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Bill > SB791


CA SB791

CA SB791
Vehicle dealers: document processing charge.


summary

Introduced
02/21/2025
In Committee
08/29/2025
Crossed Over
06/03/2025
Passed
09/10/2025
Dead
Vetoed
10/13/2025

Introduced Session

2025-2026 Regular Session

Bill Summary

An act to amend, repeal, and add Sections 4456.5 and 11713.1 of the Vehicle Code, relating to vehicles.

AI Summary

This bill modifies the existing California Vehicle Code to adjust the rules around document processing charges that vehicle dealers can levy when selling a vehicle. Currently, dealers can charge up to $85 for document processing if they have a contractual agreement with the Department of Motor Vehicles (DMV), or up to $70 if they do not. The bill would allow dealers to charge a document processing fee that does not exceed 1% of the total vehicle price and does not exceed $260, until January 1, 2031. Dealers must conspicuously display a notice explaining this charge and provide customers with a disclosure detailing the specific amount before executing the sales or lease agreement. The bill also specifies that this new provision does not apply to vehicle sales to the State of California or local government entities. Additionally, the bill makes conforming changes to ensure that advertisements and dealer practices accurately represent these document processing charges as not being governmental fees. The goal appears to be providing dealers with more flexibility in charging document processing fees while maintaining transparency for consumers.

Committee Categories

Budget and Finance, Transportation and Infrastructure

Sponsors (8)

Last Action

In Senate. Consideration of Governor's veto pending. (on 10/13/2025)

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