California Assembly Bill AB2503 Amended / Bill

 BILL NUMBER: AB 2503AMENDED BILL TEXT AMENDED IN SENATE JUNE 23, 2014 AMENDED IN ASSEMBLY APRIL 23, 2014 AMENDED IN ASSEMBLY APRIL 21, 2014 AMENDED IN ASSEMBLY APRIL 1, 2014 INTRODUCED BY Assembly Member Hagman FEBRUARY 21, 2014 An act to amend Sections  7500.2,  7502.2, 7505.3, 7507.3,  7507.115,  7508.1,  7508.4,  and 7508.5 of  , and to amend and renumber Section 7505.2 of,  the Business and Professions Code,  to amend Section 41612 of the Government Code,  and to amend Sections 28, 4000, and 9561 of, and to add Section 10856 to, the Vehicle Code, relating to repossessors  ,   and declaring the urgency thereof, to take effect immediately  . LEGISLATIVE COUNSEL'S DIGEST AB 2503, as amended, Hagman. 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. A violation of the act is a crime.   This bill would prohibit a licensed repossession agency from allowing any other person or entity to operate or transact business under the license of the repossession agency. By expanding the scope of a crime, the bill would impose a state-mandated local program.   (1)   (2)  Under existing law, a financial institution that knowingly engages a nonexempt unlicensed person to repossess collateral on its behalf is guilty of a misdemeanor. This bill would expand the above crime to apply to a buy-here-pay-here dealer, as defined. By expanding the scope of a crime, the bill would impose a state-mandated local program.  (2)   (3)  Existing law allows a repossession business to continue on a license for 120 days when the qualified certificate holder actively in charge of the office ceases to be in charge because of the death of the licenseholder. Existing law requires a written notice to be made to the Bureau of Security and Investigative Services. This bill would increase the period to 180 days and would require the written notice to identify the person in charge of running the day-to-day operations of the business.  (4) Existing law prohibits a repossessor from appraising the value of any collateral.   The bill would further prohibit the appraisal or determination of the value of any collateral, whether damaged or not. The bill would also prohibit a condition report that assesses the collateral from containing specified items or descriptions. By expanding the scope of a crime, the bill would impose a state-mandated local program.   (3)   (5)  Existing law authorizes the Director of Consumer Affairs to assess administrative fines for various prohibited acts, including using any identification to indicate registration as a repossessor, other than a registration card issued by the Bureau of Security and Investigative Services, except an employer identification card issued by the repossession agency which has bureau approval. Existing law allows an employee of a repossession agency to wear a badge, cap insignia, or jacket patch meeting specified requirements. This bill would except a badge, cap insignia, or jacket patch from the prohibition on using any identification to indicate registration as a repossessor.  (6) Existing law authorizes the Director of Consumer Affairs to assess an administrative fine for the failure to present a debtor with an itemized receipt of payment, if payment is made in lieu of repossession.   This bill would delete this provision.   (7) Existing law requires that when possession is taken of a vehicle by or on behalf of a legal owner under the terms of a security or lease agreement, the debtor pay the police or parking authority a specified fee. Existing law prohibits the release of the vehicle to the debtor until the debtor provides proof of payment or pays the fee and an administrative fee to the person in possession or the legal owner. Existing law also provides for a fine if the fee is not transmitted to the police or parking authority. Existing law requires proof of payment to be retained by the party releasing possession to the debtor.   This bill would delete the provisions that allow the release of a vehicle to a debtor who pays the fee and an administrative fee to the person in possession or the legal owner. The bill would make other conforming changes to this provision.   (4)   (8)  Existing law requires the person taking possession of a vehicle whenever possession is taken by or on behalf of any legal owner under the terms of a security agreement or lease agreement to notify local law enforcement within one hour of the repossession, as specified. Violation of these provisions is a crime. This bill would require the repossessor to attempt notification within one hour, and to accomplish notification within 2 hours of the repossession, and would specify information that would be required to be provided in the notification. By expanding the provisions of existing law, the violation of which is a crime, this bill would impose a state-mandated local program.  (5)   (9)   Existing law prohibits a person from driving, moving, or leaving standing upon a highway or offstreet public parking facility any motor vehicle or other specified vehicle, unless it is registered and the appropriate fees have been paid.  