Business and Professions Code
Part 45 of 52 · provisions 8,801–9,000
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This part may be cited as the Real Estate Law. This section says chapter definitions apply only to this part, unless the text says otherwise. “Commissioner” means the Real Estate Commissioner. “Department” means the Department of Real Estate in the Business and Consumer Services Agency. This section says certain references like “bureau” and “Real Estate Division” mean the Department of Real Estate, and it states the section becomes operative on July 1, 2018.
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- 7362.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
A board-approved barbering school must have enough equipment and floor space, enroll at least 15 bona fide full-time students, and maintain the required practical training and technical instruction.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7362.2. A school of barbering approved by the board shall also do all of the following: (a) Possess the equipment and floor space necessary for comprehensive instruction of 15 barber students or the number of students enrolled in the course, whichever is greater. (b) Have entered on the roll of a proposed school of barbering at least 15 bona fide, full-time students for the barbering course. For purposes of this section, a bona fide, full-time student is a person who has been entered on the roll of a proposed school of barbering and has committed to attend a full course in barbering. (c) Maintain a course of practical training and technical instruction for the full barbering course as specified in this chapter and in board regulations. (Amended by Stats. 2003, Ch. 788, Sec. 43. Effective January 1, 2004.) - 7362.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
An approved school of electrology must have enough equipment and floor space, enroll at least five bona fide full-time students, and maintain practical training and technical instruction for the full electrology course.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7362.3. A school of electrology approved by the board shall also do all of the following: (a) Possess the equipment and floor space necessary for comprehensive instruction of five electrology students or the number of students enrolled in the course, whichever is greater. (b) Have entered on the roll of a proposed school of electrology at least five bona fide, full-time students for the electrology course. For purposes of this section, a bona fide, full-time student is a person who has been entered on the roll of a proposed school of electrology and has committed to attend a full course in electrology. (c) Maintain a course of practical training and technical instruction for the full electrology course as specified in this chapter and in board regulations. (Amended by Stats. 2003, Ch. 788, Sec. 44. Effective January 1, 2004.) - 7362.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
Schools that establish barbering or cosmetology courses must provide at least 1,000 hours of practical and technical instruction.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7362.5. (a) A course in barbering or cosmetology established by a school shall consist of not less than 1,000 hours of practical and technical instruction in the practice of barbering or cosmetology, as defined in Section 7316. (b) The curriculum for a barbering course shall, at a minimum, include technical and practical instruction in the following areas: (1) One hundred hours in health and safety, which includes hazardous substances, chemical safety, safety data sheets, protection from hazardous chemicals, preventing chemical injuries, health and safety laws and regulations, and preventing communicable diseases. (2) One hundred hours in disinfection and sanitation, which includes disinfection procedures to protect the health and safety of consumers as well as the technician and proper disinfection procedures for equipment used in establishments. (3) (A) Two hundred hours in chemical hair services, which includes coloring, straightening, waving, bleaching, hair analysis, predisposition and strand tests, safety precautions, formula mixing, and the use of dye removers. (B) Instruction in chemical hair services shall include instruction regarding the provision of services to individuals with all hair types and textures, including, but not limited to, various curl or wave patterns, hair strand thicknesses, and volumes of hair. (4) (A) Two hundred hours in hairstyling services, which includes arranging, blow drying, cleansing, curling, dressing, hair analysis, shampooing, waving, and nonchemical straightening, and hair cutting, including the use of shears, razors, electrical clippers and trimmers, and thinning shears, for wet and dry cutting. (B) Instruction in hairstyling services shall include instruction regarding the provision of services to individuals with all hair types and textures, including, but not limited to, various curl or wave patterns, hair strand thicknesses, and volumes of hair. (5) Two hundred hours in shaving and trimming of the beard, which includes preparing the client’s hair for shaving, assessing the condition of the client’s skin, performing shaving techniques, applying aftershave antiseptic following facial services, and massaging the face and rolling cream massages. (c) The curriculum for a cosmetology course shall, at a minimum, include technical and practical instruction in the following areas: (1) One hundred hours in health and safety, which includes hazardous substances, chemical safety, safety data sheets, protection from hazardous chemicals, preventing chemical injuries, health and safety laws and regulations, and preventing communicable diseases. (2) One hundred hours in disinfection and sanitation, which includes disinfection procedures to protect the health and safety of consumers as well as the technician and proper disinfection procedures for equipment used in establishments. (3) (A) Two hundred hours in chemical hair services, which includes coloring, straightening, waving, bleaching, hair analysis, predisposition and strand tests, safety precautions, formula mixing, and the use of dye removers. (B) Instruction in chemical hair services shall include instruction regarding the provision of services to individuals with all hair types and textures, including, but not limited to, various curl or wave patterns, hair strand thicknesses, and volumes of hair. (4) (A) Two hundred hours in hairstyling services, which includes arranging, blow drying, cleansing, curling, dressing, hair analysis, shampooing, waving, and nonchemical straightening, and hair cutting, including the use of shears, razors, electrical clippers and trimmers, and thinning shears, for wet and dry cutting. (B) Instruction in hairstyling services shall include instruction regarding the provision of services to individuals with all hair types and textures, including, but not limited to, various curl or wave patterns, hair strand thicknesses, and volumes of hair. (5) One hundred fifty hours in skin care services, which includes chemical and manual facials and massaging, stimulating, exfoliating, cleansing, or beautifying the face, scalp, neck, or body by the use of hands, esthetic devices, cosmetic products, antiseptics, lotions, tonics, or creams that do not result in the ablation or destruction of the live tissue. (6) Fifty hours in hair removal and lash and brow beautification, which includes tinting and perming eyelashes and brows and applying eyelashes to any person, and includes removing superfluous hair from the body of any person by use of depilatories, tweezers, sugaring, nonprescription chemicals, or waxing, or by the use of devices and appliances of any kind or description, except by the use of lasers or light waves, which are commonly known as rays. (7) One hundred hours in manicure and pedicure, which includes water and oil manicures, hand and arm massage, foot and ankle massage, nail analysis, and artificial nail services, including, but not limited to, acrylic, liquid and powder brush-ons, dip, tips, wraps, and repairs. (Amended by Stats. 2024, Ch. 384, Sec. 2. (AB 2166) Effective January 1, 2025.) - 7363. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
Schools that establish hairstyling courses must make them at least 600 hours long, with practical and technical instruction.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7363. (a) A course in hairstyling established by a school shall consist of not less than 600 hours of practical and technical instruction. (b) The curriculum for a hairstyling course shall include, at a minimum, technical and practical instruction in the following areas: (1) One hundred hours in health and safety, which includes hazardous substances, chemical safety, safety data sheets, protection from hazardous chemicals, preventing chemical injuries, health and safety laws and regulations, and preventing communicable diseases. (2) One hundred hours in disinfection and sanitation, which includes disinfection procedures to protect the health and safety of consumers as well as the technician and proper disinfection procedures for equipment used in establishments. (3) (A) Two hundred hours in hairstyling services, which includes arranging, blow drying, cleansing, curling, dressing, hair analysis, shampooing, waving, and nonchemical straightening, and hair cutting including the use of shears, razors, electrical clippers and trimmers, and thinning shears, for wet and dry cutting. (B) Instruction in hairstyling services shall include instruction regarding the provision of services to individuals with all hair types and textures, including, but not limited to, various curl or wave patterns, hair strand thicknesses, and volumes of hair. (Amended by Stats. 2025, Ch. 67, Sec. 13. (AB 1170) Effective January 1, 2026.) - 7364. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
A school that offers a skin care course must provide at least 600 hours of practical and technical instruction.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7364. (a) A course in skin care course established by a school shall consist of not less than 600 hours of practical and technical instruction. (b) The curriculum for a skin care course shall, at a minimum, include technical and practical instruction in the following areas: (1) One hundred hours in health and safety, which includes hazardous substances, chemical safety, safety data sheets, protection from hazardous chemicals, preventing chemical injuries, health and safety laws and regulations, and preventing communicable diseases. (2) One hundred hours in disinfection and sanitation, which includes disinfection procedures to protect the health and safety of consumers as well as the technician and proper disinfection procedures for equipment used in establishments. (3) Three hundred fifty hours in skin care, which includes chemical and manual facials and massaging, stimulating, exfoliating, cleansing, or beautifying the face, scalp, neck, or body by the use of hands, esthetic devices, cosmetic products, antiseptics, lotions, tonics, or creams that do not result in the ablation or destruction of the live tissue. (4) Fifty hours in hair removal and lash and brow beautification, which includes tinting and perming eyelashes and brows and applying eyelashes to any person and includes removing superfluous hair from the body of any person by use of depilatories, tweezers, sugaring, nonprescription chemicals, or waxing, or by the use of devices and appliances of any kind or description, except by the use of lasers or light waves, which are commonly known as rays. (Amended by Stats. 2021, Ch. 648, Sec. 22. (SB 803) Effective January 1, 2022.) - 7365. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
Schools that establish a nail care course must provide at least 400 hours of practical and technical instruction.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7365. (a) A nail care course established by a school shall consist of not less than 400 hours of practical and technical instruction. (b) The curriculum for a nail care course shall, at a minimum, include the technical and practical instruction in the following areas: (1) One hundred hours in health and safety, which includes hazardous substances, chemical safety, safety data sheets, protection from hazardous chemicals, preventing chemical injuries, health and safety laws and regulations, and preventing communicable diseases. (2) One hundred hours in disinfection and sanitation, which includes disinfection procedures to protect the health and safety of consumers as well as the technician and proper disinfection procedures for equipment used in establishments. (3) One hundred fifty hours in manicure and pedicure, which includes water and oil manicures, hand and arm massage, complete pedicures, foot and ankle massage, nail analysis, nail repairs, and application of artificial nails, liquid, gel, powder brush-ons, dip, nail tips, and wraps. (Amended by Stats. 2021, Ch. 648, Sec. 23. (SB 803) Effective January 1, 2022.) - 7366. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
Schools that establish an electrolysis course must provide at least 600 hours of practical and technical instruction.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7366. (a) A course in electrolysis established by a school shall consist of not less than 600 hours of practical and technical instruction in the practice of electrology. (b) The curriculum for an electrolysis course shall consist of technical and practical instruction in the following areas: (1) One hundred hours in health and safety, which includes hazardous substances, chemical safety, safety data sheets, protection from hazardous chemicals, preventing chemical injuries, health and safety laws and regulations, and preventing communicable diseases. (2) One hundred hours in disinfection and sanitation, including disinfection procedures to protect the health and safety of consumers and the technician and proper disinfection procedures for equipment used in establishments. (3) Four hundred hours in electrolysis, thermolysis, blend or dual modality, and electricity. (A) The subject of electrolysis shall include the study of epilation using single- and multiple-needle insertion techniques, the use of galvanic current, skin reactions and anaphoresis and cataphoresis, and evaluating a client’s health history for compatibility with electrolysis treatments. (B) The subject of thermolysis shall include the study of epilation using automatic and manual thermolysis equipment, insertion techniques, the use of high frequency current in both high and low intensities, skin reactions, and evaluating a client’s health history for compatibility with thermolysis treatments. (C) The subject of blend or dual modality shall include the study of epilation using a combination of high frequency and galvanic currents, insertion techniques, skin reactions and anaphoresis and cataphoresis, and evaluating a client’s health history for compatibility with Blend/Dual Modality treatments. (D) The subject of electricity shall include the nature of electrical current, principles of operating electrical devices, various safety precautions to be applied when operating electrical equipment, and proper maintenance of equipment. (Amended by Stats. 2022, Ch. 527, Sec. 5. (AB 2196) Effective January 1, 2023.) - 7367. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
When a student changes from one program of instruction to another, the board must give credit for identical training already completed in the other course.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7367. For students who change from one program of instruction to another, the board shall grant credit for training obtained in one course that is identical to training required in another course. (Amended by Stats. 2003, Ch. 788, Sec. 48. Effective January 1, 2004.) - 7368. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
A school may not advertise barbering, cosmetology, or electrolysis services to the public unless the services are expressly labeled as student work.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7368. No school shall advertise barbering, cosmetology or electrolysis services to the public through any medium unless those services are expressly designated as student work. (Added by Stats. 1990, Ch. 1672, Sec. 3. Operative July 1, 1992, by Sec. 10 of Ch. 1672.) - 7389. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
The board must develop or adopt a health and safety course, and the course must be taught in schools approved by the board.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7389. (a) The board shall develop or adopt a health and safety course on hazardous substances, basic labor laws, as specified in Section 7314.3, and physical and sexual assault awareness, as specified in Section 7314.3, which shall be taught in schools approved by the board. Course development shall include pilot testing of the course and training classes to prepare instructors to effectively use the course. (b) This section shall become operative on July 1, 2019. (Repealed (in Sec. 5) and added by Stats. 2017, Ch. 312, Sec. 6. (AB 326) Effective January 1, 2018. Section operative July 1, 2019, by its own provisions.) - 7389.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
A correctional-institution training course in barbering, cosmetology, or hairstyling may qualify a trained person to sit for the licensure exam if the course complies with the act and related regulations.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7389.5. A course of training in barbering, cosmetology, or hairstyling established by federal or state correctional institutions in California may qualify a person thereby trained to take the examination for licensure as a barber, cosmetologist, or hairstylist, provided the course complies with all applicable provisions of this act and the regulations adopted pursuant thereto. (Amended by Stats. 2021, Ch. 648, Sec. 24. (SB 803) Effective January 1, 2022.) - 7395.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
This section allows eligible cosmetology students to work as externs and sets limits and supervision rules for the externship program.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7395.1. (a) A student who is enrolled in an approved course of instruction in a school of cosmetology approved by the board pursuant to subdivision (a) of Section 7362 may, upon completion of a minimum of 25 percent of the clock hours required for graduation in the course, work as an extern in an establishment participating in the educational program of the school. (b) A person working as an extern shall receive clock hour credit toward graduation, but that credit shall not exceed 25 hours per week and shall not exceed 25 percent of the total clock hours required for completion of the course. (c) The externship program shall be conducted in an establishment meeting all of the following criteria: (1) The establishment is licensed by the board. (2) The establishment has a minimum of four licensees working at the establishment, including employees and owners or managers. (3) All licensees at the establishment are in good standing with the board. (4) Licensees working at the establishment work for salaries or commissions rather than on a space rental basis. (5) No more than one extern shall work in an establishment for every four licensees working in the establishment. A regularly employed licensee shall not be displaced or have the licensee’s work hours reduced or altered to accommodate the placement of an extern in an establishment. Prior to placement of the extern, the establishment shall agree, in writing sent to the school and to all affected licensees, that no reduction or alteration of any licensee’s current work schedule shall occur. This shall not prevent a licensee from voluntarily reducing or altering the licensee’s work schedule. (6) Externs shall wear conspicuous school identification at all times while working in the establishment, and shall carry a school laminated identification, that includes a picture, in a form approved by the board. (d) (1) No less than 90 percent of the responsibilities and duties of the extern shall consist of the acts included within the practice of cosmetology as defined in Section 7316. (2) The establishment shall consult with the assigning school regarding the extern’s progress during the externship. The owner or manager of the establishment shall monitor and report on the student’s progress to the school on a regular basis, with assistance from supervising licensees. (3) A participating school shall assess the extern’s learning outcome from the externship program. The school shall maintain accurate records of the extern’s educational experience in the externship program and records that indicate how the extern’s learning outcome translates into course credit. (e) Participation in an externship program made available by a school shall be voluntary, may be terminated by the student at any time, and shall not be a prerequisite for graduation. (f) The establishment that chooses to utilize the extern is liable for the extern’s general liability insurance, as well as cosmetology malpractice liability insurance, and shall furnish proof to the participating school that the establishment is covered by both forms of liability insurance and that the extern is covered under that insurance. (g) (1) It is the purpose of the externship program authorized by this section to provide students with skills, knowledge, and attitudes necessary to acquire employment in the field for which they are being trained, and to extend formalized classroom instruction. (2) Instruction shall be based on skills, knowledge, attitudes, and performance levels in the area of cosmetology for which the instruction is conducted. (3) An extern may perform only acts listed within the definition of the practice of cosmetology as provided in Section 7316, if a licensee directly supervises those acts, except that an extern may not use or apply chemical treatments unless the extern has received appropriate training in application of those treatments from an approved cosmetology school. An extern may work on a paying client only in an assisting capacity and only with the direct and immediate supervision of a licensee. (4) The extern shall not perform any work in a manner that would violate the law. (Amended by Stats. 2021, Ch. 648, Sec. 25. (SB 803) Effective January 1, 2022.) - 7395.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. )
This section lets eligible barbering students work as externs, but only after 25% of required clock hours and only under strict supervision and program rules.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 8. Schools, Instructors, and Curricula [7362 - 7395.2] ( Article 8 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7395.2. (a) A student who is enrolled in an approved course of instruction in a school of barbering approved by the board pursuant to subdivision (a) of Section 7362 may, upon completion of a minimum of 25 percent of the clock hours required for graduation in the course, work as an extern in an establishment participating in the educational program of the school. (b) A person working as an extern shall receive clock hour credit toward graduation, but that credit shall not exceed 25 hours per week and shall not exceed 25 percent of the total clock hours required for completion of the course. (c) The externship program shall be conducted in an establishment meeting all of the following criteria: (1) The establishment is licensed by the board. (2) The establishment has a minimum of four licensees working at the establishment, including employees and owners or managers. (3) All licensees at the establishment are in good standing with the board. (4) Licensees working at the establishment work for salaries or commissions rather than on a space rental basis. (5) No more than one extern shall work in an establishment for every four licensees working in the establishment. A regularly employed licensee shall not be displaced or have the licensee’s work hours reduced or altered to accommodate the placement of an extern in an establishment. Prior to placement of the extern, the establishment shall agree, in writing sent to the school and to all affected licensees, that no reduction or alteration of any licensee’s current work schedule shall occur. This shall not prevent a licensee from voluntarily reducing or altering the licensee’s work schedule. (6) Externs shall wear conspicuous school identification at all times while working in the establishment, and shall carry a school laminated identification, that includes a picture, in a form approved by the board. (d) (1) No less than 90 percent of the responsibilities and duties of the extern shall consist of the acts included within the practice of barbering as defined in Section 7316. (2) The establishment shall consult with the assigning school regarding the extern’s progress during the externship. The owner or manager of the establishment shall monitor and report on the student’s progress to the school on a regular basis, with assistance from supervising licensees. (3) A participating school shall assess the extern’s learning outcome from the externship program. The school shall maintain accurate records of the extern’s educational experience in the externship program and records that indicate how the extern’s learning outcome translates into course credit. (e) Participation in an externship program made available by a school shall be voluntary, may be terminated by the student at any time, and shall not be a prerequisite for graduation. (f) The establishment that chooses to utilize the extern is liable for the extern’s general liability insurance, as well as barbering malpractice liability insurance, and shall furnish proof to the participating school that the establishment is covered by both forms of liability insurance and that the extern is covered under that insurance. (g) (1) It is the purpose of the externship program authorized by this section to provide students with skills, knowledge, and attitudes necessary to acquire employment in the field for which they are being trained, and to extend formalized classroom instruction. (2) Instruction shall be based on skills, knowledge, attitudes, and performance levels in the area of barbering for which the instruction is conducted. (3) An extern may perform only acts listed within the definition of the practice of barbering as provided in Section 7316, if a licensee directly supervises those acts, except that an extern may not use or apply chemical treatments unless the extern has received appropriate training in application of those treatments from an approved barbering school. An extern may work on a paying client only in an assisting capacity and only with the direct and immediate supervision of a licensee. (4) The extern shall not perform any work in a manner that would violate the law. (Amended by Stats. 2022, Ch. 527, Sec. 6. (AB 2196) Effective January 1, 2023.) - 7396. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. )
The board must set the form and content of licenses under Section 164, and the license must show the holder’s license type and include the licensee’s photograph.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7396. The form and content of a license issued by the board shall be determined in accordance with Section 164. The license shall prominently state that the holder is licensed as a barber, cosmetologist, esthetician, manicurist, electrologist, or apprentice, and shall contain a photograph of the licensee. (Amended by Stats. 2003, Ch. 788, Sec. 57. Effective January 1, 2004.) - 7396.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. )
The board can issue probationary licenses and set probation terms for applicants.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7396.5. (a) Notwithstanding any other provision of law, the board may, in its sole discretion, issue a probationary license to an applicant subject to terms and conditions deemed appropriate by the board, including, but not limited to, the following: (1) Continuing medical, psychiatric, or psychological treatment. (2) Ongoing participation in a specified rehabilitation program. (3) Abstention from the use of alcohol or drugs. (4) Compliance with all provisions of this chapter. (b) (1) Notwithstanding any other provision of law, and for purposes of this section, when deciding whether to issue a probationary license, the board shall request that an applicant with a dismissed conviction provide proof of that dismissal and shall give special consideration to applicants whose convictions have been dismissed pursuant to Section 1203.4 or 1203.4a of the Penal Code. (2) The board shall also take into account and consider any other reasonable documents or individual character references provided by the applicant that may serve as evidence of rehabilitation as deemed appropriate by the board. (c) The board may modify or terminate the terms and conditions imposed on the probationary license upon receipt of a petition from the applicant or licensee. (d) For purposes of issuing a probationary license to qualified new applicants, the board shall develop standard terms of probation that shall include, but not be limited to, the following: (1) A three-year limit on the individual probationary license. (2) A process to obtain a standard license for applicants who were issued a probationary license. (3) Supervision requirements. (4) Compliance and quarterly reporting requirements. (Amended by Stats. 2008, Ch. 675, Sec. 7. Effective January 1, 2009.) - 7397. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. )
Every licensee must display the license in a conspicuous place at the place of business or employment.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7397. Every licensee shall display the license in a conspicuous place in his or her place of business or place of employment. (Added by Stats. 1990, Ch. 1672, Sec. 3. Operative July 1, 1992, by Sec. 10 of Ch. 1672.) - 7398. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. )
An applicant may receive a duplicate license if they file a statement explaining the loss, swear to it, and pay the fee required by the chapter.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7398. A duplicate license shall be issued upon the filing of a statement explaining the loss, verified by the oath of the applicant, and accompanied by the fee required by this chapter. (Added by Stats. 1990, Ch. 1672, Sec. 3. Operative July 1, 1992, by Sec. 10 of Ch. 1672.) - 7399. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. )
A temporary license may not be issued.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7399. Under no circumstances shall a temporary license be issued. (Added by Stats. 1990, Ch. 1672, Sec. 3. Operative July 1, 1992, by Sec. 10 of Ch. 1672.) - 7400. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. )
Most board licensees must tell the board their new address within 30 days of an address change; establishments are excepted. After notice is received, the board must update the register.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7400. Every licensee of the board, except establishments shall, within 30 days after a change of address, notify the board of the new address, and, upon receipt of the notification, the board shall make the necessary changes in the register. (Amended by Stats. 2003, Ch. 788, Sec. 58. Effective January 1, 2004.) - 7401. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. )
At license renewal, covered licensees must report their practice status and classify themselves on the application; certain licensees must also report whether an independent contractor is operating in the establishment.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7401. (a) An individual licensed pursuant to Section 7396 shall report to the board at the time of license renewal their practice status, designated as one of the following: (1) Full-time practice in California. (2) Full-time practice outside of California. (3) Part-time practice in California. (4) Not working in the industry. (5) Retired. (6) Other practice status, as may be further defined by the board. (b) An individual licensed pursuant to Section 7396 shall, at the time of license renewal, identify themselves on the application as one of the following: (1) Employee. (2) Independent contractor. (3) Salon owner. (c) An individual licensed pursuant to Section 7347 shall report to the board at the time of license renewal whether they have an independent contractor operating in the establishment. (Amended by Stats. 2021, Ch. 648, Sec. 26. (SB 803) Effective January 1, 2022.) - 7402.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. )
This section lets the board create and issue personal service permits, sets rules for them, and limits certain conditions the board can impose.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 10. Licenses [7396 - 7402.5] ( Article 10 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7402.5. (a) For purposes of this section, a “personal service permit” means a permit that authorizes an individual to perform services, for which he or she holds a license pursuant to this chapter, outside of an establishment, as defined in Section 7346, in accordance with the regulations established by the board. (b) The board may issue a personal service permit to an individual who meets the criteria for a personal service permit set forth in regulation. (c) The board shall issue regulations regarding a personal service permit. In establishing the regulations, the board shall hold, at a minimum, two stakeholder meetings. (1) The board shall determine the appropriate licensing categories that may apply for a personal service permit in order to protect consumer safety. (2) The board shall authorize a personal service permit holder to perform services outside of a licensed establishment. (3) The board shall not exempt a personal service permit holder from any of the board’s existing regulations or requirements on health and safety. (4) The board shall not require a personal service permit holder to be employed by an establishment, unless the board determines that it would be necessary in order to maintain consumer safety. (5) The regulations may require an applicant for a personal service permit to have proof of liability insurance and to pass a criminal background clearance. (d) A personal service permit shall be valid for two years and shall be renewed prior to expiration. The fee for a personal service permit shall be no greater than fifty dollars ($50). The fee for the renewal of a personal service permit shall be no greater than fifty dollars ($50). The delinquency fee shall be 50 percent of the renewal fee in effect on the date of the renewal. (e) The board shall report on the progress of the regulatory process and issuance of personal service permits to the Legislature on or before July 1, 2017. (1) The report shall be submitted in compliance with Section 9795 of the Government Code. (2) The requirement to report to the Legislature under this subdivision is inoperative on July 1, 2021, pursuant to Section 10231.5 of the Government Code. (Added by Stats. 2015, Ch. 430, Sec. 28. (AB 181) Effective January 1, 2016.) - 7403. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 11. Disciplinary Proceedings [7403 - 7405] ( Article 11 added by Stats. 1990, Ch. 1672, Sec. 3. )
The board may discipline barbering and cosmetology licenses, and it must give reasons and handle certain criminal-history-based denials and hearings in specified ways.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 11. Disciplinary Proceedings [7403 - 7405] ( Article 11 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7403. (a) Notwithstanding any other provision of law, the board may revoke, suspend, or deny at any time any license required by this chapter on any of the grounds for disciplinary action provided in this article. The proceedings under this article shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the board shall have all the powers granted therein. (b) The board may deny a license to an applicant on any of the grounds specified in Section 480. (c) In addition to the requirements provided in Sections 485 and 486, upon denying a license to an applicant, the board shall provide a statement of reasons for the denial that does the following: (1) Evaluates evidence of rehabilitation submitted by the applicant, if any. (2) Provides the board’s criteria relating to rehabilitation, formulated pursuant to Section 482, that takes into account the age and severity of the offense, and the evidence relating to participation in treatment or other rehabilitation programs. (3) If the board’s decision was based on the applicant’s prior criminal conviction, justifies the board’s denial of a license and conveys the reasons why the prior criminal conviction is substantially related to the qualifications, functions, or duties of a barber or cosmetologist. (d) Commencing July 1, 2009, all of the following shall apply: (1) If the denial of a license is due at least in part to the applicant’s state or federal criminal history record, the board shall, in addition to the information provided pursuant to paragraph (3) of subdivision (c), provide to the applicant a copy of his or her criminal history record if the applicant makes a written request to the board for a copy, specifying an address to which it is to be sent. (A) The state or federal criminal history record shall not be modified or altered from its form or content as provided by the Department of Justice. (B) The criminal history record shall be provided in such a manner as to protect the confidentiality and privacy of the applicant’s criminal history record and the criminal history record shall not be made available by the board to any employer. (C) The board shall retain a copy of the applicant’s written request and a copy of the response sent to the applicant, which shall include the date and the address to which the response was sent. (2) The board shall make this information available upon request by the Department of Justice or the Federal Bureau of Investigation. (e) Notwithstanding Section 487, the board shall conduct a hearing of a license denial within 90 days of receiving an applicant’s request for a hearing. For all other hearing requests, the board shall determine when the hearing shall be conducted. (f) In any case in which the administrative law judge recommends that the board revoke, suspend, or deny a license, the administrative law judge may, upon presentation of suitable proof, order the licensee to pay the board the reasonable costs of the investigation and adjudication of the case. For purposes of this section, “costs” include charges by the board for investigating the case, charges incurred by the office of the Attorney General for investigating and presenting the case, and charges incurred by the Office of Administrative Hearings for hearing the case and issuing a proposed decision. (g) The costs to be assessed shall be fixed by the administrative law judge and shall not, in any event, be increased by the board. When the board does not adopt a proposed decision and remands the case to an administrative law judge, the administrative law judge shall not increase the amount of any costs assessed in the proposed decision. (h) The board may enforce the order for payment in the superior court in the county where the administrative hearing was held. This right of enforcement shall be in addition to any other rights the board may have as to any licensee directed to pay costs. (i) In any judicial action for the recovery of costs, proof of the board’s decision shall be conclusive proof of the validity of the order of payment and the terms for payment. (j) Notwithstanding any other provision of law, all costs recovered under this section shall be deposited in the board’s contingent fund as a scheduled reimbursement in the fiscal year in which the costs are actually recovered. (Amended by Stats. 2009, Ch. 140, Sec. 16. (AB 1164) Effective January 1, 2010.) - 7403.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 11. Disciplinary Proceedings [7403 - 7405] ( Article 11 added by Stats. 1990, Ch. 1672, Sec. 3. )
An executive officer or designee may temporarily suspend a license after certain inspection violations, and the license then goes on probation with required training, reinspection, and fee payment.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 11. Disciplinary Proceedings [7403 - 7405] ( Article 11 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7403.2. (a) Notwithstanding any other provision of law, the executive officer or his or her designee, pursuant to an inspection of an establishment where health and safety laws and regulations related to manicure and pedicure equipment have been violated and a citation issued, may, without advance hearing, suspend temporarily a license issued under this chapter if, in the opinion of the executive officer or his or her designee, the action is necessary to protect the public’s health and safety. The suspension shall be effective upon the executive officer or his or her designee providing written notice of the suspension to the licensee. (b) The suspension of a license pursuant to this section shall be immediately stayed. The license shall be placed on probation for one year from the date of the suspension and be subject to the following terms and conditions: (1) The licensee shall undertake board-approved remedial training related to the health and safety laws and regulations applicable to the establishment. (2) The licensee shall be subject to reinspection by the board. The owner of the establishment shall pay all costs of inspection. (3) The licensee shall pay all citation fines to the board. In cases of economic hardship, the licensee may enter into an agreement with the board to make periodic payments to pay the citation fine amount. (c) The licensee whose license was suspended under this section may appeal in writing to the disciplinary review committee to determine if the suspension and the probationary terms and conditions should be modified or set aside. The appeal shall be submitted to the committee within 30 days of the effective date of the license suspension. An appeal not submitted within that timeframe shall be rejected by the committee. The appeal shall be conducted pursuant to the process described in Section 7410. The licensee may appeal the decision of the committee to the program administrator pursuant to the process described in Section 7411. (d) If the licensee fails to comply with the probationary terms and conditions imposed under this section, the board may petition to revoke the licensee’s probation. The proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (e) Upon the licensee’s successful completion of the probationary terms and conditions, the board shall reinstate the license. (Added by Stats. 2006, Ch. 381, Sec. 1. Effective September 22, 2006.) - 7403.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 11. Disciplinary Proceedings [7403 - 7405] ( Article 11 added by Stats. 1990, Ch. 1672, Sec. 3. )
