BILL NUMBER: AB 783 ENROLLED
BILL TEXT
PASSED THE ASSEMBLY AUGUST 30, 2001
PASSED THE SENATE AUGUST 27, 2001
AMENDED IN SENATE AUGUST 20, 2001
AMENDED IN SENATE JULY 16, 2001
AMENDED IN SENATE JUNE 26, 2001
INTRODUCED BY Assembly Member Kelley
FEBRUARY 22, 2001
An act to amend Section 7507.10 of the Business and Professions
Code, and to amend Sections 14602.6, 14602.7, and 22850.5 of the
Vehicle Code, relating to collateral recovery.
LEGISLATIVE COUNSEL'S DIGEST
AB 783, Kelley. Repossession agencies.
(1) Existing law, the Collateral Recovery Act, requires a licensed
repossession agency to serve a debtor with a notice of seizure as
soon as possible after the recovery of collateral, and requires the
notice to contain certain information. A violation of the act is a
misdemeanor.
This bill would require that the notice also contain a disclosure
of the charges owed to the repossession agency for storage of the
collateral and personal effects from the date of repossession until
release of the property from storage.
(2) Existing law authorizes a peace officer, if he or she
determines that a driver was driving a vehicle with driving
privileges suspended or revoked, or without a license, to cause the
removal and seizure of the vehicle. Existing law authorizes a
magistrate, presented an affidavit of a peace officer establishing
reasonable cause to believe that a vehicle was an instrumentality
used in a peace officer's presence in violation of specified
provisions, to issue a warrant or order authorizing the seizure and
removal of the vehicle. A legal owner or their agent is required to
present specified documents to the impounding agency to secure
release of the vehicle. The impounding agency is authorized to
impose a charge equal to the cost of a hearing or appeal on the legal
owner or their agent if the legal owner or their agent requests a
hearing or appeal relating to the removal, impound, storage, or
release of the vehicle.
This bill would prohibit a city, county, city and county, or state
agency from requiring that a legal owner that is a motor vehicle
dealer, bank, credit union, acceptance corporation, other licensed
financial institution legally operated in this state, or other person
holding a security interest in the vehicle who is not the registered
owner, or the legal owner's agent request a poststorage hearing as
a requirement for release of the vehicle to the legal owner or the
legal owner's agent. The bill would also revise the documents that a
legal owner or agent is required to present to the impounding agency
for release of the vehicle and would prohibit the agency from
requiring documents other than those specified. The bill would
provide that the impounding agency is not liable to the registered
owner for improper release of the vehicle to the legal owner or the
legal owner's agent so long as the release complies with the bill.
(3) Because the bill's provisions would expand the definition of a
crime by expanding the notice requirement, the bill would impose a
state-mandated local program.
(4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(5) This bill would incorporate additional changes in Section
14602.6 of the Vehicle Code proposed by AB 360, to be operative only
if AB 360 and this bill are both enacted and become effective on or
before January 1, 2002, and this bill is enacted last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7507.10 of the Business and Professions Code is
amended to read:
7507.10. Each licensee shall serve a debtor with a notice of
seizure as soon as possible after the recovery of collateral and not
later than 48 hours, except that if the 48-hour period encompasses a
Saturday, Sunday, or postal holiday, the notice of seizure shall be
provided not later than 72 hours or, if the 48-hour period
encompasses a Saturday or Sunday and a postal holiday, the notice of
seizure shall be provided not later than 96 hours, after the
repossession of collateral. The notice shall include all of the
following:
(a) The name, address, and telephone number of the representative
of the legal owner to be contacted regarding the repossession.
(b) The name, address, and telephone number of the representative
of the repossession agency to be contacted regarding the
repossession.
(c) A statement printed on the notice containing the following:
"Repossessors are regulated by the Bureau of Security and
Investigative Services, Department of Consumer Affairs, Sacramento,
CA 95814. Repossessors are required to provide you, not later than
48 hours after the recovery of collateral, with an inventory of
personal effects or other personal property recovered during
repossession unless the 48-hour period encompasses a Saturday,
Sunday, or a postal holiday, then the inventory shall be provided no
later than 96 hours after the recovery of collateral."
