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 wouldbegin insert require a repossession agency to only transact business with a person or entity as an independent contractor, and wouldend insert 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.
(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.
(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.
(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.
(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 tobegin delete attempt notificationend deletebegin insert
contact law enforcementend insert within onebegin delete hour, and to accomplish notification within 2 hoursend deletebegin insert hourend insert of the repossession,begin delete andend delete would specify information that would be required to be provided in thebegin delete notification.end deletebegin insert notification, and, if notification cannot be completed, require the person to continue to attempt contact until the required information is provided.end insert
By expanding the provisions of existing law, the violation of which is a crime, this bill would impose a state-mandated local program.
(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 exempt a licensed repossessorbegin insert
who has obtained a release of collateralend insert
from registration solely for the purpose of obtaining a releasebegin delete orend deletebegin insert ofend insert the collateral from a law enforcement agency, impounding authority, tow yard, storage facility, or any other person orbegin delete companyend deletebegin insert entityend insert that has possession of the vehicle, as specified.
(10) Existing law allows the legal owner or the legal owner’s agent to obtain the release of a vehicle, after the vehicle has been removed and seized by a peace officer, as specified, from the impounding agency, by presenting specified documents. Existing law prohibits a city, county, city and county, or state agency from imposing a charge on a legal owner for administrative costs in connection with the release of properly impounded vehicle. Existing law allows a legal owner of a vehicle, or the legal owner’s agent, to obtain release of the vehicle from an impounding law enforcement agency, without payment of any fees, fines, or penalties for parking tickets or registration and without proof of current registration, if the vehicle will only be transported pursuant to a specified exemption, and the legal owner pays the cost of towing and storing the vehicle, and completes an affidavit, as specified.
end insertbegin insertThis bill would apply those provisions to a licensed repossessor seeking to obtain a release of collateral from a law enforcement agency, impounding authority, tow yard, storage facility, or any other person or entity in possession of the collateral. The bill would require a legal owner of collateral to hold those persons or entities harmless from liability if collateral is released in compliance with the bill’s provisions.
end insert(10)
end deletebegin insert(11)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.
(11)
end deletebegin insert(12)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 vehiclebegin insert or other collateralend insert to a storage facility, auction, or dealer by an individual who is employed by a repossession agencybegin insert or is licensed as 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.
(12)
end deletebegin insert(13)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.
(13)
end deletebegin insert(14)end insert This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 7500.2 of the Business and Professions
2Code is amended to read:
(a) 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
6voluntarily or involuntarily, including, but not limited to, collateral
7registered under the provisions of the Vehicle Code which is
8subject to a security agreement, except for any person registered
9pursuant to Article 7 (commencing with Section 7506).
10(b) A repossession agency licensed pursuant to this chapter shall
11begin insert only transact business with another person or entity as an
12independent contractor and shallend insert
not allow any other person or
13entity to operate or transact business under the license of the
14repossession agency.
Section 7502.2 of the Business and Professions Code
16 is amended to read:
(a) A financial institution or a buy-here-pay-here
18dealer, as defined by Section 241 of the Vehicle Code, that
19knowingly engages a nonexempt unlicensed person to repossess
20collateral on its behalf is guilty of a misdemeanor, and is punishable
21by a fine of five thousand dollars ($5,000).
22(b) Within existing resources, the Commissioner of Business
23Oversight may designate employees to investigate and report on
24violations of this section by any of the licensees of the department.
25Those employees are authorized to actively cooperate with the
26bureau in the investigation of those activities.
P6 1(c) A proceeding to impose the fine specified in subdivision (a)
2may be
brought in any court of competent jurisdiction in the name
3of the people of the State of California by the Attorney General
4or by any district attorney or city attorney, or with the consent of
5the district attorney, by the city prosecutor in any city or city and
6county having a full-time city prosecutor, for the jurisdiction in
7which the violation occurred. If the action is brought by a district
8attorney, the penalty collected shall be paid to the treasurer of the
9county in which the judgment is entered. If the action is brought
10by a city attorney or city prosecutor, one-half of the penalty
11collected shall be paid to the treasurer of the city in which the
12judgment was entered and one-half to the treasurer of the county
13in which the judgment was entered. If the action is brought by the
14Attorney General, all of the penalty collected shall be deposited
15in the Private Security Services Fund.
Section 7505.2 of the Business and Professions Code
17 is amended and renumbered to read:
Nothing in this chapter prohibits the using or taking
19of personal effects that are connected, adjoined, or affixed to the
20collateral through an unbroken sequence, if that use or taking is
21reasonably necessary to effectuate the recovery in a safe manner
22or to protect the collateral or personal effects. Nothing in this
23chapter prohibits the removal of a locking mechanism or security
24device on the collateral, before, during, or after a repossession. No
25storage fee shall be charged for the first week on any personal
26effects used to effectuate a recovery pursuant to this section. Any
27personal effects used or taken pursuant to this section shall be
28processed in a reasonably expedient manner pursuant to Sections
297507.9 and 7507.10.
Section 7505.3 of the Business and Professions Code
31 is amended to read:
(a) Whenever a qualified certificate holder actively
33in charge of an office ceases to be in charge, the licensee shall file
34with the bureau notice, in writing, within 30 days from the
35cessation.
36If the notice is filed, the license shall remain in force for a period
37of 90 days after the filing of the notice. At the end of the 90-day
38period or an additional period, not to exceed one year, as specified
39by the director, if written notice is not given that a qualified person
P7 1is then actively in charge of the office, the agency license shall be
2automatically suspended.
3If the licensee shall fail to give written notice at the end of the
430-day period, the agency license shall be automatically suspended.
5A license suspended under this section may be reinstated upon
6payment of the reinstatement fee and submission of a reinstatement
7application.
8A person who performs any act for which a repossession agency
9license is required during the period of suspension is subject to
10the penal provisions of Article 3 (commencing with Section 7502),
11in addition to the provisions of Article 9 (commencing with Section
127508) and Article 10 (commencing with Section 7510).
13(b) In case of the death of a person licensed as an individual, a
14member of the immediate family of the deceased licensee shall be
15entitled to continue the business under the same license for 180
16days following the death of the licensee, provided that written
17notice is made to the bureau within 30 days following the death
18of the licensee. The notice shall identify the person in charge of
19running the day-to-day
operations of the business. At the end of
20the 180-day period, the license shall be automatically canceled. If
21no request is received within the 30-day period, the license shall
22be automatically canceled at the end of that period.
23(c) In the case of the death or disassociation of a partner of an
24entity licensed as a partnership, the licensee shall notify the bureau,
25in writing, within 30 days from the death or disassociation of the
26individual. If notice is given, the license shall remain in force for
2790 days following the death or disassociation. At the end of that
28period, the license shall be automatically canceled. If the licensee
29fails to notify the bureau within the 30-day period, the license shall
30be automatically canceled at the end of that period.
31(d) A license extended under this section is subject to all other
32provisions of this
chapter.
Section 7507.3 of the Business and Professions Code
34 is amended to read:
A repossession agency shall be required to keep and
36maintain adequate records of all transactions, including, but not
37limited to, assignment forms; vehicle report of repossession
38required by Section 28 of the Vehicle Code; vehicle condition
39reports, including odometer readings, if available; personal effects
40inventory; and notice of seizure. Records shall be retained for a
P8 1period of not less than four years and shall be available for
2examination by the bureau upon demand. In addition, collateral
3and personal effects storage areas shall be made accessible for
4inspection by the bureau upon demand. An assignment form may
5be an original, a photocopy, a facsimile copy, or a copy stored in
6an electronic format.
Section 7507.115 of the Business and Professions
8Code is amended to read:
(a) A licensee shall not appraise or determine the
10value of any collateral, whether damaged or not.
11(b) (1) Notwithstanding subdivision (a), a licensee maybegin delete issueend delete
12begin insert completeend insert a condition report that makes a general assessment of
13the collateral.
