7502-7502.6

BUSINESS AND PROFESSIONS CODE
SECTION 7502-7502.6




7502.  No person shall engage within this state in the activities of
a repossession agency as defined in Section 7500.2 unless the person
holds a valid repossession agency license or is exempt from
licensure pursuant to Section 7500.2 or 7500.3.




7502.1.  (a) Any person who violates any provision of this chapter,
or who conspires with another person to violate any provision of this
chapter, or who knowingly engages a nonexempt unlicensed person to
repossess collateral on his or her behalf is guilty of a misdemeanor,
and is punishable by a fine of five thousand dollars ($5,000), or by
imprisonment in the county jail for not more than one year, or by
both the fine and imprisonment. In addition, any tow vehicle subject
to registration under the Vehicle Code that is used to violate any
provision of this chapter is subject to removal and impound pursuant
to Section 22850 of the Vehicle Code.
   (b) Within existing resources, the Commissioner of Financial
Institutions, the Commissioner of Corporations, and the Director of
Motor Vehicles may each designate employees to investigate and report
on violations of this chapter by any of the licensees of their
respective departments. Those employees are authorized to actively
cooperate with the bureau in the investigation of those activities.
   (c) A proceeding to impose the penalties 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.



7502.2.  (a) Any financial institution 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 Financial
Institutions and the Commissioner of Corporations may each designate
employees to investigate and report on violations of this section by
any of the licensees of their respective departments. 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.



7502.3.  Any person who knowingly falsifies the fingerprints or
photographs required by any provision of this chapter is guilty of a
felony.


7502.4.  In addition to the remedy provided for in Section 125.5,
the superior court for the county in which any licensee licensed
under this chapter has engaged or is about to engage in any act which
constitutes a violation of this chapter may, upon a petition filed
by the director and accompanied by an affidavit or affidavits in
support thereof and a memorandum of points and authorities, issue a
temporary restraining order or other appropriate order restraining
the licensee from engaging in the business or profession for which
the person is licensed or from any part thereof, in accordance with
the provisions of this section.
   (a) If an affidavit in support of the petition show that the
licensee has engaged or is about to engage in acts or ommissions
constituting a violation of this chapter and if the court is
satisfied that permitting the licensee to continue to engage in the
business and profession for which the license was issued will
endanger the public health, safety, or welfare, the court may issue
an order temporarily restraining the licensee from engaging in the
profession for which he or she is licensed.
   (b) The order may not be issued without notice to the licensee
unless it appears from facts shown by the affidavit that serious
injury would result to the public before the matter can be heard on
notice.
   (c) Except as otherwise specifically provided by this section,
proceedings under this section shall be governed by Chapter 3
(commencing with Section 525) of Title 7 of Part 2 of the Code of
Civil Procedure, except that no undertaking shall be required.
   (d) When a restraining order is issued pursuant to this section,
or within a time to be allowed by the superior court, but in any case
not more than 30 days after the restraining order is issued, an
accusation shall be filed by the director pursuant to Section 11503
of the Government Code. The accusation shall be served upon the
licensee as provided by Section 11505 of the Government Code. The
licensee shall have all of the rights and privileges available as
specified in Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code. However, if the
licensee requests a hearing on the accusation, the director shall
provide the licensee with a hearing within 30 days of the request and
a decision within 15 days of the date of the conclusion of the
hearing, or the court may nullify the restraining order previously
issued. Any restraining order issued pursuant to this section shall
be dissolved by operation of law at such time the director's decision
is subject to judicial review pursuant to Section 1094.5 of the Code
of Civil Procedure.



7502.5.  The provisions of this chapter do not prevent the local
authorities in any city, county, or city and county, by ordinance and
within the exercise of the police power of the city, county, or city
and county from requiring repossession agency licensees or
registrants to register their names and a file copy of their state
identification cards with the city, county, or city and county. No
fee may be charged nor may any application be required by the city,
county, or city and county for the registration.



7502.6.  (a) The superior court in and for the county wherein any
person carries on, or attempts to carry on, business as a
repossession agency without first having obtained a license pursuant
to this chapter, or carries on that business after the revocation or
expiration of any license or during the period of suspension of any
license, may, on application of the director, or any person licensed
under this act or association representing those licensees or any
member of the general public, issue an injunction or other
appropriate order restraining that conduct and may impose civil fines
not exceeding ten thousand dollars ($10,000).
   (b) A proceeding to impose the fine specified in subdivision (a)
and enjoin the unlicensed operation of a repossession agency business
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 a city prosecutor in any city or city and
county having a full-time city prosecutor, for the jurisdiction in
which the unlicensed activity has 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 Investigator Fund.
   (c) The proceedings under this section shall be governed by
Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the
Code of Civil Procedure, except that there shall be no requirement to
allege facts necessary to show or tending to show lack of an
adequate remedy at law or irreparable injury.