(d) A disclosure that "Damage to a vehicle during or subsequent to
a repossession and only while the vehicle is in possession of the
repossession agency and which is caused by the repossession agency is
the liability of the repossession agency. A mechanical or tire
failure shall not be the responsibility of the repossession agency
unless the failure is due to the negligence of the repossession
agency."
(e) If applicable, a disclosure that "Environmental, Olympic,
special interest, or other license plates issued pursuant to Article
8 (commencing with Section 5000), Article 8.4 (commencing with
Section 5060) or Article 8.5 (commencing with Section 5100) of
Chapter 1 of Division 3 of the Vehicle Code that remain the personal
effects of the debtor will be removed from the collateral and
inventoried, and that if the plates are not claimed by the debtor
within 60 days, they will be destroyed."
(f) A disclosure of the charges payable by the debtor to the
repossession agency for the storage of the collateral and personal
effects from the date of repossession until release of the property
from storage.
The notice may be given by regular mail addressed to the last
known address of the debtor or by personal service at the option of
the repossession agency.
SEC. 2. Section 14602.6 of the Vehicle Code is amended to read:
14602.6. (a) Whenever a peace officer determines that a person
was driving a vehicle while his or her driving privilege was
suspended or revoked or without ever having been issued a license,
the peace officer may either immediately arrest that person and cause
the removal and seizure of that vehicle or, if the vehicle is
involved in a traffic collision, cause the removal and seizure of the
vehicle, without the necessity of arresting the person in accordance
with Chapter 10 (commencing with Section 22650) of Division 11. A
vehicle so impounded shall be impounded for 30 days.
The impounding agency, within two working days of impoundment,
shall send a notice by certified mail, return receipt requested, to
the legal owner of the vehicle, at the address obtained from the
department, informing the owner that the vehicle has been impounded.
Failure to notify the legal owner within two working days shall
prohibit the impounding agency from charging for more than 15 days'
impoundment when the legal owner redeems the impounded vehicle.
(b) The registered and legal owner of a vehicle that is removed
and seized under subdivision (a) or their agents shall be provided
the opportunity for a storage hearing to determine the validity of,
or consider any mitigating circumstances attendant to, the storage,
in accordance with Section 22852.
(c) Any period in which a vehicle is subjected to storage under
this section shall be included as part of the period of impoundment
ordered by the court under subdivision (a) of Section 14602.5.
(d) (1) An impounding agency shall release a vehicle to the
registered owner or his or her agent prior to the end of 30 days'
impoundment under any of the following circumstances:
(A) When the vehicle is a stolen vehicle.
(B) When the vehicle is subject to bailment and is driven by an
unlicensed employee of a business establishment, including a parking
service or repair garage.
(C) When the license of the driver was suspended or revoked for an
offense other than those included in Article 2 (commencing with
Section 13200) of Chapter 2 of Division 6 or Article 3 (commencing
with Section 13350) of Chapter 2 of Division 6.
(2) No vehicle shall be released pursuant to this subdivision,
except upon presentation of the registered owner's or agent's
currently valid driver's license to operate the vehicle and proof of
current vehicle registration, or upon order of a court.
(e) The registered owner or his or her agent is responsible for
all towing and storage charges related to the impoundment, and any
administrative charges authorized under Section 22850.5.
(f) A vehicle removed and seized under subdivision (a) shall be
released to the legal owner of the vehicle or the legal owner's agent
prior to the end of 30 days' impoundment if all of the following
conditions are met:
(1) The legal owner is a motor vehicle dealer, bank, credit union,
acceptance corporation, or other licensed financial institution
legally operating in this state or is another person, not the
registered owner, holding a security interest in the vehicle.
(2) The legal owner or the legal owner's agent pays all towing and
storage fees related to the seizure of the vehicle. No lien sale
processing fees shall be charged to the legal owner who redeems the
vehicle prior to the 15th day of impoundment. Neither the impounding
authority nor any person having possession of the vehicle shall
collect from the legal owner of the type specified in paragraph (1),
or the legal owner's agent any administrative charges imposed
pursuant to Section 22850.5 unless the legal owner voluntarily
requested a poststorage hearing.
