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SACRAMENTO, CA – Senator Kelly Seyarto (R-Murrieta) has introduced SB 1029, a consumer protection measure that would require the California Department of Motor Vehicles (DMV) to notify vehicle owners when surplus funds from a lien sale may be owed to them.
When a vehicle is sold through a DMV lien sale, and the auction generates more money than what is owed, the remaining balance, known as surplus proceeds, is forwarded to the DMV. Vehicle owners have up to three years to claim those funds.
However, existing law does not require the DMV to notify vehicle owners that surplus funds may be available or explain how to claim them.
According to a CalMatters analysis of DMV data, between 2016 and 2024, the DMV collected more than $8 million in surplus proceeds from nearly 5,300 vehicle auctions.
Without direct notification, vehicle owners may not know that surplus funds exist. If the funds are not claimed within three years, the money is retained in the DMV’s Motor Vehicle Account.
SB 1029 would require the DMV to send certified notice within 14 days of receiving lien sale proceeds, informing the registered owner that surplus funds may be available and providing instructions on how to file 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.”
SB 1029 reflects Senator Seyarto’s ongoing commitment to government transparency and to strengthening consumer protections.