A defunct abandoned vehicle service has left Laguna Woods with a funding pot it hasn’t been able to utilize.
That means some $43,000 is sitting in a dormant account, unable to be touched.
But a new bill in the California Legislature aims to free up that money, giving Laguna Woods explicit permission to use it for vehicle code enforcement on public streets.
The nearly $43,000, including interest accrued over the years, stems from a former countywide program, Service Authority for Abandoned Vehicles, which collected $1 vehicle registration fees for abandoned vehicle abatement. The program ceased operation in 2012, and Laguna Woods, its city manager said, historically has not had a problem with abandoned vehicles. Laguna Woods Village, a retirement community of more than 12,000 homes, accounts for most of the city.
“For years, the city has been required to carry forward funds that no longer serve their original purpose, creating an ongoing accounting burden with no public benefit,” said City Manager Christopher Macon.
That’s where Senate Bill 897 comes in.
From Sen. Steven Choi, R-Irvine, the bill would allow Laguna Woods to access the fund — including the interest — that have been blocked by state law that dictates it can only be used for the abatement, disposal and removal of abandoned vehicles from private or public property.
“SB 897 gives Laguna Woods the practical authority to redirect these dormant dollars toward enforcing vehicle code violations, helping us keep our streets safe while ensuring responsible stewardship of public funds,” Macon said.
“The idea behind SB 897 is to enable a use for those funds that provides local value,” said Macon. “Since the original intent of the funds was vehicle-related, the city is seeking the ability to use the funds for vehicle-related enforcement.”
Laguna Woods, Macon said, hasn’t had a single abandoned vehicle in the past 17 years, when OC SAAV ceased operating.
That’s a good problem to have, Macon said, but it’s left the city with funding perpetually in limbo.
Choi called the measure — which counts Sen. Tony Strickland, R-Huntington Beach, and Assemblymember Diane Dixon, R-Newport Beach, as coauthors — a “common-sense fix” that will let Laguna Woods “responsibly use funds that have been sitting idle for nearly two decades.”
“Rather than forcing the city to maintain an unusuable account, this bill gives local officials the flexibility to apply these resources toward enforcing vehicle code violations and improving safety on public streets, without raising taxes or fees on residents,” Choi said.
Since July 2014, only interest has been allocated to the SAAV fund, Macon said. Between then and September 2025, the interest on the account has totaled about $10,000.
Still relatively early in the legislative process, SB 897 has been referred to the Senate Transportation Committee, where it awaits a hearing.