BILL NUMBER: SB 237	CHAPTERED
	BILL TEXT

	CHAPTER  151
	FILED WITH SECRETARY OF STATE  AUGUST 1, 2003
	APPROVED BY GOVERNOR  JULY 31, 2003
	PASSED THE ASSEMBLY  JULY 17, 2003
	PASSED THE SENATE  MAY 8, 2003
	AMENDED IN SENATE  APRIL 7, 2003

INTRODUCED BY   Senator Florez

                        FEBRUARY 14, 2003

   An act to amend Sections 4453.5 and 5753 of the Vehicle Code,
relating to vehicles.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 237, Florez.  Vehicles:  transfer of legal ownership.
   (1) Existing law provides that it is unlawful for any person to
fail or neglect to properly endorse, date, and deliver the
certificate of ownership of a vehicle to a transferee who is lawfully
entitled to a transfer of vehicle registration.
   This bill would require a legal owner to mail, transmit, or
deliver the certificate of ownership, within 15 business days after
receipt of payment in full for the satisfaction of a security
interest and specified documents, to a transferee who, due to the
satisfaction of a security interest, is entitled to a transfer of
legal ownership.  If a lease provides a lessee with the option to
purchase the leased vehicle, the bill would require the lessor,
within 15 business days after receiving payment in full for the
purchase and all required documents, to  mail, transmit, or deliver
the certificate to the transferee who, due to purchase of the
vehicle, is lawfully entitled to transfer of legal ownership.  The
bill would require a legal owner or lessor who fails to transfer the
certificate of ownership within that 15-day period to pay $25 per day
to the transferee for each day following the 10-day period that the
mailing, transmittal, or delivery requirements remain unsatisfied,
not to exceed $2,500.  The bill would treble the amount if the legal
owner or lessor fails to pay the required amount within 60 days of
written demand and would entitle the transferee to costs and
reasonable attorney fees incurred in any court action brought to
collect the payment.
   By changing the definition of a crime, this bill would impose a
state-mandated local program.
  (2) 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.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 4453.5 of the Vehicle Code is amended to read:

   4453.5.  (a) In the case of leased vehicles, the lessor and the
lessee shall be shown on the registration card as the owner and the
lessee of a vehicle, and the department shall designate their
relationships upon the card and the ownership certificate by the
words "lessor" and "lessee" and, at the election of the lessor, the
department may designate thereon either the address of the lessor or
the lessee.
   (b) Transfers of ownership involving vehicles registered as
provided in subdivision (a) shall only be effected upon the signature
release of the lessor.
   (c) The lessor shall provide the address, or the name and address,
of the lessee on a form prescribed by the department in all cases
where the information is not on the registration card and ownership
certificate.  Information received under this subdivision shall be
used only for law enforcement and shall be available only to law
enforcement officials at their request.
   (d) A lessor, upon written request of the lessee or, if designated
in writing, the lessee's designee, shall disclose any pertinent
information regarding the amount of payment and the documents
necessary to exercise any option held by the lessee to purchase the
leased vehicle.
  SEC. 2.  Section 5753 of the Vehicle Code is amended to read:
   5753.  (a) It is unlawful for any person to fail or neglect
properly to endorse, date, and deliver the certificate of ownership
and, when having possession, to deliver the registration card to a
transferee who is lawfully entitled to a transfer of registration.
   (b) Except when the certificate of ownership is demanded in
writing by a purchaser, a vehicle dealer licensed under this code
shall satisfy the delivery requirement of this section by submitting
appropriate documents and fees to the department for transfer of
registration in accordance with Sections 5906 and 4456 of this code
and rules and regulations promulgated thereunder.
   (c) (1) Within 15 business days after receiving payment in full
for the satisfaction of a security interest and a written instrument
signed by the grantor of the security interest designating the
transferee and authorizing release of the legal owner's interest, the
legal owner shall release its security interest and mail, transmit,
or deliver the vehicle's certificate of ownership to the transferee
who, due to satisfaction of the security interest, is lawfully
entitled to the transfer of legal ownership.
   (2) If a lease provides a lessee with the option to purchase the
leased vehicle, within 15 business days after receiving payment in
full for the purchase, and all documents necessary to effect the
transfer, the lessor shall mail, transmit, or deliver the vehicle's
certificate of ownership to the transferee, who, due to purchase of
the vehicle, is lawfully entitled to the transfer of legal ownership.

   (d) The certificate of ownership delivered pursuant to subdivision
(c) shall be signed by the legal owner or lessor to reflect release
of the legal owner's interest or transfer of the lessor's interest in
the vehicle or accompanied by a form provided by the department to
accomplish the same result and signed by the legal owner or lessor.
If the legal owner or lessor is not in possession or control of the
certificate of ownership, the legal owner or lessor shall, within the
time provided in subdivision (c) for the mailing, transmittal, or
delivery of the certificate of ownership, take any action required by
the department to release the legal owner's security interest or
transfer the lessor's interest in the vehicle and within that time
shall mail, transmit, or deliver written notice of its taking that
action to the transferee.
   (e) A legal owner or lessor that fails to satisfy the requirements
of subdivisions (c) and (d), shall, without offset or reduction, pay
the transferee twenty-five dollars ($25) per day for each day that
the requirements of subdivisions (c) and (d) remain unsatisfied, not
to exceed a maximum payment of two thousand five hundred dollars
($2,500).  If the legal owner or lessor fails to pay this amount
within 60 days following written demand by the transferee, the amount
shall be trebled, not to exceed a maximum payment of seven thousand
five hundred dollars ($7,500), and the transferee shall be entitled
to costs and reasonable attorneys fees incurred in any court action
brought to collect the payment.  The right to recover these payments
is cumulative with and is not in substitution or derogation of any
remedy otherwise available at law or equity.
   (f) A legal owner, upon written request of the transferee, shall
disclose any pertinent information regarding the amount of payment
and the documents necessary to release the obligation secured by the
legal owner's interest.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution.