Amended in Senate September 4, 2015

Amended in Senate August 17, 2015

Amended in Senate June 16, 2015

Amended in Senate June 8, 2015

Amended in Assembly April 22, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 281

Introduced by Assembly Member Gallagher

February 11, 2015

An act to amend Sections 7500.1, 7500.3, 7506.9, 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 Sections 28, 14602.6, 14602.9, 22651.07, and 22850.5 of the Vehicle Code, relating to collateral recovery.

LEGISLATIVE COUNSEL’S DIGEST

AB 281, as amended, Gallagher. Collateral recovery.

(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 acts, and authorizes the director to assess administrative fines.

This bill would establish, beginning July 1, 2017, 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 begin delete licensee end delete begin insert licensee, certificate holder, or registrant end insert to contest the assessment of an administrative fine or to appeal a begin delete denial of a license, end delete begin insert denial, revocation, or suspension, end insert 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.

(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 begin insert easily legible end insert electronic screenshot display of that information.

(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, 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. begin insert The act authorizes a licensee, if personal effects or other personal property not covered by a security agreement are to be released to someone other than the debtor, to request written authorization to do so from the debtor. end insert

This begin delete 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 the 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. end delete begin insert bill would instead require a licensee to request that authorization. The bill would require the inventory to be provided to a debtor no later than 96 hours after the recovery of the collateral if a licensee is unable to open a locked compartment that is part of the collateral, with specified exceptions. end insert The bill would prohibit a licensee from selling personal effects and remitting money from the sale to a third begin delete 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 delete begin insert party. end 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.

This bill would begin insert exclude disclosure to an individual to whom the information pertains from these prohibitions, and would end insert 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 terms “registered owner” and “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 would delete the requirement to forward that written notice within one business day.

Under existing law, whenever a peace officer determines, among other things, that a person was driving without a license or while his or her driving privilege was suspended or revoked, the peace officer is authorized to remove and seize that vehicle. Existing law requires the law enforcement agency and the impounding agency, including any storage facility acting on behalf of the law enforcement agency or impounding agency, to comply with specified provisions and precludes liability to the registered owner for the improper release of the vehicle to the legal owner or the legal owner’s agent if the release complies with certain requirements.

Existing law requires the legal owner to indemnify and hold harmless a storage facility from any claims arising out of the release of the vehicle to the legal owner or the legal owner’s agent and from any damage to the vehicle after its release, including the reasonable costs associated with defending any such claims.

This bill would instead require the legal owner of collateral, by operation of law and without requiring further action, to indemnify and hold harmless the state, a law enforcement agency, city, county, city and county, a tow yard, storage facility, or an impounding yard from a claim arising out of the release of the collateral to a licensed repossessor or licensed repossession agency, and from any damage to the collateral after its release, including reasonable attorney’s fees and costs associated with defending a claim, if the collateral was released in compliance, as specified.

Existing law requires any person, defined as a natural person or specified business entity, that charges for towing or storage, or both, except for storage unrelated to a tow, to, among other things, provide, upon request, a copy of the Towing Fees and Access Notice to any owner or operator of a towed or stored vehicle.

This bill would define a person to include the state, a city, county, city and county, law enforcement agency, a tow yard, storage facility, or an impounding yard that imposes such charges. By expanding this requirement to local agencies, the bill would create a state-mandated local program.

begin insert

(8) This bill would incorporate additional changes in Section 14602.9 of the Vehicle Code proposed by SB 541 that would become operative only if SB 541 and this bill are both chaptered and become effective on or before January 1, 2016, and this bill is chaptered last.

end insert begin delete

(8)

end delete

begin insert (9) 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 with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

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, lessee, registered owner, or the agent of
any of them, to 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 substances or articles that are
capable of undergoing combustion or catching fire, or that are
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) “Registered owner” means the individual listed in the records
of the Department of Motor Vehicles, or on a conditional sales
contract, or on a repossession assignment, as the registered owner.

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

(w) “Repossession” means the locating or recovering of
collateral by means of an assignment.

(x) “Secured area” means and includes any fenced and locked
area.

(y) “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.

(z) “Services” means any duty or labor to be rendered by one
person for another.

(aa) “Violent act” means any act that results in bodily harm or
injury to any party involved.

(bb) The amendments made to this section 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 7500.3 of the Business and Professions Code,
as amended by Section 1 of Chapter 476 of the Statutes of 2012,
is amended to read:

7500.3.  

(a) A repossession agency shall not include any of the
following:

(1) Any bank subject to the jurisdiction of the Commissioner
of Financial Institutions of the State of California under Division
1 (commencing with Section 99) of the Financial Code or the
Comptroller of the Currency of the United States.

(2) Any person organized, chartered, or holding a license or
authorization certificate to make loans pursuant to the laws of this
state or the United States who is subject to supervision by any
official or agency of this state or the United States.

(3) An attorney at law in performing his or her duties as an
attorney at law.

(4) The legal owner of collateral that is subject to a security
agreement; or a bona fide employee employed exclusively and
regularly by the legal owner of collateral that is subject to a security
agreement. With regard to collateral subject to registration under
the Vehicle Code, the legal owner shall be the legal owner listed
on the records of the Department of Motor Vehicles or the seller
or lessor named on a valid conditional sales contract or rental or
lease agreement if the seller or lessor is a licensed vehicle dealer
as defined in Section 285 of the Vehicle Code.

(5) An officer or employee of the United States of America, or
of this state or a political subdivision thereof, while the officer or
employee is engaged in the performance of his or her official
duties.

(6) A qualified certificate holder or a registrant when performing
services for, or on behalf of, a licensee.

(7) A dealer, including its bona fide employees, regularly
engaged in the sale of collateral designed primarily for agricultural
use, as defined in subdivision (b) of Section 51201 of the
Government Code, for use in the care of lawns and gardens, or for
use as special construction equipment, as defined in subdivision
(b) of Section 565 of the Vehicle Code, or for use in the production,
generation, storage, or transmission of mechanical or electric
energy, that is subject to a security agreement of the manufacturer
or an affiliate of that manufacturer, provided the following
requirements are met:

(A) The dealer or the secured party maintains adequate records
of all repossessions.

(B) The dealer or the secured party completes a collateral
condition report.

(C) The dealer or the secured party records any odometer or
hour meter readings.

(D) The dealer or the secured party creates records of all
transactions pertaining to the sale of the collateral, including, but
not limited to, bids solicited and received, cash received,
remittances to the seller, and allocation of any moneys not so
remitted to appropriate ledger accounts.

