SB 1338: Vehicles: repossession. - California

05/14/26 - Amended Senate → SB1338 · 1 edit

MINOR

No substantive policy changes occurred between these two versions of SB 1338. The differences are entirely presentational: the 'to' version is a web page capture of the bill text (including navigation menus, search boxes, and site links) while the 'from' version is a cleaner document format. The actual statutory language of Section 10856 of the Vehicle Code is identical in both versions.

TECHNICAL

The only differences are formatting and presentation: the newer version includes website navigation elements (skip to content, home, accessibility, FAQ, search fields, bill tracking links) and restructures the layout into a web page format. The legal text of Section 10856, including all penalty tiers ($200/$400/$500 fines, misdemeanor option with up to 60 days jail), the definition of 'interfere,' and the no-reimbursement provision in Section 2, remains unchanged.

04/23/26 - Amended Senate → 05/14/26 - Amended Senate · 2 edits · May 14, 2026

MINOR

SB 1338 was amended to replace a flat misdemeanor penalty for interfering with vehicle transport (repossession) with a tiered system that treats first-time offenses as infractions with escalating fines, while still allowing misdemeanor prosecution. First-time offenders face a fine up to $200, second offenses within a year up to $400, and third or subsequent offenses within a year up to $500. The state-mandated local program designation was also changed from 'yes' to 'no.'

ENFORCEMENT

The penalty for interfering with vehicle transport was changed from a mandatory misdemeanor to a tiered system: first offense is an infraction (fine up to $200), second offense within one year is an infraction (fine up to $400), third or subsequent offense within one year is an infraction (fine up to $500), with the option of misdemeanor prosecution (fine up to $400, jail up to 60 days, or both) still available.

FISCAL

The state-mandated local program designation was changed from 'yes' to 'no,' meaning local agencies would no longer be entitled to state reimbursement for costs associated with implementing this provision.

03/25/26 - Amended Senate → 04/23/26 - Amended Senate · 4 edits · Apr 23, 2026

MODERATE

SB 1338 had its special interest license plate provision (Section 5060) entirely removed, narrowing the bill to focus solely on repossession interference. The penalty for interfering with vehicle transport was changed from a straight misdemeanor to a choice between an infraction or a misdemeanor with specific maximums ($400 fine and/or 60 days jail). A new definition of 'interfere' was added, clarifying it means physically impeding movement including removing or disabling transport equipment.

Scope change

The bill's scope narrowed significantly by removing the special interest license plate provision, leaving only the repossession interference amendment as the sole subject of the bill.

SCOPE

The entire amendment to Vehicle Code Section 5060 (special interest license plates) was removed from the bill. The bill now only amends Section 10856 regarding repossession interference.

ENFORCEMENT

The penalty for interfering with vehicle transport changed from a flat misdemeanor to a dual option: either an infraction or a misdemeanor punishable by a fine not exceeding $400, imprisonment in county jail not exceeding 60 days, or both.

DEFINITION

A new subdivision (c) defines 'interfere' as physically impeding by obstructing, hindering, or preventing movement, including removing or disabling equipment used for transporting the vehicle.

TECHNICAL

Subdivisions were reorganized into numbered paragraphs within each lettered subdivision (e.g., (a)(1), (a)(2), (a)(3)) and the fiscal committee designation changed from 'no' to 'yes' with state-mandated local program changing from 'no' to 'yes'.

02/20/26 - Introduced → 03/25/26 - Amended Senate · 4 edits · Mar 25, 2026

MODERATE

The amended version of SB 1338 adds an entirely new section (amending Vehicle Code Section 10856) that elevates interference with repossession vehicle transport from an infraction to a misdemeanor and prohibits tow yards and impounding agencies from refusing to release vehicles to legally entitled parties. The original technical amendment to the special interest license plate provisions (Section 5060) is retained but is now secondary to the new repossession content. This substantially expands the bill's scope from a nonsubstantive license plate fix to a criminal penalty increase affecting local law enforcement and towing operations.

Scope change

The bill expanded from a narrow technical fix to special interest license plate rules to also impose misdemeanor penalties for interfering with repossession vehicle transport and to mandate that tow yards and impounding agencies release vehicles to legally entitled parties. This triggers state-mandated local program and fiscal committee review requirements.

ENFORCEMENT

New Section 1 amends Vehicle Code Section 10856 to make interference with the transport of a repossessed vehicle to a storage facility, auction, or dealer punishable as a misdemeanor (previously an infraction). An exception is carved out for peace officers acting in an official capacity.

REQUIREMENT

New subdivision (b) of Section 10856 prohibits tow yards, impounding agencies, governmental agencies, and their agents from refusing to release a vehicle or collateral to anyone legally entitled to it. An exception applies to vehicles held as evidence by law enforcement or a prosecuting attorney.

FISCAL

New Section 2 (SEC. 2) provides that no state reimbursement is required under Article XIII B of the California Constitution because the act changes the penalty for a crime, which is exempt from the reimbursement mandate under Government Code Section 17556.

SCOPE

The bill's scope expanded from a single technical amendment to special interest license plates (Section 5060) to also include criminal penalties for repossession interference and vehicle release requirements. The fiscal committee vote changed from 'no' to 'yes' and state-mandated local program changed from 'no' to 'yes' reflecting the new criminal provision.

Vehicles: repossession.

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