Existing law provides that a vehicle repossessed pursuant to the terms of a security agreement is exempt from registration solely for the purpose of transporting the vehicle from the point of repossession to the storage facilities of the repossessor, and from the storage facilities to the legal owner or a licensed motor vehicle auction, provided that the repossessor transports with the vehicle the appropriate documents authorizing the repossession and makes them available to a law enforcement officer on request. This bill would additionally  provide that a vehicle repossessed pursuant to the terms of a security agreement is  exempt  a licensed repossessor  from registration solely for the purpose of obtaining  a  release  of the vehicle   or the collateral  from a law enforcement  entity   agency  , impounding authority, tow yard, storage facility, or any other person or company that has possession of the vehicle,  provided that the repossessor transports with the vehicle the appropriate documents authorizing the repossession and makes them available to a law enforcement officer on request   as specified  .  (6)   (10)  Existing law provides that if the legal owner, or his or her agent, repossesses a vehicle on which registration renewal fees are due, the Department of Motor Vehicles is to waive any renewal penalties that are due for late payment if the fees are paid within 60 days of taking possession. This bill would apply those provisions to a repossession by a repossessor.  (7)   (11)  Existing law establishes offenses for, among other things, willfully tampering or injuring a vehicle or its contents, as specified. This bill would prohibit a person from interfering with the transport of a vehicle to a storage facility, auction, or dealer by  a repossessor   an individual who is employed by a repossession agency  once repossession is complete, as provided. Violation of these provisions would be an infraction pursuant to other provisions of law. By creating a new crime, this bill would impose a state-mandated local program.  (8)   (12)  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.  (13) This bill would declare that it is to take effect immediately as an urgency statute.  Vote:  majority   2/3  . Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 7500.2 of the   Business and Professions Code   is amended to read:  7500.2.  (a)    A repossession agency means and includes any person who, for any consideration whatsoever, engages in business or accepts employment to locate or recover collateral, whether voluntarily or involuntarily, including, but not limited to, collateral registered under the provisions of the Vehicle Code which is subject to a security agreement, except for any person registered pursuant to Article 7 (commencing with Section 7506).  (b) A repossession agency licensed pursuant to this chapter shall not allow any other person or entity to operate or transact business under the license of the repossession agency.   SECTION 1.   SEC. 2.  Section 7502.2 of the Business and Professions Code is amended to read: 7502.2. (a) A financial institution or a buy-here-pay-here dealer, as defined by Section 241 of the Vehicle Code, that knowingly engages a nonexempt unlicensed person to repossess collateral on its behalf is guilty of a misdemeanor, and is punishable by a fine of five thousand dollars ($5,000). (b) Within existing resources, the Commissioner of Business Oversight may designate employees to investigate and report on violations of this section by any of the licensees of the department. Those employees are authorized to actively cooperate with the bureau in the investigation of those activities. (c) A proceeding to impose the fine specified in subdivision (a) may be brought in any court of competent jurisdiction in the name of the people of the State of California by the Attorney General or by any district attorney or city attorney, or with the consent of the district attorney, by the city prosecutor in any city or city and county having a full-time city prosecutor, for the jurisdiction in which the violation occurred. If the action is brought by a district attorney, the penalty collected shall be paid to the treasurer of the county in which the judgment is entered. If the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered and one-half to the treasurer of the county in which the judgment was entered. If the action is brought by the Attorney General, all of the penalty collected shall be deposited in the Private Security Services Fund.  SEC. 3.   Section 7505.2 of the   Business and Professions Code   is amended and renumbered to read:   7505.2.   7507.125.  Nothing in this chapter 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. Nothing in this chapter prohibits the removal of a locking mechanism or security device on the collateral, before, during, or after a repossession. No storage fee shall be charged for the first week on any personal effects used to effectuate a recovery pursuant to this section. Any personal effects used or taken pursuant to this section shall be processed in a reasonably expedient manner pursuant to Sections 7507.9 and 7507.10.  SEC. 2.   SEC. 4.  