BILL NUMBER: AB 2503 INTRODUCED
BILL TEXT
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:
SECTION 1. Section 7508.1 of the Business and Professions Code is
amended to read:
7508.1. The director may assess administrative fines for the
following prohibited acts:
(a) Knowingly making any false report to his or her employer or
client for whom information was being obtained. The fine shall be one
hundred dollars ($100) for the first violation, and five hundred
dollars ($500) for each violation thereafter.
(b) Using any identification to indicate registration as a
repossessor, other than the bureau-issued registration card, except
an employer identification card issued by the repossession agency
which has met bureau approval , or a badge, cap insignia, or
jacket patch as provided in Section 7508.8 . A
bureau-issued registration card shall be carried by those individuals
specified by Section 7506.3, and shall be shown on demand to any
bureau employee or law enforcement officer. The fine shall be
twenty-five dollars ($25) for each violation.
(c) Using an alias in connection with the official activities of
the licensee's business. A notice of warning shall be issued for the
first violation. Thereafter the fine shall be twenty-five dollars
($25) for each violation.
(d) Appearing as an assignee party in any court proceeding
involving claim and delivery, replevin, or other possessory court
action, action to foreclose a chattel mortgage, mechanic's lien,
materialman's lien, or any other lien. This section shall not
prohibit a licensee from appearing as a defendant in any of the
preceding actions. The fine shall be one hundred dollars ($100) for
each violation.
SEC. 2. Section 28 of the Vehicle Code is amended to read:
28. (a) Whenever possession is taken of any vehicle by or on
behalf of any legal owner thereof under the terms of a security
agreement or lease agreement, the person taking possession shall
attempt to notify, within one hour , and shall notify,
within two hours, after taking possession of the vehicle,
and by the most expeditious means available, the
city police department where the taking of possession occurred, if
within an incorporated city, or the sheriff's department of the
county where the taking of possession occurred, if outside an
incorporated city, or the police department of a campus of the
University of California or the California State University, if the
taking of possession occurred on that campus, and shall within one
business day forward a written notice to the city police or sheriff's
department.
(b) If possession is taken of more than one vehicle, the
possession of each vehicle shall be considered and reported as a
separate event.
(c) Any person failing to notify the city police department,
sheriff's department, or campus police department as required by this
section is guilty of an infraction, and shall be fined a minimum of
three hundred dollars ($300), and up to five hundred dollars ($500).
The district attorney, city attorney, or city prosecutor shall
promptly notify the Bureau of Security and Investigative Services of
any conviction resulting from a violation of this section.
(d) For the notification required by this section, the person
shall report all of the following:
(1) The location of the repossession.
(2) The registered owner as provided on the assignment.
(3) The individual, company, or legal owner requesting the
repossession.
(4) The vehicle year, make, and model.
(5) The last six digits of the vehicle identification number.
(6) The repossession agency name.
(7) The repossession agency telephone number.
SEC. 3. Section 4000 of the Vehicle Code is amended to read:
4000. (a) (1) A person shall not drive, move, or leave standing
upon a highway, or in an offstreet public parking facility, any motor
vehicle, trailer, semitrailer, pole or pipe dolly, or logging dolly,
unless it is registered and the appropriate fees have been paid
under this code or registered under the permanent trailer
identification program, except that an off-highway motor vehicle
which displays an identification plate or device issued by the
department pursuant to Section 38010 may be driven, moved, or left
standing in an offstreet public parking facility without being
registered or paying registration fees.
(2) For purposes of this subdivision, "offstreet public parking
facility" means either of the following:
(A) Any publicly owned parking facility.
(B) Any privately owned parking facility for which no fee for the
privilege to park is charged and which is held open for the common
public use of retail customers.
(3) This subdivision does not apply to any motor vehicle stored in
a privately owned offstreet parking facility by, or with the express
permission of, the owner of the privately owned offstreet parking
facility.
(4) Beginning July 1, 2011, the enforcement of paragraph (1) shall
commence on the first day of the second month following the month of
expiration of the vehicle's registration. This paragraph shall
become inoperative on January 1, 2012.
(b) No person shall drive, move, or leave standing upon a highway
any motor vehicle, as defined in Chapter 2 (commencing with Section
39010) of Part 1 of Division 26 of the Health and Safety Code, which
has been registered in violation of Part 5 (commencing with Section
43000) of that Division 26.
(c) Subdivisions (a) and (b) do not apply to off-highway motor
vehicles operated pursuant to Sections 38025 and 38026.5.
(d) This section does not apply, following payment of fees due for
registration, during the time that registration and transfer is
being withheld by the department pending the investigation of any use
tax due under the Revenue and Taxation Code.
(e) Subdivision (a) does not apply to a vehicle that is towed by a
tow truck on the order of a sheriff, marshal, or other official
acting pursuant to a court order or on the order of a peace officer
acting pursuant to this code.
(f) Subdivision (a) applies to a vehicle that is towed from a
highway or offstreet parking facility under the direction of a
highway service organization when that organization is providing
emergency roadside assistance to that vehicle. However, the operator
of a tow truck providing that assistance to that vehicle is not
responsible for the violation of subdivision (a) with respect to that
vehicle. The owner of an unregistered vehicle that is disabled and
located on private property, shall obtain a permit from the
department pursuant to Section 4003 prior to having the vehicle towed
on the highway.
(g) 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.
(g)
(h) For purposes of this section, possession of a
California driver's license by the registered owner of a vehicle
shall give rise to a rebuttable presumption that the owner is a
resident of California.
SEC. 4. Section 9561 of the Vehicle Code is amended to read:
9561. (a) When a legal owner or ,
his or her agent , or a repossessor who is licensed pursuant to
Chapter 11 (commencing with Section 7500) of Division 3 of the
Business and Professions Code repossesses a vehicle on which
renewal fees are due, the department shall waive any renewal
penalties that are due for late payment if the fees are paid within
60 days of taking possession.
(b) Notwithstanding any other provisions of this code, when a
repossessed vehicle is sold through a dealer conducting a wholesale
motor vehicle auction as provided in subdivision (b) of Section 4456
and Article 5 (commencing with Section 6100) of Chapter 2 of Division
3, any penalties that may be due are waived, if all renewal fees
that are due are paid not later than 60 days after the date of sale
at the auction.
SEC. 5. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.