Amended in Senate June 23, 2014

Amended in Assembly April 23, 2014

Amended in Assembly April 21, 2014

Amended in Assembly April 1, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2503


Introduced by Assembly Member Hagman

February 21, 2014


An act to amend Sectionsbegin insert 7500.2,end insert 7502.2, 7505.3, 7507.3,begin insert 7507.115,end insert 7508.1,begin insert 7508.4,end insert and 7508.5 ofbegin insert, and to amend and renumber Section 7505.2 of,end insert the Business and Professions Code,begin insert to amend Section 41612 of the Government Code,end insert and to amend Sections 28, 4000, and 9561 of, and to add Section 10856 to, the Vehicle Code, relating to repossessorsbegin insert,end insertbegin insert and declaring the urgency thereof, to take effect immediatelyend insert.

LEGISLATIVE COUNSEL’S DIGEST

AB 2503, as amended, Hagman. Repossessors.

begin insert

(1) Existing law, the Collateral Recovery Act, provides for the licensure and regulation of repossession agencies by the Bureau of Security and Investigative Services. A violation of the act is a crime.

end insert
begin insert

This bill would prohibit a licensed repossession agency from allowing any other person or entity to operate or transact business under the license of the repossession agency. By expanding the scope of a crime, the bill would impose a state-mandated local program.

end insert
begin delete

(1)

end delete

begin insert(2)end insert Under existing law, a financial institution that knowingly engages a nonexempt unlicensed person to repossess collateral on its behalf is guilty of a misdemeanor.

This bill would expand the above crime to apply to a buy-here-pay-here dealer, as defined. By expanding the scope of a crime, the bill would impose a state-mandated local program.

begin delete

(2)

end delete

begin insert(3)end insert Existing law allows a repossession business to continue on a license for 120 days when the qualified certificate holder actively in charge of the office ceases to be in charge because of the death of the licenseholder. Existing law requires a written notice to be made to the Bureau of Security and Investigative Services.

This bill would increase the period to 180 days and would require the written notice to identify the person in charge of running the day-to-day operations of the business.

begin insert

(4) Existing law prohibits a repossessor from appraising the value of any collateral.

end insert
begin insert

The bill would further prohibit the appraisal or determination of the value of any collateral, whether damaged or not. The bill would also prohibit a condition report that assesses the collateral from containing specified items or descriptions. By expanding the scope of a crime, the bill would impose a state-mandated local program.

end insert
begin delete

(3)

end delete

begin insert(5)end insert 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.

begin insert

(6) Existing law authorizes the Director of Consumer Affairs to assess an administrative fine for the failure to present a debtor with an itemized receipt of payment, if payment is made in lieu of repossession.

end insert
begin insert

This bill would delete this provision.

end insert
begin insert

(7) Existing law requires that when possession is taken of a vehicle by or on behalf of a legal owner under the terms of a security or lease agreement, the debtor pay the police or parking authority a specified fee. Existing law prohibits the release of the vehicle to the debtor until the debtor provides proof of payment or pays the fee and an administrative fee to the person in possession or the legal owner. Existing law also provides for a fine if the fee is not transmitted to the police or parking authority. Existing law requires proof of payment to be retained by the party releasing possession to the debtor.

end insert
begin insert

This bill would delete the provisions that allow the release of a vehicle to a debtor who pays the fee and an administrative fee to the person in possession or the legal owner. The bill would make other conforming changes to this provision.

end insert
begin delete

(4)

end delete

begin insert(8)end insert 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.

begin delete

(5)

end delete

begin insert(9)end insertbegin insertExisting law prohibits a person from driving, moving, or leaving standing upon a highway or offstreet public parking facility any motor vehicle or other specified vehicle, unless it is registered and the appropriate fees have been paid. end insertExisting 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 additionallybegin delete provide that a vehicle repossessed pursuant to the terms of a security agreement isend delete exemptbegin insert a licensed repossessorend insert from registration solely for the purpose of obtainingbegin insert aend insert releasebegin delete of the vehicleend deletebegin insert or the collateralend insert from a law enforcementbegin delete entityend deletebegin insert agencyend insert, impounding authority, tow yard, storage facility, or any other person or company that has possession of the vehicle,begin delete provided that the repossessor transports with the vehicle the appropriate documents authorizing the repossession and makes them available to a law enforcement officer on requestend deletebegin insert as specifiedend insert.

begin delete

(6)

end delete

begin insert(10)end insert 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.

begin delete

(7)

end delete

begin insert(11)end insert Existing law establishes offenses for, among other things, willfully tampering or injuring a vehicle or its contents, as specified.

