BILL NUMBER: AB 281 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 8, 2015
AMENDED IN ASSEMBLY APRIL 22, 2015
INTRODUCED BY Assembly Member Gallagher
FEBRUARY 11, 2015
An act to amend Sections 7500.1, 7506.9, and 7507.5
7507.5, 7507.9, 7507.115, 7507.13, and 7508.7
of, and to add Sections 7509, 7509.1, 7509.2, and 7509.3 to, the
Business and Professions Code, and to amend Section 28 of the
Vehicle Code, relating to collateral recovery.
LEGISLATIVE COUNSEL'S DIGEST
AB 281, as amended, Gallagher. Collateral recovery.
Existing
(1) Existing 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.
Existing
(2) Existing 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.
The
(3) The 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, repair work. work, cleaning,
or detailing.
(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.
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.
(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.
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.
(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.
This bill would require a licensed repossession agency, at least
annually, to provide a legal owner with a copy of those prohibitions
and provisions.
This bill would define the term "repossession" for the
purposes of the act. The bill would also make technical
and conforming changes.
(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.
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.
Because
(8) Because 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:
SECTION 1. Section 7500.1 of the Business and Professions Code is
amended to read:
7500.1. The following terms as used in this chapter have the
meaning expressed in this section:
(a) "Advertisement" means any written or printed communication,
including a directory listing, except a free telephone directory
listing that does not allow space for a license number.
(b) "Assignment" means any written authorization by the legal
owner, lienholder, lessor or lessee, or the agent of any of them, to
skip trace, look for, locate, or
repossess, repossess any collateral,
including, but not limited to, collateral registered under the
Vehicle Code that is subject to a security agreement that contains a
repossession clause. "Assignment" also means any written
authorization by an employer to recover any collateral entrusted to
an employee or former employee in possession of the collateral. A
photocopy of an assignment, facsimile copy of an assignment, or
electronic format of an assignment shall have the same force and
effect as an original written assignment.
(c) "Bureau" means the Bureau of Security and Investigative
Services.
(d) "Chief" means the Chief of the Bureau of Security and
Investigative Services.
(e) "Collateral" means any specific vehicle, trailer, boat,
recreational vehicle, motor home, appliance, or other property that
is subject to a security agreement.
(f) "Combustibles" means any substance or article that is capable
of undergoing combustion or catching fire, or that is flammable, if
retained.
(g) "Dangerous drugs" means any controlled substances as defined
in Chapter 2 (commencing with Section 11053) of Division 10 of the
Health and Safety Code.
(h) "Deadly weapon" means and includes any instrument or weapon of
the kind commonly known as a blackjack, slungshot, billy, sandclub,
sandbag, metal knuckles, dirk, dagger, pistol, or revolver, or any
other firearm, any knife having a blade longer than five inches, any
razor with an unguarded blade, and any metal pipe or bar used or
intended to be used as a club.
(i) "Debtor" means any person obligated under a security
agreement.
(j) "Department" means the Department of Consumer Affairs.
(k) "Director" means the Director of Consumer Affairs.
(l) "Electronic format" includes, but is not limited to, a text
message, email, or Internet posting.
(m) "Health hazard" means any personal effects that if retained
would produce an unsanitary or unhealthful condition, or which might
damage other personal effects.
(n) "Legal owner" means a person holding a security interest in
any collateral that is subject to a security agreement, a lien
against any collateral, or an interest in any collateral that is
subject to a lease agreement.
(o) "Licensee" means an individual, partnership, limited liability
company, or corporation licensed under this chapter as a
repossession agency.
(p) "Multiple licensee" means a repossession agency holding more
than one repossession license under this chapter, with one fictitious
trade style and ownership, conducting repossession business from
additional licensed locations other than the location shown on the
original license.
(q) "Person" includes any individual, partnership, limited
liability company, or corporation.
(r) "Personal effects" means any property that is not the property
of the legal owner.
(s) "Private building" means and includes any dwelling,
outbuilding, or other enclosed structure.
(t) "Qualified certificate holder" or "qualified manager" is a
person who possesses a valid qualification certificate in accordance
with the provisions of Article 5 (commencing with Section 7504) and
is in active control or management of, and who is a director of, the
licensee's place of business.
(u) "Registrant" means a person registered under this chapter.
(v) "Repossession" means the recovering of collateral by means of
an assignment.
(v)
(w) "Secured area" means and includes any fenced and
locked area.
