Vehicle dealers: document processing charge.

Senator Cortese's vehicle dealer legislation modifies California's document processing fee structure, allowing dealers to charge up to 1% of a vehicle's base price or $500, whichever is less, for document preparation and processing services. The measure adjusts existing limits that cap these fees at $85 for dealers partnered with the Department of Motor Vehicles (DMV) and $70 for non-partnered dealers.

The bill maintains current provisions requiring dealers to separate document processing charges from government fees while introducing new calculation methods. Under the proposed framework, the maximum charge would be based on the vehicle's price before adding government fees, accessories, or additional services. The legislation preserves existing rules governing electronic filing charges, which must reflect actual costs charged by service providers for registration and licensing services.

These modifications establish a sliding scale for document processing fees that varies with vehicle price while setting an absolute ceiling. The bill retains DMV oversight of electronic filing charges through regulatory authority, allowing the department to establish maximum amounts that service providers may charge dealers for electronic registration services.