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 applicant 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. A violation of the act is a crime.
This bill would prohibit, except as otherwise provided by law, a repossession agency from disclosing to the public, without a court order, the residence address, residence telephone number, cellular telephone number, driver’s license number, work schedule, past, present, or future location, or any other personal information of any licensee, registrant, employee, or independent contractor that it employs. By creating a new crime, the bill would impose a state-mandated local program.
(2) Existing law declares that nothing in the act prohibits the using or taking of personal effects that are connected, adjoined, or affixed to the collateral through an unbroken sequence, if that use or taking is reasonably necessary to effectuate the recovery in a safe manner or to protect the collateral or personal effects.
The bill would additionally declare that the act does not prohibit the removal of a locking mechanism or security device on the collateral, before, during, or after a repossession.
(3) Existing law allows a licensed repossession agency or its registrants to make demand for payment in lieu of repossession, if the demand is made pursuant to an assignment for repossession. Existing law permits the director to assess an administrative fine for specified violations of the act.
This bill would prohibit a licensed repossession agency or its registrants from making a demand for payment in lieu of repossession. The bill would also prohibit a repossession agency from selling collateral recovered under the provisions of the
begin delete act andend delete would modify the director’s authority to assess administrative fines for specified violations of the begin delete act.end delete
By creating a new crime, the bill would impose a state-mandated local program. The bill would make conforming changes.
The bill would also allow a person affiliated with a repossession agency to wear an oval, shield, round, square, or
begin delete non-7 pointend delete badge, cap insignia, or jacket patch if it bears on its face all or a substantial part of the repossession agency’s name, the repossession agency license number issued by the Director of Consumer Affairs to that individual or agency, and the word “repossessor.” The bill would require all badges, cap insignias, and jacket patches worn by a repossessor to be a standard design approved by the director and to be clearly visible. The bill would prohibit a repossessor from wearing a badge on his or her belt begin delete or aend delete
hanging badge around his or her neck. The bill would make these provisions inapplicable to a holder of a temporary registration, as specified. The bill would authorize the director to assess a fine of $100 for the first violation, begin delete $100end delete for the second violation, and $250 for each violation thereafter. By creating a new crime, the bill would impose a state-mandated local program.
(4) “Collateral” is defined, for purposes of the act, as any specific vehicle, trailer, boat, recreational vehicle, motor home, appliance, or other property that is subject to a security agreement. Existing law provides, with regard to collateral subject to registration under the Vehicle Code, that a repossession is complete when the repossessor gains entry to the collateral, or when the collateral becomes connected to a tow truck or the repossessor’s tow vehicle.
This bill additionally would declare that repossession is complete when the repossessor moves the entire collateral
begin delete present, the repossessor pushes the collateral,end delete or the repossessor gains control of the collateral.
(5) 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.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 7505.2 of the Business and Professions
2Code is amended to read:
Nothing in this chapter prohibits the using or taking
4of personal effects that are connected, adjoined, or affixed to the
5collateral through an unbroken sequence, if that use or taking is
6reasonably necessary to effectuate the recovery in a safe manner
7or to protect the collateral or personal effects. Nothing in this
8chapter prohibits the removal of a locking mechanism or security
9device on the collateral, before, during, or after a repossession. No
10storage fee shall be charged for the first week on any personal
11effects used to effectuate a recovery pursuant to this section. Any
12personal effects used or taken pursuant to this section shall be
13processed in a reasonably expedient manner pursuant to Sections
147507.9 and 7507.10.
Section 7506.9 of the Business and Professions Code
16 is amended to read:
(a) Upon the issuance of the initial registration,
2reregistration, or renewal, the chief shall issue to the registrant a
3suitable pocket identification card. At the request of the registrant,
4the identification card may include a photograph of the registrant.