14(2) Notwithstanding paragraph (1), a condition report shall not
15contain any of the following:
16(A) A description of the wear and tear of specific parts.
17(B) A description of the presence or absence of specific parts.
18(C) The condition of the paint on the collateral.
19(D) The electrical or mechanical condition.
20(E) How the collateral drives or operates.
21(F) The type of key used for the collateral.
Section 7508.1 of the Business and Professions Code
23 is amended to read:
The director may assess administrative fines for the
25following prohibited acts:
26(a) Knowingly making any false report to his or her employer
27or client for whom information was being obtained. The fine shall
28be one hundred dollars ($100) for the first violation, and five
29hundred dollars ($500) for each violation thereafter.
30(b) Using any identification to indicate registration as a
31repossessor, other than the bureau-issued registration card, except
32an employer identification card issued by the repossession agency
33which has met bureau approval, or a badge, cap insignia, or jacket
34patch as provided in Section 7508.8. A bureau-issued registration
35card shall be carried by those
individuals specified by Section
367506.3, and shall be shown on demand to any bureau employee
37or law enforcement officer. The fine shall be twenty-five dollars
38($25) for each violation.
39(c) Using an alias in connection with the official activities of
40the licensee’s business. A notice of warning shall be issued for the
P9 1first violation. Thereafter the fine shall be twenty-five dollars ($25)
2for each violation.
3(d) Appearing as an assignee party in any court proceeding
4involving claim and delivery, replevin, or other possessory court
5action, action to foreclose a chattel mortgage, mechanic’s lien,
6materialman’s lien, or any other lien. This section shall not prohibit
7a licensee from appearing as a defendant in any of the preceding
8actions. The fine shall be one hundred dollars ($100) for each
9violation.
Section 7508.4 of the Business and Professions Code
11 is amended to read:
The director may assess administrative fines for any
13of the following prohibited acts:
14(a) Conducting business from any location other than that
15location to which a license was issued or conducting a business as
16an individual, partnership, limited liability company, or corporation
17unless the licensee holds a valid license issued to that exact same
18individual, partnership, limited liability company, or corporation.
19The fine shall be one thousand dollars ($1,000) for each violation.
20(b) Aiding or abetting an unlicensed repossessor or assigning
21his or her license. “Assigning his or her license” means that no
22licensee shall permit a registrant, employee, or agent in his or her
23own name
to advertise, engage clients, furnish reports, or present
24bills to clients, or in any manner whatsoever to conduct business
25for which a license is required under this chapter. The fine shall
26be one thousand dollars ($1,000) for each violation.
27(c) Failing to register registrants within 15 days. The fine shall
28be two hundred fifty dollars ($250) for each of the first two
29violations and one thousand dollars ($1,000) for each violation
30thereafter.
31(d) Employing a person whose registration has expired or been
32revoked, denied, suspended, or canceled, if the bureau has furnished
33a listing of these persons to the licensee. The fine shall be
34twenty-five dollars ($25) for each violation.
35(e) Failing to notify the bureau, within 30 days, of any change
36in officers. A notice of warning shall be issued for the first
37violation.
Thereafter, the fine shall be twenty-five dollars ($25)
38for each violation.
39(f) Failing to submit the notices regarding a violent act or
40threatened violent act within seven days pursuant to Section 7507.6
P10 1or to submit a copy of a judgment awarded against the licensee
2for an amount of more than the then prevailing maximum claim
3that may be brought in small claims court within seven days
4pursuant to Section 7507.7. The fine shall be twenty-five dollars
5($25) for the first violation and one hundred dollars ($100) per
6violation thereafter.
7(g) Failing to include the licensee’s name, address, and license
8number in any advertisement. A notice of warning shall be issued
9for the first violation. Thereafter, the fine shall be twenty-five
10dollars ($25) for each violation.
11(h) Failing to maintain personal effects for at least
60 days. The
12fine shall be twenty-five dollars ($25) for the first violation and
13one hundred dollars ($100) for each violation thereafter.
