Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 791


Introduced by Assembly Member Hagman

February 21, 2013


An act to amendbegin delete Sectionend deletebegin insert Sectionsend insert 7506.5begin insert, 7507.4, and 7508.2end insert ofbegin insert, and to add Sections 7508.7 and 7508.8 to,end insert the Business and Professions Code, relating to repossessors.

LEGISLATIVE COUNSEL’S DIGEST

AB 791, as amended, Hagman. Collateral recovery: repossessors.

begin delete

Existing

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begin insert(1)end insertbegin insertend insertbegin insertExistingend insert 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. Existing law requires an applicant for a qualification certificate or for an initial registration or a reregistration to submit an application to the bureau and include certain personal information in the application that is confidential and is prohibited from being disclosed to the publicbegin insert, except for the registrant’s full name, the licensee’s name and address, and the registration numberend insert.

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This bill would make a technical, nonsubstantive change to these provisions.

end delete
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This bill would delete those exceptions from the requirement that the information in the application be confidential. The bill would also prohibit a repossession agency from disclosing to the public the residence address, residence telephone number, cellular telephone number, driver’s license number, or location of any licensee, registrant, employee, or independent contractor.

end insert
begin insert

(2) Existing law allows a licensed repossession agency or its registrants to make demand for payment in lieu of repossession.

end insert
begin insert

This bill would prohibit a licensed repossession agency or its registrants from making a demand for payment in lieu of repossession, and would also prohibit a repossession agency from selling collateral recovered under the provisions of the act. The bill would make conforming changes.

end insert
begin insert

The bill would also require that any badge or cap insignia worn by a person affiliated with a repossession agency bear on its face a substantial part of the repossession agency name, the license number issued by the Director of Consumer Affairs to that agency, and notification that the person is from a licensed repossession agency. The bill would allow the director to assess a fine of $25 per violation of these provisions.

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Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 7506.5 of the Business and Professions
2Code
is amended to read:

3

7506.5.  

All information obtained on the application shall be
4confidential pursuant to the Information Practices Act (Chapter 1
5(commencing with Section 1798) of Title 1.8 of Part 4 of Division
63 of the Civil Code)begin delete and shall not be released to the public except
7for the registrant’s full name, the licensee’s name and address, and
8the registration numberend delete
. The application shall be verified and shall
9include the following:

10(a) The full name, residence address, residence telephone
11number, date and place of birth, and driver’s license number of
12the applicant or registrant.

13(b) A statement listing any and all names used by the applicant
14or registrant, other than the name by which he or she is currently
15known. If the applicant or registrant has never used a name other
16than his or her true name, this fact shall be set forth in the
17statement.

18(c) The name and address of the licensee and the date the
19employment or contract commenced.

20(d) The title of the position occupied by the applicant or
21registrant and a description of his or her duties.

P3    1(e) Two recent photographs of the applicant or registrant, of a
2type prescribed by the chief, and two classifiable sets of his or her
3fingerprints, one set of which shall be forwarded to the Federal
4Bureau of Investigation for purposes of a background check.

5(f) The bureau may impose a fee not to exceed three dollars
6($3) for processing classifiable fingerprint cards submitted by
7applicants, excluding those submitted into an electronic fingerprint
8system using electronic fingerprint technology.

9begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 7507.4 of the end insertbegin insertBusiness and Professions Codeend insert
10begin insert is amended to read:end insert

11

7507.4.  

A licensed repossession agency or its registrantsbegin delete mayend delete
12begin insert shall notend insert make demand for payment in lieu of repossessionbegin delete, if the
13demand is made pursuant to an assignment for repossessionend delete
begin insert and
14shall not sell collateral recovered under the provisions of this
15chapterend insert
.

begin delete

16In making demand upon a debtor for a money payment in lieu
17of repossession, the repossessor shall present the demand in
18compliance with the Rosenthal Fair Debt Collection Act (Title
191.6C (commencing with Section 1788) of Part 4 of Division 3 of
20the Civil Code), setting forth in the demand only the amount that
21was specified by the creditor in the repossession referral and the
22fees that are properly chargeable. Itemized receipts shall be
23furnished the debtor at the time payment is received. Payments
24received shall forthwith be transmitted to the creditor, disclosing
25the full amount of money received from the debtor in addition to
26the contract payments.

end delete
27begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 7508.2 of the end insertbegin insertBusiness and Professions Codeend insert
28begin insert is amended to read:end insert

29

7508.2.  