The executive officer may immediately close an establishment for severe health and safety violations, and the establishment must close and stop operating when a suspension notice is issued.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 11. Disciplinary Proceedings [7403 - 7405] ( Article 11 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7403.5. (a) In addition to the authority provided by Sections 494 and 7403, the executive officer, in his or her discretion, may upon written notice immediately close any establishment which, upon completion of an inspection, is found to have health and safety violations of such a severe nature as to pose an immediate threat to public health and safety. (b) The executive officer shall issue a written notice of suspension of the establishment license including the grounds therefor and a notice of closure. The notice of closure shall be posted at the establishment so as to be clearly visible to the general public and to patrons. (c) Upon issuance of the written notice of suspension of the establishment license, the establishment shall immediately close to the general public and to patrons and shall discontinue all operations until the suspension has been vacated by the executive officer, the suspension expires, is superseded by an order issued under the authority of Section 494, or until the establishment no longer operates under this chapter. (d) (1) Before issuing a suspension order under this section, the executive officer shall, if practical, give the establishment notice and an opportunity to be heard. If no hearing is provided prior to the issuance of the suspension order, the establishment may request one after the suspension has been issued. (2) Notice and hearing under this section may be oral or written, including notice and hearing by telephone, facsimile transmission, or other electronic means as the circumstances permit. (e) Upon correction of violations the establishment may request that the written notice of suspension be terminated. The executive officer shall conduct an inspection within 48 hours to determine whether the written notice of suspension may be terminated. If the written notice of suspension is not terminated upon inspection for failure of the establishment to correct violations, a charge of one hundred dollars ($100) shall be imposed for each subsequent inspection under this section. (f) The notice of suspension shall remain posted until removed by the executive officer, but shall be in effect for no longer than 30 days. Removal of the notice of suspension by any person other than the executive officer or designated representative, or the refusal of an establishment to close upon issuance of the written notice of suspension of the establishment license is a violation of this chapter and may result in any sanctions authorized by this chapter. (Added by Stats. 2003, Ch. 788, Sec. 61. Effective January 1, 2004.) - 7404. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 11. Disciplinary Proceedings [7403 - 7405] ( Article 11 added by Stats. 1990, Ch. 1672, Sec. 3. )
This section lists grounds for disciplinary action against a license holder in barbering, cosmetology, or electrology.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 11. Disciplinary Proceedings [7403 - 7405] ( Article 11 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7404. The grounds for disciplinary action are as follows: (a) Unprofessional conduct which includes, but is not limited to, any of the following: (1) Incompetence or gross negligence, including failure to comply with generally accepted standards for the practice of barbering, cosmetology, or electrology or disregard for the health and safety of patrons. (2) Repeated similar negligent acts. (3) Conviction of any crime substantially related to the qualifications, functions, or duties of the licenseholder, in which case, the records of conviction or a certified copy shall be conclusive evidence thereof. (4) Advertising by means of knowingly false or deceptive statements. (b) Failure to comply with the requirements of this chapter. (c) Failure to comply with the rules governing health and safety adopted by the board and approved by the State Department of Public Health, for the regulation of establishments, or any practice licensed and regulated under this chapter. (d) Failure to comply with the rules adopted by the board for the regulation of establishments, or any practice licensed and regulated under this chapter. (e) Continued practice by a person knowingly having an infectious or contagious disease. (f) Habitual drunkenness, habitual use of or addiction to the use of any controlled substance. (g) Obtaining or attempting to obtain practice in any occupation licensed and regulated under this chapter, or money, or compensation in any form, by fraudulent misrepresentation. (h) Failure to display the license or health and safety rules and regulations in a conspicuous place. (i) Engaging, outside of a licensed establishment and for compensation in any form whatever, in any practice for which a license is required under this chapter, except that when the service is provided because of illness or other physical or mental incapacitation of the recipient of the service and when performed by a licensee obtained for the purpose from a licensed establishment. (j) Permitting a license to be used where the holder is not personally, actively, and continuously engaged in business. (k) The making of any false statement as to a material matter in any oath or affidavit, which is required by the provisions of this chapter. (l) Refusal to permit or interference with an inspection authorized under this chapter. (m) Any action or conduct which would have warranted the denial of a license. (n) Failure to surrender a license that was issued in error or by mistake. (Amended by Stats. 2015, Ch. 430, Sec. 29. (AB 181) Effective January 1, 2016.) - 7404.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 11. Disciplinary Proceedings [7403 - 7405] ( Article 11 added by Stats. 1990, Ch. 1672, Sec. 3. )
Violating this chapter is a misdemeanor unless another specific penalty applies.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 11. Disciplinary Proceedings [7403 - 7405] ( Article 11 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7404.1. Any person, firm, association, or corporation violating this chapter is guilty of a misdemeanor unless a specific penalty is otherwise provided. (Added by Stats. 1990, Ch. 1672, Sec. 3. Operative July 1, 1992, by Sec. 10 of Ch. 1672.) - 7405. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 11. Disciplinary Proceedings [7403 - 7405] ( Article 11 added by Stats. 1990, Ch. 1672, Sec. 3. )
A guilty plea, guilty verdict, or nolo contendere conviction counts as a conviction here. The board may suspend or revoke a license, or refuse to issue one, once appeal time has passed, conviction is affirmed, or probation is granted with sentence suspended.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 11. Disciplinary Proceedings [7403 - 7405] ( Article 11 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7405. A plea or verdict of guilty or a conviction following a plea of nolo contendere is deemed to be a conviction within the meaning of this article. The board may order the license suspended or revoked, or may decline to issue a license, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code allowing the person to withdraw his or her plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information or indictment. (Amended by Stats. 2003, Ch. 788, Sec. 63. Effective January 1, 2004.) - 7406. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. )
The board may assess administrative fines, through its authorized representatives, for violations of this chapter or board rules and regulations.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7406. In addition to the authority to conduct disciplinary proceedings under this chapter, the board, through its duly authorized representatives, shall have authority to assess administrative fines for the violation of any section of this chapter or the violation of any rules and regulations adopted by the board under this chapter. (Amended by Stats. 2003, Ch. 788, Sec. 64. Effective January 1, 2004.) - 7407. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. )
The board must set by regulation a fine schedule for chapter violations that directly affect consumer safety, deposit collected money into its contingent fund, and coordinate with the Bureau for Private Postsecondary Education so the same violation is not cited twice.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7407. The board shall establish by regulation a schedule of administrative fines for violations of this chapter that directly impact consumer safety. All moneys collected under this section shall be deposited in the board’s contingent fund. The schedule shall indicate for each type of violation whether, in the board’s discretion, the violation can be corrected. The board shall ensure that it and the Bureau for Private Postsecondary Education do not issue citations for the same violation. (Amended by Stats. 2021, Ch. 648, Sec. 28. (SB 803) Effective January 1, 2022.) - 7407.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. )
The board must set by regulation when fines apply to an establishment license holder and/or an individual licensee, and must create a remedial education program for a first health and safety violation.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7407.1. (a) The board shall determine by regulation when a fine shall be assessed to both the holder of the establishment license and the individual licensee for the same violation. The board shall also determine by regulation when a fine shall be assessed to only the holder of the establishment license or to only an individual licensee for the same violation. In making these determinations, the board shall consider the egregiousness of the violation of the health and safety regulations and whether the violation is a repeated violation by licensees within the same establishment. (b) (1) The board shall establish by regulation a board-offered remedial education program, in lieu of a first offense of a health and safety violation. (2) The board may impose a fee to cover the reasonable regulatory cost of administering the program described in paragraph (1). (Amended by Stats. 2023, Ch. 603, Sec. 1. (SB 384) Effective January 1, 2024.) - 7408. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. )
The board must issue a written citation for qualifying violations, describe the violation specifically, and include an order to correct correctable conditions or violations.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7408. The board, through its duly authorized representatives, shall issue a citation with respect to any violation for which an administrative fine may be assessed. Each citation shall be in writing and shall describe with particularity the nature of the violation, including a reference to the specific provision alleged to have been violated. The administrative fine, if any, shall attach at the time the citation is written. The citation shall include an order to correct any condition or violation which lends itself to correction, as determined by the board pursuant to Section 7406. (Amended by Stats. 2003, Ch. 788, Sec. 66. Effective January 1, 2004.) - 7408.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. )
The board may offer payment plans for citations with administrative fines over $500, and it must regulate the payment-plan terms and cancellation grounds.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7408.1. The board may enter into a payment plan for citations with administrative fines that exceed five hundred dollars ($500). The board shall define by regulation the parameters of the payment plan, which shall include, but shall not be not limited to, the terms of the plan and grounds for cancellation of the plan. (Added by Stats. 2016, Ch. 233, Sec. 2. (SB 1044) Effective January 1, 2017.) - 7409. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. )
A cited licensee can avoid the administrative fine by giving the board satisfactory written proof that the violation was corrected, but only for the first violation in a three-year period of the same chapter provision or related rules.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7409. Any licensee served with a citation may avoid the payment of the associated administrative fine by presentation of written proof satisfactory to the board, or its executive officer, that the violation has been corrected. This provision applies only to a licensee’s first violation in any three-year period of any single provision of this chapter or the rules and regulations adopted pursuant to this chapter. Proof of correction shall be presented to the board, through its executive officer, in a time and manner prescribed by the board. The board may, in its discretion, extend for a reasonable period the time within which to correct the violation upon the showing of good cause. Notices of correction filed after the prescribed date shall not be acceptable and the administrative fine shall be paid. (Amended by Stats. 2003, Ch. 788, Sec. 67. Effective January 1, 2004.) - 7410. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. )
A person cited and fined may appeal in writing to the disciplinary review committee within 30 days, and the fine is stayed if the appeal is timely.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7410. Persons to whom a notice of violation or a citation is issued and an administrative fine assessed may appeal the citation to a disciplinary review committee established by the board. All appeals shall be submitted in writing to the program within 30 days of the date the citation was issued. Appeals of citations that are not submitted in a timely manner shall be rejected. After a timely appeal has been filed with the program, the administrative fine, if any, shall be stayed until the appeal has been adjudicated. Persons appealing a citation, or their appointed representatives, may appear in person before the disciplinary review committee. The appellant may present written or oral evidence relating to the facts and circumstances relating to the citation that was issued. Following an appeal to a disciplinary review committee, the disciplinary review committee shall issue a decision, based on findings of fact, which may affirm, reduce, dismiss, or alter any charges filed in the citation. In no event shall the administrative fine be increased. The appellant shall be provided with a written copy of the disciplinary review committee’s decision relating to the appeal. (Amended by Stats. 2010, Ch. 415, Sec. 28. (SB 1491) Effective January 1, 2011.) - 7411. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. )
A person who receives a disciplinary review committee decision may appeal by filing a written request within 30 days to the program administrator. After the hearing, the director must issue a decision based on the facts, and the administrative fine cannot be increased.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7411. Persons receiving a decision from a disciplinary review committee may appeal the decision by filing a written request, within 30 days after receipt of the decision, to the program administrator. Following a hearing to appeal the decision of a disciplinary review committee, the director shall thereafter issue a decision, based on findings of fact, affirming, modifying or vacating the citation or penalty, or directing other appropriate relief. In no event shall the administrative fine be increased. The hearing to contest the decision of a disciplinary review committee shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all powers granted therein. (Amended by Stats. 1998, Ch. 970, Sec. 15. Effective January 1, 1999.) - 7413. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. )
If a citation appeal is late, or the appellant or representative does not appear on time, the citation becomes final unless good cause is shown.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7413. Appeals of citations not filed in a timely manner or failure of the appellant or the appellant’s representative to appear before the disciplinary review committee at the appointed time except when good cause is shown, shall cause the citation to become final and there shall be no administrative appeal except as otherwise provided by law. (Amended by Stats. 1998, Ch. 970, Sec. 17. Effective January 1, 1999.) - 7414. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. )
A license may be issued or renewed only if unpaid administrative fines are paid, along with any required application, renewal, or delinquency fees.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12. Administrative Fines and Citations [7406 - 7414] ( Article 12 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7414. The issuance of a license to, or the renewal of a license of, a person who fails to pay administrative fines that were not contested or that were contested but the appeal has been adjudicated may be made contingent upon all fines being paid in addition to any application, renewal, or delinquency fees which are required. (Amended by Stats. 2016, Ch. 233, Sec. 3. (SB 1044) Effective January 1, 2017.) - 7414.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12.5. Tanning Facilities [7414.1 - 7414.6] ( Article 12.5 added by Stats. 1993, Ch. 521, Sec. 1. )
Tanning facilities must keep required records open to inspection by the board, and provide copies immediately when requested.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12.5. Tanning Facilities [7414.1 - 7414.6] ( Article 12.5 added by Stats. 1993, Ch. 521, Sec. 1. ) ## 7414.1. All records required by law to be kept by tanning facilities subject to the Filante Tanning Facility Act of 1988 (Chapter 23 (commencing with Section 22700) of Division 8), including, but not limited to, records relating to written warning statements, the sign required to be posted, the qualifications of facility operators, statements of acknowledgment, parental consent forms, and injury reports, shall be open to inspection by the board, or its authorized representatives, during any inspection, or during any investigation initiated in response to a complaint that the tanning facility has violated any provision of the Filante Tanning Facility Act of 1988. A copy of any or all of those records shall be provided to the board, or its authorized representatives, immediately upon request. (Amended by Stats. 2003, Ch. 788, Sec. 69. Effective January 1, 2004.) - 7414.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12.5. Tanning Facilities [7414.1 - 7414.6] ( Article 12.5 added by Stats. 1993, Ch. 521, Sec. 1. )
A violation of the Filante Tanning Facility Act of 1988 is treated as an infraction in the situations described here, and can be fined between $250 and $1,000.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12.5. Tanning Facilities [7414.1 - 7414.6] ( Article 12.5 added by Stats. 1993, Ch. 521, Sec. 1. ) ## 7414.2. (a) Notwithstanding any other provision of law, a violation of the Filante Tanning Facility Act of 1988 (Chapter 23 (commencing with Section 22700) of Division 8), is an infraction subject to the procedures described in Sections 19.6 and 19.7 of the Penal Code when: (1) A complaint or a written notice to appear in court pursuant to Chapter 5c (commencing with Section 853.5) of Title 3 of Part 2 of the Penal Code is filed in court charging the offense as an infraction, or (2) The court, with the consent of the defendant and the prosecution, determines that the offense is an infraction in which event the case shall proceed as if the defendant has been arraigned on an infraction complaint. (b) Notwithstanding any other provision of law, a violation of any of the provisions of the Filante Tanning Facility Act of 1988, which is an infraction, is punishable by a fine of not less than two hundred fifty dollars ($250) and not more than one thousand dollars ($1,000). (c) This section shall become effective July 1, 1994. (Added by Stats. 1993, Ch. 521, Sec. 1. Effective January 1, 1994. Section operative July 1, 1994, by its own provisions.) - 7414.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12.5. Tanning Facilities [7414.1 - 7414.6] ( Article 12.5 added by Stats. 1993, Ch. 521, Sec. 1. )
A director-designated board representative may issue written notices to appear in court, but only for certain infraction violations and only when the violation is committed in the representative’s presence.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12.5. Tanning Facilities [7414.1 - 7414.6] ( Article 12.5 added by Stats. 1993, Ch. 521, Sec. 1. ) ## 7414.3. (a) Any representative of the board designated by the director shall have the authority to issue a written notice to appear in court pursuant to Chapter 5c (commencing with Section 853.5) of Title 3 of Part 2 of the Penal Code. Representatives so designated are not peace officers and are not entitled to safety member retirement benefits, as a result of that designation. Except as otherwise provided, the representative’s authority is limited to the issuance of written notices to appear for infraction violations of the Filante Tanning Facility Act of 1988 and only when the violation is committed in the presence of the representative. (b) There shall be no civil liability on the part of, and no cause of action shall arise against, any representative, acting pursuant to subdivision (a) and within the scope of his or her authority, for false arrest or false imprisonment arising out of any arrest which is lawful or which the representative, at the time of that arrest, had reasonable cause to believe was lawful. (c) This section shall become effective July 1, 1994. (Amended by Stats. 2003, Ch. 788, Sec. 70. Effective January 1, 2004.) - 7414.4. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12.5. Tanning Facilities [7414.1 - 7414.6] ( Article 12.5 added by Stats. 1993, Ch. 521, Sec. 1. )
The board and its authorized representatives may provide compliance information to tanning facilities.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12.5. Tanning Facilities [7414.1 - 7414.6] ( Article 12.5 added by Stats. 1993, Ch. 521, Sec. 1. ) ## 7414.4. The board, and its authorized representatives, may disseminate information to tanning facilities regarding compliance with the Filante Tanning Facility Act of 1988. (Amended by Stats. 2003, Ch. 788, Sec. 71. Effective January 1, 2004.) - 7414.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12.5. Tanning Facilities [7414.1 - 7414.6] ( Article 12.5 added by Stats. 1993, Ch. 521, Sec. 1. )
This article applies only to tanning facilities that operate with, or at the same location as, a licensed establishment under the chapter.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12.5. Tanning Facilities [7414.1 - 7414.6] ( Article 12.5 added by Stats. 1993, Ch. 521, Sec. 1. ) ## 7414.5. This article shall be applicable only to those tanning facilities operated in conjunction with, or at the same location as, an establishment licensed under this chapter. (Added by Stats. 1993, Ch. 521, Sec. 1. Effective January 1, 1994.) - 7414.6. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12.5. Tanning Facilities [7414.1 - 7414.6] ( Article 12.5 added by Stats. 1993, Ch. 521, Sec. 1. )
The board may adopt regulations for how tanning facilities operate in licensed establishments.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 12.5. Tanning Facilities [7414.1 - 7414.6] ( Article 12.5 added by Stats. 1993, Ch. 521, Sec. 1. ) ## 7414.6. The board may adopt regulations concerning the operation of tanning facilities in licensed establishments. (Amended by Stats. 2003, Ch. 788, Sec. 72. Effective January 1, 2004.) - 7415. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. )
Licenses under this chapter must generally be issued for a two-year period and expire at midnight on the last day of the month they are issued.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7415. Licenses issued under this chapter, unless specifically excepted, shall be issued for a two-year period and shall expire at midnight on the last day of the month of issuance by the board. (Amended by Stats. 2003, Ch. 788, Sec. 73. Effective January 1, 2004.) - 7417. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. )
An expired license may be renewed within five years if the licensee applies and pays the required renewal and delinquency fees, and may also have to meet current continuing education requirements.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7417. Except as otherwise provided in this article, a license that has expired for failure of the licensee to renew within the time fixed by this article may be renewed at any time within five years following its expiration upon application and payment of all accrued and unpaid renewal fees and delinquency fees. If the license is renewed after its expiration, the licensee, as a condition precedent to renewal, shall also pay the delinquency fee and meet current continuing education requirements, if applicable, prescribed by this chapter. Renewal under this section shall be effective on the date on which the application is filed, or on the date on which the accrued renewal fees are paid, or on the date on which the delinquency fee, if any, is paid, whichever occurs last. If so renewed, the license shall continue in effect through the expiration date provided in this article which next occurs following the effective date of the renewal, when it shall expire if it is not again renewed. (Amended by Stats. 1998, Ch. 970, Sec. 17.5. Effective January 1, 1999.) - 7418. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. )
A license not renewed within 5 years after expiration is treated as canceled, and it cannot later be renewed, restored, reinstated, or reissued unless this article says otherwise.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7418. Except as otherwise provided in this article, a license which has not been renewed within five years following its expiration shall be deemed canceled and may not be renewed, restored, reinstated, or reissued thereafter. The holder of the canceled license may obtain a new license only by submitting an application, paying all required fees, and qualifying for and passing the examination that would be required if the holder were applying for the license for the first time. (Added by Stats. 1990, Ch. 1672, Sec. 3. Operative July 1, 1992, by Sec. 10 of Ch. 1672.) - 7419. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. )
A suspended license can expire, and the licensee must renew it under this article.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7419. A suspended license is subject to expiration and shall be renewed by the licensee as provided in this article, but that renewal does not entitle the licensee, while the license remains suspended and until it is reinstated, to engage in the licensed activity, or in any other activity or conduct in violation of the order or judgment by which the license was suspended. (Added by Stats. 1990, Ch. 1672, Sec. 3. Operative July 1, 1992, by Sec. 10 of Ch. 1672.) - 7420. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. )
A revoked license cannot be renewed. If it is reinstated after expiration, the licensee must pay a reinstatement fee equal to the current renewal fee before reinstatement.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7420. A revoked license is subject to expiration as provided in this article, but may not be renewed. If it is reinstated pursuant to the Administrative Procedure Act after its expiration, the licensee, as a condition precedent to its reinstatement, shall pay a reinstatement fee in an amount equal to the current renewal fee. (Repealed and added by Stats. 1990, Ch. 1672, Sec. 3. Operative July 1, 1992, by Sec. 10 of Ch. 1672.) - 7421. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. )
The board must set the fees within the article’s limits and at amounts needed to cover the board’s expenses.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7421. The fees shall be set by the board, within the limits set forth in this article, in amounts necessary to cover the expenses of the board in performing its duties under this chapter. (Amended by Stats. 2003, Ch. 788, Sec. 75. Effective January 1, 2004.) - 7422. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. )
Fees and receipts must be reported to the Controller each month and paid into the State Treasury.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7422. All fees collected on behalf of the board and all receipts of every kind and nature, shall be reported to the Controller at the beginning of each month for the month preceding. At the same time the entire amount of collections shall be paid into the State Treasury, and shall be credited to the Barbering and Cosmetology Contingent Fund, which fund is hereby created. The moneys in the contingent fund shall be appropriated to the board pursuant to the annual Budget Act and out of it shall be paid all salaries and all other expenses necessarily incurred in carrying into effect this chapter. (Amended by Stats. 2003, Ch. 788, Sec. 76. Effective January 1, 2004.) - 7423. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. )
This section sets maximum fees for barbering and cosmetology licenses and examination-related fees.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7423. The amounts of the fees required by this chapter relating to licenses for individual practitioners are as follows: (a) (1) Cosmetologist application and examination fee shall be the actual cost to the board for developing, purchasing, grading, and administering the examination. (2) A cosmetologist initial license fee shall not be more than fifty dollars ($50). (b) (1) An esthetician application and examination fee shall be the actual cost to the board for developing, purchasing, grading, and administering the examination. (2) An esthetician initial license fee shall not be more than forty dollars ($40). (c) (1) A manicurist application and examination fee shall be the actual cost to the board for developing, purchasing, grading, and administering the examination. (2) A manicurist initial license fee shall not be more than thirty-five dollars ($35). (d) (1) A barber application and examination fee shall be the actual cost to the board for developing, purchasing, grading, and administering the examination. (2) A barber initial license fee shall be not more than fifty dollars ($50). (e) (1) An electrologist application and examination fee shall be the actual cost to the board for developing, purchasing, grading, and administering the examination. (2) An electrologist initial license fee shall be not more than fifty dollars ($50). (f) An apprentice application and license fee shall be not more than twenty-five dollars ($25). (g) The license renewal fee for individual practitioner licenses that are subject to renewal shall be not more than fifty dollars ($50). (h) A hairstylist application and examination fee shall be the actual cost to the board for developing, purchasing, grading, and administering the examination. (i) A hairstylist’s initial license fee shall be no more than fifty dollars ($50). (j) Notwithstanding Section 163.5 the license renewal delinquency fee shall be 50 percent of the renewal fee in effect on the date of renewal. (Amended by Stats. 2024, Ch. 481, Sec. 18. (SB 1451) Effective January 1, 2025.) - 7424. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. )
This section sets maximum fees for establishment licenses and lets the board set a reduced fee for ownership changes, subject to cost recovery.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7424. The amounts of the fees payable under this chapter relating to licenses to operate an establishment are as follows: (a) The application and initial license fee shall be not more than eighty dollars ($80). (b) The renewal fee shall be not more than forty dollars ($40). (c) The delinquency fee is 50 percent of the renewal fee in effect on the date of renewal. (d) Any application and initial license fee for the change of ownership of an existing establishment may be established by the board in an amount less than the fee prescribed for a new establishment, but sufficient to cover the costs of processing the application and issuing the license. (Amended by Stats. 1992, Ch. 213, Sec. 4. Effective July 15, 1992. Applicable from July 1, 1992, pursuant to Sec. 6 of Ch. 213.) - 7425. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. )
This section sets maximum fees for mobile unit licenses: application, initial inspection and license, renewal, and delinquency fees.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7425. The amounts of the fees payable under this chapter relating to licenses to operate a mobile unit are as follows: (a) The application fee shall be not more than fifty dollars ($50). (b) The initial inspection and license fee shall not be more than one hundred dollars ($100). (c) The renewal fee shall be not more than forty dollars ($40). (d) The delinquency fee shall be 50 percent of the renewal fee in effect on the date of renewal, notwithstanding Section 163.5. (Amended (as added by Stats. 1990, Ch. 1672) by Stats. 1991, Ch. 1172, Sec. 20. Operative July 1, 1992, by Sec. 30 of Ch. 1172.) - 7426. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. )
The fee for a duplicate license under Section 7398 is ten dollars.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7426. The fee for a duplicate license as provided for in Section 7398 shall be ten dollars ($10). (Added by Stats. 1990, Ch. 1672, Sec. 3. Operative July 1, 1992, by Sec. 10 of Ch. 1672.) - 7426.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. )
The board may make regulations that split license fees into separate processing-fee categories and set procedures for forfeiting some or all of an application fee in certain cases.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10. Barbering and Cosmetology [7301 - 7426.5] ( Chapter 10 repealed and added by Stats. 1990, Ch. 1672, Sec. 3. ) ## ARTICLE 13. Revenue [7415 - 7426.5] ( Article 13 added by Stats. 1990, Ch. 1672, Sec. 3. ) ## 7426.5. The board may, by regulation, divide the fees payable under this chapter relating to licenses into separate categories based upon processing functions, such as application review, examination administration, or license issuance, provided that the combined fees for those processing functions do not exceed the maximum amount prescribed by the license category. The board may, by regulation, establish procedures whereby some or all of a fee submitted in connection with an application for licensure would be forfeited by an applicant who has withdrawn his or her application, fails to appear for an examination, or is required to retake an examination. (Added by Stats. 1999, Ch. 983, Sec. 8. Effective January 1, 2000.) - 7448. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 1. Title, Findings and Declarations, and Statement of Purpose [7448 - 7450] ( Article 1 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
This section gives the chapter its short title: the Protect App-Based Drivers and Services Act.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 1. Title, Findings and Declarations, and Statement of Purpose [7448 - 7450] ( Article 1 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7448. Title. This chapter shall be known, and may be cited, as the Protect App-Based Drivers and Services Act. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7449. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 1. Title, Findings and Declarations, and Statement of Purpose [7448 - 7450] ( Article 1 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
This section states California’s findings about app-based rideshare and delivery drivers working as independent contractors and the benefits they provide.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 1. Title, Findings and Declarations, and Statement of Purpose [7448 - 7450] ( Article 1 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7449. Findings and Declarations. The people of the State of California find and declare as follows: (a) Hundreds of thousands of Californians are choosing to work as independent contractors in the modern economy using app-based rideshare and delivery platforms to transport passengers and deliver food, groceries, and other goods as a means of earning income while maintaining the flexibility to decide when, where, and how they work. (b) These app-based rideshare and delivery drivers include parents who want to work flexible schedules while children are in school; students who want to earn money in between classes; retirees who rideshare or deliver a few hours a week to supplement fixed incomes and for social interaction; military spouses and partners who frequently relocate; and families struggling with California’s high cost of living that need to earn extra income. (c) Millions of California consumers and businesses, and our state’s economy as a whole, also benefit from the services of people who work as independent contractors using app-based rideshare and delivery platforms. App-based rideshare and delivery drivers are providing convenient and affordable transportation for the public, reducing impaired and drunk driving, improving mobility for seniors and individuals with disabilities, providing new transportation options for families who cannot afford a vehicle, and providing new affordable and convenient delivery options for grocery stores, restaurants, retailers, and other local businesses and their patrons. (d) However, recent legislation has threatened to take away the flexible work opportunities of hundreds of thousands of Californians, potentially forcing them into set shifts and mandatory hours, taking away their ability to make their own decisions about the jobs they take and the hours they work. (e) Protecting the ability of Californians to work as independent contractors throughout the state using app-based rideshare and delivery platforms is necessary so people can continue to choose which jobs they take, to work as often or as little as they like, and to work with multiple platforms or companies, all the while preserving access to app-based rideshare and delivery services that are beneficial to consumers, small businesses, and the California economy. (f) App-based rideshare and delivery drivers deserve economic security. This chapter is necessary to protect their freedom to work independently, while also providing these workers new benefits and protections not available under current law. These benefits and protections include a healthcare subsidy consistent with the average contributions required under the Affordable Care Act (ACA); a new minimum earnings guarantee tied to 120 percent of minimum wage with no maximum; compensation for vehicle expenses; occupational accident insurance to cover on-the-job injuries; and protection against discrimination and sexual harassment. (g) California law and rideshare and delivery network companies should protect the safety of both drivers and consumers without affecting the right of app-based rideshare and delivery drivers to work as independent contractors. Such protections should, at a minimum, include criminal background checks of drivers; zero tolerance policies for drug- and alcohol-related offenses; and driver safety training. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7450. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 1. Title, Findings and Declarations, and Statement of Purpose [7448 - 7450] ( Article 1 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