This bill would prohibit a person from interfering with the transport of a vehicle to a storage facility, auction, or dealer bybegin delete a repossessorend deletebegin insert an individual who is employed by a repossession agencyend insert once repossession is complete, as provided. Violation of these provisions would be an infraction pursuant to other provisions of law.

By creating a new crime, this bill would impose a state-mandated local program.

begin delete

(8)

end delete

begin insert(12)end insert 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.

begin insert

(13) This bill would declare that it is to take effect immediately as an urgency statute.

end insert

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P4    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 7500.2 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert is amended to read:end insert

3

7500.2.  

begin insert(a)end insertbegin insertend insert A repossession agency means and includes any
4person who, for any consideration whatsoever, engages in business
5or accepts employment to locate or recover collateral, whether
P5    1voluntarily or involuntarily, including, but not limited to, collateral
2registered under the provisions of the Vehicle Code which is
3subject to a security agreement, except for any person registered
4pursuant to Article 7 (commencing with Section 7506).

begin insert

5(b) A repossession agency licensed pursuant to this chapter
6shall not allow any other person or entity to operate or transact
7business under the license of the repossession agency.

end insert
8

begin deleteSECTION 1.end delete
9begin insertSEC. 2.end insert  

Section 7502.2 of the Business and Professions Code
10 is amended to read:

11

7502.2.  

(a) A financial institution or a buy-here-pay-here
12dealer, as defined by Section 241 of the Vehicle Code, that
13knowingly engages a nonexempt unlicensed person to repossess
14collateral on its behalf is guilty of a misdemeanor, and is punishable
15by a fine of five thousand dollars ($5,000).

16(b) Within existing resources, the Commissioner of Business
17Oversight may designate employees to investigate and report on
18violations of this section by any of the licensees of the department.
19Those employees are authorized to actively cooperate with the
20bureau in the investigation of those activities.

21(c) A proceeding to impose the fine specified in subdivision (a)
22may be brought in any court of competent jurisdiction in the name
23of the people of the State of California by the Attorney General
24or by any district attorney or city attorney, or with the consent of
25the district attorney, by the city prosecutor in any city or city and
26county having a full-time city prosecutor, for the jurisdiction in
27which the violation occurred. If the action is brought by a district
28attorney, the penalty collected shall be paid to the treasurer of the
29county in which the judgment is entered. If the action is brought
30by a city attorney or city prosecutor, one-half of the penalty
31collected shall be paid to the treasurer of the city in which the
32judgment was entered and one-half to the treasurer of the county
33in which the judgment was entered. If the action is brought by the
34Attorney General, all of the penalty collected shall be deposited
35in the Private Security Services Fund.

36begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 7505.2 of the end insertbegin insertBusiness and Professions Codeend insert
37begin insert is amended and renumbered to read:end insert

38

begin delete7505.2.end delete
39begin insert7507.125.end insert  

Nothing in this chapter prohibits the using or taking
40of personal effects that are connected, adjoined, or affixed to the
P6    1collateral through an unbroken sequence, if that use or taking is
2reasonably necessary to effectuate the recovery in a safe manner
3or to protect the collateral or personal effects. Nothing in this
4chapter prohibits the removal of a locking mechanism or security
5device on the collateral, before, during, or after a repossession. No
6storage fee shall be charged for the first week on any personal
7effects used to effectuate a recovery pursuant to this section. Any
8personal effects used or taken pursuant to this section shall be
9processed in a reasonably expedient manner pursuant to Sections
107507.9 and 7507.10.

11

begin deleteSEC. 2.end delete
12begin insertSEC. 4.end insert  

Section 7505.3 of the Business and Professions Code
13 is amended to read:

14

7505.3.  

(a) Whenever a qualified certificate holder actively
15in charge of an office ceases to be in charge, the licensee shall file
16with the bureau notice, in writing, within 30 days from the
17cessation.