5The photograph shall be of a size prescribed by the bureau. The
6card shall contain the name of the licensee with whom the registrant
7is registered. The applicant may request to be issued an enhanced
8pocket card that shall be composed of durable material and may
9incorporate technologically advanced security features. The bureau
10may charge a fee sufficient to reimburse the department for costs
11for furnishing the enhanced pocket card. The fee charged may not
12exceed the actual cost for system development, maintenance, and
13processing necessary to provide the service, and may not exceed
14six dollars ($6). If the applicant does not request an enhanced card,
15the department shall issue a standard card at no cost to the
17(b) Until the registration certificate is issued or denied, a person
18may be assigned to work with a temporary registration on a secure
19form prescribed by the chief, and issued by the qualified certificate
20holder, for a period not to exceed 120 days from the date the
21employment or contract commenced, provided the person signs a
22declaration under penalty of perjury that he or she has not been
23convicted of a felony or committed any other act constituting
24grounds for denial of a registration pursuant to Section 7506.8
25(unless he or she declares that the conviction of a felony or the
26commission of a specified act or acts occurred prior to the issuance
27of a registration by the chief and the conduct was not the cause of
28any subsequent suspension or termination of a registration), and
29that he or she has read and understands the provisions of this
31(c) The chief shall issue an additional temporary registration
32for not less than 60 days nor more than 120 days, if the chief
33determines that the investigation of the applicant will take longer
34to complete than the initial temporary registration time period.
35(d) No person shall perform the duties of a registrant for a
36licensee unless the person has in his or her possession a valid
37repossessor registration card or evidence of a valid temporary
38registration or registration renewal as described in subdivision (b)
39or (e) of this section or subdivision (c) of Section 7506.10. Every
40 person, while engaged in any activity for which licensure is
P5 1required, shall display his or her valid pocket card as provided by
3(e) A person may work as a registrant pending receipt of the
4registration card if he or she has been approved by the bureau and
5carries on his or her person a hardcopy printout or electronic copy
6of the bureau’s approval from the bureau’s Internet Web site and
7a valid picture identification.
Section 7507.4 of the Business and Professions Code
9 is amended to read:
A licensed repossession agency or its registrants shall
11not make demand for payment in lieu of repossession and shall
12not sell collateral recovered under this chapter.
Section 7507.12 of the Business and Professions Code
14 is amended to read:
(a) With regard to collateral subject to registration
16under the Vehicle Code, a repossession is complete if any of the
18(1) The repossessor gains entry to the collateral.
19(2) The collateral becomes connected to a tow truck or the
20repossessor’s tow vehicle, as those terms are defined in Section
21615 of the Vehicle Code.
22(3) The repossessor moves the entire collateral present.
23(4) The repossessor pushes the collateral.end delete
25 The repossessor gains control of the collateral.
26(b) No person other than the legal owner may direct a
27repossessor to release a vehicle without legal authority to do so.
Section 7508.2 of the Business and Professions Code
29 is amended to read:
The director may assess administrative fines for any
31of the following prohibited acts:
32(a) Recovering collateral or making any money demand in lieu
33thereof, including, but not limited to, collateral registered under
34the Vehicle Code, that has been sold under a security agreement
35before a signed or telegraphic authorization has been received from
36the legal owner, debtor, lienholder, lessor, or repossession agency
37acting on behalf of the legal owner, debtor, lienholder, or lessor
38of the collateral. A telephonic assignment is acceptable if the legal
39owner, debtor, lienholder, lessor, or repossession agency acting
40on behalf of the legal owner, debtor, lienholder, or lessor is known
P6 1to the licensee and a written authorization from the legal owner,
2 debtor, lienholder, lessor, or repossession agency acting on behalf
3of the legal owner, debtor, lienholder, or lessor is received by the
4licensee within 10 working days or a request by the licensee for a
5written authorization from the legal owner, debtor, lienholder,
6lessor, or repossession agency acting on behalf of the legal owner,
7debtor, lienholder, or lessor is made in writing within 10 working
8days. Referrals of assignments from one licensee to another
9licensee are acceptable. The referral of an assignment shall be
10made under the same terms and conditions as in the original
11assignment. The fine shall be twenty-five dollars ($25) for each
12of the first five violations and one hundred dollars ($100) for each
13violation thereafter, per audit.
