Senator Cortese's vehicle dealer legislation modifies California's document processing fee structure, allowing dealers to charge up to 1% of a vehicle's base price or $500, whichever is less, for document preparation and processing. This change creates flexibility beyond the current caps of $85 for dealers partnered with the Department of Motor Vehicles (DMV) and $70 for non-partnered dealers.
The bill maintains existing consumer protections by requiring dealers to clearly distinguish these charges from government fees. It also preserves the current electronic filing fee system, where dealers may pass through actual costs charged by service providers for license plate processing and registration services. Sales to the State of California remain exempt from the new fee provisions.
Under the measure, the DMV director retains authority to regulate maximum electronic filing charges through formal rulemaking. The legislation preserves restrictions on using these fees for unrelated products or services, while continuing to allow service providers to contract separately with dealers for non-registration services.
![]() Tony StricklandR Senator | Bill Author | Not Contacted | |
![]() Tom LackeyR Assemblymember | Committee Member | Not Contacted | |
![]() Phillip ChenR Assemblymember | Bill Author | Not Contacted | |
![]() Cecilia Aguiar-CurryD Assemblymember | Committee Member | Not Contacted | |
![]() Heath FloraR Assemblymember | Bill Author | Not Contacted |
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Senator Cortese's vehicle dealer legislation modifies California's document processing fee structure, allowing dealers to charge up to 1% of a vehicle's base price or $500, whichever is less, for document preparation and processing. This change creates flexibility beyond the current caps of $85 for dealers partnered with the Department of Motor Vehicles (DMV) and $70 for non-partnered dealers.
The bill maintains existing consumer protections by requiring dealers to clearly distinguish these charges from government fees. It also preserves the current electronic filing fee system, where dealers may pass through actual costs charged by service providers for license plate processing and registration services. Sales to the State of California remain exempt from the new fee provisions.
Under the measure, the DMV director retains authority to regulate maximum electronic filing charges through formal rulemaking. The legislation preserves restrictions on using these fees for unrelated products or services, while continuing to allow service providers to contract separately with dealers for non-registration services.
Ayes | Noes | NVR | Total | Result |
---|---|---|---|---|
29 | 1 | 10 | 40 | PASS |
![]() Tony StricklandR Senator | Bill Author | Not Contacted | |
![]() Tom LackeyR Assemblymember | Committee Member | Not Contacted | |
![]() Phillip ChenR Assemblymember | Bill Author | Not Contacted | |
![]() Cecilia Aguiar-CurryD Assemblymember | Committee Member | Not Contacted | |
![]() Heath FloraR Assemblymember | Bill Author | Not Contacted |