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State lawmakers mull change to law allowing car auctions without informing owners

The California State Capital building in Sacramento
David Sanabria
/
Flickr / Creative Commons
The California State Capital building in Sacramento

State lawmakers have pushed forward legislation that would change a decades-old state law allowing the Department of Motor Vehicles to receive millions of dollars from auctioned cars without telling the owners.

The bill from Murrieta Republican Senator Kelly Seyarto directly follows CalMatters' reporting, which revealed that the DMV collected more than eight million dollars from nearly 5,300 cars sold at auction from 2016 to late 2024, without having to notify the owners that their towed cars had been sold for a surplus.

The legislation would require the department to notify owners within 14 days of receiving the surplus, detailing the amount and how the owner can claim their money. It would also require the notice to be sent through certified mail with a return receipt.

A hearing for the bill is scheduled for today in the Senate Appropriations Committee.

Sunni M. Khalid is a veteran of more than 40 years in journalism, having worked in print, radio, television, and web journalism.