BILL NUMBER: AB 2503 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 23, 2014
AMENDED IN ASSEMBLY APRIL 23, 2014
AMENDED IN ASSEMBLY APRIL 21, 2014
AMENDED IN ASSEMBLY APRIL 1, 2014
INTRODUCED BY Assembly Member Hagman
FEBRUARY 21, 2014
An act to amend Sections 7500.2, 7502.2, 7505.3,
7507.3, 7507.115, 7508.1, 7508.4, and 7508.5 of
, and to amend and renumber Section 7505.2 of, the
Business and Professions Code, to amend Section 41612 of the
Government Code, and to amend Sections 28, 4000, and 9561 of,
and to add Section 10856 to, the Vehicle Code, relating to
repossessors , and declaring the urgency thereof, to
take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
AB 2503, as amended, Hagman. 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. A violation of the act is a
crime.
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.
(1)
(2) 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.
(2)
(3) 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.
(4) Existing law prohibits a repossessor from appraising the value
of any collateral.
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.
(3)
(5) 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.
(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.
This bill would delete this provision.
(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.
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.
(4)
(8) 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.
(5)
(9) Existing 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.
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 a licensed repossessor from registration
solely for the purpose of obtaining a release of
the vehicle or the collateral from a law
enforcement entity agency , 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 as specified .
(6)
(10) 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.
(7)
(11) 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 by
a repossessor an individual who is employed
by a repossession agency 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.
(8)
(12) 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.
(13) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7500.2 of the
Business and Professions Code is amended to read:
7500.2. (a) A repossession agency means and
includes any person who, for any consideration whatsoever, engages
in business or accepts employment to locate or recover collateral,
whether voluntarily or involuntarily, including, but not limited to,
collateral registered under the provisions of the Vehicle Code which
is subject to a security agreement, except for any person registered
pursuant to Article 7 (commencing with Section 7506).
(b) A repossession agency licensed pursuant to this chapter shall
not allow any other person or entity to operate or transact business
under the license of the repossession agency.
SECTION 1. SEC. 2. Section 7502.2 of
the Business and Professions Code is amended to read:
7502.2. (a) A financial institution or a buy-here-pay-here
dealer, as defined by Section 241 of the Vehicle Code, that knowingly
engages a nonexempt unlicensed person to repossess collateral on its
behalf is guilty of a misdemeanor, and is punishable by a fine of
five thousand dollars ($5,000).
(b) Within existing resources, the Commissioner of Business
Oversight may designate employees to investigate and report on
violations of this section by any of the licensees of the department.
Those employees are authorized to actively cooperate with the bureau
in the investigation of those activities.
(c) A proceeding to impose the fine specified in subdivision (a)
may be brought in any court of competent jurisdiction in the name of
the people of the State of California by the Attorney General or by
any district attorney or city attorney, or with the consent of the
district attorney, by the city prosecutor in any city or city and
county having a full-time city prosecutor, for the jurisdiction in
which the violation occurred. If the action is brought by a district
attorney, the penalty collected shall be paid to the treasurer of the
county in which the judgment is entered. If the action is brought by
a city attorney or city prosecutor, one-half of the penalty
collected shall be paid to the treasurer of the city in which the
judgment was entered and one-half to the treasurer of the county in
which the judgment was entered. If the action is brought by the
Attorney General, all of the penalty collected shall be deposited in
the Private Security Services Fund.
SEC. 3. Section 7505.2 of the Business
and Professions Code is amended and renumbered to read:
7505.2. 7507.125. Nothing in this
chapter 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. Nothing in this chapter prohibits the removal
of a locking mechanism or security device on the collateral, before,
during, or after a repossession. No storage fee shall be charged for
the first week on any personal effects used to effectuate a recovery
pursuant to this section. Any personal effects used or taken pursuant
to this section shall be processed in a reasonably expedient manner
pursuant to Sections 7507.9 and 7507.10.
SEC. 2. SEC. 4. Section 7505.3 of
the Business and Professions Code is amended to read:
7505.3. (a) Whenever a qualified certificate holder actively in
charge of an office ceases to be in charge, the licensee shall file
with the bureau notice, in writing, within 30 days from the
cessation.
If the notice is filed, the license shall remain in force for a
period of 90 days after the filing of the notice. At the end of the
90-day period or an additional period, not to exceed one year, as
specified by the director, if written notice is not given that a
qualified person is then actively in charge of the office, the agency
license shall be automatically suspended.
If the licensee shall fail to give written notice at the end of
the 30-day period, the agency license shall be automatically
suspended.
A license suspended under this section may be reinstated upon
payment of the reinstatement fee and submission of a reinstatement
application.
A person who performs any act for which a repossession agency
license is required during the period of suspension is subject to the
penal provisions of Article 3 (commencing with Section 7502), in
addition to the provisions of Article 9 (commencing with Section
7508) and Article 10 (commencing with Section 7510).
(b) In case of the death of a person licensed as an individual, a
member of the immediate family of the deceased licensee shall be
entitled to continue the business under the same license for 180 days
following the death of the licensee, provided that written notice is
made to the bureau within 30 days following the death of the
licensee. The notice shall identify the person in charge of running
the day-to-day operations of the business. At the end of the 180-day
period, the license shall be automatically canceled. If no request is
received within the 30-day period, the license shall be
automatically canceled at the end of that period.
