BILL NUMBER: AB 1859 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 18, 2016
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Member Gallagher
FEBRUARY 10, 2016
An act to amend Sections 7500.1 and 7507.9
7500.1, 7504, 7507.3, 7507.6, 7507.9, 7507.13, and 7508.2 of
the Business and Professions Code, and to add Section 22651.03 to the
Vehicle Code, relating to collateral recovery.
LEGISLATIVE COUNSEL'S DIGEST
AB 1859, as amended, Gallagher. Collateral recovery: release of
vehicle.
(1) 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. That act defines the term "repossession"
as meaning the locating or recovering of collateral by means of an
assignment. That act defines the term "assignment" as any
written authorization by the legal owner, lienholder, lessor, lessee,
registered owner, or the agent of any of them, to repossess any
collateral or any written authorization by an employer to recover any
collateral entrusted to an employee or former employee in possession
of the collateral. That act requires a licensee to remove
personal effects from the collateral and requires a licensee to make
a complete and accurate inventory of the personal effects. That act
makes a violation of any of its provisions a crime.
This bill would define the terms "repossession" or "repossess" to
mean the locating and physical recovering of collateral by means of
an assignment. The bill would define the term "order" as having
the same meaning as "assignment" and would change references to
"assignment" in the act to "order." The bill would instead
require a licensee to make a good faith effort to
complete and accurate inventory of the personal
effects in the collateral and would prohibit a licensee
from inventorying or removing any kind of trash or from being held
responsible for hidden personal effects. that are not
locked and not retrievable without a key, combination, or damage to
the collateral or personal effects. The bill would authorize a
licensee to allow a debtor or person in possession of the
collateral to sign a waiver forfeiting personal effects or other
personal property not covered by a security agreement and to waive
the required inventory of personal effects, and would require a
licensee, once the waiver is signed, to immediately dispose of the
personal effects or other property. debtor, with the
consent of the licensee, to waive the preparation and presentation of
an inventory of the personal effects not covered by a security
interest, prior to the completion of the inventory, if the debtor
signs a specified statement. The bill would authorize a
licensee to store personal effects inside the collateral, as
specified. The bill would also prohibit a licensee from conspiring or
agreeing to release personal effects or other personal property not
covered by a security agreement to anyone other than the debtor. By
placing new prohibitions on a licensee, this bill would expand an
existing crime and would, therefore, impose a state-mandated local
program.
(2) Existing law specifies how and to whom a vehicle that has been
removed by a peace officer may be released, including to the legal
owner of the vehicle and the legal owner's agent.
This bill would, notwithstanding specified sections of law,
instead prescribe specified procedures and requirements for releasing
a vehicle to a licensed repossessor, as defined, including that the
licensed repossessor present a copy of the assignment and pay all
towing and storage fees related to the seizure of the vehicle.
Existing law exempts from registration a vehicle repossessed
pursuant to a security agreement solely for the purpose of
transporting the vehicle from the point of repossession to the
storage facilities of the repossessor or other specified places if
the repossessor transports the vehicle with appropriate documents and
makes them available to a law enforcement officer upon request.
Existing law exempts a legal owner of a vehicle from the payment of
administrative costs assessed by a city, county, or city and county
for releasing a properly impounded vehicle, unless the legal owner
who redeems the vehicle requests a poststorage hearing. Existing law
prohibits a city, county, or city and county from requiring the legal
owner or the legal owner's agent to request a poststorage hearing as
a requirement for release of the vehicle.
This bill would specify that the above exemptions apply when a
vehicle is released to a licensed repossessor.
(3) 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" or "order" 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" or
"order" 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,
assignment or order, facsimile copy of an
assignment, assignment or order, or
electronic format of an assignment or order shall have the
same force and effect as an original written assignment.
assignment or order.
(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, a repossession order, 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,
assignment or order, as the registered owner.
(v) "Registrant" means a person registered under this chapter.
(w) "Repossession" or "repossess" means the locating and physical
recovering of collateral by means of an assignment.
assignment or order.
(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.
