Occupational Licensing Industry News OLIN 2009–18

Dismantler Licensing Requirements

New Legislation

Legislation effective January 1, 2010, requires the department to ensure persons applying for an auto dismantler license in California meet environmental protection and tax payment requirements.

Procedures

Applicants applying for an original auto dismantler’s license must include the following information with their application, if required by law:
•
Board of Equalization resale permit number
•
Franchise Tax Board tax identification number
•
California Environmental Protection Agency identification number
•
Storm water permit number
•
Hazardous materials business plan

NOTE: Beginning on January 1, 2011, the above requirements will also apply to dismantler renewal applications.

Background

Dismantlers store vehicles with potentially hazardous materials. This bill will increase the department’s licensing authority to confirm an applicant complies with California environmental protection requirements and tax obligations.

Distribution

Notification that this memo is available online at

dmv.ca.gov/pubs/olin/olin.htm

was made via E-mail Alert Service in November 2009 to dismantlers.

Contact

Questions regarding this memo may be directed to the Occupational Licensing Operations Unit at (916) 229-3126.

MARY GARCIA,

Chief Occupational Licensing

California DMV

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Shelby Super Cars

Posted by turnip

Company:	Shelby Super Cars
Brands:	Ultimate Aero EV
Pricing:	Unknown (Q4 2009)
Range:	150-200 miles on one charge
Speed:	208 mph
Batteries:	Unknown Battery Type

Shelby Super Car’s Aero was already the worlds fastest gas powered production car.  As the company behind the Ultimate Aero EV, they also hold the title of the worlds fastest electric powered production car.  Featuring twin motors producing a 1,000 HP and 800 lb-ft of torque enabling, it travels 0 to 60 mph in a snappy 2.5 seconds and reaches a top speed of 208 mph.  Tesla who?

If you need to ask how much this car will cost, you probably can’t afford it.  So what is the point?  The point is that this 100% Green supercar becomes a billboard to showcase Shelby’s Green powertrain.  This scalable electric power technology has uses ranging from economy and luxury cars, all the way up to trucks and buses.   Their SSC’s “Charge on the Run^TM” onboard charging system allows for 10 minute full battery recharges on a 220V service.

As great as this charging system sounds, it’s still a far cry from what was mentioned in their July 2008 press release:

The drive train under development will feature a revolutionary power source allowing for extended time between charging intervals with the possibility of several years between charging.

Other than not driving it during that time period, or having some passive charging system like solar, I can’t imagine what their original plans were.  Mini nuclear reactors?  Still, a another system proposed for electric cars travelling any distance above 40 miles.

The more companies providing competition in the electric vehicle market, the better.  Innovation across the board will propel electric vehicles into the mainstream, particulary in the area of battery and charging technology.  Call me a skeptic, but I don’t put much trust in the car/oil industries producing real alternative products any time soon without being forced into it.  They’ll all have something to display at the autoshows, but good luck actually being able to purchase one at a reasonable price.

Parking Meter

Chargers For Electric Cars

Coulomb Technologies knows mainstream auto manufacturers have plans to begin selling electric cars by 2010.  Consumers will need a place to park their vehicles.  Currently there is little if any infrastructure design with electric vehicles in mind, but Coulomb plans to solve that problem with their smart charging infrastructure for plug-in vehicles.  Electric car owners who park next to one of Coulomb’s ChargePoint Network meters will be able to charge their cars while they sleep, shop, work or eat.

This is a great idea for those who rent an apartment and don’t have their own garage or driveway.  Forget the idea of long extension cords.  Coulomb envisions a system where vehicle owners subscribe to a monthly service.  They would receive a key fob allowing them to park at any available meter.  Below is how Coulomb describes a typical user experience:

The subscriber will use a navigation system to find the nearest available charging station. He will park the vehicle next to the Smartlet Charging Station. For 110V charging, the subscriber will swipe a key fob to be authenticated at the station, unlocking the Smartlet access door. After plugging in the cord, the door will lock in a partially open position to secure the cord and begin charging. After charging is complete, the subscriber will scan the key fob again to deactivate the charging station and unlock the access door. The cost of the transaction will be displayed on the charging station. The driver will replace the cord into its original position and can then drive away.

Not everyone who charges their car will need to subscribe.  For example, if you rent an electric vehicle, you could make a one time charge payment using a cell phone or credit card to charge a car.  Some businesses may offer free charging/parking to entice customers.  Employers mighty offer charger parking to their employees as a benefit.  Condominium communities could include ChargePoint Network fees with their monthly dues.  Since the system uses bi-directional communication, you would only be charged for the electricity used.

The question becomes one of standardization.  All electric vehicles will need to use the same 110v/220v recepticle .   Just as there is a choice of unleaded or diesel gasoline, there needs to be electrical standards as well.  What will happen to those who want to park a non-electric car or have their own portable solar charging kit?  Will they be left to fight for the free spots at the mall?

http://zapyx.com/

Electric-car maker

Tesla preparing IPO

U.S. electric-car maker Tesla Motors plans to go public soon, two sources familiar with the matter said, amid growing interest in green technology and battery-powered vehicles.

An IPO filing from the 6-year-old start-up, best known for its $109,000 all-electric Roadster, is expected any day, said one of the sources. The person did not give a specific time frame, although IPOs typically take several months.

Tesla spokesman Ricardo Reyes declined to comment on what he called “rumor or speculation.”

Tesla Model S

(Credit: Caroline McCarthy/CNET)

Tesla would mark the first public offering from a U.S. automaker since Henry Ford’s Ford Motor debuted its shares in 1956. The IPO represents a landmark in the resurgence of electric-car technology that most carmakers had dismissed as impractical until recently.

The company’s chairman Elon Musk said early last year that an IPO was a possibility in either late 2008 or 2009.

But the financial market turmoil following the collapse of Lehman Bros. in the latter half of 2008 virtually shut down the IPO market. The appetite for IPOs has picked up since mid-September this year with a robust pace of new filings.

Tesla’s IPO would follow the successful debut of lithium ion battery maker A123 Systems, whose shares rallied 50 percent on their first day of trading on September 25.

Analysts have said that the success of A123, the first green-technology IPO this year, would encourage more venture capital-backed green companies to go public.

Tesla will compete with established automakers like Ford, General Motors, and Nissan Motor, all of which are racing to launch electric or plug-in hybrid vehicles. Tesla, by contrast, is a small player with a high-end market and limited production.

A combination of factors has driven the recent interest in developing electric, or partially electric vehicles, including the Obama administration’s push to have 1 million rechargeable vehicles on U.S. roads by 2015 and low-cost Department of Energy loans for manufacturers.

Venture funds back green cars
The carmaker is developing a second, lower-cost model, an electric sedan known as the Model S, which will have a base price of $49,900.

Tesla said in September it delivered 700 Roadsters since February 2008. The Roadster, which is built on a Lotus frame, can go from 0 to 60 miles an hour in less than four seconds, making it faster than a Porsche 911 or a Ferrari Spider.

The electric-car start-up was offered $465 million in low-cost loans by the U.S. Department of Energy to help build the new Model S. Tesla said it will build the new car in California.

Tesla’s investors include Google co-founders Sergey Brin and Larry Page.

Other investors include Daimler; Abu Dhabi-based Aabar Investments, which owns a stake in Daimler; and venture capital funds Valor Equity Partners, Technology Partners, The Westly Group, and Compass Venture Partners.

Tesla said it had achieved overall corporate profitability in July with about $1 million of earnings on revenue of $20 million.

But like established automakers, survival in the hyper-competitive U.S. automotive market has not been easy for Tesla. The company had to face cost overruns and production delays for the Roadster.

http://news.cnet.com/8301-11128_3-10402752-54.html

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Kiss the American Auto Industry Goodnight

By Bill Moore

Effectively, that is what the conservative Heritage Foundation is arguing in a November 23, 2009 blog piece entitled Help Stop the EPA from Imposing More Costly Regulations. The Foundation asserts that if the EPA enacts the fuel economy standards embodied in the Energy Independence and Security Act of 2007, signed by former President George W. Bush, it will mean fewer consumer choices in automobiles, more expensive vehicles, and less safe models due to the inevitable downsizing that will occur in order to comply with the 35 mpg fleet average the law will require.

They claim, “to meet these new standards, cars and trucks will need to be lighter, making them less safe. The National Academy of Sciences study pegs the cost of downsizing at 1,300 to 2,600 lives per year.” They also assert that increasing fuel economy to 35 mpg will do little to reduce global warming, something I am not sure they actually believe is real, but that’s another matter. Instead, let’s examine the “smaller is deadlier” allegation.

The National Research Council published a 2002 study entitled, Effectiveness and lmpact of Corporate Average Fuel Economy (CAFE) Standards in which the majority of the committee concluded, “The downweighting and downsizing [of vehicles] that occurred in the late 1970s and early 1980s, some of which was due to CAFE standards, probably resulted in an additional 1,300 to 2,600 traffic fatalities in 1993.”

Notice that the Heritage Foundation chose to cherry pick this statistic by failing to note that only “some” of the downsizing of the vehicles were the result of CAFE standards and probably resulted in those estimated fatalities. They also failed to point out the fact that the study was done using 1993 accident records. The implication of their citation is that for carmakers to comply with what the Foundation considers an Obama Administration initiative, despite originating during the Bush presidency, carmakers will be forced to build smaller, less safe vehicles.

Let’s examine that question, shall we?

When the original 2002 report came out, the committee responsible for its findings were not unanimous in their opinions as to its conclusions. A minority disagreed, stating publicly, “The conclusions of the majority of the committee … are overly simplistic and at least partially incorrect … The relationship between vehicle weight and safety are complex and not measureable with any reasonable degree of certainty at present… Reducing the weights of light-duty vehicles will neither benefit nor harm all highway users; there will be winners and losers.”

