Amended in Senate June 8, 2015

Amended in Assembly April 22, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 281


Introduced by Assembly Member Gallagher

February 11, 2015


An act to amend Sections 7500.1, 7506.9,begin delete and 7507.5end deletebegin insert 7507.5, 7507.9, 7507.115, 7507.13, and 7508.7end insert of, and to add Sections 7509, 7509.1, 7509.2, and 7509.3 to, the Business and Professions Code,begin insert and to amend Section 28 of the Vehicle Code,end insert relating to collateral recovery.

LEGISLATIVE COUNSEL’S DIGEST

AB 281, as amended, Gallagher. Collateral recovery.

begin delete

Existing

end delete

begin insert(1)end insertbegin insertend insertbegin insertExistingend insert law, the Collateral Recovery Act, provides for the licensure and regulation of repossession agencies by the Bureau of Security and Investigative Services under the supervision and control of the Director of Consumer Affairs. The chief of the bureau serves under the direction and supervision of the director. Existing law makes a violation of the act a crime. Existing law also provides for the denial of a license for specified violations of the act, and authorizes the director to assess administrative fines and penalties.

This bill would establish a Collateral Recovery Disciplinary Review Committee, to consist of 5 members to be appointed by, and to serve at the pleasure of, the Governor, for purposes of reviewing the request of a licensee to contest the assessment of an administrative fine or to appeal a denial of a license, except as specified. The bill would set forth the duties of the Collateral Recovery Disciplinary Review Committee in that regard, and would authorize the members of the committee to be paid per diem and reimbursed for actual travel expenses.

begin delete

Existing

end delete

begin insert(2)end insertbegin insertend insertbegin insertExistingend insert law prohibits a person from performing the duties of a registrant for a licensed repossession agency unless the person has in his or her possession a valid repossessor registration card or evidence of a valid temporary registration or registration renewal. Existing law authorizes a person to perform the duties of a registrant for a licensee pending receipt of a registration card if the person has been approved by the bureau and carries on his or her person a hardcopy printout of the bureau’s approval from the bureau’s Internet Web site.

This bill would exempt from that prohibition a person who has in his or her possession a hardcopy printout or electronic copy of the bureau’s approval from the bureau’s Internet Web site. The bill would also specify for the above-described purposes that an electronic copy of the bureau’s approval may include an electronic screenshot display of that information.

begin delete

The

end delete

begin insert(3)end insertbegin insertend insertbegin insertTheend insert Collateral Recovery Act authorizes licensed repossessors to perform repair work upon vehicles and charge owners if expressly authorized to do so.

This bill would prohibit licensed repossessors from performing, or charging for, repairbegin delete work.end deletebegin insert work, cleaning, or detailing.end insert

begin insert

(4) The Collateral Recovery Act requires licensees to remove personal effects from collateral, make a complete and accurate inventory of the personal effects, and provide the inventory to a debtor not later than 48 hours after the recovery of the collateral, with certain exceptions, as specified. The act requires licensees to label and store the personal effects, except for the personal effects removed by or in the presence of the debtor or the party in possession at the time of the repossession, in a secure manner for a minimum of 60 days, and authorizes licensees to dispose of the personal effects after the expiration of that period, as specified.

end insert
begin insert

This bill, instead of requiring licensees to make a complete and accurate inventory of the personal effects, would require licensees to make a good faith effort to inventory the personal effects in writing or by photograph. The bill would prohibit licensees from inventorying or removing trash, and would specify that licensees are not responsible for hidden personal effects. The bill would require a licensee unable to open a compartment in collateral to notify the legal owner of the collateral of that inability within 24 hours, and would require the legal owner to provide the licensee with access to the compartment within 72 hours of notification, as specified. The bill would specify that the 48-hour period in which the licensee must provide the inventory of personal effects to a debtor is tolled until the legal owner provides that access or 72 hours elapse after notification. The bill would authorize a licensee to allow a debtor, or a person in possession of the collateral at the time of repossession, to sign a waiver forfeiting the personal effects and inventory, and would require the licensee to immediately dispose of the personal effects upon receiving that waiver. The bill would prohibit a licensee from selling personal effects and remitting money from the sale to a third party, and would further prohibit a licensee from releasing or conspiring or agreeing to release personal effects to a person other than the debtor or person in possession of the collateral at the time of repossession.

