Bill Text: CA AB2503 | 2013-2014 | Regular Session | Chaptered
Bill Title: Repossessors.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2014-09-17 - Chaptered by Secretary of State - Chapter 390, Statutes of 2014. [AB2503 Detail]
Download: California-2013-AB2503-Chaptered.html
BILL NUMBER: AB 2503 CHAPTERED
BILL TEXT
CHAPTER 390
FILED WITH SECRETARY OF STATE SEPTEMBER 17, 2014
APPROVED BY GOVERNOR SEPTEMBER 17, 2014
PASSED THE SENATE AUGUST 21, 2014
PASSED THE ASSEMBLY AUGUST 22, 2014
AMENDED IN SENATE AUGUST 19, 2014
AMENDED IN SENATE AUGUST 7, 2014
AMENDED IN SENATE AUGUST 4, 2014
AMENDED IN SENATE JUNE 23, 2014
AMENDED IN ASSEMBLY APRIL 23, 2014
AMENDED IN ASSEMBLY APRIL 21, 2014
AMENDED IN ASSEMBLY APRIL 1, 2014
INTRODUCED BY Assembly Member Hagman
FEBRUARY 21, 2014
An act to amend Sections 7500.2, 7502.2, 7507.115, 7508.1, 7508.4,
and 7508.5 of, and to amend and renumber Section 7505.2 of, the
Business and Professions Code, to amend Section 41612 of the
Government Code, and to amend Sections 28, 4000, and 11705 of, and to
add Section 10856 to, the Vehicle Code, relating to repossessors,
and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 2503, Hagman. 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. A violation of the act is a
crime.
This bill would require a repossession agency to only transact
business with a person or entity as an independent contractor, and
would prohibit a licensed repossession agency from allowing a person
or entity, other than the qualified certificate holder or the owner
or officer of the repossession agency, to manage the day-to-day
operations, operate, control, or transact business under the license
of the repossession agency, except as specified. By expanding the
scope of a crime, the bill would impose a state-mandated local
program.
(2) Under existing law, a financial institution that knowingly
engages a nonexempt unlicensed person to repossess collateral on its
behalf is guilty of a misdemeanor.
This bill would expand the above crime to apply to a
buy-here-pay-here dealer, as defined. By expanding the scope of a
crime, the bill would impose a state-mandated local program.
(3) Existing law prohibits a repossessor from appraising the value
of any collateral.
The bill would further prohibit the appraisal or determination of
the value of any collateral, whether damaged or not. The bill would
also require a specified statement on condition reports and would
specify that condition reports do not include all damage or missing
parts. By expanding the scope of a crime, the bill would impose a
state-mandated local program.
(4) Existing law authorizes the Director of Consumer Affairs to
assess administrative fines for various prohibited acts, including
using any identification to indicate registration as a repossessor,
other than a registration card issued by the Bureau of Security and
Investigative Services, except an employer identification card issued
by the repossession agency which has bureau approval. Existing law
allows an employee of a repossession agency to wear a badge, cap
insignia, or jacket patch meeting specified requirements.
This bill would except a badge, cap insignia, or jacket patch from
the prohibition on using any identification to indicate registration
as a repossessor.
(5) Existing law authorizes the Director of Consumer Affairs to
assess an administrative fine for the failure to present a debtor
with an itemized receipt of payment, if payment is made in lieu of
repossession.
This bill would delete this provision.
(6) Existing law requires that when possession is taken of a
vehicle by or on behalf of a legal owner under the terms of a
security or lease agreement, the debtor pay the police or parking
authority a specified fee. Existing law prohibits the release of the
vehicle to the debtor until the debtor provides proof of payment or
pays the fee and an administrative fee to the person in possession or
the legal owner. Existing law also provides for a fine if the fee is
not transmitted to the police or parking authority. Existing law
requires proof of payment to be retained by the party releasing
possession to the debtor.
This bill would delete the provisions that allow the release of a
vehicle to a debtor who pays the fee and an administrative fee to the
person in possession or the legal owner. The bill would make other
conforming changes to this provision.
(7) Existing law requires the person taking possession of a
vehicle whenever possession is taken by or on behalf of any legal
owner under the terms of a security agreement or lease agreement to
notify local law enforcement within one hour of the repossession, as
specified. Violation of these provisions is a crime.
