Vehicle lien sales: proceeds.
SB 1029
California Bills
20250SB__102998AMD INTRODUCED 2026-02-10 AMENDED_ASSEMBLY 2026-06-23 2025 SB AMD Introduced by Senator Seyarto (Coauthors: Senators Jones and Ochoa Bogh) LEAD_AUTHOR SENATE Seyarto COAUTHOR SENATE Jones COAUTHOR SENATE Ochoa Bogh
An act to amend
Section of the Civil Code, relating to liens, and making an appropriation therefor. liens, and making an appropriation therefor Vehicle lien sales: proceeds. Existing law requires a lienholder to comply with specified procedures to conduct a vehicle lien sale and makes it a misdemeanor for a person claiming a vehicle lien to knowingly violate these procedures. With regards to those procedures, existing law requires that the proceeds of a vehicle lien sale be paid to the lienholder in the amount necessary to discharge the lien and to cover the cost of processing the vehicle, among other requirements.
Existing law requires that the balance be forwarded to the Department of Motor Vehicles and requires the balance to be deposited in the Motor Vehicle Account in the State Transportation Fund, as provided. Existing law authorizes any person claiming an interest in the vehicle to file a claim with the Department of Motor Vehicles for any portion of the funds from the lien sale that was forwarded to the department, as provided.
This bill would require the Department of Motor Vehicles, within days of receiving the balance, to provide prescribed notice about the funds from the lien sale that were forwarded to the department and the process to file a claim, as described above, to specified individuals, including the registered and legal owners of the vehicle.</xhtml:p>"?> Existing law provides for the escheat of property to the state. Existing law requires all property that escheat to the state to be deposited into a prescribed account in the Unclaimed Property Fund, which is continuously appropriated for specified purposes.
Existing law establishes procedures for submitting a claim for property that has escheated. This bill would, instead, require the balance to be forwarded to the Controller and, instead, would require the balance to be treated as escheated property, as provided. The bill would delete the provision authorizing any person claiming an interest in the vehicle to file a claim with the Department of Motor Vehicles. By changing the definition of an existing crime, the bill would impose a state-mandated local program.
Because this bill would require the balance to be treated as escheated property to the state, and thereby deposited in the Unclaimed Property Fund, which is a continuously appropriated fund, this bill would make an appropriation. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
TWO_THIRDS YES YES YES NO NO NO NO NO NO NO The people of the State of California do enact as follows:
SECTION 1.
Section of the Civil Code is amended to read: 3073. The proceeds of a vehicle lien sale under this
chapter shall be disposed of as follows: (
a) The amount necessary to discharge the lien and the cost of processing the vehicle shall be paid to the lienholder. The cost of processing shall not exceed seventy dollars ($70) for each vehicle valued at four thousand dollars ($4,000) or less, or one hundred dollars ($100) for each vehicle valued over four thousand dollars ($4,000). (b) "?>The balance, if any, shall be forwarded to the Controller within days of any sale conducted pursuant to
Section or within five days of any sale conducted pursuant to
Section and shall be treated as escheated property in accordance with
Chapter 7 (commencing with
Section 1500) of Title of Part of the Code of Civil Procedure, unless federal law requires these funds to be disposed in a different manner. (2)<xhtml:span class="EnSpace"/>Within days of receipt of the balance, as specified in paragraph (1), the Department of Motor Vehicles shall provide notice specifying the amount of funds from the lien sale that were forwarded to the department and how to file a claim pursuant to subdivision (c), by certified mail and with return receipt requested, to each of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>The registered and legal owners of the vehicle.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>All persons known to have an interest in the vehicle.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>Any person claiming an interest in the vehicle may file a claim with the Department of Motor Vehicles for any portion of the funds from the lien sale that were forwarded to the department pursuant to paragraph (1) of subdivision (b).
Upon a determination of the Department of Motor Vehicles that the claimant is entitled to an amount from the balance deposited with the department, the department shall pay that amount determined by the department, which amount shall not exceed the amount forwarded to the department pursuant to subdivision (
b) in connection with the sale of the vehicle in which the claimant claims an interest. The department shall not honor any claim unless the claim has been filed within three years of the date the funds were deposited in the Motor Vehicle Account.</xhtml:p>"?>
SEC. 2. No reimbursement is required by this act pursuant to
Section of
Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of