident in California, some of the rules governing your case have changed with the passage of SB 623. Understanding how those changes may affect your ability to recover compensation is an important part of knowing your rights.

At Kershaw Talley Barlow, we proudly represent clients who have suffered catastrophic injuries in car accidents and rideshare accidents throughout Sacramento and California. If you or a loved one has been hurt and you have questions about your legal options, we are here to help. Call us at (916) 520-6639 for a free consultation.