This bill would require the repossessor to contact law enforcement
within one hour of the repossession, would specify information that
would be required to be provided in the notification, and, if law
enforcement is unable to receive and record the notification, require
the person to continue to attempt notification until the required
information is provided, as specified.
By expanding the provisions of existing law, the violation of
which is a crime, this bill would impose a state-mandated local
program.
(8) Existing law prohibits a person from driving, moving, or
leaving standing upon a highway or offstreet public parking facility
any motor vehicle or other specified vehicle, unless it is registered
and the appropriate fees have been paid. Existing law provides that
a vehicle repossessed pursuant to the terms of a security agreement
is exempt from registration solely for the purpose of transporting
the vehicle from the point of repossession to the storage facilities
of the repossessor, and from the storage facilities to the legal
owner or a licensed motor vehicle auction, provided that the
repossessor transports with the vehicle the appropriate documents
authorizing the repossession and makes them available to a law
enforcement officer on request.
This bill would additionally exempt from the registration
requirement a vehicle obtained by a licensed repossessor as a release
of collateral for the purpose of removing the vehicle to the storage
facility or the facility of the legal owner. The bill requires a law
enforcement agency, impounding authority, tow yard, storage
facility, or any other person or entity that has possession of the
vehicle to release the vehicle without requiring current
registration. The bill would require a legal owner of collateral to
hold a law enforcement agency, city, county, city and county, the
state, a tow yard, storage facility, or impound yard harmless from
liability if collateral is released in compliance with statute.
(9) Existing law establishes offenses for, among other things,
willfully tampering or injuring a vehicle or its contents, as
specified.
This bill would prohibit a person from interfering with the
transport of a vehicle or other collateral to a storage facility,
auction, or dealer by an individual who is employed by a repossession
agency or is licensed as a repossession agency once repossession is
complete, as provided. Violation of these provisions would be an
infraction pursuant to other provisions of law.
By creating a new crime, this bill would impose a state-mandated
local program.
(10) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(11) This bill would declare that it is to take effect immediately
as an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7500.2 of the Business and Professions Code is
amended to read:
7500.2. (a) A repossession agency means and includes any person
who, for any consideration whatsoever, engages in business or accepts
employment to locate or recover collateral, whether voluntarily or
involuntarily, including, but not limited to, collateral registered
under the provisions of the Vehicle Code which is subject to a
security agreement, except for any person registered pursuant to
Article 7 (commencing with Section 7506).
(b) A repossession agency licensed pursuant to this chapter shall
only transact business with another person or entity as an
independent contractor.
(c) A repossession agency shall not allow a person or entity other
than the qualified certificate holder, as provided in Section
7505.1, or the owner or officer of the repossession agency, to manage
the day-to-day operations, operate, control, or transact business
covered by this act, except as provided in Section 7503.3.
SEC. 2. Section 7502.2 of the Business and Professions Code is
amended to read:
7502.2. (a) A financial institution or a buy-here-pay-here
dealer, as defined by Section 241 of the Vehicle Code, that knowingly
engages a nonexempt unlicensed person to repossess collateral on its
behalf is guilty of a misdemeanor, and is punishable by a fine of
five thousand dollars ($5,000).
(b) Within existing resources, the Commissioner of Business
Oversight may designate employees to investigate and report on
violations of this section by any of the licensees of their
department. Those employees are authorized to actively cooperate with
the bureau in the investigation of those activities.
(c) A proceeding to impose the fine specified in subdivision (a)
may be brought in any court of competent jurisdiction in the name of
the people of the State of California by the Attorney General or by
any district attorney or city attorney, or with the consent of the
district attorney, by the city prosecutor in any city or city and
county having a full-time city prosecutor, for the jurisdiction in
which the violation occurred. If the action is brought by a district
attorney, the penalty collected shall be paid to the treasurer of the
county in which the judgment is entered. If the action is brought by
a city attorney or city prosecutor, one-half of the penalty
collected shall be paid to the treasurer of the city in which the
judgment was entered and one-half to the treasurer of the county in
which the judgment was entered. If the action is brought by the
Attorney General, all of the penalty collected shall be deposited in
the Private Security Services Fund.
SEC. 3. Section 7505.2 of the Business and Professions Code is
amended and renumbered to read:
7507.125. Nothing in this chapter prohibits the using or taking
of personal effects that are 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. Nothing in this
chapter prohibits the removal of a locking mechanism or security
device on the collateral, before, during, or after a repossession. No
storage fee shall be charged for the first week on any personal
effects used to effectuate a recovery pursuant to this section. Any
personal effects used or taken pursuant to this section shall be
processed in a reasonably expedient manner pursuant to Sections
7507.9 and 7507.10.
