BILL NUMBER: AB 391	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 10, 2012
	AMENDED IN SENATE  JANUARY 23, 2012
	AMENDED IN SENATE  SEPTEMBER 8, 2011
	AMENDED IN ASSEMBLY  MAY 27, 2011

INTRODUCED BY   Assembly Member Pan
    (   Principal   coauthors:  
Assembly Members   Alejo  and Galgiani   )

    (   Coauthors:   Assembly Members 
 Achadjian,   Ammiano,   Atkins,  
Beall,   Bill Berryhill,   Block,  
Blumenfield,   Bradford,  Charles Calderon, 
 Campos,   Cedillo,   Conway,   Davis,
  Donnelly,   Eng,   Fong,  
Fuentes,   Beth Gaines,   Gatto,   Gordon,
  Grove,   Hagman,   Hall,  
Roger Hernández,   Hill,   Hueso,  
Jeffries,   Lara,   Logue,   Ma, 
 Mendoza,   Morrell,   Nestande,  
Nielsen,   Norby,   Olsen,   V. Manuel
Pérez,  Portantino,   Solorio,   Swanson,
  Torres,   Valadao,   Wagner,  
Wieckowski,   and Williams   ) 
   (Coauthors: Senators  Alquist,   Anderson, 
Berryhill,  Calderon,  Cannella,  Correa,   De
León,   DeSaulnier,   Dutton,   Emmerson,
  Fuller,   Gaines,   Hancock,  
Harman,   Huff,   Leno,   Lieu,  
Liu,   Padilla,   Price,  Strickland, 
Vargas,  Walters,  Wyland,  and Yee)

                        FEBRUARY 14, 2011

   An act to amend Sections 21628, 21641, and 21642 of, and to add
Section 21642.5 to, the Business and Professions Code, and to amend
Sections 21300 and 21301 of, and to repeal and add Section 21208 of,
the Financial Code, relating to personal property, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 391, as amended, Pan. Secondhand dealers and pawnbrokers:
electronic reporting.
   Existing law generally requires secondhand dealers and coin
dealers, as defined, to report specified transactions to the local
law enforcement agency where their businesses are located. Under
existing law, secondhand dealers and coin dealers are required to
report this information using an electronic reporting system 12
months after the Department of Justice develops that system.
   This bill would instead require that secondhand dealers and coin
dealers report this information using the electronic reporting system
on and after the date that the system is implemented  , as
specified  .
   Existing law requires a local law enforcement agency to issue a
license to engage in the business of a secondhand dealer or
pawnbroker to an applicant who meets designated criteria. Existing
law authorizes the local licensing authority and the Department of
Justice to charge an initial licensure fee and a renewal fee, as
specified.
   This bill would  eliminate the authority of the local
licensing authority to charge an initial licensure fee and would
authorize   require  the Department of Justice to
charge a licensure fee and a renewal fee of no more than $300, as
specified.  The bill would also require licensees issued a
license before the effective date of this bill to pay an additional
fee of no more than $288 for the purpose of funding the electronic
reporting system, with payment due within 120 days of the enactment
  of this bill.  The bill would require that the fees
assessed by the department  , except as specified, 
be deposited in the Secondhand Dealer and Pawnbroker Fund, which the
bill would create in the State Treasury. The bill would continuously
appropriate the money in the fund to the department for the purpose
of paying for specified regulatory costs, including the cost of
implementing, operating, and maintaining the electronic reporting
system  , and would appropriate $2.5 million dollars to the
department for the purpose of implementing the electronic reporting
system  .  Because the bill would continuously
appropriate specified fee revenue to the department, the bill would
make an appropriation.   The bill would also require
applicants for a license to submit fingerprint images relative to a
required criminal background check, with associated fee revenue to be
deposited in the Fingerprint Fee Account, and would continuously
appropriate those revenues to the Department of Justice for these
purposes.  The bill would make other related conforming changes.