end insert
begin insert

(5) The Collateral Recovery Act prohibits a repossession agency, except as otherwise provided by law, from disclosing the personal information of persons employed by the agency.

end insert
begin insert

This bill would allow a repossession agency to disclose the name, driver’s license number, and date of birth of a person employed by the agency to an insurance company for the purpose of verifying information for the issuance or renewal of a policy of insurance.

end insert
begin insert

(6) The Collateral Recovery Act, among other things, prohibits a licensed repossession agency or its registrants from making demand for payment in lieu of repossession, selling recovered collateral, or appraising or determining the value of any collateral, and provides that licensed repossession agencies are not liable for the acts or omissions of legal owners and that legal owners are not liable for acts or omissions of licensed repossession agencies, as specified.

end insert
begin insert

This bill would require a licensed repossession agency, at least annually, to provide a legal owner with a copy of those prohibitions and provisions.

end insert

This bill wouldbegin insert define the term “repossession” for the purposes of the act. The bill wouldend insert also make technicalbegin insert and conformingend insert changes.

begin insert

(7) Existing law requires a person who takes possession of a vehicle by or on behalf of the vehicle’s legal owner to notify the law enforcement department with applicable jurisdiction of the repossession within one hour of the repossession, as specified, and to forward a written notice to the city police or sheriff’s department within one business day. Under existing law, a person who fails to provide this notification is guilty of an infraction and subject to a $300 to $500 fine.

end insert
begin insert

This bill, if a vehicle is removed to a tow yard, storage facility, or impounding yard after a person takes possession of the vehicle on behalf of the vehicle’s legal owner and provides law enforcement with the above-described notifications, and the tow yard, storage facility, or impounding yard is outside of the jurisdiction in which the taking of possession occurred, would prohibit the person who took possession from notifying the law enforcement department of the jurisdiction of the tow yard, storage facility, or impounding yard of the removal, and would require the tow yard, storage facility, or impounding yard to direct the registered owner of the vehicle to the law enforcement department of the jurisdiction in which the taking of possession occurred.

end insert
begin delete

Because

end delete

begin insert(8)end insertbegin insertend insertbegin insertBecauseend insert a violation of the bill’s provisions under the Collateral Recovery Act would be a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

P4    1

SECTION 1.  

Section 7500.1 of the Business and Professions
2Code
is amended to read:

3

7500.1.  

The following terms as used in this chapter have the
4meaning expressed in this section:

5(a) “Advertisement” means any written or printed
6communication, including a directory listing, except a free
7telephone directory listing that does not allow space for a license
8number.

9(b) “Assignment” means any written authorization by the legal
10owner, lienholder, lessor or lessee, or the agent of any of them, to
11begin delete skip trace,end deletebegin insert look for,end insert locate, orbegin delete repossess,end deletebegin insert repossess any collateral,end insert
12 including, but not limited to, collateral registered under the Vehicle
P5    1Code that is subject to a security agreement that contains a
2repossession clause. “Assignment” also means any written
3authorization by an employer to recover any collateral entrusted
4to an employee or former employee in possession of the collateral.
5A photocopy of an assignment, facsimile copy of an assignment,
6or electronic format of an assignment shall have the same force
7and effect as an original written assignment.

8(c) “Bureau” means the Bureau of Security and Investigative
9Services.

10(d) “Chief” means the Chief of the Bureau of Security and
11Investigative Services.

12(e) “Collateral” means any specific vehicle, trailer, boat,
13recreational vehicle, motor home, appliance, or other property that
14is subject to a security agreement.

15(f) “Combustibles” means any substance or article that is capable
16of undergoing combustion or catching fire, or that is flammable,
17if retained.

18(g) “Dangerous drugs” means any controlled substances as
19defined in Chapter 2 (commencing with Section 11053) of Division
2010 of the Health and Safety Code.

21(h) “Deadly weapon” means and includes any instrument or
22weapon of the kind commonly known as a blackjack, slungshot,
23billy, sandclub, sandbag, metal knuckles, dirk, dagger, pistol, or
24revolver, or any other firearm, any knife having a blade longer
25than five inches, any razor with an unguarded blade, and any metal
26pipe or bar used or intended to be used as a club.

27(i) “Debtor” means any person obligated under a security
28 agreement.

29(j) “Department” means the Department of Consumer Affairs.

30(k) “Director” means the Director of Consumer Affairs.

31(l) “Electronic format” includes, but is not limited to, a text
32message, email, or Internet posting.

33(m) “Health hazard” means any personal effects that if retained
34would produce an unsanitary or unhealthful condition, or which
35might damage other personal effects.

36(n) “Legal owner” means a person holding a security interest
37in any collateral that is subject to a security agreement, a lien
38against any collateral, or an interest in any collateral that is subject
39to a lease agreement.

P6    1(o) “Licensee” means an individual, partnership, limited liability
2company, or corporation licensed under this chapter as a
3repossession agency.

4(p) “Multiple licensee” means a repossession agency holding
5more than one repossession license under this chapter, with one
6fictitious trade style and ownership, conducting repossession
7business from additional licensed locations other than the location
8shown on the original license.

9(q) “Person” includes any individual, partnership, limited
10liability company, or corporation.

11(r) “Personal effects” means any property that is not the property
12of the legal owner.

13(s) “Private building” means and includes any dwelling,
14outbuilding, or other enclosed structure.

15(t) “Qualified certificate holder” or “qualified manager” is a
16person who possesses a valid qualification certificate in accordance
17with the provisions of Article 5 (commencing with Section 7504)
18and is in active control or management of, and who is a director
19of, the licensee’s place of business.

20(u) “Registrant” means a person registered under this chapter.

begin insert

21(v) “Repossession” means the recovering of collateral by means
22of an assignment.

end insert
begin delete

23(v)

end delete

24begin insert(w)end insert “Secured area” means and includes any fenced and locked
25area.

begin delete

26(w)

end delete

27begin insert(x)end insert “Security agreement” means an obligation, pledge, mortgage,
28 chattel mortgage, lease agreement, deposit, or lien, given by a
29debtor as security for payment or performance of his or her debt,
30by furnishing the creditor with a recourse to be used in case of
31failure in the principal obligation. “Security agreement” also
32includes a bailment where an employer-employee relationship
33exists or existed between the bailor and the bailee.

begin delete

34(x)

end delete

35begin insert(y)end insert “Services” means any duty or labor to be rendered by one
36person for another.

begin delete

37(y)

end delete

38begin insert(z)end insert “Violent act” means any act that results in bodily harm or
39injury to any party involved.

begin delete

40(z)

end delete

P7    1begin insert(aa)end insert The amendments made to this sectionbegin delete during the 2005-06
2Regular Sessionend delete
begin insert by Chapter 418 of the Statutes of 2006end insert shall not
3be deemed to exempt any person from the provisions of this
4 chapter.

5

SEC. 2.  

Section 7506.9 of the Business and Professions Code
6 is amended to read:

7

7506.9.  

(a) Upon the issuance of the initial registration,
8reregistration, or renewal, the chief shall issue to the registrant a
9suitable pocket identification card. At the request of the registrant,
10the identification card may include a photograph of the registrant.
11The photograph shall be of a size prescribed by the bureau. The
12card shall contain the name of the licensee with whom the registrant
13is registered. The applicant may request to be issued an enhanced
14pocket card that shall be composed of durable material and may
15incorporate technologically advanced security features. The bureau
16may charge a fee sufficient to reimburse the department for costs
17for furnishing the enhanced pocket card. The fee charged may not
18exceed the actual cost for system development, maintenance, and
19processing necessary to provide the service, and may not exceed
20six dollars ($6). If the applicant does not request an enhanced card,
21the department shall issue a standard card at no cost to the
22applicant.

23(b) Until the registration certificate is issued or denied, a person
24may be assigned to work with a temporary registration on a secure
25form prescribed by the chief, and issued by the qualified certificate
26holder, for a period not to exceed 120 days from the date the
27employment or contract commenced, provided the person signs a
28declaration under penalty of perjury that he or she has not been
29convicted of a felony or committed any other act constituting
30grounds for denial of a registration pursuant to Section 7506.8
31(unless he or she declares that the conviction of a felony or the
32commission of a specified act or acts occurred prior to the issuance
33of a registration by the chief and the conduct was not the cause of
34any subsequent suspension or termination of a registration), and
35that he or she has read and understands the provisions of this
36chapter.

37(c) The chief shall issue an additional temporary registration
38for not less than 60 days nor more than 120 days, if the chief
39determines that the investigation of the applicant will take longer
40to complete than the initial temporary registration time period.

P8    1(d) No person shall perform the duties of a registrant for a
2licensee unless the person has in his or her possession a valid
3repossessor registration card, a hardcopy printout or electronic
4copy of the bureau’s approval from the bureau’s Internet Web site,
5which may include an electronic screenshot of that information,
6or evidence of a valid temporary registration or registration renewal
7as described in subdivision (b) or (e) of this section or subdivision
8(f) of Section 7506.10. Every person, while engaged in any activity
9for which licensure is required, shall display his or her valid pocket
10card, as provided by regulation.

11(e) A person may work as a registrant pending receipt of the
12registration card if he or she has been approved by the bureau and
13carries on his or her person a hardcopy printout or electronic copy
14of the bureau’s approval from the bureau’s Internet Web site, which
15may include an electronic screenshot of that information, and a
16valid picture identification.

17

SEC. 3.  

Section 7507.5 of the Business and Professions Code
18 is amended to read:

19

7507.5.  

No charge shall be made for services incurred in
20connection with the recovery, transportation, and storage of
21collateral except under terms agreed to by the legal owner at the
22time of the repossession authorization or specifically agreed upon
23at a subsequent time. Repairbegin delete workend deletebegin insert work, cleaning, or detailingend insert
24 shall not be performed and shall not be charged to the legal owner.

25begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 7507.9 of the end insertbegin insertBusiness and Professions Codeend insert
26begin insert is amended to read:end insert

27

7507.9.  

begin deletePersonal end deletebegin insertExcept as otherwise provided in this section,
28personal end insert
effects shall be removed from the collateral, including
29any personal effect that is mounted but detachable from the
30collateral by a release mechanism. Abegin delete complete and accurateend delete
31begin insert licensee shall make a good faith effort toend insert inventorybegin delete ofend delete the personal
32begin delete effects shall be made, and theend deletebegin insert effects, in writing or by photograph,
33but shall not inventory or remove trash of any kind or be held
34responsible for hidden personal effects. If the licensee is unable
35to open a trunk, glove box, or other compartment in the collateral,
36the licensee shall notify the legal owner of this inability within 24
37hours. The legal owner, within 72 hours of notification, shall either
38send to the licensee a key or entry code to the compartment or
39authorize the licensee to make a key at the legal owner’s expense
40to enable the licensee to open and inventory the contents of the
P9    1compartment in accordance with this section. Theend insert
personal effects
2shall be labeled and stored by the licensee for a minimum of 60
3days in a secure manner, except those personal effects removed
4by or in the presence of the debtor or the party in possession of
5the collateral at the time of the repossession. If the licensee or the
6licensee’s agent cannot determine whether the property attached
7to the collateral is a personal effect or a part of the collateral, then
8that fact shall be noted on the inventory and the licensee or agent
9shall not be obligated to remove the item from the collateral, unless
10the item can be removed without the use of tools, in which case it
11shall be removed and inventoried. The licensee or the licensee’s
12agent shall notify the debtor that if the debtor takes the position
13that an item is a personal effect, then the debtor shall contact the
14legal owner to resolve the issue.

15(a) The date and time the inventory is made shall be indicated.
16The permanent records of the licensee shall indicate the name of
17the employee or registrant who performed the inventory.

18(b) The following items of personal effects are items determined
19to present a danger or health hazard when recovered by the licensee
20and shall be disposed of in the following manner:

21(1) Deadly weapons and dangerous drugs shall be turned over
22to any law enforcement agency for retention. These items shall be
23entered on the inventory and a notation shall be made as to the
24date and the time and the place the deadly weapon or dangerous
25drug was turned over to the law enforcement agency, and a receipt
26from the law enforcement agency shall be maintained in the records
27of the repossession agency.

28(2) Combustibles shall be inventoried and noted as “disposed
29of, dangerous combustible,” and the item shall be disposed of in
30a reasonable and safe manner.

31(3) Food and other health hazard items shall be inventoried and
32noted as “disposed of, health hazard,” and disposed of in a
33reasonable and safe manner.

34(c) Personal effects may be disposed of after being held for at
35least 60 days. The inventory, and adequate information as to how,
36when, and to whom the personal effects were disposed of, shall
37be filed in the permanent records of the licensee and retained for
38four years.

39(d) The inventory shall include the name, address, business
40hours, and telephone number of the repossession agency to contact
P10   1for recovering the personal effects and an itemization of all
2personal effects removal and storage charges that will be made by
3the repossession agency. The inventory shall also include the
4following statement: “Please be advised that the property listed
5on this inventory will be disposed of by the repossession agency
6after being held for 60 days from the date of this notice IF
7UNCLAIMED.”

8(e) The inventory shall be provided to a debtor not later than
948 hours after the recovery of the collateral, except that if:

10(1) The 48-hour period encompasses a Saturday, Sunday, or
11postal holiday, the inventory shall be provided no later than 72
12hours after the recovery of the collateral.

13(2) The 48-hour period encompasses a Saturday or Sunday and
14a postal holiday, the inventory shall be provided no later than 96
15hours after the recovery of the collateral.

16(3) Inventory resulting from repossession of a yacht, motor
17home, or travel trailer is such that it shall take at least four hours
18to inventory, then the inventory shall be provided no later than 96
19hours after the recovery of the collateral. When the 96-hour period
20encompasses a Saturday, Sunday, or postal holiday, the inventory
21shall be provided no later than 120 hours after the recovery of the
22collateral.

begin insert

23(4) The licensee is unable to open and inventory the contents
24of a trunk, glove box, or other compartment in the collateral, the
2548-hour period shall be tolled until the legal owner sends to the
26licensee a key or entry code to the compartment or authorizes the
27licensee to make a key at the legal owner’s expense, or 72 hours
28elapse after the licensee has informed the legal owner of the
29licensee’s inability to open and inventory the contents of the trunk,
30glove box, or other compartment in the collateral, whichever is
31earlier.

end insert

32(f) Environmental, Olympic, special interest, or other license
33plates issued pursuant to Article 8 (commencing with Section
345000), Article 8.4 (commencing with Section 5060), or Article 8.5
35(commencing with Section 5100) of Chapter 1 of Division 3 of
36the Vehicle Code that remain the personal effects of the debtor
37shall be removed from the collateral and inventoried pursuant to
38this section. If the plates are not claimed by the debtor within 60
39days, they shall either (1) be effectively destroyed and the licensee
40shall, within 30 days thereafter, notify the Department of Motor
P11   1Vehicles of their effective destruction on a form promulgated by
2the chief that has been approved as to form by the Director of the
3Department of Motor Vehicles; or (2) be retained by the licensee
4indefinitely to be returned to the debtor upon request, in which
5case the licensee shall not charge more than 60 days’ storage on
6the plates.

7(g) The notice may be given by regular mail addressed to the
8last known address of the debtor or by personal service at the option
9of the repossession agency.

10(h) begin insert(1)end insertbegin insertend insert With the consent of the licensee, the debtor waives the
11preparation and presentation of an inventory if the debtor redeems
12the personal effects or other personal property not covered by a
13security interest within the time period for the notices required by
14this section and signs a statement that he or she has received all
15the property.

begin insert

16(2) A licensee may allow a debtor, or a person in possession of
17the collateral at the time of repossession, to sign a waiver forfeiting
18personal effects or other personal property not covered by a
19security agreement and waiving an inventory of those personal
20effects or other personal property. Upon receipt of the waiver, the
21licensee shall immediately dispose of the personal effects or other
22personal property.