SEC. 4. Section 7507.115 of the Business and Professions Code is
amended to read:
7507.115. (a) A licensee shall not appraise or determine the
value of any collateral, whether damaged or not.
(b) (1) Notwithstanding subdivision (a), a licensee may complete a
condition report that makes a general assessment of the collateral.
(2) A condition report does not include all damage or missing
parts.
(3) A condition report shall include the following statement: "In
accordance with Section 7505.115 of the Business and Professions
Code, this condition report is a general assessment of the collateral
and does not include all damage or missing parts."
SEC. 5. Section 7508.1 of the Business and Professions Code is
amended to read:
7508.1. The director may assess administrative fines for the
following prohibited acts:
(a) Knowingly making any false report to his or her employer or
client for whom information was being obtained. The fine shall be one
hundred dollars ($100) for the first violation, and five hundred
dollars ($500) for each violation thereafter.
(b) Using any identification to indicate registration as a
repossessor, other than the bureau-issued registration card, except
an employer identification card issued by the repossession agency
which has met bureau approval, or a badge, cap insignia, or jacket
patch as provided in Section 7508.8. A bureau-issued registration
card shall be carried by those individuals specified by Section
7506.3, and shall be shown on demand to any bureau employee or law
enforcement officer. The fine shall be twenty-five dollars ($25) for
each violation.
(c) Using an alias in connection with the official activities of
the licensee's business. A notice of warning shall be issued for the
first violation. Thereafter the fine shall be twenty-five dollars
($25) for each violation.
(d) Appearing as an assignee party in any court proceeding
involving claim and delivery, replevin, or other possessory court
action, action to foreclose a chattel mortgage, mechanic's lien,
materialman's lien, or any other lien. This section shall not
prohibit a licensee from appearing as a defendant in any of the
preceding actions. The fine shall be one hundred dollars ($100) for
each violation.
SEC. 6. Section 7508.4 of the Business and Professions Code is
amended to read:
7508.4. The director may assess administrative fines for any of
the following prohibited acts:
(a) Conducting business from any location other than that location
to which a license was issued or conducting a business as an
individual, partnership, limited liability company, or corporation
unless the licensee holds a valid license issued to that exact same
individual, partnership, limited liability company, or corporation.
The fine shall be one thousand dollars ($1,000) for each violation.
(b) Aiding or abetting an unlicensed repossessor or assigning his
or her license. "Assigning his or her license" means that no licensee
shall permit a registrant, employee, or agent in his or her own name
to advertise, engage clients, furnish reports, or present bills to
clients, or in any manner whatsoever to conduct business for which a
license is required under this chapter. The fine shall be one
thousand dollars ($1,000) for each violation.
(c) Failing to register registrants within 15 days. The fine shall
be two hundred fifty dollars ($250) for each of the first two
violations and one thousand dollars ($1,000) for each violation
thereafter.
(d) Employing a person whose registration has expired or been
revoked, denied, suspended, or canceled, if the bureau has furnished
a listing of these persons to the licensee. The fine shall be
twenty-five dollars ($25) for each violation.
(e) Failing to notify the bureau, within 30 days, of any change in
officers. A notice of warning shall be issued for the first
violation. Thereafter, the fine shall be twenty-five dollars ($25)
for each violation.
(f) Failing to submit the notices regarding a violent act or
threatened violent act within seven days pursuant to Section 7507.6
or to submit a copy of a judgment awarded against the licensee for an
amount of more than the then prevailing maximum claim that may be
brought in small claims court within seven days pursuant to Section
7507.7. The fine shall be twenty-five dollars ($25) for the first
violation and one hundred dollars ($100) per violation thereafter.
(g) Failing to include the licensee's name, address, and license
number in any advertisement. A notice of warning shall be issued for
the first violation. Thereafter, the fine shall be twenty-five
dollars ($25) for each violation.
(h) Failing to maintain personal effects for at least 60 days. The
fine shall be twenty-five dollars ($25) for the first violation and
one hundred dollars ($100) for each violation thereafter.
