18.055 Disposition of Low-Value Vehicles Removed for Reasons Other Than Abandonment (VC §§22851.2, 22851.6, 22851.8, 22851.10)

Follow the steps to process the disposal of a low value vehicle for reasons other than abandonment:

Step 1

Within 48 hours after removal of the vehicle, the public agency must notify the Department of Justice at:

Department of Justice
Bureau of Information Services
Stolen Vehicle Unit
PO Box 9034l7
Sacramento, CA 94203-4l70

Step 2

Within 15 working days following the date of possession of the vehicle, the lienholder must obtain from DMV the names and addresses of all persons having an interest in the vehicle.

Step 3

Immediately upon receipt of DMV record information, the lienholder must complete and send by certified mail, with return receipt requested or U.S. Postal Service Certificate of Mailing:

• A Notice of Intent to Dispose of a Vehicle Valued at $500 or Less Removed by a Public Agency for Reasons Other Than Abandonment (REG 684) (PDF).
• A return envelope pre-addressed to the lienholder to:
  • The registered owner.
  • The legal owner.
  • Any other persons having an interest in the vehicle.

Step 4

• The public agency must complete Section A of the Public Agency Authorization to Dispose of a Vehicle Valued at $500 or Less to a Scrap Iron Processor or Dismantler (REG 462) (PDF).
• After the expiration of the opposition period, the REG 462 is distributed as follows:
  • White and pink copies to the towing agent.
  • Yellow copy retained by the public agency for their records.

Step 5

• If a Declaration of Opposition is not received by the intended disposal date, the lienholder must dispose of the vehicle to a dismantler or a scrap iron processor and provide the following to the buyer:
  • REG 462 white copy.
  • REG 684A.
  • Notice of Intent to Dispose of a Vehicle Valued at $500 or Less Removed by a Public Agency for Reasons Other Than Abandonment (REG 686) (PDF) completed by the lienholder (VC 22851.8).
  • Certified mailing receipts or U.S. Postal Service Certificate of Mailing receipt.
• If a Declaration of Opposition is received, in addition to the above documents, one of the following must also be given to the buyer:
  • Copy of a court judgment and a Statement of Facts (REG 256) (PDF) stating that five days have passed since the judgment was awarded and no payment has been received.
  • Declarant’s release (original signature required).
  • Letter of authorization to continue with the lien sale issued by DMV.

Step 6

Within five days of selling the vehicle to a dismantler or scrap iron processor, the lienholder must provide to the dismantler a:

• REG 462-white copy.
• REG 686.
• Certified mailing receipt or U.S. Postal Service Certificate of Mailing receipt.
• Document authorizing continuation of the sale after a Declaration of Opposition was submitted, if applicable.

Step 7

Within 90 days of acquisition, the dismantler must submit to DMV a:

• REG 462-white copy.
• REG 686.
• Certified mailing receipt or U.S. Postal Service Certificate of Mailing receipt.
• Document authorizing continuation of the sale after a Declaration of Opposition was submitted, if applicable.

18.050 Declaration of Opposition to a Lien Sale (CC §§3071 [d][e], 3072 [d][e])

Follow the steps to process a removal of an abandoned low value vehicle by local enforcement:

Step 1

• At least 72 hours before the vehicle is removed, a peace officer or an authorized public agency employee must securely attach a distinctive notice stating the vehicle will be removed by the public agency.
• If the vehicle lacks an engine, transmission, wheels, tires, doors, windshield, or any other part or equipment necessary to operate safely on the highways, it may be removed immediately without posting a notice (VC §22669(d)).

Step 2

Immediately after the vehicle is removed, the public agency must notify the Department of Justice at:
Department of Justice
Bureau of Information Services
Stolen Vehicle Unit
PO Box 9034l7
Sacramento, CA 94203-4l70

Step 3

The public agency or the lienholder, at the request of the public agency, must obtain (from the DMV record) the names of all persons having interest in the vehicle.

Step 4

Within 48 hours of the removal, excluding weekends and holidays, the public agency or the lienholder, at the public agency’s request, must notify all interested parties of the intent to dispose of the vehicle as follows:

• Public agency notification — By first class or certified mail, send a written notice pursuant to VC §22851.3(d) to:
  • The registered owner.
  • The legal owner.
  • Any other persons having interest in the vehicle.

Lienholder notification at the request of the public agency — Complete and send by certified mail a Notice of Intent to Dispose of a Vehicle Valued at $500 or Less Removed by a Public Agency for Reasons Other Than Abandonment (REG 684) form to:

• The registered owner.
• The legal owner.
• Any other persons having an interest in the vehicle.

