California Senate Bill SB76

California 2025-2026 Regular Session

• Introduced: 1/15/25
• Refer: 1/29/25
• Report Pass: 3/26/25
• Refer: 3/26/25
• Report Pass: 5/23/25
• Engrossed: 5/29/25
• Refer: 6/5/25
• Report Pass: 7/15/25
• Refer: 7/15/25
• Report Pass: 8/29/25
• Enrolled: 9/4/25
• Vetoed: 10/1/25

Caption

An act to amend, repeal, and add Section 9562 of the Vehicle Code, relating to vehicles.

Summary

SB 76 revises California Vehicle Code Section 9562 governing vehicle registration fees and penalties when a vehicle is sold or transferred. Under current law, the Department of Motor Vehicles may waive certain delinquent registration fees or penalties in limited circumstances, generally when the buyer was unaware of the unpaid amount and specific plate/validating-device conditions are met. The bill changes that framework by requiring the DMV to waive delinquent registration fees and penalties whenever it determines those charges accrued before the purchaser bought the vehicle. The bill also shifts responsibility for the unpaid amounts to the seller or transferor. It directs the DMV to create a system to collect those delinquent fees and penalties from the prior owner, including by collecting them when that person later registers another vehicle or renews a license. It repeals the existing civil-action collection provision and replaces it with this new collection mechanism. These changes are set to become operative on January 1, 2030, while the current version of Section 9562 remains in effect until that date.

Impact

SB 76 would amend, repeal, and add Vehicle Code Section 9562, changing how delinquent vehicle registration fees and penalties are handled in private vehicle transfers. The bill would make waiver of pre-purchase delinquent registration charges mandatory rather than discretionary in qualifying transfer cases, and it would eliminate the current validating-device condition for the waiver. It would also impose a new statutory duty on the DMV to build and use a collection system aimed at the seller or transferor, rather than relying on the current civil-action approach. The practical effect is to protect transferees and purchasers from inheriting prior owners’ registration delinquencies while preserving the state’s ability to recover those amounts from the responsible prior owner.

Sentiment

The bill appears to have been broadly supported in the Legislature, with unanimous or near-unanimous committee and floor votes reflected in the available history. It moved through committee and floor consideration without recorded opposition in the provided vote data, suggesting general agreement with the consumer-protection and administrative-reform goals of the measure. The final context notes a veto sustained, indicating that despite legislative approval, the measure did not ultimately become law.

Contention

The main policy issue is who should bear responsibility for unpaid registration fees and penalties discovered during a vehicle transfer. Support for the bill is reflected in its unanimous votes and likely rests on the view that innocent purchasers should not be penalized for a prior owner’s nonpayment. Any concern would center on the DMV’s ability to implement a new collection system and the administrative burden of shifting collection from civil actions to a more automated process tied to future registrations or renewals. The delayed operative date of January 1, 2030 suggests the bill’s supporters anticipated implementation complexity and wanted time for the DMV to prepare.