BILL ANALYSIS
AB 158
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Date of Hearing: March 17, 2009
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Mary Hayashi, Chair
AB 158 (Mendoza) - As Introduced: January 27, 2009
SUBJECT : Secondhand dealers and coin dealers.
SUMMARY : Removes the signature and serial or identifying number
requirements for a document that a secondhand dealer or coin
dealer may use to verify the identification of an intended
seller or pledger, and instead provides that a signature or
serial or identifying number are only required for those
documents 'where applicable.'
EXISTING LAW :
1)Requires secondhand dealers and coin dealers to report
acquisitions of tangible personal property on a daily basis to
local law enforcement authorities, as specified.
2)Requires an acquisition report to include the identification
of the intended seller or pledger of the property and requires
the dealer to verify that identification.
3)Provides that an identification verification is valid if the
person taking the information reasonably relies on a specified
document that is currently valid or has been issued within
five years and contains a photograph or description, or both,
of the person named on it, is signed by the person, and bears
a serial or other identifying number.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal.
COMMENTS :
Purpose of this bill . According to the author's office,
"California statute is specific as to which forms of
identification may be used for a pawnbroker or secondhand dealer
transaction in California. Pawnbrokers and secondhand dealers
are still legally required to have one or more forms of
identification 'that bears a signature', yet the stated form of
identification may not now require a signature. By adding the
phrase 'where applicable' referring to the signature, if the
acceptable form of identification no longer requires it, the
AB 158
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signature does not have to be obtained. Adding this language
will permit a pawnshop to utilize new and emerging forms of
'biometric' identification cards while preserving the
reliability of the identification of the pledger."
Background . According to the author's office, there currently
is no standard form for the new identification forms that have
been issued since September 11, 2001. The federal government
and many state governments have eliminated signature lines on
many forms of government identity cards, including passports, as
they move towards "bio-chip" forms of identification security.
For example, the US Department of Defense has begun issuing
"Common Access Cards" that include an imbedded microchip
containing biometric information in lieu of the active military
identification cards. In this instance a signature has become
unnecessary.
Related Legislation . AB 99 (De Le?n) also removes the signature
requirement for documents that secondhand dealers and coin
dealers may use to verify identification, and instead provides
that a signature is only required for those documents 'where
applicable'. In addition, AB 99 adds a Matricula Consular to
the specified list of documents that a secondhand dealer or coin
dealer may use to verify the identification of an intended
seller or pledger.
Prior Legislation . AB 264 (Mendoza) of 2008 was an identical
bill that the Governor vetoed. The Governor vetoed a
substantial number of bills that year with the same message
that, due to the delay in passing the 2008-2009 State Budget, he
would only sign bills that were "the highest priority for
California." AB 264 was vetoed for this reason.
Support . The Collateral Loan and Secondhand Dealers Association
writes, "Due to a change in the format of U.S. Passport and
other forms of identification, that in many cases no longer have
or require a signature, it is necessary to amend current law to
allow collateral lenders (pawnbrokers) to use these ID's in
their current form."
REGISTERED SUPPORT / OPPOSITION :
Support
AB 158
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Collateral Loan and Secondhand Dealers Association (CLSDA).
(sponsor)
Opposition
None on file.
Analysis Prepared by : Whitney Clark / B. & P. / (916)
319-3301