14(i) Failing to provide a personal effects list or a notice of seizure
15within the time limits set forth in Section 7507.9 or 7507.10. The
16fine shall be twenty-five dollars ($25) for the first violation and
17one hundred dollars ($100) for each violation thereafter.
18(j) Failing to file the required report pursuant to Section 28 of
19the Vehicle Code. The fine shall be twenty-five dollars ($25) for
20each of the first five violations and one hundred dollars ($100) for
21each violation thereafter, per audit.
22(k) Failing to maintain an accurate record and accounting of
23secure temporary registration forms. The qualified certificate holder
24shall be fined twenty-five dollars ($25) for the first
violation, one
25hundred dollars ($100) for the second violation, two hundred fifty
26dollars ($250) for the third violation, and two hundred fifty dollars
27($250) plus a one-year suspension of the privilege to issue
28temporary registrations pursuant to Section 7506.9 for the fourth
29and subsequent violations.
30(l) Representing that a licensee has an office and conducts
31business at a specific address when that is not the case. The fine
32shall be five thousand dollars ($5,000) for each violation.
33(m) Notwithstanding any other provision of law, the money in
34the Private Security Services Fund that is attributable to
35administrative fines imposed pursuant to subdivision (c) shall not
36be continuously appropriated and shall be available for expenditure
37only upon appropriation by the Legislature.
Section 7508.5 of the Business and Professions Code
39 is amended to read:
The director may assess administrative fines against
2a repossession agency registrant for the following acts, in addition
3to fines imposed pursuant to any other section in this article. The
4fine shall be twenty-five dollars ($25) for each of the following
5violations:
6(a) Knowingly submit a false report.
7(b) Submitting a report to a client without authorization by his
8or her employer.
9(c) Failing to carry a bureau-issued identification card and failing
10to show that card upon demand to a bureau employee or a law
11enforcement officer.
12(d) Failing to register.
13(e) Failing to return his or her registration card to the employer
14upon termination.
15(f) Failing to report a violent act involving the registrant to the
16licensee or the licensee’s qualified certificate holder within 24
17hours.
Section 41612 of the Government Code is amended
19to read:
After possession is taken of any vehicle by or on behalf
21of any legal owner thereof under the terms of a security agreement
22or lease agreement, the debtor shall pay the chief of police or a
23parking authority operated by a city and county a fee of fifteen
24dollars ($15) for the receipt and filing of the report of repossession
25pursuant to Section 28 of the Vehicle Code before the vehicle may
26be redeemed by the debtor. Any person in possession of the vehicle
27shall not release it to the debtor without first obtaining proof of
28payment of the fee to the chief of police or parking authority. The
29proof of payment, or a copy thereof, shall be retained by the party
30releasing possession to the debtor for the period required by law.
31An individual working for a repossession agency licensed pursuant
32to Chapter 11 (commencing
with Section 7500) of Division 3 of
33the Business and Professions Codebegin delete mayend deletebegin insert shallend insert not pay the fee to,
34or retrieve the receipt from, the chief of police or parking authority.
Section 28 of the Vehicle Code is amended to read:
(a) Whenever possession is taken of any vehicle by or on
37behalf ofbegin delete anyend deletebegin insert itsend insert legal ownerbegin delete thereofend delete under the terms of a security
38agreement or lease agreement, the person taking possession shall
39begin deleteattempt to notify,end deletebegin insert contact, for the purpose of providing the
40information required pursuant to subdivision (d)end insert within one hour,
P12 1begin delete and shall notify, within two hours,end delete
after taking possession of the
2vehicle, by the most expeditious means available, the city police
3department where the taking of possession occurred, if within an
4incorporated city, or the sheriff’s department of the county where
5the taking of possession occurred, if outside an incorporated city,
6or the police department of a campus of the University of California
7or the California State University, if the taking of possession
8occurred on that campus, and shall within one business day forward
9a written notice to the city police or sheriff’s department.begin insert If
10notification cannot be completed, the person taking possession of
11the vehicle shall continue to attempt contact until the information
12required pursuant to subdivision (d) is provided.end insert
13(b) If possession is taken of more than one vehicle, the
14possession of each vehicle shall
be considered and reported as a
15separate event.