This section states the chapter’s purposes, including protecting drivers’ choice to work as independent contractors, preserving driver flexibility, requiring companies to offer protections and benefits, and improving public safety.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 1. Title, Findings and Declarations, and Statement of Purpose [7448 - 7450] ( Article 1 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7450. Statement of Purpose. The purposes of this chapter are as follows: (a) To protect the basic legal right of Californians to choose to work as independent contractors with rideshare and delivery network companies throughout the state. (b) To protect the individual right of every app-based rideshare and delivery driver to have the flexibility to set their own hours for when, where, and how they work. (c) To require rideshare and delivery network companies to offer new protections and benefits for app-based rideshare and delivery drivers, including minimum compensation levels, insurance to cover on-the-job injuries, automobile accident insurance, health care subsidies for qualifying drivers, protection against harassment and discrimination, and mandatory contractual rights and appeal processes. (d) To improve public safety by requiring criminal background checks, driver safety training, and other safety provisions to help ensure app-based rideshare and delivery drivers do not pose a threat to customers or the public. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7451. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 2. App-Based Driver Independence [7451 - 7452.5] ( Article 2 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
A network company may not impose certain scheduling, acceptance, or exclusivity restrictions on an app-based driver if the driver is treated as an independent contractor under this section.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 2. App-Based Driver Independence [7451 - 7452.5] ( Article 2 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7451. Protecting Independence. Notwithstanding any other provision of law, including, but not limited to, the Labor Code, the Unemployment Insurance Code, and any orders, regulations, or opinions of the Department of Industrial Relations or any board, division, or commission within the Department of Industrial Relations, an app-based driver is an independent contractor and not an employee or agent with respect to the app-based driver’s relationship with a network company if the following conditions are met: (a) The network company does not unilaterally prescribe specific dates, times of day, or a minimum number of hours during which the app-based driver must be logged into the network company’s online-enabled application or platform. (b) The network company does not require the app-based driver to accept any specific rideshare service or delivery service request as a condition of maintaining access to the network company’s online-enabled application or platform. (c) The network company does not restrict the app-based driver from performing rideshare services or delivery services through other network companies except during engaged time. (d) The network company does not restrict the app-based driver from working in any other lawful occupation or business. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7452. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 2. App-Based Driver Independence [7451 - 7452.5] ( Article 2 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
Network companies and app-based drivers must have a written agreement before access is given; network companies may not end a contract except for a reason named in the contract and must provide an appeals process for terminated drivers.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 2. App-Based Driver Independence [7451 - 7452.5] ( Article 2 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7452. Contract and Termination Provisions. (a) A network company and an app-based driver shall enter into a written agreement prior to the driver receiving access to the network company’s online-enabled application or platform. (b) A network company shall not terminate a contract with an app-based driver unless based upon a ground specified in the contract. (c) Network companies shall provide an appeals process for app-based drivers whose contracts are terminated by the network company. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7452.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 2. App-Based Driver Independence [7451 - 7452.5] ( Article 2 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
This section says the rest of the listed chapter articles must not be read to change the relationship between a network company and an app-based driver when Section 7451’s conditions are met.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 2. App-Based Driver Independence [7451 - 7452.5] ( Article 2 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7452.5. Independence Unaffected. Nothing in Article 3 (commencing with Section 7453) to Article 11 (commencing with Section 7467), inclusive, of this chapter shall be interpreted to in any way alter the relationship between a network company and an app-based driver for whom the conditions set forth in Section 7451 are satisfied. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7453. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 3. Compensation [7453- 7453.] ( Article 3 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
Network companies must keep app-based drivers’ earnings at or above the net earnings floor and cannot take gratuities or deduct gratuity-related amounts.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 3. Compensation [7453- 7453.] ( Article 3 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7453. Earnings Guarantee. (a) A network company shall ensure that for each earnings period, an app-based driver is compensated at not less than the net earnings floor as set forth in this section. The net earnings floor establishes a guaranteed minimum level of compensation for app-based drivers that cannot be reduced. In no way does the net earnings floor prohibit app-based drivers from earning a higher level of compensation. (b) For each earnings period, a network company shall compare an app-based driver’s net earnings against the net earnings floor for that app-based driver during the earnings period. In the event that the app-based driver’s net earnings in the earnings period are less than the net earnings floor for that earnings period, the network company shall include an additional sum accounting for the difference in the app-based driver’s earnings no later than during the next earnings period. (c) No network company or agent shall take, receive, or retain any gratuity or a part thereof that is paid, given to, or left for an app-based driver by a customer or deduct any amount from the earnings due to an app-based driver for a ride or delivery on account of a gratuity paid in connection with the ride or delivery. A network company that permits customers to pay gratuities by credit card shall pay the app-based driver the full amount of the gratuity that the customer indicated on the credit card receipt, without any deductions for any credit card payment processing fees or costs that may be charged to the network company by the credit card company. (d) For purposes of this chapter, the following definitions apply: (1) “Applicable minimum wage” means the state mandated minimum wage for all industries or, if a passenger or item is picked up within the boundaries of a local government that has a higher minimum wage that is generally applicable to all industries, the local minimum wage of that local government. The applicable minimum wage shall be determined at the location where a passenger or item is picked up and shall apply for all engaged time spent completing that rideshare request or delivery request. (2) “Earnings period” means a pay period, set by the network company, not to exceed 14 consecutive calendar days. (3) “Net earnings” means all earnings received by an app-based driver in an earnings period, provided that the amount conforms to both of the following standards: (A) The amount does not include gratuities, tolls, cleaning fees, airport fees, or other customer pass-throughs. (B) The amount may include incentives or other bonuses. (4) “Net earnings floor” means, for any earnings period, a total amount that is comprised of: (A) For all engaged time, the sum of 120 percent of the applicable minimum wage for that engaged time. (B) (i) The per-mile compensation for vehicle expenses set forth in this subparagraph multiplied by the total number of engaged miles. (ii) After the effective date of this chapter and for the 2021 calendar year, the per-mile compensation for vehicle expenses shall be thirty cents ($0.30) per engaged mile. For calendar years after 2021, the amount per engaged mile shall be adjusted pursuant to clause (iii). (iii) For calendar years following 2021, the per-mile compensation for vehicle expenses described in clause (ii) shall be adjusted annually to reflect any increase in inflation as measured by the Consumer Price Index for All Urban Consumers (CPI-U) published by the United States Bureau of Labor Statistics. The Treasurer’s Office shall calculate and publish the adjustments required by this subparagraph. (e) Nothing in this section shall be interpreted to require a network company to provide a particular amount of compensation to an app-based driver for any given rideshare or delivery request, as long as the app-based driver’s net earnings for each earnings period equals or exceeds that app-based driver’s net earnings floor for that earnings period as set forth in subdivision (b). For clarity, the net earnings floor in this section may be calculated on an average basis over the course of each earnings period. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7454. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 4. Benefits [7454 - 7455] ( Article 4 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
Network companies must provide qualifying app-based drivers a quarterly health care subsidy, give required hours information each earnings period, and pay the subsidy within a stated deadline if proof of enrollment is required.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 4. Benefits [7454 - 7455] ( Article 4 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7454. Healthcare Subsidy. (a) Consistent with the average contributions required under the Affordable Care Act (ACA), a network company shall provide a quarterly health care subsidy to qualifying app-based drivers as set forth in this section. An app-based driver that averages the following amounts of engaged time per week on a network company’s platform during a calendar quarter shall receive the following subsidies from that network company: (1) For an average of 25 hours or more per week of engaged time in the calendar quarter, a payment greater than or equal to 100 percent of the average ACA contribution for the applicable average monthly Covered California premium for each month in the quarter. (2) For an average of at least 15 but less than 25 hours per week of engaged time in the calendar quarter, a payment greater than or equal to 50 percent of the average ACA contribution for the applicable average monthly Covered California premium for each month in the quarter. (b) At the end of each earnings period, a network company shall provide to each app-based driver the following information: (1) The number of hours of engaged time the app-based driver accrued on the network company’s online-enabled application or platform during that earnings period. (2) The number of hours of engaged time the app-based driver has accrued on the network company’s online-enabled application or platform during the current calendar quarter up to that point. (c) Covered California may adopt or amend regulations as it deems appropriate to permit app-based drivers receiving subsidies pursuant to this section to enroll in health plans through Covered California. (d) (1) As a condition of providing the health care subsidy set forth in subdivision (a), a network company may require an app-based driver to submit proof of current enrollment in a qualifying health plan. Proof of current enrollment may include, but is not limited to, health insurance membership or identification cards, evidence of coverage and disclosure forms from the health plan, or claim forms and other documents necessary to submit claims. (2) An app-based driver shall have not less than 15 calendar days from the end of the calendar quarter to provide proof of enrollment as set forth in paragraph (1). (3) A network company shall provide a health care subsidy due for a calendar quarter under subdivision (a) within 15 days of the end of the calendar quarter or within 15 days of the app-based driver’s submission of proof of enrollment as set forth in paragraph (1), whichever is later. (e) For purposes of this section, a calendar quarter refers to the following four periods of time: (1) January 1 through March 31. (2) April 1 through June 30. (3) July 1 through September 30. (4) October 1 through December 31. (f) Nothing in this section shall be interpreted to prevent an app-based driver from receiving a health care subsidy from more than one network company for the same calendar quarter. (g) On or before December 31, 2020, and on or before each September 1 thereafter, Covered California shall publish the average statewide monthly premium for an individual for the following calendar year for a Covered California bronze health insurance plan. (h) This section shall become inoperative in the event the United States or the State of California implements a universal health care system or substantially similar system that expands coverage to the recipients of subsidies under this section. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020. Conditionally inoperative by its own provisions.) - 7455. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 4. Benefits [7454 - 7455] ( Article 4 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
Network companies operating in California for more than 90 days must make specified insurance coverage available, including coverage for app-based drivers and public liability insurance.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 4. Benefits [7454 - 7455] ( Article 4 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7455. Loss and Liability Protection. No network company shall operate in California for more than 90 days unless the network company carries, provides, or otherwise makes available the following insurance coverage: (a) For the benefit of app-based drivers, occupational accident insurance to cover medical expenses and lost income resulting from injuries suffered while the app-based driver is online with a network company’s online-enabled application or platform. Policies shall at a minimum provide the following: (1) Coverage for medical expenses incurred, up to at least one million dollars ($1,000,000). (2) (A) Disability payments equal to 66 percent of the app-based driver’s average weekly earnings from all network companies as of the date of injury, with minimum and maximum weekly payment rates to be determined in accordance with subdivision (a) of Section 4453 of the Labor Code for up to the first 104 weeks following the injury. (B) “Average weekly earnings” means the app-based driver’s total earnings from all network companies during the 28 days prior to the covered accident divided by four. (b) For the benefit of spouses, children, or other dependents of app-based drivers, accidental death insurance for injuries suffered by an app-based driver while the app-based driver is online with the network company’s online-enabled application or platform that result in death. For purposes of this subdivision, burial expenses and death benefits shall be determined in accordance with Section 4701 and Section 4702 of the Labor Code. (c) For the purposes of this section, “online” means the time when an app-based driver is utilizing a network company’s online-enabled application or platform and can receive requests for rideshare services or delivery services from the network company, or during engaged time. (d) Occupational accident insurance or accidental death insurance under subdivisions (a) and (b) shall not be required to cover an accident that occurs while online but outside of engaged time where the injured app-based driver is in engaged time on one or more other network company platforms or where the app-based driver is engaged in personal activities. If an accident is covered by occupational accident insurance or accidental death insurance maintained by more than one network company, the insurer of the network company against whom a claim is filed is entitled to contribution for the pro-rata share of coverage attributable to one or more other network companies up to the coverages and limits in subdivisions (a) and (b). (e) Any benefits provided to an app-based driver under subdivision (a) or (b) of this section shall be considered amounts payable under a worker’s compensation law or disability benefit for the purpose of determining amounts payable under any insurance provided under Article 2 (commencing with Section 11580) of Chapter 1 of Part 3 of Division 2 of the Insurance Code. (f) (1) For the benefit of the public, a DNC as defined in Section 7463 shall maintain automobile liability insurance of at least one million dollars ($1,000,000) per occurrence to compensate third parties for injuries or losses proximately caused by the operation of an automobile by an app-based driver during engaged time in instances where the automobile is not otherwise covered by a policy that complies with subdivision (b) of Section 11580.1 of the Insurance Code. (2) For the benefit of the public, a TNC as defined in Section 7463 shall maintain liability insurance policies as required by Article 7 (commencing with Section 5430) of Chapter 8 of Division 2 of the Public Utilities Code. (3) For the benefit of the public, a TCP as defined in Section 7463 shall maintain liability insurance policies as required by Article 4 (commencing with Section 5391) of Chapter 8 of Division 2 of the Public Utilities Code. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7456. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
A network company must not refuse to contract with, terminate, or deactivate an app-based driver or prospective driver because of protected characteristics, unless a bona fide occupational qualification or driver safety need applies.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7456. Antidiscrimination. (a) It is an unlawful practice, unless based upon a bona fide occupational qualification or public or app-based driver safety need, for a network company to refuse to contract with, terminate the contract of, or deactivate from the network company’s online-enabled application or platform, any app-based driver or prospective app-based driver based upon race, color, ancestry, national origin, religion, creed, age, physical or mental disability, sex, gender, sexual orientation, gender identity or expression, medical condition, genetic information, marital status, or military or veteran status. (b) Claims brought pursuant to this section shall be brought solely under the procedures established by the Unruh Civil Rights Act (Section 51 of the Civil Code) and will be governed by its requirements and remedies. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7457. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
A network company must have a sexual harassment policy on its website, and app-based drivers must review and confirm it before providing rideshare or delivery services.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7457. Sexual Harassment Prevention. (a) A network company shall develop a sexual harassment policy intended to protect app-based drivers and members of the public using rideshare services or delivery services. The policy shall be available on the network company’s internet website. The policy shall, at a minimum, do all of the following: (1) Identify behaviors that may constitute sexual harassment, including the following: unwanted sexual advances; leering, gestures, or displaying sexually suggestive objects, pictures, cartoons, or posters; derogatory comments, epithets, slurs, or jokes; graphic comments, sexually degrading words, or suggestive or obscene messages or invitations; and physical touching or assault, as well as impeding or blocking movements. (2) Indicate that the network company, and in many instances the law, prohibits app-based drivers and customers utilizing rideshare services or delivery services from committing prohibited harassment. (3) Establish a process for app-based drivers, customers, and rideshare passengers to submit complaints that ensures confidentiality to the extent possible; an impartial and timely investigation; and remedial actions and resolutions based on the information collected during the investigation process. (4) Provide an opportunity for app-based drivers and customers utilizing rideshare services or delivery services to submit complaints electronically so complaints can be resolved quickly. (5) Indicate that when the network company receives allegations of misconduct, it will conduct a fair, timely, and thorough investigation to reach reasonable conclusions based on the information collected. (6) Make clear that neither app-based drivers nor customers utilizing rideshare services or delivery services shall be retaliated against as a result of making a good faith complaint or participating in an investigation against another app-based driver, customer, or rideshare passenger. (b) Prior to providing rideshare services or delivery services through a network company’s online-enabled application or platform, an app-based driver shall do both of the following: (1) Review the network company’s sexual harassment policy. (2) Confirm to the network company, for which electronic confirmation shall suffice, that the app-based driver has reviewed the network company’s sexual harassment policy. (c) Claims brought pursuant to this section shall be brought solely under the procedures established by the Unruh Civil Rights Act (Section 51 of the Civil Code) and will be governed by its requirements and remedies. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7458. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
Network companies must run initial criminal background checks on app-based drivers before allowing them to use the platform, give the driver a copy or summary, and cannot allow drivers with certain convictions to use the platform.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7458. Criminal Background Checks. (a) A network company shall conduct, or have a third party conduct, an initial local and national criminal background check for each app-based driver who uses the network company’s online-enabled application or platform to provide rideshare services or delivery services. The background check shall be consistent with the standards contained in subdivision (a) of Section 5445.2 of the Public Utilities Code. Notwithstanding any other provision of law to the contrary, after an app-based driver’s consent is obtained by a network company for an initial background check, no additional consent shall be required for the continual monitoring of that app-based driver’s criminal history if the network company elects to undertake such continual monitoring. (b) A network company shall complete the initial criminal background check as required by subdivision (a) prior to permitting an app-based driver to utilize the network company’s online-enabled application or platform. The network company shall provide physical or electronic copies or summaries of the initial criminal background check to the app-based driver. (c) An app-based driver shall not be permitted to utilize a network company’s online-enabled application or platform if one of the following applies: (1) The driver has ever been convicted of any crime listed in subparagraph (B) of paragraph (2) of subdivision (a) of Section 5445.2 of the Public Utilities Code, any serious felony as defined by subdivision (c) of Section 1192.7 of the Penal Code, or any hate crime as defined by Section 422.55 of the Penal Code. (2) The driver has been convicted within the last seven years of any crime listed in paragraph (3) of subdivision (a) of Section 5445.2 of the Public Utilities Code. (d) (1) The ability of an app-based driver to utilize a network company’s online-enabled application or platform may be suspended if the network company learns the driver has been arrested for any crime listed in either of the following: (A) Subparagraph (B) of paragraph (2), or paragraph (3), of subdivision (a) of Section 5445.2 of the Public Utilities Code. (B) Subdivision (c) of this section. (2) The suspension described in paragraph (1) may be lifted upon the disposition of an arrest for any crime listed in subparagraph (B) of paragraph (2), or paragraph (3), of subdivision (a) of Section 5445.2 of the Public Utilities Code that does not result in a conviction. Such disposition includes a finding of factual innocence from any relevant charge, an acquittal at trial, an affidavit indicating the prosecuting attorney with jurisdiction over the alleged offense has declined to file a criminal complaint, or an affidavit indicating all relevant time periods described in Chapter 2 (commencing with Section 799) of Title 3 of Part 2 of the Penal Code have expired. (e) Nothing in this section shall be interpreted to prevent a network company from imposing additional standards relating to criminal history. (f) Notwithstanding Section 1786.12 of the Civil Code, an investigative consumer reporting agency may furnish an investigative consumer report to a network company about a person seeking to become an app-based driver, regardless of whether the app-based driver is to be an employee or an independent contractor of the network company. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7459. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
Network companies must require and provide safety training for app-based drivers, with a limited transition period for certain pre-2021 drivers.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7459. Safety Training. (a) A network company shall require an app-based driver to complete the training described in this section prior to allowing the app-based driver to utilize the network company’s online-enabled application or platform. (b) A network company shall provide each app-based driver safety training. The safety training required by this section shall include the following subjects: (1) Collision avoidance and defensive driving techniques. (2) Identification of collision-causing elements such as excessive speed, DUI, and distracted driving. (3) Recognition and reporting of sexual assault and misconduct. (4) For app-based drivers delivering prepared food or groceries, food safety information relevant to the delivery of food, including temperature control. (c) The training may, at the discretion of the network company, be provided via online, video, or in-person training. (d) Notwithstanding subdivision (a), any app-based driver that has entered into a contract with a network company prior to January 1, 2021, to provide rideshare services or delivery services shall have until July 1, 2021, to complete the safety training required by this section, and may continue to provide rideshare services or delivery services through the network company’s online-enabled application or platform until that date. On and after July 1, 2021, app-based drivers described in this subdivision must complete the training required by this section in order to continue providing rideshare services and delivery services. (e) Any safety product, feature, process, policy, standard, or other effort undertaken by a network company, or the provision of equipment by a network company, to further public safety is not an indicia of an employment or agency relationship with an app-based driver. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7460. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
A network company must have a zero tolerance policy and promptly suspend a driver’s access when it gets a qualifying report of suspected drug or alcohol use. The company may also suspend access for false or bad-faith reports.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7460. Zero Tolerance Policies. (a) A network company shall institute a “zero tolerance policy” that mandates prompt suspension of an app-based driver’s access to the network company’s online-enabled application or platform in any instance in which the network company receives a report through its online-enabled application or platform, or by any other company-approved method, from any person who reasonably suspects the app-based driver is under the influence of drugs or alcohol while providing rideshare services or delivery services. (b) Upon receiving a report described in subdivision (a), a network company shall promptly suspend the app-based driver from the company’s online-enabled application or platform for further investigation. (c) A network company may suspend access to the network company’s online-enabled application or platform for any app-based driver or customer found to be reporting an alleged violation of a zero tolerance policy as described in subdivision (a) where that driver or customer knows the report to be unfounded or based the report on an intent to inappropriately deny a driver access to the online-enabled application or platform. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7460.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
A network company must continuously and exclusively provide law enforcement a way to submit information requests for investigations involving emergency situations, exigent circumstances, and critical incidents.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7460.5. A network company shall make continuously and exclusively available to law enforcement a mechanism to submit requests for information to aid in investigations related to emergency situations, exigent circumstances, and critical incidents. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7461. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
An app-based driver may not stay logged in and driving on a network company platform for more than 12 hours in any 24-hour period, unless the driver has already logged off for 6 uninterrupted hours.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7461. App-based Driver Rest. An app-based driver shall not be logged in and driving on a network company’s online-enabled application or platform for more than a cumulative total of 12 hours in any 24-hour period, unless that driver has already logged off for an uninterrupted period of 6 hours. If an app-based driver has been logged on and driving for more than a cumulative total of 12 hours in any 24-hour period, without logging off for an uninterrupted period of 6 hours, the driver shall be prohibited from logging back into the network company’s online-enabled application or platform for an uninterrupted period of at least 6 hours. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7462. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
A person who fraudulently impersonates an app-based driver while providing or trying to provide rideshare or delivery services commits a misdemeanor and can be jailed, fined, or both.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 5. Antidiscrimination and Public Safety [7456 - 7462] ( Article 5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7462. Impersonating an App-Based Driver. Any person who fraudulently impersonates an app-based driver while providing or attempting to provide rideshare or delivery services shall be guilty of a misdemeanor, and is punishable by imprisonment in a county jail for up to six months, or a fine of up to ten thousand dollars ($10,000), or both. Nothing in this subdivision precludes prosecution under any other law. (b) In addition to any other penalty provided by law, any person who fraudulently impersonates an app-based driver while providing or attempting to provide rideshare services or delivery services in the commission or attempted commission of an offense described in Section 207, 209, 220, 261, 264.1, 286, 287, 288, or 289 of the Penal Code shall be sentenced to an additional term of five years. (c) In addition to any other penalty provided by law, any person who fraudulently impersonates an app-based driver while providing or attempting to provide rideshare services or delivery services in the commission of a felony or attempted felony and in so doing personally inflicts great bodily injury to another person other than an accomplice shall be sentenced to an additional term of five years. (d) In addition to any other penalty provided by law, any person who fraudulently impersonates an app-based driver while providing or attempting to provide rideshare services or delivery services in the commission of a felony or attempted felony and in so doing causes the death of another person other than an accomplice shall be sentenced to an additional term of 10 years. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7463. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 6. Definitions [7463- 7463.] ( Article 6 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
This section defines terms used in the chapter, including app-based driver, delivery network company, engaged time, delivery services, and qualifying health plan.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 6. Definitions [7463- 7463.] ( Article 6 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7463. For purposes of this chapter, the following definitions shall apply: (a) “App-based driver” means an individual who is a DNC courier, TNC driver, or TCP driver or permit holder; and for whom the conditions set forth in subdivisions (a) to (d), inclusive, of Section 7451 are satisfied. (b) “Average ACA contribution” means 82 percent of the dollar amount of the average monthly Covered California premium. (c) “Average monthly Covered California premium” equals the dollar amount published pursuant to subdivision (g) of Section 7454. (d) “Covered California” means the California Health Benefit Exchange, codified in Title 22 (commencing with Section 100500) of the Government Code. (e) “Customer” means one or more natural persons or business entities. (f) “Delivery network company” (DNC) means a business entity that maintains an online-enabled application or platform used to facilitate delivery services within the State of California on an on-demand basis, and maintains a record of the amount of engaged time and engaged miles accumulated by DNC couriers. Deliveries are facilitated on an on-demand basis if DNC couriers are provided with the option to accept or decline each delivery request and the DNC does not require the DNC courier to accept any specific delivery request as a condition of maintaining access to the DNC’s online-enabled application or platform. (g) “Delivery network company courier” (DNC courier) means an individual who provides delivery services through a DNC’s online-enabled application or platform. (h) “Delivery services” means the fulfillment of delivery requests, meaning the pickup from any location of any item or items and the delivery of the items using a passenger vehicle, bicycle, scooter, walking, public transportation, or other similar means of transportation, to a location selected by the customer located within 50 miles of the pickup location. A delivery request may include more than one, but not more than 12, distinct orders placed by different customers. Delivery services may include the selection, collection, or purchase of items by a DNC courier provided that those tasks are done in connection with a delivery that the DNC courier has agreed to deliver. Delivery services do not include deliveries that are subject to Section 26090, as that section read on October 29, 2019. (i) “Engaged miles” means all miles driven during engaged time in a passenger vehicle that is not owned, leased, or rented by the network company. (j) (1) “Engaged time” means, subject to the conditions set forth in paragraph (2), the period of time, as recorded in a network company’s online-enabled application or platform, from when an app-based driver accepts a rideshare request or delivery request to when the app-based driver completes that rideshare request or delivery request. (2) (A) Engaged time shall not include the following: (i) Any time spent performing a rideshare service or delivery service after the request has been canceled by the customer. (ii) Any time spent on a rideshare service or delivery service where the app-based driver abandons performance of the service prior to completion. (B) Network companies may also exclude time if doing so is reasonably necessary to remedy or prevent fraudulent use of the network company’s online-enabled application or platform. (k) “Local government” means a city, county, city and county, charter city, or charter county. (l) “Network company” means a business entity that is a DNC or a TNC. (m) “Passenger vehicle” means a passenger vehicle as defined in Section 465 of the Vehicle Code. (n) “Qualifying health plan” means a health insurance plan in which the app-based driver is the subscriber, that is not sponsored by an employer, and that is not a Medicare or Medicaid plan. (o) “Rideshare service” means the transportation of one or more persons. (p) “Transportation network company” (TNC) has the same meaning as the definition contained in subdivision (c) of Section 5431 of the Public Utilities Code. (q) “Transportation network company driver” (TNC driver) has the same meaning as the definition of driver contained in subdivision (a) of Section 5431 of the Public Utilities Code. (r) “Charter-party carrier of passengers” (TCP) shall have the same meaning as the definition contained in Section 5360 of the Public Utilities Code, provided the driver is providing rideshare services using a passenger vehicle through a network company’s online-enabled application or platform. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7464. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 7. Uniform Work Standards [7464- 7464.] ( Article 7 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
The state preempts local regulation in specified app-based driver work areas, while local governments may still adopt ordinances needed to punish misdemeanors and felonies or enforce older local rules.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 7. Uniform Work Standards [7464- 7464.] ( Article 7 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7464. (a) The performance of a single rideshare service or delivery service frequently requires an app-based driver to travel across the jurisdictional boundaries of multiple local governments. California has over 500 cities and counties, which can lead to overlapping, inconsistent, and contradictory local regulations for cross-jurisdictional services. (b) In light of the cross-jurisdictional nature of the rideshare services and delivery services, and in addition to the other requirements and standards established by this chapter, the state hereby occupies the field in the following areas: (1) App-based driver compensation and gratuity, except as provided in Section 7453. (2) App-based driver scheduling, leave, health care subsidies, and any other work-related stipends, subsidies, or benefits. (3) App-based driver licensing and insurance requirements. (4) App-based driver rights with respect to a network company’s termination of an app-based driver’s contract. (c) Notwithstanding subdivision (b), nothing in this section shall limit a local government’s ability to adopt local ordinances necessary to punish the commission of misdemeanor and felony crimes or to enforce local ordinances and regulations enacted prior to October 29, 2019. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7464.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 8. Income Reporting [7464.5- 7464.5.] ( Article 8 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
Network companies acting as third-party settlement organizations must prepare and file information returns and send copies to both the Franchise Tax Board and the payee when the payee is an app-based driver with a California address and reportable payment transactions of at least $600 in a calendar year.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 8. Income Reporting [7464.5- 7464.5.] ( Article 8 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7464.5. (a) A network company that is acting as a third-party settlement organization shall prepare an information return for each participating payee who is an app-based driver with a California address that has a gross amount of reportable payment transactions equal to or greater than six hundred dollars ($600) during a calendar year, irrespective of the number of transactions between the third-party settlement organization and the payee. A third-party settlement organization must report these amounts to the Franchise Tax Board and furnish a copy to the payee, even if it does not have a federal reporting obligation. The information return shall identify the following: (1) The name, address, and tax identification number of the participating payee. (2) The gross amount of the reportable payment transactions with respect to the participating payee. (b) Within 30 days following the date such an information return would be due to the Internal Revenue Service, a network company shall file a copy of any information return required by subdivision (a) with the Franchise Tax Board and shall provide a copy to the participating payee. (c) A network company may fulfill this requirement by submitting a copy of Internal Revenue Service Form 1099-K or by submitting a form provided by the Franchise Tax Board that includes the same information as that on Cal-1099-K. (d) For purposes of this section: (1) “Participating payee” has the same meaning as provided in Section 6050W(d)(1)(A)(ii) of Title 26 of the United States Code. (2) “Reportable payment transaction” has the same meaning as provided in Section 6050W(c)(1) of Title 26 of the United States Code. (3) “Third-party settlement organization” has the same meaning as provided in Section 6050W(b)(3) of Title 26 of the United States Code. (e) This section shall not apply in instances where the gross amount of reportable payment transactions for a participating payee in a calendar year is less than six hundred dollars ($600) or where the participating payee is not an app-based driver. (f) This section shall apply to reportable payment transactions occurring on or after January 1, 2021. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7465. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 9. Amendment [7465- 7465.] ( Article 9 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
