BILL NUMBER: AB 791 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 19, 2013
INTRODUCED BY Assembly Member Hagman
FEBRUARY 21, 2013
An act to amend Section Sections
7506.5 , 7507.4, and 7508.2 of , and to add Sections
7508.7 and 7508.8 to, the Business and Professions Code,
relating to repossessors.
LEGISLATIVE COUNSEL'S DIGEST
AB 791, as amended, Hagman. Collateral recovery: repossessors.
Existing
(1) Existing law, the Collateral
Recovery Act, provides for the licensure and regulation of
repossession agencies by the Bureau of Security and Investigative
Services under the supervision and control of the Director of
Consumer Affairs. Existing law requires an applicant for a
qualification certificate or for an initial registration or a
reregistration to submit an application to the bureau and include
certain personal information in the application that is confidential
and is prohibited from being disclosed to the public , except
for the registrant's full name, the licensee's name and address, and
the registration number .
This bill would make a technical, nonsubstantive change to these
provisions.
This bill would delete those exceptions from the requirement that
the information in the application be confidential. The bill would
also prohibit a repossession agency from disclosing to the public the
residence address, residence telephone number, cellular telephone
number, driver's license number, or location of any licensee,
registrant, employee, or independent contractor.
(2) Existing law allows a licensed repossession agency or its
registrants to make demand for payment in lieu of repossession.
This bill would prohibit a licensed repossession agency or its
registrants from making a demand for payment in lieu of repossession,
and would also prohibit a repossession agency from selling
collateral recovered under the provisions of the act. The bill would
make conforming changes.
The bill would also require that any badge or cap insignia worn by
a person affiliated with a repossession agency bear on its face a
substantial part of the repossession agency name, the license number
issued by the Director of Consumer Affairs to that agency, and
notification that the person is from a licensed repossession agency.
The bill would allow the director to assess a fine of $25 per
violation of these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7506.5 of the Business and Professions Code is
amended to read:
7506.5. All information obtained on the application shall be
confidential pursuant to the Information Practices Act (Chapter 1
(commencing with Section 1798) of Title 1.8 of Part 4 of Division 3
of the Civil Code) and shall not be released to the public
except for the registrant's full name, the licensee's name and
address, and the registration number . The application
shall be verified and shall include the following:
(a) The full name, residence address, residence telephone number,
date and place of birth, and driver's license number of the applicant
or registrant.
(b) A statement listing any and all names used by the applicant or
registrant, other than the name by which he or she is currently
known. If the applicant or registrant has never used a name other
than his or her true name, this fact shall be set forth in the
statement.
(c) The name and address of the licensee and the date the
employment or contract commenced.
(d) The title of the position occupied by the applicant or
registrant and a description of his or her duties.
(e) Two recent photographs of the applicant or registrant, of a
type prescribed by the chief, and two classifiable sets of his or her
fingerprints, one set of which shall be forwarded to the Federal
Bureau of Investigation for purposes of a background check.
(f) The bureau may impose a fee not to exceed three dollars ($3)
for processing classifiable fingerprint cards submitted by
applicants, excluding those submitted into an electronic fingerprint
system using electronic fingerprint technology.
SEC. 2. Section 7507.4 of the Business
and Professions Code is amended to read:
7507.4. A licensed repossession agency or its registrants
may shall not make demand for payment
in lieu of repossession , if the demand is made pursuant to
an assignment for repossession and shall not sell
collateral recovered under the provisions of this chapter .
In making demand upon a debtor for a money payment in lieu of
repossession, the repossessor shall present the demand in compliance
with the Rosenthal Fair Debt Collection Act (Title 1.6C (commencing
with Section 1788) of Part 4 of Division 3 of the Civil Code),
setting forth in the demand only the amount that was specified by the
creditor in the repossession referral and the fees that are properly
chargeable. Itemized receipts shall be furnished the debtor at the
time payment is received. Payments received shall forthwith be
transmitted to the creditor, disclosing the full amount of money
received from the debtor in addition to the contract payments.
