BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 791
                                                                  Page  1

          Date of Hearing:   May 24, 2013

                                  Mike Gatto, Chair

                     AB 791 (Hagman) - As Amended:  May 13, 2013 

          Policy Committee:                              Business and  
          Professions  Vote:                            12 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              


          This bill prohibits a repossessor from selling repossessed  
          collateral or accepting payment from a debtor in lieu of  
          repossession, forbids a repossession agency from disclosing  
          personal employee information, and authorizes a repossessor to  
          wear certain identification. 

           FISCAL EFFECT  

          Costs associated with this legislation should be minor and  
          absorbable within existing resources.


           1)Rationale  . The intent of this bill is to provide additional  
            protections for both consumers and licensed repossessors by  
            revising the laws governing how repossesors may recover  
            collateral property on behalf of creditors.  Specifically, the  
            bill incudes a prohibition on repossessors accepting payment  
            on behalf of creditors, either by selling the collateral or  
            demanding payment in lieu of repossession. This bill also  
            prohibits licensed repossession agencies from publicly  
            disclosing personal employee information without a court  
            order. Finally, the bill authorizes a repossessor to wear a  
            badge, insignia, or jacket label.  

           2)Background  .  A repossession agency is a business that recovers  
            property sold under a contract or security agreement.   
            Typically the property (called collateral) is a car, boat,  
            motorcycle, or recreational vehicle.  Since 1981, employees of  
            repossession agencies have been required to register with the  


                                                                  AB 791
                                                                  Page  2

            Bureau of Security and Investigative Services.

            In most cases, a person must be registered with the Bureau and  
            have a Bureau identification card to legally recover  
            collateral.  In some cases, a bank, auto dealership, financial  
            lender, or other legal owner will send employees to recover  
            property.  Under California law, in-house employees who are on  
            the regular payroll of the legal owner are not considered  
            repossession employees and do not need to be licensed by the  

           3)Related Legislation  .  AB 1722 (Hagman) of 2010 would have  
            prohibited repossession agencies from publicly disclosing a  
            repossessor's residential address, residential telephone  
            number, cellular phone number, or driver's license number.  AB  
            1722 was never set for hearing in this committee.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)