BILL ANALYSIS Ó
AB 1859
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1859 (Gallagher) - As Amended April 18, 2016
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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
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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.
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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