end insert
begin delete

23(i) If personal effects or other personal property not covered by
24a security agreement are to be released to someone other than the
25debtor, the repossession agency may request written authorization
26to do so from the debtor.

end delete
begin insert

27(i) (1) A licensee shall not sell personal effects or other personal
28property not covered by a security agreement and remit money
29from the sale to a third party, including, but not limited to, any
30lending institution.

end insert
begin insert

31(2) A licensee shall not release or conspire or agree to release
32personal effects or other personal property not covered by a
33security agreement to anyone other than the debtor or the person
34in possession of the collateral at the time of repossession.

end insert

35(j) The inventory shall be a confidential document. A licensee
36shall only disclose the contents of the inventory under the following
37circumstances:

38(1) In response to the order of a court having jurisdiction to
39issue the order.

P12   1(2) In compliance with a lawful subpoena issued by a court of
2competent jurisdiction.

3(3) When the debtor has consented in writing to the release and
4the written consent is signed and dated by the debtor subsequent
5to the repossession and states the entity or entities to whom the
6contents of the inventory may be disclosed.

7(4) To the debtor.

begin insert

8(k) A licensee may store personal effects inside the collateral
9until the collateral is no longer in the possession of the licensee.
10Collateral shall not leave possession of the licensee until all
11personal effects have been removed.

end insert
12begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 7507.115 of the end insertbegin insertBusiness and Professions Codeend insert
13begin insert is amended to read:end insert

14

7507.115.  

(a) A licensee shall not appraise or determine the
15value of any collateral, whether damaged or not.

16(b) (1) Notwithstanding subdivision (a), a licensee may
17complete a condition report that makes a general assessment of
18the collateral.

19(2) A condition report does not include all damage or missing
20parts.

21(3) A condition report shall include the following statement:
22“In accordance with Sectionbegin delete 7505.115end deletebegin insert 7507.115end insert of the Business
23and Professions Code, this condition report is a general assessment
24of the collateral and does not include all damage or missing parts.”

25begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 7507.13 of the end insertbegin insertBusiness and Professions Codeend insert
26begin insert is amended to read:end insert

27

7507.13.  

(a) A licensed repossession agency is not liable for
28the act or omission of a legal owner, debtor, lienholder, lessor or
29lessee, or an agent of any of them, in making an assignment to it
30or for accepting an assignment from any legal owner, debtor,
31lienholder, lessor or lessee, or an agent of any of them, and is
32entitled to indemnity from the legal owner, debtor, lienholder,
33lessor or lessee for any loss, damage, cost, or expense, including
34court costs and attorney’s fees, that it may reasonably incur as a
35result thereof. Nothing in this subdivision limits the liability of
36any person for his or her tortious conduct.

37(b) The legal owner, debtor, lienholder, lessor or lessee, or the
38agent of any of them, is not liable for any act or omission by a
39licensed repossession agency, or its agent, in carrying out an
40assignment and is entitled to indemnity from the repossession
P13   1agency for any loss, damage, cost, or expense, including court
2costs and attorney’s fees, that the legal owner, debtor, lienholder,
3lessor or lessee, or the agent of any of them, may reasonably incur
4as a result thereof. Nothing in this subdivision limits the liability
5of any person for his or her tortious conduct.

6(c) The legal owner, debtor, lienholder, lessor or lessee, or the
7agent of any of them, is not guilty of a violation of Section 7502.1
8or 7502.2 if, at the time of the assignment, the party making the
9assignment has in its possession a copy of the repossessor’s current,
10unexpired repossession agency license, and a copy of the current,
11unexpired repossession agency’s qualified manager’s certificate,
12and does not have actual knowledge of any order of suspension or
13revocation of the license or certificate.

