AB 2629 (Chen) - As Introduced February 20, 2026 - Vehicles - registration services

Sep 20, 2026

Uploaded by Gloria

Summary of AB 2629 (Chen) presented to the Assembly Committee on Transportation on April 6, 2026, governing vehicles registration services. The bill bars a registration service from charging consumers more than 5% above DMV’s direct internet or field-office fee, and it authorizes DMV to set partner fee limits through regulations. It defines registration service and first- and second-line business partners, mandates CPI-based adjustments rounded to the nearest dollar, and specifies transaction fee handling while requiring licensing or temporary permits.

LanguageEnglish

CategoryExam

FormatPDF

Pages4

Reading Time10 min

AccessFree to download

Summary

Existing Law

Definitions and Partner Tiers

Fee Limits and Adjustments

Fiscal Effect and Comments

Date of Hearing: April 6, 2026 ASSEMBLY COMMITTEE ON TRANSPORTATION Lori D. Wilson, Chair AB 2629 (Chen)– As Introduced February 20, 2026 SUBJECT: Vehicles: registration services SUMMARY: Prohibits a registration service from charging a fee that exceeds 5% of the fee that the Department of Motor Vehicles (DMV) charges consumers when providing the service directly through the department’s internet website or field office. EXISTING LAW: 1) Authorizes DMV to establish contracts for electronic programs that allow qualified private industry partners to join the DMV in providing services that include processing and payment programs for vehicle registration and titling transactions, and services related to reporting vehicle sales and producing temporary license plates. (Vehicle Code section (VEH) 1685) 2) Defines “registration service” as a person engaged in the business of soliciting or receiving any application for the registration, renewal of registration, or transfer of registration or ownership, of any vehicle of a type subject to registration under this code, or of soliciting or receiving an application for a motor carrier permit or of transmitting or presenting any of those documents to the department, when any compensation is solicited or received for the service.“Registration service” includes, but is not limited to, a person who, for compensation, processes registration documents, conducts lien sales, or processes vehicle dismantling documents. (VEH 505.2) 3) Provides that a registration service is not a person performing registration service on a vehicle acquired by that person for his or her own personal use or for use in the regulator course of that persons business, a person who solicits applications for or sells, for compensation, nonresident permits for the operation of vehicles within the state, an employee of one or more dealers or dismantlers, who performs registration services for vehicles acquired by, consigned to, or sold by the employing dealers or dismantlers, a motor club, or a common carrier acting in the regular course of its business in transmitting applications. 4) Defines a “first line business partner” as an industry partner that receives data directly from DMV and uses it to complete registration and titling activities for that partner’s own business. (VEH 1685) 5) A second-line business partner is a partner that receives information from a first-line business partner. (VEH 1685) 6) Authorizes the DMV director to establish, through the adoption of regulations, the maximum amount that a qualified private industry partner may charge its customers. (VEH 1685) 7) Requires DMV to adjust the amount determined to the California Consumer Price Index and to round the amount to the nearest dollar. (VEH 1685) 8) Authorizes DMV to charge a $3 transaction fee for the information and services provided and authorizes the private industry partner to pass the transaction fee to the customer. (VEH 1685) 9) Prohibits a person from acting as a registration service, engaging in he business of soliciting or receiving any application for the registration, renewal, or transfer of registration without a license or temporary permit issued by DMV (VEH 11400) FISCAL EFFECT: Unknown COMMENTS: The DMV is authorized to partner with qualified private businesses to provide vehicle registration and titling services, including processing and payment programs. Private industry partners support the DMV in several ways: • Provide nightly updates to the DMV database with new vehicle owner information. • Allow faster issuance of license plates to car buyers. • Offer alternative options for DMV services. • Reduce workload at DMV field offices. • Eliminate state costs related to failed payments (partners assume this risk) . • Enable the DMV to collect interest sooner on electronic fund transfers. A registration service is a business that, for compensation, processes vehicle registration and relat

FAQs

What does AB 2629 (Chen) require for registration services charging fees?

It prohibits a registration service from charging a fee exceeding 5% of the fee DMV charges consumers when providing the service directly via its internet website or field office.

How does the bill define a “registration service” and what activities does it cover?

It defines a registration service as a person soliciting or receiving vehicle registration-related applications or documents and transmitting or presenting them to DMV for compensation, including processing registration documents and certain related transactions.

What licensing or permit requirements apply to companies acting as registration services?

A person generally cannot act as a registration service or solicit or receive applications for registration services without a license or temporary permit issued by DMV.

Sep 20, 2026

Uploaded by Gloria