Collateral recovery.

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. The act authorizes the director to suspend or revoke a repossession agency license, a qualification certificate, or registration if the director determines that the licensee or the licensee's manager, if an individual, or if the licensee is a person other than an individual, that any of its officers, partners, registrants, employees, or its manager, has been convicted of a felony or a crime substantially related to the repossession agency business, including illegally using, carrying, or possessing a deadly weapon, which the act defines as any instrument or weapon of the kind commonly known as a blackjack, slungshot, billy, sandclub, sandbag, metal knuckles, dirk, dagger, pistol, or revolver, or any other firearm, any knife having a blade longer than 5 inches, any razor with an unguarded blade, and any metal pipe or bar used or intended to be used as a club. This bill would, among other things, redefine "deadly weapon" to mean an instrument or weapon of the kind commonly known as a firearm. The bill also would define "repossession" to mean when the repossessor moves, gains entry to, or gains control of the collateral, disconnects the collateral from any surface, or connects the collateral to a tow vehicle. Existing law provides for the manner in which a repossession agency prepares inventory for and storage of personal effects, defined as any property that is not the property of the legal owner. Existing law requires the repossession agency to request written authorization from the debtor to release property not covered by a security agreement to someone other than the debtor. This bill would require any instrument or weapon other than a "deadly weapon" to be inventoried and noted as "disposed of, dangerous device" and reasonably disposed of. The bill would require the repossession agency to, instead of request, receive written authorization from the debtor to release property not covered by a security agreement to someone other than the debtor. 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.