16(c) Any person failing to notify the city police department,
17sheriff’s department, or campus police department as required by
18this section is guilty of an infraction, and shall be fined a minimum
19of three hundred dollars ($300), and up to five hundred dollars
20($500). The district attorney, city attorney, or city prosecutor shall
21promptly notify the Bureau of Security and Investigative Services
22of any conviction resulting from a violation of this section.
23(d) For the notification required by this section, the person shall
24report only the following information and in the following order:
25(1) The approximate location of the repossession.
26(2) The date and approximate time of the repossession.
27(3) The vehicle year, make, and model.
28(4) The last six digits of the vehicle identification number.
29(5) The registered owner as provided on the repossession
30assignment.
31(6) The legal owner requesting the repossession as provided on
32the repossession assignment.
33(7) The name of the repossession agency.
34(8) The telephone number of the repossession agency.
Section 4000 of the Vehicle Code is amended to read:
(a) (1) A person shall not drive, move, or leave standing
37upon a highway, or in an offstreet public parking facility, any
38motor vehicle, trailer, semitrailer, pole or pipe dolly, or logging
39dolly, unless it is registered and the appropriate fees have been
40paid under this code or registered under the permanent trailer
P13 1identification program, except that an off-highway motor vehicle
2which displays an identification plate or device issued by the
3department pursuant to Section 38010 may be driven, moved, or
4left standing in an offstreet public parking facility without being
5registered or paying registration fees.
6(2) For purposes of this subdivision, “offstreet public parking
7facility” means either of the following:
8(A) Any publicly owned parking facility.
9(B) Any privately owned parking facility for which no fee for
10the privilege to park is charged and which is held open for the
11common public use of retail customers.
12(3) This subdivision does not apply to any motor vehicle stored
13in a privately owned offstreet parking facility by, or with the
14express permission of, the owner of the privately owned offstreet
15parking facility.
16(4) Beginning July 1, 2011, the enforcement of paragraph (1)
17shall commence on the first day of the second month following
18the month of expiration of the vehicle’s registration. This paragraph
19shall become inoperative on January 1, 2012.
20(b) No person shall drive, move, or leave
standing upon a
21highway any motor vehicle, as defined in Chapter 2 (commencing
22with Section 39010) of Part 1 of Division 26 of the Health and
23Safety Code,begin delete whichend deletebegin insert thatend insert has been registered in violation of Part 5
24(commencing with Section 43000) of Division 26 of the Health
25and Safety Code.
26(c) Subdivisions (a) and (b) do not apply to off-highway motor
27vehicles operated pursuant to Sections 38025 and 38026.5.
28(d) This section does not apply, following payment of fees due
29for registration, during the time that registration and transfer is
30being withheld by the department pending the investigation of any
31use tax due under the Revenue and Taxation Code.
32(e) Subdivision (a) does not apply to a vehicle that is towed by
33a tow truck on the order of a sheriff, marshal, or other official
34acting pursuant to a court order or on the order of a peace officer
35acting pursuant to this code.
36(f) Subdivision (a) applies to a vehicle that is towed from a
37highway or offstreet parking facility under the direction of a
38highway service organization when that organization is providing
39emergency roadside assistance to that vehicle. However, the
40operator of a tow truck providing that assistance to that vehicle is
P14 1not responsible for the violation of subdivision (a) with respect to
2that vehicle. The owner of an unregistered vehicle that is disabled
3and located on private property, shall obtain a permit from the
4department pursuant to Section 4003 prior to having the vehicle
5towed on the highway.
6(g) (1) A licensed repossessorbegin insert who has obtained a release of
7collateralend insert is exempt from this section solely for the purpose of
8obtainingbegin delete aend deletebegin insert the collateral pursuant to thatend insert
release from a law
9enforcement agency, impounding authority, tow yard, storage
10facility, or any other person orbegin delete company that hasend deletebegin insert entity inend insert
11 possession of the collateral.
