Bill Text: CA AB290 | 2017-2018 | Regular Session | Amended


Bill Title: Collateral recovery: repossession agencies.

Spectrum: Slight Partisan Bill (Democrat 5-2)

Status: (Engrossed) 2017-06-27 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (June 26). Re-referred to Com. on APPR. [AB290 Detail]

Download: California-2017-AB290-Amended.html

Amended  IN  Senate  June 20, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 290


Introduced by Assembly Member Salas
(Coauthors: Assembly Members Bigelow and Arambula)
(Coauthors: Senators Dodd and Galgiani Dodd, Galgiani, Glazer, and Wilk)

February 02, 2017


An act to repeal and amend Section 7500.3 of the Business and Professions Code, relating to collateral recovery.


LEGISLATIVE COUNSEL'S DIGEST


AB 290, as amended, Salas. Collateral recovery: repossession agencies.
Existing law, the Collateral Recovery Act, provides for the licensure and regulation of repossession agencies by the Bureau of Security and Investigative Services Services, which is under the supervision and control of the Director of Consumer Affairs Affairs, and, until January 1, 2018, defines repossession agency as not including certain persons and entities, such as a dealer regularly engaged in the sale of collateral designed primarily for agricultural use.
This bill would extend the above definition of repossession agency indefinitely.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 7500.3 of the Business and Professions Code, as added by Section 2 of Chapter 476 of the Statutes of 2012, is repealed.

SEC. 2.

 Section 7500.3 of the Business and Professions Code, as amended by Section 2 of Chapter 740 of the Statutes of 2015, is amended to read:

7500.3.
 (a) A repossession agency shall not include any of the following:
(1) Any bank subject to the jurisdiction of the Commissioner of Financial Institutions of the State of California under Division 1 (commencing with Section 99) of the Financial Code or the Comptroller of the Currency of the United States.
(2) Any person organized, chartered, or holding a license or authorization certificate to make loans pursuant to the laws of this state or the United States who is subject to supervision by any official or agency of this state or the United States.
(3) An attorney at law in performing his or her duties as an attorney at law.
(4) The legal owner of collateral that is subject to a security agreement; agreement or a bona fide employee employed exclusively and regularly by the legal owner of collateral that is subject to a security agreement. With regard to collateral subject to registration under the Vehicle Code, the legal owner shall be the legal owner listed on the records of the Department of Motor Vehicles or the seller or lessor named on a valid conditional sales contract or rental or lease agreement if the seller or lessor is a licensed vehicle dealer as defined in Section 285 of the Vehicle Code.
(5) An officer or employee of the United States of America, or of this state or a political subdivision thereof, while the officer or employee is engaged in the performance of his or her official duties.
(6) A qualified certificate holder or a registrant when performing services for, or on behalf of, a licensee.
(7) A dealer, including its bona fide employees, regularly engaged in the sale of collateral designed primarily for agricultural use, as defined in subdivision (b) of Section 51201 of the Government Code, for use in the care of lawns and gardens, or for use as special construction equipment, as defined in subdivision (b) of Section 565 of the Vehicle Code, or for use in the production, generation, storage, or transmission of mechanical or electric energy, that is subject to a security agreement of the manufacturer or an affiliate of that manufacturer, provided the following requirements are met:
(A) The dealer or the secured party maintains adequate records of all repossessions.
(B) The dealer or the secured party completes a collateral condition report.
(C) The dealer or the secured party records any odometer or hour meter readings.
(D) The dealer or the secured party creates records of all transactions pertaining to the sale of the collateral, including, but not limited to, bids solicited and received, cash received, remittances to the seller, and allocation of any moneys not so remitted to appropriate ledger accounts.
(E) The dealer removes and stores any personal effects that were taken with the collateral for a minimum of 60 days in a secure manner, completes an inventory of the personal effects, and notes the date that inventory is taken.
(F) If personal effects that were taken with the collateral are to be released to someone other than the debtor, the dealer shall request written authorization to do so from the debtor. The dealer may dispose of personal effects after storing them for at least 60 days pursuant to subparagraph (E).
(b) Entities described in paragraph (7) of subdivision (a), or a debtor, lienholder, lessor or, lessor, lessee, registered owner, or an agent thereof shall not by any means, directly or indirectly, expressed or implied, instruct, coerce, or attempt to coerce another person to violate any law, regulation, or rule regarding the recovery of collateral, including, but not limited to, the provisions of this chapter or Section 9609 of the Commercial Code.