14(d) Neither a licensed repossession agency nor a legal owner,
15debtor, lienholder, lessor or lessee, or an agent of any of them may,
16by any means, direct or indirect, express or implied, instruct or
17attempt to coerce the other to violate any law, regulation, or rule
18regarding the recovery of any collateral, including, but not limited
19to, the provisions of this chapter or Section 9609 of the Commercial
20Code.

begin insert

21(e) A licensed repossession agency, at least annually, on or
22before January 31 of each year, shall provide a legal owner from
23which the agency accepts an assignment with a copy of this section,
24Sections 7500.2, 7507.4, 7507.115, 7507.12, and 7507.125 of this
25code, and Section 28 of the Vehicle Code.

end insert
26begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 7508.7 of the end insertbegin insertBusiness and Professions Codeend insert
27begin insert is amended to read:end insert

28

7508.7.  

begin delete

Except

end delete

29begin insert(a)end insertbegin insertend insertbegin insertExceptend insert as otherwise provided by law, a repossession agency
30shall not disclose to the public,begin insert any person, or any
31nongovernmental entity,end insert
without a court order, the residence
32address, residence telephone number, cellular telephone number,
33driver’s license number, work schedule, past, present, or future
34location, or any other personal information of any licensee,
35registrant, qualified certificate holder, qualified manager, employee,
36or independent contractorbegin delete that itend deletebegin insert the agencyend insert employs.

begin insert

37(b) For the purpose of verifying information for the issuance
38or renewal of a policy of insurance, a repossession agency may
39provide to an insurance company the name, driver’s license
40number, and date of birth of a licensee, registrant, qualified
P14   1certificate holder, qualified manager, employee, or independent
2contractor the agency employs.

end insert
3

begin deleteSEC. 4.end delete
4begin insertSEC. 8.end insert  

Section 7509 is added to the Business and Professions
5Code
, to read:

6

7509.  

(a) A person licensed with the bureau under this chapter
7may request a review by the Collateral Recovery Disciplinary
8Review Committee, as established in Section 7509.1, to contest
9the assessment of an administrative fine or to appeal a denial of a
10license, unless the denial is ordered by the director in accordance
11with Chapter 5 (commencing with Section 11500) of Part 1 of
12Division 3 of Title 2 of the Government Code.

13(b) A request for a review shall be by written notice to the
14disciplinary review committee within 30 days of the issuance of
15the citation and assessment or denial.

16(c) Following a review by the disciplinary review committee,
17the appellant shall be notified within 30 days, in writing, by regular
18mail, of the committee’s decision. At the discretion of the
19disciplinary review committee, an appellant may be notified
20immediately of the committee’s decision once it is made.

21(d) If the appellant disagrees with the decision made by the
22disciplinary review committee, he or she may request a hearing in
23accordance with Chapter 5 (commencing with Section 11500) of
24Part 1 of Division 3 of Title 2 of the Government Code. A request
25for a hearing following a decision by the disciplinary review
26committee shall be by written notice to the bureau within 30 days
27following notice of the committee’s decision.

28(e) If the appellant does not request a hearing within 30 days,
29the disciplinary review committee’s decision shall become final.

30(f) Notwithstanding subdivisions (a) to (e), inclusive, when a
31hearing is held under this chapter to determine whether an
32application for licensure should be granted, the proceedings shall
33be conducted in accordance with Chapter 5 (commencing with
34Section 11500) of Part 1 of Division 3 of Title 2 of the Government
35Code, and the director shall have all of the powers granted therein.

36

begin deleteSEC. 5.end delete
37begin insertSEC. 9.end insert  

Section 7509.1 is added to the Business and Professions
38Code
, to read:

39

7509.1.  

(a) The Governor shall appoint a Collateral Recovery
40Disciplinary Review Committee, and may remove any member of
P15   1the committee for misconduct, incompetency, or neglect of duty.
2The committee shall consist of five members. Of the five members,
3three members shall be actively engaged in business as a licensed
4repossession agency and two members shall be public members.
5None of the public members shall be licensees, certificate holders,
6or registrants, or engaged in any business or profession in which
7any part of the fees, compensation, or revenue thereof is derived
8from any licensee.

9(b) The disciplinary review committee shall meet as frequently
10as may be required. The members shall be paid per diem pursuant
11to Section 103 and shall be reimbursed for actual travel expenses.
12The members shall serve for a term of four years.

13

begin deleteSEC. 6.end delete
14begin insertSEC. 10.end insert  

Section 7509.2 is added to the Business and
15Professions Code
, to read:

16

7509.2.  