18If the notice is filed, the license shall remain in force for a period
19of 90 days after the filing of the notice. At the end of the 90-day
20period or an additional period, not to exceed one year, as specified
21by the director, if written notice is not given that a qualified person
22is then actively in charge of the office, the agency license shall be
23automatically suspended.

24If the licensee shall fail to give written notice at the end of the
2530-day period, the agency license shall be automatically suspended.

26A license suspended under this section may be reinstated upon
27payment of the reinstatement fee and submission of a reinstatement
28application.

29A person who performs any act for which a repossession agency
30license is required during the period of suspension is subject to
31the penal provisions of Article 3 (commencing with Section 7502),
32in addition to the provisions of Article 9 (commencing with Section
337508) and Article 10 (commencing with Section 7510).

34(b) In case of the death of a person licensed as an individual, a
35member of the immediate family of the deceased licensee shall be
36entitled to continue the business under the same license for 180
37days following the death of the licensee, provided that written
38notice is made to the bureau within 30 days following the death
39of the licensee. The notice shall identify the person in charge of
40running the day-to-day operations of the business. At the end of
P7    1the 180-day period, the license shall be automatically canceled. If
2no request is received within the 30-day period, the license shall
3be automatically canceled at the end of that period.

4(c) In the case of the death or disassociation of a partner of an
5entity licensed as a partnership, the licensee shall notify the bureau,
6in writing, within 30 days from the death or disassociation of the
7individual. If notice is given, the license shall remain in force for
890 days following the death or disassociation. At the end of that
9period, the license shall be automatically canceled. If the licensee
10fails to notify the bureau within the 30-day period, the license shall
11be automatically canceled at the end of that period.

12(d) A license extended under this section is subject to all other
13provisions of this chapter.

14

begin deleteSEC. 3.end delete
15begin insertSEC. 5.end insert  

Section 7507.3 of the Business and Professions Code
16 is amended to read:

17

7507.3.  

A repossession agency shall be required to keep and
18maintain adequate records of all transactions, including, but not
19limited to, assignment forms; vehicle report of repossession
20required by Section 28 of the Vehicle Code; vehicle condition
21reports, including odometer readings, if available; personal effects
22inventory; and notice of seizure. Recordsbegin delete, including bank
23statements of the trust account,end delete
shall be retained for a period of
24not less than four years and shall be available for examination by
25the bureau upon demand. In addition, collateral and personal effects
26storage areas shall be made accessible for inspection by the bureau
27upon demand. An assignment form may be an original, a
28photocopy, a facsimile copy, or a copy stored in an electronic
29format.

30begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 7507.115 of the end insertbegin insertBusiness and Professions Codeend insert
31begin insert is amended to read:end insert

32

7507.115.  

begin insert(a)end insertbegin insertend insert A licensee shall not appraisebegin insert or determineend insert the
33value of any collateralbegin insert, whether damaged or notend insert.

begin insert

34(b) (1) Notwithstanding subdivision (a), a licensee may issue
35a condition report that makes a general assessment of the
36collateral.

end insert
begin insert

37(2) Notwithstanding paragraph (1), a condition report shall not
38contain any of the following:

end insert
begin insert

39(A) A description of the wear and tear of specific parts.

end insert
begin insert

40(B) A description of the presence or absence of specific parts.

end insert
begin insert

P8    1(C) The condition of the paint on the collateral.

end insert
begin insert

2(D) The electrical or mechanical condition.

end insert
begin insert

3(E) How the collateral drives or operates.

end insert
begin insert

4(F) The type of key used for the collateral.

end insert
5

begin deleteSEC. 4.end delete
6begin insertSEC. 7.end insert  

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

8

7508.1.  

The director may assess administrative fines for the
9following prohibited acts:

10(a) Knowingly making any false report to his or her employer
11or client for whom information was being obtained. The fine shall
12be one hundred dollars ($100) for the first violation, and five
13hundred dollars ($500) for each violation thereafter.

14(b) Using any identification to indicate registration as a
15repossessor, other than the bureau-issued registration card, except
16an employer identification card issued by the repossession agency
17which has met bureau approval, or a badge, cap insignia, or jacket
18patch as provided in Section 7508.8. A bureau-issued registration
19card shall be carried by those individuals specified by Section
207506.3, and shall be shown on demand to any bureau employee
21or law enforcement officer. The fine shall be twenty-five dollars
22($25) for each violation.