(3) The legal owner or the legal owner's agent presents either
lawful foreclosure documents or an affidavit of repossession for the
vehicle, and a security agreement or title showing proof of legal
ownership for the vehicle. Any documents presented may be originals,
photocopies, or facsimile copies, or may be transmitted
electronically. The impounding agency may require the agent of the
legal owner to produce a photocopy or facsimile copy of its
repossession agency license or registration issued pursuant to
Chapter 11 (commencing with Section 7500) of Division 3 of the
Business and Professions Code, or to demonstrate, to the satisfaction
of the impounding agency, that the agent is exempt from licensure
pursuant to Section 7500.2 or 7500.3 of the Business and Professions
Code.
No administrative costs authorized under subdivision (a) of
Section 22850.5 shall be charged to the legal owner of the type
specified in paragraph (1), who redeems the vehicle unless the legal
owner voluntarily requests a poststorage hearing. No city, county,
city and county, or state agency shall require a legal owner or a
legal owner's agent to request a poststorage hearing as a requirement
for release of the vehicle to the legal owner or the legal owner's
agent. The impounding agency shall not require any documents other
than those specified in this paragraph.
As used in this paragraph, "foreclosure documents" means an
"assignment" as that term is defined in subdivision (o) of Section
7500.1 of the Business and Professions Code.
(g) (1) A legal owner or the legal owner's agent that obtains
release of the vehicle pursuant to subdivision (f) shall not release
the vehicle to the registered owner of the vehicle or any agents of
the registered owner, unless the registered owner is a rental car
agency, until after the termination of the 30-day impoundment period.
(2) The legal owner or the legal owner's agent shall not
relinquish the vehicle to the registered owner until the registered
owner or that owner's agent presents his or her valid driver's
license or valid temporary driver's license to the legal owner or the
legal owner's agent. The legal owner or the legal owner's agent
shall make every reasonable effort to ensure that the license
presented is valid.
(3) Prior to relinquishing the vehicle, the legal owner may
require the registered owner to pay all towing and storage charges
related to the impoundment and any administrative charges authorized
under Section 22850.5 that were incurred by the legal owner in
connection with obtaining custody of the vehicle.
(h) (1) A vehicle removed and seized under subdivision (a) shall
be released to a rental car agency prior to the end of 30 days'
impoundment if the agency is either the legal owner or registered
owner of the vehicle and the agency pays all towing and storage fees
related to the seizure of the vehicle.
(2) The owner of a rental vehicle that was seized under this
section may continue to rent the vehicle upon recovery of the
vehicle. However, the rental car agency shall not rent another
vehicle to the driver of the vehicle that was seized until 30 days
after the date that the vehicle was seized.
(3) The rental car agency may require the person to whom the
vehicle was rented to pay all towing and storage charges related to
the impoundment and any administrative charges authorized under
Section 22850.5 that were incurred by the rental car agency in
connection with obtaining custody of the vehicle.
(i) Notwithstanding any other provision of this section, the
registered owner and not the legal owner shall remain responsible for
any towing and storage charges related to the impoundment, any
administrative charges authorized under Section 22850.5, and any
parking fines, penalties, and administrative fees incurred by the
registered owner.
(j) The impounding agency shall not be liable to the registered
owner for the improper release of the vehicle to the legal owner or
the legal owner's agent provided the release complies with the
provisions of this section.
SEC. 2.5. Section 14602.6 of the Vehicle Code is amended to read:
14602.6. (a) Whenever a peace officer determines that a person
was driving a vehicle while his or her driving privilege was
suspended or revoked or without ever having been issued a driver's
license, the peace officer may either immediately arrest that person
and cause the removal and seizure of that vehicle or, if the vehicle
is involved in a traffic collision, cause the removal and seizure of
the vehicle, without the necessity of arresting the person in
accordance with Chapter 10 (commencing with Section 22650) of
Division 11. A vehicle so impounded shall be impounded for 30 days.
The impounding agency, within two working days of impoundment,
shall send a notice by certified mail, return receipt requested, to
the legal owner of the vehicle, at the address obtained from the
department, informing the owner that the vehicle has been impounded.