(E) The dealer removes and stores any personal effects that were
taken with the collateral for a minimum of 60 days in a secure
manner, completes an inventory of the personal effects, and notes
the date that inventory is taken.

(F) If personal effects that were taken with the collateral are to
be released to someone other than the debtor, the dealer shall
request written authorization to do so from the debtor. The dealer
may dispose of personal effects after storing them for at least 60
days pursuant to subparagraph (E).

(b) Entities described in paragraph (7) of subdivision (a), or a
debtor, lienholder, lessor or, lessee, registered owner, or an agent
thereof shall not by any means, directly or indirectly, expressed
or implied, instruct, coerce, or attempt to coerce another person
to violate any law, regulation, or rule regarding the recovery of
collateral, including, but not limited to, the provisions of this
chapter or Section 9609 of the Commercial Code.

(c) This section shall remain in effect only until January 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2018, deletes or extends that date.

SEC. 3.  

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 begin insert easily legible end insert 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 begin insert easily legible end insert electronic screenshot of that
information, and a valid picture identification.

SEC. 4.  

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, cleaning, or detailing shall not
be performed and shall not be charged to the legal owner.

SEC. 5.  

Section 7507.9 of the Business and Professions Code
is amended to read:

begin delete

7507.9.  

Except as otherwise provided in this section, personal
effects

end delete

begin insert

begin insert 7507.9. end insert   

end insert

begin insert Personal effects end insert shall be removed from the collateral,
including any personal effect that is mounted but detachable from
the collateral by a release mechanism. A begin delete licensee shall make a
good faith effort to inventory the personal 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
owner’s expense to enable the licensee to open and inventory the
contents of the compartment in accordance with this section. The end delete begin insert end insert
begin insert complete and accurate inventory of the personal effects shall be
made, and the end insert 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
begin delete date and the time and the end delete begin insert date, time, and end insert 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.

begin delete

(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.

end delete begin insert

(4) The licensee is unable to open a locked compartment that
is part of the collateral, the available 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.

end insert

(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)  begin delete (1) end delete begin delete   end delete 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.

begin delete

(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.

end delete begin insert

(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 shall request written
authorization to do so from the debtor.

end insert begin delete

(i) (1)

end delete

begin insert (j) end insert  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.

begin delete

(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)

end delete

begin insert (k) end insert  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.

begin delete

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

end delete

SEC. 6.  

Section 7507.115 of the Business and Professions
Code is amended to read:

7507.115.  

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

(b) (1) Notwithstanding subdivision (a), a licensee may
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 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. 7.  

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,
lessee, registered owner, 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, lessee, registered owner, or an
agent of any of them, and is entitled to indemnity from the legal
owner, debtor, lienholder, lessor, lessee, or registered owner 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, lessee, registered
owner, 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, lessee, registered owner, 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, lessee, registered
owner, 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, lessee, registered owner, 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. 8.  

Section 7508.7 of the Business and Professions Code
is amended to read:

7508.7.  

(a) Except as otherwise provided by law, a
repossession agency shall not disclose to the public, any begin delete person, end delete
begin insert person other than the individual to whom the information pertains, end insert
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 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. 9.  

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

7509.  

(a)  begin insert (1) end insert begin insert   end insert A begin delete person licensed with the bureau end delete begin insert licensee,
certificate holder, or registrant end insert 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 begin delete denial of a license, end delete begin insert denial,
revocation, or suspension, end insert unless the begin delete denial end delete begin insert denial, revocation, or
suspension end insert 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.

begin delete

(b)

end delete

begin insert (2) end insert  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 begin delete denial. end delete begin insert denial, revocation, or
suspension. end insert

begin delete

(c)

end delete

begin insert (3) end insert  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. begin delete At the discretion of the
disciplinary review committee, an appellant may be notified
immediately of the committee’s decision once it is made. end delete

begin delete

(d)

end delete

begin insert (4) end insert  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
begin delete following notice end delete of the committee’s decision.

begin delete

(e)

end delete

begin insert (5) end insert  If the appellant does not request a hearing within 30 days,
the disciplinary review committee’s decision shall become final.

begin delete

(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.

end delete begin insert

(b) (1) A licensee, certificate holder, or registrant 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
if he or she contests the assessment of an administrative fine, or
to appeal a denial, revocation, or suspension. A hearing may also
be requested if the appellant disagrees with the decision made by
the disciplinary review committee.

end insert begin insert

(2) A request for a hearing shall be by written notice to the
bureau within 30 days of the issuance of the decision by the
disciplinary review committee. A hearing pursuant to this
subdivision shall be available only after a review by the
disciplinary review committee.

end insert begin insert

(c) This section shall become operative on July 1, 2017.

end insert

SEC. 10.  

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

7509.1.  

(a) On or before July 1, 2017, 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 begin delete as end delete begin insert every 60
days or more or less end insert 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 begin delete serve end delete
begin insert be appointed end insert for a term of four years.

begin insert

(c) This section shall become operative on July 1, 2017.

end insert

SEC. 11.  

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

7509.2.  

(a) The Collateral Recovery Disciplinary Review
Committee shall perform the following functions:

(1) Affirm, rescind, or modify all begin delete appealed end delete decisions concerning
administrative fines assessed by the director or bureau against
repossession agencies or their begin delete employees. end delete begin insert employees, that are
appealed to the committee. end insert

(2) Affirm, rescind, or modify all begin delete appealed end delete 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 begin delete Code. end delete begin insert Code, that are appealed to the
committee. end insert

begin insert

(b) The Collateral Recovery Disciplinary Review Committee
may grant a probationary license, certificate, registration, or
permit with respect to the appealed decisions described in
subdivision (a).

end insert begin delete

(b)

end delete

begin insert (c) end insert  This section shall become operative on July 1, 2017.

SEC. 12.  

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

7509.3.  

(a) 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.

(b) This section shall become operative on July 1, 2017.

SEC. 13.  

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. 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.

SEC. 14.  

Section 14602.6 of the Vehicle Code is amended to
read:

14602.6.  

(a) (1) Whenever a peace officer determines that a
person was driving a vehicle while his or her driving privilege was
suspended or revoked, driving a vehicle while his or her driving
privilege is restricted pursuant to Section 13352 or 23575 and the
vehicle is not equipped with a functioning, certified interlock
device, or driving a vehicle without ever having been issued a
driver’s license, the peace officer may either immediately arrest
that person and cause the removal and seizure of that vehicle or,
if the vehicle is involved in a traffic collision, cause the removal
and seizure of the vehicle without the necessity of arresting the
person in accordance with Chapter 10 (commencing with Section
22650) of Division 11. A vehicle so impounded shall be impounded
for 30 days.

