SB-791 • 2026

Vehicle dealers: document processing charge.

Vetoed

The latest official action shows the governor vetoed this bill. Check the bill history to see whether lawmakers later overrode that veto.

Sponsor: Cortese
Last action: 2026-03-02
Official status: Veto sustained.
Effective date: Not listed

Plain English Breakdown

The bill was vetoed by the governor, so it is currently not a law and its future enactment status is uncertain.

Vehicle Dealers: Document Processing Charge

This proposed law allows car dealers to charge up to $260 for document processing, but only if the charge is less than 1% of the vehicle's total price and does not apply to sales to California state or local government.

What This Bill Does

Allows car dealers to charge up to $260 for preparing documents needed when buying or leasing a car, provided it is less than 1% of the vehicle’s total cost.
Exempts sales to California state and local governments from these rules.

Who It Names or Affects

Car buyers or lessees who pay extra for document processing.
California state and local governments that buy vehicles.

Terms To Know

Document Processing Charge: The fee a car dealer charges to prepare paperwork needed when buying or leasing a vehicle.

Limits and Unknowns

This proposed law is not currently in effect because it was vetoed by the governor.
It only applies until January 1, 2031, if enacted.

Bill History

2026-03-02 California Legislative Information
Veto sustained.
2026-03-02 California Legislative Information
Stricken from file.
2025-10-13 California Legislative Information
In Senate. Consideration of Governor's veto pending.
2025-10-13 California Legislative Information
Vetoed by the Governor.
2025-09-22 California Legislative Information
Enrolled and presented to the Governor at 11 a.m.
2025-09-10 California Legislative Information
Assembly amendments concurred in. (Ayes 37. Noes 0. Page 2830.) Ordered to engrossing and enrolling.
2025-09-08 California Legislative Information
In Senate. Concurrence in Assembly amendments pending.
2025-09-08 California Legislative Information
Read third time. Passed. (Ayes 60. Noes 3. Page 3010.) Ordered to the Senate.
2025-09-03 California Legislative Information
Read second time. Ordered to third reading.
2025-09-02 California Legislative Information
Read second time and amended. Ordered to second reading.
2025-08-29 California Legislative Information
From committee: Do pass as amended. (Ayes 12. Noes 0.) (August 29).
2025-08-20 California Legislative Information
August 20 set for first hearing. Placed on APPR. suspense file.
2025-07-15 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (July 14). Re-referred to Com. on APPR.
2025-07-03 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on TRANS.
2025-06-09 California Legislative Information
Referred to Com. on TRANS.
2025-06-04 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-06-03 California Legislative Information
Read third time. Passed. (Ayes 29. Noes 1. Page 1457.) Ordered to the Assembly.
2025-05-08 California Legislative Information
Read second time. Ordered to third reading.
2025-05-07 California Legislative Information
Ordered to second reading.
2025-05-07 California Legislative Information
Withdrawn from committee.
2025-05-06 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.
2025-04-30 California Legislative Information
Re-referred to Com. on APPR.
2025-04-23 California Legislative Information
From committee: Do pass and re-refer to Com. on RLS. (Ayes 12. Noes 1. Page 843.) (April 22). Re-referred to Com. on RLS.
2025-04-08 California Legislative Information
Set for hearing April 22.
2025-04-02 California Legislative Information
Re-referred to Com. on TRANS.
2025-03-24 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
2025-03-12 California Legislative Information
Referred to Com. on RLS.
2025-02-24 California Legislative Information
Read first time.
2025-02-24 California Legislative Information
From printer. May be acted upon on or after March 24.
2025-02-21 California Legislative Information
Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 791, Cortese.
Vehicle dealers: document processing charge.
Existing law authorizes a dealer to charge the purchaser or lessee of a vehicle a document processing charge for the preparation and processing of documents, disclosures, and titling, registration, and information security obligations imposed by state and federal law. Existing law authorizes a dealer that has a contractual agreement with the Department of Motor Vehicles to be a private industry partner to set the document processing charge at up to $85 and authorizes all other dealers to set the document processing charge at up to $70.
This bill would,
until January 1, 2031, subject to specified requirements, authorize a dealer to charge a document processing charge that exceeds those amounts if the charge does not exceed 1% of the total price of the vehicle and does not exceed $260.
The bill would exempt the sale of vehicles to the State of California and any local governmental entity from these provisions. The bill would make a conforming change.

Current Bill Text

Read the full stored bill text

Download Bill PDF