(c) In the case of the death or disassociation of a partner of an
entity licensed as a partnership, the licensee shall notify the
bureau, in writing, within 30 days from the death or disassociation
of the individual. If notice is given, the license shall remain in
force for 90 days following the death or disassociation. At the end
of that period, the license shall be automatically canceled. If the
licensee fails to notify the bureau within the 30-day period, the
license shall be automatically canceled at the end of that period.
(d) A license extended under this section is subject to all other
provisions of this chapter.
SEC. 3. SEC. 5. Section 7507.3 of
the Business and Professions Code is amended to read:
7507.3. A repossession agency shall be required to keep and
maintain adequate records of all transactions, including, but not
limited to, assignment forms; vehicle report of repossession required
by Section 28 of the Vehicle Code; vehicle condition reports,
including odometer readings, if available; personal effects
inventory; and notice of seizure. Records , including bank
statements of the trust account, shall be retained for a
period of not less than four years and shall be available for
examination by the bureau upon demand. In addition, collateral and
personal effects storage areas shall be made accessible for
inspection by the bureau upon demand. An assignment form may be an
original, a photocopy, a facsimile copy, or a copy stored in an
electronic format.
SEC. 6. Section 7507.115 of the
Business and Professions Code is amended to read:
7507.115. (a) A licensee shall not appraise
or determine the value of any collateral , whether
damaged or not .
(b) (1) Notwithstanding subdivision (a), a licensee may issue a
condition report that makes a general assessment of the collateral.
(2) Notwithstanding paragraph (1), a condition report shall not
contain any of the following:
(A) A description of the wear and tear of specific parts.
(B) A description of the presence or absence of specific parts.
(C) The condition of the paint on the collateral.
(D) The electrical or mechanical condition.
(E) How the collateral drives or operates.
(F) The type of key used for the collateral.
SEC. 4. SEC. 7. 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. 8. Section 7508.4 of the Business
and Professions Code is amended to read:
7508.4. The director may assess administrative fines for any of
the following prohibited acts:
(a) Conducting business from any location other than that location
to which a license was issued or conducting a business as an
individual, partnership, limited liability company, or corporation
unless the licensee holds a valid license issued to that exact same
individual, partnership, limited liability company, or corporation.
The fine shall be one thousand dollars ($1,000) for each violation.
(b) Aiding or abetting an unlicensed repossessor or assigning his
or her license. "Assigning his or her license" means that no licensee
shall permit a registrant, employee, or agent in his or her own name
to advertise, engage clients, furnish reports, or present bills to
clients, or in any manner whatsoever to conduct business for which a
license is required under this chapter. The fine shall be one
thousand dollars ($1,000) for each violation.
(c) Failing to register registrants within 15 days. The fine shall
be two hundred fifty dollars ($250) for each of the first two
violations and one thousand dollars ($1,000) for each violation
thereafter.
(d) Employing a person whose registration has expired or been
revoked, denied, suspended, or canceled, if the bureau has furnished
a listing of these persons to the licensee. The fine shall be
twenty-five dollars ($25) for each violation.
(e) Failing to notify the bureau, within 30 days, of any change in
officers. A notice of warning shall be issued for the first
violation. Thereafter, the fine shall be twenty-five dollars ($25)
for each violation.
(f) Failing to present the debtor with an itemized receipt of
payment, if payment is made in lieu of repossession. The fine shall
be twenty-five dollars ($25) for the first violation and one hundred
dollars ($100) for each violation thereafter.
(g)
(f) Failing to submit the notices regarding a violent
act or threatened violent act within seven days pursuant to Section
7507.6 or to submit a copy of a judgment awarded against the licensee
for an amount of more than the then prevailing maximum claim that
may be brought in small claims court within seven days pursuant to
Section 7507.7. The fine shall be twenty-five dollars ($25) for the
first violation and one hundred dollars ($100) per violation
thereafter.
(h)
(g) Failing to include the licensee's name, address,
and license number in any advertisement. A notice of warning shall be
issued for the first violation. Thereafter, the fine shall be
twenty-five dollars ($25) for each violation.
(i)
(h) Failing to maintain personal effects for at least
60 days. The fine shall be twenty-five dollars ($25) for the first
violation and one hundred dollars ($100) for each violation
thereafter.
(j)
(i) Failing to provide a personal effects list or a
notice of seizure within the time limits set forth in Section 7507.9
or 7507.10. The fine shall be twenty-five dollars ($25) for the first
violation and one hundred dollars ($100) for each violation
thereafter.
(k)
(j) Failing to file the required report pursuant to
Section 28 of the Vehicle Code. The fine shall be twenty-five dollars
($25) for each of the first five violations and one hundred dollars
($100) for each violation thereafter, per audit.
(l)
(k) Failing to maintain an accurate record and
accounting of secure temporary registration forms. The qualified
certificate holder shall be fined twenty-five dollars ($25) for the
first violation, one hundred dollars ($100) for the second violation,
two hundred fifty dollars ($250) for the third violation, and two
hundred fifty dollars ($250) plus a one-year suspension of the
privilege to issue temporary registrations pursuant to Section 7506.9
for the fourth and subsequent violations.