Failure to notify the legal owner within two working days shall
prohibit the impounding agency from charging for more than 15 days'
impoundment when the legal owner redeems the impounded vehicle. The
impounding agency shall maintain a published telephone number that
provides information 24 hours a day regarding the impoundment of
vehicles and the rights of a registered owner to request a hearing.
(b) The registered and legal owner of a vehicle that is removed
and seized under subdivision (a) or their agents shall be provided
the opportunity for a storage hearing to determine the validity of,
or consider any mitigating circumstances attendant to, the storage,
in accordance with Section 22852.
(c) Any period in which a vehicle is subjected to storage under
this section shall be included as part of the period of impoundment
ordered by the court under subdivision (a) of Section 14602.5.
(d) (1) An impounding agency shall release a vehicle to the
registered owner or his or her agent prior to the end of 30 days'
impoundment under any of the following circumstances:
(A) When the vehicle is a stolen vehicle.
(B) When the vehicle is subject to bailment and is driven by an
unlicensed employee of a business establishment, including a parking
service or repair garage.
(C) When the license of the driver was suspended or revoked for an
offense other than those included in Article 2 (commencing with
Section 13200) of Chapter 2 of Division 6 or Article 3 (commencing
with Section 13350) of Chapter 2 of Division 6.
(D) When the vehicle was seized under this section for an offense
that does not authorize the seizure of the vehicle.
(E) When the driver reinstates his or her driver's license or
acquires a driver's license and proper insurance.
(2) No vehicle shall be released pursuant to this subdivision
without presentation of the registered owner's or agent's currently
valid driver's license to operate the vehicle and proof of current
vehicle registration, or upon order of a court.
(e) The registered owner or his or her agent is responsible for
all towing and storage charges related to the impoundment, and any
administrative charges authorized under Section 22850.5.
(f) A vehicle removed and seized under subdivision (a) shall be
released to the legal owner of the vehicle or the legal owner's agent
prior to the end of 30 days' impoundment if all of the following
conditions are met:
(1) The legal owner is a motor vehicle dealer, bank, credit union,
acceptance corporation, or other licensed financial institution
legally operating in this state or is another person, not the
registered owner, holding a security interest in the vehicle.
(2) The legal owner or the legal owner's agent pays all towing and
storage fees related to the seizure of the vehicle. No lien sale
processing fees shall be charged to the legal owner who redeems the
vehicle prior to the 15th day of impoundment. Neither the impounding
authority nor any person having possession of the vehicle shall
collect from the legal owner of the type specified in paragraph (1),
or the legal owner's agent any administrative charges imposed
pursuant to Section 22850.5 unless the legal owner voluntarily
requested a poststorage hearing.
(3) The legal owner or the legal owner's agent presents either
lawful foreclosure documents or an affidavit of repossession for the
vehicle, and a security agreement or title showing proof of legal
ownership for the vehicle. Any documents presented may be originals,
photocopies, or facsimile copies, or may be transmitted
electronically. The impounding agency may require the agent of the
legal owner to produce a photocopy or facsimile copy of its
repossession agency license or registration issued pursuant to
Chapter 11 (commencing with Section 7500) of Division 3 of the
Business and Professions Code, or to demonstrate, to the satisfaction
of the impounding agency, that the agent is exempt from licensure
pursuant to Section 7500.2 or 7500.3 of the Business and Professions
Code.
No administrative costs authorized under subdivision (a) of
Section 22850.5 shall be charged to the legal owner of the type
specified in paragraph (1), who redeems the vehicle unless the legal
owner voluntarily requests a poststorage hearing. No city, county,
city or county, or state agency shall require a legal owner or a
legal owner's agent to request a poststorage hearing as a requirement
for release of the vehicle to the legal owner or the legal owner's
agent. The impounding agency shall not require any documents other
than those specified in this paragraph.
As used in this paragraph, "foreclosure documents" means an
"assignment" as that term is defined in subdivision (o) of Section
7500.1 of the Business and Professions Code.
(g) (1) A legal owner or the legal owner's agent that obtains
release of the vehicle pursuant to subdivision (f) may not release
the vehicle to the registered owner of the vehicle or any agents of
the registered owner, unless the registered owner is a rental car
agency, until after the termination of the 30-day impoundment period.
