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.
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.

Statutes affected:
SB1029: 3073 CIV
02/10/26 - Introduced: 3073 CIV
06/23/26 - Amended Assembly: 3073 CIV
SB 1029: 3073 CIV