This section sets the rules for how the Legislature may amend this chapter and when later statutes are not operative unless they follow those rules.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 9. Amendment [7465- 7465.] ( Article 9 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7465. (a) After the effective date of this chapter, the Legislature may amend this chapter by a statute passed in each house of the Legislature by rollcall vote entered into the journal, seven-eighths of the membership concurring, provided that the statute is consistent with, and furthers the purpose of, this chapter. No bill seeking to amend this chapter after the effective date of this chapter may be passed or ultimately become a statute unless the bill has been printed and distributed to members, and published on the internet, in its final form, for at least 12 business days prior to its passage in either house of the Legislature. (b) No statute enacted after October 29, 2019, but prior to the effective date of this chapter, that would constitute an amendment of this chapter, shall be operative after the effective date of this chapter unless the statute was passed in accordance with the requirements of subdivision (a). (c) (1) The purposes of this chapter are described in Article 1 (commencing with Section 7448). (2) Any statute that amends Section 7451 does not further the purposes of this chapter. (3) Any statute that prohibits app-based drivers from performing a particular rideshare service or delivery service while allowing other individuals or entities to perform the same rideshare service or delivery service, or otherwise imposes unequal regulatory burdens upon app-based drivers based on their classification status, constitutes an amendment of this chapter and must be enacted in compliance with the procedures governing amendments consistent with the purposes of this chapter as set forth in subdivisions (a) and (b). (4) Any statute that authorizes any entity or organization to represent the interests of app-based drivers in connection with drivers’ contractual relationships with network companies, or drivers’ compensation, benefits, or working conditions, constitutes an amendment of this chapter and must be enacted in compliance with the procedures governing amendments consistent with the purposes of this chapter as set forth in subdivisions (a) and (b). (d) Any statute that imposes additional misdemeanor or felony penalties in order to provide greater protection against criminal activity for app-based drivers and individuals using rideshare services or delivery services may be enacted by the Legislature by rollcall vote entered into the journal, a majority of the membership of each house concurring, without complying with subdivisions (a) and (b). (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7466. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 10. Regulations [7466- 7466.] ( Article 10 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
Covered California may adopt emergency regulations to implement and administer Section 7454(c) and (g), and those regulations may stay in effect for up to two years from adoption.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 10. Regulations [7466- 7466.] ( Article 10 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7466. (a) Emergency regulations may be adopted by Covered California in order to implement and administer subdivisions (c) and (g) of Section 7454. (b) Any emergency regulation adopted pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare. Notwithstanding any other provision of law, the emergency regulations adopted by Covered California may remain in effect for two years from the date of adoption. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7467. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 11. Severability [7467- 7467.] ( Article 11 added November 3, 2020, by initiative Proposition 22, Sec. 1. )
This section says the chapter is severable, except that if Section 7451 is held invalid by a court, the rest of the chapter has no force of law.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.5. App-Based Drivers and Services [7448 - 7467] ( Chapter 10.5 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## ARTICLE 11. Severability [7467- 7467.] ( Article 11 added November 3, 2020, by initiative Proposition 22, Sec. 1. ) ## 7467. (a) Subject to subdivision (b), the provisions of this chapter are severable. If any portion, section, subdivision, paragraph, clause, sentence, phrase, word, or application of this chapter is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this chapter. The people of the State of California hereby declare that they would have adopted this chapter and each and every portion, section, subdivision, paragraph, clause, sentence, phrase, word, and application not declared invalid or unconstitutional without regard to whether any other portion of this chapter or application thereof would be subsequently declared invalid. (b) Notwithstanding subdivision (a), if any portion, section, subdivision, paragraph, clause, sentence, phrase, word, or application of Section 7451 of Article 2 (commencing with Section 7451), as added by the voters, is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall apply to the entirety of the remaining provisions of this chapter, and no provision of this chapter shall be deemed valid or given force of law. (Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.) - 7470. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
This chapter is named the Transportation Network Company Drivers Labor Relations Act.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470. This chapter shall be known, and may be cited as, the Transportation Network Company Drivers Labor Relations Act. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
This section states that transportation network company drivers have rights to organize and choose representatives, and that transportation network companies and certified driver bargaining organizations are to negotiate in good faith.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.1. (a) It is the policy of the State of California to encourage and protect the right of transportation network company drivers to full freedom of association, self-organization, and designation of representatives of their own choosing to negotiate the compensation that they receive as well as other terms and conditions of their agreements with transportation network companies. (b) The benefit to the state’s economy from negotiated agreements between transportation network company drivers and the transportation network companies, including where those agreements are multiparty, sectoral agreements, outweighs the anticompetitive effect of those agreements. It is the state’s intent that the state action antitrust exemption to the application of federal and state antitrust laws shall apply to the activities of transportation network company drivers, transportation network company driver organizations, bargaining representatives for transportation network company drivers, and transportation network companies when they are participating in negotiations and other activities as authorized or regulated by this chapter. (c) The purposes of this chapter are to provide transportation network company drivers the opportunity to self-organize and designate representatives of their own choosing in order to bargain with transportation network companies, to facilitate the prevention or prompt resolution of disputes between transportation network companies and transportation network company drivers, and to improve the working conditions of transportation network company drivers and therefore the services provided to the general public. (d) It is the policy of the state to establish various notice requirements, conditions, and timelines governing the representation of transportation network company drivers. It is the policy of the state to require transportation network companies and certified driver bargaining organizations to negotiate in good faith pursuant to the act and to set forth procedures for mediation and arbitration for purposes of reaching a bargaining agreement. (e) In November 2020, the California voters approved Proposition 22, the “Protect App-Based Drivers and Services Act,” which has been codified in Chapter 10.5 (commencing with Section 7448). That measure establishes certain minimum standards for app-based drivers, while allowing, as the California courts have held, the state to create a system for negotiations between transportation network company drivers and transportation network companies, including, by agreement, to voluntarily increase the standards that were established by Proposition 22. This chapter establishes a robust system to authorize those negotiations, while accommodating Proposition 22, which limits the state’s ability to impose certain terms through the binding interest arbitration process that applies if the parties are otherwise unable to reach an agreement but does not otherwise impose limits on that process. (f) Because of the nature of the industry, many individuals who perform work as transportation network company drivers have only a short-term or highly intermittent relationship with the industry. For both logistical and policy reasons, this chapter establishes a threshold for eligibility to participate in the selection of a union representative so the choice can be made by those drivers who have more than a casual or short-term relationship with the industry and, therefore, have a more significant interest in making that choice. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.10. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
When the board certifies a TNC driver organization for a bargaining unit, it must notify all covered TNCs, and those covered TNCs must bargain with the certified driver bargaining organization about representation matters.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.10. Once the board determines that a TNC driver organization is the certified driver bargaining organization for the bargaining unit, the board shall notify all covered TNCs, and all covered TNCs as defined in subdivision (e) of Section 7470.2 shall be required to bargain with the certified driver bargaining organization concerning matters within the scope of representation. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.11. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
This provision defines “scope of representation” for the chapter as TNC driver earnings, benefits, and other working conditions, including deactivations, and says these are mandatory subjects of bargaining.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.11. For purposes of this chapter, the term “scope of representation” shall mean TNC driver earnings, benefits, and other terms and conditions of work, including deactivations, which shall be mandatory subjects of bargaining. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.12. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
Each individual covered TNC must retain exclusive control over its product, software, contract terms, algorithm, operations, and areas of service.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.12. Each individual covered TNC shall retain exclusive control over the development, maintenance, design, pricing, and implementation of its product and product features, software, contract terms, algorithm, and operations and areas of service. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.13. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
Sectoral agreements submitted for board approval must cover specified topics, be separated into distinct provisions unless waived, and cannot include terms that reduce TNC driver protections or status.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.13. (a) A sectoral agreement submitted to the board for approval shall address, at minimum, the following subjects, each of which must be set forth separately in the sectoral agreement, unless a subject is expressly waived by mutual agreement of the certified driver bargaining organization and the covered TNCs: (1) Appeals process for deactivations. (2) Representation of TNC drivers in deactivation appeals. (3) Paid leave. (4) Information disclosed to TNC drivers about trips on per-trip, weekly, and monthly earnings receipts and summaries, and on initial ride offers. (5) Grievance and arbitration procedures to resolve disputes arising under the sectoral agreement. (6) Grievance and arbitration procedures to resolve disputes about whether a TNC driver has received the mandatory compensation or benefits required by Chapter 10.5 (commencing with Section 7448). (7) Safety mandates imposed by the covered TNCs that require TNC drivers to purchase safety equipment or purchase safety software, and safety features or protocols proposed by the certified driver bargaining organization that have a demonstrable purpose of reducing the risk of physical assault or injury to TNC drivers. For the purposes of this paragraph, “purchase” includes an automatic withdrawal from TNC driver earnings. (8) Labor-TNC partnerships. (9) Reasonable access by the certified driver bargaining organization to covered TNC-TNC driver communication systems. (10) Deduction of voluntary fees and dues from payments to TNC drivers. (11) Contributions or fees for a separate fund for the administration of benefits and services to TNC drivers including for TNC driver representation in deactivation appeals and other related activities. (12) Duration of the sectoral agreement, which shall be between three and five years. (b) A sectoral agreement, including an agreement recommended by an arbitrator pursuant to Section 7470.14, may address subjects beyond the required subjects set forth in subdivision (a), including provisions for earnings and benefits above the minimums guaranteed to TNC drivers by Chapter 10.5 (commencing with Section 7448). These additional subjects shall be addressed in separate provisions of the sectoral agreement and are subject to nonbinding recommendations as set forth in Section 7470.14. (c) A sectoral agreement, including an agreement recommended by an arbitrator pursuant to Section 7470.14, shall not contain a provision that does any of the following: (1) Reduces the minimum guarantees provided to TNC drivers by Chapter 10.5 (commencing with Section 7448). (2) Restrains TNC drivers’ flexibility to choose work opportunities as protected by Section 7451. (3) Alters or purports to alter the legal status of TNC drivers as independent contractors as established by Section 7451. (4) Prevents an individual covered TNC from exercising its autonomy pursuant to Section 7470.12. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.14. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
This section sets out bargaining, mediation, and arbitration steps for covered TNCs and the certified driver bargaining organization.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.14. (a) After the board notifies the covered TNCs of the board’s determination that a specified TNC driver organization is the certified driver bargaining organization for the bargaining unit, that TNC driver organization or those covered TNCs may request to begin negotiations. (b) (1) All TNCs that are covered TNCs pursuant to Section 7470.5, their agents or representatives, and the certified driver bargaining organization shall have an obligation to negotiate in good faith to reach a sectoral agreement that will apply to all covered TNCs pursuant to this chapter. (2) Covered TNCs may form a multicompany committee for purposes of collective bargaining. If covered TNCs do not form a multicompany committee pursuant to this paragraph, then the certified driver bargaining organization may require all covered TNCs to bargain within the certified driver bargaining organization together, and an individual covered TNC shall not object to such a requirement to bargain in concert with other covered TNCs. (3) A sectoral agreement shall be approved by covered TNCs that includes at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that includes at least the two largest covered TNCs. (4) For purposes of this subdivision, “to negotiate in good faith” means the performance of the mutual obligation of the covered transportation network companies or their agents or representatives and the certified driver bargaining organization to meet at reasonable times and negotiate in good faith with respect to subjects within the scope of representation and to execute a written contract incorporating any agreement reached if requested by either party. However, this mutual obligation does not compel either party to agree to a proposal or require the making of a concession. (c) If the certified driver bargaining organization and covered TNCs reach a recommended sectoral agreement for the bargaining unit, the recommended agreement shall be ratified pursuant to the certified driver bargaining organization’s procedures. The recommended agreement shall then be submitted to the board for review and approval or disapproval. If the recommended agreement is not ratified according to the certified driver bargaining organization’s procedures, the certified driver bargaining organization and covered TNCs shall resume bargaining. (d) (1) If there has been no prior sectoral agreement under this chapter, covered TNCs or the certified driver bargaining organization may file with the board, at any time following 210 days after an initial request to bargain, a petition requesting that the board issue an order referring the parties to mediation of their issues. The parties may also jointly file a petition requesting referral to mediation at any time after the commencement of bargaining. Upon receipt of a petition, the board shall promptly refer the parties to mediation. (2) If the parties have not agreed upon a mediator, the board shall, within seven days of receiving the petition, obtain from the California State Mediation and Conciliation Service (CSMCS) a list of nine qualified, disinterested mediators who have experience in labor mediation and submit it to the parties. A representative of the covered TNCs and a representative of the certified driver bargaining organization shall alternately strike from the list one of the names. The order of striking shall be determined by lot until one name remains. The remaining person shall be designated as the mediator. In the event the parties are unable to select the mediator within 15 days following receipt of the list from the board because a party refuses to strike names, the board shall appoint the mediator from the list provided by CSMCS. (3) The parties shall have a duty to participate in good faith in mediation. (4) If the certified driver bargaining organization and the covered TNCs reach a recommended sectoral agreement for the industry through mediation, the approval process described in subdivision (c) shall apply. (5) Communications and documents exchanged pursuant to mediation shall be inadmissible in any official, regulatory, or judicial proceeding, consistent with Chapter 2 (commencing with Section 1115) of Division 9 of the Evidence Code. (e) (1) Within 30 days after a dispute has been referred to mediation, the parties shall select a prospective arbitrator to resolve the dispute if mediation is unsuccessful. If the parties have not agreed upon an arbitrator within 30 days, the covered TNCs and the certified driver bargaining organization each shall propose three arbitrators to the board and the board shall propose three arbitrators from the American Arbitration Association roster who have at least 10 years of experience conducting labor arbitrations in California, have interest arbitration experience, and are members of the National Academy of Arbitrators. The certified driver bargaining organization and the covered TNCs shall select an arbitrator within seven days of receipt of the combined list from the board. The parties may mutually select an arbitrator who is not on the list. If the parties cannot agree on an arbitrator, each side shall alternatively strike from the list one of the names until an arbitrator is chosen by process of elimination. The board shall determine by lot which side shall strike first. If either side refuses to propose arbitrators for the list or to participate in selecting an arbitrator within 15 days following receipt of the list from the board, the board shall appoint the arbitrator from the original list proposed by the board. (2) If the mediator is unable to achieve agreement between the parties concerning an appropriate resolution within 75 days of appointment of the mediator or within 60 days after the first meeting of the parties with the mediator, whichever occurs first, either the certified driver bargaining organization or the covered TNCs may petition the board to refer the dispute for resolution through arbitration. The parties may also jointly file a petition requesting referral of the dispute to arbitration at any time after the commencement of bargaining. Upon a filing of such a petition, the board shall refer the dispute to the arbitrator for resolution. (3) (A) The arbitrator shall hold hearings on all matters related to the dispute. The parties may be heard and represented by counsel or by other representatives, as the parties may designate. The arbitrator shall determine the order of presentation by the parties and shall have discretion and authority to decide all procedural issues that may be raised. At the mutual request of the parties, the arbitrator may meet directly with the parties to attempt to mediate the dispute. (B) The TNCs and the certified driver bargaining organization shall each be responsible for 50 percent of the cost of the arbitrator or mediator. The board shall have the authority to apportion costs among TNCs based on market share if the TNCs cannot agree to apportion costs among themselves. (C) The parties may present, either orally or in writing, or both, statements of fact, supporting witnesses and other evidence, and arguments of their respective positions. (D) The arbitrator shall have the authority to require the production of additional oral or written evidence from the parties. The arbitrator shall provide, at the request of either party, that a full and complete record be kept of any hearings, with the cost of the record borne by the requesting party. If such a record is created, it shall be shared with all parties, regardless of the party that paid for it. (E) Within 90 days of the first meeting of the parties with the arbitrator or 105 days after appointment of the arbitrator, whichever occurs first, the arbitrator shall make a just and reasonable determination of the matters in dispute, and shall issue a recommended sectoral agreement that resolves all disputed issues. The time period for the arbitration proceedings may be extended by the arbitrator upon good cause shown, or by agreement, by the parties. (F) In issuing a recommended sectoral agreement, the arbitrator shall specify the basis for their findings, taking into consideration the following factors: (i) The positions of the parties. (ii) The conditions of similar workers. (iii) Whether the terms of the recommended agreement achieve the policy goals set forth in Section 7470.1, including, but not limited to, the improvement of working conditions and the improvement or provision for the prompt resolution of disputes between covered TNCs and TNC drivers. (iv) If the covered TNCs claim an inability to pay for the certified driver bargaining organization’s demands, the financial ability of the covered TNCs to pay for the requirements set forth in the recommended agreement. (v) The impact of the recommended agreement on the delivery of services provided by TNCs. (vi) Whether the recommended agreement would have a discriminatory impact on smaller TNCs or new entrants to the industry. (vii) Any other factors recommended by the parties that the arbitrator finds to be consistent with this chapter. (G) The sectoral agreement recommended by the arbitrator shall contain all of the following: (i) Terms on which the parties have mutually agreed. (ii) Binding recommendations on all minimum subjects set forth in subdivision (a) of Section 7470.13 that have not been waived. (iii) Nonbinding recommendations on all other matters submitted for dispute resolution within the scope of representation. (H) After receipt of the recommended sectoral agreement, the covered TNCs shall have 10 days to notify the certified driver bargaining organization as to whether the covered TNCs accept the recommended sectoral agreement in its entirety, including the nonbinding recommendations. If the covered TNCs accept the recommended sectoral agreement in its entirety, the recommended sectoral agreement shall be submitted to the board for review and approval or disapproval. (I) The certified driver bargaining organization and the covered TNCs may also mutually agree to modify the recommended sectoral agreement and submit a modified sectoral agreement, in whole, to the board for review and approval or disapproval within 15 days after receiving the recommended sectoral agreement. (J) (i) If, within 10 days of receiving the recommended sectoral agreement, the covered TNCs have not accepted the recommended sectoral agreement, and within 15 days of receiving the sectoral agreement the parties have not agreed upon a modified sectoral agreement, the certified driver bargaining organization may, within 20 days of receiving the recommended sectoral agreement, submit the proposed sectoral agreement without the nonbinding recommendations to the board for review and approval. Notwithstanding the submission of the modified sectoral agreement for approval, or the approval of the modified sectoral agreement, the parties shall have a duty to continue to bargain in good faith to reach agreement on the subjects addressed by the nonbinding recommendations. (ii) If the certified driver bargaining organization does not elect to submit a proposed sectoral agreement to the board pursuant to clause (i), the parties shall have a duty to continue to bargain in good faith over the items in dispute to reach agreement on a new sectoral agreement for submission to the board. (iii) The certified driver bargaining organization and the covered TNCs may, at any time, mutually submit a new proposed sectoral agreement to the board for review and approval or disapproval, and such an agreement may include modifications to any of the terms of the binding recommendations. (K) The time periods set forth in this section may be extended by mutual agreement of the certified driver bargaining organization and the covered TNCs. (L) For purposes of this section, any decision or action by the covered TNCs means a decision or action approved by covered TNCs that includes at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that includes at least the two largest covered TNCs. (f) Following an initial sectoral agreement, all subsequent negotiations for all subsequent agreements shall begin at least 180 days before the current agreement expires. For all subsequent agreements, either the covered TNCs or the certified driver bargaining organization may, at any time after 180 days after the commencement of negotiations, petition the board to refer the parties to mediation. Except as provided in this subdivision, the timelines and procedures for mediation and arbitration for subsequent agreements shall be as provided in this section. The terms of a sectoral agreement shall remain in effect, including, but not limited to, any grievance and arbitration provisions and any provisions governing the deduction and transmittal of membership dues, until a new agreement is approved by the board. (g) For purposes of this section, any decision is binding on all covered TNCs if approved by covered TNCs that include at least 80 percent of the industry, as measured by rideshare volume on the most recent quarterly report filed with the board, and that include at least the two largest covered TNCs. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.15. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
A TNC can become bound to a sectoral agreement if its rideshare volume later meets the 95-percent threshold, and covered TNCs, the board, and the driver bargaining organization must follow the emergency-negotiation and approval process if a provision is enjoined.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.15. (a) A TNC that was not a covered TNC when a sectoral agreement took effect but whose rideshare volume in a later quarter brings it within the 95-percent threshold identified in Section 7470.5 shall become a covered TNC, and therefore bound by all terms of the sectoral agreement immediately, unless exempted pursuant to subdivision (c). (b) A TNC that becomes a covered TNC pursuant to this section shall remain a covered TNC for the remaining term of the sectoral agreement. (c) (1) If a TNC that would otherwise become a covered TNC under subdivision (a) obtains a preliminary injunction, final court order, or other legal or regulatory order that exempts such covered TNC from any provision of the sectoral agreement, that TNC shall not be bound by the enjoined provision, pending final resolution of the litigation, or the resolution of emergency negotiations as provided in this section, whichever is earlier. All other provisions of the agreement shall continue to apply to all covered TNCs. (2) Within three business days of receiving notice of such injunction or order, the board shall convene the certified driver bargaining organization and all covered TNCs for emergency negotiations aimed solely at revising the provision or provisions deemed unlawful as applied to the objecting TNC. Emergency negotiations under this subdivision shall neither reopen nor impair any agreement terms not directly related to the provision or provisions held unlawful. (3) Any agreement reached under this subdivision must be approved by covered TNCs that include at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that include at least the two largest covered TNCs, unless the 80-percent requirement is itself adjudged unlawful as to any covered TNC, in which case the revised provision shall require the unanimous agreement of all covered TNCs. (4) Any agreement resulting from emergency negotiations must be reviewed and approved or disapproved by the board, in accordance with the requirements of Section 7470.17, within 14 calendar days after the end of emergency negotiations. (5) If emergency negotiations do not produce an agreement approved by the necessary parties for submission to the board within 30 days, either the certified driver bargaining organization or any nonobjecting TNC may rescind the sectoral agreement by notifying the board within 10 days of the expiration of the 30-day period. Upon rescission of the sectoral agreement, the certified driver bargaining organization and all covered TNCs shall have a duty to bargain in good faith for a new sectoral agreement pursuant to Section 7470.10. If neither the certified driver bargaining organization nor any nonobjecting TNC rescinds the sectoral agreement, the sectoral agreement shall remain in effect except for any provision or provisions deemed unlawful as applied to the objecting TNC. (6) If a sectoral agreement is rescinded pursuant to paragraph (5), the certified driver bargaining organization and any covered TNC or group of covered TNCs may enter into an agreement consistent with Section 7470.13 that shall be effective until a new sectoral agreement is approved. That agreement shall be submitted to the board for approval or disapproval pursuant to Section 7470.17 but, upon approval by the board, such an agreement shall only be effective as to the TNCs that have approved the agreement. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.16. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
A noncovered TNC may opt into a sectoral agreement by written notice, and if it does, it stays bound for the rest of that agreement’s term.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.16. (a) When a sectoral agreement is in effect, any TNC that is not a covered TNC for purposes of Section 7470.5 may choose to become bound to the sectoral agreement by providing written notice to the board, the certified driver bargaining organization, and the covered TNCs. A TNC that chooses to become bound to a sectoral agreement pursuant to this section shall be bound for the remaining term of the agreement. Such a TNC shall not, on account of its exercise of the option provided by this section, become a covered TNC for purposes of negotiation of subsequent sectoral agreements or coverage by subsequent sectoral agreements. (b) It shall be unlawful for any TNC that is not a covered TNC nor voluntarily bound by the terms of the sectoral agreement as provided by this section to make any statement, advertisement, or imply in any official communication that such TNC is bound by the terms of the sectoral agreement. (c) During the time that a noncovered TNC is bound by the terms of the sectoral agreement pursuant to this section, the certified driver bargaining organization shall represent the TNC drivers who drive for the noncovered TNC for purposes of this chapter. The noncovered TNC shall have the same obligations as a covered TNC to provide information to the board necessary to administer this chapter and to provide information to the certified driver bargaining organization necessary for representation of the TNC drivers. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.17. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
A sectoral agreement must be submitted to the board, reviewed by the board’s general counsel, and then approved or disapproved by the board.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.17. (a) After a sectoral agreement has been approved by the parties or recommended by an arbitrator, the agreement shall be submitted to the board for approval or disapproval. (b) The general counsel of the board shall review the proposed agreement to determine whether: (1) The agreement addresses the mandatory subjects established in subdivision (a) of Section 7470.13 that were not mutually waived. (2) The agreement does not contain any terms prohibited by subdivision (c) of Section 7470.13. (3) The agreement advances the public policy goals stated in Section 7470.1. (4) The agreement will not have anticompetitive effects on the industry beyond those contemplated by this act. (5) The agreement was the product of fair, arm’s-length negotiation or arbitration under the procedures of this chapter. (c) The general counsel has the right to gather and consider any necessary additional evidence, including by requesting additional information from the certified driver bargaining organization and the covered TNC, to review the proposed agreement. (d) The general counsel shall issue a recommended determination as to whether the agreement should be approved or disapproved. If the general counsel recommends that the agreement be disapproved, the general counsel shall provide reasons for the disapproval and identify any provisions that the general counsel determined were not consistent with the standards in subdivision (b). If the general counsel recommends approval of the agreement, the general counsel shall provide a written opinion identifying the reasons for the approval. Absent good cause, the general counsel shall issue the determination within 60 days of receipt of the recommended agreement. (e) The general counsel’s recommendation shall be served on the board and the parties to the agreement. Within 21 days of the general counsel’s recommendation, the board shall issue a final order that approves or disapproves the agreement. (f) If a final order of the board disapproves of the proposed sectoral agreement, the certified driver bargaining organization and covered TNCs shall bargain in good faith to reach agreement on a revised sectoral agreement for submission to the board. If the proposed sectoral agreement was recommended by an arbitrator or modified by the parties after an arbitrator recommended a sectoral agreement, either the certified driver bargaining organization or the covered TNCs may request that the board remand the matter to the arbitrator for resolution of any disputes and the issuance of a revised recommended sectoral agreement for submission to the board. A revised agreement shall be submitted to the board for review pursuant to this section. (g) (1) If the proposed sectoral agreement includes binding terms that were recommended by an arbitrator and not mutually accepted by the certified driver bargaining organization and covered TNCs, the general counsel shall recommend disapproval of the proposed agreement if a party demonstrates that the arbitrator’s recommendations were procured by corruption, fraud, or other undue means, there was corruption by the arbitrator, the rights of the party were substantially prejudiced by the misconduct of the arbitrator, or the arbitrator’s recommendation was arbitrary or capricious in light of the record. Absent good cause, the general counsel shall issue the determination within 60 days of receipt of the recommended agreement. (2) The general counsel’s recommendation pursuant to this subdivision shall be served on the board and the parties to the agreement. Within 21 days of the general counsel’s recommendation, the board shall issue a final order that approves or disapproves the agreement. (3) If a final order of the board disapproves a proposed agreement pursuant to this subdivision, the parties shall bargain in good faith to reach agreement on a sectoral agreement for submission to the board. Either side may request that the board conduct a new process to select a new arbitrator and refer the parties to arbitration pursuant to Section 7470.14. (h) Upon approval of a sectoral agreement by the final order of the board, the agreement shall be final and binding on the certified driver bargaining organization and the TNC drivers it represents and on all covered TNCs. The terms of the agreement shall thereby become enforceable commitments for each covered TNC to implement with respect to TNC drivers. Each covered TNC shall adhere to the terms as minimum standards for all TNC drivers using its platform in the state for the duration of the agreement. In the event of any conflict between an approved sectoral agreement and a term of service or contract between an individual TNC driver and a covered TNC, the sectoral agreement shall prevail for covered matters, except that nothing in the sectoral agreement shall reduce rights or benefits already secured by law or individual contract. (i) During the term of a sectoral agreement, the agreement may be reopened, amended, or modified by mutual agreement of the certified driver bargaining organization and the covered TNCs. Any such amendments or modifications must be submitted to the board for approval or disapproval pursuant to this section and shall become effective only upon approval of the board. (j) For purposes of this section, any decision or action by the covered TNCs means a decision or action approved by covered TNCs that includes at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that includes at least the two largest covered TNCs. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.18. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
