California Legislature—2013–14 Regular Session

Assembly BillNo. 2503


Introduced by Assembly Member Hagman

February 21, 2014


An act to amend Section 7508.1 of the Business and Professions Code, and to amend Sections 28, 4000, and 9561 of, the Vehicle Code, relating to repossessors.

LEGISLATIVE COUNSEL’S DIGEST

AB 2503, as introduced, Hagman. Repossessors.

(1) Existing law authorizes the Director of Consumer Affairs to assess administrative fines for various prohibited acts, including using any identification to indicate registration as a repossessor, other than a registration card issued by the Bureau of Security and Investigative Services, except an employer identification card issued by the repossession agency which has bureau approval. Existing law allows an employee of a repossession agency to wear a badge, cap insignia, or jacket patch meeting specified requirements.

This bill would except a badge, cap insignia, or jacket patch from the prohibition on using any identification to indicate registration as a repossessor.

(2) Existing law requires the person taking possession of a vehicle whenever possession is taken by or on behalf of any legal owner under the terms of a security agreement or lease agreement to notify local law enforcement within one hour of the repossession, as specified. Violation of these provisions is a crime.

This bill would require the repossessor to attempt notification within one hour, and to accomplish notification within 2 hours of the repossession, and would specify information that would be required to be provided in the notification.

By expanding the provisions of existing law, the violation of which is a crime, this bill would impose a state-mandated local program.

(3) Existing law provides that a vehicle repossessed pursuant to the terms of a security agreement is exempt from registration solely for the purpose of transporting the vehicle from the point of repossession to the storage facilities of the repossessor, and from the storage facilities to the legal owner or a licensed motor vehicle auction, provided that the repossessor transports with the vehicle the appropriate documents authorizing the repossession and makes them available to a law enforcement officer on request.

This bill would additionally provide that a vehicle repossessed pursuant to the terms of a security agreement is exempt from registration solely for the purpose of obtaining release of the vehicle from a law enforcement entity, impounding authority, tow yard, storage facility, or any other person or company that has possession of the vehicle, provided that the repossessor transports with the vehicle the appropriate documents authorizing the repossession and makes them available to a law enforcement officer on request.

(4) Existing law provides that if the legal owner, or his or her agent, repossesses a vehicle on which registration renewal fees are due, the Department of Motor Vehicles is to waive any renewal penalties that are due for late payment if the fees are paid within 60 days of taking possession.

This bill would apply those provisions to a repossession by a repossessor.

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:

P2    1

SECTION 1.  

Section 7508.1 of the Business and Professions
2Code
is amended to read:

P3    1

7508.1.  

The director may assess administrative fines for the
2following prohibited acts:

3(a) Knowingly making any false report to his or her employer
4or client for whom information was being obtained. The fine shall
5be one hundred dollars ($100) for the first violation, and five
6hundred dollars ($500) for each violation thereafter.

7(b) Using any identification to indicate registration as a
8repossessor, other than the bureau-issued registration card, except
9an employer identification card issued by the repossession agency
10which has met bureau approvalbegin insert, or a badge, cap insignia, or jacket
11patch as provided in Section 7508.8end insert
. A bureau-issued registration
12card shall be carried by those individuals specified by Section
137506.3, and shall be shown on demand to any bureau employee
14or law enforcement officer. The fine shall be twenty-five dollars
15($25) for each violation.

16(c) Using an alias in connection with the official activities of
17the licensee’s business. A notice of warning shall be issued for the
18first violation. Thereafter the fine shall be twenty-five dollars ($25)
19for each violation.

20(d) Appearing as an assignee party in any court proceeding
21involving claim and delivery, replevin, or other possessory court
22action, action to foreclose a chattel mortgage, mechanic’s lien,
23materialman’s lien, or any other lien. This section shall not prohibit
24a licensee from appearing as a defendant in any of the preceding
25actions. The fine shall be one hundred dollars ($100) for each
26violation.

27

SEC. 2.  

Section 28 of the Vehicle Code is amended to read:

28

28.  

(a) Whenever possession is taken of any vehicle by or on
29behalf of any legal owner thereof under the terms of a security
30agreement or lease agreement, the person taking possession shall
31begin insert attempt toend insert notify, within one hourbegin insert, and shall notify, within two
32hours,end insert
after taking possession of the vehicle,begin delete andend delete by the most
33expeditious means available, the city police department where the
34taking of possession occurred, if within an incorporated city, or
35the sheriff’s department of the county where the taking of
36possession occurred, if outside an incorporated city, or the police
37department of a campus of the University of California or the
38California State University, if the taking of possession occurred
39on that campus, and shall within one business day forward a written
40notice to the city police or sheriff’s department.

P4    1(b) If possession is taken of more than one vehicle, the
2possession of each vehicle shall be considered and reported as a
3separate event.