In 2008, Tom Wenzel with the Lawrence Berkeley Lab and Marc Ross with the University of Michigan presented a paper American Physical Society’s Forum on Physics and Society, essentially concurred with the minority view in that the issue of vehicle safety is far more complex than the “bigger and heavier is safer” mantra.

They contended, “Safety can be improved using new technologies, with little impact on weight or fuel economy.” Those new technologies include high-strength steel, improved crash safety design, electronic stability control, better seat belts, stronger roofs and vehicle-to-vehicle communication (crash avoidance).

The above graph, screen-captured from their March 2008 Powerpoint presentation, shows relative risk by vehicle type. What’s illuminating here is the fact that while compact and subcompact models do represent a higher risk to their occupants than more car-like Crossovers, for example, the damage inflicted on passengers in other vehicles is less. And when you compare them to the light truck/pickup category, the compact car is “safer” than any class of pickup but full-sized vans. Not only aren’t these light trucks any safer than a compact car, but the aggressive havoc they cause to other vehicles and their occupants is three to five times that of the compacts and subcompacts. Compare all vehicles classes and imported luxury cars (presumably Mercedes, BMW, Volvo, Saab, etc.) come out the best, which can’t be explained by size or vehicle mass alone. Something else is going on here including vehicle engineering and driver maturity.

It seems to me that the answer isn’t allowing American carmakers to continue to build big, heavy, cheap vehicles, but to engineer safer and more fuel efficient models, and this is, in fact, what they are doing. Both Ford and GM are creating “global” vehicle platforms that they can sell in Asia, Europe and North America, offering comparable amenities and performance, instead of the wide disparity previously seen between GM and Ford’s more fuel-efficient models in Europe and their name sake-only variants in North America. Chrysler and Fiat’s recently unveiled vehicle and engine plans highlight this shift.

And if you’re wondering about how safe those Euro-ized global models are, the World Health Organization reported that in 1998 in the whole of Europe there were 106,757 traffic fatalities and 3,213,104 injuries for a comparably sized population, while in the United States and Canada there were 125,959 fatalities and 4,410,736 injuries. Recall that Europe is more congested and has higher highway speeds than in most of North America, so it should have higher fatality and injury rates, but it doesn’t.

Bottom line, smaller and lighter doesn’t have to equate to more deaths and injuries. Better engineering and materials can largely mitigate the problem; and doing so will make U.S. carmakers more competitive, not less. Or, we can blindly follow the advice of the creaky Heritage Foundation and kiss the rest of the American auto industry goodnight.

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Bakersfield California Auto Recovery

State Finance Adjusters

Contact: Jerry or Monica
Phone: (661) 395-1703 Fax: (661) 395-1523
200 Morning Drive, Bakersfield, CA 93306
We offer our clients skip tracing, field investigations, surveillance available, sale of collateral, private repo’s & impounds. We Repo Automobiles, Big Rigs, Trailers, Boats, Motor Homes, Travel trailers and more……

Brentwood California Auto Recovery

Black Diamond Recovery

Phone: 925-516-9360 Fax: 925-516-9361
161 Chestnut Street #8, Brentwood, CA 94513
Email: blackdiamondrecovery@gmail.com
Website: http://blackdiamondrecovery.com/
Black Diamond Recovery is the Northern California leader in property recovery. We offer state of the art recovery systems along with a satisfaction guarantee upon recovery of any property.

Chico California Auto Recovery

North Valley Recovery Service

Contact: Lorrie Owens
Phone: (530) 345-6822
Chico, CA 95927
We have been right here in Chico California since 1975. We are licensed, bonded and insured. We have been members of the American Recovery Association for over 30 years and our field agents are the most experienced around.

Eldorado Hills California Auto Recovery

SKIPBUSTERS

Contact: Brent Hipp
Phone: 800-398-6480 x 243 Fax: (916) 673-3213
Eldorado Hills, CA 95762
Website: http://www.pkwillis.com/
Auto Repossession Agents Across America: Western States – 88 Agents, Midwest States – 71 Agents, Mideast States – 89 Agents, Eastern States – 111 Agents

Eureka California Auto Recovery

Felhaber Repossessions

Contact: Kirk Felhaber
Phone: (707) 498-0106 Fax: (707) 839-1944
Eureka, CA 95519
Website: http://www.northcoastrepo.com/
SERVING NORTHERN CALIFORNIA: HUMBOLDT, DEL NORTE, TRINITY, MENDICINO COUNTIES. PROFESSIONAL AND PROMPT RECOVERY’S, FULLY LICENSED RECOVERY AGENTS – LATEST STATE-OF-THE-ART EQUIPMENT – EXOTIC REPOSSESSION SPECIALTY – PROFESSIONAL SKIP TRACING – SECURE STORAGE FACILITIES

Fontana California Auto Recovery

South Bay Recovery & Transport

Contact: Martin Castellanos
Phone: (310) 762-1511 Fax: (310) 762-1411
P.O. Box 1587, Fontana, CA 92334
We take great pride in delivering very fast, dependable, and honest service. Honesty is always Guaranteed. Send us an assignment today and allow us to prove our abilities. We want your business.

