as amended, Gallagher. Collateral
begin delete recovery.end delete
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.
begin delete The act requires every person entering the employ of, or contracting with, a licensee or multiple licensee to immediately complete an application for an initial registration or a reregistration and file the appropriate application with the chief of the bureau, as specified. The act further requires that application to be verified and include certain information, and provides that all information obtained on the application is confidential, as specified.end delete
This bill would
begin delete make a nonsubstantive change to that confidentiality provision. end delete
begin deleteno end delete.
State-mandated local program: begin deleteno end delete.
The people of the State of California do enact as follows:
The following terms as used in this chapter have the
4meaning expressed in this section:
5(a) “Advertisement” means any written or printed
6communication, including a directory listing, except a free
7telephone directory listing that does not allow space for a license
9(b) “Assignment” means any written authorization by the legal
10owner, lienholder, lessor, lessee, registered owner, or the agent of
11any of them, to repossess any collateral, including, but not limited
12to, collateral registered under the Vehicle Code that is subject to
13a security agreement that contains a repossession clause.
14“Assignment” also means any written authorization by an employer
15to recover any collateral entrusted to an employee or former
16 employee in possession of the collateral. A photocopy of an
17assignment, facsimile copy of an assignment, or electronic format
18of an assignment shall have the same force and effect as an original
20(c) “Bureau” means the Bureau of Security and Investigative
22(d) “Chief” means the Chief of the Bureau of Security and
P4 1(e) “Collateral” means any specific vehicle, trailer, boat,
2recreational vehicle, motor home, appliance, or other property that
3is subject to a security agreement.
4(f) “Combustibles” means any substances or articles that are
5capable of undergoing combustion or catching fire, or that are
6flammable, if retained.
drugs” means any controlled substances as
8defined in Chapter 2 (commencing with Section 11053) of Division
910 of the Health and Safety Code.
10(h) “Deadly weapon” means and includes any instrument or
11weapon of the kind commonly known as a blackjack, slungshot,
12billy, sandclub, sandbag, metal knuckles, dirk, dagger, pistol, or
13revolver, or any other firearm, any knife having a blade longer
14than five inches, any razor with an unguarded blade, and any metal
15pipe or bar used or intended to be used as a club.
16(i) “Debtor” means any person obligated under a security
18(j) “Department” means the Department of Consumer Affairs.
19(k) “Director” means the Director of Consumer Affairs.
20(l) “Electronic format” includes, but is not limited to, a text
21message, email, or Internet posting.
22(m) “Health hazard” means any personal effects that if retained
23would produce an unsanitary or unhealthful condition, or which
24might damage other personal effects.
25(n) “Legal owner” means a person holding a security interest
26in any collateral that is subject to a security agreement, a lien
27against any collateral, or an interest in any collateral that is subject
28to a lease agreement.
29(o) “Licensee” means an individual, partnership, limited liability
30company, or corporation licensed under this chapter as a
32(p) “Multiple licensee” means a repossession agency holding
33more than one repossession license under this chapter, with one
34fictitious trade style and ownership, conducting repossession
35business from additional licensed locations other than the location
36shown on the original license.
37(q) “Person” includes any individual, partnership, limited
38liability company, or corporation.
39(r) “Personal effects” means any property that is not the property
40of the legal owner.
P5 1(s) “Private building” means and includes any dwelling,
2outbuilding, or other enclosed structure.
3(t) “Qualified certificate holder” or “qualified manager” is a
4person who possesses a valid qualification certificate in accordance
5with the provisions of Article 5 (commencing with Section 7504)
6and is in active control or management of, and who is a director
7of, the licensee’s place of business.
8(u) “Registered owner” means the individual listed in the records
9of the Department of Motor Vehicles, or on a conditional sales
10contract, or on a repossession assignment, as the registered owner.
11(v) “Registrant” means a person registered under this chapter.
12(w) “Repossession” means the locating
begin delete orend delete recovering of collateral by means of an assignment.
14(x) “Secured area” means and includes any fenced and locked
16(y) “Security agreement” means an obligation, pledge, mortgage,
17chattel mortgage, lease agreement, deposit, or lien, given by a
18debtor as security for payment or performance of his or her debt,
19by furnishing the creditor with a recourse to be used in case of
20failure in the principal obligation. “Security agreement” also
21includes a bailment where an employer-employee relationship
22exists or existed between the bailor and the bailee.
23(z) “Services” means any duty or labor to be rendered by one
24person for another.
25(aa) “Violent act” means any act that results in bodily harm or
26injury to any party involved.
28 The amendments made to this section by Chapter 418 of
29the Statutes of 2006 shall not be deemed to exempt any person
30from the provisions of this chapter.
begin deletePersonal end deleteeffects shall be removed from the collateral, including
35any personal effect that is mounted but detachable from the
36collateral by a release mechanism. A
begin delete complete and accurate
personal effects shall
37inventory of the personal effects shall be made, and theend delete
P6 1be labeled and stored by the licensee for a minimum of 60 days in
2a secure manner, except those personal effects removed by or in
3the presence of the debtor or the party in possession of the collateral
4at the time of the repossession. If the licensee or the licensee’s
5agent cannot determine whether the property attached to the
6collateral is a personal effect or a part of the collateral, then that
7fact shall be noted on the inventory and the licensee or agent shall
8not be obligated to remove the item from the collateral, unless the
9item can be removed without the use of tools, in which case it shall
10be removed and inventoried. The licensee or the licensee’s agent
11shall notify the debtor that if the debtor takes the position that an
12item is a personal effect, then the debtor shall contact the legal
13owner to resolve the issue.
14(a) The date and time the inventory is made shall be indicated.
15The permanent records of the licensee shall indicate the name of
16the employee or registrant who performed the inventory.
