The Basis for Building Trust with the
Public and Fair Treatment of All Citizens

Financial Policies for Imposed Fees, Fines, and Asset Forfeitures

(Read the report)

Trust is needed for local government to help communities become better places to live, work, and play over the long term for all citizens.

Imagine you go to DMV to transfer a vehicle and for some reason you don’t complete the transaction, what happens?
In my case a penalty is assessed and as time passes those minor fees grow, but with no notice or mailed bill or demand for payment by DMV. When does a penalty become excess or abuse? What if the fees attached because DMV is not getting its fees are more than the value of a vehicle? Is DMV allowed to bill you even if your vehicle is no longer used on public roads?

Office of the Director
Department of Motor Vehicles
2415 1st Ave., Mail Station F101
Sacramento, CA 95818-2606

General Vehicle Registration Address (for USPS)
Vehicle Registration Operations
Department of Motor Vehicles
PO Box 942869
Sacramento, CA 94269-0001

Customer Service
1-800-777-0133
TTY 1-800-368-4327
Monday – Friday, 8 a.m. – 5 p.m

The Rule on Unfair or Deceptive Fees: Frequently Asked Questions

Imposed Fee and Fine Use by Local Governments
A local government’s revenue system needs to treat people fairly to maintain the public’s trust. GFOA’s Code of Ethics requires that finance officers support equitable provision of services and call out unfair discrimination. But some local governments use and rely on revenue from imposed fees and fines that make socioeconomic and racial inequities worse.

TREATING PEOPLE FAIRLY

Local governments depend on trusting relationships between people. If people feel unfairly treated, relationships break down, and they may withhold their support from my local government. This makes it more difficult for my local government to maintain a strong financial foundation. Therefore, I will treat people fairly and develop processes and procedures that are fair.

How I Treat People Fairly

Respect the rights of others. Public finance offices are in a position of power. When using that power, the rights of other people must be respected. This includes providing equal treatment and opposing discrimination, harassment or other unfair practices
Develop processes and procedures that are fair. When employees and citizens believe that decisions are fact based and take all concerns into consideration, they are more likely to support those decisions – even if a decision is not in favor of their preferred outcome.

RELIABILITY and CONSISTENCY

When others can count on me, I prove my trustworthiness. When I consistently apply my standards – especially to myself – I honor my commitment to the community I serve and make it easier to do the right thing even when faced with challenging circumstances.

How I Show Reliability and Consistency

Develop strong financial policies. Financial policies provide the “rules of the road” and a standard of performance against which my community can judge its finances.
Produce reliable information. People rely on information produced by the finance office to make important decisions for the community. That information should be accurate and free of material misstatements or omissions. It should also be objective and free from personal biases.
Provide timely information. Set clear expectations for when work will be accomplished and live up to those expectations. Timely financial information allows decisions that rely on that information to also be timely.

Are Your Financial Policies Ethical?

Fines and imposed fees should not be used as revenue raising or cost-recovery tools. Using them this way can worsen problems that governments services are meant to solve. For example, unpaid fees can hurt a citizen’s credit score, which makes it harder for that person to find housing, get a job, or apply for credit. In another example, studies have found that local governments can end up spending more on collecting court fees than they raise in revenues, given the cost of jail time for nonpayment.
GFOA has released a new research report that provides tools for local government finance officers to use in evaluating their own existing policies, along with guidance and policy templates for drafting new policies. Trust is a government’s most valuable asset, and finance officers play a big role in safeguarding this by promoting transparency and accountability. Finance officers also need to ensure equity and fairness.

GFOA challenges all GFOA members to better understand the implications of misused fees and imposed fines, including their connection to systemic racism, lack of trust in government, and the potential to seriously harm the lives of disadvantaged citizens.

Who to contact for justice or to report this abuse?

CALIFORNIA REPORT GOV
Report an Issue or Complaint

VIDEOS

https://youtube.com/shorts/xwVMDeF6d6A?si=cZnfkCRMH0A2lg-R

3.080 Waiver of Fees and/or Penalties (VC §9562)

The conditions under which DMV is authorized to waive unpaid registration fees and/or penalties due are very specific.

Transfer Applications

• Penalties may be waived upon payment of the registration fees due when a transferee (including a dealer) applies for transfer and it is determined that the registration penalties accrued prior to the transferee’s date of purchase and the transferee was not aware that the registration fees for the current or prior registration years were unpaid and due (VC §9562(a)).
• Fees and penalties may be waived for any registration year when a transferee (including a dealer) applies for transfer and it is determined that the registration fees became due prior to the transferee’s date of purchase and the transferee was not aware that the fees were unpaid and due if the license plate assigned to the vehicle displays a valid year sticker issued by DMV that matches the year for which the transferee is requesting a waiver of fees and penalties (VC §9562(c)).
  • The license plate assigned to the vehicle must display a valid year sticker issued by DMV that matches the year for which the transferee is requesting a waiver of fees and penalties (VC §9562(c)).
  • A Statement of Facts (REG 256) (PDF) form stating that the transferee was not aware the fees were unpaid and due and indicating the sticker number on the license plate must be submitted with the application.

Other Applications

• Penalties may be waived on an application for registration upon payment of the fees due when the manager or their designee determines that circumstances caused the penalties to accrue through no fault or intent of the owner (VC §9562(b)).
• Fees and penalties may be waived only when the customer (including a dealer) has a current validation sticker on the license plate which matches the year for which fees are believed to have been paid and the registration fees became due
  prior to the customer’s purchase/transfer date.
  • The transfer fee and any other fees due must be paid. If a current validation sticker is not displayed on the license plate, all registration fees due must be paid and only the penalties may be waived.
  • A Statement of Facts (REG 256) (PDF) form stating the sticker number on the license plate and that the applicant/dealer was not aware of any unpaid fees and penalties must be submitted with the application.

Waiver of Penalties on Vehicles Sold at Wholesale Auction (VC §9561.5)

DMV shall waive any penalties due for late payment of registration renewal fees on a vehicle if all of the following criteria are met:

• The vehicle is sold through a dealer conducting a wholesale motor vehicle auction as provided in VC §4456(b).
• Immediately prior to the sale the vehicle was registered as a leased vehicle.
• Delivery of the vehicle to the dealer conducting the wholesale motor vehicle auction is not later than 25 days after the termination of the lease.
• The date of termination of the lease and the date of delivery to the auction is reported on the application for registration or transfer.
  • This may be done on a REG 256 submitted with the application.

Stolen or Embezzled Vehicles (VC §4605; R&TC §10858)

Fees or penalties do not accrue as a result of operation of a stolen/embezzled vehicle.

DMV may waive the renewal fees and penalties as follows:

• When the stolen or embezzled vehicle is subsequently recovered by the owner and the vehicle was not operated between the date the registration expired and the theft/embezzlement date.
  • The current renewal fees become due upon return of the stolen/embezzled vehicle to the owner’s possession and those fees or a PNO must be filed within 20 days of that date.
  • A Miscellaneous Certifications (REG 256A) (PDF) form must be submitted with the application.
• When an application for “title only” of an unrecovered stolen or embezzled new (unregistered) vehicle is presented.
• When an application for a “transfer only” of an unrecovered stolen or embezzled used vehicle is presented.