Section 7505.3 of the Business and Professions Code is amended to read: 7505.3. (a) Whenever a qualified certificate holder actively in charge of an office ceases to be in charge, the licensee shall file with the bureau notice, in writing, within 30 days from the cessation. If the notice is filed, the license shall remain in force for a period of 90 days after the filing of the notice. At the end of the 90-day period or an additional period, not to exceed one year, as specified by the director, if written notice is not given that a qualified person is then actively in charge of the office, the agency license shall be automatically suspended. If the licensee shall fail to give written notice at the end of the 30-day period, the agency license shall be automatically suspended. A license suspended under this section may be reinstated upon payment of the reinstatement fee and submission of a reinstatement application. A person who performs any act for which a repossession agency license is required during the period of suspension is subject to the penal provisions of Article 3 (commencing with Section 7502), in addition to the provisions of Article 9 (commencing with Section 7508) and Article 10 (commencing with Section 7510). (b) In case of the death of a person licensed as an individual, a member of the immediate family of the deceased licensee shall be entitled to continue the business under the same license for 180 days following the death of the licensee, provided that written notice is made to the bureau within 30 days following the death of the licensee. The notice shall identify the person in charge of running the day-to-day operations of the business. At the end of the 180-day period, the license shall be automatically canceled. If no request is received within the 30-day period, the license shall be automatically canceled at the end of that period. (c) In the case of the death or disassociation of a partner of an entity licensed as a partnership, the licensee shall notify the bureau, in writing, within 30 days from the death or disassociation of the individual. If notice is given, the license shall remain in force for 90 days following the death or disassociation. At the end of that period, the license shall be automatically canceled. If the licensee fails to notify the bureau within the 30-day period, the license shall be automatically canceled at the end of that period. (d) A license extended under this section is subject to all other provisions of this chapter.  SEC. 3.   SEC. 5.  Section 7507.3 of the Business and Professions Code is amended to read: 7507.3. A repossession agency shall be required to keep and maintain adequate records of all transactions, including, but not limited to, assignment forms; vehicle report of repossession required by Section 28 of the Vehicle Code; vehicle condition reports, including odometer readings, if available; personal effects inventory; and notice of seizure. Records  , including bank statements of the trust account,  shall be retained for a period of not less than four years and shall be available for examination by the bureau upon demand. In addition, collateral and personal effects storage areas shall be made accessible for inspection by the bureau upon demand. An assignment form may be an original, a photocopy, a facsimile copy, or a copy stored in an electronic format.  SEC. 6.   Section 7507.115 of the   Business and Professions Code   is amended to read:  7507.115.  (a)    A licensee shall not appraise  or determine  the value of any collateral  , whether damaged or not  .  (b) (1) Notwithstanding subdivision (a), a licensee may issue a condition report that makes a general assessment of the collateral.   (2) Notwithstanding paragraph (1), a condition report shall not contain any of the following:   (A) A description of the wear and tear of specific parts.   (B) A description of the presence or absence of specific parts.   (C) The condition of the paint on the collateral.   (D) The electrical or mechanical condition.   (E) How the collateral drives or operates.   (F) The type of key used for the collateral.   SEC. 4.   SEC. 7.  Section 7508.1 of the Business and Professions Code is amended to read: 7508.1. The director may assess administrative fines for the following prohibited acts: (a) Knowingly making any false report to his or her employer or client for whom information was being obtained. The fine shall be one hundred dollars ($100) for the first violation, and five hundred dollars ($500) for each violation thereafter. (b) Using any identification to indicate registration as a repossessor, other than the bureau-issued registration card, except an employer identification card issued by the repossession agency which has met bureau approval, or a badge, cap insignia, or jacket patch as provided in Section 7508.8. A bureau-issued registration card shall be carried by those individuals specified by Section 7506.3, and shall be shown on demand to any bureau employee or law enforcement officer. The fine shall be twenty-five dollars ($25) for each violation. (c) Using an alias in connection with the official activities of the licensee's business. A notice of warning shall be issued for the first violation. Thereafter the fine shall be twenty-five dollars ($25) for each violation. (d) Appearing as an assignee party in any court proceeding involving claim and delivery, replevin, or other possessory court action, action to foreclose a chattel mortgage, mechanic's lien, materialman's lien, or any other lien. This section shall not prohibit a licensee from appearing as a defendant in any of the preceding actions. The fine shall be one hundred dollars ($100) for each violation.  