The Collateral Recovery Disciplinary Review
17Committee shall perform the following functions:

18(a) Affirm, rescind, or modify all appealed decisions concerning
19administrative fines assessed by the director or bureau against
20repossession agencies or their employees.

21(b) Affirm, rescind, or modify all appealed decisions concerning
22denial of licenses issued by the director or bureau, except denials
23or suspensions ordered by the director in accordance with Chapter
245 (commencing with Section 11500) of Part 1 of Division 3 of
25Title 2 of the Government Code.

26

begin deleteSEC. 7.end delete
27begin insertSEC. 11.end insert  

Section 7509.3 is added to the Business and
28Professions Code
, to read:

29

7509.3.  

The bureau shall provide the Collateral Recovery
30Disciplinary Review Committee all evidence used by the bureau
31in reaching its decision prior to any review or appeal of that
32decision by the committee.

33begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 28 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to read:end insert

34

28.  

(a) Whenever possession is taken of any vehicle by or on
35behalf of its legal owner under the terms of a security agreement
36or lease agreement, the person taking possession shall contact, for
37the purpose of providing the information required pursuant to
38subdivision (d) within one hour, after taking possession of the
39vehicle, by the most expeditious means available, the city police
40department where the taking of possession occurred, if within an
P16   1incorporated city, or the sheriff’s department of the county where
2the taking of possession occurred, if outside an incorporated city,
3or the police department of a campus of the University of California
4or the California State University, if the taking of possession
5occurred on that campus, and shall within one business day forward
6a written notice to the city police or sheriff’s department. If, after
7an attempt to notify, law enforcement is unable to receive and
8record the notification required pursuant to subdivision (d), the
9person taking possession of the vehicle shall continue to attempt
10notification until the information required pursuant to subdivision
11(d) is provided.

12(b) If possession is taken of more than one vehicle, the
13possession of each vehicle shall be considered and reported as a
14separate event.

15(c) Any person failing to notify the city police department,
16sheriff’s department, or campus police department as required by
17this section is guilty of an infraction, and shall be fined a minimum
18of three hundred dollars ($300), and up to five hundred dollars
19($500). The district attorney, city attorney, or city prosecutor shall
20promptly notify the Bureau of Security and Investigative Services
21of any conviction resulting from a violation of this section.

22(d) For the notification required by this section, the person shall
23report only the following information and in the following order:

24(1) The approximate location of the repossession.

25(2) The date and approximate time of the repossession.

26(3) The vehicle year, make, and model.

27(4) The last six digits of the vehicle identification number.

28(5) The registered owner as provided on the repossession
29assignment.

30(6) The legal owner requesting the repossession as provided on
31the repossession assignment.

32(7) The name of the repossession agency.

33(8) The telephone number of the repossession agency.

begin insert

34(e) If a vehicle is removed to a tow yard, storage facility, or
35impounding yard after possession is taken of the vehicle on behalf
36of its legal owner, and the person taking possession has notified
37the appropriate city police department, sheriff’s department, or
38campus police department, as required by this section, and the
39tow yard, storage facility, or impounding yard is outside of the
P17   1jurisdiction in which the taking of possession occurred, both of
2the following shall apply:

end insert
begin insert

3(1) The person shall not notify the city police department,
4sheriff’s department, or campus police department of the
5jurisdiction in which the tow yard, storage facility, or impounding
6yard is located of the removal.

end insert
begin insert

7(2) The tow yard, storage facility, or impounding yard shall
8direct the registered owner of the vehicle to the city police
9department, sheriff’s department, or campus police department of
10the jurisdiction in which the taking of possession occurred.

end insert
11

begin deleteSEC. 8.end delete
12begin insertSEC. 13.end insert  

No reimbursement is required by this act pursuant to
13Section 6 of Article XIII B of the California Constitution because
14the only costs that may be incurred by a local agency or school
15district will be incurred because this act creates a new crime or
16infraction, eliminates a crime or infraction, or changes the penalty
17for a crime or infraction, within the meaning of Section 17556 of
18the Government Code, or changes the definition of a crime within
19the meaning of Section 6 of Article XIII B of the California
20Constitution.



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