17(b) The following items of personal effects are items determined
18to present a danger or health hazard when recovered by the licensee
19and shall be disposed of in the following manner:
20(1) Deadly weapons and dangerous drugs shall be turned over
21to any law enforcement agency for retention. These items shall be
22entered on the inventory and a notation shall be made as to the
23date, time, and place the deadly weapon or dangerous drug was
24turned over to the law enforcement agency, and a receipt from the
25law enforcement agency shall be maintained in the records of the
27(2) Combustibles shall be inventoried and noted as “disposed
28of, dangerous combustible,” and the item shall be disposed of in
29a reasonable and safe manner.
30(3) Food and other health hazard items shall be inventoried and
31noted as “disposed of, health hazard,” and disposed of in a
32reasonable and safe manner.
33(c) Personal effects may be disposed of after being held for at
34least 60 days. The inventory, and adequate information as to how,
35when, and to whom the personal effects were disposed of, shall
36be filed in the permanent records of the licensee and retained for
38(d) The inventory shall include the name, address, business
39hours, and telephone number of the repossession agency to contact
40for recovering the personal effects and an itemization of all
P7 1personal effects removal and storage charges that will be made by
2the repossession agency. The inventory shall also include the
3following statement: “Please be advised that the property listed
4on this inventory will be disposed of by the repossession agency
5after being held for 60 days from the date of this notice IF
7(e) The inventory shall be provided to a debtor not later than
848 hours after the recovery of the collateral, except that if:
9(1) The 48-hour period encompasses a Saturday, Sunday, or
10postal holiday, the inventory shall be provided no later than 72
11hours after the recovery of the collateral.
12(2) The 48-hour period encompasses a Saturday or Sunday and
13a postal holiday, the inventory shall be provided no later than 96
14hours after the recovery of the collateral.
15(3) Inventory resulting from repossession of a yacht, motor
16home, or travel trailer is such that it shall take at least four hours
17to inventory, then the inventory shall be provided no later than 96
18hours after the recovery of the collateral. When the 96-hour period
19encompasses a Saturday, Sunday, or postal holiday, the inventory
20shall be provided no later than 120 hours after the recovery of the
22(4) The licensee is unable to open a locked compartment that
23is part of the collateral, the available inventory shall be provided
24no later than 96 hours after the recovery of the collateral. When
25the 96-hour period encompasses a Saturday, Sunday, or postal
26holiday, the inventory shall be provided no later than 120 hours
27after the recovery of the collateral.
28(f) Environmental, Olympic, special interest, or other license
29plates issued pursuant to Article 8 (commencing with Section
305000), Article 8.4 (commencing with Section 5060), or Article 8.5
31(commencing with Section 5100) of Chapter 1 of Division 3 of
32the Vehicle Code that remain the personal effects of the debtor
33shall be removed from the collateral and inventoried pursuant to
34this section. If the plates are not claimed by the debtor within 60
35days, they shall either (1) be effectively destroyed and the licensee
36shall, within 30 days thereafter, notify the Department of Motor
37Vehicles of their effective destruction on a form promulgated by
38the chief that has been approved as to form by the Director of the
39Department of Motor Vehicles; or (2) be retained by the licensee
40indefinitely to be returned to the debtor upon request, in which
P8 1case the licensee shall not charge more than 60 days’ storage on
3(g) The notice may be given by regular mail addressed to the
4last known address of the debtor or by personal service at the option
5of the repossession agency.
6(h) With the consent of the licensee, the debtor waives the
7preparation and presentation of an inventory if the debtor redeems
8the personal effects or other personal property not covered by a
9security interest within the time period for the notices required by
10this section and signs a statement that he or she has received all
19(i) If personal effects or other personal property not covered
20by a security agreement are to be released to someone other than
21the debtor, the repossession agency shall request written
22authorization to do so from the debtor.
26(j) A licensee shall not sell personal effects or other personal
27property not covered by a security agreement and remit money
28from the sale to a third party, including, but not limited to, any
30(k) The inventory shall be a confidential document. A licensee
31shall only disclose the contents of the inventory under the following
33(1) In response to the order of a court having jurisdiction to
34issue the order.
35(2) In compliance with a lawful subpoena issued by a court of
37(3) When the debtor has consented in writing to the release and
38the written consent is signed and dated by the debtor subsequent
39to the repossession and states the entity or entities to whom the
40contents of the inventory may be disclosed.
P9 1(4) To the debtor.
8immediately following Section 22651
Section 7506.5 of the Business and Professions
38Code is amended to read:
All information obtained on the application shall be
40confidential pursuant to the Information Practices Act of 1977
P13 1(Chapter 1 (commencing with Section 1798) of Title 1.8 of Part
24 of Division 3 of the Civil Code) and shall not be released to the
3public except for the registrant’s full name, the licensee’s name
4and address, and the registration number. The application shall be
5verified and shall include:
6(a) The full name, residence address, residence telephone
7number, date and place of birth, and driver’s license number of
8the applicant or registrant.
9(b) A statement listing any and all names used by the
10or registrant, other than the name by which he or she is currently
11 known. If the applicant or registrant has never used a name other
12than his or her true name, this fact shall be set forth in the
14(c) The name and address of the licensee and the date the
15employment or contract commenced.
16(d) The title of the position occupied by the applicant or
17registrant and a description of his or her duties.
18(e) Two recent photographs of the applicant or registrant, of a
19type prescribed by the chief, and two classifiable sets of his or her
20fingerprints, one set of which shall be forwarded to the Federal
21Bureau of Investigation for purposes of a background check.
22(f) The bureau may impose a fee not to exceed three
23($3) for processing classifiable fingerprint cards submitted by
24applicants, excluding those submitted into an electronic fingerprint
25system using electronic fingerprint technology.