BILL NUMBER: AB 791	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 29, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Hagman

                        FEBRUARY 21, 2013

   An act to amend 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.
   (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 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
 , without a court order,  the residence address, residence
telephone number, cellular telephone number, driver's license number,
 or   work schedule, past, present, or future
 location  , or any other personal information  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
  allow a person affiliated with a repossession agency
to wear a badge, cap insignia, or jacket label if it bears  on
its face a substantial part of the repossession  agency
  agency's  name, the license number issued by the
Director of Consumer Affairs to that  individual or  agency,
and  notification that the person is from a licensed
repossession agency   a word referring to the individual
as a repossessor  . The bill would  allow 
 authorize  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).   Code). 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 shall
not make demand for payment in lieu of repossession and shall not
sell collateral recovered under  the provisions of 
this chapter.
  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 this chapter. The fine
shall be one hundred dollars ($100) for the first violation and five
hundred dollars ($500) for each violation thereafter, per audit.
 
   (c) 
    (d)  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. 
   (d) 
    (e)  Committing unlawful assault or battery on another
person. The fine shall be five hundred dollars ($500) for each
violation. 
   (e) 
   (f)  Falsification or alteration of an inventory. The
fine shall be twenty-five dollars ($25) for each violation. 
   (f) 
    (g)  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
 , without a court order,  the residence address, residence
telephone number, cellular telephone number, driver's license number,
 work schedule, past, present,  or    future
 location  , or any other personal information  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   A  badge  or
  ,  cap insignia  , or jacket label may be
 worn by  a person as  a licensee, officer,
director, partner, manager, independent contractor, or employee of a
repossession  agency   agency. If a badge, cap
insignia, or jacket label is worn, it  shall bear on its face
 ,  all of the following:
   (1) A substantial part of the repossession  agency
  agency's  name.
   (2) The license number  issue   issued 
by the director to that  individual or  agency. 
   (3) Notification that the person is from a licensed repossession
agency.  
   (3) A word referring to the individual as a repossessor. 
   (b) The director may assess a fine of twenty-five dollars ($25)
per violation of subdivision (a).