Fremont California Auto Recovery

Active Auto Recovery

Contact: Stacy Truelsen
Phone: (800) 227-2524 Fax: (510) 490-1568
45581 Industrial Place #14, Fremont, CA 94538
Active Auto Recovery services the San Francisco Bay and all of Northern California. We offer fast professional efficient service.

Fresno California Auto Recovery

A.O.C. Adjusters Fresno, Ltd.

Contact: Marci Baker
Phone: (800) 366-9025 Fax: (559) 298-7476
P.O.Box 8160 , Fremont, CA 94538
Website: http://www.aocadjusters.com/
AOC ADJUSTERS began its operations back in Fresno, California in 1969, under the leadership of Jim Darden. In 1982, Mr. Darden took ownership of the company, and continued to deliver the kind of professional results his customers had come to expect.

Pipkin Detective Agency

Contact: R.J. Pipkin
Phone: (877) 730-3532 Fax: (559) 622-8890
Post Office Box 1187, Fresno, CA 93715
Website: http://www.pipkindetectiveagency.com/
PDA is a fully licensed and insured repossession agency, licensed by the State of California. Many of PDA’s clients are financial institutions such as banks, mortgage companies and lending institutions.

Banker Choice Recovery Services, Inc.

Contact: Jimmy Fagrell
Phone: (559) 456-0665 Fax: (559) 346-1442
2710 N. Argyle, Fresno, CA 93727
Website: http://www.pipkindetectiveagency.com/
We take great pride in delivering Fast, Dependable, and Honest service. Honesty is always Guaranteed. Send us an assignment today and allow us to prove our abilities. We want your business.

Garden Grove California Auto Recovery

California Recoveries Company

Contact: Eric Obiedo
Phone: (800) 348-0750 Fax: (714) 554-0250
13912 Nautilus Drive, Garden Grove, CA 92843
Website: http://www.californiarecoveries.com/
Unlike most recovery companies we have on-staff skiptracers with access to valuable databases and information. To accommodate your needs, our employees remain accessible and responsive, with extended flexible work hours. We keep you fully informed of the status of your case, with ongoing verbal and written status reports.

La Verne California California Auto Recovery

Omega Recovery & Transport

Contact: Hector
Phone: (866) 300-5741 Fax: (909) 599-4494
2355 Foothill Blvd., La Verne, CA 91750
Website: http://www.californiarecoveries.com/
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Los Angeles California Auto Recovery

Collateral Recovery Services – The Repo Experts

Contact: Wenceslao Diaz
Phone: (562) 907-6710 Fax: (562) 696-8756
P.O. Box 142, Whitter, CA. 90608
mailto:info@repocrs.com
Website: http://www.repocrs.com/
C. R. S. is a California based company specializing in Collateral Recovery. Collateral Recovery Service is a licensed California Repossession Agency serving more than 200 cities in Los Angeles, San Bernardino, Orange and Riverside counties. Collateral Recovery Services was founded in 1976.

Global Protection & Intelligence Inc.

Contact: Kevin Beyer
Phone: (818) 999-9953
Westlake Village, CA 91361
mailto:sales@gpiservices.com
Website: http://www.gpiservices.com/
The Leader in The Protective & Aircraft Recovery Industry. GPI maintains a large staff of male and female Protective Agents that are adaptable to any ethnic, social or formal situation. GPI Agents are highly trained in close proximity protection, etiquette and attire, as well as cultural customs.

Complete Automotive Recovery Service

Contact: Chuck
Phone: 626-443-CARS Fax: (626) 443-1093
9350 Lower Azusa Rd., Temple City, CA 91780
Website: http://www.californiarepossessions.com
We are not only a repossession company that specializes in exacting and elusive subjects, but exceptional skip tracing experts, a full-service towing and transport company, and more.

Marysville California Auto Recovery

Magnum Recovery – Auto Repossessions in Northern California

Contact: Mario McCarthy
Phone: (530) 743-1478 Fax: (530) 743-2568
5949 Lindhurst Ave., Marysville, CA 95901
Magnum Recovery is a Full Service Recovery Agency servicing most of Northern California including Yuba, Sutter, Colusa, Glenn, and western Butte & Nevada Counties.

Oakland California Auto Recovery

Surety Recovery Service

Contact: Kenneth M. Irvin
Phone: (510) 569-1861 Fax: (510) 638-1933
6114 La Salle Avenue Suite # 147, Oakland,California 94611
mailto:suretyrecoveryservice@suretyrecoveryservice.net
Website: http://www.suretyrecoveryservice.net/
Surety Recovery Service assists the Financial Industry,Legal Profession,Small Businesses,Insurance Companies and Individuals with all types of Investigative and Collateral Recovery Services. State of California Private Investigator License Number 17507. State of California Repossession Agency License Number 983.

