Sacramento, CA – Senator Kelly Seyarto (R-Murrieta) announced that Governor Gavin Newsom has vetoed SB 1029, legislation aimed at helping Californians recover unclaimed money from the sale of their vehicles.
Under current law, when a vehicle is sold through a lien sale, proceeds remaining after towing, storage, and other costs are sent to the Department of Motor Vehicles (DMV). Vehicle owners then have three years to claim those funds. If they do not, the money remains with the DMV.
SB 1029 would have required the DMV to transfer unclaimed lien sale proceeds to the State Controller after three years, where the funds would be treated like other unclaimed property. This would allow Californians to continue searching for and claiming money that rightfully belongs to them rather than permanently losing access to it.
This legislation was inspired by a March 2025 CalMatters investigation that found the DMV had retained more than $8 million in excess proceeds from nearly 5,300 vehicle lien sales between 2016 and 2024. The investigation highlighted cases in which former vehicle owners were unaware that proceeds from the sale of their vehicles were being held by the state.
“Californians should not lose money that rightfully belongs to them simply because they did not know it was there,” said Senator Seyarto. “When the state is holding someone’s money, the priority should be getting it back into the hands of its rightful owner. For many families, a few hundred or a few thousand dollars can make a real difference, and government should not benefit simply because a deadline passed. These funds belong to Californians, and they deserve a meaningful opportunity to recover them.”
The DMV raised concerns late in the legislative process regarding the administration and implementation of SB 1029. In his veto message, Governor Newsom cited concerns about dividing responsibility between the DMV and State Controller’s Office. The veto also cited potential additional administrative costs to the Motor Vehicle Account.
“This is not going away because of a veto,” continued Seyarto. “I remain committed to fixing this problem and will work to address the concerns raised by the DMV and the Governor’s Office. I intend to reintroduce this legislation next year and continue working toward a solution that gives Californians a fair opportunity to recover money that belongs to them.”
SB 1029 received bipartisan support and no opposition.