(i) Failing to provide a personal effects list or a notice of
seizure within the time limits set forth in Section 7507.9 or
7507.10. The fine shall be twenty-five dollars ($25) for the first
violation and one hundred dollars ($100) for each violation
thereafter.
(j) Failing to file the required report pursuant to Section 28 of
the Vehicle Code. 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.
(k) Failing to maintain an accurate record and accounting of
secure temporary registration forms. The qualified certificate holder
shall be fined twenty-five dollars ($25) for the first violation,
one hundred dollars ($100) for the second violation, two hundred
fifty dollars ($250) for the third violation, and two hundred fifty
dollars ($250) plus a one-year suspension of the privilege to issue
temporary registrations pursuant to Section 7506.9 for the fourth and
subsequent violations.
(l) Representing that a licensee has an office and conducts
business at a specific address when that is not the case. The fine
shall be five thousand dollars ($5,000) for each violation.
(m) Notwithstanding any other provision of law, the money in the
Private Security Services Fund that is attributable to administrative
fines imposed pursuant to subdivision (c) shall not be continuously
appropriated and shall be available for expenditure only upon
appropriation by the Legislature.
SEC. 7. Section 7508.5 of the Business and Professions Code is
amended to read:
7508.5. The director may assess administrative fines against a
repossession agency registrant for the following acts, in addition to
fines imposed pursuant to any other section in this article. The
fine shall be twenty-five dollars ($25) for each of the following
violations:
(a) Knowingly submit a false report.
(b) Submitting a report to a client without authorization by his
or her employer.
(c) Failing to carry a bureau-issued identification card and
failing to show that card upon demand to a bureau employee or a law
enforcement officer.
(d) Failing to register.
(e) Failing to return his or her registration card to the employer
upon termination.
(f) Failing to report a violent act involving the registrant to
the licensee or the licensee's qualified certificate holder within 24
hours.
SEC. 8. Section 41612 of the Government Code is amended to read:
41612. After possession is taken of any vehicle by or on behalf
of any legal owner thereof under the terms of a security agreement or
lease agreement, the debtor shall pay the chief of police or a
parking authority operated by a city and county a fee of fifteen
dollars ($15) for the receipt and filing of the report of
repossession pursuant to Section 28 of the Vehicle Code before the
vehicle may be redeemed by the debtor. Any person in possession of
the vehicle shall not release it to the debtor without first
obtaining proof of payment of the fee to the chief of police or
parking authority. The proof of payment, or a copy thereof, shall be
retained by the party releasing possession to the debtor for the
period required by law. An individual working for a repossession
agency licensed pursuant to Chapter 11 (commencing with Section 7500)
of Division 3 of the Business and Professions Code shall not pay the
fee to, or retrieve the receipt from, the chief of police or parking
authority.
SEC. 9. Section 28 of the Vehicle Code is amended to read:
28. (a) Whenever possession is taken of any vehicle by or on
behalf of its legal owner under the terms of a security agreement or
lease agreement, the person taking possession shall contact, for the
purpose of providing the information required pursuant to subdivision
(d) within one hour, after taking possession of the vehicle, by the
most expeditious means available, the city police department where
the taking of possession occurred, if within an incorporated city, or
the sheriff's department of the county where the taking of
possession occurred, if outside an incorporated city, or the police
department of a campus of the University of California or the
California State University, if the taking of possession occurred on
that campus, and shall within one business day forward a written
notice to the city police or sheriff's department. If, after an
attempt to notify, law enforcement is unable to receive and record
the notification required pursuant to subdivision (d), the person
taking possession of the vehicle shall continue to attempt
notification until the information required pursuant to subdivision
(d) is provided.
(b) If possession is taken of more than one vehicle, the
possession of each vehicle shall be considered and reported as a
separate event.
(c) Any person failing to notify the city police department,
sheriff's department, or campus police department as required by this
section is guilty of an infraction, and shall be fined a minimum of
three hundred dollars ($300), and up to five hundred dollars ($500).
The district attorney, city attorney, or city prosecutor shall
promptly notify the Bureau of Security and Investigative Services of
any conviction resulting from a violation of this section.
(d) For the notification required by this section, the person
shall report only the following information and in the following
order:
(1) The approximate location of the repossession.
(2) The date and approximate time of the repossession.
(3) The vehicle year, make, and model.
(4) The last six digits of the vehicle identification number.
(5) The registered owner as provided on the repossession
assignment.
