BILL ANALYSIS Ó AB 1859 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1859 (Gallagher) - As Amended April 18, 2016 ----------------------------------------------------------------- |Policy |Business and Professions |Vote:|15 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill makes several substantive and clarifying changes to repossession, inventory, and release procedures for collateral recovery involving licensed repossessors, including consumer AB 1859 Page 2 waivers of inventory presentation, storage of personal effects, collateral release procedures, and registration requirements. FISCAL EFFECT: Minor and absorbable costs to the Department of Consumer Affairs. COMMENTS: 1)Purpose. According to the author, this bill "makes necessary clarifying changes to the code and streamlines repossessor licensee inventory requirements. Current law requires repossessors to inventory trash and hidden items which is both cumbersome and unnecessary. This bill will provide a mechanism for debtors to allow the reposessor to dispose of personal effects they do not want, while also making sure that important personal effects that are left in the collateral are properly inventoried. The bill also makes sure that licensees can easily recover vehicles from storage facilities and aligns provisions of vehicle release with current provisions in law." 2)Background. The Bureau of Security and Investigative Services (BSIS) within DCA provides for the licensing and regulation of repossessors under the Collateral Recovery Act. (Act). Among other things, the Act specifies standards for education, experience, and repossession procedures. This bill aims to clarify and update the Act. 3)Prior Legislation. AB 1859 Page 3 AB 281 (Gallagher), Chapter 740, Statutes of 2015, allows reposessors to show proof of their license via various media, established a disciplinary review committee to review the request of a licensee to contest the assessment of an administrative fine or appeal a denial of a license, and made other technical changes. AB 2503 (Hagman), Chapter 390, Statutes of 2014, amended the definition of a "repossession agency," updated law enforcement notification requirements, updated condition report requirements, exempted registration of a vehicle for the purpose of removing the vehicle to their storage facility or the facility of the owner, held storage facilities harmless for any liability associated with the release of the collateral, and made other technical changes. Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081