Step 5

• The public agency must complete Section A of the Public Agency Authorization to Dispose of a Vehicle Valued at $500 or Less to a Scrap Iron Processor or Dismantler (REG 462) (PDF):
  • If the vehicle remains unclaimed after 15 days from the notification date.
  • The towing and storage fees were not paid.
  • A request for a post-storage hearing was not made or the post-storage hearing was not attended.
    
• The REG 462 as follows:
  • White and pink copies to the towing agent.
  • Yellow copy retained by the public agency for their records.

Note If there is no DMV record, the public agency may issue a REG 462 any time after the removal.

Step 6

If the notification was made by the lienholder at the request of the public agency, the lienholder must complete a Statement of Facts (REG 256) and a Statement of Facts for Vehicles Valued at $500 or Less Removed by a Public Agency for Reasons Other Than Abandonment (REG 686) (PDFs) (VC 22851.3).

Step 7

The public agency must dispose of the vehicle to a licensed dismantler or a scrap iron processor and give the dismantler or scrap iron processor the following:

• Public agency notification.
  • A REG 462 white copy (lienholder completes Section B).
  • Copy of the written notification.
• Lienholder notification.
  • REG 462 white copy (lienholder completes Section B).
  • REG 684.
  • REG 686.
  • Certified mailing receipts.

Step 8

If the notification was made by the lienholder at the request of the public agency, the lienholder must mail a copy of the REG 686 to DMV at the address on the form.

Step 9

Within 90 days of acquiring the vehicle, the dismantler must submit to DMV a:

• Notice To Dismantler (Report of Vehicle to be Dismantled) (REG 42) form.
• REG 462 white copy.
• REG 684.
• REG 686.
• Certified mailing receipts or the written notification from public agency.

Note A scrap metal processor who acquires a vehicle subject to registration fees is not required to pay registration fees or submit a PNO if the vehicle was abandoned and removal was authorized by a public agency (VC §9564).

18.045 Dismantler Acquisition of Vehicles Removed by a Local Abatement Procedure (VC §22664)

If a copy of the resolution or order authorizing disposition of the vehicle is maintained as part of the dismantler’s business records, dismantlers who acquire these vehicles from a public agency are exempt:

• From paying any fees or penalties that may have accrued for the vehicle.
• From filing a Notice To Dismantler (Report of Vehicle to be Dismantled) (REG 42) (PDF).

18.040 Dismantler Acquisition of Abandoned Low-Value Vehicles (VC §11520)

Dismantlers who acquire low-value vehicles removed for reasons other than abandonment from a public agency are exempt from paying any fees or penalties that may have accrued, but must submit the Notice To Dismantler (Report of Vehicle to be Dismantled) (REG 42) (PDF).

18.035 Determining Fees

If the Vehicle	And	Then
If the VehicleRegistration expired before going into the lienholder’s possession and while in the lienholder’s possession additional registration year(s) became due	AndThe lienholder does not operate a storage garage or tow service	ThenRenewal fees and penalties that became due prior to entering the lienholder’s possession are due. In addition, the current renewal or PNO fees are due and must be paid within 20 days of the sale date to avoid penalties for the current renewal period. Note Any renewal period that became due while in the lienholder’s possession is not due, unless the vehicle is being registered during the current renewal period.
If the VehicleThe lienholder does not operate a storage garage or tow service	AndRenewal fees and penalties are due from the last expiration date.	ThenN/A
If the VehicleWas last registered in another state	AndN/A	ThenFees become due on the date of, first known operation (usually the date the vehicle entered the lienholder’s possession) and must be paid within 20 days of becoming due to avoid penalties.
If the VehicleRegistration date and/or jurisdiction is unknown	AndN/A	ThenFees become due on the date the vehicle entered the lienholder’s possession and must be paid within 20 days of becoming due to avoid penalties. Exception: Public agency impounded vehicles are assessed fees from the first known date of operation after the sale VC §4000(e)).
If the VehicleWas sold at lien sale	AndN/A	ThenUse tax is due and the vehicle must be reclassified.
If the VehicleWas retained by and is being registered to the lienholder	AndN/A	ThenUse tax is due and the vehicle must be reclassified based on the total billing and cost shown on line 2 of the Accounting of the Lien Sale and Proceeds section of the Certification of Lien Sale for Vehicle Over $4000 or From a Self-Serve Storage Facility (REG 168) (PDF), or the Auction Sale and Proceeds section of the Certification of Lien Sale for Vehicle Valued $4,000 or Less (REG 168A) (PDF). A single transfer fee is due.
If the VehicleIs being registered in the name of the person who bought the vehicle at auction	AndN/A	ThenUse tax is due and the vehicle must be reclassified based on the value shown on the bill of sale to the purchaser or the cost shown on line 1 of the Accounting of the Lien Sale and Proceeds section of the REG 168 (PDF), or the Auction Sale and Proceeds section of the REG 168A (PDF). A single transfer fee is due.
If the VehicleWas not sold the day of the lien sale, and the lienholder sold the vehicle at a later date	AndN/A	ThenTwo transfer fees are due. Note A transfer fee is due for each additional transfer.