23(c) Using an alias in connection with the official activities of
24the licensee’s business. A notice of warning shall be issued for the
25first violation. Thereafter the fine shall be twenty-five dollars ($25)
26for each violation.

27(d) Appearing as an assignee party in any court proceeding
28involving claim and delivery, replevin, or other possessory court
29action, action to foreclose a chattel mortgage, mechanic’s lien,
30materialman’s lien, or any other lien. This section shall not prohibit
31a licensee from appearing as a defendant in any of the preceding
32actions. The fine shall be one hundred dollars ($100) for each
33violation.

34begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 7508.4 of the end insertbegin insertBusiness and Professions Codeend insert
35begin insert is amended to read:end insert

36

7508.4.  

The director may assess administrative fines for any
37of the following prohibited acts:

38(a) Conducting business from any location other than that
39location to which a license was issued or conducting a business as
40an individual, partnership, limited liability company, or corporation
P9    1unless the licensee holds a valid license issued to that exact same
2individual, partnership, limited liability company, or corporation.
3The fine shall be one thousand dollars ($1,000) for each violation.

4(b) Aiding or abetting an unlicensed repossessor or assigning
5his or her license. “Assigning his or her license” means that no
6licensee shall permit a registrant, employee, or agent in his or her
7own name to advertise, engage clients, furnish reports, or present
8bills to clients, or in any manner whatsoever to conduct business
9for which a license is required under this chapter. The fine shall
10be one thousand dollars ($1,000) for each violation.

11(c) Failing to register registrants within 15 days. The fine shall
12be two hundred fifty dollars ($250) for each of the first two
13violations and one thousand dollars ($1,000) for each violation
14thereafter.

15(d) Employing a person whose registration has expired or been
16revoked, denied, suspended, or canceled, if the bureau has furnished
17a listing of these persons to the licensee. The fine shall be
18twenty-five dollars ($25) for each violation.

19(e) Failing to notify the bureau, within 30 days, of any change
20in officers. A notice of warning shall be issued for the first
21violation. Thereafter, the fine shall be twenty-five dollars ($25)
22for each violation.

begin delete

23(f) Failing to present the debtor with an itemized receipt of
24payment, if payment is made in lieu of repossession. The fine shall
25be twenty-five dollars ($25) for the first violation and one hundred
26dollars ($100) for each violation thereafter.

end delete
begin delete

27(g)

end delete

28begin insert(f)end insert Failing to submit the notices regarding a violent act or
29threatened violent act within seven days pursuant to Section 7507.6
30or to submit a copy of a judgment awarded against the licensee
31for an amount of more than the then prevailing maximum claim
32that may be brought in small claims court within seven days
33pursuant to Section 7507.7. The fine shall be twenty-five dollars
34($25) for the first violation and one hundred dollars ($100) per
35violation thereafter.

begin delete

36(h)

end delete

37begin insert(g)end insert Failing to include the licensee’s name, address, and license
38number in any advertisement. A notice of warning shall be issued
39for the first violation. Thereafter, the fine shall be twenty-five
40dollars ($25) for each violation.

begin delete

P10   1(i)

end delete

2begin insert(h)end insert Failing to maintain personal effects for at least 60 days. The
3fine shall be twenty-five dollars ($25) for the first violation and
4one hundred dollars ($100) for each violation thereafter.

begin delete

5(j)

end delete

6begin insert(i)end insert Failing to provide a personal effects list or a notice of seizure
7within the time limits set forth in Section 7507.9 or 7507.10. The
8fine shall be twenty-five dollars ($25) for the first violation and
9one hundred dollars ($100) for each violation thereafter.

begin delete

10(k)

end delete

11begin insert(j)end insert Failing to file the required report pursuant to Section 28 of
12the Vehicle Code. The fine shall be twenty-five dollars ($25) for
13each of the first five violations and one hundred dollars ($100) for
14each violation thereafter, per audit.

