Senator Kelly Seyarto has introduced Senate Bill 1029, which aims to enhance consumer protections for Californians involved in Department of Motor Vehicles (DMV) lien sales. The proposed legislation would require the DMV to notify vehicle owners when surplus funds from a lien sale may be owed to them.
Currently, when a vehicle is sold at auction through a DMV lien sale and the proceeds exceed the amount owed, the extra money—referred to as surplus proceeds—is sent to the DMV. Vehicle owners have up to three years to claim these funds. However, under existing law, there is no requirement for the DMV to inform owners about the potential availability of surplus funds or how they can file a claim.
A CalMatters analysis of DMV data found that from 2016 to 2024, more than $8 million in surplus proceeds were collected by the DMV from nearly 5,300 vehicle auctions. If these funds are not claimed within three years, they remain in the DMV’s Motor Vehicle Account.
SB 1029 would mandate that the DMV send certified notice within 14 days of receiving lien sale proceeds. This notice would inform registered owners that surplus funds may be available and provide instructions on how to submit a claim.
“Government processes should be transparent and fair,” said Senator Seyarto. “For many Californians, losing a vehicle is already a serious financial hardship. If a lien sale generates surplus funds, those funds belong to the vehicle owner. SB 1029 ensures people are notified and given a fair opportunity to recover what is rightfully theirs.”
The bill continues Senator Seyarto’s efforts toward government transparency and stronger consumer protections.