SEC. 8.   Section 7508.4 of the   Business and Professions Code   is amended to read:  7508.4. The director may assess administrative fines for any of the following prohibited acts: (a) Conducting business from any location other than that location to which a license was issued or conducting a business as an individual, partnership, limited liability company, or corporation unless the licensee holds a valid license issued to that exact same individual, partnership, limited liability company, or corporation. The fine shall be one thousand dollars ($1,000) for each violation. (b) Aiding or abetting an unlicensed repossessor or assigning his or her license. "Assigning his or her license" means that no licensee shall permit a registrant, employee, or agent in his or her own name to advertise, engage clients, furnish reports, or present bills to clients, or in any manner whatsoever to conduct business for which a license is required under this chapter. The fine shall be one thousand dollars ($1,000) for each violation. (c) Failing to register registrants within 15 days. The fine shall be two hundred fifty dollars ($250) for each of the first two violations and one thousand dollars ($1,000) for each violation thereafter. (d) Employing a person whose registration has expired or been revoked, denied, suspended, or canceled, if the bureau has furnished a listing of these persons to the licensee. The fine shall be twenty-five dollars ($25) for each violation. (e) Failing to notify the bureau, within 30 days, of any change in officers. A notice of warning shall be issued for the first violation. Thereafter, the fine shall be twenty-five dollars ($25) for each violation.  (f) Failing to present the debtor with an itemized receipt of payment, if payment is made in lieu of repossession. The fine shall be twenty-five dollars ($25) for the first violation and one hundred dollars ($100) for each violation thereafter.   (g)   (f)  Failing to submit the notices regarding a violent act or threatened violent act within seven days pursuant to Section 7507.6 or to submit a copy of a judgment awarded against the licensee for an amount of more than the then prevailing maximum claim that may be brought in small claims court within seven days pursuant to Section 7507.7. The fine shall be twenty-five dollars ($25) for the first violation and one hundred dollars ($100) per violation thereafter.  (h)   (g)  Failing to include the licensee's name, address, and license number in any advertisement. A notice of warning shall be issued for the first violation. Thereafter, the fine shall be twenty-five dollars ($25) for each violation.  (i)   (h)  Failing to maintain personal effects for at least 60 days. The fine shall be twenty-five dollars ($25) for the first violation and one hundred dollars ($100) for each violation thereafter.  (j)   (i)  Failing to provide a personal effects list or a notice of seizure within the time limits set forth in Section 7507.9 or 7507.10. The fine shall be twenty-five dollars ($25) for the first violation and one hundred dollars ($100) for each violation thereafter.  (k)   (j)  Failing to file the required report pursuant to Section 28 of the Vehicle Code. The fine shall be twenty-five dollars ($25) for each of the first five violations and one hundred dollars ($100) for each violation thereafter, per audit.  (l)   (k)  Failing to maintain an accurate record and accounting of secure temporary registration forms. The qualified certificate holder shall be fined twenty-five dollars ($25) for the first violation, one hundred dollars ($100) for the second violation, two hundred fifty dollars ($250) for the third violation, and two hundred fifty dollars ($250) plus a one-year suspension of the privilege to issue temporary registrations pursuant to Section 7506.9 for the fourth and subsequent violations.  (m)   (l)  Representing that a licensee has an office and conducts business at a specific address when that is not the case. The fine shall be five thousand dollars ($5,000) for each violation.  (n)   (m)  Notwithstanding any other provision of law, the money in the Private Security Services Fund that is attributable to administrative fines imposed pursuant to subdivision (c) shall not be continuously appropriated and shall be available for expenditure only upon appropriation by the Legislature.  SEC. 5.   SEC. 9.  Section 7508.5 of the Business and Professions Code is amended to read: 7508.5. The director may assess administrative fines against a repossession agency registrant for the following acts, in addition to fines imposed pursuant to any other section in this article. The fine shall be twenty-five dollars ($25) for each of the following violations: (a) Knowingly submit a false report. (b) Submitting a report to a client without authorization by his or her employer. (c) Failing to carry a bureau-issued identification card and failing to show that card upon demand to a bureau employee or a law enforcement officer. (d) Failing to register. (e) Failing to return his or her registration card to the employer upon termination. (f) Failing to report a violent act involving the registrant to the licensee or the licensee's qualified certificate holder within 24 hours.  