begin delete

15(l)

end delete

16begin insert(k)end insert Failing to maintain an accurate record and accounting of
17secure temporary registration forms. The qualified certificate holder
18shall be fined twenty-five dollars ($25) for the first violation, one
19hundred dollars ($100) for the second violation, two hundred fifty
20 dollars ($250) for the third violation, and two hundred fifty dollars
21($250) plus a one-year suspension of the privilege to issue
22temporary registrations pursuant to Section 7506.9 for the fourth
23and subsequent violations.

begin delete

24(m)

end delete

25begin insert(l)end insert Representing that a licensee has an office and conducts
26business at a specific address when that is not the case. The fine
27shall be five thousand dollars ($5,000) for each violation.

begin delete

28(n)

end delete

29begin insert(m)end insert Notwithstanding any other provision of law, the money in
30the Private Security Services Fund that is attributable to
31administrative fines imposed pursuant to subdivision (c) shall not
32be continuously appropriated and shall be available for expenditure
33only upon appropriation by the Legislature.

34

begin deleteSEC. 5.end delete
35begin insertSEC. 9.end insert  

Section 7508.5 of the Business and Professions Code
36 is amended to read:

37

7508.5.  

The director may assess administrative fines against
38a repossession agency registrant for the following acts, in addition
39to fines imposed pursuant to any other section in this article. The
P11   1fine shall be twenty-five dollars ($25) for each of the following
2violations:

3(a) Knowingly submit a false report.

4(b) Submitting a report to a client without authorization by his
5or her employer.

6(c) Failing to carry a bureau-issued identification card and failing
7to show that card upon demand to a bureau employee or a law
8enforcement officer.

9(d) Failing to register.

10(e) Failing to return his or her registration card to the employer
11upon termination.

12(f) Failing to report a violent act involving the registrant to the
13licensee or the licensee’s qualified certificate holder within 24
14hours.

15begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 41612 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
16to read:end insert

17

41612.  

After possession is taken of any vehicle by or on behalf
18of any legal owner thereof under the terms of a security agreement
19or lease agreement, the debtor shall pay the chief of police or a
20parking authority operated by a city and county a fee of fifteen
21dollars ($15) for the receipt and filing of the report of repossession
22pursuant to Section 28 of the Vehicle Code before the vehicle may
23be redeemed by the debtor.begin delete Except as provided herein, anyend deletebegin insert Anyend insert
24 person in possession of the vehicle shall not release it to the debtor
25without first obtaining proof of payment of the fee to the chief of
26police or parking authority.begin delete At the request of the debtor, a person
27in possession of the vehicle, or the legal owner, may also release
28the vehicle to the debtor provided the debtor pays the fifteen dollar
29($15) fee, plus an administrative fee not to exceed five dollars
30($5), to the person in possession or the legal owner who shall
31transmit the fifteen dollar ($15) fee to the chief of police or parking
32authority within three business days. Failure to transmit the fee
33within three business days shall subject the person in possession
34or the legal owner receiving the fee from the debtor to a fine of
35fifty dollars ($50).end delete
The proof of payment, or a copy thereof, shall
36be retained by the party releasing possession to the debtor for the
37period required bybegin delete law, and the party releasing possession shall
38provide a copy of the proof of payment to the debtor upon request
39of the debtor.end delete
begin insert law. An individual working for a repossession agency
40licensed pursuant to Chapter 11 (commencing withend insert
begin insert Section 7500)
P12   1of Division 3 of the Business and Professions Code may not pay
2the fee to, or retrieve the receipt from, the chief of police or parking
3authority.end insert

4

begin deleteSEC. 6.end delete
5begin insertSEC. 11.end insert  

Section 28 of the Vehicle Code is amended to read:

6

28.  

(a) Whenever possession is taken of any vehicle by or on
7behalf of any legal owner thereof under the terms of a security
8agreement or lease agreement, the person taking possession shall
9attempt to notify, within one hour, and shall notify, within two
10hours, after taking possession of the vehicle, by the most
11expeditious means available, the city police department where the
12taking of possession occurred, if within an incorporated city, or
13the sheriff’s department of the county where the taking of
14possession occurred, if outside an incorporated city, or the police
15department of a campus of the University of California or the
16California State University, if the taking of possession occurred
17on that campus, and shall within one business day forward a written
18notice to the city police or sheriff’s department.

