Repossession agencies: exemptions.

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. A violation of the act is a misdemeanor. The act provides that a repossession agency does not include the legal owner of collateral that is subject to a security agreement or a bona fide employee of the legal owner of collateral that is subject to a security agreement. This bill would, until January 1, 2018, add that a repossession agency does not include a dealer regularly engaged in the sale of specified collateral that is subject to a specified security agreement, and that dealer's bona fide employees, provided that specified requirements are met. The bill would also prohibit, until January 1, 2018, the dealer, its bona fide employees, and other specified entities from instructing, coercing, or attempting to coerce another person to violate laws, regulations, and rules regarding the recovery of collateral, as specified. Because a violation of this prohibition 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.