(2) The impounding agency, within two working days of
impoundment, shall send a notice by certified mail, return receipt
requested, to the legal owner of the vehicle, at the address obtained
from the department, informing the owner that the vehicle has
been impounded. Failure to notify the legal owner within two
working days shall prohibit the impounding agency from charging
for more than 15 days’ impoundment when the legal owner
redeems the impounded vehicle. The impounding agency shall
maintain a published telephone number that provides information
24 hours a day regarding the impoundment of vehicles and the
rights of a registered owner to request a hearing. The law
enforcement agency shall be open to issue a release to the registered
owner or legal owner, or the agent of either, whenever the agency
is open to serve the public for nonemergency business.

(b) The registered and legal owner of a vehicle that is removed
and seized under subdivision (a) or their agents shall be provided
the opportunity for a storage hearing to determine the validity of,
or consider any mitigating circumstances attendant to, the storage,
in accordance with Section 22852.

(c) Any period in which a vehicle is subjected to storage under
this section shall be included as part of the period of impoundment
ordered by the court under subdivision (a) of Section 14602.5.

(d) (1) An impounding agency shall release a vehicle to the
registered owner or his or her agent prior to the end of 30 days’
impoundment under any of the following circumstances:

(A) When the vehicle is a stolen vehicle.

(B) When the vehicle is subject to bailment and is driven by an
unlicensed employee of a business establishment, including a
parking service or repair garage.

(C) When the license of the driver was suspended or revoked
for an offense other than those included in Article 2 (commencing
with Section 13200) of Chapter 2 of Division 6 or Article 3
(commencing with Section 13350) of Chapter 2 of Division 6.

(D) When the vehicle was seized under this section for an
offense that does not authorize the seizure of the vehicle.

(E) When the driver reinstates his or her driver’s license or
acquires a driver’s license and proper insurance.

(2) No vehicle shall be released pursuant to this subdivision
without presentation of the registered owner’s or agent’s currently
valid driver’s license to operate the vehicle and proof of current
vehicle registration, or upon order of a court.

(e) The registered owner or his or her agent is responsible for
all towing and storage charges related to the impoundment, and
any administrative charges authorized under Section 22850.5.

(f) A vehicle removed and seized under subdivision (a) shall be
released to the legal owner of the vehicle or the legal owner’s agent
prior to the end of 30 days’ impoundment if all of the following
conditions are met:

(1) The legal owner is a motor vehicle dealer, bank, credit union,
acceptance corporation, or other licensed financial institution
legally operating in this state or is another person, not the registered
owner, holding a security interest in the vehicle.

(2) (A) The legal owner or the legal owner’s agent pays all
towing and storage fees related to the seizure of the vehicle. No
lien sale processing fees shall be charged to the legal owner who
redeems the vehicle prior to the 15th day of impoundment. Neither
the impounding authority nor any person having possession of the
vehicle shall collect from the legal owner of the type specified in
paragraph (1), or the legal owner’s agent any administrative charges
imposed pursuant to Section 22850.5 unless the legal owner
voluntarily requested a poststorage hearing.

(B) A person operating or in charge of a storage facility where
vehicles are stored pursuant to this section shall accept a valid
bank credit card or cash for payment of towing, storage, and related
fees by a legal or registered owner or the owner’s agent claiming
the vehicle. A credit card shall be in the name of the person
presenting the card. “Credit card” means “credit card” as defined
in subdivision (a) of Section 1747.02 of the Civil Code, except,
for the purposes of this section, credit card does not include a credit
card issued by a retail seller.

(C) A person operating or in charge of a storage facility
described in subparagraph (B) who violates subparagraph (B) shall
be civilly liable to the owner of the vehicle or to the person who
tendered the fees for four times the amount of the towing, storage,
and related fees, but not to exceed five hundred dollars ($500).

(D) A person operating or in charge of a storage facility
described in subparagraph (B) shall have sufficient funds on the
premises of the primary storage facility during normal business
hours to accommodate, and make change in, a reasonable monetary
transaction.

(E) Credit charges for towing and storage services shall comply
with Section 1748.1 of the Civil Code. Law enforcement agencies
may include the costs of providing for payment by credit when
making agreements with towing companies on rates.

(3) The legal owner or the legal owner’s agent presents a copy
of the assignment, as defined in subdivision (b) of Section 7500.1
of the Business and Professions Code; a release from the one
responsible governmental agency, only if required by the agency;
a government-issued photographic identification card; and any
one of the following, as determined by the legal owner or the legal
owner’s agent: a certificate of repossession for the vehicle, a
security agreement for the vehicle, or title, whether paper or
electronic, showing proof of legal ownership for the vehicle. Any
documents presented may be originals, photocopies, or facsimile
copies, or may be transmitted electronically. The law enforcement
agency, impounding agency, or any other governmental agency,
or any person acting on behalf of those agencies, shall not require
any documents to be notarized. The law enforcement agency,
impounding agency, or any person acting on behalf of those
agencies may require the agent of the legal owner to produce a
photocopy or facsimile copy of its repossession agency license or
registration issued pursuant to Chapter 11 (commencing with
Section 7500) of Division 3 of the Business and Professions Code,
or to demonstrate, to the satisfaction of the law enforcement
agency, impounding agency, or any person acting on behalf of
those agencies, that the agent is exempt from licensure pursuant
to Section 7500.2 or 7500.3 of the Business and Professions Code.

No administrative costs authorized under subdivision (a) of
Section 22850.5 shall be charged to the legal owner of the type
specified in paragraph (1), who redeems the vehicle unless the
legal owner voluntarily requests a poststorage hearing. No city,
county, city and county, or state agency shall require a legal owner
or a legal owner’s agent to request a poststorage hearing as a
requirement for release of the vehicle to the legal owner or the
legal owner’s agent. The law enforcement agency, impounding
agency, or other governmental agency, or any person acting on
behalf of those agencies, shall not require any documents other
than those specified in this paragraph. The law enforcement agency,
impounding agency, or other governmental agency, or any person
acting on behalf of those agencies, shall not require any documents
to be notarized. The legal owner or the legal owner’s agent shall
be given a copy of any documents he or she is required to sign,
except for a vehicle evidentiary hold logbook. The law enforcement
agency, impounding agency, or any person acting on behalf of
those agencies, or any person in possession of the vehicle, may
photocopy and retain the copies of any documents presented by
the legal owner or legal owner’s agent.