(6) The legal owner requesting the repossession as provided on the
repossession assignment.
(7) The name of the repossession agency.
(8) The telephone number of the repossession agency.
SEC. 10. Section 4000 of the Vehicle Code is amended to read:
4000. (a) (1) A person shall not drive, move, or leave standing
upon a highway, or in an offstreet public parking facility, any motor
vehicle, trailer, semitrailer, pole or pipe dolly, or logging dolly,
unless it is registered and the appropriate fees have been paid
under this code or registered under the permanent trailer
identification program, except that an off-highway motor vehicle
which displays an identification plate or device issued by the
department pursuant to Section 38010 may be driven, moved, or left
standing in an offstreet public parking facility without being
registered or paying registration fees.
(2) For purposes of this subdivision, "offstreet public parking
facility" means either of the following:
(A) Any publicly owned parking facility.
(B) Any privately owned parking facility for which no fee for the
privilege to park is charged and which is held open for the common
public use of retail customers.
(3) This subdivision does not apply to any motor vehicle stored in
a privately owned offstreet parking facility by, or with the express
permission of, the owner of the privately owned offstreet parking
facility.
(4) Beginning July 1, 2011, the enforcement of paragraph (1) shall
commence on the first day of the second month following the month of
expiration of the vehicle's registration. This paragraph shall
become inoperative on January 1, 2012.
(b) No person shall drive, move, or leave standing upon a highway
any motor vehicle, as defined in Chapter 2 (commencing with Section
39010) of Part 1 of Division 26 of the Health and Safety Code, that
has been registered in violation of Part 5 (commencing with Section
43000) of Division 26 of the Health and Safety Code.
(c) Subdivisions (a) and (b) do not apply to off-highway motor
vehicles operated pursuant to Sections 38025 and 38026.5.
(d) This section does not apply, following payment of fees due for
registration, during the time that registration and transfer is
being withheld by the department pending the investigation of any use
tax due under the Revenue and Taxation Code.
(e) Subdivision (a) does not apply to a vehicle that is towed by a
tow truck on the order of a sheriff, marshal, or other official
acting pursuant to a court order or on the order of a peace officer
acting pursuant to this code.
(f) Subdivision (a) applies to a vehicle that is towed from a
highway or offstreet parking facility under the direction of a
highway service organization when that organization is providing
emergency roadside assistance to that vehicle. However, the operator
of a tow truck providing that assistance to that vehicle is not
responsible for the violation of subdivision (a) with respect to that
vehicle. The owner of an unregistered vehicle that is disabled and
located on private property, shall obtain a permit from the
department pursuant to Section 4003 prior to having the vehicle towed
on the highway.
(g) (1) Pursuant to Section 4022 and to subparagraph (B) of
paragraph (3) of subdivision (o) of Section 22651, a vehicle obtained
by a licensed repossessor as a release of collateral is exempt from
registration pursuant to this section for purposes of the repossessor
removing the vehicle to his or her storage facility or the facility
of the legal owner. A law enforcement agency, impounding authority,
tow yard, storage facility, or any other person in possession of the
collateral shall release the vehicle without requiring current
registration and pursuant to subdivision (f) of Section 14602.6.
(2) The legal owner of collateral shall, by operation of law and
without requiring further action, indemnify and hold harmless a law
enforcement agency, city, county, city and county, the state, a tow
yard, storage facility, or an impounding yard from a claim arising
out of the release of the collateral to a licensee, and from any
damage to the collateral after its release, including reasonable
attorney's fees and costs associated with defending a claim, if the
collateral was released in compliance with this subdivision.
(h) For purposes of this section, possession of a California
driver's license by the registered owner of a vehicle shall give rise
to a rebuttable presumption that the owner is a resident of
California.
SEC. 11. Section 10856 is added to the Vehicle Code, to read:
10856. (a) A person shall not interfere with the transport of a
vehicle to a storage facility, auction, or dealer by an individual
who is employed by a repossession agency or who is licensed pursuant
to Chapter 11 (commencing with Section 7500) of Division 3 of the
Business and Professions Code once repossession is complete as
provided in Section 7507.12 of the Business and Professions Code.
This subdivision shall not apply to a peace officer while acting in
an official capacity.
(b) Any tow yard, impounding agency, or governmental agency, or
any person acting on behalf of those entities, shall not refuse to
release a vehicle or other collateral to anyone that is legally
entitled to that vehicle or other collateral. This subdivision shall
not apply to a vehicle being held for evidence by law enforcement or
a prosecuting attorney.
