BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 515
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 515 (Hagman)
          As Amended  August 26, 2009
          Majority vote
           
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          |ASSEMBLY:  |73-0 |(May 14, 2009)  |SENATE: |39-0 |(September 2,  |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:    B. & P.

          SUMMARY  :  Makes numerous revisions to the Collateral Recovery  
          Act (Act) and Vehicle code Sections relating to the impound of  
          vehicles, including:  limiting a repossession agency's liability  
          for damages to a vehicle as a result of electrical failure, or  
          specified illegal aftermarket parts; allowing impound of any tow  
          vehicle used to violate the Act; narrowing the definition of  
          lawful experience for qualified managers of repossession  
          agencies; clarifying lighting requirements for towed vehicles,  
          and modifying the requirement for multiple safety chains;  
          requiring law enforcement agencies to be open, as specified, to  
          issue impound releases without the necessity of making an  
          appointment; requiring impound agencies to accept a valid bank  
          credit card or cash, as specified; and prohibiting a legal or  
          registered owner from changing the name of the registered owner  
          until a vehicle is released from impound.

           The Senate amendments  :

          1)Clarify that law enforcement agencies are required to be open,  
            as specified, to issue impound releases without the necessity  
            of making an appointment.

          2)Double-joint this bill with AB 201 (Oropeza) of 2009, as  
            specified.

          3)Make technical, clarifying changes.

           EXISTING LAW  : 

          1)Provides, under the Act, for the licensure and regulation of  
            repossession agencies by the Bureau of Security and  
            Investigative Services (BSIS) under the supervision and  
            control of the Director of the Department of Consumer Affairs  








                                                                  AB 515
                                                                  Page  2

            (DCA).  Any person who violates the provisions of the Act is  
            guilty of a crime punishable by fine and imprisonment.  

          2)Requires an applicant for a qualification certificate to  
            satisfy certain requirements, including possessing two years  
            of lawful experience, as specified.

          3)Requires every repossession agency office to be under the  
            active charge of a qualified certificate holder. 

          4)Requires licensees to serve a debtor with a specified notice  
            of seizure after the recovery of collateral by the licensee.

          5)Provides that a peace officer or, in certain other cases, a  
            magistrate, may cause the removal and seizure of a vehicle, as  
            specified.  Specifies that a vehicle removed and seized may be  
            released to the legal owner or the legal owner's agent prior  
            to the end of 30 days impoundment if certain conditions are  
            met, including, but not limited to, the requirement that the  
            legal owner or the legal owner's agent pay all towing and  
            storage fees related to the seizure of the vehicle. 

          6)Imposes various tail lamp, stop lamp, turn signal, and  
            multi-safety chain requirements applicable to towing vehicles.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version approved by the Senate.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, potential non-reimbursable costs for investigation  
          and prosecution of misdemeanor penalties for violations of the  
          new requirements under the Collateral Recovery Act offset to  
          some extent by penalty revenues.


           Analysis Prepared by  :    Rebecca May / B. & P. / (916) 319-3301 


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