(4) A failure by a storage facility to comply with any applicable
conditions set forth in this subdivision shall not affect the right of
the legal owner or the legal owner’s agent to retrieve the vehicle,
provided all conditions required of the legal owner or legal owner’s
agent under this subdivision are satisfied.

(g) (1) A legal owner or the legal owner’s agent that obtains
release of the vehicle pursuant to subdivision (f) shall not release
the vehicle to the registered owner of the vehicle, or the person
who was listed as the registered owner when the vehicle was
impounded, or any agents of the registered owner, unless the
registered owner is a rental car agency, until after the termination
of the 30-day impoundment period.

(2) The legal owner or the legal owner’s agent shall not
relinquish the vehicle to the registered owner or the person who
was listed as the registered owner when the vehicle was impounded
until the registered owner or that owner’s agent presents his or her
valid driver’s license or valid temporary driver’s license to the
legal owner or the legal owner’s agent. The legal owner or the
legal owner’s agent or the person in possession of the vehicle shall
make every reasonable effort to ensure that the license presented
is valid and possession of the vehicle will not be given to the driver
who was involved in the original impoundment proceeding until
the expiration of the impoundment period.

(3) Prior to relinquishing the vehicle, the legal owner may
require the registered owner to pay all towing and storage charges
related to the impoundment and any administrative charges
authorized under Section 22850.5 that were incurred by the legal
owner in connection with obtaining custody of the vehicle.

(4) Any legal owner who knowingly releases or causes the
release of a vehicle to a registered owner or the person in
possession of the vehicle at the time of the impoundment or any
agent of the registered owner in violation of this subdivision shall
be guilty of a misdemeanor and subject to a fine in the amount of
two thousand dollars ($2,000) in addition to any other penalties
established by law.

(5) The legal owner, registered owner, or person in possession
of the vehicle shall not change or attempt to change the name of
the legal owner or the registered owner on the records of the
department until the vehicle is released from the impoundment.

(h) (1) A vehicle removed and seized under subdivision (a)
shall be released to a rental car agency prior to the end of 30 days’
impoundment if the agency is either the legal owner or registered
owner of the vehicle and the agency pays all towing and storage
fees related to the seizure of the vehicle.

(2) The owner of a rental vehicle that was seized under this
section may continue to rent the vehicle upon recovery of the
vehicle. However, the rental car agency may not rent another
vehicle to the driver of the vehicle that was seized until 30 days
after the date that the vehicle was seized.

(3) The rental car agency may require the person to whom the
vehicle was rented to pay all towing and storage charges related
to the impoundment and any administrative charges authorized
under Section 22850.5 that were incurred by the rental car agency
in connection with obtaining custody of the vehicle.

(i) Notwithstanding any other provision of this section, the
registered owner and not the legal owner shall remain responsible
for any towing and storage charges related to the impoundment,
any administrative charges authorized under Section 22850.5, and
any parking fines, penalties, and administrative fees incurred by
the registered owner.

(j) (1) The law enforcement agency and the impounding agency,
including any storage facility acting on behalf of the law
enforcement agency or impounding agency, shall comply with this
section and shall not be liable to the registered owner for the
improper release of the vehicle to the legal owner or the legal
owner’s agent provided the release complies with the provisions
of this section. A law enforcement agency shall not refuse to issue
a release to a legal owner or the agent of a legal owner on the
grounds that it previously issued a release.

(2) (A) The legal owner of collateral shall, by operation of law
and without requiring further action, indemnify and hold harmless
a law enforcement agency, city, county, city and county, the state,
a tow yard, storage facility, or an impounding yard from a claim
arising out of the release of the collateral to a licensed repossessor
or licensed repossession agency, and from any damage to the
collateral after its release, including reasonable attorney’s fees and
costs associated with defending a claim, if the collateral was
released in compliance with this section.

(B) This subdivision shall apply only when collateral is released
to a licensed repossessor, licensed repossession agency, or its
officers or employees pursuant to Chapter 11 (commencing with
Section 7500) of Division 3 of the Business and Professions Code.

SEC. 15.  

Section 14602.9 of the Vehicle Code is amended to
read:

14602.9.  

(a) An officer of the Department of the California
Highway Patrol may impound a bus of a charter-party carrier for
30 days if the officer determines that any of the following
violations occurred while the bus driver was operating the bus of
a charter-party carrier:

(1) The driver was operating the bus of a charter-party carrier
when the charter-party carrier did not have a permit or certificate
issued by the Public Utilities Commission, pursuant to Section
5375 of the Public Utilities Code.

(2) The driver was operating the bus of a charter-party carrier
when the charter-party carrier was operating the bus with a
suspended permit or certificate from the Public Utilities
Commission.

(3) The driver was operating the bus of a charter-party carrier
without having a current and valid driver’s license of the proper
class, a passenger vehicle endorsement, or the required certificate.

(b) Within two working days after impoundment, the
impounding agency shall send a notice by certified mail, return
receipt requested, to the legal owner of the vehicle, at the address
obtained from the department, informing the owner that the vehicle
has been impounded. Failure to notify the legal owner within two
working days shall prohibit the impounding agency from charging
for more than 15 day’s impoundment when the legal owner
redeems the impounded vehicle. The impounding agency shall
maintain a published telephone number that provides information
24 hours a day regarding the impoundment of vehicles and the
rights of a registered owner to request a hearing.

(c) The registered and legal owner of a vehicle that is removed
and seized under subdivision (a) or his or her agent shall be
provided the opportunity for a storage hearing to determine the
validity of, or consider any mitigating circumstances attendant to,
the storage, in accordance with Section 22852.

(d) (1) The impounding agency shall release the vehicle to the
registered owner or his or her agent prior to the end of the
impoundment period under any of the following circumstances:

(A) When the vehicle is a stolen vehicle.

(B) When the vehicle is subject to bailment and is driven by an
unlicensed employee of a business establishment, including a
parking service or repair garage.

(C) When the driver of the vehicle is not the sole registered
owner of the vehicle and the vehicle is being released to another
registered owner of the vehicle who agrees not to allow the driver
to use the vehicle until after the end of the impoundment period
and the charter-party carrier has been issued a valid permit from
the Public Utilities Commission, pursuant to Section 5375 of the
Public Utilities Code.