SEC. 12. Section 11705 of the Vehicle Code is amended to read:
11705. (a) The department, after notice and hearing, may suspend
or revoke the license issued to a dealer, transporter, manufacturer,
manufacturer branch, remanufacturer, remanufacturer branch,
distributor, or distributor branch upon determining that the person
to whom the license was issued is not lawfully entitled thereto, or
has done any of the following:
(1) Filed an application for the license using a false or
fictitious name not registered with the proper authorities, or
knowingly made a false statement or knowingly concealed a material
fact, in the application for the license.
(2) Made, or knowingly or negligently permitted, an illegal use of
the special plates issued to the licensee.
(3) Used a false or fictitious name, knowingly made a false
statement, or knowingly concealed a material fact, in an application
for the registration of a vehicle, or otherwise committed a fraud in
the application.
(4) Failed to deliver to a transferee lawfully entitled thereto a
properly endorsed certificate of ownership.
(5) Knowingly purchased, sold, or otherwise acquired or disposed
of a stolen motor vehicle.
(6) Failed to provide and maintain a clear physical division
between the type of business licensed pursuant to this chapter and
any other type of business conducted at the established place of
business.
(7) Willfully violated Section 3064 or 3065 or any rule or
regulation adopted pursuant thereto.
(8) Violated any provision of Division 3 (commencing with Section
4000) or any rule or regulation adopted pursuant thereto, or
subdivision (a) of Section 38200.
(9) Violated any provision of Division 4 (commencing with Section
10500) or any rule or regulation adopted pursuant thereto.
(10) Violated any provision of Article 1 (commencing with Section
11700) of Chapter 4 of Division 5 or any rule or regulation adopted
pursuant thereto.
(11) Violated any provision of Part 5 (commencing with Section
10701) of Division 2 of the Revenue and Taxation Code or any rule or
regulation adopted pursuant thereto.
(12) Violated any provision of Chapter 3332b (commencing with
Section 2981) of Title 14 of Part 4 of Division 3 of the Civil Code
or any rule or regulation adopted pursuant thereto.
(13) Submitted a check, draft, or money order to the department
for any obligation or fee due the state which was dishonored or
refused payment upon presentation.
(14) Has caused any person to suffer any loss or damage by reason
of any fraud or deceit practiced on that person or fraudulent
representations made to that person in the course of the licensed
activity.
For purposes of this paragraph, "fraud" includes any act or
omission which is included within the definition of either "actual
fraud" or "constructive fraud" as defined in Sections 1572 and 1573
of the Civil Code, and "deceit" has the same meaning as defined in
Section 1710 of the Civil Code. In addition, "fraud" and "deceit"
include, but are not limited to, a misrepresentation in any manner,
whether intentionally false or due to gross negligence, of a material
fact; a promise or representation not made honestly and in good
faith; an intentional failure to disclose a material fact; and any
act within Section 484 of the Penal Code.
For purposes of this paragraph, "person" also includes a
governmental entity.
(15) Failed to meet the terms and conditions of an agreement
entered into pursuant to Section 11707.
(16) Violated Section 43151, 43152, or 43153 of, or subdivision
(b) of Section 44072.10 of, the Health and Safety Code.
(17) Failed to repay a claim paid by the Consumer Motor Vehicle
Recovery Corporation as provided in subdivision (i) of Section 11703.
(18) As a buy-here-pay-here dealer, violated any provision of
Chapter 11 (commencing with Section 7500) of Divisions 3 of the
Business and Professions Code or any rule or regulation adopted
pursuant to those provisions.
(b) Any of the causes specified in this chapter as a cause for
refusal to issue a license to a transporter, manufacturer,
manufacturer branch, remanufacturer, remanufacturer branch,
distributor, distributor branch, or dealer applicant is cause to
suspend or revoke a license issued to a transporter, manufacturer,
manufacturer branch, remanufacturer, remanufacturer branch,
distributor, distributor branch, or dealer.
(c) Except as provided in Section 11707, every hearing provided
for in this section shall be conducted pursuant to Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code.
SEC. 13. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
SEC. 14. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to preserve public peace by prohibiting a person from
interfering with the transport of a vehicle to a storage facility,
auction, or dealer by a repossessor, it is necessary that this act
take effect immediately.
