SB1338 - Vehicles: repossession.

Amended IN Senate May 14, 2026 Amended IN Senate April 23, 2026 Amended IN Senate March 25, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 1338 Introduced by Senator Jones February 20, 2026 An act to amend Section 10856 of the Vehicle Code, relating to vehicles. LEGISLATIVE COUNSEL'S DIGEST SB 1338, as amended, Jones. Vehicles: repossession. Existing law prohibits a person from interfering with the transport of a vehicle to a storage facility, auction, or dealer by an individual who is employed by a repossession agency or is licensed as a repossession agency once repossession is complete, as provided. A violation of these provisions would be an infraction pursuant to other provisions of law. Under existing law, a violation of this provision is an infraction, punishable by specified fines. This bill would instead make the interference with the transport of a vehicle to a storage facility, auction, or dealer, as described above, punishable as an infraction or misdemeanor, as specified. Because the bill would increase the punishment required by the crime, it would impose a state-mandated local program. double the fines, as specified. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 10856 of the Vehicle Code is amended to read: 10856. (a) (1) A person shall not interfere with the transport of a vehicle to a storage facility, auction, or dealer by an individual who is employed by a repossession agency or who is licensed pursuant to Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code once repossession is complete as provided in Section 7507.12 of the Business and Professions Code. (2) A violation of this subdivision shall be punishable either as an infraction, or as a misdemeanor punishable by a fine not exceeding four hundred dollars ($400), imprisonment in a county jail not exceeding 60 days, or both such fine and imprisonment. as follows: (A) By a fine not exceeding two hundred dollars ($200). (B) For a second infraction occurring within one year of a prior infraction that resulted in a conviction, a fine not exceeding four hundred dollars ($400). (C) For a third or subsequent infraction occurring within one year of two or more prior infractions that resulted in convictions, a fine not exceeding five hundred dollars ($500). (3) This subdivision shall not apply to a peace officer while acting in an official capacity. (b) (1) Any tow yard, impounding agency, or governmental agency, or any person acting on behalf of those entities, shall not refuse to release a vehicle or other collateral to anyone that is legally entitled to that vehicle or other collateral. (2) This subdivision shall not apply to a vehicle being held for evidence by law enforcement or a prosecuting attorney. (c) For purposes of this section, “interfere” means to physically impede by obstructing, hindering, or preventing movement, including removing or disabling equipment used for transporting the vehicle. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.