SEC. 3. Section 7508.2 of the Business
and Professions Code is amended to read:
7508.2. The director may assess administrative fines for any of
the following prohibited acts:
(a) Recovering collateral or making any money demand in lieu
thereof, including, but not limited to, collateral registered under
the Vehicle Code, that has been sold under a security agreement
before a signed or telegraphic authorization has been received from
the legal owner, debtor, lienholder, lessor, or repossession agency
acting on behalf of the legal owner, debtor, lienholder, or lessor of
the collateral. A telephonic assignment is acceptable if the legal
owner, debtor, lienholder, lessor, or repossession agency acting on
behalf of the legal owner, debtor, lienholder, or lessor is known to
the licensee and a written authorization from the legal owner,
debtor, lienholder, lessor, or repossession agency acting on behalf
of the legal owner, debtor, lienholder, or lessor is received by the
licensee within 10 working days or a request by the licensee for a
written authorization from the legal owner, debtor, lienholder,
lessor, or repossession agency acting on behalf of the legal owner,
debtor, lienholder, or lessor is made in writing within 10 working
days. Referrals of assignments from one licensee to another licensee
are acceptable. The referral of an assignment shall be made under the
same terms and conditions as in the original assignment. The fine
shall be twenty-five dollars ($25) for each of the first five
violations and one hundred dollars ($100) for each violation
thereafter, per audit.
(b) Using collateral or personal effects, which have been
recovered, for the personal benefit of a licensee, or officer,
partner, manager, registrant, or employee of a licensee. The fine
shall be twenty-five dollars ($25) for the first violation and one
hundred dollars ($100) for each violation thereafter. This
subdivision does not apply to personal effects disposed of pursuant
to subdivision (c) of Section 7507.9. Nothing in this subdivision
prohibits the using or taking of personal property connected,
adjoined, or affixed to the collateral through an unbroken sequence
if that use or taking is reasonably necessary to effectuate the
recovery in a safe manner or to protect the collateral or personal
effects.
(c) Selling collateral recovered under the provisions of this
chapter, except with written authorization from the legal owner or
mortgagee thereof. The fine shall be one hundred dollars ($100) for
the first violation and five hundred dollars ($500) for each
violation thereafter, per audit.
(d) Failing to remit all money due clients within 10 working days
after finalization of the sale of collateral. The licensee shall
deposit all money received in the form of cash or negotiable
instruments made payable to the licensee for money due clients from
the sale of collateral that has been repossessed in a trust account
within five working days, and the money shall be withdrawn only for
remittance to the client and for the payment of amounts due the
licensee. The fine shall be two hundred fifty dollars ($250) for the
first violation and one thousand dollars ($1,000) for each violation
thereafter. For purposes of this subdivision, "finalization of sale"
means the time when the documents of title or ownership which permit
transfer of title from the legal owner to the purchaser are received
by the repossession agency.
(e) Failing to remit moneys collected in lieu of repossession or
redemption to a client within 10 working days after receipt of the
moneys. The fine shall be two hundred fifty dollars ($250) for the
first violation and one thousand dollars ($1,000) for each violation
thereafter.
(f) Failing to deliver to a client any negotiable instrument
received by the licensee made payable to the client within 10 working
days of receipt of the negotiable instrument. No licensee, manager,
registrant, or employee of a licensee shall accept a negotiable
instrument made payable to a client unless they have authorization
from the client to accept the negotiable instrument. The fine shall
be two hundred fifty dollars ($250) for the first violation and one
thousand dollars ($1,000) for each violation thereafter.
(g)
(c) Unlawfully entering any private building or secured
area without the consent of the owner, or of the person in legal
possession thereof, at the time of repossession. The fine shall be
five hundred dollars ($500) for each violation.
(h)
(d) Committing unlawful assault or battery on another
person. The fine shall be five hundred dollars ($500) for each
violation.
(i)
(e) Falsification or alteration of an inventory. The
fine shall be twenty-five dollars ($25) for each violation.
(j)
(f) Soliciting from the legal owner the recovery of
specific collateral registered under the Vehicle Code or under the
motor vehicle licensing laws of other states after the collateral has
been seen or located on a public street or on public or private
property without divulging the location of the vehicle. The fine
shall be one hundred dollars ($100) for the first violation and two
hundred fifty dollars ($250) for each violation thereafter.
SEC. 4. Section 7508.7 is added to the
Business and Professions Code , to read:
7508.7. A repossession agency shall not disclose to the public
the residence address, residence telephone number, cellular telephone
number, driver's license number, or location of any licensee,
registrant, employee, or independent contractor that it employs.
SEC. 5. Section 7508.8 is added to the
Business and Professions Code , to read:
7508.8. (a) Any badge or cap insignia worn by a person as a
licensee, officer, director, partner, manager, independent
contractor, or employee of a repossession agency shall bear on its
face, all of the following:
(1) A substantial part of the repossession agency name.
(2) The license number issue by the director to that agency.
(3) Notification that the person is from a licensed repossession
agency.
(b) The director may assess a fine of twenty-five dollars ($25)
per violation of subdivision (a).
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