This section lists unfair labor practices for TNCs, their agents, multicompany committees, and TNC driver organizations, and lets a charging party ask the board for injunctive relief.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.18. (a) It shall be an unfair practice for a TNC, an agent of a TNC, or a multicompany committee to do any of the following: (1) Fail or refuse to provide the board with a list containing the information required by subdivision (a) of Section 7470.6 or subdivision (c) of Section 7470.9 or any other information required by this act, or knowingly provide an inaccurate list or inaccurate information. (2) Fail or refuse to negotiate in good faith with a certified driver bargaining organization, as required by this act. (3) Fail or refuse to provide a certified driver bargaining organization with information required by the organization that is relevant and necessary in discharging its representational duties or in exercising its right to represent TNC drivers regarding terms and conditions of work within the scope of representation, as established in this act. (4) Dominate or interfere with the formation, existence, or administration of any TNC driver organization, or contribute financial or other support to any such organization, whether directly or indirectly, unless required by this act or other law, by any regulations implementing this act or other law, or as a result of a sectoral agreement approved by the board, including, but not limited to, by doing any of the following: (A) Participating or assisting in, supervising, or controlling the initiation or creation of any such organization or the meetings, management, operation, elections, or formulation or amendment of the organization’s constitution, rules, or policies. (B) Offering incentives to TNC drivers to join any such organization. (C) Donating free services, equipment, materials, offices, meeting space, or anything else of value for use by any such organization, unless those items have been negotiated as a benefit or service for TNC drivers in a sectoral agreement approved by the board. However, a covered TNC may permit TNC drivers to perform representational work protected under this act during working hours without loss of time or may allow agents of a certified driver bargaining organization to meet with drivers on its premises or communicate with TNC drivers using the covered TNC’s platform. (5) Require a TNC driver to join any company union or TNC driver organization or requiring a TNC driver to refrain from forming, joining, or assisting a TNC driver organization of their choice. (6) Encourage or discourage membership in any company union or in any TNC driver organization by discriminating with regard to any term or condition of work. (7) Discharge, deactivate, or otherwise discriminate with regard to the ability of a TNC driver to obtain rides, or otherwise discriminate against a TNC driver, because they have signed or filed any affidavit, petition, or complaint under this chapter, have given any information or testimony under this chapter, have participated or declined to participate in a TNC driver organization, or have exercised any rights under this chapter. (8) Distribute or circulate any blacklist of individuals exercising any right created or confirmed by this chapter or of members of a TNC driver organization, or inform any person of the exercise by any individual of that right or of the membership of any individual of a TNC driver organization for the purpose of preventing those blacklisted or named individuals from obtaining or retaining opportunities for remuneration. (9) Interfere with, restrain, or coerce TNC drivers in the exercise of rights guaranteed by Section 7470.3 or in any other way violate this chapter. (b) It shall be an unfair practice for a TNC driver organization or its agents to do any of the following: (1) Restrain or coerce either of the following: (A) TNC drivers in the exercise of rights guaranteed in Section 7470.3. This subparagraph shall not impair the right of a TNC driver organization or certified driver bargaining organization to prescribe its own rules with respect to the acquisition or retention of membership therein or with respect to TNC drivers’ financial contributions to a TNC driver organization or a certified driver bargaining organization. (B) A covered TNC or multicompany committee in its selection of representatives for purposes of bargaining or the adjustment of grievances. (2) Cause or attempt to cause a TNC or its agent or representative to violate subdivision (a). (3) Fail or refuse to negotiate in good faith with a covered TNC or multicompany committee as required by this chapter, provided it is the certified driver bargaining organization. (4) Fail or refuse to provide information requested by a covered TNC or its representative that is relevant and necessary for purposes of bargaining regarding terms and conditions of work within the scope of representation, as established by this chapter, provided that it is the certified driver bargaining organization. (5) Fail or refuse to fulfill its duty of fair representation toward TNC drivers where it is the certified driver bargaining organization by acts or omissions that are arbitrary, discriminatory, or in bad faith. (c) The unfair practice procedures in Chapter 1 (commencing with Section 31001) of Division 3 of Title 8 of the California Code of Regulations shall apply for purposes of this chapter, except to the extent that the board has adopted procedures specific to this act. (d) A party filing an unfair practice charge under this section may petition the board to seek injunctive relief on behalf of the charging party, pending a decision on the merits of the charge by the board. The board may also petition the appropriate superior court for that relief in accordance with Section 3563 of the Government Code or any regulation adopted thereunder. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.19. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
Meetings of a mediator or arbitrator with parties to the specified negotiations, mediation, and arbitration processes are exempt from the Bagley-Keene Open Meeting Act.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.19. Any meeting of a mediator or arbitrator with any party or group or both parties or groups to the negotiations process and the mediation and arbitration processes set forth in Section 7470.14 is exempt from the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code). (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
This section defines key terms for the TNC Drivers Labor Relations Act.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.2. For purposes of this chapter, the following definitions apply: (a) “Active TNC driver” means a transportation network company (TNC) driver who has driven at least the minimum number of rides during the past six months with a covered TNC’s platform in the State of California, as determined by the board pursuant to Section 7470.6. (b) “Board” means the Public Employment Relations Board established pursuant to Section 3541 of the Government Code. (c) “Certified driver bargaining organization” means an organization that has been certified by the board as the representative of all TNC drivers in the state for purposes of bargaining pursuant to this chapter. (d) (1) “Company union” means any committee, worker representation plan, or association of TNC drivers or others that exists for the purpose, in whole or in part, of dealing with TNCs concerning grievances or terms and conditions of work for TNC drivers, for which either or both of the following is true: (A) A TNC has initiated or created the union, proposed its initiation or creation, participated in the formulation of its governing rules or policies, or participated in or supervised its management, operations, or elections. (B) A TNC has maintained, financed, controlled, dominated, or assisted in maintaining or financing the union, unless required to do so by this chapter or any regulations implementing this chapter, whether by compensating anyone for services performed on its behalf or by donating free services, equipment, materials, office or meeting space, or anything else of value, or by any other means. (2) A TNC driver organization shall not be deemed a company union solely because any of the following are true: (A) It has negotiated or been granted the right to designate TNC drivers to be released with pay for the purpose of providing representational services in labor-management affairs on behalf of TNC drivers represented by the TNC driver organization. (B) In the course of providing representational services to workers for whom it is the certified driver bargaining organization, a TNC has allowed agents of the TNC driver organization to meet with drivers at the TNC’s premises. (C) It has received from a TNC the voluntary membership dues deductions of TNC drivers or the TNC has processed or transmitted membership dues pursuant to subdivision (d) of Section 7470.9. (D) It has received funds from a TNC for the administration of benefits and services to TNC drivers pursuant to a bargaining agreement in its capacity as the certified driver bargaining organization. (e) “Covered TNC” means a TNC that is a covered TNC based on ride-share volume, as determined pursuant to Section 7470.5. (f) “Multicompany committee” means a committee formed by multiple TNCs for purposes of bargaining pursuant to this act. (g) “Scope of representation” has the same meaning as set forth in Section 7470.11. (h) “Sectoral agreement” means an agreement between covered TNCs and the certified driver bargaining organization that meets the requirements of Section 7470.13 and that, if approved by the board, will apply to all covered TNCs. (i) “Transportation network company” or “TNC” is a person or company that falls under the definition set forth in subdivision (c) of Section 5431 of the Public Utilities Code. A TNC is covered by this chapter only if it provides prearranged transportation services in the state and connects passengers with TNC drivers and only with respect to those TNC drivers. (j) “Transportation network company driver” or “TNC driver” means any person who uses a personal vehicle in connection with a TNC’s online-enabled application or platform to connect with passengers in the state pursuant to the TNC license of the TNC. However, this term does not include any individual, who, with respect to the provision of services through a TNC’s online-enabled application or platform, is determined by a final order of a court of competent jurisdiction or the National Labor Relations Board, or declared by a TNC to be a person who is an employee within the meaning of Section 152(3) of Title 29 of the United States Code or within the meaning of Section 31.3121(d)-1 or Section 31.3401(c)-1 of Title 26 of the Code of Federal Regulations. (k) “Transportation network company driver organization” or “TNC driver organization” means an organization that has all of the following characteristics: (1) The organization has engaged in advocacy for drivers who transport passengers in California, or is affiliated with an organization that has engaged in advocacy for drivers who transport passengers in California, for a minimum of five years. (2) The organization has experience, or is affiliated with an organization that has experience, in negotiating collective bargaining agreements and representing workers under those agreements, including the representation of workers in filing unfair labor practice charges and in grievance proceedings. (3) The organization has as one of its main purposes the representation of workers in their labor relations. (4) The organization’s bylaws or other internal governing documents will give TNC drivers the right to be members of the organization and to participate in the democratic control of the organization if the bargaining unit chooses to be represented by the organization. (5) The organization is not sponsored by, dominated by, or controlled by a transportation network company. (6) The organization is not a company union. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.20. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
This section says the chapter is severable, so if part of it is later held invalid, the rest still remains valid.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.20. The provisions of this chapter are severable. If any portion, section, subdivision, paragraph, clause, sentence, phrase, word, or application of this chapter is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this chapter. The people of the State of California hereby declare that they would have adopted this chapter and each and every portion, section, subdivision, paragraph, clause, sentence, phrase, word, and application not declared invalid or unconstitutional without regard to whether any other portion of this chapter or application thereof would be subsequently declared invalid. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.21. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
The board may adopt, amend, or repeal necessary rules and regulations as emergency regulations, following the Administrative Procedure Act.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.21. The board may also adopt, amend, or repeal all rules and regulations necessary to carry out this chapter as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption, amendment, or repeal of regulations pursuant to this chapter shall be deemed necessary for the immediate preservation of the public peace, health, safety, or general welfare within the meaning of Section 11346.1 of the Government Code. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
TNC drivers have the right to organize, bargain, take concerted action, refrain from those activities, and confer with TNCs, so long as the TNC does not interfere, restrain, or coerce workers during the conference.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.3. (a) TNC drivers have the right to form, join, and participate in the activities of TNC driver organizations, to bargain through representatives of their own choosing, to engage in concerted activities for the purpose of bargaining or other mutual aid or protection, and to refrain from such activities. (b) This chapter shall not be interpreted to prohibit TNC drivers from exercising the right to confer with TNCs at any time, provided that during any conference there is no attempt by the TNC, directly or indirectly, to interfere with, restrain, or coerce workers in the exercise of the rights guaranteed by this section. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.4. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
The board must enforce this chapter and may adopt rules to implement it.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.4. (a) The board shall enforce this chapter. (b) The powers and duties of the board, as described in Section 3541.3 of the Government Code, shall also apply to the board’s administration and enforcement of this chapter. (c) The board may adopt rules and regulations as necessary to implement this chapter. (d) The board may, where necessary and consistent with the purpose of this act, construe any provision in Section 3541.3 of the Government Code, or a related statute or implementing regulation applicable to the board, referring to “employee” or “employees” to include a “transportation network company driver,” as defined in Section 7470.2, referring to “employee organization” to include a “transportation network company driver organization,” as defined in Section 7470.2, referring to “exclusive representative” to include a “certified driver bargaining organization,” as defined in Section 7470.2, and referring to “employer” to include a “transportation network company,” as defined in Section 7470.2. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
Each TNC must send the board a quarterly statewide total of rides, in a manipulable electronic format, starting January 1, 2026.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.5. (a) (1) In addition to the TNC driver lists required by Section 7470.6 and 7470.9, within two weeks after the end of each calendar quarter, commencing on January 1, 2026, and at the completion of every three months thereafter, each TNC shall electronically submit to the board a single statewide total of the rides performed during the prior quarter by TNC drivers, as defined in Section 7470.2, on its online-enabled application or platform. (2) The information required by paragraph (1) shall be produced in a manipulable electronic format, such as a spreadsheet program consisting of cells organized by lettered columns and numbered rows with each data point in a separate cell that allows users to sort and perform calculations and analysis. The board may require that the information be provided in a specified software program. (b) (1) Within 14 days after the deadline in subdivision (a), the board shall total all rides reported pursuant to that subdivision. (2) The board shall rank all TNCs by rideshare volume in descending order. The board shall begin with the highest ranked TNC and continue down the list until the board has identified the TNCs whose rides collectively equal or exceed 95 percent of the statewide total for the preceding quarter. These TNCs shall be deemed “covered TNCs” for purposes of this chapter. (3) For purposes of this subdivision, all TNCs under common ownership or control shall be considered to be a single TNC. The board shall publish the list of covered and noncovered TNCs and rideshare volume information on its internet website. The board shall notify each TNC as to whether the TNC is a covered TNC. (c) (1) If a TNC willfully fails to submit the list required by this section, the board shall promptly issue a complaint charging the TNC with an unfair practice and petition a court of competent jurisdiction for temporary relief to compel production of the list. (2) In addition to any other remedy provided by law, a TNC found to have committed an unfair practice by failing to submit the list required by this section shall be subject to a civil penalty, payable to the General Fund, not to exceed ten thousand dollars ($10,000) per day for each day after the deadline that the list was not provided. The amount of the penalty shall be determined by the board through application of the following criteria: (A) The size of the TNC. (B) The severity of the violation. (C) Any prior history of violations by the TNC. (3) In addition to any other remedy provided by law, a TNC found to have committed an unfair practice by failing to submit the list required by this section shall be required by the board to pay the board’s attorney’s fees and costs for any court proceeding initiated by the board to compel production of the list. (4) The failure of a TNC to submit the list required by this section shall not prevent the board from providing a list of covered and noncovered TNCs to the extent the board concludes that the missing information cannot reasonably be expected to change whether those TNCs are covered or noncovered TNCs. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.6. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
Covered TNCs must send specified driver information to the board every quarter, and the board must compile the data into an active-driver list.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.6. (a) (1) Within two weeks after the end of each calendar quarter, commencing with the quarter ending on March 31, 2026, each covered TNC shall submit to the board the name, driver’s license number, and, to the extent known by a TNC, the most recent email address, local residence and mailing addresses, cellular telephone number, as well as the TNC driver’s first date joining the platform and the number of rides the TNC driver completed in the previous six months for each TNC driver who has completed at least 20 rides within the State of California within the prior six months. (2) The list required by paragraph (1) shall be produced in a manipulable electronic format, such as a spreadsheet program consisting of cells organized by lettered columns and numbered rows with each data point in a separate cell that allows users to sort and perform calculations and analysis. The board may require that the list be provided in a specified software program. (b) Within 14 days of the deadline for submission of the information set forth in subdivision (a) and until a TNC driver organization has been certified as the certified driver bargaining organization, the board shall combine the data provided by covered TNCs and calculate the median number of rides provided by all TNC drivers whose information has been submitted under subdivision (a) and shall prepare a list of all TNC drivers who have completed the median number of rides or more in the past six months. Any TNC driver who completed the median number of rides or more shall be deemed an active TNC driver. The list shall include the information set forth in subdivision (a) and shall designate the covered TNC or covered TNCs the TNC driver has driven for during the prior six months. The board shall take appropriate steps to ensure that TNC drivers who drive for multiple covered TNCs are not listed multiple times but are listed a single time with the relevant covered TNCs designated. An individual covered TNC’s failure to submit the required information shall not relieve the board of its responsibility to timely provide the list required by this subdivision. These records shall not be considered public records under any applicable law. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.7. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
Entities must apply during a board-set 10-day window to be designated or renew TNC driver organization status; the board’s general counsel decides applications and can be appealed within 30 days if denied.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.7. (a) For purposes of this chapter, the board shall determine if an entity is a TNC driver organization within the meaning set forth in Section 7470.2, as follows: (1) The board shall designate a 10-day period to occur on or after January 1, 2026, and every three months thereafter, during which an entity must apply to the board in order to be designated as a TNC driver organization or to have its designation renewed. (2) The general counsel of the board shall have the authority to determine if an entity is a TNC driver organization upon application by that entity. The general counsel shall issue that determination within 10 days of receiving the application. (3) If the general counsel determines an entity is not a TNC driver organization, the general counsel shall state the reasons for this determination. An applicant determined not to be a TNC may appeal this adverse determination to the board within 30 days of the determination. (b) Once an entity has been determined to be a TNC driver organization, this determination shall remain valid for two years unless it is determined that the entity no longer meets the definition of a TNC driver organization. (c) The certified driver bargaining organization shall be presumed to continue to meet the definition of a TNC driver organization without the need to apply for renewal of that determination every two years. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.8. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
This section sets the procedures for certifying and decertifying TNC driver organizations, including proof thresholds, board deadlines, elections, and notice rules.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.8. The certification and decertification process for TNC driver organizations shall follow the procedures set forth in this section. (a) (1) (A) A TNC driver organization may, at any time after May 1, 2026, present to the board proof sufficient to show that at least 10 percent of active TNC drivers have authorized the TNC driver organization to act as their bargaining representative. (B) Within 30 days of a TNC driver organization request for a board determination under subparagraph (A), the board shall determine whether the organization has been authorized to act as bargaining representative by at least 10 percent of active TNC drivers. (2) Within 30 days of the board’s determination that a TNC driver organization has presented sufficient proof to satisfy subparagraph (A) of paragraph (1), and on every January 31, April 30, July 31, and October 31 thereafter, the board shall provide the TNC driver organization with the list described in subdivision (b) of Section 7470.6. A TNC driver organization may use the information in the list only for the purposes authorized by this chapter, and shall not provide the information to any third party unless that party is acting as the TNC driver organization’s agent for purposes authorized by this chapter. A covered TNC shall not be liable for any damages caused by the TNC driver organization’s or the board’s failure to safeguard the list described in Section 7470.6 from a data or security breach. (3) Within 30 days of the board’s determination that a TNC driver organization has presented sufficient proof to satisfy subparagraph (A) of paragraph (1), each covered TNC shall send a notice from the board to its TNC drivers who were on the most recent list submitted by that TNC to the board pursuant to Section 7470.6, in a form determined by the board, that the TNC driver organization is seeking to represent TNC drivers for the purpose of initiating a bargaining process in order to establish terms and conditions for TNC drivers in the industry. The board’s notice shall advise TNC drivers of the threshold for status as an active driver eligible to execute a proof of support. The board’s notice shall be neutral as to whether TNC drivers should support a TNC driver organization. (4) For six months from the date of the board’s determination that a TNC driver organization has been authorized to act as the bargaining representative by at least ten percent of active TNC drivers, no other TNC driver organization shall be certified as the certified driver bargaining organization of those workers without an election. (b) (1) (A) A TNC driver organization may, at any time after May 1, 2026, present to the board proof sufficient to show at least 30 percent of active TNC drivers have authorized the TNC driver organization to act as their bargaining representative. (B) Within 30 days of a TNC driver organization request for a board determination under subparagraph (A), the board shall make a determination as to whether the organization has presented sufficient proof to satisfy subparagraph (A), and if it has, shall certify the TNC organization as the certified driver bargaining organization, subject to paragraph (2). (2) (A) If a TNC driver organization seeking certification as the certified driver bargaining organization under this subdivision provides evidence that at least 30 percent but less than a majority of active TNC drivers have designated the TNC driver organization to act as their bargaining representative, the board shall wait 30 days before certifying the TNC driver organization as the certified driver bargaining organization. If, during those 30 days, another TNC driver organization provides evidence that at least 30 percent of active TNC drivers have authorized it to act as their bargaining representative, or a TNC driver provides evidence that at least 30 percent of active TNC drivers do not wish to be represented by any TNC driver organization, then the board shall within 60 days hold a representation election among all active TNC drivers. (B) The election shall be conducted using a remote electronic voting system that must allow both electronic voting from remote site personal computers via the internet and electronic voting from personal or cellular telephones. The system shall not include voting machines used for casting votes at polling sites or electronic tabulation systems where votes are cast nonelectronically but counted electronically, such as punch card voting or optical scanning systems. (3) If the TNC driver organization provides evidence that a majority of active TNC drivers have designated the TNC driver organization to act as their bargaining representative, then the board shall not wait 30 days nor shall it hold an election before certifying the TNC driver organization as the certified driver bargaining organization. (c) (1) A TNC driver organization may submit proof of support to the board to demonstrate that TNC drivers have authorized a TNC driver organization to act as their bargaining representative under subdivision (a) or (b). A TNC driver organization may submit any proof of support that complies with Section 32700 of Title 8 of the California Code of Regulations. Valid proof of support shall have been executed by the TNC driver within the two years prior to the date that the TNC driver organization requested the board determination. The fact that the proof of support was executed by the TNC driver before the effective date of this chapter shall not affect its validity. (2) For purposes of evaluating a TNC driver organization’s proof of support under subdivision (a) or (b), the board shall use the list of active TNC drivers that was most recently issued pursuant to Section 7470.6 at the time the TNC driver organization requested a board determination. (3) A TNC driver organization may submit proof that active TNC drivers have authorized the TNC driver organization to act as their bargaining representative under subdivision (a) or (b) on a rolling basis, over any time period that the TNC driver organization elects. If the TNC driver organization does so, the board may evaluate the proof on a rolling basis, subject to confirmation that the TNC driver is still on the relevant list of active TNC drivers when the TNC driver organization requests a board determination. The deadline for the board to determine whether the TNC driver organization has presented proof that a sufficient number of active TNC drivers wish to be represented by the TNC driver organization shall begin to run when the TNC driver organization notifies the board that it believes it has presented sufficient proof and is requesting a board determination. (d) A TNC driver organization may, at any time within one year of the board’s determination that the organization has been authorized to act as the bargaining representative by at least 10 percent of active TNC drivers, petition the board to conduct a representation election. (1) Upon the receipt of such a petition, the board shall schedule a representation election to take place within 45 days and shall announce that election date on its internet website. The eligible voters shall be those individuals who are on the list of active TNC drivers that was most recently issued pursuant to Section 7470.6 at the time the TNC driver organization petitioned the board to conduct an election. (A) The election shall be conducted using a remote electronic voting system that must allow both electronic voting from remote site personal computers via the internet and electronic voting from personal or cellular telephones. The system shall not include voting machines used for casting votes at polling sites or electronic tabulation systems where votes are cast nonelectronically but counted electronically, such as punch card voting or optical scanning systems. (B) If, within seven days of the announcement of the election date, any other TNC driver organization submits evidence that it has been authorized to act as the bargaining representative by at least 10 percent of active TNC drivers, that TNC driver organization shall also appear on the ballot. (C) Thirty days prior to the representation election, the board shall provide TNCs with an election notice that informs TNC drivers of the election date, how to vote, and what the effect of the representation election will be if the TNC driver organization receives a majority of valid votes cast. The board shall provide translated versions of the notice in all languages that the board determines are likely spoken by 5 percent or more of TNC drivers. Within seven days of the board’s provision of the notice, each covered TNC shall send the notice, by email, by text, and through the method it ordinarily uses to communicate with TNC drivers, to all of the TNC drivers who appeared on the most recent list submitted by that TNC to the board pursuant to Section 7470.6. The board’s notice shall advise TNC drivers of the threshold for status as an active driver eligible to cast a vote. The board may provide different versions of the notice that are appropriate for different means of communication. (2) If the TNC driver organization receives a majority of valid votes cast by active TNC drivers, it shall be certified as the certified driver bargaining organization of all TNC drivers in the bargaining unit. (3) When two or more TNC driver organizations are on the ballot and none of the listed choices receive a majority of the valid votes cast, there shall be a runoff election between the two choices receiving the highest number of votes cast and second highest number of votes cast. The election shall be held within 30 days of the determination that no choice received a majority of valid votes. The provisions for notice set forth in subparagraph (C) of paragraph (1) shall apply. (A) The TNC drivers eligible to vote in the runoff election shall be the same TNC drivers who were eligible to vote in the original election. A TNC driver organization receiving a majority of the valid votes cast in the runoff shall be certified as the certified driver bargaining organization of all TNC drivers in the bargaining unit. (B) If a majority of the valid votes cast are for no driver organization, then the board shall not certify any TNC driver organization as the certified driver bargaining organization. (e) (1) A TNC driver organization certified as the certified driver bargaining organization shall have the authority to represent all TNC drivers in the bargaining unit, without challenge by another TNC driver organization, for one year following certification and during the time that a bargaining agreement is in effect, provided that this period shall not be longer than three years following the date of the approval of a bargaining agreement, except during a 30-day window period that shall begin 90 days before, and end 60 days before, the bargaining agreement expires. (2) During the times when the certified driver bargaining organization is subject to challenge, TNC drivers may file for a decertification election upon a showing that at least 30 percent of active TNC drivers have demonstrated support for decertification. The board will determine the list of active TNC drivers pursuant to Section 7470.6. The board will then schedule an election within 30 days to determine the TNC driver organization’s status as the certified driver bargaining organization. The TNC driver organization shall retain its status as the certified driver bargaining organization if it receives a majority of valid votes cast by active TNC drivers. (f) The only appropriate bargaining unit of TNC drivers for purposes of this chapter is a statewide unit of all TNC drivers who drive for covered TNCs. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 7470.9. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. )
This section gives the certified driver bargaining organization representation and data-access rights, and imposes notice, dues-deduction, and confirmation duties on covered TNCs and the board.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 10.7. Transportation Network Company Drivers Labor Relations Act [7470 - 7470.21] ( Chapter 10.7 added by Stats. 2025, Ch. 335, Sec. 1. ) ## 7470.9. (a) The certified driver bargaining organization shall have the right to represent all TNC drivers in the bargaining unit with respect to matters within the TNC driver organization’s role as representative for purposes of this chapter. No other TNC driver organization shall be entitled to engage in bargaining with the covered TNCs concerning matters within the scope of representation. (b) The certified driver bargaining organization shall represent each TNC driver in the represented unit fairly with respect to matters within the scope of representation of the bargaining unit for purposes of this chapter, without discrimination and without regard to whether the TNC driver is a member of the TNC driver organization. (c) The certified driver bargaining organization shall be entitled to receive from the board, on a quarterly basis, within three weeks after the end of each calendar quarter, the lists of TNC drivers provided by the covered TNC to the board pursuant to Section 7470.6. The covered TNCs and the certified driver bargaining organization may, by mutual agreement, change the specification of the data that must be included on the list. The specification of the data that will be included on the list shall be within the scope of bargaining. The certified driver bargaining organization may use the information in the list only for the sole purpose of representing TNC drivers as authorized by this chapter and may not provide the information to any third party unless that party is acting as the organization’s agent for purposes authorized by this chapter or administering benefits to drivers pursuant to a bargaining agreement. No other TNC driver organization shall be entitled to receive such a list from the board. Before receiving the list, the certified driver bargaining organization shall certify to the satisfaction of the board that the organization has implemented sufficient data security protection procedures in compliance with applicable data privacy laws, strictly limiting the use of data to what is permitted under this chapter, and establishing clear protocols for data breach notifications. A covered TNC shall not be liable for any damages caused by the certified driver bargaining organization’s or the board’s failure to safeguard the list described in this section from a data or security breach. (d) The certified driver bargaining organization shall have a right to voluntary membership dues deduction upon presentation of dues deduction authorizations signed by individual TNC drivers, which may be in an electronic format or through the covered transportation network company’s online-enabled application. (1) A covered TNC shall commence making deductions as soon as practicable, but no later than 30 days after receiving proof of a signed dues deduction authorization, and dues shall be submitted to the certified driver bargaining organization within 30 days of the deduction. (2) The right to the membership dues deduction shall remain in full force and effect until an individual revokes authorization for deductions in writing in accordance with the terms of the signed authorization. (e) (1) Within 30 days after certification of the certified driver bargaining organization, the board shall develop a notice of TNC driver rights that notifies TNC drivers of their rights under this chapter and other applicable law, explains that TNC drivers are represented by the certified driver bargaining organization, provides the internet website and contact information of the certified driver bargaining organization, and informs TNC drivers of the procedure for filing an unfair practice charge. The board shall also post a copy of this notice on its internet website, may provide different versions of the notice that are appropriate for different means of communication, shall translate versions of the notice into all languages that the board determines are likely spoken by 5 percent or more of TNC drivers, and may modify this notice from time to time upon request of the certified driver bargaining organization. (2) Within 30 days of the board’s development of the notice described in paragraph (1), and at least once per month thereafter, each covered TNC shall send the notice to all TNC drivers who have provided rides within the State of California within the prior six months by text, email, and through the method that the covered TNC ordinarily uses to communicate with TNC drivers, provided that a covered TNC may petition to the board to be exempted from this requirement if it would impose an undue cost upon the covered TNC. (3) Each covered TNC shall provide newly activated TNC drivers a notice, via electronic communication on its digital network, that they are represented by the certified driver bargaining organization upon the TNC driver’s activation and that, if the driver performs 20 or more rides during a six-month period, their contact information will be provided to the certified driver bargaining organization on the next quarterly list. The notice shall be in a form approved by the certified driver bargaining organization and shall provide contact information for the certified driver bargaining organization. (4) A covered TNC shall, within five days of receiving a request from the certified driver bargaining organization, confirm whether an individual has completed rides through the TNC’s platform. (Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.) - 750. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 1. General Provisions [500 - 865.2] ( Chapter 1 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 10.8. Three Day Rule for Narcotic Drug Prescriptions [750- 750.] ( Article 10.8 added by Stats. 2024, Ch. 488, Sec. 1. )
Boards that license prescribers must create and share educational material about the federal “Three Day Rule,” and the Medical Board must also send it to acute care hospitals.
## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 1. General Provisions [500 - 865.2] ( Chapter 1 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 10.8. Three Day Rule for Narcotic Drug Prescriptions [750- 750.] ( Article 10.8 added by Stats. 2024, Ch. 488, Sec. 1. ) ## 750. (a) For purposes of this section, “prescriber” means a person authorized to write or issue a prescription pursuant to Section 11150 of the Health and Safety Code. (b) (1) Each board that licenses a prescriber shall develop informational and educational material regarding the federal Drug Enforcement Administration’s “Three Day Rule,” as codified in subsection (b) of Section 1306.07 of Title 21 of the Code of Federal Regulations, in order to ensure prescriber awareness of existing medication-assisted treatment pathways to serve patients with substance use disorder. (2) Each board shall annually disseminate the informational and educational material developed pursuant to paragraph (1) to each licensed prescriber’s email address on file with the board. (3) Each board shall post the informational and educational material developed pursuant to paragraph (1) on their internet website. (4) The requirements of this subdivision shall not apply to the Veterinary Medical Board. (c) The Medical Board of California shall also annually disseminate the informational and educational material it develops pursuant to subdivision (b) to each acute care hospital in the state. The board may disseminate the informational and educational material to each acute care hospital in the state via email. (d) The department and boards may consult with other state agencies as necessary to implement this section. (Added by Stats. 2024, Ch. 488, Sec. 1. (SB 1468) Effective January 1, 2025.) - 7500. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 1. General Provisions [7500 - 7500.3] ( Article 1 added by Stats. 1981, Ch. 1138, Sec. 11. )
This section says the chapter is the chapter on repossessors and may be cited as the “Collateral Recovery Act.”