(ab) 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 7504 of the Business
and Professions Code is amended to read:
7504. (a) Except as otherwise provided in this chapter, an
applicant for a qualification certificate shall comply with all of
the following:
(1) Be at least 18 years of age.
(2) Have been, for at least two years of lawful experience, during
the five years preceding the date on which his or her application is
filed, a registrant or have had two years of lawful experience in
recovering collateral within this state. Lawful experience means
experience in recovering collateral as a registrant pursuant to this
chapter or as a salaried employee of a financial institution or
vehicle dealer. Lawful experience does not include any employment
performing work other than skip tracing, debt collection,
debt collection or actual collateral recovery.
Two years' experience shall consist of not less than 4,000 hours
of actual compensated work performed by the applicant preceding the
filing of an application.
An applicant shall certify that he or she has completed the
claimed hours of qualifying experience and the exact details as to
the character and nature thereof by written certifications from the
employer, licensee, financial institution, or vehicle dealer, subject
to independent verification by the director as he or she may
determine. In the event of the inability of an applicant to supply
the written certifications from the employer, licensee, financial
institution or vehicle dealer, in whole or in part, applicants may
offer other written certifications from other persons substantiating
their experience for consideration by the director. All
certifications shall include a statement that representations made
are true, correct, and contain no material omissions of fact to the
best knowledge and belief of the applicant or the person submitting
the certification. An applicant or person submitting the
certification who declares as true any material matter pursuant to
this paragraph that he or she knows to be false is guilty of a
misdemeanor.
(3) Complete and forward to the bureau a qualified certificate
holder application which shall be on a form prescribed by the
director and signed by the applicant. An applicant who declares as
true any material matter pursuant to this paragraph that he or she
knows to be false is guilty of a misdemeanor. The application shall
be accompanied by two recent photographs of the applicant, of a type
prescribed by the director, and two classifiable sets of his or her
fingerprints. The residence address, residence telephone number, and
driver's license number of each qualified certificate holder or
applicant for a qualification certificate, if requested, shall be
confidential pursuant to the Information Practices Act of 1977
(Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of
Division 3 of the Civil Code) and shall not be released to the
public.
(4) Pass the required examination.
(5) Pay the required application and examination fees to the
bureau.
(b) Upon the issuance of the initial qualification certificate or
renewal qualification certificate, the bureau shall issue to the
certificate holder a suitable pocket identification card which
includes a photograph of the certificate holder. The photograph shall
be of a size prescribed by the bureau. The card shall contain the
name of the licensee with whom the certificate holder is employed.
(c) The application form shall contain a statement informing the
applicant that a false or dishonest answer to a question may be
grounds for denial or subsequent suspension or revocation of a
qualification certificate.
SEC. 3. Section 7507.3 of the Business
and Professions Code is amended to read:
7507.3. A repossession agency shall be required to keep and
maintain adequate records of all transactions, including, but not
limited to, assignment order forms;
vehicle report of repossession required by Section 28 of the Vehicle
Code; vehicle condition reports, including odometer readings, if
available; personal effects inventory; notice of seizure; and records
of all transactions pertaining to the sale of collateral that has
been repossessed, including, but not limited to, bids solicited and
received, cash received, deposits made to the trust account,
remittances to the seller, and allocation of any moneys not so
remitted to appropriate ledger accounts. Records, including bank
statements of the trust account, shall be retained for a period of
not less than four years and shall be available for examination by
the bureau upon demand. In addition, collateral and personal effects
storage areas shall be made accessible for inspection by the bureau
upon demand. An assignment order form
may be an original, a photocopy, a facsimile copy, or a copy stored
in an electronic format.
SEC. 4. Section 7507.6 of the Business
and Professions Code is amended to read:
7507.6. (a) Within seven days after a violent act has occurred
involving a licensee, or any officer, partner, qualified certificate
holder, registrant or employee of a licensee, while acting within the
course and scope of his or her employment or contract, that results
in a police report or bodily harm or bodily injury, the licensee or
the licensee's qualified certificate holder or registrant, shall mail
or deliver to the chief a notice concerning the incident upon a form
provided by the bureau.