12(2) A licensed repossessor is exempt from this section solely
13for the purpose of obtaining collateral from a law enforcement
14agency, impounding authority, tow yard, storage facility, or any
15other person or company that has possession of the collateral.
16(3) In order to obtain a release of the collateral from a law
17enforcement agency, impounding authority, tow yard, storage
18facility, or any other person or company pursuant to paragraph (1)
19or (2), a licensed repossessor shall only be required to present his
20or her
repossessor license and a copy of the repossessor assignment
21to that entity or person.
22(4) For purposes of paragraph (1), paragraphs (3) and (4) of
23subdivision (f) of Section 14602.6, and subparagraph (B) of
24paragraph (3) of subdivision (o) of Section 22651 apply.
25(5) The legal owner of collateral shall, by operation of law and
26without requiring further action, indemnify and hold harmless a
27law enforcement agency, city, county, city and county, the state,
28a tow yard, storage facility, or an impounding yard from a claim
29arising out of the release of the collateral to a licensee, and from
30any damage to the collateral after its release, including reasonable
31attorney’s fees and costs associated with defending a claim, if the
32collateral was released in compliance with this
subdivision.
33(h) For purposes of this section, possession of a California
34driver’s license by the registered owner of a vehicle shall give rise
35to a rebuttable presumption that the owner is a resident of
36California.
Section 9561 of the Vehicle Code is amended to read:
(a) When a legal owner, his or her agent, or a repossessor
39who is licensed pursuant to Chapter 11 (commencing with Section
407500) of Division 3 of the Business and Professions Code
P15 1repossesses a vehicle on which renewal fees are due, the department
2shall waive any renewal penalties that are due for late payment if
3the fees are paid within 60 days of taking possession.
4(b) Notwithstanding any other provisions of this code, when a
5repossessed vehicle is sold through a dealer conducting a wholesale
6motor vehicle auction as provided in subdivision (b) of Section
74456 and Article 5 (commencing with Section 6100) of Chapter
82 of Division 3, any penalties that may be due are waived, if all
9renewal fees that are due are paid not later
than 60 days after the
10date of sale at the auction.
Section 10856 is added to the Vehicle Code, to read:
(a) A person shall not interfere with the transport of a
13vehicle to a storage facility, auction, or dealer by an individual
14who is employed by a repossession agencybegin insert orend insert who is licensed
15pursuant to Chapter 11 (commencing with Section 7500) of
16Division 3 of the Business and Professions Code once repossession
17is complete as provided in Section 7507.12 of the Business and
18Professions Code.
19(b) Any tow yard, impounding agency, or governmental agency,
20or any person acting on behalf of those entities, shall not refuse to
21release a vehiclebegin insert
or other collateralend insert to anyone that is legally
22entitled to that vehiclebegin insert or other collateralend insert.
begin insertSection 11705 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
24read:end insert
(a) The department, after notice and hearing, may
26suspend or revoke the license issued to a dealer, transporter,
27manufacturer, manufacturer branch, remanufacturer,
28remanufacturer branch, distributor, or distributor branch upon
29determining that the person to whom the license was issued is not
30lawfully entitled thereto, or has done any of the following:
31(1) Filed an application for the license using a false or fictitious
32name not registered with the proper authorities, or knowingly made
33a false statement or knowingly concealed a material fact, in the
34application for the license.
35(2) Made, or knowingly or negligently permitted, an illegal use
36of the special plates
issued to the licensee.
37(3) Used a false or fictitious name, knowingly made a false
38statement, or knowingly concealed a material fact, in an application
39for the registration of a vehicle, or otherwise committed a fraud
40in the application.
P16 1(4) Failed to deliver to a transferee lawfully entitled thereto a
2properly endorsed certificate of ownership.
3(5) Knowingly purchased, sold, or otherwise acquired or
4disposed of a stolen motor vehicle.
5(6) Failed to provide and maintain a clear physical division
6between the type of business licensed pursuant to this chapter and
7any other type of business conducted at the established place of
8business.