SEC. 10.   Section 41612 of the   Government Code   is amended to read:  41612. After possession is taken of any vehicle by or on behalf of any legal owner thereof under the terms of a security agreement or lease agreement, the debtor shall pay the chief of police or a parking authority operated by a city and county a fee of fifteen dollars ($15) for the receipt and filing of the report of repossession pursuant to Section 28 of the Vehicle Code before the vehicle may be redeemed by the debtor.  Except as provided herein, any   Any  person in possession of the vehicle shall not release it to the debtor without first obtaining proof of payment of the fee to the chief of police or parking authority.  At the request of the debtor, a person in possession of the vehicle, or the legal owner, may also release the vehicle to the debtor provided the debtor pays the fifteen dollar ($15) fee, plus an administrative fee not to exceed five dollars ($5), to the person in possession or the legal owner who shall transmit the fifteen dollar ($15) fee to the chief of police or parking authority within three business days. Failure to transmit the fee within three business days shall subject the person in possession or the legal owner receiving the fee from the debtor to a fine of fifty dollars ($50).  The proof of payment, or a copy thereof, shall be retained by the party releasing possession to the debtor for the period required by  law, and the party releasing possession shall provide a copy of the proof of payment to the debtor upon request of the debtor.   law. An individual working for a repossession agency licensed pursuant to Chapter 11 (commencing with   Section 7500) of Division 3 of the Business and Professions Code may not pay the fee to, or retrieve the receipt from, the chief of police or parking authority.   SEC. 6.   SEC. 11.  Section 28 of the Vehicle Code is amended to read: 28. (a) Whenever possession is taken of any vehicle by or on behalf of any legal owner thereof under the terms of a security agreement or lease agreement, the person taking possession shall attempt to notify, within one hour, and shall notify, within two hours, after taking possession of the vehicle, by the most expeditious means available, the city police department where the taking of possession occurred, if within an incorporated city, or the sheriff's department of the county where the taking of possession occurred, if outside an incorporated city, or the police department of a campus of the University of California or the California State University, if the taking of possession occurred on that campus, and shall within one business day forward a written notice to the city police or sheriff's department. (b) If possession is taken of more than one vehicle, the possession of each vehicle shall be considered and reported as a separate event. (c) Any person failing to notify the city police department, sheriff's department, or campus police department as required by this section is guilty of an infraction, and shall be fined a minimum of three hundred dollars ($300), and up to five hundred dollars ($500). The district attorney, city attorney, or city prosecutor shall promptly notify the Bureau of Security and Investigative Services of any conviction resulting from a violation of this section. (d) For the notification required by this section, the person shall report  all of the following:   only the following information and in the following order:  (1) The  approximate  location of the repossession. (2) The  registered owner as provided on the assignment.   date and approximate time of the repossession.   (3) The individual, company, or legal owner requesting the repossession.   (4)   (3)  The vehicle year, make, and model.  (5)   (4)  The last six digits of the vehicle identification number.  (6)   (5)  The  repossession agency name.   registered owner as provided on the repossession assignment.   (7)   (6)  The  repossession agency telephone number.   legal owner requesting the repossession as provided on the repossession assignment.   (7) The name of the repossession agency.   (8) The telephone number of the repossession agency.   SEC. 7.   SEC. 12.  Section 4000 of the Vehicle Code is amended to read: 4000. (a) (1) A person shall not drive, move, or leave standing upon a highway, or in an offstreet public parking facility, any motor vehicle, trailer, semitrailer, pole or pipe dolly, or logging dolly, unless it is registered and the appropriate fees have been paid under this code or registered under the permanent trailer identification program, except that an off-highway motor vehicle which displays an identification plate or device issued by the department pursuant to Section 38010 may be driven, moved, or left standing in an offstreet public parking facility without being registered or paying registration fees. (2) For purposes of this subdivision, "offstreet public parking facility" means either of the following: (A) Any publicly owned parking facility. (B) Any privately owned parking facility for which no fee for the privilege to park is charged and which is held open for the common public use of retail customers. (3) This subdivision does not apply to any motor vehicle stored in a privately owned offstreet parking facility by, or with the express permission of, the owner of the privately owned offstreet parking facility. (4) Beginning July 1, 2011, the enforcement of paragraph (1) shall commence on the first day of the second month following the month of expiration of the vehicle's registration. This paragraph shall become inoperative on January 1, 2012. (b) No person shall drive, move, or leave standing upon a highway any motor vehicle, as defined in Chapter 2 (commencing with Section 39010) of Part 1 of Division 26 of the Health and Safety Code, which has been registered in violation of Part 5 (commencing with Section 43000) of  that  Division  26.   