(b) Within seven days after the occurrence of a violent act or a
threatened violent act involving a licensee, or any officer, partner,
qualified certificate holder, registrant, or employee of a licensee
while acting within the course and scope of his or her employment or
contract, that results in a police report or bodily harm or bodily
injury, the licensee or the licensee's qualified certificate holder
or registrant shall send by certified mail, return receipt requested,
a notice containing information about the incident to the person or
individual who made the assignment. order.
If the assignor is not the legal owner, the assignor shall
notify the legal owner of the contents of the notice.
(c) A licensee, qualified certificate holder, or registrant may
send the notice set forth in subdivision (b) for a violent act or
threatened violent act even if a police report is not made or no
bodily harm or bodily injury occurs. Any notice of a threatened
violent act provided pursuant to subdivision (b) may only be used to
notify a subsequent assignee and not for any collateral purpose.
Nothing in this subdivision or subdivision (b) shall be construed to
provide immunity against any claim for defamation.
SEC. 2. SEC. 5. Section 7507.9 of
the Business and Professions Code is amended to read:
7507.9. Except as otherwise provided in this section, personal
effects shall be removed from the collateral, including any personal
effect that is mounted but detachable from the collateral by a
release mechanism. A licensee shall make a good faith effort
to inventory the personal effects, but shall not inventory or remove
trash of any kind or be held responsible for hidden personal
effects. The complete and accurate inventory of the
personal effects that are not lo cked and not retrievable
without a key, combination, or damage to the collateral or personal
effects shall be made, and the personal effects shall be
labeled and stored by the licensee for a minimum of 60 days in a
secure manner, except those personal effects removed by or in the
presence of the debtor or the party in possession of the collateral
at the time of the repossession. If the licensee or the licensee's
agent cannot determine whether the property attached to the
collateral is a personal effect or a part of the collateral, then
that fact shall be noted on the inventory and the licensee or agent
shall not be obligated to remove the item from the collateral, unless
the item can be removed without the use of tools, in which case it
shall be removed and inventoried. The licensee or the licensee's
agent shall notify the debtor that if the debtor takes the position
that an item is a personal effect, then the debtor shall contact the
legal owner to resolve the issue.
(a) The date and time the inventory is made shall be indicated.
The permanent records of the licensee shall indicate the name of the
employee or registrant who performed the inventory.
(b) The following items of personal effects are items determined
to present a danger or health hazard when recovered by the licensee
and shall be disposed of in the following manner:
(1) Deadly weapons and dangerous drugs shall be turned over to any
law enforcement agency for retention. These items shall be entered
on the inventory and a notation shall be made as to the date, time,
and place the deadly weapon or dangerous drug was turned over to the
law enforcement agency, and a receipt from the law enforcement agency
shall be maintained in the records of the repossession agency.
(2) Combustibles shall be inventoried and noted as "disposed of,
dangerous combustible," and the item shall be disposed of in a
reasonable and safe manner.
(3) Food and other health hazard items shall be inventoried and
noted as "disposed of, health hazard," and disposed of in a
reasonable and safe manner.
(c) Personal effects may be disposed of after being held for at
least 60 days. The inventory, and adequate information as to how,
when, and to whom the personal effects were disposed of, shall be
filed in the permanent records of the licensee and retained for four
years.
(d) The inventory shall include the name, address, business hours,
and telephone number of the repossession agency to contact for
recovering the personal effects and an itemization of all personal
effects removal and storage charges that will be made by the
repossession agency. The inventory shall also include the following
statement: "Please be advised that the property listed on this
inventory will be disposed of by the repossession agency after being
held for 60 days from the date of this notice IF UNCLAIMED."
(e) The inventory shall be provided to a debtor not later than 48
hours after the recovery of the collateral, except that if:
(1) The 48-hour period encompasses a Saturday, Sunday, or postal
holiday, the inventory shall be provided no later than 72 hours after
the recovery of the collateral.
(2) The 48-hour period encompasses a Saturday or Sunday and a
postal holiday, the inventory shall be provided no later than 96
hours after the recovery of the collateral.