The director may assess administrative fines for any
30of the following prohibited acts:

31(a) Recovering collateral or making any money demand in lieu
32thereof, including, but not limited to, collateral registered under
33the Vehicle Code, that has been sold under a security agreement
34before a signed or telegraphic authorization has been received from
35the legal owner, debtor, lienholder, lessor, or repossession agency
36acting on behalf of the legal owner, debtor, lienholder, or lessor
37of the collateral. A telephonic assignment is acceptable if the legal
38owner, debtor, lienholder, lessor, or repossession agency acting
39on behalf of the legal owner, debtor, lienholder, or lessor is known
40to the licensee and a written authorization from the legal owner,
P4    1 debtor, lienholder, lessor, or repossession agency acting on behalf
2of the legal owner, debtor, lienholder, or lessor is received by the
3licensee within 10 working days or a request by the licensee for a
4written authorization from the legal owner, debtor, lienholder,
5lessor, or repossession agency acting on behalf of the legal owner,
6debtor, lienholder, or lessor is made in writing within 10 working
7days. Referrals of assignments from one licensee to another
8licensee are acceptable. The referral of an assignment shall be
9made under the same terms and conditions as in the original
10assignment. The fine shall be twenty-five dollars ($25) for each
11of the first five violations and one hundred dollars ($100) for each
12violation thereafter, per audit.

13(b) Using collateral or personal effects, which have been
14recovered, for the personal benefit of a licensee, or officer, partner,
15manager, registrant, or employee of a licensee. The fine shall be
16 twenty-five dollars ($25) for the first violation and one hundred
17dollars ($100) for each violation thereafter. This subdivision does
18not apply to personal effects disposed of pursuant to subdivision
19(c) of Section 7507.9. Nothing in this subdivision prohibits the
20using or taking of personal property connected, adjoined, or affixed
21to the collateral through an unbroken sequence if that use or taking
22is reasonably necessary to effectuate the recovery in a safe manner
23or to protect the collateral or personal effects.

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24(c) Selling collateral recovered under the provisions of this
25chapter, except with written authorization from the legal owner or
26mortgagee thereof. The fine shall be one hundred dollars ($100)
27for the first violation and five hundred dollars ($500) for each
28violation thereafter, per audit.

end delete
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29(d) Failing to remit all money due clients within 10 working
30days after finalization of the sale of collateral. The licensee shall
31deposit all money received in the form of cash or negotiable
32instruments made payable to the licensee for money due clients
33from the sale of collateral that has been repossessed in a trust
34account within five working days, and the money shall be
35withdrawn only for remittance to the client and for the payment
36of amounts due the licensee. The fine shall be two hundred fifty
37dollars ($250) for the first violation and one thousand dollars
38($1,000) for each violation thereafter. For purposes of this
39subdivision, “finalization of sale” means the time when the
40documents of title or ownership which permit transfer of title from
P5    1the legal owner to the purchaser are received by the repossession
2agency.

end delete
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3(e) Failing to remit moneys collected in lieu of repossession or
4redemption to a client within 10 working days after receipt of the
5moneys. The fine shall be two hundred fifty dollars ($250) for the
6first violation and one thousand dollars ($1,000) for each violation
7thereafter.

end delete
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8(f) Failing to deliver to a client any negotiable instrument
9received by the licensee made payable to the client within 10
10working days of receipt of the negotiable instrument. No licensee,
11manager, registrant, or employee of a licensee shall accept a
12negotiable instrument made payable to a client unless they have
13authorization from the client to accept the negotiable instrument.
14The fine shall be two hundred fifty dollars ($250) for the first
15violation and one thousand dollars ($1,000) for each violation
16thereafter.

end delete
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17(g)

end delete

18begin insert(c)end insert Unlawfully entering any private building or secured area
19without the consent of the owner, or of the person in legal
20possession thereof, at the time of repossession. The fine shall be
21five hundred dollars ($500) for each violation.

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22(h)

end delete

23begin insert(d)end insert Committing unlawful assault or battery on another person.
24The fine shall be five hundred dollars ($500) for each violation.

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25(i)

end delete

26begin insert(e)end insert Falsification or alteration of an inventory. The fine shall be
27twenty-five dollars ($25) for each violation.

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28(j)

end delete

29begin insert(f)end insert Soliciting from the legal owner the recovery of specific
30collateral registered under the Vehicle Code or under the motor
31vehicle licensing laws of other states after the collateral has been
32seen or located on a public street or on public or private property
33without divulging the location of the vehicle. The fine shall be one
34hundred dollars ($100) for the first violation and two hundred fifty
35dollars ($250) for each violation thereafter.

36begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 7508.7 is added to the end insertbegin insertBusiness and Professions
37Code
end insert
begin insert, to read:end insert

begin insert
38

begin insert7508.7.end insert  

A repossession agency shall not disclose to the public
39the residence address, residence telephone number, cellular
40telephone number, driver’s license number, or location of any
P6    1licensee, registrant, employee, or independent contractor that it
2employs.

end insert
3begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 7508.8 is added to the end insertbegin insertBusiness and Professions
4Code
end insert
begin insert, to read:end insert

begin insert
5

begin insert7508.8.end insert  

(a) Any badge or cap insignia worn by a person as a
6licensee, officer, director, partner, manager, independent
7contractor, or employee of a repossession agency shall bear on
8its face, all of the following:

9(1) A substantial part of the repossession agency name.

10(2) The license number issue by the director to that agency.

11(3) Notification that the person is from a licensed repossession
12agency.

13(b) The director may assess a fine of twenty-five dollars ($25)
14per violation of subdivision (a).

end insert

CORRECTIONS:

Heading--Line 1.




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Corrected 3-21-13—See last page.     98