Amended in Assembly April 29, 2013

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 amend Sections 7506.5, 7507.4, and 7508.2 of, and to add Sections 7508.7 and 7508.8 to, the Business and Professions Code, relating to repossessors.

LEGISLATIVE COUNSEL’S DIGEST

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

(1) 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. Existing law requires an applicantbegin delete for a qualification certificate orend delete 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 public, except for the registrant’s full name, the licensee’s name and address, and the registration number.

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 publicbegin insert, without a court order,end insert the residence address, residence telephone number, cellular telephone number, driver’s license number,begin delete orend deletebegin insert work schedule, past, present, or futureend insert locationbegin insert, or any other personal informationend insert of any licensee, registrant, employee, or independent contractor.

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

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.

The bill would alsobegin delete require that any badge or cap insignia worn by a person affiliated with a repossession agency bearend deletebegin insert allow a person affiliated with a repossession agency to wear a badge, cap insignia, or jacket label if it bearsend insert on its face a substantial part of the repossessionbegin delete agencyend deletebegin insert agency’send insert name, the license number issued by the Director of Consumer Affairs to thatbegin insert individual orend insert agency, andbegin delete notification that the person is from a licensed repossession agencyend deletebegin insert a word referring to the individual as a repossessorend insert. The bill wouldbegin delete allowend deletebegin insert authorizeend insert the director to assess a fine of $25 per violation of these provisions.

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 begin deleteCode).end deletebegin insert Code).end insert The application shall be verified and
7shall include the following:

8(a) The full name, residence address, residence telephone
9number, date and place of birth, and driver’s license number of
10the applicant or registrant.

11(b) A statement listing any and all names used by the applicant
12or registrant, other than the name by which he or she is currently
13known. If the applicant or registrant has never used a name other
14than his or her true name, this fact shall be set forth in the
15statement.

16(c) The name and address of the licensee and the date the
17employment or contract commenced.

18(d) The title of the position occupied by the applicant or
19registrant 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.

9

SEC. 2.  

Section 7507.4 of the Business and Professions Code
10 is amended to read:

11

7507.4.  

A licensed repossession agency or its registrants shall
12not make demand for payment in lieu of repossession and shall
13not sell collateral recovered underbegin delete the provisions ofend delete this chapter.

14

SEC. 3.  

Section 7508.2 of the Business and Professions Code
15 is amended to read:

16

7508.2.  

The director may assess administrative fines for any
17of the following prohibited acts:

18(a) Recovering collateral or making any money demand in lieu
19thereof, including, but not limited to, collateral registered under
20the Vehicle Code, that has been sold under a security agreement
21before a signed or telegraphic authorization has been received from
22the legal owner, debtor, lienholder, lessor, or repossession agency
23acting on behalf of the legal owner, debtor, lienholder, or lessor
24of the collateral. A telephonic assignment is acceptable if the legal
25owner, debtor, lienholder, lessor, or repossession agency acting
26on behalf of the legal owner, debtor, lienholder, or lessor is known
27to the licensee and a written authorization from the legal owner,
28 debtor, lienholder, lessor, or repossession agency acting on behalf
29of the legal owner, debtor, lienholder, or lessor is received by the
30licensee within 10 working days or a request by the licensee for a
31written authorization from the legal owner, debtor, lienholder,
32lessor, or repossession agency acting on behalf of the legal owner,
33debtor, lienholder, or lessor is made in writing within 10 working
34days. Referrals of assignments from one licensee to another
35licensee are acceptable. The referral of an assignment shall be
36made under the same terms and conditions as in the original
37assignment. The fine shall be twenty-five dollars ($25) for each
38of the first five violations and one hundred dollars ($100) for each
39violation thereafter, per audit.

P4    1(b) Using collateral or personal effects, which have been
2recovered, for the personal benefit of a licensee, or officer, partner,
3manager, registrant, or employee of a licensee. The fine shall be
4 twenty-five dollars ($25) for the first violation and one hundred
5dollars ($100) for each violation thereafter. This subdivision does
6not apply to personal effects disposed of pursuant to subdivision
7(c) of Section 7507.9. Nothing in this subdivision prohibits the
8using or taking of personal property connected, adjoined, or affixed
9to the collateral through an unbroken sequence if that use or taking
10is reasonably necessary to effectuate the recovery in a safe manner
11or to protect the collateral or personal effects.

begin insert

12(c) Selling collateral recovered under this chapter. The fine
13shall be one hundred dollars ($100) for the first violation and five
14hundred dollars ($500) for each violation thereafter, per audit.

end insert
begin delete

P5   18 15(c)

end delete

16begin insert(d)end insert Unlawfully entering any private building or secured area
17without the consent of the owner, or of the person in legal
18possession thereof, at the time of repossession. The fine shall be
19five hundred dollars ($500) for each violation.

begin delete

23 20(d)

end delete

21begin insert(e)end insert Committing unlawful assault or battery on another person.
22The fine shall be five hundred dollars ($500) for each violation.

begin delete

26 23(e)

end delete

24begin insert(f)end insert Falsification or alteration of an inventory. The fine shall be
25twenty-five dollars ($25) for each violation.

begin delete

29 26(f)

end delete

27begin insert(g)end insert Soliciting from the legal owner the recovery of specific
28collateral registered under the Vehicle Code or under the motor
29vehicle licensing laws of other states after the collateral has been
30seen or located on a public street or on public or private property
31without divulging the location of the vehicle. The fine shall be one
32hundred dollars ($100) for the first violation and two hundred fifty
33dollars ($250) for each violation thereafter.

34

SEC. 4.  

Section 7508.7 is added to the Business and Professions
35Code
, to read:

36

7508.7.  

A repossession agency shall not disclose to the publicbegin insert,
37without a court order,end insert
the residence address, residence telephone
38number, cellular telephone number, driver’s license number,begin insert work
39schedule, past, present,end insert
orbegin insert end insertbegin insertfutureend insert locationbegin insert, or any other personal
P5    1informationend insert
of any licensee, registrant, employee, or independent
2contractor that it employs.

3

SEC. 5.  

Section 7508.8 is added to the Business and Professions
4Code
, to read:

5

7508.8.  

(a) begin deleteAny end deletebegin insertA end insertbadgebegin delete orend deletebegin insert,end insert cap insigniabegin insert, or jacket label may
6beend insert
worn bybegin delete a person asend delete a licensee, officer, director, partner,
7manager, independent contractor, or employee of a repossession
8begin delete agencyend deletebegin insert agency. If a badge, cap insignia, or jacket label is worn,
9itend insert
shall bear on its facebegin delete,end delete all of the following:

10(1) A substantial part of the repossessionbegin delete agencyend deletebegin insert agency’send insert name.

11(2) The license numberbegin delete issueend deletebegin insert issuedend insert by the director to that
12begin insert individual orend insert agency.

begin delete

13(3) Notification that the person is from a licensed repossession
14agency.

end delete
begin insert

15(3) A word referring to the individual as a repossessor.

end insert

16(b) The director may assess a fine of twenty-five dollars ($25)
17per violation of subdivision (a).



O

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