(2) The legal owner or the legal owner's agent may not relinquish
the vehicle to the registered owner until the registered owner or
that owner's agent presents his or her valid driver's license or
valid temporary driver's license to the legal owner or the legal
owner's agent. The legal owner or the legal owner's agent shall make
every reasonable effort to ensure that the license presented is
valid.
(3) Prior to relinquishing the vehicle, the legal owner may
require the registered owner to pay all towing and storage charges
related to the impoundment and any administrative charges authorized
under Section 22850.5 that were incurred by the legal owner in
connection with obtaining custody of the vehicle.
(h) (1) A vehicle removed and seized under subdivision (a) shall
be released to a rental car agency prior to the end of 30 days'
impoundment if the agency is either the legal owner or registered
owner of the vehicle and the agency pays all towing and storage fees
related to the seizure of the vehicle.
(2) The owner of a rental vehicle that was seized under this
section may continue to rent the vehicle upon recovery of the
vehicle. However, the rental car agency may not rent another
vehicle to the driver of the vehicle that was seized until 30 days
after the date that the vehicle was seized.
(3) The rental car agency may require the person to whom the
vehicle was rented to pay all towing and storage charges related to
the impoundment and any administrative charges authorized under
Section 22850.5 that were incurred by the rental car agency in
connection with obtaining custody of the vehicle.
(i) Notwithstanding any other provision of this section, the
registered owner and not the legal owner shall remain responsible for
any towing and storage charges related to the impoundment, any
administrative charges authorized under Section 22850.5, and any
parking fines, penalties, and administrative fees incurred by the
registered owner.
(j) The impounding agency shall not be liable to the registered
owner for the improper release of the vehicle to the legal owner or
the legal owner's agent provided the release complies with the
provisions of this section.
SEC. 3. Section 14602.7 of the Vehicle Code is amended to read:
14602.7. (a) A magistrate presented with the affidavit of a peace
officer establishing reasonable cause to believe that a vehicle,
described by vehicle type and license number, was an instrumentality
used in the peace officer's presence in violation of Sections 2800.1,
2800.2, 2800.3, or 23103, shall issue a warrant or order authorizing
any peace officer to immediately seize and cause the removal of the
vehicle. The warrant or court order may be entered into a
computerized data base. A vehicle so impounded may be impounded for
a period not to exceed 30 days.
The impounding agency, within two working days of impoundment,
shall send a notice by certified mail, return receipt requested, to
the legal owner of the vehicle, at the address obtained from the
department, informing the owner that the vehicle has been impounded
and providing the owner with a copy of the warrant or court order.
Failure to notify the legal owner within two working days shall
prohibit the impounding agency from charging for more than 15 days
impoundment when a legal owner redeems the impounded vehicle.
(b) (1) An impounding agency shall release a vehicle to the
registered owner or his or her agent prior to the end of the
impoundment period and without the permission of the magistrate
authorizing the vehicle's seizure under any of the following
circumstances:
(A) When the vehicle is a stolen vehicle.
(B) When the vehicle is subject to bailment and is driven by an
unlicensed employee of the business establishment, including a
parking service or repair garage.
(C) When the registered owner of the vehicle causes a peace
officer to reasonably believe, based on the totality of the
circumstances, that the registered owner was not the driver who
violated Section 2800.1, 2800.2, or 2800.3, the agency shall
immediately release the vehicle to the registered owner or his or her
agent.
(2) No vehicle shall be released pursuant to this subdivision,
except upon presentation of the registered owner's or agent's
currently valid driver's license to operate the vehicle and proof of
current vehicle registration, or upon order of the court.
(c) (1) Whenever a vehicle is impounded under this section, the
magistrate ordering the storage shall provide the vehicle's
registered and legal owners of record, or their agents, with the
opportunity for a poststorage hearing to determine the validity of
the storage.
(2) A notice of the storage shall be mailed or personally
delivered to the registered and legal owners within 48 hours after
issuance of the warrant or court order, excluding weekends and
holidays, by the person or agency executing the warrant or court
order, and shall include all of the following information:
(A) The name, address, and telephone number of the agency
providing the notice.
(B) The location of the place of storage and a description of the
vehicle, which shall include, if available, the name or make, the
manufacturer, the license plate number, and the mileage of the
vehicle.