(w)
(x) "Security agreement" means an obligation, pledge,
mortgage, chattel mortgage, lease agreement, deposit, or lien, given
by a debtor as security for payment or performance of his or her
debt, by furnishing the creditor with a recourse to be used in case
of failure in the principal obligation. "Security agreement" also
includes a bailment where an employer-employee relationship exists or
existed between the bailor and the bailee.
(x)
(y) "Services" means any duty or labor to be rendered
by one person for another.
(y)
(z) "Violent act" means any act that results in bodily
harm or injury to any party involved.
(z)
(aa) The amendments made to this section
during the 2005-06 Regular Session by Chapter 418 of
the Statutes of 2006 shall not be deemed to exempt any person
from the provisions of this chapter.
SEC. 2. Section 7506.9 of the Business and Professions Code is
amended to read:
7506.9. (a) Upon the issuance of the initial registration,
reregistration, or renewal, the chief shall issue to the registrant a
suitable pocket identification card. At the request of the
registrant, the identification card may include a photograph of the
registrant. The photograph shall be of a size prescribed by the
bureau. The card shall contain the name of the licensee with whom the
registrant is registered. The applicant may request to be issued an
enhanced pocket card that shall be composed of durable material and
may incorporate technologically advanced security features. The
bureau may charge a fee sufficient to reimburse the department for
costs for furnishing the enhanced pocket card. The fee charged may
not exceed the actual cost for system development, maintenance, and
processing necessary to provide the service, and may not exceed six
dollars ($6). If the applicant does not request an enhanced card, the
department shall issue a standard card at no cost to the applicant.
(b) Until the registration certificate is issued or denied, a
person may be assigned to work with a temporary registration on a
secure form prescribed by the chief, and issued by the qualified
certificate holder, for a period not to exceed 120 days from the date
the employment or contract commenced, provided the person signs a
declaration under penalty of perjury that he or she has not been
convicted of a felony or committed any other act constituting grounds
for denial of a registration pursuant to Section 7506.8 (unless he
or she declares that the conviction of a felony or the commission of
a specified act or acts occurred prior to the issuance of a
registration by the chief and the conduct was not the cause of any
subsequent suspension or termination of a registration), and that he
or she has read and understands the provisions of this chapter.
(c) The chief shall issue an additional temporary registration for
not less than 60 days nor more than 120 days, if the chief
determines that the investigation of the applicant will take longer
to complete than the initial temporary registration time period.
(d) No person shall perform the duties of a registrant for a
licensee unless the person has in his or her possession a valid
repossessor registration card, a hardcopy printout or electronic copy
of the bureau's approval from the bureau's Internet Web site, which
may include an electronic screenshot of that information, or evidence
of a valid temporary registration or registration renewal as
described in subdivision (b) or (e) of this section or subdivision
(f) of Section 7506.10. Every person, while engaged in any activity
for which licensure is required, shall display his or her valid
pocket card, as provided by regulation.
(e) A person may work as a registrant pending receipt of the
registration card if he or she has been approved by the bureau and
carries on his or her person a hardcopy printout or electronic copy
of the bureau's approval from the bureau's Internet Web site, which
may include an electronic screenshot of that information, and a valid
picture identification.
SEC. 3. Section 7507.5 of the Business and Professions Code is
amended to read:
7507.5. No charge shall be made for services incurred in
connection with the recovery, transportation, and storage of
collateral except under terms agreed to by the legal owner at the
time of the repossession authorization or specifically agreed upon at
a subsequent time. Repair work work,
cleaning, or detailing shall not be performed and shall not be
charged to the legal owner.
SEC. 4. Section 7507.9 of the Business
and Professions Code is amended to read:
7507.9. Personal Except as otherwise
provided in this section, personal effects shall be removed
from the collateral, including any personal effect that is mounted
but detachable from the collateral by a release mechanism. A
complete and accurate licensee shall make a good
faith effort to inventory of the personal
effects shall be made, and the effects, in
writing or by photograph, but shall not inventory or remove trash of
any kind or be held responsible for hidden personal effects. If the
licensee is unable to open a trunk, glove box, or other compartment
in the collateral, the licensee shall notify the legal owner of this
inability within 24 hours. The legal owner, within 72 hours of
notification, shall either send to the licensee a key or entry code
to the compartment or authorize the licensee to make a key at the
legal ow ner's expense to enable the licensee to open and
inventory the contents of the compartment in accordance with this
section. The personal effects shall be labeled and stored by
the licensee for a minimum of 60 days in a secure manner, except
those personal effects removed by or in the presence of the debtor or
the party in possession of the collateral at the time of the
repossession. If the licensee or the licensee's agent cannot
determine whether the property attached to the collateral is a
personal effect or a part of the collateral, then that fact shall be
noted on the inventory and the licensee or agent shall not be
obligated to remove the item from the collateral, unless the item can
be removed without the use of tools, in which case it shall be
removed and inventoried. The licensee or the licensee's agent shall
notify the debtor that if the debtor takes the position that an item
is a personal effect, then the debtor shall contact the legal owner
to resolve the issue.
