Bill Text: CA SB1249 | 2021-2022 | Regular Session | Amended

California Senate Bill 1249 (Prior Session Legislation)

Bill Title: Vehicle dealers: document processing charge.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2022-06-27 - June 27 set for first hearing canceled at the request of author. [SB1249 Detail]

Download: California-2021-SB1249-Amended.html

Amended IN Senate May 11, 2022

Amended IN Senate May 04, 2022

Amended IN Senate March 16, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 1249

Introduced by Senator Archuleta

February 17, 2022

An act to amend, repeal, and add Section 4456.5 of the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL'S DIGEST

SB 1249, as amended, Archuleta. 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 (DMV) 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, commencing January 1, 2024, increase the maximum document processing charge that may be imposed by a private industry partner dealer on a vehicle purchaser or lessee to $175. The bill would also require the DMV to impose a fee on dealers that does not exceed the DMV’s reasonable costs in enforcing dealer legal obligations related to vehicle sales and lease transactions, or an unspecified amount, whichever is less.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 4456.5 of the Vehicle Code is amended to read:

4456.5.

(a) A dealer may charge the purchaser or lessee of a vehicle the following charges:

(1) 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. The dealer document processing charge shall not be represented as a governmental fee.

(A) If a dealer has a contractual agreement with the department to be a private industry partner pursuant to Section 1685, the document processing charge shall not exceed eighty-five dollars ($85).

(B) If a dealer does not have a contractual agreement with the department to be a private industry partner pursuant to Section 1685, the document processing charge shall not exceed seventy dollars ($70).

(2) An electronic filing charge, not to exceed the actual amount the dealer is charged by a first-line service provider for providing license plate processing, postage, and the fees and services authorized pursuant to subdivisions (a) and (d) of Section 1685, including services related to reporting vehicle sales and producing temporary license plates pursuant to Sections 4456 and 4456.2. The electronic filing charge shall not be used to pay for additional fees, goods, or services not directly related to the electronic registration of a motor vehicle, including, but not limited to, the receipt by the dealer of free or discounted goods, services, or financial incentives. The director may establish, through the adoption of regulations, the maximum amount that a first-line service provider may charge a dealer. The electronic filing charge shall not be represented as a governmental fee.

(b) As used in this section, the term “first-line service provider” shall have the same meaning as defined in subdivision (b) of Section 1685.

(c) This section does not prohibit a first-line service provider from entering into contracts with dealers for products and services unrelated to electronic vehicle registration services.

(d) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.

SEC. 2.

Section 4456.5 is added to the Vehicle Code, to read:

4456.5.

(a) A dealer may charge the purchaser or lessee of a vehicle the following charges:

(1) (A) 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. The dealer document processing charge shall not be represented as a governmental fee.

(B) (i) If a dealer has a contractual agreement with the department to be a private industry partner pursuant to Section 1685, the document processing charge shall not exceed one hundred seventy-five dollars ($175).

(ii) If a dealer does not have a contractual agreement with the department to be a private industry partner pursuant to Section 1685, the document processing charge shall not exceed seventy dollars ($70).

(C)The department shall impose a fee on dealers that does not exceed the department’s reasonable costs in enforcing dealer obligations related to vehicle sales and lease transactions, or ___dollars ($___ ), whichever is less. The fee collected pursuant to this subparagraph shall be deposited in the Motor Vehicle Account.

(b) As used in this section, the term “first-line service provider” has the same meaning as defined in subdivision (b) of Section 1685.

(c) This section does not prohibit a first-line service provider from entering into contracts with dealers for products and services unrelated to electronic vehicle registration services.

(d) This section shall become operative on January 1, 2024.