Sacramento California Auto Recovery

Digital Dog Auto Recovery

Contact: Michael Eusebio
Phone: (916) 235-5265 Fax: (916) 235-5282
3941 Park Drive, Suite 20-309, El Dorado Hills, CA 95762
mailto:info@digitaldog.us/
Website: http://www.digitaldog.us/
Digital Dog Auto Recovery is a full service repossession agency covering most of Northern California, our Corporate Offices are located in El Dorado Hills with regional offices in: Concord, Chico, Fremont, Modesto, Salinas & Sacramento

Profound Recovery Solutions

Contact: Jacquie
Phone: (877) 290-6497 Fax: (916) 273-6576
6750 Folsom Blvd. Ste. 225, Sacramento, CA 95819
Based in Sacramento California Profound Recovery Solutions will find your asset and recover it Nationwide. Use our network of agents for fast dependable service.

San Bernardino California Auto Recovery

Americas Car Catchers

Contact: Rod Wehust
Phone: (909) 794-0800 Fax: (909) 794-2231
P.O. Box 5940, San Bernardino, CA 92412
For over 28 years Americas Car Catchers has repossessed car, trucks motorcycles, boats, semi’s & trailers, motor homes , toy haulers, travel trailers and more. Please call us for fast efficient service.

San Francisco California Auto Recovery

AOC Adjusters

Contact: Clark Beermann
Phone: (510) 782-6841 Fax: (510) 782-9004
P.O. Box 399, Twain Harte, CA 95383
AOC Adjusters services all of San Francisco Bay area to the Sierra Foothills. After 47 years in business we have developed an impeccable reputation and quality service. Services offered: Auto Recovery, Private Investigations & Process Serving

Ventura California Auto Recovery

Ventura County Recovery, Inc.

Contact: Rick Carisio
Phone: (805) 654-1918 Fax: (805) 650-0404
P.O. Box 7884, Ventura, CA 93004
We service: North to Goletta, South to Agoura Hills, East to Simi Valley & West to the Pacific Ocean

San Diego California Auto Recovery

California Recoveries Company

Contact: Rick Torres
Phone: (800) 348-0750 Fax: (714) 554-0250
723-A Olive Ave, Vista, CA 92083
Full Range of Services: Collateral Recovery, Skiptracing, Field Contacts, Field Investigation, Surveillance, Collateral Storage, Collateral Liquidation, Personal Effects Storage, Account Referral, Locksmithing, Transport/Delivery, Account re-assignment throughout U.S.A., Canada and Mexico

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QUESTIONS AND ANSWERS PERTAINING TO VEHICLE REPOSSESSIONS
PUBLISHED BY CALIFORNIA ASSOCIATION OF LICENSED REPOSSESSORS
California Association of Licensed Repossessors (CALR) has listed some common questions posed by interested persons. The CALR’s
legal counsel has assisted in framing general answers to some of these questions.
Note references are as follows:

B&P = Business & Professions Code; VC = Vehicle Code; PC = Penal Code; GC = Government Code; CC = Civil Code.

CAUTION: The answers provided in this section are for general reference only and CALR warns that they should not be relied upon as
legal authority. Minor differences in the facts may require different answers.

The law is also subject to change at any time. Therefore,
consult your legal counsel concerning individual problems.

1. Q. What is a “repossession agency” as defined by the State of California?
A. A repossession agency means and includes any person who, for any consideration whatsoever, engages in the repossession
business or accepts employment to locate or recover personal property, including but not limited to, personal property registered under
provisions of the Motor Vehicle Code which is subject to a security agreement (B&P 7500.2).

2. Q. What is not a “repossession agency” as defined by the State of California?
A. The following are exempt from the definition of a “repossession agency:”
1. Banks.
2. Licensed lending institutions.
3. Attorneys performing legal duties.
4. Legal owners of collateral which is subject to a security agreement.
5. Federal, state or municipal officers or employees performing official duties.
6. Persons employed exclusively and regularly by one employer in connection with the affairs of that employer only
and where there exists an employer/employee relationship (B&P 7500.3).

3. Q. Who may legally undertake repossession assignments?
A. Unless exempted pursuant to B&P Code 7500.3, only persons holding a
valid repossession agency license or registration, issued by the State of
California, may engage in the activities of a repossession agency (B&P 7500.3).

4. Q. May a tow service, auto drive away service or transport company, not
specifically licensed as a “repossession agency,” repossess collateral
VOLUNTARILY or INVOLUNTARILY?
A. NO! These businesses are not exempt under B&P Code 7500.3 and would
therefore be in violation relating to unlicensed activity. Violators are
subject to fines of $5,000 and/or one year in the county jail (B&P 7502.1).