(a) The date and time the inventory is made shall be indicated.
The permanent records of the licensee shall indicate the name of the
employee or registrant who performed the inventory.
(b) The following items of personal effects are items determined
to present a danger or health hazard when recovered by the licensee
and shall be disposed of in the following manner:
(1) Deadly weapons and dangerous drugs shall be turned over to any
law enforcement agency for retention. These items shall be entered
on the inventory and a notation shall be made as to the date and the
time and the place the deadly weapon or dangerous drug was turned
over to the law enforcement agency, and a receipt from the law
enforcement agency shall be maintained in the records of the
repossession agency.
(2) Combustibles shall be inventoried and noted as "disposed of,
dangerous combustible," and the item shall be disposed of in a
reasonable and safe manner.
(3) Food and other health hazard items shall be inventoried and
noted as "disposed of, health hazard," and disposed of in a
reasonable and safe manner.
(c) Personal effects may be disposed of after being held for at
least 60 days. The inventory, and adequate information as to how,
when, and to whom the personal effects were disposed of, shall be
filed in the permanent records of the licensee and retained for four
years.
(d) The inventory shall include the name, address, business hours,
and telephone number of the repossession agency to contact for
recovering the personal effects and an itemization of all personal
effects removal and storage charges that will be made by the
repossession agency. The inventory shall also include the following
statement: "Please be advised that the property listed on this
inventory will be disposed of by the repossession agency after being
held for 60 days from the date of this notice IF UNCLAIMED."
(e) The inventory shall be provided to a debtor not later than 48
hours after the recovery of the collateral, except that if:
(1) The 48-hour period encompasses a Saturday, Sunday, or postal
holiday, the inventory shall be provided no later than 72 hours after
the recovery of the collateral.
(2) The 48-hour period encompasses a Saturday or Sunday and a
postal holiday, the inventory shall be provided no later than 96
hours after the recovery of the collateral.
(3) Inventory resulting from repossession of a yacht, motor home,
or travel trailer is such that it shall take at least four hours to
inventory, then the inventory shall be provided no later than 96
hours after the recovery of the collateral. When the 96-hour period
encompasses a Saturday, Sunday, or postal holiday, the inventory
shall be provided no later than 120 hours after the recovery of the
collateral.
(4) The licensee is unable to open and inventory the contents of a
trunk, glove box, or other compartment in the collateral, the
48-hour period shall be tolled until the legal owner sends to the
licensee a key or entry code to the compartment or authorizes the
licensee to make a key at the legal owner's expense, or 72 hours
elapse after the licensee has informed the legal owner of the
licensee's inability to open and inventory the contents of the trunk,
glove box, or other compartment in the collateral, whichever is
earlier.
(f) Environmental, Olympic, special interest, or other license
plates issued pursuant to Article 8 (commencing with Section 5000),
Article 8.4 (commencing with Section 5060), or Article 8.5
(commencing with Section 5100) of Chapter 1 of Division 3 of the
Vehicle Code that remain the personal effects of the debtor shall be
removed from the collateral and inventoried pursuant to this section.
If the plates are not claimed by the debtor within 60 days, they
shall either (1) be effectively destroyed and the licensee shall,
within 30 days thereafter, notify the Department of Motor Vehicles of
their effective destruction on a form promulgated by the chief that
has been approved as to form by the Director of the Department of
Motor Vehicles; or (2) be retained by the licensee indefinitely to be
returned to the debtor upon request, in which case the licensee
shall not charge more than 60 days' storage on the plates.
(g) The notice may be given by regular mail addressed to the last
known address of the debtor or by personal service at the option of
the repossession agency.
(h) (1) With the consent of the licensee,
the debtor waives the preparation and presentation of an inventory if
the debtor redeems the personal effects or other personal property
not covered by a security interest within the time period for the
notices required by this section and signs a statement that he or she
has received all the property.
(2) A licensee may allow a debtor, or a person in possession of
the collateral at the time of repossession, to sign a waiver
forfeiting personal effects or other personal property not covered by
a security agreement and waiving an inventory of those personal
effects or other personal property. Upon receipt of the waiver, the
licensee shall immediately dispose of the personal effects or other
personal property.