(2) A vehicle shall not be released pursuant to this subdivision
without presentation of the registered owner’s or agent’s currently
valid driver’s license to operate the vehicle and proof of current
vehicle registration, or upon order of a court.

(e) The registered owner or his or her agent is responsible for
all towing and storage charges related to the impoundment, and
any administrative charges authorized under Section 22850.5.

(f) A vehicle removed and seized under subdivision (a) shall be
released to the legal owner of the vehicle or the legal owner’s agent
prior to the end of the impoundment period if all of the following
conditions are met:

(1) The legal owner is a motor vehicle dealer, bank, credit union,
acceptance corporation, or other licensed financial institution
legally operating in this state, or is another person who is not the
registered owner and holds a security interest in the vehicle.

(2) The legal owner or the legal owner’s agent pays all towing
and storage fees related to the seizure of the vehicle. A lien sale
processing fee shall not be charged to the legal owner who redeems
the vehicle prior to the 10th day of impoundment. The impounding
authority or any person having possession of the vehicle shall not
collect from the legal owner of the type specified in paragraph (1),
or the legal owner’s agent, any administrative charges imposed
pursuant to Section 22850.5 unless the legal owner voluntarily
requested a poststorage hearing.

(3) (A) The legal owner or the legal owner’s agent presents
either lawful foreclosure documents or an affidavit of repossession
for the vehicle, and a security agreement or title showing proof of
legal ownership for the vehicle. All presented documents may be
originals, photocopies, or facsimile copies, or may be transmitted
electronically. The impounding agency shall not require a
document to be notarized. The impounding agency may require
the agent of the legal owner to produce a photocopy or facsimile
copy of its repossession agency license or registration issued
pursuant to Chapter 11 (commencing with Section 7500) of
Division 3 of the Business and Professions Code, or to demonstrate,
to the satisfaction of the impounding agency, that the agent is
exempt from licensure pursuant to Section 7500.2 or 7500.3 of the
Business and Professions Code.

(B) Administrative costs authorized under subdivision (a) of
Section 22850.5 shall not be charged to the legal owner of the type
specified in paragraph (1), who redeems the vehicle unless the
legal owner voluntarily requests a poststorage hearing. A city,
county, or state agency shall not require a legal owner or a legal
owner’s agent to request a poststorage hearing as a requirement
for release of the vehicle to the legal owner or the legal owner’s
agent. The impounding agency shall not require any documents
other than those specified in this paragraph. The impounding
agency shall not require any documents to be notarized.

(C) As used in this paragraph, “foreclosure documents” means
an “assignment” as that term is defined in subdivision (b) of
Section 7500.1 of the Business and Professions Code.

(g) (1) A legal owner or the legal owner’s agent who obtains
release of the vehicle pursuant to subdivision (f) may not release
the vehicle to the registered owner of the vehicle or any agents of
the registered owner, unless the registered owner is a rental car
agency, until after the termination of the impoundment period.

(2) The legal owner or the legal owner’s agent shall not
relinquish the vehicle to the registered owner until the registered
owner or that owner’s agent presents his or her valid driver’s
license or valid temporary driver’s license to the legal owner or
the legal owner’s agent. The legal owner or the legal owner’s agent
shall make every reasonable effort to ensure that the license
presented is valid.

(3) Prior to relinquishing the vehicle, the legal owner may
require the registered owner to pay all towing and storage charges
related to the impoundment and any administrative charges
authorized under Section 22850.5 that were incurred by the legal
owner in connection with obtaining custody of the vehicle.

(h) (1) A vehicle removed and seized under subdivision (a)
shall be released to a rental agency prior to the end of the
impoundment period if the agency is either the legal owner or
registered owner of the vehicle and the agency pays all towing and
storage fees related to the seizure of the vehicle.

(2) The owner of a rental vehicle that was seized under this
section may continue to rent the vehicle upon recovery of the
vehicle. However, the rental agency shall not rent another vehicle
to the driver of the vehicle that was seized until the impoundment
period has expired.

(3) The rental agency may require the person to whom the
vehicle was rented to pay all towing and storage charges related
to the impoundment and any administrative charges authorized
under Section 22850.5 that were incurred by the rental agency in
connection with obtaining custody of the vehicle.

(i) Notwithstanding any other provision of this section, the
registered owner, and not the legal owner, shall remain responsible
for any towing and storage charges related to the impoundment,
any administrative charges authorized under Section 22850.5, and
any parking fines, penalties, and administrative fees incurred by
the registered owner.

(j) The impounding agency is not liable to the registered owner
for the improper release of the vehicle to the legal owner or the
legal owner’s agent provided the release complies with this section.

(k) For the purposes of this section, a “bus” means a bus as
defined by Section 233 or a tour bus as defined by Section 612.

(l) For the purposes of this section, a “charter-party carrier”
means a charter-party carrier as defined by Section 5360 of the
Public Utilities Code.

begin insert

begin insert SEC. 15.5. end insert   

end insert

begin insert Section 14602.9 of the end insert begin insert Vehicle Code end insert begin insert is amended to
read: end insert

begin delete

14602.9.  

(a) An officer of the Department of the California
Highway Patrol

end delete

begin insert

begin insert 14602.9. end insert   

end insert begin insert

(a) For purposes of this section, “peace officer”
means a person designated as a peace officer pursuant to Chapter
4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal
Code.

end insert

begin insert (b) end insert begin insert   end insert begin insert A peace officer end insert may impound a bus begin insert or limousine end insert of a
charter-party carrier for 30 days if the officer determines that any
of the following violations occurred while the begin delete bus end delete driver was
operating the bus begin insert or limousine end insert of begin delete a end delete begin insert the end insert charter-party carrier:

(1) The driver was operating the bus begin insert or limousine end insert of a
charter-party carrier when the charter-party carrier did not have a
permit or certificate issued by the Public Utilities Commission,
pursuant to Section 5375 of the Public Utilities Code.

(2) The driver was operating the bus begin insert or limousine end insert of a
charter-party carrier when the charter-party carrier was operating
begin delete the bus end delete with a suspended permit or certificate from the Public
Utilities Commission.

