Bill to Protect New Owners Of Used Vehicles From Liability and Penalties Passes Senate

All outstanding fees would be tied to driver’s licenses rather than vehicles under SB 76

A bill that aims to shield new owners of used vehicles from having to pay back registration fees or penalties owed by the previous owner passed out of the Senate on Thursday, moving it to be discussed and voted on in the Assembly.

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Senate Bill 76, authored by Senator Kelly Seyarto (R-Murrieta), would specifically require the Department of Motor Vehicles to waive delinquent registration fees and penalties when a transferee or purchaser of a vehicle applies for a transfer of registration if the department determines that the fees became due or the penalties accrued before the purchase of the vehicle. SB 76 would also require the department to create a system to collect these delinquent fees and penalties from the seller or transferor, as well as repeal the provision authorizing the department to collect the waived fees and penalties in a civil action.

Essentially, the bill will enhance California’s hold harmless protections for private sales of used automobiles by tying outstanding fees to an individual’s driver’s license, as opposed to a given vehicle, to collect these delinquent fees and penalties from the seller under current practices used to collect fees on delinquent traffic tickets. Should it pass, the new system would be in place by January 1, 2030.

Senator Seyarto wrote SB 76 because of the sometime high delinquent registration fees or penalties on used cars, essentially making what would be an affordable option even more expensive. An added cost of hundreds, or in some cases, thousands of dollars to a used car to clear these fees and penalties wind up harming the buyer rather than the seller, with lower-income Californians in particular being affected.

“Californians who take the time to do so, can often find better deals by purchasing used cars from private sellers instead of car dealers,” noted Senator Seyarto. “However, if it is found after the sale that the car comes with back-fees, the new owner is now on the hook for those fees in addition to any other maintenance that comes with the car. With transportation already counting for a considerable costly chunk for the average household, unexpected fees can lead to more distress instead of less as a new owner of a used car.

“As transportation costs rise exponentially, low-income households may face difficult choices between mobility and access on one hand, and household necessities on the other. New owners who have done their due-diligence should have protections from these costly, unplanned, and often hidden fees. The discovery of these fees can strain a family’s budget creating turmoil out of an initially beneficial situation.”

Click here to read the full article in the California Globe