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SB 791

RELATING TO FOOD DYES.

2025 Regular Session Introduced by Samantha DeCorte and 2 co-sponsors

SB 791 allows vehicle dealers to charge up to $260 for document processing fees, enhancing transparency for consumers while addressing rising transaction costs.

Carried over to 2026 Regular Session.
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Bill Summary · SB 791

Summary of SB 791: Vehicle Dealers - Document Processing Charge

Bill Number: SB 791
Introduced: February 21, 2025
Status: In Senate; consideration of Governor's veto pending
Author: Cortese
Classification: Bill
Subject: Vehicle Dealers, Document Processing Charge

Purpose and Intent

SB 791 aims to amend existing laws regarding the document processing charges that vehicle dealers can impose on purchasers or lessees. The bill seeks to provide flexibility for dealers to charge higher fees under specific conditions, thereby addressing the rising costs associated with vehicle transactions while ensuring transparency for consumers.

Key Provisions

  • Current Charges: Under existing law, vehicle dealers can charge:

    • Up to $85 for dealers with a contractual agreement with the Department of Motor Vehicles (DMV).
    • Up to $70 for all other dealers.

  • New Charges: SB 791 allows dealers to charge a document processing fee that exceeds these amounts until January 1, 2031, provided:

    • The charge does not exceed 1% of the total price of the vehicle.
    • The charge does not exceed $260.

  • Exemptions: The bill exempts vehicle sales to the State of California and local governmental entities from these provisions.

  • Disclosure Requirements: Dealers must:

    • Display a notice in sales offices indicating the maximum charge.
    • Provide a written disclosure to customers before executing a sales or lease agreement, clearly stating the document processing charge and affirming that it is not a government fee.

  • Electronic Filing Charge: Dealers may also charge for electronic filing, limited to the actual amount charged by a first-line service provider for processing related to vehicle registration.

Impact

  • Affected Parties: This bill primarily affects vehicle dealers and consumers engaging in vehicle transactions. Dealers will have the opportunity to charge higher fees, which may impact the overall cost of purchasing or leasing a vehicle. Consumers will benefit from clearer disclosures regarding these charges.

  • Transparency: The requirement for conspicuous notices and disclosures aims to enhance consumer awareness and understanding of the fees associated with vehicle purchases.

Procedural Aspects

  • The bill is set to remain in effect until January 1, 2031, after which it will be repealed unless further legislative action is taken.
  • The bill has undergone several legislative actions, including amendments and re-references to various committees, and is currently pending consideration of a veto by the Governor.

Conclusion

SB 791 represents a significant change in how vehicle dealers can structure their document processing charges, allowing for greater flexibility while emphasizing the need for transparency in vehicle transactions. The bill's provisions are designed to balance the interests of dealers and consumers in the automotive marketplace.

Compiled from official sources — confirm details with the bill’s official record.

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