(3) The driver was operating the bus begin insert or limousine end insert of a
charter-party carrier without having a current and valid driver’s
license of the proper class, a passenger vehicle endorsement, or
the required certificate.

begin insert

(c) A peace officer may impound a bus or limousine belonging
to a passenger stage corporation for 30 days if the officer
determines any of the following violations occurred while the
driver was operating the bus or limousine:

end insert begin insert

(1) The driver was operating the bus or limousine when the
passenger stage corporation did not have a certificate of public
convenience and necessity issued by the Public Utilities
Commission as required pursuant to Article 2 (commencing with
Section 1031) of Chapter 5 of Part 1 of Division 1 of the Public
Utilities Code.

end insert begin insert

(2) The driver was operating the bus or limousine when the
operating rights or certificate of public convenience and necessity
of a passenger stage corporation was suspended, canceled, or
revoked pursuant to Section 1033.5, 1033.7, or 1045 of the Public
Utilities Code.

end insert begin insert

(3) The driver was operating the bus or limousine without having
a current and valid driver’s license of the proper class.

end insert begin delete

(b)

end delete

begin insert (d) end insert  Within two working days after impoundment, the
impounding agency shall send a notice by certified mail, return
receipt requested, to the legal owner of the vehicle, at the address
obtained from the department, informing the owner that the vehicle
has been impounded. Failure to notify the legal owner within two
working days shall prohibit the impounding agency from charging
for more than 15 day’s impoundment when the legal owner
redeems the impounded vehicle. The impounding agency shall
maintain a published telephone number that provides information
24 hours a day regarding the impoundment of vehicles and the
rights of a registered owner to request a hearing.

begin delete

(c)

end delete

begin insert (e) end insert  The registered and legal owner of a vehicle that is removed
and seized under subdivision begin delete (a) end delete begin insert (b) or (c) end insert or his or her agent shall
be provided the opportunity for a storage hearing to determine the
validity of, or consider any mitigating circumstances attendant to,
the storage, in accordance with Section 22852.

begin delete

(d)

end delete

begin insert (f) end insert  (1) The impounding agency shall release the vehicle to the
registered owner or his or her agent prior to the end of the
impoundment period under any of the following circumstances:

(A) When the vehicle is a stolen vehicle.

(B) When the vehicle is subject to bailment and is driven by an
unlicensed employee of a business establishment, including a
parking service or repair garage.

(C)  begin delete When end delete begin insert When, for a charter-party carrier of passengers, end insert the
driver of the vehicle is not the sole registered owner of the vehicle
and the vehicle is being released to another registered owner of
the vehicle who agrees not to allow the driver to use the vehicle
until after the end of the impoundment period and the charter-party
carrier has been issued a valid permit from the Public Utilities
Commission, pursuant to Section 5375 of the Public Utilities Code.

begin insert

(D) When, for a passenger stage corporation, the driver of the
vehicle is not the sole registered owner of the vehicle and the
vehicle is being released to another registered owner of the vehicle
who agrees not to allow the driver to use the vehicle until after
the end of the impoundment period and the passenger stage
corporation has been issued a valid certificate of public
convenience and necessity by the Public Utilities Commission,
pursuant to Article 2 (commencing with Section 1031) of Chapter
5 of Part 1 of Division 1 of the Public Utilities Code.

end insert

(2) A vehicle shall not be released pursuant to this subdivision
without presentation of the registered owner’s or agent’s currently
valid driver’s license to operate the vehicle and proof of current
vehicle registration, or upon order of a court.

begin delete

(e)

end delete

begin insert (g) end insert  The registered owner or his or her agent is responsible for
all towing and storage charges related to the impoundment, and
any administrative charges authorized under Section 22850.5.

begin delete

(f)

end delete

begin insert (h) end insert  A vehicle removed and seized under subdivision begin delete (a) end delete begin insert (b) or
(c) end insert shall be released to the legal owner of the vehicle or the legal
owner’s agent prior to the end of the impoundment period if all of
the following conditions are met:

(1) The legal owner is a motor vehicle dealer, bank, credit union,
acceptance corporation, or other licensed financial institution
legally operating in this state, or is another person who is not the
registered owner and holds a security interest in the vehicle.

(2) The legal owner or the legal owner’s agent pays all towing
and storage fees related to the seizure of the vehicle. A lien sale
processing fee shall not be charged to the legal owner who redeems
the vehicle prior to the 10th day of impoundment. The impounding
authority or any person having possession of the vehicle shall not
collect from the legal owner of the type specified in paragraph (1),
or the legal owner’s agent, any administrative charges imposed
pursuant to Section 22850.5 unless the legal owner voluntarily
requested a poststorage hearing.

(3) (A) The legal owner or the legal owner’s agent presents
either lawful foreclosure documents or an affidavit of repossession
for the vehicle, and a security agreement or title showing proof of
legal ownership for the vehicle. All presented documents may be
originals, photocopies, or facsimile copies, or may be transmitted
electronically. The impounding agency shall not require a
document to be notarized. The impounding agency may require
the agent of the legal owner to produce a photocopy or facsimile
copy of its repossession agency license or registration issued
pursuant to Chapter 11 (commencing with Section 7500) of
Division 3 of the Business and Professions Code, or to demonstrate,
to the satisfaction of the impounding agency, that the agent is
exempt from licensure pursuant to Section 7500.2 or 7500.3 of the
Business and Professions Code.

(B) Administrative costs authorized under subdivision (a) of
Section 22850.5 shall not be charged to the legal owner of the type
specified in paragraph (1), who redeems the vehicle unless the
legal owner voluntarily requests a poststorage hearing. A city,
county, or state agency shall not require a legal owner or a legal
owner’s agent to request a poststorage hearing as a requirement
for release of the vehicle to the legal owner or the legal owner’s
agent. The impounding agency shall not require any documents
other than those specified in this paragraph. The impounding
agency shall not require any documents to be notarized.

(C) As used in this paragraph, “foreclosure documents” means
an “assignment” as that term is defined in subdivision begin delete (o) end delete begin insert (b) end insert of
Section 7500.1 of the Business and Professions Code.

begin delete

(g)

end delete

begin insert (i) end insert  (1) A legal owner or the legal owner’s agent who obtains
release of the vehicle pursuant to subdivision begin delete (f) end delete begin insert (h) end insert may not release
the vehicle to the registered owner of the vehicle or any agents of
the registered owner, unless the registered owner is a rental car
agency, until after the termination of the impoundment period.

(2) The legal owner or the legal owner’s agent shall not
relinquish the vehicle to the registered owner until the registered
owner or that owner’s agent presents his or her valid driver’s
license or valid temporary driver’s license to the legal owner or
the legal owner’s agent. The legal owner or the legal owner’s agent
shall make every reasonable effort to ensure that the license
presented is valid.

