Vehicle repossessions.

Plain English Breakdown

The bill summary does not provide specific details on handling personal items, only that repossession agencies must follow certain rules.

Vehicle Repossession Rules

The bill sets new rules for repossession agencies, including how they handle personal items and release vehicles.

What This Bill Does

• It stops repossession companies from setting fees with third parties or accepting agreements that let them avoid handling personal items properly.
• It clarifies that repossession companies can still put a lien on a car even if someone else has already done so.
• It says it's against the rules to ask for extra documents when releasing a vehicle, especially after certain types of seizures.

Who It Names or Affects

• Repossession companies that take back cars or other property.
• People whose vehicles are repossessed or towed.
• Government agencies involved in vehicle seizures.

Terms To Know

lien

A legal claim on a piece of property to secure the payment of a debt, like when someone owes money for towing or storage costs.

collateral

Something valuable that is given as security against a loan and can be taken by the lender if the borrower does not pay back the loan.

Limits and Unknowns

• The bill doesn't say exactly how repossession companies should handle personal items, just that they must follow certain rules.
• It's unclear what specific changes are made to state sovereignty provisions since it only mentions making a 'nonsubstantive change'.

Official Summary Text

SB 382, as amended,
Jones
Strickland.
State government: sovereignty.
Vehicle repossessions.
Existing law regulates repossession agencies that locate or recover collateral, including vehicles, and provides for their licensure by the Bureau of Security and Investigative Services. Existing law requires a repossession agency to remove personal effects from the collateral, inventory the personal effects, and store the personal effects until claimed or for at least 60 days, as specified.
This bill would prohibit a repossession agency from discussing, conspiring, or agreeing with a 3rd party to set a fee, rate, or cost for personal effects and from accepting a hold harmless agreement or release of indemnification in lieu of removing, inventorying, and storing personal effects.
Existing law authorizes a person to
place a lien on a registered vehicle for authorized towing, storage, or labor associated with recovery or load salvage of the vehicle, among other things.
This bill would clarify that provisions relating to vehicle liens do not prohibit a licensed repossession agency from filing a lien.
Existing law generally prohibits a tow yard, impounding agency, or governmental agency, or a person acting on their behalf, from refusing to release a vehicle or other collateral to anyone legally entitled to the vehicle or other collateral. Under specified circumstances, including after a vehicle is seized because the driver has a suspended or revoked driver’s license, existing law requires a person in possession of a vehicle to release the vehicle without requiring documents other than those specified.
This bill would specify that requiring additional documents to release a vehicle is a violation
of the statute prohibiting a tow yard, impounding agency, or governmental agency, or a person acting on their behalf, from refusing to release a vehicle or other collateral to anyone legally entitled to the vehicle or other collateral.
Existing law provides that the sovereignty of the state resides in the people thereof, and all writs and processes shall issue in their name.
This bill would make a nonsubstantive change to these provisions.

Current Bill Text

Download Bill PDF