Vehicle lien sales: proceeds.

Removed the section stating that no reimbursement is required under Section 6 of Article XIIIB of the California Constitution because the only costs would be from creating or changing a crime or infraction. This provision had been tied to a state-mandated local program that is no longer part of the bill.

The legislative counsel's digest was substantially revised to remove references to a state-mandated local program, to remove an alternative description where proceeds would be forwarded directly to the Controller (rather than through DMV with a 3-year transfer), and to remove language about misdemeanor penalties for lien violations from the existing law summary.

Formatting changes for enrollment: removal of line numbers, addition of Senate and Assembly passage dates (August 24 and August 20, 2026 respectively), addition of a Governor's receipt and approval block, and removal of accumulated amendment history from the header.

The requirement that DMV send certified mail notices within 14 days of receiving lien sale proceeds to registered owners, legal owners, and persons with an interest in the vehicle was deleted entirely.

The mechanism for handling surplus lien sale funds changed from immediate escheat (funds go directly to the Controller) to a two-step process: funds are first deposited in the DMV's Motor Vehicle Account where claims can be filed for three years, then unclaimed funds are automatically transferred to the Controller and treated as escheated property.

A phased implementation structure was added. The amended current Section 3073 (keeping funds in DMV with a 3-year claim window) expires on January 1, 2030. A new Section 3073 that adds the automatic transfer to the Controller after three years becomes operative on January 1, 2030.

The appropriation and state-mandated local program designations in the digest were corrected. The bill now clearly makes an appropriation (funds go to the continuously appropriated Unclaimed Property Fund) and imposes a state-mandated local program due to changes in the definition of an existing crime.

The balance from vehicle lien sales is no longer deposited in the Motor Vehicle Account in the State Transportation Fund. Instead, it is treated as escheated property under Chapter 7 of Title 10 of Part 3 of the Code of Civil Procedure, meaning it goes into the Unclaimed Property Fund and follows the state's unclaimed property process.

The bill title now includes 'and making an appropriation therefor' because the Unclaimed Property Fund is a continuously appropriated fund. The fiscal note changed from 'Appropriation: no' to 'Appropriation: yes.'

The balance is now forwarded to the Controller rather than being deposited by the Department of Motor Vehicles in the Motor Vehicle Account. The DMV still provides notice to interested parties within 14 days, but the destination of the funds changed.

The vote requirement changed from a simple majority to a two-thirds majority, and the state-mandated local program designation changed from 'no' to 'yes,' reflecting the broader fiscal impact of routing funds through the escheat process.

A new Section 2 was added stating that no reimbursement is required under Article XIII B of the California Constitution because any costs incurred by local agencies or school districts are limited to those arising from changes in crime definitions under Section 17556 of the Government Code.