5. Q. How may it be determined whether or not a person or agency holds a
valid repossessor’s license?
A. This informational directory includes a numerical list of licensed repossession agencies who are
licensed by the State of California and current CALR members as of January, 2005. Any person may contact the
Bureau of Security and Investigative Services at 400 “S” Street, Sacramento, CA 95814, (916) 322-4000, to deter
mine whether or not a particular person or agency is licensed. Or visit the Bureau’s website at
www.dca.ca.gov/bsis.

6. Q. May unlicensed repossession activity be penalized?
A. Yes! Any person who engages in repossession activity (other than a
licensed repossessor), is guilty of a misdemeanor which is punishable by a
fine of $5,000 or by imprisonment in the county jail for not more than one
year, or both [B&P 7502.1(a)].

7. Q. May a financial institution be penalized for using an unlicensed
repossession agency or person?
A. Yes! Any person who knowingly engages an unlicensed repossession
agency or person to repossess personal property is guilty of a misdemeanor
which is punishable by a fine of $5,000 or by imprisonment in the
county jail for not more than one year, or both (B&P 7502.2).

8. Q. At what point has a motor vehicle been legally repossessed?
A. With regard to collateral subject to registration under the Vehicle Code, a
repossession occurs when the repossessor gains entry to the collateral, or
when the collateral becomes connected to a tow truck (B&P 7507.12).

9. Q. May a repossessor lawfully enter any area for purposes of
repossession?
A. Yes, with the exception of a private building which means and includes
any dwelling, outbuilding, other enclosed structure or any secured area
which means and includes any fenced and locked area. Entry into these
areas with the consent of the owner or person in legal possession is
permissible [B&P 7500.1(s)].

10. Q. When may a vehicle secured by a contractual agreement be
repossessed?
A. Normally, only when the buyer has defaulted in the performance of any
obligation under the contract. Ordinarily a default occurs when an
installment payment is delinquent. However, if the consumer is required
by the contract to maintain insurance, a failure to do so may constitute a
default, as allowing the collateral to be jeopardized (CC 2983.3).

11. Q. Is police notification required prior to an attempted repossession?
A. No. Some jurisdictions, however, request a courtesy call prior to a
repossession to eliminate the possibility of a repossessor being stopped at
gunpoint in the event someone telephones in a report of a stolen vehicle
or a prowler.

12. Q. Is a police report required on all repossessions?
A. Yes. 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:
a) notify, within one hour after taking possession of the vehicle, and 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 the 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 the sheriff’s department.
b) 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 $300 and up to $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 (VC 28).

13. Q. May a licensed repossessor accept an assignment to repossess from a
registered owner?
A. Yes. Assignment also means an authorization by the registered owner to
recover collateral registered under the Vehicle Code where an
employer/employee relationship exists or existed between the registered
owner and the possessor of the property and the possessor is wrongfully in
possession of the property [B&P 7500.1(0)].

14. Q. Must licensees make condition reports of repossessions?
A. Yes. Repossession agencies are required to keep and maintain adequate
records of all transactions including condition reports reflecting the
condition of a vehicle at the time of repossession and its odometer
reading (B&P 7507.3).

15. Q. What is to be done with personal effects or other personal property?
A. Personal property shall be removed and a complete and accurate inventory
shall be made. Said items shall be securely stored for a minimum of 60
days. It is required that the repossession agency notify the consumer of
this inventory by written notice or by personal service within time limits
prescribed by law (B&P 7507.9).

16. Q. What is to be done with deadly weapons contained in or on collateral
at time of repossession?
A. Deadly weapons and dangerous drugs shall be turned over to a local law
enforcement agency for retention. These items shall be entered on the
inventory and a notation shall be made as to the date, time and place the
deadly weapon or dangerous drug was turned over to the law enforcement
agency. Areceipt from the law enforcement agency shall be maintained in
the records of the repossession agency [B&P 7507.9(b)(1)].

17. Q. What is to be done with combustibles after being removed from a repossession?
A. Combustibles shall be inventoried and noted as “disposed of dangerous
combustible” and disposed of in a reasonable and safe manner [B&P
7507.9(b)(2)].

18. Q. Is it a crime to conceal a motor vehicle or other collateral?
A. Yes. Any person in possession of collateral who conceals property with
the intent to defraud a creditor may be guilty of a felony (PC 154, 504a
or 538).

19. Q. May a repossession agency charge a fee for storing personal effects
(referring to inventory of effects from a repossession)?
A. Yes. A licensee may charge the debtor for storing personal effects since
B&P Code 7507.9 and 9(d) states in part, “The inventory shall include…
an itemization of all personal effects and storage charges that will be
made by the repossession agency.” A licensee may not charge a legal
owner for storage of personal effects unless specifically agreed to at the
time of the assignment or at a subsequent time.

20. Q. When a vehicle has been impounded by a public agency, who should
notify the legal owner?
A. Within 48 hours of the storage, unless the vehicle is in a vehicle abatement
program, or abandoned, the public agency is required to notify both legal
and registered owners [VC 22852(a)].

