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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-19</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureNum>2269</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Macedo</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Macedo</ns0:Name>
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<ns0:Title> An act to amend Sections 3071 and 3072 of the Civil Code, relating to liens.</ns0:Title>
<ns0:RelatingClause>liens</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Vehicles: liens.</ns0:Subject>
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<html:p>Existing law provides one lien sale procedure for vehicles that have been determined to have a value that does not exceed $4,000 and a different lien sale procedure for vehicles that have been determined to have a value exceeding $4,000. Existing law requires a lienholder to apply to the Department of Motor Vehicles for the issuance of an authorization to conduct a lien sale, upon an application that is to be executed under penalty of perjury.</html:p>
<html:p>This bill would increase the above-described vehicle value threshold from $4,000 to $7,000. Commencing January 1, 2030, and triennially thereafter, the bill would require the Director of Motor Vehicles to adjust that value to reflect changes in inflation, as specified.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 3071 of the
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is amended to read:
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<ns0:Num>3071.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A lienholder shall apply to the department for the issuance of an authorization to conduct a lien sale pursuant to this section for any vehicle with a value determined to be over seven thousand dollars ($7,000).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Commencing January 1, 2030, and triennially thereafter, the Director of Motor Vehicles shall adjust the threshold value specified in subparagraph (A) to reflect any increase in inflation as measured by the Consumer Price Index for All Urban Consumers (CPI-U) published by the United States Bureau of Labor Statistics.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A filing fee shall be charged by the department and may be recovered by the lienholder if a lien sale is conducted or if the vehicle is redeemed. The application shall be executed under penalty of perjury and shall include all of the following information:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A description of the vehicle, including make, year model, identification number, license number, and state of registration. For motorcycles, the engine number also shall be included. If the vehicle identification number is not available, the department shall request an inspection of the vehicle by a peace officer, licensed vehicle verifier, or departmental employee before accepting the application.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The names and addresses of the registered and legal owners of the vehicle, if ascertainable from the registration certificates within the vehicle, and the name and address of any person whom the lienholder knows, or reasonably should know, claims an
interest in the vehicle.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A statement of the amount of the lien and the facts that give rise to the lien.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Upon receipt of an application made pursuant to paragraph (2) of subdivision (a), the department shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Notify the vehicle registry agency of a foreign state of the pending lien sale, if the vehicle bears indicia of registration in that state.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
By certified mail, send a notice, a copy of the application, and a return envelope preaddressed to the department to the registered and legal owners at their addresses of record with the department, and to any other person whose name and address is listed in the application.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The notice required pursuant to subdivision (b) shall include all of the following statements and information:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
An application has been made with the department for authorization to conduct a lien sale.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The person has a right to a hearing in court.
</html:p>
<html:p>
(3)
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If a hearing in court is desired, a Declaration of Opposition form, signed under penalty of perjury, shall be signed and returned to the department within 10 days of the date that the notice required
pursuant to subdivision (b) was mailed.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
If the Declaration of Opposition form is signed and returned to the department, the lienholder shall be allowed to sell the vehicle only if he or she obtains a court judgment, if he or she obtains a subsequent release from the declarant or if the declarant, cannot be served as described in subdivision (e).
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
If a court action is filed, the declarant shall be notified of the lawsuit at the address shown on the Declaration of Opposition form and may appear to contest the claim.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The person may be liable for court costs if a judgment is entered in favor of the lienholder.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
If the department receives the Declaration of Opposition form in the time specified, the department shall notify the lienholder within
16 days of the receipt of the form that a lien sale shall not be conducted unless the lienholder files an action in court within 30 days of the department’s notice under this subdivision. A lien sale of the vehicle shall not be conducted unless judgment is subsequently entered in favor of the lienholder or the declarant subsequently releases his or her interest in the vehicle. If a money judgment is entered in favor of the lienholder and the judgment is not paid within five days after becoming final, then the judgment may be enforced by lien sale proceedings conducted pursuant to subdivision (f).