(C) A copy of the warrant or court order and the peace officer's
affidavit, as described in subdivision (a).
(D) A statement that, in order to receive their poststorage
hearing, the owners, or their agents, are required to request the
hearing from the magistrate issuing the warrant or court order in
person, in writing, or by telephone, within 10 days of the date of
the notice.
(3) The poststorage hearing shall be conducted within two court
days after receipt of the request for the hearing.
(4) At the hearing, the magistrate may order the vehicle released
if he or she finds any of the circumstances described in subdivision
(b) or (e) that allow release of a vehicle by the impounding agency.
The magistrate may also consider releasing the vehicle when the
continued impoundment will cause undue hardship to persons dependent
upon the vehicle for employment or to a person with a community
property interest in the vehicle.
(5) Failure of either the registered or legal owner, or his or her
agent, to request, or to attend, a scheduled hearing satisfies the
poststorage hearing requirement.
(6) The agency employing the peace officer who caused the
magistrate to issue the warrant or court order shall be responsible
for the costs incurred for towing and storage if it is determined in
the poststorage hearing that reasonable grounds for the storage are
not established.
(d) The registered owner or his or her agent is responsible for
all towing and storage charges related to the impoundment, and any
administrative charges authorized under Section 22850.5.
(e) A vehicle removed and seized under subdivision (a) shall be
released to the legal owner of the vehicle or the legal owner's agent
prior to the end of the impoundment period and without the
permission of the magistrate authorizing the seizure of the vehicle
if all of the following conditions are met:
(1) The legal owner is a motor vehicle dealer, bank, credit union,
acceptance corporation, or other licensed financial institution
legally operating in this state or is another person, not the
registered owner, holding a financial interest in the vehicle.
(2) The legal owner or the legal owner's agent pays all towing and
storage fees related to the seizure of the vehicle. No lien sale
processing fees shall be charged to the legal owner who redeems the
vehicle prior to the 15th day of impoundment. Neither the impounding
authority nor any person having possession of the vehicle shall
collect from the legal owner of the type specified in paragraph (1),
or the legal owner's agent any administrative charges imposed
pursuant to Section 22850.5 unless the legal owner voluntarily
requested a poststorage hearing.
(3) The legal owner or the legal owner's agent presents either
lawful foreclosure documents or a certificate of repossession and a
security agreement or title showing proof of legal ownership for the
vehicle. Any documents presented may be originals, photocopies, or
facsimile copies, or may be transmitted electronically. The
impounding agency may require the agent of the legal owner to produce
a photocopy or facsimile copy of its repossession agency license or
registration issued pursuant to Chapter 11 (commencing with Section
7500) of Division 3 of the Business and Professions Code, or to
demonstrate, to the satisfaction of the impounding agency, that the
agent is exempt from licensure pursuant to Section 7500.2 or 7500.3
of the Business and Professions Code.
No administrative costs authorized under subdivision (a) of
Section 22850.5 shall be charged to the legal owner of the type
specified in paragraph (1), who redeems the vehicle unless the legal
owner voluntarily requests a poststorage hearing. No city, county,
city and county, or state agency shall require a legal owner or a
legal owner's agent to request a poststorage hearing as a requirement
for release of the vehicle to the legal owner or the legal owner's
agent. The impounding agency shall not require any documents other
than those specified in this paragraph.
As used in this paragraph, "foreclosure documents" means an
"assignment" as that term is defined in subdivision (o) of Section
7500.1 of the Business and Professions Code.
(f) (1) A legal owner or the legal owner's agent that obtains
release of the vehicle pursuant to subdivision (e) shall not release
the vehicle to the registered owner of the vehicle or any agents of
the registered owner, unless a registered owner is a rental car
agency, until the termination of the impoundment period.
(2) The legal owner or the legal owner's agent shall not
relinquish the vehicle to the registered owner until the registered
owner or that owner's agent presents his or her valid driver's
license or valid temporary driver's license to the legal owner or the
legal owner's agent.
The legal owner or the legal owner's agent shall make every
reasonable effort to ensure that the license presented is valid.