21. Q. What is the maximum amount a repair garage may charge on a repair
or storage to a legal owner?
A. On work or services performed, up to $750 is allowed and the garage must
have permission from the legal owner to exceed that amount [CC3068(c)].
Storage is allowed up to $400 for a vehicle under $4000 in value and $500
if the vehicle is valued over $4000 [CC 3068(c)]. There are also a requirement
to notify the legal owner by the 16th day of possession if storage fees
are charged and if legal owner is not notified, storage is limited to 15 days
(VC 10652.5 and CC 3071 & 3072).

22. Q. Are there any reporting requirements when a vehicle is stored in a
private building?
A. Yes. Every person other than the keeper of a garage renting any private
building used as a private garage or space, therein, for the storage of a
vehicle of a type subject to registration under this code, when the
agreement to rent includes only the building or space therein, shall, within
24 hours after the vehicle is stored therein, report such fact together with
the name of the tenant and a description of the vehicle, including the name
or make, the VIN and the license number to the sheriff’s office of the
county or the police department of the city wherein the building is located.
“Private garage” as used in this section does not include a public warehouse
or public garage (VC 10654).

23. Q. What can happen to a tow company if the legal owner is not notified?
A. Under Civil Code Section 3070, a legal owner has a right to accuse the
tow company of “improperly causing a vehicle to be towed.” If the tow
company tries to collect storage over 15 days when VC 10652.5 is
violated. A notice must be sent to the legal owner by the 16th day of
possession in order to collect over 15 days of storage fees [CC 3070(d1),
(d2), (A)].

24. Q. Are there limits on the number of days storage can be charged by lien
holders?
A. Yes, Civil Code 3068.1 limits public agency and private tows to a certain
number of days chargeable for storage. A vehicle under $4000 in value
shall not accrue storage charges beyond the 15th day unless lien sale
proceedings have commenced. If the lien is filed by the 15th day of
possession, the storage is limited to 60 days. This would include a required
notice to be signed by the legal owner before the 16th day of possession
(VC 10652.5). A vehicle with a value over $4000, the lien sale shall
commence by the 30th day of storage and allowing the storing party to
collect for storage up to 120 days. If the lien sale commenced after 30
days, 60 days of storage, then Vehicle Code 10652.5 applies and the
storing party may only collect up to the 16th day of storage.

25. Q. May a repossessor’s tow vehicle be cited by law enforcement for
violations of Vehicle Code sections 25253(a), 27700, or 27907, which
all pertain to a tow truck?
A. No. Vehicle Code sections 615(a) and (b) (definitions of “tow Trucks”)
states a “tow truck” does not include a “repossessor’s tow vehicle.”

26. Q. Must a repossessor’s tow truck be equipped with signs on the door of
the truck and other requirements?
A. No. A person licensed as a repossession agency pursuant to the B&P Code
(commencing with Section 7500), or a registered employee of the agency
may use the state issued repossession license number in lieu of a sign
containing a name, business address, and telephone number (VC 27907)

27. Q. May a law enforcement officer force a repossessor to give up
possession of an automobile or property?
A. Peace officers may not advance or hinder repossessions. Because they are
acting under “color of State law.” They may no more force a debtor to
surrender a car than they may, after a car has been repossessed, force the
repossessor to return it. Without a court order, both things violate the “due
process” requirements of the 14th Amendment of the United States
Constitution and Article 1, Section 13 and 15 of the California
Constitution.

28. Q. Should a repossessor have a police officer accompany him/her on a
repossession?
A. Self-help repossession provisions of UCC 9-609 do not violate the
Fourteenth Amendment if it is the conduct of a private individual dealing
with a private individual. However, the presence of a police officer or a
patrol car accompanying a repossessor has been found by several courts to
constitute “color of law” and has taken the repossession out of the area of
“purely private conduct without state assistance.” Do not take a sheriff or
Police officer out on a self-help repossession.

29. Q. Must a debtor pay a fee (normally $15) to a police department or
Sheriff’s department before redeeming the repossessed vehicle?
A. Yes, pursuant to Government Code sections 26751 and 41612. This fee is
not the obligation of the lien holder or repossessor.

30. Q. Is a repossessed vehicle exempt from current registration?
A. A vehicle repossessed pursuant to the terms of a security agreement is
exempt from the 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 of 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 (VC 4022).

31. Q. Does the mandatory 30 day vehicle impoundment for driving with a
suspended, revoked or invalid license apply to the legal owner?
A. No. A legal owner or its agent may obtain a release from impoundment
prior to the 30 days if they meet three conditions:
1) They are legally operating in this state.
2) They pay all towing & storage fees related to the seizure of this
vehicle.
3) Provide foreclosure document or affidavit of repossession
[14602.6(f)(3)].