14(b) Using collateral or personal effects, which have been
15recovered, for the personal benefit of a licensee, or officer, partner,
16manager, registrant, or employee of a licensee. The fine shall be
17 twenty-five dollars ($25) for the first violation and one hundred
18dollars ($100) for each violation thereafter. This subdivision does
19not apply to personal effects disposed of pursuant to subdivision
20(c) of Section 7507.9. Nothing in this subdivision prohibits the
21using or taking of personal property connected, adjoined, or affixed
22to the collateral through an unbroken sequence if that use or taking
23is reasonably necessary to effectuate the recovery in a safe manner
24or to protect the collateral or personal effects.
25(c) Selling collateral recovered under this
begin delete chapter.end delete The fine
begin delete one hundred dollars ($100)end delete
28 for the first
begin delete violation, one hundred dollars ($100) for the second for each violation
29violation, and five hundred dollars ($500)end delete
begin delete thereafterend delete.
31(d) Unlawfully entering any private building or secured area
32without the consent of the owner, or of the person in legal
33possession thereof, at the time of repossession. The fine shall be
34five hundred dollars ($500) for each violation.
35(e) Committing unlawful assault or battery on another person.
36The fine shall be five hundred dollars ($500) for each violation.
37(f) Falsification or alteration of an inventory. The fine shall be
38twenty-five dollars ($25) for each violation.
39(g) Soliciting from the legal owner the recovery of specific
40collateral registered under the Vehicle Code or under the motor
P7 1vehicle licensing laws of other states after the collateral has been
2seen or located on a public street or on public or private property
3without divulging the location of the vehicle. The fine shall be one
4hundred dollars ($100) for the first violation and two hundred fifty
5dollars ($250) for each violation thereafter.
Section 7508.7 is added to the Business and Professions
7Code, to read:
Except as otherwise provided by law, a repossession
9agency shall not disclose to the public, without a court order, the
10residence address, residence telephone number, cellular telephone
11number, driver’s license number, work schedule, past, present, or
12future location, or any other personal information of any licensee,
14 employee, or independent contractor that it employs.
Section 7508.8 is added to the Business and Professions
16Code, to read:
(a) Notwithstanding Section 7508.3, an oval, shield,
18round, square, or
begin delete non-seven pointend delete badge, cap
19insignia, or jacket patch may be worn by a licensee, officer,
20director, partner, manager, independent contractor, qualified
21certificate holder, qualified manager, or employee of a repossession
22agency. If a badge, cap insignia, or jacket patch is worn, it shall
23bear on its face all of the following:
24(1) All or a substantial part of the repossession agency’s name.
25(2) The repossession agency license number issued by the
26director to that individual or agency.
27(3) The word “repossessor.”
28(b) A repossessor shall not wear a badge on his or her belt or
begin delete a badge around his or her neck.
30(c) All badges, cap insignias, and jacket patches worn by a
31repossessor shall be a standard design approved by the director
32and shall be clearly visible.
33(d) This section shall not apply to a holder of a
34registration pursuant to Section 7506.9.
35(e) The director may assess a fine of
one hundred dollars ($100)
36for the first violation, one hundred dollars
begin delete ($100)end delete
37 for the second violation, and two hundred
begin delete andend delete fifty dollars
38($250) for each violation
begin delete thereafterend delete.
No reimbursement is required by this act pursuant to
40Section 6 of Article XIII B of the California Constitution because
P8 1the only costs that may be incurred by a local agency or school
2district will be incurred because this act creates a new crime or
3infraction, eliminates a crime or infraction, or changes the penalty
4for a crime or infraction, within the meaning of Section 17556 of
5the Government Code, or changes the definition of a crime within
6the meaning of Section 6 of Article XIII B of the California