Collateral recovery: 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 under the supervision and control of the Director of Consumer Affairs. Existing law requires an applicant for an initial registration or a reregistration to submit an application to the bureau and include certain personal information in the application that is confidential and is prohibited from being disclosed to the public, except for the registrant's full name, the licensee's name and address, and the registration number. A violation of the act is a crime. This bill would prohibit, except as otherwise provided by law, a repossession agency from disclosing to the public, without a court order, the residence address, residence telephone number, cellular telephone number, driver's license number, work schedule, past, present, or future location, or any other personal information of any licensee, registrant, qualified certificate holder, qualified manager, employee, or independent contractor that it employs. By creating a new crime, the bill would impose a state-mandated local program. (2) Existing law declares that nothing in the act 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. The bill would additionally declare that the act does not prohibit the removal of a locking mechanism or security device on the collateral, before, during, or after a repossession. (3) Existing law allows a licensed repossession agency or its registrants to make demand for payment in lieu of repossession, if the demand is made pursuant to an assignment for repossession. Existing law permits the director to assess an administrative fine for specified violations of the act. This bill would prohibit a licensed repossession agency or its registrants from making a demand for payment in lieu of repossession. The bill would also prohibit a repossession agency from selling collateral recovered under the provisions of the act. The bill would modify the director's authority to assess administrative fines for specified violations of the act and would increase those fines. By creating a new crime, the bill would impose a state-mandated local program. The bill would make conforming changes. The bill would also allow a person affiliated with a repossession agency to wear an oval, shield, round, square, or non-7-point badge, cap insignia, or jacket patch if it bears on its face all or a substantial part of the repossession agency's name, the repossession agency license number issued by the Director of Consumer Affairs to that individual or agency, and the word "repossessor." The bill would require all badges, cap insignias, and jacket patches worn by a repossessor to be a standard design approved by the director and to be clearly visible. The bill would prohibit a repossessor from wearing a badge on his or her belt and from hanging a badge around his or her neck. The bill would make these provisions inapplicable to a holder of a temporary registration, as specified. The bill would authorize the director to assess a fine of $100 for the first violation, $175 for the second violation, and $250 for each violation thereafter. By creating a new crime, the bill would impose a state-mandated local program. (4) "Collateral" is defined, for purposes of the act, as any specific vehicle, trailer, boat, recreational vehicle, motor home, appliance, or other property that is subject to a security agreement. Existing law provides, with regard to collateral subject to registration under the Vehicle Code, that a repossession is complete when the repossessor gains entry to the collateral, or when the collateral becomes connected to a tow truck or the repossessor's tow vehicle. This bill additionally would declare that repossession is complete when the repossessor moves the entire collateral present or the repossessor gains control of the collateral. (5) 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.