(i) If personal effects or other personal property not covered by
a security agreement are to be released to someone other than the
debtor, the repossession agency may request written authorization to
do so from the debtor.
(i) (1) A licensee shall not sell personal effects or other
personal property not covered by a security agreement and remit money
from the sale to a third party, including, but not limited to, any
lending institution.
(2) A licensee shall not release or conspire or agree to release
personal effects or other personal property not covered by a security
agreement to anyone other than the debtor or the person in
possession of the collateral at the time of repossession.
(j) The inventory shall be a confidential document. A licensee
shall only disclose the contents of the inventory under the following
circumstances:
(1) In response to the order of a court having jurisdiction to
issue the order.
(2) In compliance with a lawful subpoena issued by a court of
competent jurisdiction.
(3) When the debtor has consented in writing to the release and
the written consent is signed and dated by the debtor subsequent to
the repossession and states the entity or entities to whom the
contents of the inventory may be disclosed.
(4) To the debtor.
(k) A licensee may store personal effects inside the collateral
until the collateral is no longer in the possession of the licensee.
Collateral shall not leave possession of the licensee until all
personal effects have been removed.
SEC. 5. 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 complete a
condition report that makes a general assessment of the collateral.
(2) A condition report does not include all damage or missing
parts.
(3) A condition report shall include the following statement: "In
accordance with Section 7505.115 7507.115
of the Business and Professions Code, this condition report is
a general assessment of the collateral and does not include all
damage or missing parts."
SEC. 6. Section 7507.13 of the Business
and Professions Code is amended to read:
7507.13. (a) A licensed repossession agency is not liable for the
act or omission of a legal owner, debtor, lienholder, lessor or
lessee, or an agent of any of them, in making an assignment to it or
for accepting an assignment from any legal owner, debtor, lienholder,
lessor or lessee, or an agent of any of them, and is entitled to
indemnity from the legal owner, debtor, lienholder, lessor or lessee
for any loss, damage, cost, or expense, including court costs and
attorney's fees, that it may reasonably incur as a result thereof.
Nothing in this subdivision limits the liability of any person for
his or her tortious conduct.
(b) The legal owner, debtor, lienholder, lessor or lessee, or the
agent of any of them, is not liable for any act or omission by a
licensed repossession agency, or its agent, in carrying out an
assignment and is entitled to indemnity from the repossession agency
for any loss, damage, cost, or expense, including court costs and
attorney's fees, that the legal owner, debtor, lienholder, lessor or
lessee, or the agent of any of them, may reasonably incur as a result
thereof. Nothing in this subdivision limits the liability of any
person for his or her tortious conduct.
(c) The legal owner, debtor, lienholder, lessor or lessee, or the
agent of any of them, is not guilty of a violation of Section 7502.1
or 7502.2 if, at the time of the assignment, the party making the
assignment has in its possession a copy of the repossessor's current,
unexpired repossession agency license, and a copy of the current,
unexpired repossession agency's qualified manager's certificate, and
does not have actual knowledge of any order of suspension or
revocation of the license or certificate.
(d) Neither a licensed repossession agency nor a legal owner,
debtor, lienholder, lessor or lessee, or an agent of any of them may,
by any means, direct or indirect, express or implied, instruct or
attempt to coerce the other to violate any law, regulation, or rule
regarding the recovery of any collateral, including, but not limited
to, the provisions of this chapter or Section 9609 of the Commercial
Code.
(e) A licensed repossession agency, at least annually, on or
before January 31 of each year, shall provide a legal owner from
which the agency accepts an assignment with a copy of this section,
Sections 7500.2, 7507.4, 7507.115, 7507.12, and 7507.125 of this
code, and Section 28 of the Vehicle Code.
SEC. 7. Section 7508.7 of the Business
and Professions Code is amended to read:
7508.7. Except
(a) Except as otherwise provided
by law, a repossession agency shall not disclose to the public,
any person, or any nongovernmental entity, without a court
order, the residence address, residence telephone number, cellular
telephone number, driver's license number, work schedule, past,
present, or future location, or any other personal information of any
licensee, registrant, qualified certificate holder, qualified
manager, employee, or independent contractor that it
the agency employs.
(b) For the purpose of verifying information for the issuance or
renewal of a policy of insurance, a repossession agency may provide
to an insurance company the name, driver's license number, and date
of birth of a licensee, registrant, qualified certificate holder,
qualified manager, employee, or independent contractor the agency
employs.
