Vehicle lien sales: proceeds., the official text

An act to amend Section 3073 of the Civil Code, relating to liens, and making an appropriation therefor.

LEGISLATIVE COUNSEL'S DIGEST

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.

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

SECTION 1.
Section 3073 of the Civil Code is amended to read:
3073.
The proceeds of a vehicle lien sale under this chapter shall be disposed of as follows:
(a) The amount necessary to discharge the lien and the cost of processing the vehicle shall be paid to the lienholder. The cost of processing shall not exceed seventy dollars ($70) for each vehicle valued at four thousand dollars ($4,000) or less, or one hundred dollars ($100) for each vehicle valued over four thousand dollars ($4,000).
(b) The balance, if any, shall be forwarded to the Controller within 15 days of any sale conducted pursuant to Section 3071 or within five days of any sale conducted pursuant to Section 3072 and shall be treated as escheated property in accordance with Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure, unless federal law requires these funds to be disposed in a different manner.

SEC. 2.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.