(3) Prior to relinquishing the vehicle, the legal owner may
require the registered owner to pay all towing and storage charges
related to the impoundment and any administrative charges
authorized under Section 22850.5 that were incurred by the legal
owner in connection with obtaining custody of the vehicle.

begin delete

(h)

end delete

begin insert (j) end insert  (1) A vehicle removed and seized under subdivision begin delete (a) end delete begin insert (b)
or (c) end insert shall be released to a rental agency prior to the end of the
impoundment period if the agency is either the legal owner or
registered owner of the vehicle and the agency pays all towing and
storage fees related to the seizure of the vehicle.

(2) The owner of a rental vehicle that was seized under this
section may continue to rent the vehicle upon recovery of the
vehicle. However, the rental agency shall not rent another vehicle
to the driver of the vehicle that was seized until the impoundment
period has expired.

(3) The rental agency may require the person to whom the
vehicle was rented to pay all towing and storage charges related
to the impoundment and any administrative charges authorized
under Section 22850.5 that were incurred by the rental agency in
connection with obtaining custody of the vehicle.

begin delete

(i)

end delete

begin insert (k) end insert  Notwithstanding any other provision of this section, the
registered owner, and not the legal owner, shall remain responsible
for any towing and storage charges related to the impoundment,
any administrative charges authorized under Section 22850.5, and
any parking fines, penalties, and administrative fees incurred by
the registered owner.

begin delete

(j)

end delete

begin insert (l) end insert  The impounding agency is not liable to the registered owner
for the improper release of the vehicle to the legal owner or the
legal owner’s agent provided the release complies with this section.

begin delete

(k) For the purposes of this section, a “bus” means a bus as
defined by Section 233 or a tour bus as defined by Section 612.

end delete begin insert

(m) This section does not authorize the impoundment of privately
owned personal vehicles that are not common carriers nor the
impoundment of vehicles used in transportation for compensation
by charter-party carriers that are not required to carry individual
permits.

end insert begin delete

(l)

end delete

begin insert (n) end insert  For the purposes of this section, a “charter-party carrier”
means a charter-party carrier begin insert of passengers end insert as defined by Section
5360 of the Public Utilities Code.

begin insert

(o) For purposes of this section, a “passenger stage
corporation” means a passenger stage corporation as defined by
Section 226 of the Public Utilities Code.

end insert

SEC. 16.  

Section 22651.07 of the Vehicle Code is amended to
read:

22651.07.  

(a) A person, including a law enforcement agency,
city, county, city and county, the state, a tow yard, storage facility,
or an impounding yard, that charges for towing or storage, or both,
except for storage unrelated to a tow, shall do all of the following:

(1) (A) Except as provided in subparagraph (B), post in the
office area of the storage facility, in plain view of the public, the
Towing Fees and Access Notice and have copies readily available
to the public.

(B) An automotive repair dealer, registered pursuant to Article
3 (commencing with Section 9884) of Chapter 20.3 of Division 3
of the Business and Professions Code, that does not provide towing
services is exempt from the requirement to post the Towing Fees
and Access Notice in the office area.

(2) Provide, upon request, a copy of the Towing Fees and Access
Notice to any owner or operator of a towed or stored vehicle.

(3) Provide a distinct notice on an itemized invoice for any
towing or storage, or both, charges stating: “Upon request, you
are entitled to receive a copy of the Towing Fees and Access
Notice.” This notice shall be contained within a bordered text box,
printed in no less than 10-point type.

(b) Prior to receiving payment for any towing, recovery, or
storage-related fees, a person that charges for towing or storage,
or both, shall provide an itemized invoice of actual charges to the
vehicle owner or his or her agent. If an automotive repair dealer,
registered pursuant to Article 3 (commencing with Section 9884)
of Chapter 20.3 of Division 3 of the Business and Professions
Code, did not provide the tow, and passes along, from the tower
to the consumer, any of the information required on the itemized
invoice, pursuant to subdivision (e), the automotive repair dealer
shall not be responsible for the accuracy of those items of
information that remain unaltered.

(c) Prior to paying any towing, recovery, or storage-related fees,
a vehicle owner or his or her agent or a licensed repossessor shall
have the right to all of the following:

(1) Receive his or her personal property, at no charge, during
normal business hours. Normal business hours for releasing
collateral and personal property are Monday through Friday from
8:00 a.m. to 5:00 p.m., inclusive, except state holidays.

(2) Retrieve his or her vehicle during the first 72 hours of storage
and not pay a lien fee.

(3) Request a copy of the Towing Fees and Access Notice.

(4) Be permitted to pay by cash or a valid bank credit card.
Credit charges for towing and storage services shall comply with
Section 1748.1 of the Civil Code. Law enforcement agencies may
include the costs of providing for payment by credit when agreeing
with a towing or storage provider on rates.

(d) The Towing Fees and Access Notice shall be a standardized
document plainly printed in no less that 10-point type. A person
may distribute the form using its own letterhead, but the language
of the Towing Fees and Access Notice shall read as follows:

 

Towing Fees and Access Notice

Note: The following information is intended to serve as a general summary of some of the laws that provide vehicle owners certain rights when their vehicle is towed. It is not intended to summarize all of the laws that may be applicable nor is it intended to fully and completely state the entire law in any area listed. Please review the applicable California code for a definitive statement of the law in your particular situation.

How much can a towing company charge?

Rates for public tows and storage are generally established by an agreement between the law enforcement agency requesting the tow and the towing company (to confirm the approved rates, you may contact the law enforcement agency that initiated the tow; additionally, these rates are required to be posted at the storage facility).

Rates for private property tows and storage cannot exceed the approved rates for the law enforcement agency that has primary jurisdiction for the property from which the vehicle was removed or the towing company’s approved CHP rate.

Rates for owner’s request tows and storage are generally established by mutual agreement between the requestor and the towing company, but may be dictated by agreements established between the requestor’s motor club and motor club service provider.

Where can you complain about a towing company?

For public tows: Contact the law enforcement agency initiating the tow.

Your rights if your vehicle is towed:

Generally, prior to paying any towing and storage-related fees you have the right to:

● Receive an itemized invoice of actual charges.

● Receive your personal property, at no charge, during normal business hours.

● Retrieve your vehicle during the first 72 hours of storage and not pay a lien fee.

● Request a copy of the Towing Fees and Access Notice.

● Pay by cash or valid bank credit card.

● Inspect your vehicle or have your insurance carrier inspect your vehicle at the storage facility, at no charge, during normal business hours.

You have the right to have the vehicle released to you upon (1) payment of all towing and storage-related fees, (2) presentation of a valid photo identification, (3) presentation of reliable documentation showing that you are the owner of the vehicle or that the owner has authorized you to take possession of the vehicle, and (4), if applicable, presentation of any required police or law enforcement release documents.

