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<ns0:Id>20250AB__262999INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Chen</ns0:AuthorText>
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<ns0:Legislator>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Chen</ns0:Name>
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<ns0:Title> An act to amend Section 11406 of the Vehicle Code, relating to vehicles. </ns0:Title>
<ns0:RelatingClause>vehicles</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Vehicles: registration services.</ns0:Subject>
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<html:p>Existing law prohibits a person from engaging in the business of soliciting or receiving an application for the registration, renewal of registration, or transfer of registration or ownership of a vehicle that is required to be registered, for compensation, without a license or temporary permit issued by the Department of Motor Vehicles. In order to obtain a license to be a registration service, existing law requires the applicant to submit an application to the Department of Motor Vehicles that includes, among other things, a bond and nonrefundable application fee. Existing law requires every registration service to keep accurate business records containing specified information and provide a disclosure to each customer that certain services may be provided by the department without an additional fee.</html:p>
<html:p>This bill would require, for any service that
is also provided by the department, that the additional fee imposed by the registration service be limited to 5 % above the fee that the department would charge to the consumer for that same service.</html:p>
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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>
<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:VEH:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.5.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'11406.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 11406 of the
<ns0:DocName>Vehicle Code</ns0:DocName>
is amended to read:
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<ns0:Num>11406.</ns0:Num>
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<html:p>
(a)
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Every registration service shall keep accurate business records containing all of the following information:
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<html:p>
(1)
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The name, address, and license number of the registration service and the name and address of every employee who performs registration work.
</html:p>
<html:p>
(2)
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The name and address of each client for whom registration work was performed.
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<html:p>
(3)
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The identity of every vehicle by year, make, type, license number, and vehicle identification number on which registration work was performed.
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<html:p>
(4)
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The amount of registration fees or payments collected for each vehicle on which
registration work was performed, including the method of payment to the registration service.
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<html:p>
(5)
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The amount of registration fees or payments submitted to the department for each vehicle on which registration work was performed, including the date and method of payment to the department.
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<html:p>
(6)
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The amount of any refunds or additional charges on registration fees or payments collected for each vehicle on which registration work was performed, including the date and method of payment of the refund or additional charge by or to the client, the registration service, or the department.
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<html:p>
(7)
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The name, signature, or initials of each employee performing work on each transaction and the date the work was done.
</html:p>
<html:p>
(8)
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The cost to each client for the registration work
performed on each of the client’s vehicles or to obtain a motor carrier permit.
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<html:p>
(9)
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For each motor carrier for which motor carrier permit work was performed, the carrier identification number, business type, business address, carrier type, activities, and number of vehicles.
</html:p>
<html:p>
(10)
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For each motor carrier for which motor carrier permit work was performed, the amount of fees or payment collected and the method of payment.
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<html:p>
(11)
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For each motor carrier for which motor carrier permit work was performed, the amount of fees or payment submitted to the department, including the date submitted and the method of payment to the department.
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<html:p>
(b)
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As an alternative to maintaining the records required by paragraphs (1) to (11), inclusive, of subdivision (a), a
registration service may retain a copy of the listing sheet approved by the department for transmitting registration or motor carrier permit documents to the department.
</html:p>
<html:p>
(c)
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Every registration service shall provide each customer with a document containing all of the information required by subdivision (a) relative to that customer’s transaction, excluding paragraph (7) and excluding the addresses of employees and other customers’ names and addresses. This requirement does not apply to transactions for customers of a dealer or dismantler.
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<html:p>
(d)
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Every registration service shall display prominently at its place of business a sign indicating that the service is not a branch of the department and shall inform each customer of that fact.
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(e)
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(1)
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Every registration service shall provide a disclosure to each customer that the services described in Section 11400 may be provided by the department without an additional fee. If a registration service is providing a service described in Section 11400 in person, the disclosure required pursuant to this subdivision shall be in writing. If a registration service is providing a service described in Section 11400 on an
internet website, the disclosure required pursuant to this subdivision shall be in a conspicuous place on the internet website.
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<html:p>
(2)
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For any service provided by the department, the additional fee charged by a registration service shall not exceed 5 percent above the fee that the department charges to consumers when providing that service directly through the department’s internet website or field office.
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