Vehicles: registration fees and penalties.

Senator Seyarto's vehicle registration reform proposal establishes new requirements for handling delinquent fees when vehicles change ownership, mandating automatic waivers for buyers while creating a streamlined collection system targeting previous owners.

The legislation modifies how the Department of Motor Vehicles (DMV) processes unpaid registration fees and penalties during vehicle transfers. Under the new framework, the DMV must waive all delinquent registration charges for purchasers when those amounts accrued before the sale. This replaces the current discretionary waiver system that requires buyers to demonstrate they were unaware of unpaid fees. To recover these amounts, the DMV will implement an administrative collection mechanism that captures outstanding fees from previous owners when they register another vehicle or renew their license.

The measure also eliminates the DMV's existing authority to pursue unpaid registration fees through civil litigation against former owners. This shifts fee collection from a legal process to an administrative one integrated with routine DMV transactions. All provisions take effect January 1, 2030, allowing time for system development and implementation.

These changes alter the financial obligations between vehicle buyers and sellers regarding past-due registration fees. While purchasers receive automatic relief from inherited charges, previous owners retain responsibility for unpaid amounts through a more systematic collection approach tied to future DMV interactions.