Prior to your vehicle being repaired:

● You have the right to choose the repair facility and to have no repairs made to your vehicle unless you authorize them in writing.

● Any authorization you sign for towing and any authorization you sign for repair must be on separate forms.

What if I do not pay the towing and storage-related fees or abandon my vehicle at the towing company?

Pursuant to Sections 3068.1 to 3074, inclusive, of the Civil Code, a towing company may sell your vehicle and any moneys received will be applied to towing and storage-related fees that have accumulated against your vehicle.

You are responsible for paying the towing company any outstanding balance due on any of these fees once the sale is complete.

Who is liable if my vehicle was damaged during towing or storage?

Generally the owner of a vehicle may recover for any damage to the vehicle resulting from any intentional or negligent act of a person causing the removal of, or removing, the vehicle.

What happens if a towing company violates the law?

If a tow company does not satisfactorily meet certain requirements detailed in this notice, you may bring a lawsuit in court, generally in small claims court. The tower may be civilly liable for damages up to two times the amount charged, not to exceed $500, and possibly more for certain violations.

 

(e) “Itemized invoice,” as used in this section, means a written
document that contains the following information. Any document
that substantially complies with this subdivision shall be deemed
an “itemized invoice” for purposes of this section:

(1) The name, address, telephone number, and carrier
identification number as required by subdivision (a) of Section
34507.5 of the person that is charging for towing and storage.

(2) If ascertainable, the registered owner or operator’s name,
address, and telephone number.

(3) The date service was initiated.

(4) The location of the vehicle at the time service was initiated,
including either the address or nearest intersecting roadways.

(5) A vehicle description that includes, if ascertainable, the
vehicle year, make, model, odometer reading, license plate number,
or if a license plate number is unavailable, the vehicle identification
number (VIN).

(6) The service dispatch time, the service arrival time of the tow
truck, and the service completion time.

(7) A clear, itemized, and detailed explanation of any additional
services that caused the total towing-related service time to exceed
one hour between service dispatch time and service completion
time.

(8) The hourly rate or per item rate used to calculate the total
towing and recovery-related fees. These fees shall be listed as
separate line items.

(9) If subject to storage fees, the daily storage rate and the total
number of days stored. The storage fees shall be listed as a separate
line item.

(10) If subject to a gate fee, the date and time the vehicle was
either accessed, for the purposes of returning personal property,
or was released after normal business hours. Normal business hours
are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive,
except state holidays. A gate fee shall be listed as a separate line
item.

(11) A description of the method of towing.

(12) If the tow was not requested by the vehicle’s owner or
driver, the identity of the person or governmental agency that
directed the tow. This paragraph shall not apply to information
otherwise required to be redacted under Section 22658.

(13) A clear, itemized, and detailed explanation of any additional
services or fees.

(f) “Person,” as used in this section, includes those entities
described in subdivision (a) and has the same meaning as described
in Section 470.

(g) An insurer or insurer’s agent shall be permitted to pay for
towing and storage charges by bank draft.

(h) A person who violates this section is civilly liable to a
registered or legal owner of the vehicle, or a registered owner’s
insurer, for up to two times the amount charged. For any action
brought under this section, liability shall not exceed five hundred
dollars ($500) per vehicle.

(i) This section shall not apply to the towing or storage of a
repossessed vehicle by any person subject to, or exempt from, the
Collateral Recovery Act (Chapter 11 (commencing with Section
7500) of Division 3 of the Business and Professions Code).

(j) This section does not relieve a person from the obligation to
comply with the provision of any other law.

SEC. 17.  

Section 22850.5 of the Vehicle Code is amended to
read:

22850.5.  

(a) A city, county, or city and county, or a state
agency may adopt a regulation, ordinance, or resolution
establishing procedures for the release of properly impounded
vehicles to the registered owner or the agent of the registered owner
and for the imposition of a charge equal to its administrative costs
relating to the removal, impound, storage, or release of the vehicles
to the registered owner or to the agent of the registered owner.
Those administrative costs may be waived by the local or state
authority upon verifiable proof that the vehicle was reported stolen
at the time the vehicle was removed.

(b) The following apply to any charges imposed for
administrative costs pursuant to subdivision (a):

(1) The charges shall only be imposed on the registered owner
or the agents of that owner and shall not include any vehicle towed
under an abatement program or sold at a lien sale pursuant to
Sections 3068.1 to 3074, inclusive, of, and Section 22851 of, the
Civil Code unless the sale is sufficient in amount to pay the
lienholder’s total charges and proper administrative costs.

(2) Any charges shall be collected by the local or state authority
only from the registered owner or an agent of the registered owner.

(3) The charges shall be in addition to any other charges
authorized or imposed pursuant to this code.

(4) No charge may be imposed for any hearing or appeal relating
to the removal, impound, storage, or release of a vehicle unless
that hearing or appeal was requested in writing by the registered
or legal owner of the vehicle or an agent of that registered or legal
owner. In addition, the charge may be imposed only upon the
person requesting that hearing or appeal.

No administrative costs authorized under subdivision (a) shall
be charged to the legal owner who redeems the vehicle unless the
legal owner voluntarily requests a poststorage hearing. No city,
county, city and county, or state agency shall require a legal owner
or a legal owner’s agent to request a poststorage hearing as a
requirement for release of the vehicle to the legal owner or the
legal owner’s agent. The impounding agency, or any person acting
on behalf of the agency, shall not require the legal owner or the
legal owner’s agent to produce any documents other than those
specified in paragraph (3) of subdivision (f) of Section 14602.6 or
paragraph (3) of subdivision (e) of Section 14602.7. The
impounding agency, or any person acting on behalf of the agency,
shall not require any documents to be notarized.

begin insert

begin insert SEC. 18. end insert   

end insert begin insert

Section 15.5 of this bill incorporates amendments to
Section 14602.9 of the Vehicle Code proposed by both this bill
and Senate Bill 541. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2016,
(2) each bill amends Section 14602.9 of the Vehicle Code, and (3)
this bill is enacted after Senate Bill 541, in which case Section 15
of this bill shall not become operative.

end insert

begin delete SEC. 18. end delete
begin insert SEC. 19. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for certain
costs that may be incurred by a local agency or school district
because, in that regard, 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.

However, if the Commission on State Mandates determines that
this act contains other costs mandated by the state, reimbursement
to local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.