(m)
(l) Representing that a licensee has an office and
conducts business at a specific address when that is not the case.
The fine shall be five thousand dollars ($5,000) for each violation.
(n)
(m) Notwithstanding any other provision of law, the
money in the Private Security Services Fund that is attributable to
administrative fines imposed pursuant to subdivision (c) shall not be
continuously appropriated and shall be available for expenditure
only upon appropriation by the Legislature.
SEC. 5. SEC. 9. Section 7508.5 of
the Business and Professions Code is amended to read:
7508.5. The director may assess administrative fines against a
repossession agency registrant for the following acts, in addition to
fines imposed pursuant to any other section in this article. The
fine shall be twenty-five dollars ($25) for each of the following
violations:
(a) Knowingly submit a false report.
(b) Submitting a report to a client without authorization by his
or her employer.
(c) Failing to carry a bureau-issued identification card and
failing to show that card upon demand to a bureau employee or a law
enforcement officer.
(d) Failing to register.
(e) Failing to return his or her registration card to the employer
upon termination.
(f) Failing to report a violent act involving the registrant to
the licensee or the licensee's qualified certificate holder within 24
hours.
SEC. 10. Section 41612 of the
Government Code is amended to read:
41612. After 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 debtor shall pay the chief of police or a
parking authority operated by a city and county a fee of fifteen
dollars ($15) for the receipt and filing of the report of
repossession pursuant to Section 28 of the Vehicle Code before the
vehicle may be redeemed by the debtor. Except as provided
herein, any Any person in possession of the
vehicle shall not release it to the debtor without first obtaining
proof of payment of the fee to the chief of police or parking
authority. At the request of the debtor, a person in
possession of the vehicle, or the legal owner, may also release the
vehicle to the debtor provided the debtor pays the fifteen dollar
($15) fee, plus an administrative fee not to exceed five dollars
($5), to the person in possession or the legal owner who shall
transmit the fifteen dollar ($15) fee to the chief of police or
parking authority within three business days. Failure to transmit the
fee within three business days shall subject the person in
possession or the legal owner receiving the fee from the debtor to a
fine of fifty dollars ($50). The proof of payment, or a
copy thereof, shall be retained by the party releasing possession to
the debtor for the period required by law, and the party
releasing possession shall provide a copy of the proof of payment to
the debtor upon request of the debtor. law. An
individual working for a repossession agency licensed pursuant to
Chapter 11 (commencing with Section 7500) of Division 3 of
the Business and Professions Code may not pay the fee to, or
retrieve the receipt from, the chief of police or parking authority.
SEC. 6. SEC. 11. 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, 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: only the
following information and in the following order:
(1) The approximate location of the repossession.
(2) The registered owner as provided on the assignment.
date and approximate time of the repossession.
(3) The individual, company, or legal owner requesting the
repossession.
(4)
(3) The vehicle year, make, and model.
(5)
(4) The last six digits of the vehicle identification
number.
(6)
(5) The repossession agency name.
registered owner as provided on the repossession assignment.
(7)
(6) The repossession agency telephone number.
legal owner requesting the repossession as provided on
the repossession assignment.
(7) The name of the repossession agency.
(8) The telephone number of the repossession agency.
SEC. 7. SEC. 12. 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.
26 of the Health and Safety Code.
(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) (1) A licensed repossessor is exempt from this section solely
for the purpose of obtaining a release from a law enforcement agency,
impounding authority, tow yard, storage facility, or any other
person or company that has possession of the collateral.
(2) A licensed repossessor is exempt from this section solely for
the purpose of obtaining collateral from a law enforcement agency,
impounding authority, tow yard, storage facility, or any other person
or company that has possession of the collateral.
(3) In order to obtain a release of the collateral from a law
enforcement agency, impounding authority, tow yard, storage facility,
or any other person or company pursuant to paragraph (1) or (2), a
licensed repossessor shall only be required to present his or her
repossessor license and a copy of the repossessor assignment to that
entity or person.
(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. 8. SEC. 13. Section 9561 of the
Vehicle Code is amended to read:
9561. (a) When a legal owner, 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. 9. SEC. 14. Section 10856 is
added to the Vehicle Code, to read:
10856. (a) A person shall not interfere
with the transport of a vehicle to a storage facility, auction, or
dealer by a repossessor an individual who is
employed by a repossession agency who is licensed pursuant to
Chapter 11 (commencing with Section 7500) of Division 3 of the
Business and Professions Code once repossession is complete as
provided in Section 7507.12 of the Business and Professions Code.
(b) Any tow yard, impounding agency, or governmental agency, or
any person acting on behalf of those entities, shall not refuse to
release a vehicle to anyone that is legally entitled to that vehicle.
SEC. 10. SEC. 15. 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.
SEC. 16. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to preserve public peace by prohibiting a person from
interfering with the transport of a vehicle to a storage facility,
auction, or dealer by a repossessor, it is necessary that this act
take effect immediately.