</html:p>
<html:p>
(e)
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Service on the declarant in person or by certified mail with return receipt requested, signed by the declarant or an authorized agent of the declarant at the address shown on the Declaration of Opposition form, shall be effective for the serving of process. If the lienholder has served the declarant by certified mail at the address shown on the
Declaration of Opposition form and the mail has been returned unclaimed, or if the lienholder has attempted to effect service on the declarant in person with a marshal, sheriff, or licensed process server and the marshal, sheriff, or licensed process server has been unable to effect service on the declarant, the lienholder may proceed with the judicial proceeding or proceed with the lien sale without a judicial proceeding. The lienholder shall notify the department of the inability to effect service on the declarant and shall provide the department with a copy of the documents with which service on the declarant was attempted. Upon receipt of the notification of unsuccessful service, the department shall send authorization of the sale to the lienholder and send notification of the authorization to the declarant.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Upon receipt of authorization to conduct the lien sale from the department, the lienholder shall immediately do all of the
following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
At least five days, but not more than 20 days, prior to the lien sale, not counting the day of the sale, give notice of the sale by advertising once in a newspaper of general circulation published in the county in which the vehicle is located. If there is no newspaper published in the county, notice shall be given by posting a Notice of Sale form in three of the most public places in the town in which the vehicle is located and at the place where the vehicle is to be sold for 10 consecutive days prior to and including the day of the sale.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Send a Notice of Pending Lien Sale form 20 days prior to the sale but not counting the day of sale, by certified mail with return receipt requested, to each of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The registered and legal owners of the vehicle, if registered in this state.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
All persons known to have an interest in the vehicle.
</html:p>
<html:p>
(C)
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The department.
</html:p>
<html:p>
(g)
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All notices required by this section, including the notice forms prescribed by the department, shall specify the make, year model, vehicle identification number, license number, and state of registration, if available, and the specific date, exact time, and place of sale. For motorcycles, the engine number shall also be included.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
Following the sale of a vehicle, the person who conducts the sale shall do both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Remove and destroy the vehicle’s license plates.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Within five days of the sale, submit a completed “Notice of
Release of Liability” form to the Department of Motor Vehicles.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The Department of Motor Vehicles shall retain all submitted forms described in paragraph (2) of subdivision (h) for two years.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
No lien sale shall be undertaken pursuant to this section unless the vehicle has been available for inspection at a location easily accessible to the public for at least one hour before the sale and is at the place of sale at the time and date specified on the notice of sale. Sealed bids shall not be accepted. The lienholder shall conduct the sale in a commercially reasonable manner.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
Within 10 days after the sale of any vehicle pursuant to this section, the legal or registered owner may redeem the vehicle upon the payment of the amount of the sale, all costs and expenses of the sale, together with interest on the sum
at the rate of 12 percent per annum from the due date thereof or the date when that sum was advanced until the repayment. If the vehicle is not redeemed, all lien sale documents required by the department shall then be completed and delivered to the buyer.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
Any lien sale pursuant to this section shall be void if the lienholder does not comply with this chapter. Any lien for fees or storage charges for parking and storage of a motor vehicle shall be subject to Section 10652.5 of the Vehicle Code.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 3072 of the
<ns0:DocName>Civil Code</ns0:DocName>
is amended to read:
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<ns0:Num>3072.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
For vehicles with a value determined to be seven thousand dollars ($7,000) or less, the lienholder shall apply to the department for the names and addresses of the registered and legal owners of record. The request shall include a description of the vehicle, including make, year, model, identification number, license number, and state of
registration. If the vehicle identification number is not available, the Department of Motor Vehicles shall request an inspection of the vehicle by a peace officer, licensed vehicle verifier, or departmental employee before releasing the names and addresses of the registered and legal owners and interested parties.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Commencing January 1, 2030, and triennially thereafter, the Director of Motor Vehicles shall adjust the threshold value specified in subparagraph (A) to reflect any increase in inflation as measured by the Consumer Price Index for All Urban Consumers (CPI-U) published by the United States Bureau of Labor Statistics.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The lienholder shall, immediately upon receipt of the names and addresses, send, by certified mail with return receipt requested or by United
States Postal Service Certificate of Mailing, a completed Notice of Pending Lien Sale form, a blank Declaration of Opposition form, and a return envelope preaddressed to the department, to the registered owner and legal owner at their addresses of record with the department, and to any other person known to have an interest in the vehicle. The lienholder shall additionally send a copy of the completed Notice of Pending Lien Sale form to the department by certified mail on the same day that the other notices are mailed pursuant to this subdivision.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
All notices to persons having an interest in the vehicle shall be signed under penalty of perjury and shall include all of the following information and statements:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A description of the vehicle, including make, year model, identification number, license number, and state of registration. For motorcycles, the engine number shall
also be included.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The specific date, exact time, and place of sale, which shall be set not less than 31 days, but not more than 41 days, from the date of mailing.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The names and addresses of the registered and legal owners of the vehicle and any other person known to have an interest in the vehicle.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
All of the following statements:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The amount of the lien and the facts concerning the claim which gives rise to the lien.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The person has a right to a hearing in court.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
If a court hearing is desired, a Declaration of Opposition form, signed under penalty of perjury, shall be signed and returned to the
department within 10 days of the date the Notice of Pending Lien Sale form was mailed.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
If the Declaration of Opposition form is signed and returned, the lienholder shall be allowed to sell the vehicle only if he or she obtains a court judgment or if he or she obtains a subsequent release from the declarant or if the declarant cannot be served as described in subdivision (e).