9(7) Willfully violated Section 3064 or 3065 or any
rule or
10regulation adopted pursuant thereto.
11(8) Violated any provision of Division 3 (commencing with
12Section 4000) or any rule or regulation adopted pursuant thereto,
13or subdivision (a) of Section 38200.
14(9) Violated any provision of Division 4 (commencing with
15Section 10500) or any rule or regulation adopted pursuant thereto.
16(10) Violated any provision of Article 1 (commencing with
17Section 11700) of Chapter 4 of Division 5 or any rule or regulation
18adopted pursuant thereto.
19(11) Violated any provision of Part 5 (commencing with Section
2010701) of Division 2 of the Revenue and Taxation Code or any
21rule or regulation adopted pursuant thereto.
22(12) Violated any provision of Chapter begin insert333end insert2b
(commencing
23with Section 2981) of Title 14 of Part 4 of Division 3 of the Civil
24Code or any rule or regulation adopted pursuant thereto.
25(13) Submitted a check, draft, or money order to the department
26for any obligation or fee due the state which was dishonored or
27refused payment upon presentation.
28(14) Has caused any person to suffer any loss or damage by
29reason of any fraud or deceit practiced on that person or fraudulent
30representations made to that person in the course of the licensed
31activity.
32For purposes of this paragraph, “fraud” includes any act or
33omission which is included within the definition of either “actual
34fraud” or “constructive fraud” as defined in Sections 1572 and
351573 of the Civil Code, and “deceit” has the same meaning as
36defined in Section 1710 of the Civil Code. In addition, “fraud”
37and “deceit” include, but are
not limited to, a misrepresentation in
38any manner, whether intentionally false or due to gross negligence,
39of a material fact; a promise or representation not made honestly
P17 1and in good faith; an intentional failure to disclose a material fact;
2and any act within Section 484 of the Penal Code.
3For purposes of this paragraph, “person” also includes a
4governmental entity.
5(15) Failed to meet the terms and conditions of an agreement
6entered into pursuant to Section 11707.
7(16) Violated Section 43151, 43152, or 43153 of, or subdivision
8(b) of Section 44072.10 of, the Health and Safety Code.
9(17) Failed to repay a claim paid by the Consumer Motor
10Vehicle Recovery Corporation as provided in subdivision (i) of
11Section 11703.
12(18) Violated any provision of Chapter 11 (commencing with
13Section 7500) of Divisions 3 of the Business and Professions Code
14or any rule or regulation adopted pursuant to those provisions.
15(b) Any of the causes specified in this chapter as a cause for
16refusal to issue a license to a transporter, manufacturer,
17manufacturer branch, remanufacturer, remanufacturer branch,
18distributor, distributor branch, or dealer applicant is cause to
19suspend or revoke a license issued to a transporter, manufacturer,
20manufacturer branch, remanufacturer, remanufacturer branch,
21distributor, distributor branch, or dealer.
22(c) Except as provided in Section 11707, every hearing provided
23for in this section shall be conducted pursuant to Chapter 5
24(commencing with Section 11500) of Part 1 of Division 3 of Title
252 of the
Government Code.
No reimbursement is required by this act pursuant to
28Section 6 of Article XIII B of the California Constitution because
29the only costs that may be incurred by a local agency or school
30district will be incurred because this act creates a new crime or
31infraction, eliminates a crime or infraction, or changes the penalty
32for a crime or infraction, within the meaning of Section 17556 of
33the Government Code, or changes the definition of a crime within
34the meaning of Section 6 of Article XIII B of the California
35Constitution.
This act is an urgency statute necessary for the
38immediate preservation of the public peace, health, or safety within
39the meaning of Article IV of the Constitution and shall go into
40immediate effect. The facts constituting the necessity are:
P18 1In order to preserve public peace by prohibiting a person from
2interfering with the transport of a vehicle to a storage facility,
3auction, or dealer by a repossessor, it is necessary that this act take
4effect immediately.
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