SEC. 4. SEC. 8. Section 7509 is
added to the Business and Professions Code, to read:
7509. (a) A person licensed with the bureau under this chapter
may request a review by the Collateral Recovery Disciplinary Review
Committee, as established in Section 7509.1, to contest the
assessment of an administrative fine or to appeal a denial of a
license, unless the denial is ordered by the director in accordance
with Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code.
(b) A request for a review shall be by written notice to the
disciplinary review committee within 30 days of the issuance of the
citation and assessment or denial.
(c) Following a review by the disciplinary review committee, the
appellant shall be notified within 30 days, in writing, by regular
mail, of the committee's decision. At the discretion of the
disciplinary review committee, an appellant may be notified
immediately of the committee's decision once it is made.
(d) If the appellant disagrees with the decision made by the
disciplinary review committee, he or she may request a hearing in
accordance with Chapter 5 (commencing with Section 11500) of Part 1
of Division 3 of Title 2 of the Government Code. A request for a
hearing following a decision by the disciplinary review committee
shall be by written notice to the bureau within 30 days following
notice of the committee's decision.
(e) If the appellant does not request a hearing within 30 days,
the disciplinary review committee's decision shall become final.
(f) Notwithstanding subdivisions (a) to (e), inclusive, when a
hearing is held under this chapter to determine whether an
application for licensure should be granted, the proceedings shall be
conducted in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code, and
the director shall have all of the powers granted therein.
SEC. 5. SEC. 9. Section 7509.1 is
added to the Business and Professions Code, to read:
7509.1. (a) The Governor shall appoint a Collateral Recovery
Disciplinary Review Committee, and may remove any member of the
committee for misconduct, incompetency, or neglect of duty. The
committee shall consist of five members. Of the five members, three
members shall be actively engaged in business as a licensed
repossession agency and two members shall be public members. None of
the public members shall be licensees, certificate holders, or
registrants, or engaged in any business or profession in which any
part of the fees, compensation, or revenue thereof is derived from
any licensee.
(b) The disciplinary review committee shall meet as frequently as
may be required. The members shall be paid per diem pursuant to
Section 103 and shall be reimbursed for actual travel expenses. The
members shall serve for a term of four years.
SEC. 6. SEC. 10. Section 7509.2 is
added to the Business and Professions Code, to read:
7509.2. The Collateral Recovery Disciplinary Review Committee
shall perform the following functions:
(a) Affirm, rescind, or modify all appealed decisions concerning
administrative fines assessed by the director or bureau against
repossession agencies or their employees.
(b) Affirm, rescind, or modify all appealed decisions concerning
denial of licenses issued by the director or bureau, except denials
or suspensions ordered by the director in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code.
SEC. 7. SEC. 11. Section 7509.3 is
added to the Business and Professions Code, to read:
7509.3. The bureau shall provide the Collateral Recovery
Disciplinary Review Committee all evidence used by the bureau in
reaching its decision prior to any review or appeal of that decision
by the committee.
SEC. 12. Section 28 of the Vehicle Code
is amended to read:
28. (a) Whenever possession is taken of any vehicle by or on
behalf of its legal owner under the terms of a security agreement or
lease agreement, the person taking possession shall contact, for the
purpose of providing the information required pursuant to subdivision
(d) within one hour, 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. If, after an
attempt to notify, law
enforcement is unable to receive and record the notification required
pursuant to subdivision (d), the person taking possession of the
vehicle shall continue to attempt notification until the information
required pursuant to subdivision (d) is provided.
(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 only the following information and in the following
order:
(1) The approximate location of the repossession.
(2) The date and approximate time of the repossession.
(3) The vehicle year, make, and model.
(4) The last six digits of the vehicle identification number.
(5) The registered owner as provided on the repossession
assignment.
(6) The 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.
(e) If a vehicle is removed to a tow yard, storage facility, or
impounding yard after possession is taken of the vehicle on behalf of
its legal owner, and the person taking possession has notified the
appropriate city police department, sheriff's department, or campus
police department, as required by this section, and the tow yard,
storage facility, or impounding yard is outside of the jurisdiction
in which the taking of possession occurred, both of the following
shall apply:
(1) The person shall not notify the city police department,
sheriff's department, or campus police department of the jurisdiction
in which the tow yard, storage facility, or impounding yard is
located of the removal.
(2) The tow yard, storage facility, or impounding yard shall
direct the registered owner of the vehicle to the city police
department, sheriff's department, or campus police department of the
jurisdiction in which the taking of possession occurred.
SEC. 8. SEC. 13. 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.