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SB-1029 • 2026

Vehicle lien sales: Department of Motor Vehicles: notice.

Vehicle lien sales: Department of Motor Vehicles: notice.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Seyarto
Last action
2026-04-17
Official status
Set for hearing April 27.
Effective date
Not listed

Plain English Breakdown

The official source material does not specify who exactly constitutes 'people with a lien on a vehicle'. The bill text mentions registered and legal owners but does not explicitly include lienholders in the list of individuals to be notified.

Vehicle Lien Sales: DMV Notice Requirements

This law requires the Department of Motor Vehicles (DMV) to notify certain individuals within two weeks about funds from a vehicle lien sale that are sent to the DMV.

What This Bill Does

  • Requires the DMV to provide notice within 14 days after receiving the balance of funds from a vehicle lien sale.
  • Specifies that the notice must inform individuals about the process to file a claim for any portion of the funds forwarded to the DMV.
  • Includes registered and legal owners of the vehicle as those who should receive this notice.

Who It Names or Affects

  • The Department of Motor Vehicles (DMV)
  • Registered and legal owners of vehicles involved in lien sales

Terms To Know

Vehicle Lien Sale
A sale where a car is sold to pay off a loan or debt when the owner cannot do so.
Department of Motor Vehicles (DMV)
The government agency that handles vehicle registration, driver's licenses, and other related services.

Limits and Unknowns

  • Does not specify what happens if the DMV fails to send the required notice.
  • Does not provide details on how notices are delivered or what information they must contain.

Bill History

  1. 2026-04-17 California Legislative Information

    Set for hearing April 27.

  2. 2026-04-15 California Legislative Information

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 12. Noes 0.) (April 14). Re-referred to Com. on APPR.

  3. 2026-03-26 California Legislative Information

    Set for hearing April 14.

  4. 2026-02-18 California Legislative Information

    Referred to Com. on TRANS.

  5. 2026-02-11 California Legislative Information

    From printer. May be acted upon on or after March 13.

  6. 2026-02-10 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 1029, as introduced, Seyarto.
Vehicle lien sales: Department of Motor Vehicles: notice.
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. Existing law requires that the balance be forwarded to the Department of Motor Vehicles, 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 14 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.

Current Bill Text

Read the full stored bill text 
Download Bill PDF