(3) Inventory resulting from repossession of a yacht, motor home,
or travel trailer is such that it shall take at least four hours to
inventory, then the inventory shall be provided no later than 96
hours after the recovery of the collateral. When the 96-hour period
encompasses a Saturday, Sunday, or postal holiday, the inventory
shall be provided no later than 120 hours after the recovery of the
collateral.
(4) The licensee is unable to open 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.
(f) Environmental, Olympic, special interest, or other license
plates issued pursuant to Article 8 (commencing with Section 5000),
Article 8.4 (commencing with Section 5060), or Article 8.5
(commencing with Section 5100) of Chapter 1 of Division 3 of the
Vehicle Code that remain the personal effects of the debtor shall be
removed from the collateral and inventoried pursuant to this section.
If the plates are not claimed by the debtor within 60 days, they
shall either (1) be effectively destroyed and the licensee shall,
within 30 days thereafter, notify the Department of Motor Vehicles of
their effective destruction on a form promulgated by the chief that
has been approved as to form by the Director of the Department of
Motor Vehicles; or (2) be retained by the licensee indefinitely to be
returned to the debtor upon request, in which case the licensee
shall not charge more than 60 days' storage on the plates.
(g) The notice may be given by regular mail addressed to the last
known address of the debtor or by personal service at the option of
the repossession agency.
(h) (1) With the consent of the licensee, the debtor
waives may waive 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. prior to completion of the inventory and
signs a statement that reads only as follows:
(2) A licensee may allow a debtor or a person in possession of the
collateral to sign, at the time of repossession or at a later date,
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. Once the waiver has been
signed, the licensee shall immediately dispose of the personal
effects or personal property.
"I, insert debtor's name here], have received all personal
effects that were in the vehicle at the time of the repossession."
(2) No other signature or document
shall be required to waive the preparation and presentation of an
inventory. The document shall be subject to the confidentiality
provision of subdivision (k).
(i) (1) 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.
(2) A Subject to paragraph (1), 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.
(j) 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.
(k) The inventory or waiver of inventory, as provided in
subdivision (h), 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.
(5) No other signatures, conditions, documents, or information
regarding the inventory, personal effects, or statement may be
required or given except as provided in this section or as ordered by
a court of competent jurisdiction.
(l) A licensee who has been notified that
collateral will be retrieved may store personal effects or
personal property property, in compliance
with the security standards of this chapter, inside the
collateral until the collateral is no longer in the possession of the
licensee. The If a licensee stores personal
effects pursuant to this subdivision, the collateral shall not
leave the possession of the licensee until all personal effects or
personal property have been removed.
SEC. 6. Section 7507.13 of the Business
and Professions Code is amended to read:
7507.13. (a) A licensed repossession agency is not liable for the
act or omission of a legal owner, debtor, lienholder, lessor,
lessee, registered owner, or an agent of any of them, in making an
assignment order to it or for accepting
an assignment order 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 order 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, order, the party making the
assignment order 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 order
with a copy of this section, Sections 7500.2, 7507.4, 7507.115,
7507.12, and 7507.125 of this code, and Section 28 of the Vehicle
Code.
SEC. 7. Section 7508.2 of the Business
and Professions Code is amended to read:
7508.2. The director may assess administrative fines for any of
the following prohibited acts:
(a) Recovering collateral or making any money demand in lieu
thereof, including, but not limited to, collateral registered under
the Vehicle Code, that has been sold under a security agreement
before a signed or telegraphic authorization has been received from
the legal owner, debtor, lienholder, lessor, or repossession agency
acting on behalf of the legal owner, debtor, lienholder, or lessor of
the collateral. A telephonic assignment
order is acceptable if the legal owner, debtor, lienholder,
lessor, or repossession agency acting on behalf of the legal owner,
debtor, lienholder, or lessor is known to the licensee and a written
authorization from the legal owner, debtor, lienholder, lessor, or
repossession agency acting on behalf of the legal owner, debtor,
lienholder, or lessor is received by the licensee within 10 working
days or a request by the licensee for a written authorization from
the legal owner, debtor, lienholder, lessor, or repossession agency
acting on behalf of the legal owner, debtor, lienholder, or lessor is
made in writing within 10 working days. Referrals of
assignments orders from one licensee to another
licensee are acceptable. The referral of an assignment
order shall be made under the same terms and
conditions as in the original assignment.
order. The fine shall be twenty-five dollars ($25) for each of
the first five violations and one hundred dollars ($100) for each
violation thereafter, per audit.