19(b) If possession is taken of more than one vehicle, the
20possession of each vehicle shall be considered and reported as a
21separate event.

22(c) Any person failing to notify the city police department,
23sheriff’s department, or campus police department as required by
24this section is guilty of an infraction, and shall be fined a minimum
25of three hundred dollars ($300), and up to five hundred dollars
26($500). The district attorney, city attorney, or city prosecutor shall
27promptly notify the Bureau of Security and Investigative Services
28of any conviction resulting from a violation of this section.

29(d) For the notification required by this section, the person shall
30reportbegin delete all of the following:end deletebegin insert only the following information and in
31the following order:end insert

32(1) Thebegin insert approximateend insert location of the repossession.

33(2) Thebegin delete registered owner as provided on the assignment.end deletebegin insert date
34and approximate time of the repossession.end insert

begin delete

35(3) The individual, company, or legal owner requesting the
36repossession.

end delete
begin delete

37(4)

end delete

38begin insert(3)end insert The vehicle year, make, and model.

begin delete

39(5)

end delete

40begin insert(4)end insert The last six digits of the vehicle identification number.

begin delete

P13   1(6)

end delete

2begin insert(5)end insert Thebegin delete repossession agency name.end deletebegin insert registered owner as provided
3on the repossession assignment.end insert

begin delete

4(7)

end delete

5begin insert(6)end insert Thebegin delete repossession agency telephone number.end deletebegin insert legal owner
6requesting the repossession as provided on the repossession
7assignment.end insert

begin insert

8(7) The name of the repossession agency.

end insert
begin insert

9(8) The telephone number of the repossession agency.

end insert
10

begin deleteSEC. 7.end delete
11begin insertSEC. 12.end insert  

Section 4000 of the Vehicle Code is amended to read:

12

4000.  

(a) (1) A person shall not drive, move, or leave standing
13upon a highway, or in an offstreet public parking facility, any
14motor vehicle, trailer, semitrailer, pole or pipe dolly, or logging
15dolly, unless it is registered and the appropriate fees have been
16paid under this code or registered under the permanent trailer
17identification program, except that an off-highway motor vehicle
18which displays an identification plate or device issued by the
19department pursuant to Section 38010 may be driven, moved, or
20left standing in an offstreet public parking facility without being
21registered or paying registration fees.

22(2) For purposes of this subdivision, “offstreet public parking
23facility” means either of the following:

24(A) Any publicly owned parking facility.

25(B) Any privately owned parking facility for which no fee for
26the privilege to park is charged and which is held open for the
27common public use of retail customers.

28(3) This subdivision does not apply to any motor vehicle stored
29in a privately owned offstreet parking facility by, or with the
30express permission of, the owner of the privately owned offstreet
31parking facility.

32(4) Beginning July 1, 2011, the enforcement of paragraph (1)
33shall commence on the first day of the second month following
34the month of expiration of the vehicle’s registration. This paragraph
35shall become inoperative on January 1, 2012.

36(b) No person shall drive, move, or leave standing upon a
37highway any motor vehicle, as defined in Chapter 2 (commencing
38with Section 39010) of Part 1 of Division 26 of the Health and
39Safety Code, which has been registered in violation of Part 5
P14   1(commencing with Section 43000) ofbegin delete thatend delete Divisionbegin delete 26.end deletebegin insert 26 of the
2Health and Safety Code.end insert

3(c) Subdivisions (a) and (b) do not apply to off-highway motor
4vehicles operated pursuant to Sections 38025 and 38026.5.

5(d) This section does not apply, following payment of fees due
6for registration, during the time that registration and transfer is
7being withheld by the department pending the investigation of any
8use tax due under the Revenue and Taxation Code.

9(e) Subdivision (a) does not apply to a vehicle that is towed by
10a tow truck on the order of a sheriff, marshal, or other official
11acting pursuant to a court order or on the order of a peace officer
12acting pursuant to this code.