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 1. General Provisions [7500 - 7500.3] ( Article 1 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7500. This chapter of the Business and Professions Code constitutes the chapter on repossessors. It may be cited as the “Collateral Recovery Act.” (Amended by Stats. 1995, Ch. 505, Sec. 1. Effective January 1, 1996.) - 7500.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 1. General Provisions [7500 - 7500.3] ( Article 1 added by Stats. 1981, Ch. 1138, Sec. 11. )
This section defines terms used in the repossession chapter, including “advertisement,” “assignment,” “repossession order,” “collateral,” “licensee,” and related words.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 1. General Provisions [7500 - 7500.3] ( Article 1 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7500.1. As used in this chapter: (a) “Advertisement” means any written or printed communication, including a directory listing, except a free telephone directory listing that does not allow space for a license number. (b) “Assignment” or “repossession order” means any written authorization by the legal owner, lienholder, lessor, lessee, or registered owner, or the agent of any of them, to skip trace, locate, or repossess any collateral, including, but not limited to, collateral registered under the Vehicle Code that is subject to a security agreement that contains a repossession clause. “Assignment” or “repossession order” also means any written authorization by an employer to recover any collateral entrusted to an employee or former employee in possession of the collateral. A photocopy of an assignment or repossession order, facsimile copy of an assignment or repossession order, or electronic format of an assignment or repossession order shall have the same force and effect as an original written assignment or repossession order. (c) “Bureau” means the Bureau of Security and Investigative Services. (d) “Chief” means the Chief of the Bureau of Security and Investigative Services. (e) “Collateral” means any specific vehicle, trailer, boat, recreational vehicle, motor home, appliance, or other property that is subject to a security agreement. (f) “Combustibles” means any substances or articles that are capable of undergoing combustion or catching fire, or that are flammable, if retained. (g) “Dangerous drugs” means any controlled substances as defined in Chapter 2 (commencing with Section 11053) of Division 10 of the Health and Safety Code. (h) “Deadly weapon” means and includes any instrument or weapon of the kind commonly known as a firearm. (i) “Debtor” means any person obligated under a security agreement. (j) “Department” means the Department of Consumer Affairs. (k) “Director” means the Director of Consumer Affairs. (l) “Electronic format” includes, but is not limited to, a text message, email, or internet posting. (m) “Health hazard” means any personal effects that if retained would produce an unsanitary or unhealthful condition, or which might damage other personal effects. (n) “Legal owner” means a person holding any of the following: (1) A security interest in any collateral if the collateral is subject to a security agreement. (2) A lien against any collateral. (3) An assignment or a repossession order. (4) An interest in any collateral that is subject to a lease agreement or on an assignment or repossession order as the legal owner. (o) “Licensee” means an individual, partnership, limited liability company, or corporation licensed under this chapter as a repossession agency. (p) “Multiple licensee” means a repossession agency holding more than one repossession license under this chapter, with one fictitious trade style and ownership, conducting repossession business from additional licensed locations other than the location shown on the original license. (q) “Person” includes any individual, partnership, limited liability company, or corporation. (r) “Personal effects” means any property that is not the property of the legal owner and is not listed on the repossession assignment. (s) “Private building” means and includes any dwelling, outbuilding, or other enclosed structure. (t) “Qualified certificate holder” or “qualified manager” is a person who possesses a valid qualification certificate in accordance with the provisions of Article 5 (commencing with Section 7504) and is in active control or management of, and who is a director of, the licensee’s place of business. (u) “Registered owner” means the individual listed in the records of the Department of Motor Vehicles, on a conditional sales contract, or on an assignment or a repossession order, as the registered owner. (v) “Registrant” means a person registered under this chapter. (w) “Repossession” means any of the following: (1) When the repossessor gains entry to the collateral. (2) The collateral becomes connected to a tow truck or to a repossessor’s tow vehicle. (3) The repossessor moves the entire collateral present. (4) The repossessor gains control of the collateral. (5) The repossessor disconnects any part of the collateral from any surface where it is mounted or attached. (x) “Secured area” means and includes any fenced and locked area. (y) “Security agreement” means an obligation, pledge, mortgage, chattel mortgage, lease agreement, deposit, or lien, given by a debtor as security for payment or performance of a debt, by furnishing the creditor with a recourse to be used in case of failure in the principal obligation. “Security agreement” also includes a bailment where an employer-employee relationship exists or existed between the bailor and the bailee. (z) “Services” means any duty or labor to be rendered by one person for another. (aa) “Violent act” means any act that results in bodily harm or injury to any party involved during the repossession up until the time the repossessor is back in their vehicle. (ab) The amendments made to this section by Chapter 418 of the Statutes of 2006 shall not be deemed to exempt any person from the provisions of this chapter. (Amended by Stats. 2021, Ch. 416, Sec. 1. (AB 913) Effective January 1, 2022.) - 7500.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 1. General Provisions [7500 - 7500.3] ( Article 1 added by Stats. 1981, Ch. 1138, Sec. 11. )
A licensed repossession agency may transact business only as an independent contractor, and it may not let anyone other than the qualified certificate holder or the agency’s owner or officer manage or control covered business, except as allowed by Section 7503.3.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 1. General Provisions [7500 - 7500.3] ( Article 1 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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 only transact business with another person or entity as an independent contractor. (c) A repossession agency shall not allow a person or entity other than the qualified certificate holder, as provided in Section 7505.1, or the owner or officer of the repossession agency, to manage the day-to-day operations, operate, control, or transact business covered by this act, except as provided in Section 7503.3. (Amended by Stats. 2014, Ch. 390, Sec. 1. (AB 2503) Effective September 17, 2014.) - 7500.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 1. General Provisions [7500 - 7500.3] ( Article 1 added by Stats. 1981, Ch. 1138, Sec. 11. )
This section excludes several people and entities from the definition of a repossession agency, and it restricts certain parties from pressuring others to break repossession laws.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 1. General Provisions [7500 - 7500.3] ( Article 1 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7500.3. (a) A repossession agency shall not include any of the following: (1) Any bank subject to the jurisdiction of the Commissioner of Financial Protection and Innovation of the State of California under Division 1 (commencing with Section 99) of the Financial Code or the Comptroller of the Currency of the United States. (2) Any person organized, chartered, or holding a license or authorization certificate to make loans pursuant to the laws of this state or the United States who is subject to supervision by any official or agency of this state or the United States. (3) An attorney at law in performing their duties as an attorney at law. (4) The legal owner of collateral that is subject to a security agreement or a bona fide employee employed exclusively and regularly by the legal owner of collateral that is subject to a security agreement. With regard to collateral subject to registration under the Vehicle Code, the legal owner shall be the legal owner listed on the records of the Department of Motor Vehicles or the seller or lessor named on a valid conditional sales contract or rental or lease agreement if the seller or lessor is a licensed vehicle dealer as defined in Section 285 of the Vehicle Code. (5) An officer or employee of the United States of America, or of this state or a political subdivision thereof, while the officer or employee is engaged in the performance of their official duties. (6) A qualified certificate holder or a registrant when performing services for, or on behalf of, a licensee. (7) A dealer, including its bona fide employees, regularly engaged in the sale of collateral designed primarily for agricultural use, as defined in subdivision (b) of Section 51201 of the Government Code, for use in the care of lawns and gardens, or for use as special construction equipment, as defined in subdivision (b) of Section 565 of the Vehicle Code, or for use in the production, generation, storage, or transmission of mechanical or electric energy, that is subject to a security agreement of the manufacturer or an affiliate of that manufacturer, provided the following requirements are met: (A) The dealer or the secured party maintains adequate records of all repossessions. (B) The dealer or the secured party completes a collateral condition report. (C) The dealer or the secured party records any odometer or hour meter readings. (D) The dealer or the secured party creates records of all transactions pertaining to the sale of the collateral, including, but not limited to, bids solicited and received, cash received, remittances to the seller, and allocation of any moneys not so remitted to appropriate ledger accounts. (E) The dealer removes and stores any personal effects that were taken with the collateral for a minimum of 60 days in a secure manner, completes an inventory of the personal effects, and notes the date that inventory is taken. (F) If personal effects that were taken with the collateral are to be released to someone other than the debtor, the dealer shall request written authorization to do so from the debtor. The dealer may dispose of personal effects after storing them for at least 60 days pursuant to subparagraph (E). (b) Entities described in paragraph (7) of subdivision (a), or a debtor, lienholder, lessor, lessee, registered owner, or an agent thereof shall not by any means, directly or indirectly, expressed or implied, instruct, coerce, or attempt to coerce another person to violate any law, regulation, or rule regarding the recovery of collateral, including, but not limited to, the provisions of this chapter or Section 9609 of the Commercial Code. (Amended by Stats. 2022, Ch. 452, Sec. 1. (SB 1498) Effective January 1, 2023.) - 7501. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director must administer and enforce this chapter, and the Bureau of Security and Investigative Services is placed in the Department of Consumer Affairs under the director’s supervision and control.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7501. There is in the Department of Consumer Affairs a Bureau of Security and Investigative Services. The bureau is under the supervision and control of the director. The director shall administer and enforce the provisions of this chapter. (Amended by Stats. 1993, Ch. 1263, Sec. 7. Effective January 1, 1994.) - 7501.05. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. )
The Bureau of Security and Investigative Services must treat public protection as its top priority when it makes licensing, regulatory, and disciplinary decisions.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7501.05. Protection of the public shall be the highest priority for the Bureau of Security and Investigative Services in exercising its licensing, regulatory, and disciplinary functions. Whenever the protection of the public is inconsistent with other interests sought to be promoted, the protection of the public shall be paramount. (Added by Stats. 2002, Ch. 107, Sec. 30. Effective January 1, 2003.) - 7501.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. )
The Governor must appoint a chief of the bureau, and the chief serves under the director’s direction and supervision.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7501.1. The Governor shall appoint a chief of the bureau at a salary to be fixed in accordance with Section 12080.3 of the Government Code. The chief shall serve under the direction and supervision of the director. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7501.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may delegate chapter powers and duties to the chief, but not authority to act on a hearing officer’s proposed decision after a specified hearing. The chief may delegate chapter powers and duties to specified bureau personnel.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7501.2. Every power and duty granted to or imposed upon the director under this chapter may be delegated to the chief, except that the director may not delegate authority to adopt or otherwise act upon any proposed decision of a hearing officer after a hearing under the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. The chief may delegate any power or duty granted to or imposed upon him or her under this chapter to the deputy chief, to the assistant chief, or to any inspection, investigation, or auditing personnel of the bureau. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7501.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may appoint and set compensation for specified personnel and an assistant chief, and personnel must perform their duties under the chief’s supervision, subject to Section 159.5.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7501.3. The director, in accordance with the State Civil Service Act, and Section 159.5, may appoint and fix the compensation of such clerical, inspection, investigation, and auditing personnel, as well as an assistant chief, as may be necessary to carry out the provisions of this chapter. Except as otherwise provided in Section 159.5, all personnel shall perform their respective duties under the supervision and direction of the chief. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7501.4. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. )
The chief must gather evidence of licensing and rule violations by unlicensed repossession businesses and provide that evidence to local prosecuting officers. With the director’s approval, the chief may require witnesses to attend and may examine people under oath in relation to a licensee or an investigation, examination, or hearing.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7501.4. The chief shall gather evidence of violations of this chapter and of any rule or regulation established pursuant to this chapter by persons engaged in the business of repossession who fail to obtain licenses and shall gather evidence of violations and furnish that evidence to the prosecuting officers of any county or city for the purpose of prosecuting all violations occurring within their jurisdiction. The chief, with the approval of the director, may require the attendance of witnesses and examine under oath all persons whose testimony he or she requires, relative to the affairs of a licensee or to the subject matter of any examination, investigation, or hearing. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7501.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. )
The chief must initiate and conduct investigations into the business and affairs of licensees on the chief’s own motion.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7501.5. It shall be the duty of the chief to initiate and conduct investigations into the business and affairs of licensees on the chief’s own motion. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7501.6. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may make and enforce reasonable rules and regulations for examining and licensing applicants, regulating licensees, and enforcing this chapter to protect the public.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7501.6. The director may establish and enforce such rules and regulations as may be reasonable and necessary for the examination and licensing of applicants, for the conduct of licensees, and for the general enforcement of various provisions of this chapter in the protection of the public. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7501.7. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may issue a citation to a licensee, qualified certificate holder, or registrant found in violation, and the citation can include an abatement order or a fine up to $2,500.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7501.7. If, upon investigation, the director determines that a licensee, a qualified certificate holder, or a registrant is in violation of Section 7508.1, 7508.2, 7508.3, 7508.4, 7508.5, or 7508.6, the director may issue a citation to the licensee, qualified certificate holder, or registrant. The citation shall be in writing and shall describe with particularity the nature of the violation, including specific references to the provision of law determined to have been violated, and shall be delivered by certified mail to the licensee’s, qualified certificate holder’s, or registrant’s address of record. If the citation is issued to the qualified certificate holder or registrant, a copy of the citation shall also be sent by certified mail to the licensee’s address of record. If the director deems it appropriate, the citation may contain an order of abatement fixing a reasonable time for abatement of the violation and may contain assessment of an administrative fine not to exceed two thousand five hundred dollars ($2,500). A citation or fine assessment shall inform the licensee, qualified certificate holder, or registrant that if he or she desires a hearing to contest the finding of a violation, the hearing shall be requested by written notice to the director within 30 days of the issuance of the citation or assessment, as appropriate. Any request for reconsideration received in writing by the director within the 30 days shall stay the 30 days allowed to request a hearing while the director reconsiders the fine assessment. Upon decision, the director shall notify the licensee, qualified certificate holder, or registrant in writing whether the fine assessment has been withdrawn or the fine assessment has been reaffirmed. If the fine assessment has been reaffirmed, the director shall again inform the licensee, qualified certificate holder, or registrant in writing that he or she has 30 days to request a hearing. If a hearing is not requested pursuant to this section, payment of any fine shall not constitute an admission of the violation charged. Hearings shall be held pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. If the licensee, qualified certificate holder, or registrant neither requests a hearing nor pays the assessed fine within 30 days of the assessment, the license, qualification certificate, or registration of the person shall not be renewed pursuant to Section 7503.10 and no registration shall be issued pursuant to Article 7 (commencing with Section 7506) until the assessed fine is paid. Administrative fines collected pursuant to this section shall be deposited in the Private Security Services Fund. (Amended by Stats. 1996, Ch. 624, Sec. 2. Effective January 1, 1997.) - 7501.8. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director must consider specified rehabilitation criteria when deciding denial, suspension, revocation, or reinstatement of a repossessor license, registration, or certificate.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7501.8. (a) When considering the denial of a license, registration, or certificate under Section 7503.5, for which application has been made under this chapter, the director, in evaluating the rehabilitation of the applicant and the applicant’s present eligibility for a license, registration, or certificate, shall consider the following criteria: (1) The nature and severity of the act or crime under consideration as grounds for denial. (2) Evidence of any act committed subsequent to the act or crime under consideration as grounds for denial, which also could be considered as grounds for denial under Section 7503.5. (3) The time that has elapsed since commission of the act or crime referred to in paragraph (1) or (2). (4) The extent to which the applicant has complied with any terms of parole, probation, restitution, or any other sanctions lawfully imposed against the applicant. (5) Evidence, if any, of rehabilitation submitted by the appplicant. (b) When considering the suspension or revocation of a license, registration, or certificate issued under this chapter on the grounds of conviction of a crime, the director, in evaluating the rehabilitation of the person and the person’s present eligibility for a license, registration, or certificate, shall consider the following criteria: (1) Nature and severity of the act or offense. (2) Total criminal record. (3) The time that has elapsed since commission of the act or offense. (4) Whether the licensee has complied with any terms of parole, probation, restitution, or any other sanctions lawfully imposed against the licensee. (5) If applicable, evidence of expungement proceedings pursuant to Section 1203.4 of the Penal Code. (6) Evidence, if any, of rehabilitation submitted by the licensee. (c) When considering a petition for reinstatement of a license, registration, or certificate, the director shall evaluate evidence of rehabilitation, considering those criteria of rehabilitation listed in subdivision (b). (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7501.9. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. )
The bureau must keep its reserve balance no larger than needed for operating expenses and must periodically review fees.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 2. Administration [7501 - 7501.9] ( Article 2 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7501.9. It is the intent of the Legislature, consistent with Section 128.5 of the Business and Professions Code, that the bureau shall not maintain a reserve balance of funds greater than the amount necessary to fund operating expenses of the bureau and that the bureau shall periodically review fees pursuant to this chapter to evaluate the appropriateness of each fee and the regulatory costs associated with each fee. (Added by Stats. 2017, Ch. 429, Sec. 20. (SB 547) Effective January 1, 2018.) - 7502. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. )
A person may not operate a repossession agency activity in this state unless they have a valid repossession agency license or are exempt from licensure.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7502.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. )
Violating this chapter, conspiring to violate it, or knowingly using a nonexempt unlicensed person to repossess collateral is a misdemeanor with fines, jail time, or both. Certain officials may also investigate violations and bring enforcement actions.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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 that person’s 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 Protection and Innovation 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 may 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. (Amended by Stats. 2022, Ch. 452, Sec. 2. (SB 1498) Effective January 1, 2023.) - 7502.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. )
A financial institution or buy-here-pay-here dealer may not knowingly use a nonexempt, unlicensed person to repossess collateral, and doing so is a misdemeanor punishable by a $5,000 fine.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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 Financial Protection and Innovation may designate employees to investigate and report on violations of this section by any of the licensees of their 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. (Amended by Stats. 2022, Ch. 452, Sec. 3. (SB 1498) Effective January 1, 2023.) - 7502.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. )
A person who knowingly falsifies required fingerprints or photographs under this chapter commits a felony.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7502.3. Any person who knowingly falsifies the fingerprints or photographs required by any provision of this chapter is guilty of a felony. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7502.4. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may ask the superior court to temporarily stop a licensee from working in the licensed business or profession if the licensee is violating this chapter and public health, safety, or welfare is at risk.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7502.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. )
Local governments may require repossession agency licensees or registrants to register their names and file a copy of their state ID card, but they may not charge a fee or require an application for that registration.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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. (Amended by Stats. 1995, Ch. 505, Sec. 7. Effective January 1, 1996.) - 7502.6. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. )
A court may stop unlicensed repossession agency business and impose civil fines up to $10,000.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 3. Application of Chapter [7502 - 7502.6] ( Article 3 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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 Security Services 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. (Amended by Stats. 2019, Ch. 377, Sec. 3. (SB 609) Effective January 1, 2020.) - 7503. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
A repossession agency license application must be filed in writing with the bureau, include the original fee, and be signed and completed with required business details. The director may ask for more information, and false statements can lead to a misdemeanor or license denial, suspension, or revocation.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503. An application for a repossession agency license shall be made in writing to, and filed with, the bureau in the form that may be required by the director and shall be accompanied by the original license fee prescribed by this chapter. The director may require the submission of any other pertinent information, evidence, statements, or documents. Every application for a repossession agency license shall be signed by the applicant and state, among other things that may be required, the name of the applicant and the name under which the applicant will do business, the location by number and street and city of the office of the business for which the license is sought, and the usual business hours the business will maintain. An applicant who declares as true any material matter pursuant to this section that he or she knows to be false is guilty of a misdemeanor. The residence address, residence telephone number, and driver’s license number of each licensee, principal owner of each licensee, and any applicant for a license, if requested, shall be confidential pursuant to the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code) and shall not be released to the public. No license shall be issued in any fictitious name which may be confused with or which is similar to any federal, state, county, or municipal governmental function or agency, or in any name which may tend to describe any business function or enterprise not actually engaged in by the applicant, or in any name which is the same as or so similar to that of any existing licensee as would tend to deceive the public, or in any name which would otherwise tend to be deceptive or misleading. The application form shall contain a statement informing the applicant that a false or dishonest answer to a question may be grounds for denial or subsequent suspension or revocation of a repossession agency license. (Amended by Stats. 2002, Ch. 402, Sec. 1. Effective January 1, 2003.) - 7503.05. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
The bureau must require certain repossession-related applicants to complete fingerprint-based state and national criminal history background checks.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.05. (a) The bureau shall require each applicant as a repossession agency licensee, qualified certificate holder, or registrant, as defined in Sections 7500.1 and 7500.2, to undergo a fingerprint-based state and national criminal history background check. (b) Pursuant to subdivision (u) of Section 11105 of the Penal Code, the bureau shall submit to the Department of Justice fingerprint images and related information for each individual applicant, if the applicant is an individual, each partner described in Section 7503.3, if the applicant is a partnership, each officer and owner described in Section 7503.4, if the applicant is a corporation or limited liability company, and each qualified certificate holder described in Section 7500.1. (c) The Department of Justice shall provide a state- and federal-level response pursuant to subdivision (p) of Section 11105 of the Penal Code. (Added by Stats. 2025, Ch. 113, Sec. 19. (SB 160) Effective September 17, 2025.) - 7503.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
Certain license applicants and related business principals must file identification materials, including a recent photo and fingerprints; the bureau may charge up to $3 to process fingerprint cards.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.1. (a) Each individual applicant for examination and each manager, partner of a partnership, and officer of a corporation shall submit with the application, one personal identification form provided by the chief upon which shall appear a photograph taken within one year immediately preceding the date of the filing of the application together with two legible sets of fingerprints, one set of which shall be forwarded to the Federal Bureau of Investigation for purposes of a background check, and a personal description of each person respectively. (b) The bureau may impose a fee not to exceed three dollars ($3) for processing classifiable fingerprint cards submitted by applicants, excluding those submitted into an electronic fingerprint system using electronic fingerprint technology. (Amended by Stats. 1999, Ch. 318, Sec. 3. Effective January 1, 2000.) - 7503.10. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
License renewals require a renewal form, payment of assessed fines and the renewal fee, and the bureau must issue a pocket ID card with a photo.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.10. (a) An original repossession agency license shall expire one year following the date of issuance, unless renewed as provided in this chapter. (b) A renewal repossession agency license shall expire two years following the date of renewal, unless renewed as provided in this chapter. (c) At least 60 days prior to the expiration of the license, the bureau shall mail to the licensee a renewal form prescribed by the director. To renew an unexpired license, the licensee shall complete and mail the renewal form to the bureau, pay any and all fines assessed pursuant to Section 7501.7 and resolved in accordance with the provisions of that section, and pay the renewal fee prescribed by this chapter. (d) Upon the issuance of the initial license or renewal license, the bureau shall issue to the licensee a suitable pocket identification card which includes a photograph of the licensee. The photograph shall be of a size prescribed by the bureau. The card shall contain the name of the licensee’s company. (Amended by Stats. 1999, Ch. 456, Sec. 3. Effective January 1, 2000.) - 7503.11. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
An expired license may be reinstated within one year if the licensee complies with the chapter, applies, and pays any unresolved fines and the reinstatement fee.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.11. An expired license may be reinstated within one year of the date of expiration upon compliance with the provisions of this chapter, application by the licensee, and payment of any and all fines assessed pursuant to Section 7501.7 and not resolved in accordance with the provisions of that section and payment of the reinstatement fee provided by this chapter. Reinstatement of an expired license shall not prohibit the bringing of disciplinary proceedings for any act committed in violation of this chapter during the period the license is expired. (Amended by Stats. 1984, Ch. 1299, Sec. 3.) - 7503.12. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
A suspended repossession agency license can expire and must be renewed under this article, but renewal does not let the licensee do licensed work or any other conduct that violates the suspension order until the license is reinstated.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.12. A suspended repossession agency license is subject to expiration and shall be renewed as provided in this article, but renewal of the license does not entitle the licensee, while the license remains suspended and until it is reinstated, to engage in the licensed activity, or in any other activity or conduct in violation of the order or judgment by which the license was suspended. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7503.13. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
A revoked repossession agency license can expire under this article, but it cannot be renewed. If it is later reinstated after expiration, the licensee must pay a reinstatement fee tied to the last renewal fee plus any delinquency fee.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.13. A revoked repossession agency license is subject to expiration as provided in this article, but it may not be renewed. If it is reinstated after its expiration, the licensee, as a condition precedent to its reinstatement, shall pay a reinstatement fee in an amount equal to the renewal fee in effect on the last regular renewal date before the date on which it is reinstated, plus the delinquency fee, if any, accrued at the time of its revocation. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7503.14. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
A repossession agency license that is not renewed within 10 years after expiration cannot later be renewed, restored, reinstated, or reissued.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.14. (a) A repossession agency license which is not renewed within 10 years after its expiration shall not be renewed, restored, reinstated, or reissued thereafter. (b) The holder of the repossession agency license may obtain a new license only upon compliance with all of the provisions of this chapter relating to the issuance of an original license. (Amended by Stats. 2020, Ch. 354, Sec. 1. (AB 2759) Effective January 1, 2021.) - 7503.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
A license application must include the applicant’s full residence address, disclose whether the applicant has ever used an alias, and be signed and verified by the applicant; if someone else will be in active charge, that person must also be named and sign/verify the application.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.2. If the applicant for license is an individual, the application shall state the full residence address of the applicant and that the applicant is to be personally and actively in charge of the business for which the license is sought, or if any other qualified certificate holder is to be actively in charge of such business, the application shall so state and set forth the name of the person. The application shall also state whether the applicant has ever used an alias. The application shall be subscribed and verified by the applicant and, if any other person is to be actively in charge of the business, the application shall also be subscribed and verified by that person. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7503.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
License applications from copartners must identify the partners, name the person in charge, be signed and verified by the required people, and disclose whether any partner has ever used an alias.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.3. If the applicants for license are copartners, the application shall state the true names and addresses of all partners and the name of the partner to be actively in charge of the business for which the license is sought. If a qualified certificate holder other than a partner is to be actively in charge of the business then the application shall state the name and address of that person. The application shall be subscribed and verified by all of the partners and, if any other person is to be actively in charge of the business, the application shall also be subscribed and verified by that person. The application shall also state whether any of the partners has ever used an alias. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7503.4. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
This section requires corporation and LLC applicants for a repossessor license to disclose specified ownership and management details in the application, and it bars LLCs from being licensed as repossession agencies.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.4. (a) If the applicant for a license is a corporation, the application shall state the true names and complete residence addresses of all officers. The application shall also state the name and address of the person to be actively in charge of the business for which the license is sought. The application shall be subscribed and verified by a duly authorized officer of the applicant and by the qualified certificate holder thereof. The application shall also state whether any of the officers has ever used an alias. (b) If the applicant for a license is a limited liability company, the application shall state the true names and complete residence addresses of all owners and the name and address of the owner to be actively in charge of the business for which the license is sought. If a qualified certificate holder, other than an owner, is to be actively in charge of the business, then the application shall state the name and address of that person. The application shall be subscribed and verified by each owner and, if any other person is to be actively in charge of the business, the application shall also be subscribed and verified by that person. The application shall also state whether any of the owners has ever used an alias. (c) Nothing in this chapter permits a domestic or foreign limited liability company to be licensed as a repossession agency. (Amended by Stats. 1995, Ch. 505, Sec. 8. Effective January 1, 1996.) - 7503.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may deny a repossessor license if listed misconduct is found, and any denial must be written and explain the basis.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.5. If the director determines that the applicant, if an individual, or if the applicant is a person other than an individual, that its manager and any of its officers and partners have committed any of the following acts, the director may deny the license: (a) Committed any act, which, if committed by a licensee, would be a ground for the suspension or revocation of a license under this chapter. (b) Committed any act constituting dishonesty or fraud. (c) Been refused a license under this chapter or had a license revoked. (d) Been an officer, partner, or manager of any person who has been refused a license under this chapter or whose license has been revoked. (e) Committed, or aided and abetted the commission of, any act for which a license is required by this chapter while unlicensed. (f) Knowingly made any false statement in his or her application. (g) Committed any act or crime constituting grounds for denial of licensure under Section 480. The denial shall be in writing and shall describe the basis for the denial. The denial shall inform the applicant that if he or she desires a hearing to contest the denial, the hearing shall be requested of the director, in writing, within 30 days of the issuance of the denial. When a hearing is held under this section, it shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (Amended by Stats. 1985, Ch. 876, Sec. 10.) - 7503.6. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
A license may not be issued to an applicant while a disciplinary action previously filed by the director against the person, applicant, partner, or officer is still pending final disposition.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.6. No license may be issued to any applicant pending final disposition of any disciplinary action by the director previously filed against the person or applicant or against any partner or officer. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7503.7. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director determines the form and content of the license, following Section 164.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.7. The form and content of the license shall be determined by the director in accordance with Section 164. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7503.8. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
A repossession agency license, duplicate license, and any current renewal license must be displayed conspicuously at the business location on record with the bureau.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.8. Each repossession agency license or duplicate license, together with current renewal license, if any, shall at all times be conspicuously displayed at the place of business on record with the bureau. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7503.9. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. )
A repossession agency license generally cannot be assigned, except in the limited case described here.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 4. Licenses [7503 - 7503.14] ( Article 4 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7503.9. (a) Except as provided in this section, a repossession agency license issued under this chapter is not assignable. (b) A repossession agency may apply to the chief for consent and, upon receipt of the consent and payment of the processing fee authorized by Section 7511, may assign a license to another business entity as long as the direct and indirect owners of the assignor own all of the assignee immediately after the assignment. (Amended by Stats. 1995, Ch. 505, Sec. 9. Effective January 1, 1996.) - 7504. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. )