(b) Using collateral or personal effects, which have been
recovered, for the personal benefit of a licensee, or officer,
partner, manager, registrant, or employee of a licensee. The fine
shall be twenty-five dollars ($25) for the first violation and one
hundred dollars ($100) for each violation thereafter. This
subdivision does not apply to personal effects disposed of pursuant
to subdivision (c) of Section 7507.9. Nothing in this subdivision
prohibits the using or taking of personal property connected,
adjoined, or affixed to the collateral through an unbroken sequence
if that use or taking is reasonably necessary to effectuate the
recovery in a safe manner or to protect the collateral or personal
effects.
(c) Selling collateral recovered under this chapter, or making a
demand for payment in lieu of repossession. The fine shall be two
hundred fifty dollars ($250) for the first violation and one thousand
dollars ($1,000) for each subsequent violation.
(d) Unlawfully entering any private building or secured area
without the consent of the owner, or of the person in legal
possession thereof, at the time of repossession. The fine shall be
five hundred dollars ($500) for
each violation.
(e) Committing unlawful assault or battery on another person. The
fine shall be five hundred dollars ($500) for each violation.
(f) Falsification or alteration of an inventory. The fine shall be
twenty-five dollars ($25) for each violation.
(g) Soliciting from the legal owner the recovery of specific
collateral registered under the Vehicle Code or under the motor
vehicle licensing laws of other states after the collateral has been
seen or located on a public street or on public or private property
without divulging the location of the vehicle. The fine shall be one
hundred dollars ($100) for the first violation and two hundred fifty
dollars ($250) for each violation thereafter.
SEC. 3. SEC. 8. Section 22651.03 is
added to the Vehicle Code, immediately following Section 22651, to
read:
22651.03. (a) Notwithstanding Sections 14602.6 and 22651, this
section shall apply when collateral is released to a licensed
repossessor. For purposes of this section, "licensed repossessor"
means 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.
(b) Pursuant to Section 4022, a vehicle obtained by a licensed
repossessor as a release of collateral is exempt from registration
for purposes of the repossessor removing the vehicle to his or her
storage facility or the facility of the legal owner. A law
enforcement agency, impounding authority, tow yard, storage facility,
or any other person in possession of the collateral shall release
the vehicle without requiring current registration and pursuant to
this section. The law enforcement agency shall be open to issue a
release to the legal owner or a licensed repossessor whenever the
agency is open to serve the public for nonemergency business.
(c) 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 a licensed
repossessor provided the release complies with this section. A law
enforcement agency shall not refuse to issue a release to a legal
owner or a licensed repossessor on the grounds that it previously
issued a release.
(d) A vehicle removed and seized for any reason shall be released
to the legal owner of the vehicle or to a licensed repossessor 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 licensed repossessor pays all
towing and storage fees related to the seizure of the vehicle. Any
person having possession of the vehicle shall not collect from the
legal owner of the type specified in paragraph (1) or a licensed
repossessor 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 owner or a licensed repossessor 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 licensed repossessor presents a copy of the
assignment, assignment or order, 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 licensed repossessor: 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 licensed repossessor 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.
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
licensed repossessor to request a poststorage hearing as a
requirement for release of the vehicle to the legal owner or the
licensed repossessor. 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 licensed repossessor 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 licensed
repossessor.
(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 a licensed repossessor to retrieve the vehicle,
provided all conditions required of the legal owner or licensed
repossessor under this subdivision are satisfied.
(e) (1) A legal owner or a
licensed repossessor that obtains release of a vehicle pursuant to
subdivision (d) shall not release the vehicle to the registered owner
of the vehicle, 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.
(2) The legal owner or the licensed repossessor 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 licensed repossessor. The legal owner, licensed
repossessor, or person in possession of the vehicle shall make every
reasonable effort to ensure that the license presented is valid and
that 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.
(f) 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 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.
SEC. 4. SEC. 9. 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.