26 of the Health and Safety Code.  (c) Subdivisions (a) and (b) do not apply to off-highway motor vehicles operated pursuant to Sections 38025 and 38026.5. (d) This section does not apply, following payment of fees due for registration, during the time that registration and transfer is being withheld by the department pending the investigation of any use tax due under the Revenue and Taxation Code. (e) Subdivision (a) does not apply to a vehicle that is towed by a tow truck on the order of a sheriff, marshal, or other official acting pursuant to a court order or on the order of a peace officer acting pursuant to this code. (f) Subdivision (a) applies to a vehicle that is towed from a highway or offstreet parking facility under the direction of a highway service organization when that organization is providing emergency roadside assistance to that vehicle. However, the operator of a tow truck providing that assistance to that vehicle is not responsible for the violation of subdivision (a) with respect to that vehicle. The owner of an unregistered vehicle that is disabled and located on private property, shall obtain a permit from the department pursuant to Section 4003 prior to having the vehicle towed on the highway.  (g) A vehicle repossessed pursuant to the terms of a security agreement is exempt from registration solely for the purpose of obtaining release of the vehicle from a law enforcement entity, impounding authority, tow yard, storage facility, or any other person or company that has possession of the vehicle, provided that the repossessor transports with the vehicle the appropriate documents authorizing the repossession and makes them available to a law enforcement officer on request.   (g) (1) A licensed repossessor is exempt from this section solely for the purpose of obtaining a release from a law enforcement agency, impounding authority, tow yard, storage facility, or any other person or company that has possession of the collateral.   (2) A licensed repossessor is exempt from this section solely for the purpose of obtaining collateral from a law enforcement agency, impounding authority, tow yard, storage facility, or any other person or company that has possession of the collateral.   (3) In order to obtain a release of the collateral from a law enforcement agency, impounding authority, tow yard, storage facility, or any other person or company pursuant to paragraph (1) or (2), a licensed repossessor shall only be required to present his or her repossessor license and a copy of the repossessor assignment to that entity or person.  (h) For purposes of this section, possession of a California driver's license by the registered owner of a vehicle shall give rise to a rebuttable presumption that the owner is a resident of California.  SEC. 8.   SEC. 13.  Section 9561 of the Vehicle Code is amended to read: 9561. (a) When a legal owner, his or her agent, or a repossessor who is licensed pursuant to Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code repossesses a vehicle on which renewal fees are due, the department shall waive any renewal penalties that are due for late payment if the fees are paid within 60 days of taking possession. (b) Notwithstanding any other provisions of this code, when a repossessed vehicle is sold through a dealer conducting a wholesale motor vehicle auction as provided in subdivision (b) of Section 4456 and Article 5 (commencing with Section 6100) of Chapter 2 of Division 3, any penalties that may be due are waived, if all renewal fees that are due are paid not later than 60 days after the date of sale at the auction.  SEC. 9.   SEC. 14.  Section 10856 is added to the Vehicle Code, to read: 10856.  (a)    A person shall not interfere with the transport of a vehicle to a storage facility, auction, or dealer by  a repossessor   an individual who is employed by a repossession agency  who is licensed pursuant to Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code once repossession is complete as provided in Section 7507.12 of the Business and Professions Code.  (b) Any tow yard, impounding agency, or governmental agency, or any person acting on behalf of those entities, shall not refuse to release a vehicle to anyone that is legally entitled to that vehicle.   SEC. 10.   SEC. 15.  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.  SEC. 16.   This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:   In order to preserve public peace by prohibiting a person from interfering with the transport of a vehicle to a storage facility, auction, or dealer by a repossessor, it is necessary that this act take effect immediately.