Applicants for a repossessor qualification certificate must meet age, experience, application, photo/fingerprint, exam, and fee requirements, and false material statements can be a misdemeanor.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7504. (a) Except as otherwise provided in this chapter, an applicant for a qualification certificate shall comply with all of the following: (1) Be at least 18 years of age. (2) Have been, for at least two years of lawful experience, during the five years preceding the date on which his or her application is filed, a registrant or have had two years of lawful experience in recovering collateral within this state. Lawful experience means experience in recovering collateral as a registrant pursuant to this chapter or as a salaried employee of a financial institution or vehicle dealer. Lawful experience does not include any employment performing work other than skip tracing or actual collateral recovery. Two years’ experience shall consist of not less than 4,000 hours of actual compensated work performed by the applicant preceding the filing of an application. An applicant shall certify that he or she has completed the claimed hours of qualifying experience and the exact details as to the character and nature thereof by written certifications from the employer, licensee, financial institution, or vehicle dealer, subject to independent verification by the director as he or she may determine. In the event of the inability of an applicant to supply the written certifications from the employer, licensee, financial institution, or vehicle dealer, in whole or in part, applicants may offer other written certifications from other persons substantiating their experience for consideration by the director. All certifications shall include a statement that representations made are true, correct, and contain no material omissions of fact to the best knowledge and belief of the applicant or the person submitting the certification. An applicant or person submitting the certification who declares as true any material matter pursuant to this paragraph that he or she knows to be false is guilty of a misdemeanor. (3) Complete and forward to the bureau a qualified certificate holder application which shall be on a form prescribed by the director and signed by the applicant. An applicant who declares as true any material matter pursuant to this paragraph that he or she knows to be false is guilty of a misdemeanor. The application shall be accompanied by two recent photographs of the applicant, of a type prescribed by the director, and two classifiable sets of his or her fingerprints. The residence address, residence telephone number, and driver’s license number of each qualified certificate holder or applicant for a qualification certificate, if requested, shall be confidential pursuant to the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code) and shall not be released to the public. (4) Pass the required examination. (5) Pay the required application and examination fees to the bureau. (b) Upon the issuance of the initial qualification certificate or renewal qualification certificate, the bureau shall issue to the certificate holder a suitable pocket identification card which includes a photograph of the certificate holder. The photograph shall be of a size prescribed by the bureau. The card shall contain the name of the licensee with whom the certificate holder is employed. (c) The application form shall contain a statement informing the applicant that a false or dishonest answer to a question may be grounds for denial or subsequent suspension or revocation of a qualification certificate. (Amended by Stats. 2016, Ch. 509, Sec. 2. (AB 1859) Effective January 1, 2017.) - 7504.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may refuse, suspend, or revoke a qualification certificate if the person committed conduct that would justify license denial or discipline under this chapter.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7504.1. The director may refuse to issue a qualification certificate, or may suspend or revoke a previously issued qualification certificate, if the individual has committed any act which, if committed by a licensee, would be grounds for refusing to issue a license, or for the suspension or revocation of a license under this chapter. The denial shall be in writing and shall describe the basis for the denial. The denial shall inform the applicant that if he or she desires a hearing to contest the denial, the hearing shall be requested of the director within 30 days of the issuance of the denial. When a hearing is held under this section, it shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7504.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. )
Examinations and reexaminations must be held at least once every other month, and the chief sets the places and dates.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7504.2. Examinations and reexaminations shall be given at least once every other month at such places and on such specific dates as the chief may from time to time determine and fix. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7504.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. )
To qualify for an initial examination, an applicant must complete and file the application and fee at the bureau in Sacramento at least 30 days before the next scheduled exam.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7504.3. In order to be eligible for an initial examination, an applicant shall have completed and filed his or her application together with the application fee prescribed by this chapter in the office of the bureau in Sacramento, California, not later than 30 days prior to the next scheduled examination date. Applicants whose applications are not completed and filed within the time limits of this section may, at the discretion of the bureau, be scheduled for the first examination next following the scheduled examination. (Amended by Stats. 1990, Ch. 1015, Sec. 3.) - 7504.4. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. )
An applicant who fails an initial examination cannot take another one unless they pay the reexamination fee and file a completed reexamination application on time.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7504.4. If an applicant fails to pass an initial examination, the applicant shall not be eligible for a subsequent examination except upon payment of the reexamination fee for each subsequent examination, accompanied by a completed application for reexamination filed within the time limits and conditions relating to applications for initial examinations provided in Section 7504.3. (Amended by Stats. 2021, Ch. 416, Sec. 2. (AB 913) Effective January 1, 2022.) - 7504.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. )
All applicants must be examined on their competency, experience, and qualifications, and the chief may take testimony from anyone under oath.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7504.5. All applicants shall be examined concerning their competency, experience, and qualifications by the chief and the chief may take testimony of anyone in regard thereto under oath. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7504.6. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. )
If an applicant does not finish the application within one year after filing, or does not take the examination within one year after becoming eligible, the application is treated as abandoned.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7504.6. If an applicant fails to complete his or her application within one year after it has been filed, or fails to take the examination within a one-year period after becoming eligible therefor, the application shall be considered to be abandoned. An application submitted subsequent to the abandonment of a former application shall be treated as a new application. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7504.7. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. )
Qualification certificates follow the repossession agency license renewal rules, and initial and renewal certificates expire after one year and two years respectively unless renewed.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7504.7. (a) Except as provided in this section, every qualification certificate issued or renewed under this chapter is subject to the same renewal provisions that apply to a repossession agency license as set forth in Sections 7503.10, 7503.11, 7503.12, 7503.13, and 7503.14. (b) An initial qualification certificate shall expire one year following the date of issuance, unless renewed as provided in this chapter. (c) A renewal qualification certificate shall expire two years following the date of renewal, unless renewed as provided in this chapter. (Amended by Stats. 2019, Ch. 377, Sec. 4. (SB 609) Effective January 1, 2020.) - 7504.8. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. )
A person may work as a qualified certificate holder before receiving the qualification certificate if the bureau has approved them and they carry the required approval printout and valid picture ID.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 5. Examination [7504 - 7504.8] ( Article 5 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7504.8. A person may work as a qualified certificate holder pending receipt of the qualification certificate if he or she has been approved by the bureau and carries on his or her person a hardcopy printout of the bureau’s approval from the bureau’s Internet Web site and a valid picture identification. If a qualification certificate is lost, damaged, or destroyed, a certificate holder may continue to operate by carrying on his or her person a hardcopy printout or electronic copy of the bureau’s approval of the certificate from the bureau’s Internet Web site and a valid picture identification. (Added by Stats. 2011, Ch. 432, Sec. 19. (SB 944) Effective January 1, 2012.) - 7505. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 6. Offices [7505 - 7505.5] ( Article 6 added by Stats. 1981, Ch. 1138, Sec. 11. )
A repossession business licensee must get a separate license for each extra location or fictitious trade style and must not present the business under unlicensed names or addresses.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 6. Offices [7505 - 7505.5] ( Article 6 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7505. A licensee desiring to operate a repossession business at a location other than the address shown on his or her license shall apply and qualify for a license for each additional location. A licensee desiring to operate a repossession business under one or more fictitious trade styles shall apply and qualify for a license for each fictitious trade style. No licensee shall indicate, or cause to be indicated, in any printed matter, or in any directory or listing, that he or she conducts a repossession business under any name, or at any address, other than the names and addresses for which he or she is licensed. An application for a license for an additional location or an additional trade style shall be in the same form, and the applicant shall meet the same requirements, as for an original license. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7505.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 6. Offices [7505 - 7505.5] ( Article 6 added by Stats. 1981, Ch. 1138, Sec. 11. )
A repossession agency office must be under the active charge of a qualified certificate holder.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 6. Offices [7505 - 7505.5] ( Article 6 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7505.1. Every office licensed as a repossession agency shall be under the active charge of a qualified certificate holder. Nothing in this chapter prohibits a licensee from having more than one qualified certificate holder in an office. (Amended by Stats. 2009, Ch. 322, Sec. 3. (AB 515) Effective January 1, 2010.) - 7505.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 6. Offices [7505 - 7505.5] ( Article 6 added by Stats. 1981, Ch. 1138, Sec. 11. )
This section requires prompt written notice to the bureau when an in-charge qualified certificate holder stops serving, and it sets rules for temporary continuation, suspension, reinstatement, and family succession of a repossession agency license.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 6. Offices [7505 - 7505.5] ( Article 6 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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 that 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 fails 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 the case of the death of a person licensed as an individual, an immediate family member shall be entitled to continue the business under the same license for 120 days following the death of the licensee. Except as provided in subdivision (c), at the end of the 120-day period, the license shall be automatically canceled. (c) (1) (A) Except as provided in subparagraph (B), in the case of the death of a person licensed as an individual, an immediate family member shall be granted a license to continue the business under the same license number and business name if the immediate family member submits a written request and an initial application and application fee to the bureau within 120 days following the death of the licensee. (B) If two or more immediate family members submit separate written requests pursuant to this paragraph to continue the license, the bureau shall grant the license to an immediate family member only if a court order issued within 120 days following the death of the licensee gives ownership of the asset clearly and unequivocally to that immediate family member. (2) The immediate family member requesting the continuance of the license pursuant to this subdivision shall be subject to all of the requirements of this chapter, including the provisions of Section 7503.5. (d) 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. (e) A license extended under this section is subject to all other provisions of this chapter. (f) For purposes of this section, “immediate family member” means a spouse, father, mother, brother, sister, son, daughter, granddaughter, or grandson of the deceased licensee who submits proof of that relationship. (Amended by Stats. 2020, Ch. 354, Sec. 2. (AB 2759) Effective January 1, 2021.) - 7505.4. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 6. Offices [7505 - 7505.5] ( Article 6 added by Stats. 1981, Ch. 1138, Sec. 11. )
A person may not be in charge of a licensed office if they have ever had a license revoked or suspended, were denied registration under Article 7, or previously held certain roles in a repossession agency whose license was revoked for cause.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 6. Offices [7505 - 7505.5] ( Article 6 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7505.4. Except as herein otherwise provided, no person shall be in charge of any licensed office if the person has ever had a license revoked or suspended or has ever been denied registration pursuant to Article 7 (commencing with Section 7506); or if the person was a partner, managing employee, or officer, of a repossession agency the license of which has been revoked for cause. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7505.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 6. Offices [7505 - 7505.5] ( Article 6 added by Stats. 1981, Ch. 1138, Sec. 11. )
An office’s active manager must hold a qualification certificate, display the certificate and renewal certificate below the repossession agency’s license, and stay responsible for no more than two licensed locations.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 6. Offices [7505 - 7505.5] ( Article 6 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7505.5. The person deemed to be actively in charge of an office shall be the holder of a qualification certificate and the certificate, together with the current renewal certificate, shall be prominently displayed below the repossession agency’s license. The person shall be in charge of not more than two licensed locations. The person shall share equally with the licensee the responsibility for the conduct of the business and the personnel of the licensed agency or agencies, if more than one agency is licensed at that location. This section shall not apply to any licensee who notifies the bureau in writing that the licensee is not conducting any business, but wishes to maintain a current license status with the bureau. When the licensee resumes conducting business, the licensee shall so inform the bureau in writing within 30 days. (Amended by Stats. 2009, Ch. 307, Sec. 79. (SB 821) Effective January 1, 2010.) - 7506.10. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. )
Registrations expire on a set schedule and must be renewed by filing the renewal form and required fees; late renewal can be barred, and unpaid fines must be cleared first.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7506.10. (a) Every initial registration shall expire one year following the date of issuance, unless renewed as provided in this section. A renewal registration shall expire two years following the date of renewal, unless renewed as provided in this section. (b) At least 60 days prior to the expiration, the bureau shall mail a renewal form to the registrant at the licensee’s place of business. A registrant who desires to renew their registration shall forward to the bureau for each registration the properly completed renewal form obtained from the bureau, with the renewal fee prescribed by this chapter, for renewal of their registration. Until the registration renewal certificate is issued, a registrant may continue to work with a temporary registration renewal certificate on a secure form prescribed by the chief and issued by the qualified certificate holder that has been embossed by the bureau with the state seal for a period not to exceed 120 days from the date of expiration of the registration. (c) A licensee shall provide to their registrants information regarding procedures for renewal of registration. (d) A registration that is not renewed within 60 days after its expiration may not be renewed. If the registration is renewed within 60 days after its expiration, the registrant, as a condition precedent to renewal, shall pay the renewal fee and also pay the delinquency fee prescribed in this chapter. Registrants working with expired registrations shall pay all accrued fees and penalties prior to renewal or reregistration. (e) Upon renewal, evidence of renewal, as the director may prescribe, shall be issued to the registrant. If evidence of renewal has not been delivered to the registrant prior to the date of expiration, the registrant may present evidence of renewal to substantiate continued registration for a period not to exceed 60 days after the date of expiration or a temporary registration renewal certificate, as described in subdivision (b). (f) A registration shall not be renewed until any and all fines assessed pursuant to this chapter and not resolved in accordance with this chapter have been paid. (Amended by Stats. 2022, Ch. 511, Sec. 39. (SB 1495) Effective January 1, 2023.) - 7506.11. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. )
Registrants must tell the chief in writing within 30 days of employment or contract changes or address changes, and the licensee must also notify the chief and handle the registration card when the registrant stops working for the licensee.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7506.11. (a) Each registration is valid until the registrant ceases performing services for the licensee indicated on the registration card or until the registration expires. (b) Each person registered under this article shall notify the chief, in writing, within 30 days of any change in employment or contract status with a licensee. If the person ceases to be employed by or perform services for a licensee, the licensee shall notify the chief, in writing, within 30 days. The registered individual shall surrender his or her registration card to the licensee. The licensee shall forward the registration card to the chief. If at some subsequent time the person is again employed or retained by a licensee, he or she shall apply for reregistration in the manner provided in this article. (c) Each registrant, while registered, shall notify the chief, in writing, within 30 days after any change in his or her residence address. (Amended by Stats. 1999, Ch. 456, Sec. 8. Effective January 1, 2000.) - 7506.12. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. )
Proceedings under this article must follow the referenced Government Code chapter, and the director has all powers granted there.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7506.12. The proceedings under this article shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7506.13. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. )
A licensee must keep track of whether registrants are properly registered, may not employ or contract with unregistered or lapsed registrants, and the bureau must keep accurate registration records.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7506.13. (a) The licensee shall at all times be responsible for ascertaining that his or her registrants are currently registered or have made proper application for registration as provided in this article. The licensee may not have in his or her employment or under contract a person subject to registration who has not registered within the time required or whose registration has expired or been revoked, denied, suspended, or canceled. (b) The bureau shall keep current and accurate records of all persons registered under this article. (Amended by Stats. 1999, Ch. 456, Sec. 9. Effective January 1, 2000.) - 7506.14. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. )
If the chief thinks an applicant’s continued work may endanger public safety, the licensee must suspend that applicant from that work until the chief notifies the licensee in writing within 60 days that the registration was approved or denied.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7506.14. If the chief determines that continued services by an applicant for registration in his or her current capacity may present undue hazard to public safety, the licensee, upon proper notification from the chief, shall suspend the applicant from rendering services in that capacity until the licensee is notified in writing by the chief within 60 days from the date of notification of suspension that the applicant’s registration has been approved or denied. (Amended by Stats. 1999, Ch. 456, Sec. 10. Effective January 1, 2000.) - 7506.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. )
Certain new employees or contractors of a licensee or multiple licensee must file a registration application with the chief within 15 working days, applicants must be at least 18, and false material statements can be a misdemeanor.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7506.3. Except as otherwise provided in this article, every person entering the employ of, or contracting with, a licensee or multiple licensee after the effective date of this article shall immediately complete an application for an initial registration or a reregistration and file the appropriate application with the chief within 15 working days after the commencement of employment or contracted services for the licensee or multiple licensee for whom the applicant is employed or contracted. Applicants for registration must be at least 18 years of age. An applicant who declares as true any material matter pursuant to this section that he or she knows to be false is guilty of a misdemeanor. (a) An initial registration application shall be required of those persons who have not previously submitted an application for registration, or been registered as a registrant. (b) A reregistration application shall be required of those persons who have previously submitted or been registered as a registrant. (c) No registrant of a multiple licensee shall be required to file more than one application for registration or reregistration for each multiple licensee. (d) The application form shall contain a statement informing the applicant that a false or dishonest answer to a question may be grounds for denial or subsequent suspension or revocation of a registration or reregistration. (Amended by Stats. 2002, Ch. 402, Sec. 4. Effective January 1, 2003.) - 7506.4. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. )
Applications for an initial registration or reregistration must be filed on a form prescribed by the director and must include the fee in Section 7511.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7506.4. The application for an initial registration or a reregistration under this article shall be on a form prescribed by the director and shall be accompanied by the fee provided for in Section 7511. (Amended by Stats. 1984, Ch. 1245, Sec. 5. Effective September 18, 1984.) - 7506.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. )
Applications must be verified and must include specified personal, employment, photograph, and fingerprint information; the bureau may charge up to $3 to process fingerprint cards.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7506.5. All information obtained on the application shall be confidential pursuant to the Information Practices Act (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code) and shall not be released to the public except for the registrant’s full name, the licensee’s name and address, and the registration number. The application shall be verified and shall include: (a) The full name, residence address, residence telephone number, date and place of birth, and driver’s license number of the applicant or registrant. (b) A statement listing any and all names used by the applicant or registrant, other than the name by which he or she is currently known. If the applicant or registrant has never used a name other than his or her true name, this fact shall be set forth in the statement. (c) The name and address of the licensee and the date the employment or contract commenced. (d) The title of the position occupied by the applicant or registrant and a description of his or her duties. (e) Two recent photographs of the applicant or registrant, of a type prescribed by the chief, and two classifiable sets of his or her fingerprints, one set of which shall be forwarded to the Federal Bureau of Investigation for purposes of a background check. (f) The bureau may impose a fee not to exceed three dollars ($3) for processing classifiable fingerprint cards submitted by applicants, excluding those submitted into an electronic fingerprint system using electronic fingerprint technology. (Amended by Stats. 1999, Ch. 456, Sec. 6.5. Effective January 1, 2000.) - 7506.6. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. )
Qualified certificate holders who comply with the chapter’s other provisions do not have to register under this article.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7506.6. Qualified certificate holders who comply with other provisions of this chapter are not required to register under this article. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7506.7. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. )
Certain licensee employees do not have to register under this article if they work only in specified office-type tasks.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7506.7. Employees of a licensee who are engaged exclusively in stenographic, typing, filing, clerical, in-office skip tracing, or other office activities are not required to register under this article. (Amended by Stats. 1995, Ch. 505, Sec. 13. Effective January 1, 1996.) - 7506.8. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may refuse, suspend, or revoke registration in specified cases, and a denial must be written and explain the reason.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7506.8. (a) The director may refuse to register any applicant if the individual has failed to pay any or all fines assessed pursuant to Section 7501.7 and not resolved in accordance with that section, or has committed any act that, if committed by a licensee, would be grounds for refusing to issue a license or for the suspension or revocation of a license under this chapter, or has committed acts or crimes constituting grounds for denial of a license under Section 480. The denial shall be in writing and shall describe the basis for the denial. The denial shall inform the applicant that if he or she desires a hearing to contest the denial, the hearing shall be requested of the director, in writing, within 30 days of the issuance of the denial. When a hearing is held under this section, it shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (b) The director may suspend or revoke a registration if the registrant has committed any act that, if committed by a licensee, would be grounds for refusing to issue a license or for the suspension or revocation of a license under this chapter. (Amended by Stats. 1995, Ch. 505, Sec. 14. Effective January 1, 1996.) - 7506.9. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. )
This section requires the chief and department/bureau to issue registration cards in specified situations, lets applicants request an enhanced card or a photograph, and requires people doing licensable work to carry or display proof of registration.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 7. Registration [7506.3 - 7506.14] ( Article 7 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7506.9. (a) Upon the issuance of the initial registration, reregistration, or renewal, the chief shall issue to the registrant a suitable pocket identification card. At the request of the registrant, the identification card may include a photograph of the registrant. The photograph shall be of a size prescribed by the bureau. The card shall contain the name of the licensee with whom the registrant is registered. The applicant may request to be issued an enhanced pocket card that shall be composed of durable material and may incorporate technologically advanced security features. The bureau may charge a fee sufficient to reimburse the department for costs for furnishing the enhanced pocket card. The fee charged may not exceed the actual cost for system development, maintenance, and processing necessary to provide the service, and may not exceed six dollars ($6). If the applicant does not request an enhanced card, the department shall issue a standard card at no cost to the applicant. (b) Until the registration certificate is issued or denied, a person may be assigned to work with a temporary registration on a secure form prescribed by the chief, and issued by the qualified certificate holder, for a period not to exceed 120 days from the date the employment or contract commenced, provided the person signs a declaration under penalty of perjury that he or she has not been convicted of a felony or committed any other act constituting grounds for denial of a registration pursuant to Section 7506.8 (unless he or she declares that the conviction of a felony or the commission of a specified act or acts occurred prior to the issuance of a registration by the chief and the conduct was not the cause of any subsequent suspension or termination of a registration), and that he or she has read and understands the provisions of this chapter. (c) The chief shall issue an additional temporary registration for not less than 60 days nor more than 120 days, if the chief determines that the investigation of the applicant will take longer to complete than the initial temporary registration time period. (d) No person shall perform the duties of a registrant for a licensee unless the person has in his or her possession a valid repossessor registration card, a hardcopy printout or electronic copy of the bureau’s approval from the bureau’s Internet Web site, which may include an easily legible electronic screenshot of that information, or evidence of a valid temporary registration or registration renewal as described in subdivision (b) or (e) of this section or subdivision (f) of Section 7506.10. Every person, while engaged in any activity for which licensure is required, shall display his or her valid pocket card, as provided by regulation. (e) A person may work as a registrant pending receipt of the registration card if he or she has been approved by the bureau and carries on his or her person a hardcopy printout or electronic copy of the bureau’s approval from the bureau’s Internet Web site, which may include an easily legible electronic screenshot of that information, and a valid picture identification. (Amended by Stats. 2015, Ch. 740, Sec. 3. (AB 281) Effective January 1, 2016.) - 7507. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
A licensee must notify the bureau within 30 days of changes to corporate officers or the addition of partners, and new officers and partners must submit applications on forms set by the director.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507. A licensee shall notify the bureau within 30 days of any change of its corporate officers or of the addition of any partners. Applications, on forms prescribed by the director, shall be submitted by all new officers and partners. The director may suspend or revoke a license issued under this chapter if the director determines that a new officer or partner has committed any act that constitutes grounds for the denial of a license pursuant to Section 7503.5. (Amended by Stats. 2000, Ch. 568, Sec. 92. Effective January 1, 2001.) - 7507.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
A licensee or qualified certificate holder must notify the bureau of any address change within 30 days.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.1. A licensee or a qualified certificate holder shall, within 30 days after such change, notify the bureau of any change of his or her address. The principal place of business may be at a residence or at a business address, but it shall be the place at which the licensee maintains a permanent office. (Amended by Stats. 1984, Ch. 1299, Sec. 5.) - 7507.10. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
A licensee must give the debtor a notice of seizure after repossessing collateral, and the notice must include specified contact details, disclosures, and storage-charge information.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.10. (a) A licensee shall serve a debtor with a notice of seizure as soon as possible after the recovery of collateral and not later than 48 hours, except that if the 48-hour period encompasses a Saturday, Sunday, or postal holiday, the notice of seizure shall be provided not later than 72 hours or, if the 48-hour period encompasses a Saturday or Sunday and a postal holiday, the notice of seizure shall be provided not later than 96 hours, after the repossession of collateral. The notice shall include all of the following: (1) The name, address, and telephone number of the legal owner to be contacted regarding the repossession. (2) The name, address, and telephone number of the repossession agency to be contacted regarding the repossession. (3) A statement printed on the notice containing the following: “Repossessors are regulated by the Bureau of Security and Investigative Services, Department of Consumer Affairs, Sacramento, CA. Repossessors are required to provide you, not later than 48 hours after the recovery of collateral, with an inventory of personal effects or other personal property recovered during repossession unless the 48-hour period encompasses a Saturday, Sunday, or a postal holiday, then the inventory shall be provided no later than 96 hours after the recovery of collateral.” (4) A disclosure that “Damage to a vehicle during or subsequent to a repossession and only while the vehicle is in possession of the repossession agency and which is caused by the repossession agency is the liability of the repossession agency. A mechanical, electrical, or tire failure, or the loss of, or any damage to, or as a result of, or caused by, any aftermarket parts and accessories not in compliance with Section 24008 of the Vehicle Code shall not be the responsibility of the repossession agency unless the failure, damage, or loss is due to the negligence of the repossession agency.” (5) If applicable, a disclosure that “Environmental, Olympic, special interest, or other license plates issued pursuant to Article 8 (commencing with Section 5000), Article 8.4 (commencing with Section 5060) or Article 8.5 (commencing with Section 5100) of Chapter 1 of Division 3 of the Vehicle Code that remain the personal effects of the debtor will be removed from the collateral and inventoried, and that if the plates are not claimed by the debtor within 60 days, they will be destroyed.” (6) A disclosure of the charges payable by the debtor to the repossession agency for the storage of the collateral and personal effects from the date of repossession until release of the property from storage. (b) The notice under subdivision (a) may be given by regular mail addressed to the current address of the debtor, if known, or by personal service, at the option of the repossession agency. (Amended by Stats. 2024, Ch. 484, Sec. 5. (SB 1454) Effective January 1, 2025.) - 7507.11. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
A written report to a client must be submitted by the licensee, the qualified certificate holder, or someone authorized by them, and the person submitting it must use diligence to verify that the report’s facts and information are true and correct.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.11. Any written report to a client shall be submitted by the licensee, the qualified certificate holder, or a person authorized by one or either of them, and the person submitting the report shall exercise diligence in ascertaining whether or not the facts and information in the report are true and correct. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7507.115. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
A licensee may not appraise or determine the value of collateral, but may complete a condition report that gives only a general assessment.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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 complete a condition report that makes a general assessment of the collateral. (2) A condition report does not include all damage or missing parts. (3) A condition report shall include the following statement: “In accordance with Section 7507.115 of the Business and Professions Code, this condition report is a general assessment of the collateral and does not include all damage or missing parts.” (Amended by Stats. 2015, Ch. 740, Sec. 6. (AB 281) Effective January 1, 2016.) - 7507.12. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
For vehicle collateral covered by the Vehicle Code, repossession is complete when one of several listed events happens, and only the legal owner may direct a repossessor to release a vehicle without legal authority.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.12. (a) With regard to collateral subject to registration under the Vehicle Code, a repossession is complete if any of the following occurs: (1) The repossessor gains entry to the collateral. (2) The collateral becomes connected to a tow truck or the repossessor’s tow vehicle, as those terms are defined in Section 615 of the Vehicle Code. (3) The repossessor moves the entire collateral present. (4) The repossessor gains control of the collateral. (b) No person other than the legal owner may direct a repossessor to release a vehicle without legal authority to do so. (Amended by Stats. 2013, Ch. 340, Sec. 4. (AB 791) Effective January 1, 2014.) - 7507.125. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
Repossessors may use or take certain attached personal effects, and may remove locking or security devices on collateral, when necessary and safe; the first week’s storage fee for covered personal effects cannot be charged.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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. (Added by renumbering Section 7505.2 by Stats. 2014, Ch. 390, Sec. 3. (AB 2503) Effective September 17, 2014.) - 7507.13. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
A licensed repossession agency must give a legal owner specified copies of this section and related provisions by January 31 each year. The section also bars mutual coercion to break recovery laws and gives both sides indemnity and limited liability rules.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.13. (a) A licensed repossession agency is not liable for the act or omission of a legal owner, debt collector, debtor, lienholder, lessor, lessee, or registered owner, or an agent of any of them, in making an assignment or repossession order to it or for accepting an assignment or repossession order from any legal owner, debt collector, debtor, lienholder, lessor, lessee, or registered owner, or an agent of any of them, and is entitled to indemnity from the legal owner, debt collector, debtor, lienholder, lessor, lessee, or registered owner for any loss, damage, cost, or expense, including court costs and attorney’s fees, that it may reasonably incur as a result thereof. Nothing in this subdivision limits the liability of any person for his or her tortious conduct. (b) The legal owner, debt collector, debtor, lienholder, lessor, lessee, or registered owner, or the agent of any of them, is not liable for any act or omission by a licensed repossession agency, or its agent, in carrying out an assignment or repossession order and is entitled to indemnity from the repossession agency for any loss, damage, cost, or expense, including court costs and attorney’s fees, that the legal owner, debt collector, debtor, lienholder, lessor, lessee, or registered owner, or the agent of any of them, may reasonably incur as a result thereof. Nothing in this subdivision limits the liability of any person for his or her tortious conduct. (c) The legal owner, debtor, lienholder, lessor, lessee, or registered owner, or the agent of any of them, is not guilty of a violation of Section 7502.1 or 7502.2 if, at the time of the assignment or repossession order, the party making the assignment or repossession order has in its possession a copy of the repossessor’s current, unexpired repossession agency license, and a copy of the current, unexpired repossession agency’s qualified manager’s certificate, and does not have actual knowledge of any order of suspension or revocation of the license or certificate. (d) Neither a licensed repossession agency nor a legal owner, debtor, lienholder, lessor, lessee, or registered owner, or an agent of any of them may, by any means, direct or indirect, express or implied, instruct or attempt to coerce the other to violate any law, regulation, or rule regarding the recovery of any collateral, including, but not limited to, the provisions of this chapter or Section 9609 of the Commercial Code. (e) A licensed repossession agency, at least annually, on or before January 31 of each year, shall provide a legal owner from which the agency accepts an assignment or repossession order with a copy of this section, Sections 7500.2, 7507.4, 7507.115, 7507.12, and 7507.125 of this code, and Section 28 of the Vehicle Code. (Amended by Stats. 2016, Ch. 509, Sec. 4. (AB 1859) Effective January 1, 2017.) - 7507.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
Licensees must keep records for each registrant and provide them to the bureau on request.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.2. (a) A licensee is responsible for those actions that are performed in violation of this chapter by his or her registrants, including his or her manager, when acting within the course and scope of his or her employment or contract. (b) Each licensee shall maintain a file or record of the name, address, commencing date of employment or retention, and position of each registrant, and the date of termination of the employment or contract when a registrant is terminated. The file and records, together with usual compensation records, shall be available for inspection by the bureau, and copies thereof, and information pertaining thereto or contained therein, shall be submitted to the bureau upon request. (Amended by Stats. 1999, Ch. 456, Sec. 11. Effective January 1, 2000.) - 7507.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
A repossession agency must keep adequate transaction records, retain them for at least four years, and make records and storage areas available to the bureau on demand.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.3. A repossession agency shall be required to keep and maintain adequate records of all transactions, including, but not limited to, assignment or repossession order forms; vehicle report of repossession required by Section 28 of the Vehicle Code; vehicle condition reports, including odometer readings, if available; personal effects inventory; notice of seizure; and records of all transactions pertaining to the sale of collateral that has been repossessed, including, but not limited to, bids solicited and received, cash received, deposits made to the trust account, remittances to the seller, and allocation of any moneys not so remitted to appropriate ledger accounts. 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 or repossession order form may be an original, a photocopy, a facsimile copy, or a copy stored in an electronic format. (Amended by Stats. 2016, Ch. 509, Sec. 3. (AB 1859) Effective January 1, 2017.) - 7507.4. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
