BILL ANALYSIS                                                                                                                                                                                                    



                                                                    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.  








                                                                    AB 1859


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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