32. Q. Should a legal owner have a copy of the repossessor’s state issued
licensed number on file prior to assigning an account to them?
A. Although, it is not required by law, it would provide a positive defense to
any allegation of having assigned an account to a nonexempt unlicensed
person in violation of B&P Code section 7502.2 which is punishable by a
fine of $5,000.

33. Q. Is possession by a registered repossessor of tools described as“burglary tools” and of vehicle or wheel lock master keys as definedin section 466 and 466.5 of the California Penal Code prohibited bylaw?

A. No. Those sections specify that possession with the “intent feloniously to
break or enter any building or vehicle” is a misdemeanor, and that
possession of vehicle master keys with the intent to use them “in the
commission of an unlawful act” is a misdemeanor. Tools used by
repossessors are “tools of trade” and are legally possessed without any
intent to commit a crime.

34. Q. May local law enforcement collect an administrative fee from a legal
owner or their agent to release impounded collateral?
A. No. Effective on January 1, 2000 the administrative fee may be collected
only from the registered owner only or agent of said registered owner
[VC 22850.5(b)(2)].

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dealers may repossess vehicles under and out of contract at will

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Repossession Agency, Qualified Manager, or Repossession Agency Employee

Requirements for Licensure

A Repossession Agency contracts with a legal owner to locate or recover personal property that has been sold under a security agreement.

In order for a company to seek licensure as a repossession agency, the Qualified Manager (see below) must have passed the licensing examination. In addition, each individual applicant, partner, or corporate officer must be 18 or older and must undergo a criminal history background check through the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI).

To apply for a company license, submit a completed application, an $825 company license fee, two recent passport-quality photographs and a Repossessor Agency Live Scan form signed by the Live Scan Operator. A $32 DOJ fingerprint processing fee and a $19 FBI fingerprint processing fee must be paid for each applicant at the Live Scan site. Send your application package to the Bureau of Security and Investigative Services, P.O. Box 989002, West Sacramento, CA 95798-9002.

(A qualified manager who is also an applicant, partner, or officer is not required to send in another set of fingerprints or pay another fingerprint processing fee.)

Note: Local government may also require registration but may not charge a fee.

Qualified Manager

An individual, partnership, or corporation seeking licensure as a repossession agency must specify in the application the individual who will manage the business on a day-to-day basis. This individual is called the Qualified Manager. (An owner, partner, or corporate officer may serve as the Qualified Manager, or may hire someone to fill this role.) Qualified Managers must spend at least 51 percent of their time in active control of the business and must meet the following requirements:

• Be 18 or older
• Undergo a criminal history background check through the DOJ and the FBI
• Have two years (4,000 hours) of experience within the last five years as an employee of a licensed California repossession agency or two years (4,000 hours) of recent legally acquired experience recovering personal property sold under a security agreement in California (while working as an employee of a financial institution or vehicle dealer)
• Pass a two-hour multiple-choice examination covering the Collateral Recovery Act (formerly the Repossessors Act) and related laws, prohibited acts and citations, conduct of business, and disciplinary proceedings. A copy of the Collateral Recovery Act will be sent to you.

Submit a completed application with two recent passport-quality photographs, a $325 application fee and a Repossessor Agency Qualified Manager Live Scan form signed by the Live Scan Operator. A $32 DOJ fingerprint processing fee and a $19 FBI fingerprint processing fee must be paid for each applicant at the Live Scan site. Send your application package to the Bureau of Security and Investigative Services, P.O. Box 989002, West Sacramento, CA 95798-9002.

Repossession Agency Employee

Employees hired by a repossession agency to recover property must be registered with the Department of Consumer Affairs. To be eligible to apply for registration as a repossession agency employee, you must meet the following requirements:

• Be 18 or older; and
• Submit your completed application with two recent passport-quality photographs, a $75 registration fee and a Repossession Agency Employee Live Scan form signed by the Live Scan Operator. A $32 DOJ fingerprint processing fee and a $19 FBI fingerprint processing fee must be paid for each applicant at the Live Scan site. Send your application package to the Bureau of Security and Investigative Services, P.O. Box 989002, West Sacramento, CA 95798-9002.

Once you have submitted your application and the appropriate fees, you may work for 120 days with a temporary registration if you do not have a record of any felony convictions and have not committed any violations of the Collateral Recovery Act or any other acts constituting grounds for denial.

State registration is not required of clerical employees or others whose duties do not include actual repossessing.

Note: Whenever you change employers, you must reregister within 15 working days. Submit a re-registration application and $30 fee to the Bureau of Security and Investigative Services, P.O. Box 989002, West Sacramento, CA 95798-9002.

Applications for registration as a repossessor employee are available from repossession agencies. To request an application for licensure as a repossession agency or qualified manager, call 916-322-4000 or 1-800-952-5210, or visit our Web site at www.bsis.ca.gov

Protection of the public shall be the highest priority for the Bureau of Security and Investigative Services in exercising licensing, regulatory and disciplinary functions. Whenever the protection of the public is consistent with other interests sought to be promoted, the protection of the public shall be paramount.

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