(3) Prior to relinquishing the vehicle, the legal owner may
require the registered owner to pay all towing and storage charges
related to the impoundment and the administrative charges authorized
under Section 22850.5 that were incurred by the legal owner in
connection with obtaining the custody of the vehicle.
(g) (1) A vehicle impounded and seized under subdivision (a) shall
be released to a rental car agency prior to the end of the
impoundment period if the agency is either the legal owner or
registered owner of the vehicle and the agency pays all towing and
storage fees related to the seizure of the vehicle.
(2) The owner of a rental vehicle that was seized under this
section may continue to rent the vehicle upon recovery of the
vehicle. However, the rental car agency shall not rent another
vehicle to the driver who used the vehicle that was seized to evade a
police officer until 30 days after the date that the vehicle was
seized.
(3) The rental car agency may require the person to whom the
vehicle was rented and who evaded the peace officer to pay all towing
and storage charges related to the impoundment and any
administrative charges authorized under Section 22850.5 that were
incurred by the rental car agency in connection with obtaining
custody of the vehicle.
(h) Notwithstanding any other provision of this section, the
registered owner and not the legal owner shall remain responsible for
any towing and storage charges related to the impoundment and the
administrative charges authorized under Section 22850.5 and any
parking fines, penalties, and administrative fees incurred by the
registered owner.
(i) (1) This section does not apply to vehicles abated under the
Abandoned Vehicle Abatement Program pursuant to Sections 22660 to
22668, inclusive, and Section 22710, or to vehicles impounded for
investigation pursuant to Section 22655, or to vehicles removed from
private property pursuant to Section 22658.
(2) This section does not apply to abandoned vehicles removed
pursuant to Section 22669 that are determined by the public agency to
have an estimated value of three hundred dollars ($300) or less.
(j) The impounding agency shall not be liable to the registered
owner for the improper release of the vehicle to the legal owner or
the legal owner's agent provided the release complies with the
provisions of this section.
SEC. 4. Section 22850.5 of the Vehicle Code is amended to read:
22850.5. (a) A city, county, or city and county, or a state
agency may adopt a regulation, ordinance, or resolution establishing
procedures for the release of properly impounded vehicles and for the
imposition of a charge equal to its administrative costs relating to
the removal, impound, storage, or release of the vehicles. Those
administrative costs may be waived by the local or state authority
upon verifiable proof that the vehicle was reported stolen at the
time the vehicle was removed.
(b) The following apply to any charges imposed for administrative
costs pursuant to subdivision (a):
(1) The charges shall only be imposed on the registered owner or
the agents of that owner and shall not include any vehicle towed
under an abatement program or sold at a lien sale pursuant to
Sections 3068.1 to 3074, inclusive, of, and Section 22851 of, the
Civil Code unless the sale is sufficient in amount to pay the
lienholder's total charges and proper administrative costs.
(2) Any charges shall be collected by the local or state authority
only from the registered owner or an agent of the registered owner.
(3) The charges shall be in addition to any other charges
authorized or imposed pursuant to this code.
(4) No charge may be imposed for any hearing or appeal relating to
the removal, impound, storage, or release of a vehicle unless that
hearing or appeal was requested in writing by the registered or legal
owner of the vehicle or an agent of that registered or legal owner.
In addition, the charge may be imposed only upon the person
requesting that hearing or appeal.
No administrative costs authorized under subdivision (a) shall be
charged to the legal owner who redeems the vehicle unless the legal
owner voluntarily requests a poststorage hearing. No city, county,
city and county, or state agency shall require a legal owner or a
legal owner's agent to request a poststorage hearing as a requirement
for release of the vehicle to the legal owner or the legal owner's
agent. The impounding agency shall not require the legal owner or
the legal owner's agent to produce any documents other than those
specified in paragraph (3) of subdivision (f) of Section 14602.6 or
paragraph (3) of subdivision (e) of Section 14602.7.
SEC. 5. Section 2.5 of this bill incorporates amendments to
Section 14602.6 of the Vehicle Code proposed by both this bill and AB
360. It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2002, (2) each bill
amends Section 14602.6 of the Vehicle Code, and (3) this bill is
enacted after AB 360, in which case Section 2 of this bill shall not
become operative.
SEC. 6. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.