Bill Text: CA AB2228 | 2023-2024 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2228
| Introduced by Assembly Member Villapudua |
February 07, 2024 |
An act to amend Section 7507.10 of, and to add Section 7507.105 to, the Business and Professions Code, relating to collateral recovery.
LEGISLATIVE COUNSEL'S DIGEST
AB 2228, as introduced, Villapudua.
Collateral recovery: notice and disclosure.
The Collateral Recovery Act, a violation of which is punishable as a misdemeanor, 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 licensees to serve a debtor with a specified notice of seizure after the recovery of collateral by the licensee by regular mail addressed to the last known address of the debtor or by personal service at the option of the repossession agency.
This bill would provide that the notice may instead be given by regular mail addressed to the current address of the debtor, if known, by personal service, or by email, if known, at the option of the repossession agency.
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 provide 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 are confidential, except under specified circumstances. 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: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 7507.10 of the Business and Professions Code, as amended by Section 4 of Chapter 322 of the Statutes of 2009, is amended to read:7507.10.
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:(a) The name, address, and telephone number of the legal owner to be contacted regarding the repossession.
(b) The name, address, and telephone number of the repossession agency to be contacted regarding the repossession.
(c) A statement printed on the notice containing the following:
“Repossessors are regulated by the Bureau of Security and Investigative Services, Department of Consumer Affairs, Sacramento, CA. Repossessors are required to provide you, not later than 48 hours after the recovery of collateral, with an inventory of personal effects or other personal property recovered during repossession unless the 48-hour period encompasses a Saturday, Sunday, or a postal holiday, then the inventory shall be provided no later than 96 hours after the recovery of collateral.”
(d) A disclosure that “Damage to a vehicle during or subsequent to a repossession and only while the vehicle is in possession of the repossession agency and which is caused by the repossession agency is the liability of the repossession agency. A mechanical, electrical, or tire failure, or the loss of, or any damage to, or as a result of, or caused by, any aftermarket parts and accessories not in compliance with Section 24008 of the Vehicle Code shall not be the responsibility of the
repossession agency unless the failure, damage, or loss is due to the negligence of the repossession agency.”
(e) If applicable, a disclosure that “Environmental, Olympic, special interest, or other license plates issued pursuant to Article 8 (commencing with Section 5000), Article 8.4 (commencing with Section 5060) or Article 8.5 (commencing with Section 5100) of Chapter 1 of Division 3 of the Vehicle Code that remain the personal effects of the debtor will be removed from the collateral and inventoried, and that if the plates are not claimed by the debtor within 60 days, they will be destroyed.”
(f) 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.
The notice may be given by regular mail addressed to the last known
current address of the debtor or debtor, if known, by personal service service, or by email, if known, at the option of the repossession agency.
SEC. 2.
Section 7507.105 is added to the Business and Professions Code, immediately following Section 7507.10, to read:7507.105.
(a) 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 in subdivision (f) of Section 7507.10, shall not be determined by any entity other than the repossession agency.(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, and the disclosure provided pursuant to subdivision (f) of Section 7507.10, shall be confidential. A licensee shall only disclose the contents of the inventory under the following circumstances:
(1) In response to the order of a court having jurisdiction to issue the order.
(2) In
compliance with a lawful subpoena issued by a court of competent jurisdiction.
(3) When the debtor has consented in writing to the release and the written consent is signed and dated by the debtor subsequent to the repossession and states the entity or entities to whom the charges may be disclosed.
(4) To the debtor.