A licensed repossession agency or its registrants must not demand payment instead of repossessing, and must not sell collateral recovered under this chapter.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.4. A licensed repossession agency or its registrants shall not make demand for payment in lieu of repossession and shall not sell collateral recovered under this chapter. (Amended by Stats. 2013, Ch. 340, Sec. 3. (AB 791) Effective January 1, 2014.) - 7507.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
Charges for recovering, transporting, or storing collateral are not allowed unless the legal owner agreed to the terms at repossession authorization or later.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.5. No charge shall be made for services incurred in connection with the recovery, transportation, and storage of collateral except under terms agreed to by the legal owner at the time of the repossession authorization or specifically agreed upon at a subsequent time. Repair work, cleaning, or detailing shall not be performed and shall not be charged to the legal owner. (Amended by Stats. 2015, Ch. 740, Sec. 4. (AB 281) Effective January 1, 2016.) - 7507.6. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
Repossessor-related licensees, qualified certificate holders, or registrants must send notices after certain violent or threatened violent acts, and the notice has limited use.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.6. (a) Within seven days after a violent act has occurred involving a licensee, or any officer, partner, qualified certificate holder, registrant, or employee of a licensee, while acting within the course and scope of his or her employment or contract, that results in a police report or bodily harm or bodily injury, the licensee or the licensee’s qualified certificate holder or registrant, shall mail or deliver to the chief a notice concerning the incident upon a form provided by the bureau. (b) Within seven days after the occurrence of a violent act or a threatened violent act involving a licensee, or any officer, partner, qualified certificate holder, registrant, or employee of a licensee, while acting within the course and scope of his or her employment or contract, that results in a police report or bodily harm or bodily injury, the licensee or the licensee’s qualified certificate holder or registrant shall send by certified mail, return receipt requested, a notice containing information about the incident to the person or individual who made the assignment. If the assignor is not the legal owner, the assignor shall notify the legal owner of the contents of the notice. (c) A licensee, qualified certificate holder, or registrant may send the notice set forth in subdivision (b) for a violent act or threatened violent act even if a police report is not made or no bodily harm or bodily injury occurs. Any notice of a threatened violent act provided pursuant to subdivision (b) may only be used to notify a subsequent assignee and not for any collateral purpose. Nothing in this subdivision or subdivision (b) shall be construed to provide immunity against any claim for defamation. (Amended by Stats. 2016, Ch. 800, Sec. 3. (SB 1196) Effective January 1, 2017.) - 7507.7. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
Certain license-related actors must send the chief a copy of a final civil court judgment within seven days after receiving it, if the judgment exceeds the small-claims maximum and relates to conduct within the scope of employment or contract.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.7. Within seven days after receiving a final civil court judgment filed against the licensee or any officer, partner, qualified certificate holder, or registrant of a licensee, for an amount of more than the then prevailing maximum claim that may be brought in a small claims court pertaining to an act done within the course and scope of his or her employment or contract, the licensee, or his or her qualified certificate holder, or his or her registrant, shall mail or deliver to the chief a copy of the judgment. (Amended by Stats. 1995, Ch. 505, Sec. 24. Effective January 1, 1996.) - 7507.8. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
A licensee’s advertisement for business must include the licensee’s name, address, and license number exactly as they appear in bureau records.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.8. Every advertisement by a licensee, soliciting or advertising business, shall contain the licensee’s name, address, and license number as they appear in the records of the bureau. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7507.9. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. )
Repossession licensees must remove, inventory, label, store, and sometimes turn over or safely dispose of personal effects taken with collateral, and must keep the inventory confidential except in specified cases.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 8. Conduct of Business [7507 - 7507.13] ( Article 8 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7507.9. Personal effects shall be removed from the collateral, including any personal effect that is mounted but detachable from the collateral by a release mechanism. A complete and accurate inventory of the personal effects shall be made, and the personal effects shall be labeled and stored by the licensee for a minimum of 60 days in a secure manner, except those personal effects removed by or in the presence of the debtor or the party in possession of the collateral at the time of the repossession. If the licensee or the licensee’s agent cannot determine whether the property attached to the collateral is a personal effect or a part of the collateral, then that fact shall be noted on the inventory and the licensee or agent shall not be obligated to remove the item from the collateral, unless the item can be removed without the use of tools, in which case it shall be removed and inventoried. The licensee or the licensee’s agent shall notify the debtor that if the debtor takes the position that an item is a personal effect, then the debtor shall contact the legal owner to resolve the issue. (a) The date and time the inventory is made shall be indicated. The permanent records of the licensee shall indicate the name of the employee or registrant who performed the inventory. (b) The following items of personal effects are items determined to present a danger or health hazard when recovered by the licensee and shall be disposed of in the following manner: (1) (A) Deadly weapons and dangerous drugs shall be turned over to any 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, and a receipt from the law enforcement agency shall be maintained in the records of the repossession agency. (B) Any other instrument or weapon, including, but not limited to, any instrument or weapon of the kind commonly known as a blackjack, slungshot, billy, sandclub, sandbag, metal knuckles, dirk, dagger, any knife having a blade longer than five inches, any razor with an unguarded blade, and any metal pipe or bar used or intended to be used as a club shall be inventoried and noted as “disposed of, dangerous device” and the item shall be disposed of in a reasonable and safe manner. (2) Combustibles shall be inventoried and noted as “disposed of, dangerous combustible,” and the item shall be disposed of in a reasonable and safe manner. (3) Food and other health hazard items shall be inventoried and noted as “disposed of, health hazard,” and disposed of in a reasonable and safe manner. (c) Personal effects may be disposed of after being held for at least 60 days. The inventory, and adequate information as to how, when, and to whom the personal effects were disposed of, shall be filed in the permanent records of the licensee and retained for four years. (d) The inventory shall include the name, address, business hours, and telephone number of the repossession agency to contact for recovering the personal effects and an itemization of all personal effects removal and storage charges that will be made by the repossession agency. The inventory shall also include the following statement: “Please be advised that the property listed on this inventory will be disposed of by the repossession agency after being held for 60 days from the date of this notice IF UNCLAIMED.” (e) The inventory shall be provided to a debtor not later than 48 hours after the recovery of the collateral, except that if: (1) The 48-hour period encompasses a Saturday, Sunday, or postal holiday, the inventory shall be provided no later than 72 hours after the recovery of the collateral. (2) The 48-hour period encompasses a Saturday or Sunday and a postal holiday, the inventory shall be provided no later than 96 hours after the recovery of the collateral. (3) Inventory resulting from repossession of a yacht, motor home, or travel trailer is such that it shall take at least 4 hours to inventory, then the inventory shall be provided no later than 96 hours after the recovery of the collateral. When the 96-hour period encompasses a Saturday, Sunday, or postal holiday, the inventory shall be provided no later than 120 hours after the recovery of the collateral. (4) The licensee is unable to open a locked compartment that is part of the collateral, the available inventory shall be provided no later than 96 hours after the recovery of the collateral. When the 96-hour period encompasses a Saturday, Sunday, or postal holiday, the inventory shall be provided no later than 120 hours after the recovery of the collateral. (f) Environmental, Olympic, special interest, or other license plates issued pursuant to Article 8 (commencing with Section 5000), Article 8.4 (commencing with Section 5060), or Article 8.5 (commencing with Section 5100) of Chapter 1 of Division 3 of the Vehicle Code that remain the personal effects of the debtor shall be removed from the collateral and inventoried pursuant to this section. If the plates are not claimed by the debtor within 60 days, they shall either (1) be effectively destroyed and the licensee shall, within 30 days thereafter, notify the Department of Motor Vehicles of their effective destruction on a form promulgated by the chief that has been approved as to form by the Director of the Department of Motor Vehicles; or (2) be retained by the licensee indefinitely to be returned to the debtor upon request, in which case the licensee shall not charge more than 60 days’ storage on the plates. (g) The notice may be given by regular mail addressed to the current address of the debtor, if known, or by personal service, at the option of the repossession agency. (h) With the consent of the licensee, the debtor waives the preparation and presentation of an inventory if the debtor redeems the personal effects or other personal property not covered by a security interest within the time period for the notices required by this section and signs a statement that the debtor has received all the property. (i) If personal effects or other personal property not covered by a security agreement are to be released to someone other than the debtor, the repossession agency must receive written authorization to do so from the debtor. (j) A licensee shall not sell personal effects or other personal property not covered by a security agreement and remit money from the sale to a third party, including, but not limited to, any lending institution. (k) The inventory shall be a confidential document. A licensee shall only disclose the contents of the inventory under the following circumstances: (1) In response to the order of a court having jurisdiction to issue the order. (2) In compliance with a lawful subpoena issued by a court of competent jurisdiction. (3) When the debtor has consented in writing to the release and the written consent is signed and dated by the debtor subsequent to the repossession and states the entity or entities to whom the contents of the inventory may be disclosed. (4) To the debtor. (Amended by Stats. 2024, Ch. 484, Sec. 4. (SB 1454) Effective January 1, 2025.) - 7508. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may impose administrative fines on repossession agency licensees, qualified certificate holders, or registrants for prohibited acts in this article.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7508. The director may assess administrative fines against any repossession agency licensee, qualified certificate holder, or registrant for any of the prohibited acts outlined in this article. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7508.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may fine repossession-related actors for listed prohibited acts, and some people must carry and show a bureau-issued registration card on demand.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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 one hundred dollars ($100) for each violation. (c) Using a business name other than the name under which the license is issued in connection with the official activities of the licensee’s business. The bureau shall issue a notice of warning for a first violation, a fine of one hundred dollars ($100) for the second violation, and a fine not to exceed two hundred fifty dollars ($250) for each violation thereafter. (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. (Amended by Stats. 2016, Ch. 800, Sec. 4. (SB 1196) Effective January 1, 2017.) - 7508.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may assess administrative fines for listed repossession-related prohibited acts, with specific dollar penalties for each type of violation.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7508.2. The director may assess administrative fines for any of the following prohibited acts: (a) Recovering collateral or making any money demand in lieu thereof, including, but not limited to, collateral registered under the Vehicle Code, that has been sold under a security agreement before a signed or telegraphic authorization has been received from the legal owner, debtor, lienholder, lessor, or repossession agency acting on behalf of the legal owner, debtor, lienholder, or lessor of the collateral. A telephonic assignment is acceptable if the legal owner, debtor, lienholder, lessor, or repossession agency acting on behalf of the legal owner, debtor, lienholder, or lessor is known to the licensee and a written authorization from the legal owner, debtor, lienholder, lessor, or repossession agency acting on behalf of the legal owner, debtor, lienholder, or lessor is received by the licensee within 10 working days or a request by the licensee for a written authorization from the legal owner, debtor, lienholder, lessor, or repossession agency acting on behalf of the legal owner, debtor, lienholder, or lessor is made in writing within 10 working days. Referrals of assignments from one licensee to another licensee are acceptable. The referral of an assignment shall be made under the same terms and conditions as in the original assignment. The fine shall be one hundred dollars ($100) for the first violation and five hundred dollars ($500) for each violation thereafter, per audit. (b) Using collateral or personal effects, which have been recovered, for the personal benefit of a licensee, or officer, partner, manager, registrant, or employee of a licensee. The fine shall be two hundred fifty dollars ($250) for the first violation and a fine not to exceed one thousand dollars ($1,000) for each violation thereafter. This subdivision does not apply to personal effects disposed of pursuant to subdivision (c) of Section 7507.9. Nothing in this subdivision prohibits the using or taking of personal property 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. (c) Selling collateral recovered under this chapter, or making a demand for payment in lieu of repossession. The fine shall be two hundred fifty dollars ($250) for the first violation and a fine not to exceed one thousand dollars ($1,000) for each subsequent violation. (d) Unlawfully entering any private building or secured area without the consent of the owner, or of the person in legal possession thereof, at the time of repossession. The fine shall be five hundred dollars ($500) for each violation. (e) Committing unlawful assault or battery on another person during the course of a repossession. The fine shall not exceed two thousand five hundred dollars ($2,500) for each violation. (f) Falsification of an inventory. The fine shall be one hundred dollars ($100) for the first violation and two hundred fifty dollars ($250) for each violation thereafter. (g) Soliciting from the legal owner the recovery of specific collateral registered under the Vehicle Code or under the motor vehicle licensing laws of other states after the collateral has been seen or located on a public street or on public or private property without divulging the location of the vehicle. The fine shall be one hundred dollars ($100) for the first violation and two hundred fifty dollars ($250) for each violation thereafter. (Amended by Stats. 2016, Ch. 800, Sec. 5. (SB 1196) Effective January 1, 2017.) - 7508.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
Repossession-related actors must not use false or misleading representations when recovering collateral, and the bureau can warn or fine violators.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7508.3. A licensee, or any of his or her registrants or employees, or a qualified certificate holder, is prohibited from using any false or misleading representation during the course of recovery of collateral. The bureau shall issue a notice of warning for a first violation, a fine of one hundred dollars ($100) for the second violation, and a fine not to exceed two hundred fifty dollars ($250) for any subsequent violation of any of the following: (a) The false representation or implication that the individual is vouched for, bonded by, or affiliated with the United States or with any state, county, city, or city and county, including the use of any badge, uniform, or facsimile thereof. (b) The false representation or implication that any individual is an attorney or that any communication is from any attorney. (c) The representation or implication by a repossession agency or its registrants or employees that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person, unless the action is lawful and the creditor has instructed the repossession agency to inform the debtor that the creditor intends to take the action. (d) The threat to take any action that cannot legally be taken. (e) The false representation or implication that the debtor committed any crime or other conduct in order to disgrace the debtor. (f) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any state, or which creates a false impression as to its source, authorization, or approval. (g) The false representation or implication that documents are legal process. (h) The use of any business, company, or organization name other than the true name of the repossession agency’s business, company, or organization. (i) The use of any deceptive forms. (Amended by Stats. 2016, Ch. 800, Sec. 6. (SB 1196) Effective January 1, 2017.) - 7508.4. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may impose administrative fines on repossession licensees for several prohibited acts, including operating from the wrong location, using a mismatched business form, failing to register registrants, improper employment, late notices, missing advertisement details, recordkeeping failures, and false office-address claims.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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 one hundred fifty dollars ($150) for the first violation and a fine not to exceed one thousand dollars ($1,000) for each violation thereafter. (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 five hundred dollars ($500) for each violation. (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 not exceed five hundred dollars ($500) for the first violation and shall not exceed one thousand dollars ($1,000) for each violation thereafter. (g) Failing to include the licensee’s name, address, and license number in any advertisement. The fine shall be fifty dollars ($50) for each violation. (h) Failing to maintain personal effects for at least 60 days. The fine shall be one hundred dollars ($100) for the first violation and two hundred fifty dollars ($250) for each violation thereafter. (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 one hundred dollars ($100) for the first violation and two hundred fifty dollars ($250) for each violation thereafter. (j) Failing to file the required report pursuant to Section 28 of the Vehicle Code. The fine shall be one hundred dollars ($100) for the first violation and two hundred fifty dollars ($250) for each violation thereafter, per audit. (k) Failing to maintain an accurate record and accounting of secure temporary registration forms. The qualified certificate holder shall be fined two hundred fifty dollars ($250) for the first violation, fined an amount not to exceed five hundred dollars ($500) for the second violation, and fined an amount not to exceed one thousand dollars ($1,000) plus a one-year suspension of the privilege to issue temporary registrations pursuant to Section 7506.9 for the third and subsequent violations. (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. (m) Notwithstanding any other law, the money in the Private Security Services Fund that is attributable to administrative fines imposed pursuant to this section shall not be continuously appropriated and shall be available for expenditure only upon appropriation by the Legislature. (Amended by Stats. 2016, Ch. 800, Sec. 7. (SB 1196) Effective January 1, 2017.) - 7508.5. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may fine a repossession agency registrant $25 for each listed violation.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 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. (Amended by Stats. 2014, Ch. 390, Sec. 7. (AB 2503) Effective September 17, 2014.) - 7508.6. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may fine repossession agency licensees, qualified certificate holders, or registrants $50 for each violation if they do not notify the bureau within 30 days after a change of residence or business address.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7508.6. The director may assess administrative fines against any repossession agency licensee, qualified certificate holder, or registrant for failure to notify the bureau within 30 days of any change of residence or business address. The fine shall be fifty dollars ($50) for each violation. (Amended by Stats. 2016, Ch. 800, Sec. 8. (SB 1196) Effective January 1, 2017.) - 7508.7. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
A repossession agency generally may not disclose specified personal information about certain workers and contractors without a court order, but it may share limited identifying information with an insurance company for insurance policy verification or renewal.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7508.7. (a) Except as otherwise provided by law, a repossession agency shall not disclose to the public, any person other than the individual to whom the information pertains, or any nongovernmental entity, without a court order, the residence address, residence telephone number, cellular telephone number, driver’s license number, work schedule, past, present, or future location, or any other personal information of any licensee, registrant, qualified certificate holder, qualified manager, employee, or independent contractor the agency employs. (b) For the purpose of verifying information for the issuance or renewal of a policy of insurance, a repossession agency may provide to an insurance company the name, driver’s license number, and date of birth of a licensee, registrant, qualified certificate holder, qualified manager, employee, or independent contractor the agency employs. (Amended by Stats. 2015, Ch. 740, Sec. 8. (AB 281) Effective January 1, 2016.) - 7508.8. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
Repossession agency personnel may wear certain badges or patches, but if they do, they must show specified identification; repossessors may not wear badges on the belt or around the neck, and the director may fine violations.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7508.8. (a) Notwithstanding Section 7508.3, an oval, shield, round, square, or non-seven-point badge, cap insignia, or jacket patch may be worn by a licensee, officer, director, partner, manager, independent contractor, qualified certificate holder, qualified manager, or employee of a repossession agency. If a badge, cap insignia, or jacket patch is worn, it shall bear on its face all of the following: (1) All or a substantial part of the repossession agency’s name. (2) The repossession agency license number issued by the director to that individual or agency. (3) The word “repossessor.” (b) A repossessor shall not wear a badge on his or her belt or hang a badge around his or her neck. (c) All badges, cap insignias, and jacket patches worn by a repossessor shall be a standard design approved by the director and shall be clearly visible. (d) This section shall not apply to a holder of a temporary registration pursuant to Section 7506.9. (e) The director may assess a fine of one hundred dollars ($100) for the first violation, one hundred seventy-five dollars ($175) for the second violation, and two hundred fifty dollars ($250) for each subsequent violation. (Added by Stats. 2013, Ch. 340, Sec. 7. (AB 791) Effective January 1, 2014.) - 7509. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
Licensed repossessors, certificate holders, and registrants may seek review or a hearing for certain discipline, but requests must be made in writing within 30 days and the hearing path is available only after committee review.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7509. (a) (1) A licensee, certificate holder, or registrant under this chapter may request a review by the Collateral Recovery Disciplinary Review Committee, as established in Section 7509.1, to contest the assessment of an administrative fine or to appeal a denial, revocation, or suspension, unless the denial, revocation, or suspension is ordered by the director in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (2) A request for a review shall be by written notice to the disciplinary review committee within 30 days of the issuance of the citation and assessment or denial, revocation, or suspension. (3) Following a review by the disciplinary review committee, the appellant shall be notified within 30 days, in writing, by regular mail, of the committee’s decision. (4) If the appellant disagrees with the decision made by the disciplinary review committee, he or she may request a hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. A request for a hearing following a decision by the disciplinary review committee shall be by written notice to the bureau within 30 days of the committee’s decision. (5) If the appellant does not request a hearing within 30 days, the disciplinary review committee’s decision shall become final. (b) (1) A licensee, certificate holder, or registrant may request a hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code if he or she contests the assessment of an administrative fine, or to appeal a denial, revocation, or suspension. A hearing may also be requested if the appellant disagrees with the decision made by the disciplinary review committee. (2) A request for a hearing shall be by written notice to the bureau within 30 days of the issuance of the decision by the disciplinary review committee. A hearing pursuant to this subdivision shall be available only after a review by the disciplinary review committee. (c) This section shall become operative on July 1, 2017. (Added by Stats. 2015, Ch. 740, Sec. 9. (AB 281) Effective January 1, 2016. Section operative July 1, 2017, by its own provisions.) - 7509.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
The Governor must appoint a five-member Collateral Recovery Disciplinary Review Committee by July 1, 2017, and may remove members for misconduct, incompetence, or neglect of duty.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7509.1. (a) On or before July 1, 2017, the Governor shall appoint a Collateral Recovery Disciplinary Review Committee, and may remove any member of the committee for misconduct, incompetency, or neglect of duty. The committee shall consist of five members. Of the five members, three members shall be actively engaged in business as a licensed repossession agency and two members shall be public members. None of the public members shall be licensees, certificate holders, or registrants, or engaged in any business or profession in which any part of the fees, compensation, or revenue thereof is derived from any licensee. (b) The disciplinary review committee shall meet every 60 days or more or less frequently as may be required. The members shall be paid per diem pursuant to Section 103 and shall be reimbursed for actual travel expenses. The members shall be appointed for a term of four years. (c) This section shall become operative on July 1, 2017. (Added by Stats. 2015, Ch. 740, Sec. 10. (AB 281) Effective January 1, 2016. Section operative July 1, 2017, by its own provisions.) - 7509.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
The committee must review certain appealed fines and license denials, and it may grant a probationary license, certificate, registration, or permit in those appealed matters.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7509.2. (a) The Collateral Recovery Disciplinary Review Committee shall perform the following functions: (1) Affirm, rescind, or modify all decisions concerning administrative fines assessed by the director or bureau against repossession agencies or their employees, that are appealed to the committee. (2) Affirm, rescind, or modify all decisions concerning denial of licenses issued by the director or bureau, except denials or suspensions ordered by the director in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, that are appealed to the committee. (b) The Collateral Recovery Disciplinary Review Committee may grant a probationary license, certificate, registration, or permit with respect to the appealed decisions described in subdivision (a). (c) This section shall become operative on July 1, 2017. (Added by Stats. 2015, Ch. 740, Sec. 11. (AB 281) Effective January 1, 2016. Section operative July 1, 2017, by its own provisions.) - 7509.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. )
The bureau must give the Collateral Recovery Disciplinary Review Committee all evidence it used before the committee reviews or appeals the decision.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 9. Prohibited Acts and Citations [7508 - 7509.3] ( Article 9 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7509.3. (a) The bureau shall provide the Collateral Recovery Disciplinary Review Committee all evidence used by the bureau in reaching its decision prior to any review or appeal of that decision by the committee. (b) This section shall become operative on July 1, 2017. (Added by Stats. 2015, Ch. 740, Sec. 12. (AB 281) Effective January 1, 2016. Section operative July 1, 2017, by its own provisions.) - 7510. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 10. Disciplinary Proceedings [7510 - 7510.4] ( Article 10 added by Stats. 1981, Ch. 1138, Sec. 11. )
Disciplinary proceedings under this article generally must follow Government Code Chapter 5, and the director has the powers granted there.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 10. Disciplinary Proceedings [7510 - 7510.4] ( Article 10 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7510. Except as otherwise required to comply with the provisions of this chapter, the proceedings under this article shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7510.1. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 10. Disciplinary Proceedings [7510 - 7510.4] ( Article 10 added by Stats. 1981, Ch. 1138, Sec. 11. )
The director may suspend or revoke certain repossession-related licenses or registrations if specified misconduct is found.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 10. Disciplinary Proceedings [7510 - 7510.4] ( Article 10 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7510.1. In addition to any other remedies authorized by this chapter, the director may suspend or revoke a repossession agency license, a qualification certificate, or registration issued under this chapter 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: (a) Made any false statement or given any false information in connection with an application for a license, qualification certificate, or registration, or a renewal or reinstatement thereof. (b) Violated any provisions of this chapter. (c) Violated any rule of the director adopted pursuant to authority contained in this chapter. (d) Been convicted of a felony or any crime substantially related to the repossession agency business including illegally using, carrying, or possessing a deadly weapon. (e) Committed or permitted any registrant or employee to commit any act while the license was expired which would be cause for the suspension or revocation of a license, or grounds for the denial of an application for a license. (f) Unlawfully committed assault, battery, or kidnapping, or used force or violence on any person. (g) Knowingly violated, or advised, encouraged, or assisted the violation of any court order or injunction in the course of business as a licensee. (h) Been convicted of a violation of Section 148 of the Penal Code, resisting or obstructing a public officer. (i) Committed any act which is a ground for denial of an application for license under this chapter. (j) Committed any act prohibited by Chapter 1.5 (commencing with Section 630) of Title 15 of Part 1 of the Penal Code. (k) Committed any act in the course of the licensee’s business constituting dishonesty or fraud, including, but not limited to: (1) Knowingly making a false statement relating to evidence or information obtained in the course of employment or while under contract, or knowingly publishing a slander or a libel in the course of business. (2) Using illegal means in the collection or attempted collection of a debt or obligation. (l) Represented that the licensee has an office and conducts business at a specific address when that is not the case. (Amended by Stats. 2002, Ch. 402, Sec. 6. Effective January 1, 2003.) - 7510.2. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 10. Disciplinary Proceedings [7510 - 7510.4] ( Article 10 added by Stats. 1981, Ch. 1138, Sec. 11. )
Certain licensees and related people must give up financial interests in repossession agencies after a revocation, and they may not buy new interests while suspended or revoked.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 10. Disciplinary Proceedings [7510 - 7510.4] ( Article 10 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7510.2. (a) Any licensee, or any officer, partner, registrant, employee, or manager of a licensee, who is found by the director to have committed any acts prohibited by Section 7510.1, resulting in revocation of a license, shall dispose of any financial interest in any repossession agency required to be licensed by this act within 90 days of the effective date of the revocation, or at a later date, approved in writing by the director, not to exceed 180 days. (b) No licensee, or any officer, partner, registrant, employee, or manager of a licensee, who is found by the director to have committed any acts prohibited by Section 7510.1, shall, during the period of suspension or revocation, acquire any financial interest in any repossession agency required to be licensed by this act. (c) The requirements and prohibitions of this section shall also apply to any immediate family member of a licensee, or officer, partner, registrant, employee, or manager of a licensee, if the family member actively participated in the management or operation of the repossession agency whose license was revoked. (d) Any immediate family member of a licensee, or officer, partner, registrant, employee, or manager of a licensee, not subject to subdivision (c), shall dispose of all financial interest in the repossession agency of the licensee whose license was revoked, within the time period required in subdivision (a). (e) Any financial interest transferred for the purpose of avoiding the prohibitions of this section shall be deemed a financial interest of the transferor. (f) As used in this section, “financial interest” includes, but is not limited to, any type of ownership interest, debt, loan, lease, compensation, remuneration, discount, rebate, refund, dividend, distribution, subsidy, or other form of direct or indirect payment, whether in money or otherwise. (g) As used in this section, “immediate family” includes one’s spouse, children, parents, siblings, and spouses of one’s children or siblings. (Amended by Stats. 1995, Ch. 505, Sec. 34. Effective January 1, 1996.) - 7510.3. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 10. Disciplinary Proceedings [7510 - 7510.4] ( Article 10 added by Stats. 1981, Ch. 1138, Sec. 11. )
A licensee can be automatically suspended if it is not properly registered and in good standing after notice, and it may be reinstated later by giving satisfactory proof and paying the reinstatement fee.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 10. Disciplinary Proceedings [7510 - 7510.4] ( Article 10 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7510.3. Notwithstanding any other law, the failure of any person licensed to do business as a corporation or limited liability company in this state to be registered and in good standing with the Secretary of State and the Franchise Tax Board after notice from the bureau shall result in the automatic suspension of the licensee by operation of law. The bureau shall notify the licensee in writing of its failure to be registered and in good standing with the Secretary of State or Franchise Tax Board, or both, and that the licensee shall be suspended 30 days from the date of the notice if the licensee does not provide proof satisfactory to the bureau that it is properly registered and in good standing with the Secretary of State or Franchise Tax Board, or both. Reinstatement may be made at any time following the suspension by providing proof satisfactory to the bureau that the license is properly registered and in good standing and the payment of the reinstatement fee as prescribed by this chapter. (Added by Stats. 2021, Ch. 376, Sec. 7. (AB 830) Effective January 1, 2022.) - 7510.4. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 10. Disciplinary Proceedings [7510 - 7510.4] ( Article 10 added by Stats. 1981, Ch. 1138, Sec. 11. )
A conviction record or certified copy is conclusive evidence of the conviction, and the director may suspend or revoke a license, or refuse to issue one, after appeal is over or the conviction is affirmed, including when probation is granted.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 10. Disciplinary Proceedings [7510 - 7510.4] ( Article 10 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7510.4. The record of conviction, or a certified copy thereof, shall be conclusive evidence of such conviction. A plea or verdict of guilty or a conviction following a plea of nolo contendere is deemed to be a conviction within the meaning of this article. The director may order the license suspended or revoked, or may decline to issue a license, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under the provisions of Section 1203.4 of the Penal Code allowing such person to withdraw his or her plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty or dismissing the accusation, information, or indictment. (Added by Stats. 1981, Ch. 1138, Sec. 11.) - 7511. Verify source ↗
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 11. Revenue [7511- 7511.] ( Article 11 added by Stats. 1981, Ch. 1138, Sec. 11. )
The bureau must establish fees and penalties for licensure and registration, and the section sets specific fee amounts and formulas for repossession agency and qualified manager licenses, registrations, renewals, reinstatements, verifications, copies, and replacements.
## Business and Professions Code - BPC ## DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000 - 9998.12] ( Heading of Division 3 added by Stats. 1939, Ch. 30. ) ## CHAPTER 11. Repossessors [7500 - 7511.5] ( Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## ARTICLE 11. Revenue [7511- 7511.] ( Article 11 added by Stats. 1981, Ch. 1138, Sec. 11. ) ## 7511. The bureau shall establish and assess fees and penalties for licensure and registration as displayed in this section. The fees prescribed by this chapter are as follows: (a) The application fee for an original repossession agency license shall be at least nine hundred seventy dollars ($970) and may be increased to an amount not to exceed one thousand sixty-seven dollars ($1,067). (b) The application fee for an original qualified manager certificate shall be at least three hundred fifty dollars ($350) and may be increased to an amount not to exceed three hundred eighty-five dollars ($385). (c) The renewal fee for a repossession agency license shall be at least seven hundred fifty dollars ($750) and may be increased to an amount not to exceed eight hundred twenty-five dollars ($825) biennially. (d) The renewal fee for a qualified manager certificate shall be at least two hundred twenty-five dollars ($225) and may be increased to an amount not to exceed two hundred forty-eight dollars ($248) biennially. (e) Notwithstanding Section 163.5, the reinstatement fee for a repossession agency license required pursuant to Sections 7503.11 and 7505.3 is the amount equal to the renewal fee plus a penalty of 50 percent thereof. (f) Notwithstanding Section 163.5, the reinstatement fee for a qualified manager certificate required pursuant to Sections 7503.11 and 7504.7 is the amount equal to the renewal fee plus a penalty of 50 percent thereof. (g) A fee for reexamination of an applicant for a qualified manager shall be at least sixty dollars ($60) and may be increased to an amount not to exceed sixty-six dollars ($66). (h) An initial registrant registration fee shall be at least seventy-five dollars ($75) and may be increased to an amount not to exceed eighty-two dollars ($82), a registrant reregistration fee shall be at least seventy-five dollars ($75) and may be increased to an amount not to exceed eighty-two dollars ($82), and a registrant biennial renewal fee shall be at least forty dollars ($40) and may be increased to an amount not to exceed forty-four dollars ($44) per registration. Notwithstanding Section 163.5 and this subdivision, the reregistration fee for a registrant whose registration expired more than one year prior to the filing of the application for reregistration shall be at least seventy-five dollars ($75) and may be increased to an amount not to exceed eighty-two dollars ($82). (i) The delinquency fee is 50 percent of the renewal fee in effect on the date of expiration, but not less than twenty-five dollars ($25). (j) The fingerprint processing fee is that amount charged to the bureau by the Department of Justice. (k) The director shall furnish one copy of any issue or edition of the licensing law and rules and regulations to any applicant or licensee without charge. The director shall charge and collect a fee not to exceed ten dollars ($10) plus sales tax for each additional copy, which may be furnished on request to any applicant or licensee, and for each copy furnished on request to any other person. (l) The processing fee for the assignment of a repossession agency license pursuant to Section 7503.9 shall be at least four hundred dollars ($400) and may be increased to an amount not to exceed four hundred forty dollars ($440). (m) The fee for an endorsed verification of licensure, certification, or registration shall be twenty-five dollars ($25). The verification document shall include the license, certificate, or registration number, the license, certificate, or registration history and current status, the date of the endorsement, an embossed seal, and the signature of the chief. (n) The fee for the replacement of a lost or destroyed registration card, license, or certificate authorized by this chapter shall be twenty-five dollars ($25). The request for a replacement of a registration card, license, or certificate shall be made in the manner prescribed by the bureau. (o) The reinstatement fee following a suspension pursuant to Section 7510.3 shall be 25 percent of the renewal fee. (Amended by Stats. 2021, Ch. 376, Sec. 8. (AB 830) Effective January 1, 2022.)
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