Bill Text: CA AB2228 | 2023-2024 | Regular Session | Amended
Bill Title: Collateral recovery: notice.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-05-29 - Referred to Com. on B., P. & E. D. [AB2228 Detail]
Download: California-2023-AB2228-Amended.html
Amended
IN
Assembly
April 24, 2024 |
Amended
IN
Assembly
April 10, 2024 |
Introduced by Assembly Member Villapudua |
February 07, 2024 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law requires the notice to include, among other things, a disclosure of the charges payable by the debtor to the repossession agency for the storage of the collateral and personal effects from the date of repossession until release of the property from storage.
This bill would prohibit any of those disclosed charges from being determined by any entity other than the repossession agency. The bill would also require that any charges payable by the debtor to the repossession agency for the storage of the
collateral and personal effects from the date of repossession until release of the property from storage and the disclosure of those changes
be confidential. Because a violation of these requirements would be a crime, the bill would impose a state-mandated local program.
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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 7507.9 of the Business and Professions Code is amended to read:7507.9.
Personal effects shall be removed from the collateral, including any personal effect that is mounted but detachable from the collateral by a release mechanism. A complete and accurate inventory of the personal effects shall be made, and the personal effects shall be labeled and stored by the licensee for a minimum of 60 days in a secure manner, except those personal effects removed by or in the presence of the debtor or the party in possession of the collateral at the time of the repossession. If the licensee or the licensee’s agent cannot determine whether the property attached to the collateral is a personal effect or a part of the collateral, then that fact shall be noted on the inventory and the licensee or agent shall not be obligated to remove the item from the collateral, unless the item can be removed without the use of tools, in which case it shall be removed and inventoried. The licensee or the licensee’s agent shall notify the debtor that if the debtor takes the position that an item is a personal effect, then the debtor shall contact the legal owner to resolve the issue.SEC. 2.
Section 7507.10 of the Business and Professions Code is amended to read:7507.10.
(a) A licensee shall serve a debtor with a notice of seizure as soon as possible after the recovery of collateral and not later than 48 hours, except that if the 48-hour period encompasses a Saturday, Sunday, or postal holiday, the notice of seizure shall be provided not later than 72 hours or, if the 48-hour period encompasses a Saturday or Sunday and a postal holiday, the notice of seizure shall be provided not later than 96 hours, after the repossession of collateral. The notice shall include all of the following:(b)Any charges payable by the debtor to the repossession agency for the storage of the collateral and personal effects from the date of repossession until release of the property from storage, as disclosed under paragraph (6) of subdivision (a), shall not be determined by any entity other than the repossession agency.
(c)The notice under subdivision (a) and any disclosure of charges payable by the debtor to the repossession agency for the storage of the collateral and personal effects from the date of repossession until release of the property from
storage shall be confidential.
(d)
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.