BILL NUMBER: AB 1877	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 24, 2012
	AMENDED IN ASSEMBLY  APRIL 10, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012
	AMENDED IN ASSEMBLY  MARCH 19, 2012

INTRODUCED BY   Assembly Members Ma and Olsen

                        FEBRUARY 22, 2012

   An act to amend  , repeal, and add  Section 7500.3 of the
Business and Professions Code, relating to repossessors.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1877, as amended, Ma. Repossession agencies: exemptions.
    Existing law, the Collateral Recovery Act, provides for the
licensure and regulation of repossession agencies by the Bureau of
Security and Investigative Services under the supervision and control
of the Director of Consumer Affairs. The act provides that a
repossession agency does not include the legal owner of collateral
that is subject to a security agreement or a bona fide employee of
the legal owner of collateral that is subject to a security
agreement.
   This bill would  , until January 1, 2018,  add that a
repossession agency does not include a dealer regularly engaged in
the sale of specified collateral that is subject to a specified
security agreement, and  its   that dealer's
 bona fide employees.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 7500.3 of the Business and Professions Code is
amended to read:
   7500.3.  A repossession agency shall not include any of the
following:
   (a) Any bank subject to the jurisdiction of the Commissioner of
Financial Institutions of the State of California under Division 1
(commencing with Section 99) of the Financial Code or the Comptroller
of the Currency of the United States.
   (b) Any person organized, chartered, or holding a license or
authorization certificate to make loans pursuant to the laws of this
state or the United States who is subject to supervision by any
official or agency of this state or the United States.
   (c) An attorney at law in performing his or her duties as an
attorney at law.
   (d) The legal owner of collateral that is subject to a security
agreement; a dealer, including its bona fide employees, regularly
engaged in the sale of collateral designed primarily for agricultural
use, as defined in subdivision (b) of Section 51201 of the
Government Code, for use in the care of lawns and gardens, or for use
as special construction equipment, as defined in subdivision (b) of
Section 565 of the Vehicle Code, or for use in the production,
generation, storage, or transmission of mechanical or electric
energy, that is subject to a security agreement of the manufacturer
or an affiliate of that manufacturer; or a bona fide employee
employed exclusively and regularly by the legal owner of collateral
that is subject to a security agreement. With regard to collateral
subject to registration under the Vehicle Code, the legal owner shall
be the legal owner listed on the records of the Department of Motor
Vehicles or the seller or lessor named on a valid conditional sales
contract or rental or lease agreement if the seller or lessor is a
licensed vehicle dealer as defined in Section 285 of the Vehicle
Code.
   (e) An officer or employee of the United States of America, or of
this state or a political subdivision thereof, while the officer or
employee is engaged in the performance of his or her official duties.

   (f) A qualified certificate holder or a registrant when performing
services for, or on behalf of, a licensee. 
   (g) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 2.    Section 7500.3 is added to the  
Business and Professions Code   , to read:  
   7500.3.  A repossession agency shall not include any of the
following:
   (a) Any bank subject to the jurisdiction of the Commissioner of
Financial Institutions of the State of California under Division 1
(commencing with Section 99) of the Financial Code or the Comptroller
of the Currency of the United States.
   (b) Any person organized, chartered, or holding a license or
authorization certificate to make loans pursuant to the laws of this
state or the United States who is subject to supervision by any
official or agency of this state or the United States.
   (c) An attorney at law in performing his or her duties as an
attorney at law.
   (d) The legal owner of collateral that is subject to a security
agreement or a bona fide employee employed exclusively and regularly
by the legal owner of collateral that is subject to a security
agreement. With regard to collateral subject to registration under
the Vehicle Code, the legal owner shall be the legal owner listed on
the records of the Department of Motor Vehicles or the seller or
lessor named on a valid conditional sales contract or rental or lease
agreement if the seller or lessor is a licensed vehicle dealer as
defined in Section 285 of the Vehicle Code.
   (e) An officer or employee of the United States of America, or of
this state or a political subdivision thereof, while the officer or
employee is engaged in the performance of his or her official duties.

   (f) A qualified certificate holder or a registrant when performing
services for, or on behalf of, a licensee.
   (g) This section shall become operative on January 1, 2018.