Committee advances bill to cap third‑party DMV registration fees at 5%; industry warns of adverse effects
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Summary
AB 26 29 would cap what private business partners can charge for online DMV registration services at 5% above DMV fees. Consumer advocates described being charged excessive upcharges; business partners and first‑line vendors said the cap threatens service capacity and small businesses.
Assemblymember Chen introduced AB 26 29 on the committee floor, saying the bill ‘‘prohibits business partners that provide online vehicle registration services from charging excessive fees for the same services offered directly by the DMV’’ by capping upcharges at 5% above DMV fees.
Consumer testimony was prominent. Alan Peterson told the committee he had unknowingly paid a private site an extra $73 (about 33% above DMV fees) and urged passage. Robert Harel, executive director of the Consumer Federation of California (sponsor), explained that some partner sites spoof the DMV or rely on the partner program’s imprimatur, and argued consumers reasonably expect partner pricing to match the DMV; he urged an aye vote.
Industry witnesses opposed the bill unless amended. John Wenger of Samba Safety, a first‑line business partner, argued the 5% cap is ‘‘well below the cost of doing business’’ and could force closures and increased field‑office visits. Brandon Bernd, CEO of carregistration.com, told members his company helps Californians with complex transactions and that the proposed cap would undermine service capacity, risk jobs, and reduce access for customers who rely on assisted services.
Assemblymember Ransom asked how the 5% figure was determined; witnesses and the author said the percentage was negotiated from an earlier 1% proposal to 5% in prior committee work and that further adjustments could occur as negotiations continue. The committee moved AB 26 29 forward to Appropriations with a motion recorded during the hearing.
