BILL ANALYSIS Ó AB 1859 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1859 (Gallagher) As Amended August 18, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |76-0 |(May 19, 2016) |SENATE: | 39-0 |(August 23, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: B. & P. SUMMARY: Makes clarifying changes to the Collateral Recovery Act (Act) and amends the experience requirements for a repossessor's license. Specifically, this bill: 1)Adds "skip tracing" and "locating" to the definition of "assignment." 2)Defines "repossession order" as having the same meaning as "assignment" and adds "repossession order" to provisions that reference "assignment." 3)Deletes the definition of "repossession." 4)Deletes "debt collection" from the work which may be used to apply for a qualification certificate. AB 1859 Page 2 5)Makes technical and conforming changes. The Senate amendments delete the majority of the provisions of the bill, added the new terms to the definition of assignment, added "skip tracing" back into the types of qualifying experience and instead deleted "debt collection," and made technical and conforming changes. FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS: Purpose. This bill is sponsored by the California Association of Licensed Repossessors. According to the author, this bill "makes necessary clarifying changes to the code." Background. The Act provides for the licensing and regulation of repossessors. Among other things, the Act specifies standards for education, experience, and repossession procedures. However, the sponsor notes that the Act is out of date in some instances. Therefore, this bill aims to clarify and update the Act. Repossession Order. According to the sponsors, the term "repossession order" is a commonly used term in the collateral recovery industry. Currently, the Act only uses the term "assignment." This bill clarifies that a repossession order is the same as an assignment. Experience Requirements. Currently, only experience in skip tracing, debt collection, or actual collateral recovery may be used to qualify for a license. This bill deletes debt collection from the list. AB 1859 Page 3 Analysis Prepared by: Vincent Chee / B. & P. / (916) 319-3301 FN: 0004890