Existing law imposes renewal fee penalties for late payment of vehicle registration except in limited specified cases. Existing law authorizes the Department of Motor Vehicles to waive the registration penalties accrued before the purchase of a vehicle upon payment for the fees for registration due, if the transferee or purchaser was not aware that the fees were unpaid. Existing law also authorizes the department to waive the registration fees that became due before the purchase of the vehicle if the transferee or purchaser was not aware that the fees were unpaid and the license plate assigned to the vehicle displays a validating device issued by the department that contains the year number of the registration year for which the transferee or purchaser is requesting a waiver of fees. Existing law further provides that these unpaid fees and penalties are the personal debt of the transferor of the vehicle and may be collected by the department in an appropriate civil action if the department has waived the fees and penalties.

This bill would instead require the department to waive delinquent registration fees and penalties when a transferee or purchaser of a vehicle applies for a transfer of registration if the department determines that the fees became due or the penalties accrued before the purchase of the vehicle. The bill would require the department to create a system to collect these delinquent fees and penalties from the seller or transferor. The bill would repeal the provision authorizing the department to collect the waived fees and penalties in a civil action. These provisions would become operative on January 1, 2030.