4(c) Any person failing to notify the city police department,
5sheriff’s department, or campus police department as required by
6this section is guilty of an infraction, and shall be fined a minimum
7of three hundred dollars ($300), and up to five hundred dollars
8($500). The district attorney, city attorney, or city prosecutor shall
9promptly notify the Bureau of Security and Investigative Services
10of any conviction resulting from a violation of this section.

begin insert

11(d) For the notification required by this section, the person shall
12report all of the following:

end insert
begin insert

13(1) The location of the repossession.

end insert
begin insert

14(2) The registered owner as provided on the assignment.

end insert
begin insert

15(3) The individual, company, or legal owner requesting the
16repossession.

end insert
begin insert

17(4) The vehicle year, make, and model.

end insert
begin insert

18(5) The last six digits of the vehicle identification number.

end insert
begin insert

19(6) The repossession agency name.

end insert
begin insert

20(7) The repossession agency telephone number.

end insert
21

SEC. 3.  

Section 4000 of the Vehicle Code is amended to read:

22

4000.  

(a) (1) A person shall not drive, move, or leave standing
23upon a highway, or in an offstreet public parking facility, any
24motor vehicle, trailer, semitrailer, pole or pipe dolly, or logging
25dolly, unless it is registered and the appropriate fees have been
26paid under this code or registered under the permanent trailer
27identification program, except that an off-highway motor vehicle
28which displays an identification plate or device issued by the
29department pursuant to Section 38010 may be driven, moved, or
30left standing in an offstreet public parking facility without being
31registered or paying registration fees.

32(2) For purposes of this subdivision, “offstreet public parking
33facility” means either of the following:

34(A) Any publicly owned parking facility.

35(B) Any privately owned parking facility for which no fee for
36the privilege to park is charged and which is held open for the
37common public use of retail customers.

38(3) This subdivision does not apply to any motor vehicle stored
39in a privately owned offstreet parking facility by, or with the
P5    1express permission of, the owner of the privately owned offstreet
2parking facility.

3(4) Beginning July 1, 2011, the enforcement of paragraph (1)
4shall commence on the first day of the second month following
5the month of expiration of the vehicle’s registration. This paragraph
6shall become inoperative on January 1, 2012.

7(b) No person shall drive, move, or leave standing upon a
8highway any motor vehicle, as defined in Chapter 2 (commencing
9with Section 39010) of Part 1 of Division 26 of the Health and
10Safety Code, which has been registered in violation of Part 5
11(commencing with Section 43000) of that Division 26.

12(c) Subdivisions (a) and (b) do not apply to off-highway motor
13vehicles operated pursuant to Sections 38025 and 38026.5.

14(d) This section does not apply, following payment of fees due
15for registration, during the time that registration and transfer is
16being withheld by the department pending the investigation of any
17use tax due under the Revenue and Taxation Code.

18(e) Subdivision (a) does not apply to a vehicle that is towed by
19a tow truck on the order of a sheriff, marshal, or other official
20acting pursuant to a court order or on the order of a peace officer
21 acting pursuant to this code.

22(f) Subdivision (a) applies to a vehicle that is towed from a
23highway or offstreet parking facility under the direction of a
24highway service organization when that organization is providing
25emergency roadside assistance to that vehicle. However, the
26operator of a tow truck providing that assistance to that vehicle is
27not responsible for the violation of subdivision (a) with respect to
28that vehicle. The owner of an unregistered vehicle that is disabled
29and located on private property, shall obtain a permit from the
30department pursuant to Section 4003 prior to having the vehicle
31towed on the highway.

begin insert

32(g) A vehicle repossessed pursuant to the terms of a security
33agreement is exempt from registration solely for the purpose of
34obtaining release of the vehicle from a law enforcement entity,
35impounding authority, tow yard, storage facility, or any other
36person or company that has possession of the vehicle, provided
37that the repossessor transports with the vehicle the appropriate
38documents authorizing the repossession and makes them available
39to a law enforcement officer on request.

end insert
begin delete

40(g)

end delete

P6    1begin insert(h)end insert For purposes of this section, possession of a California
2driver’s license by the registered owner of a vehicle shall give rise
3to a rebuttable presumption that the owner is a resident of
4California.

5

SEC. 4.  

Section 9561 of the Vehicle Code is amended to read:

6

9561.  

(a) When a legal ownerbegin delete orend deletebegin insert,end insert his or her agentbegin insert, or a
7repossessor who is licensed pursuant to Chapter 11 (commencing
8with Section 7500) of Division 3 of the Business and Professions
9Codeend insert
repossesses a vehicle on which renewal fees are due, the
10department shall waive any renewal penalties that are due for late
11payment if the fees are paid within 60 days of taking possession.

12(b) Notwithstanding any other provisions of this code, when a
13 repossessed vehicle is sold through a dealer conducting a wholesale
14motor vehicle auction as provided in subdivision (b) of Section
154456 and Article 5 (commencing with Section 6100) of Chapter
162 of Division 3, any penalties that may be due are waived, if all
17renewal fees that are due are paid not later than 60 days after the
18date of sale at the auction.

19

SEC. 5.  

No reimbursement is required by this act pursuant to
20Section 6 of Article XIII B of the California Constitution because
21the only costs that may be incurred by a local agency or school
22district will be incurred because this act creates a new crime or
23infraction, eliminates a crime or infraction, or changes the penalty
24for a crime or infraction, within the meaning of Section 17556 of
25the Government Code, or changes the definition of a crime within
26the meaning of Section 6 of Article XIII B of the California
27Constitution.



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