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
If a court action is filed, the declarant shall be notified of the lawsuit at the address shown on the Declaration of Opposition form and may appear to contest the claim.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
The person may be liable for court costs if a judgment is entered in favor of the lienholder.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
If the department receives the completed Declaration of Opposition form within the time specified, the
department shall notify the lienholder within 16 days that a lien sale shall not be conducted unless the lienholder files an action in court within 30 days of the notice and judgment is subsequently entered in favor of the lienholder or the declarant subsequently releases his or her interest in the vehicle. If a money judgment is entered in favor of the lienholder and the judgment is not paid within five days after becoming final, then the judgment may be enforced by lien sale proceedings conducted pursuant to subdivision (f).
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Service on the declarant in person or by certified mail with return receipt requested, signed by the declarant or an authorized agent of the declarant at the address shown on the Declaration of Opposition form, shall be effective for the serving of process. If the lienholder has served the declarant by certified mail at the address shown on the Declaration of Opposition form and the mail has been returned unclaimed,
or if the lienholder has attempted to effect service on the declarant in person with a marshal, sheriff, or licensed process server and the marshal, sheriff, or licensed process server has been unable to effect service on the declarant, the lienholder may proceed with the judicial proceeding or proceed with the lien sale without a judicial proceeding. The lienholder shall notify the Department of Motor Vehicles of the inability to effect service on the declarant and shall provide the Department of Motor Vehicles with a copy of the documents with which service on the declarant was attempted. Upon receipt of the notification of unsuccessful service, the Department of Motor Vehicles shall send authorization of the sale to the lienholder and shall send notification of the authorization to the declarant.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
At least 10 consecutive days prior to and including the day of the sale, the lienholder shall post a Notice of Pending Lien Sale form in a
conspicuous place on the premises of the business office of the lienholder and if the pending lien sale is scheduled to occur at a place other than the premises of the business office of the lienholder, at the site of the forthcoming sale. The Notice of Pending Lien Sale form shall state the specific date and exact time of the sale and description of the vehicle, including the make, year model, identification number, license number, and state of registration. For motorcycles, the engine number shall also be included. The notice of sale shall remain posted until the sale is completed.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Following the sale of a vehicle, the person who conducts the sale shall do both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Remove and destroy the vehicle’s license plates.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Within five days of the sale, submit a completed “Notice of Release of
Liability” form with the Department of Motor Vehicles.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
The Department of Motor Vehicles shall retain all submitted forms described in paragraph (2) of subdivision (g) for two years.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
No lien sale shall be undertaken pursuant to this section unless the vehicle has been available for inspection at a location easily accessible to the public at least one hour before the sale and is at the place of sale at the time and date specified on the notice of sale. Sealed bids shall not be accepted. The lienholder shall conduct the sale in a commercially reasonable manner. All lien sale documents required by the department shall be completed and delivered to the buyer immediately following the sale.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
Any lien sale pursuant to this section shall be void if the lienholder does not comply with this chapter. Any lien for
fees or storage charges for parking and storage of a motor vehicle shall be subject to Section 10652.5 of the Vehicle Code.
</html:p>
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