Note The 10-day redemption period required for vehicles valued over $4,000 applies towards the 20-day calculation for payment of fees (count 20 days from the sale date).

18.030 Definitions

Abatement — Removal, as a public nuisance, of abandoned, wrecked, dismantled, or inoperative vehicles or vehicle parts from public or private property.

DMV — The California Department of Motor Vehicles (DMV).

Lien — A legal claim on a vehicle for unpaid towing, repairs, or storage costs.

Lienholder — As used in this chapter, the lienholder is the person or entity who has interest in the vehicle due to storage and/or towing costs.

Legal Owner — The person or entity with a financial interest in a vehicle and is listed on the titling document in the “Lienholder” section.

Low-Value Vehicle — A vehicle valued at $500 or less.

18.025 Declaration of Opposition on Low-Value Vehicles Removed for Reasons Other Than Abandonment (VC §22851.8 (d))

If the lienholder receives a completed Declaration of Opposition that is postmarked within 10 days of the date the Notice of Intent To Dispose of a Vehicle Valued at $500 or Less Removed by a Public Agency for Reasons Other than Abandonment (REG 684) (PDF) was mailed, the vehicle cannot be disposed of unless:

• The lienholder files an action in court within 20 days of the date the REG 684 was mailed, a judgment is awarded to the lienholder, and it is not paid within five days of becoming final.
• The declarant releases their interest in the vehicle.
• DMV issues a letter of authorization to continue with the lien sale when the declarant could not be served by certified mail or in person by a marshal, sheriff, or licensed process server.
• The lienholder must submit an Application for Authorization to Continue Lien Sale After Unsuccessful Service (REG 659) with one of the following attached.
  • Service attempted by certified mail—an unopened certified letter that contains the court documents with which service was attempted.
  • Service attempted in person by a marshal, sheriff, or licensed process server—the documents proving unsuccessful service.

18.020 Declaration of Opposition

If DMV receives a Notice of Pending Lien Sale for Vehicle Valued $4000 or Less (REG 668) or Notice of Pending Lien Sale for Vessels or Vessel/Trailers Valued at $1500 or Less (Boat 156) (PDF) with the Declaration of Opposition section completed, a notification is sent to the lienholder within 16 days informing them that the lien sale is denied and cannot be conducted unless the:

• Declarant signs the Release of Interest section on the bottom of the denial letter.
• Lienholder files an action in court within 30 days of the date DMV’s notice was mailed and a judgment is awarded to the lienholder that is not paid within five days of becoming final.
• Declarant could not be served pursuant to CCC §§3071(e) or 3072(e), and the lienholder submits an Application for Authorization to Continue Lien Sale After Unsuccessful Service (REG 659) form with the unopened letter that contains the court documents or the documents proving unsuccessful personal service.

When one of the items listed above is received by the Lien Sale Unit at DMV headquarters, DMV will send authorization to continue with the sale to the lienholder and notify the person who opposed the sale of the authorization.

18.015 Cost to Conduct a Lien Sale (CCC §3074 and CH&NC §507.5)

Once a lienholder has requested the names and addresses of all persons having an interest in the vehicle from the DMV, a lien sale preparation fee may be charged.

• The fee may not exceed $70 for vehicles valued at $4,000 or less or $100 for vehicles valued over $4,000 or from a self-service storage facility.
• This fee becomes part of the possessory lien, however, only half of this fee can be charged if the vehicle is redeemed before the lien sale notifications have been mailed.
• This fee cannot be charged if the vehicle is redeemed within 72 hours of its initial storage.

The cost of processing a lien sale cannot exceed:

• $100 for a vessel only.
• $125 for a vessel and trailer.

18.010 Categories of Lien Sales

The four types of lien sales are:

• Vehicles valued at $4,000 or less (California Civil Code (CCC) §3072).
• Vehicles valued over $4,000 or stored at a self-storage facility (CCC §3071).
• Vessels or a vessel/trailer combination valued at $1,500 or less (California Harbors & Navigations Code (CH&NC) §§504 and 507).
• Vessels or a vessel/trailer combination valued over $1,500 (CH&NC §503).