BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           515 (Hagman)
          
          Hearing Date:  07/13/2009           Amended: 07/072009
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: Judiciary 5-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 515 makes numerous revisions to the Collateral  
          Recovery Act (CRA) and Vehicle Code Sections relating to the  
          impoundment of vehicles. Specifically, this bill:

          1)Limits a repossession agency's liability for damages to a  
            vehicle as a result of electrical failure, or specified  
            illegal aftermarket parts;
          2)Allows impoundment of any tow vehicle used to violate the CRA;
          3)Narrows the definition of experience for qualified managers of  
            repossession agencies; 
          4)Clarifies lighting requirements for towed vehicles, and  
            changes the requirement for multiple safety chains;
          5)Requires law enforcement agencies that impound vehicles to  
            remain open, without the necessity of making an appointment,  
            to issue a release whenever the agency is open to serve the  
            public;
          6)Requires impounding agencies to accept a valid bank credit  
            card or cash, as specified; and
          7)Prohibits a legal or registered owner from changing the name  
            of the registered owner until a vehicle is released from  
            impoundment.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           New reimbursable mandate         Unknown, potentially  
          significant                 General
          on local law enforcement                                
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          This bill makes numerous changes to the CRA and Vehicle Code  
          Sections, most of which are unlikely to incur state costs. 











          This bill, however, appears to create a new reimbursable state  
          mandate on local law enforcement agencies by requiring that they  
          remain open, without the necessity of making an appointment, to  
          issue a release whenever the agency is open to serve the public.  
          Some counties keep limited hours for release of vehicles or  
          require scheduled appointments to retrieve a vehicle. To the  
          degree that this requirement creates a need for additional  
          staffing, the state may be forced to reimburse local law  
          enforcement for this expansion of duties. Moreover, counties  
          that already comply with this provision of the bill can request  
          reimbursement for activities they were already completing  
          because of the state mandate.


          Page 2
          AB 515 (Hagman)

          The language "whenever the agency is open to serve the public"  
          is vague. While many large counties issue releases of vehicles  
          (when they contract with impoundment facilities) without an  
          appointment, during normal business hours, many law enforcement  
          agencies are technically open to serve the public 24 hours a  
          day. Staff recommends the bill be amended to clarify that  
          vehicles should be released during hours in which counters are  
          staffed for regular, non-emergency business.