BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 158|
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                                 THIRD READING


          Bill No:  AB 158
          Author:   Mendoza (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE PUBLIC SAFETY COMMITTEE  :  7-0, 6/9/09
          AYES:  Leno, Benoit, Cedillo, Hancock, Huff, Steinberg,  
            Wright

           ASSEMBLY FLOOR  :  76-0, 3/23/09 - See last page for vote


           SUBJECT  :    Pawnbrokers and coin dealers

           SOURCE  :     The Collateral Loan and Secondhand Dealers  
          Assn.


           DIGEST  :    This bill allows pawnbrokers and coin dealers,  
          as specified, to accept valid government identification  
          cards or documents, such as a military identification card  
          or a U.S. visa issued to a Mexican citizen, if the  
          identification document is designed to not include a  
          signature.

           ANALYSIS  :    Existing law includes a statement of  
          legislative intent to curtail the dissemination of stolen  
          property and to facilitate the recovery of stolen property  
          by means of a uniform, statewide, state-administered  
          program of regulation of persons whose principal business  
          is dealing in such property.  (Bus. & Prof. Code  21625.)

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          Existing law defines a "secondhand dealer" as any person or  
          entity taking in pawn, accepting for sale of consignment,  
          trading, etc., any tangible personal property.  (Bus. &  
          Prof. Code  21625.)

          Existing law defines a pawnbroker as a "person engaged in  
          the business of receiving goods in pledge for security for  
          a loan."  (Fin. Code  21000.)

          Existing law defines a "coin dealer" a person or entity  
          "whose principal business is the buying, selling, and  
          trading of coins, monetized bullion, or commercial grade  
          ingots of gold, or silver, or other precious metals."   
          (Bus. & Prof. Code  21626, subd. (b).)

          Existing law includes a statement of legislative intent to  
          require the uniform statewide reporting of transactions in  
          and acquisitions of secondhand and pawned property by  
          pawnbrokers and secondhand dealers.  (Bus. & Prof. Code   
          21625; Fin. Code  21051.)

          Existing law provides that pawnbrokers and coin dealers  
          shall report daily on forms approved or provided by the  
          Department of Justice, all personal property purchased,  
          taken in trade, taken in pawn, etc., to local law  
          enforcement.  The report shall include the following  
          information: 

           1.   The name and current address and identification of  
               the intended seller or pledgor of the property; 

           2.   A complete and reasonably accurate description of  
               serialized or nonserialized property;

           3.   A certification by the intended seller or pledgor  
               that he or she is the owner of the property, or has  
               the authority of the owner to sell or pledge the  
               property and that any information provided is true and  
               complete; and

           4.   A legible fingerprint taken from the intended seller  
               or pledgor.  (Bus. & Prof. Code  21628.)

          Existing law provides the following concerning the  







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          identification that must be offered by a pledgor of  
          property in pawn or seller of property:

           1.   The identification provided by the pledgor shall  
               include a photograph, a description or both, and a  
               signature.

           2.   The identification shall be verified by the person  
               taking the property.

           3.   The following forms of identification are acceptable:

                  A.        U.S. passport;
                  B.        Driver's license issued by any state or  
                    Canada;
                  C.        Identification card issued by any state;
                  D.        Identification card issued by the United  
                    States; and
                  E.        Passport from any other county, in  
                    addition to another form of identification  
                    bearing an address.

          This bill provides that a pawnbroker or coin dealer shall  
          require a property pledgor to provide an identification  
          that includes a signature, where applicable.

           Prior Legislation  

          This bill is identical to AB 264 (Mendoza) of 2008, which  
          passed the Senate on consent (35-0) on 6/26/09, but was  
          vetoed.  The Governor's veto message stated:

               The historic delay in passing the 2008-09 State Budget  
               has forced me to prioritize the bills sent to my desk  
               at the end of the year's legislative session.  Given  
               the delay, I am only signing bills that are the  
               highest priority for California.  This bill does not  
               meet that standard and I cannot sign it at this time. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  6/10/09)








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          The Collateral Loan and Secondhand Dealers Assn. (source) 
          Western Loan and Jewelry


           ARGUMENTS IN SUPPORT  :    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 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 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.


           ASSEMBLY FLOOR  :
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, De La Torre, De Leon,  
            DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Fuller, Furutani, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jeffries, Jones, Knight, Krekorian, Lieu,  
            Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning,  
            Nava, Nestande, Niello, Nielsen, John A. Perez, V. Manuel  
            Perez, Portantino, Ruskin, Salas, Saldana, Silva,  
            Skinner, Smyth, Solorio, Audra Strickland, Swanson,  
            Torlakson, Torres, Torrico, Tran, Villines, Yamada
          NO VOTE RECORDED:  Davis, Gaines, Price, Bass


          RJG:nl  6/10/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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