13(f) Subdivision (a) applies to a vehicle that is towed from a
14highway or offstreet parking facility under the direction of a
15highway service organization when that organization is providing
16emergency roadside assistance to that vehicle. However, the
17operator of a tow truck providing that assistance to that vehicle is
18not responsible for the violation of subdivision (a) with respect to
19that vehicle. The owner of an unregistered vehicle that is disabled
20and located on private property, shall obtain a permit from the
21department pursuant to Section 4003 prior to having the vehicle
22towed on the highway.

begin delete

23(g) A vehicle repossessed pursuant to the terms of a security
24agreement is exempt from registration solely for the purpose of
25obtaining release of the vehicle from a law enforcement entity,
26impounding authority, tow yard, storage facility, or any other
27person or company that has possession of the vehicle, provided
28that the repossessor transports with the vehicle the appropriate
29documents authorizing the repossession and makes them available
30to a law enforcement officer on request.

end delete
begin insert

31(g) (1) A licensed repossessor is exempt from this section solely
32for the purpose of obtaining a release from a law enforcement
33agency, impounding authority, tow yard, storage facility, or any
34other person or company that has possession of the collateral.

end insert
begin insert

35(2) A licensed repossessor is exempt from this section solely for
36the purpose of obtaining collateral from a law enforcement agency,
37impounding authority, tow yard, storage facility, or any other
38person or company that has possession of the collateral.

end insert
begin insert

39(3) In order to obtain a release of the collateral from a law
40enforcement agency, impounding authority, tow yard, storage
P15   1facility, or any other person or company pursuant to paragraph
2(1) or (2), a licensed repossessor shall only be required to present
3his or her repossessor license and a copy of the repossessor
4assignment to that entity or person.

end insert

5(h) For purposes of this section, possession of a California
6driver’s license by the registered owner of a vehicle shall give rise
7to a rebuttable presumption that the owner is a resident of
8California.

9

begin deleteSEC. 8.end delete
10begin insertSEC. 13.end insert  

Section 9561 of the Vehicle Code is amended to read:

11

9561.  

(a) When a legal owner, his or her agent, or a repossessor
12who is licensed pursuant to Chapter 11 (commencing with Section
137500) of Division 3 of the Business and Professions Code
14repossesses a vehicle on which renewal fees are due, the department
15shall waive any renewal penalties that are due for late payment if
16the fees are paid within 60 days of taking possession.

17(b) Notwithstanding any other provisions of this code, when a
18repossessed vehicle is sold through a dealer conducting a wholesale
19motor vehicle auction as provided in subdivision (b) of Section
204456 and Article 5 (commencing with Section 6100) of Chapter
212 of Division 3, any penalties that may be due are waived, if all
22renewal fees that are due are paid not later than 60 days after the
23date of sale at the auction.

24

begin deleteSEC. 9.end delete
25begin insertSEC. 14.end insert  

Section 10856 is added to the Vehicle Code, to read:

26

10856.  

begin insert(a)end insertbegin insertend insert A person shall not interfere with the transport of
27a vehicle to a storage facility, auction, or dealer bybegin delete a repossessorend delete
28begin insert an individual who is employed by a repossession agencyend insert who is
29licensed pursuant to Chapter 11 (commencing with Section 7500)
30of Division 3 of the Business and Professions Code once
31repossession is complete as provided in Section 7507.12 of the
32Business and Professions Code.

begin insert

33(b) Any tow yard, impounding agency, or governmental agency,
34or any person acting on behalf of those entities, shall not refuse
35to release a vehicle to anyone that is legally entitled to that vehicle.

end insert
36

begin deleteSEC. 10.end delete
37begin insertSEC. 15.end insert  

No reimbursement is required by this act pursuant to
38Section 6 of Article XIII B of the California Constitution because
39the only costs that may be incurred by a local agency or school
40district will be incurred because this act creates a new crime or
P16   1infraction, eliminates a crime or infraction, or changes the penalty
2for a crime or infraction, within the meaning of Section 17556 of
3the Government Code, or changes the definition of a crime within
4the meaning of Section 6 of Article XIII B of the California
5Constitution.

6begin insert

begin insertSEC. 16.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
7immediate preservation of the public peace, health, or safety within
8the meaning of Article IV of the Constitution and shall go into
9immediate effect. The facts constituting the necessity are:

end insert
begin insert

10In order to preserve public peace by prohibiting a person from
11interfering with the transport of a vehicle to a storage facility,
12auction, or dealer by a repossessor, it is necessary that this act
13take effect immediately.

end insert


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