   The bill would declare that it is to take effect immediately as an
urgency statute.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature to enact
legislation that fully funds the cost of developing and implementing
a  single  statewide, uniform electronic reporting system
 of the information required to be reported in accordance with
Section 21628 of the Business and Professions Code,  for
reporting the acquisition of secondhand, tangible personal property
through the imposition of a fee  120 days after enactment of this
act and thereafter  upon the application for and renewal of a
license to act as a secondhand dealer or pawnbroker.
   It is further the intent of the Legislature to relieve all
secondhand dealers, coin dealers, and pawnbrokers of the inherent
costs and burdens imposed under existing law that requires these
businesses to report their daily acquisitions of  secondhand
 tangible personal property on paper forms limited to a single
transaction. The Legislature finds that the costs associated with
printing, manually completing, and mailing or delivering hundreds to
thousands of paper reports is an unnecessary and expensive burden on
these businesses and represents an unnecessary risk of loss of
consumer financial information, and that the cost of electronically
collecting multiple transactions on a daily basis through the uniform
electronic reporting system is significantly more cost effective and
a benefit to these businesses.
  SEC. 2.  Section 21628 of the Business and Professions Code is
amended to read:
   21628.  Every secondhand dealer or coin dealer described in
Section 21626 shall report daily, or on the first working day after
receipt or purchase of  the   secondhand
tangible personal  property, on forms  either 
 or through an electronic reporting system  approved
 or provided at actual cost  by the Department of
Justice, all  secondhand  tangible personal property, except
for firearms, which he or she has purchased, taken in trade, taken
in pawn, accepted for sale on consignment, or accepted for
auctioning, to the chief of police or to the sheriff, in accordance
with the provisions of Sections 21630 and 21633 and subdivision (j)
 of this section  . The report shall be legible,
prepared in English, completed where applicable, and include, but not
be limited to, the following information:
   (a) The name and current address of the intended seller or pledger
of the property.
   (b) The identification of the intended seller or pledger. The
identification of the seller or pledger of the property shall be
verified by the person taking the information. The verification shall
be valid if the person taking the information reasonably relies on
any one of the following documents, provided that the document is
currently valid or has been issued within five years and contains a
photograph or description, or both, of the person named on it, and,
where applicable, is signed by the person, and bears a serial or
other identifying number:
   (1) A passport of the United States.
   (2) A driver's license issued by any state, or Canada.
   (3) An identification card issued by any state.
   (4) An identification card issued by the United States.
   (5) A passport from any other country in addition to another item
of identification bearing an address.
   (6) A Matricula Consular in addition to another item of
identification bearing an address.
   (c) A complete and reasonably accurate description of serialized
property, including, but not limited to, the following: serial number
and other identifying marks or symbols, owner-applied numbers,
manufacturer's named brand, and model name or number. Watches need
not be disassembled when special skill or special tools are required
to obtain the required information, unless specifically requested to
do so by a peace officer. A special tool does not include a penknife,
caseknife, or similar instrument and disassembling a watch with a
penknife, caseknife, or similar instrument does not constitute a
special skill. In all instances where the required information may be
obtained by removal of a watchband, then the watchband shall be
removed. The cost associated with opening the watch shall be borne by
the pawnbroker, secondhand dealer, or customer.
   (d) A complete and reasonably accurate description of
nonserialized property, including, but not limited to, the following:
size, color, material, manufacturer's pattern name (when known),
owner-applied numbers and personalized inscriptions, and other
identifying marks or symbols. Watches need not be disassembled when
special skill or special tools are required to obtain the required
information, unless specifically requested to do so by a peace
officer. A special tool does not include a penknife, caseknife, or
similar instrument and disassembling a watch with a penknife,
caseknife, or similar instrument does not constitute a special skill.
In all instances where the required information may be obtained by
removal of a watchband, then the watchband shall be removed. The cost
associated with opening the watch shall be borne by the pawnbroker,
secondhand dealer, or customer.
   (e) A certification by the intended seller or pledger that he or
she is the owner of the property or has the authority of the owner to
sell or pledge the property.
   (f) A certification by the intended seller or pledger that to his
or her knowledge and belief the information is true and complete.
   (g) A legible fingerprint taken from the intended seller or
pledger, as prescribed by the Department of Justice. This requirement
does not apply to a coin dealer, unless required pursuant to local
regulation.
   (h) When a secondhand dealer complies with all of the provisions
of this section, he or she shall be deemed to have received from the
seller or pledger adequate evidence of authority to sell or pledge
the property for all purposes included in this article, and Division
8 (commencing with Section 21000) of the Financial Code.
   In enacting this subdivision, it is the intent of the Legislature
that its provisions shall not adversely affect the implementation of,
or prosecution under, any provision of the Penal Code.
   (i) Any person who conducts business as a secondhand dealer at any
gun show or event, as defined in Section 478.100 of Title 27 of the
Code of Federal Regulations, or its successor, outside the
jurisdiction that issued the secondhand dealer license in accordance
with subdivision (d) of Section 21641, may be required to submit a
duplicate of the transaction report prepared pursuant to this section
to the local law enforcement agency where the gun show or event is
conducted.
   (j) (1) The Department of Justice shall, in consultation with
appropriate local law enforcement agencies, develop clear and
comprehensive descriptive categories denoting tangible personal
property  , as detailed in this section,  subject to the
reporting requirements of this section. These categories shall be
incorporated by secondhand dealers and coin dealers described in
Section 21626 for purposes of the reporting requirements set forth
herein. Any required report shall be transmitted by electronic means.
 Upon the availability of sufficient funds in the Secondhand
Dealer and Pawnbroker Fund created pursuant to Section 21642.5, the
Department of Justice, in consultation with representatives from the
secondhand dealer and coin dealer businesses, shall promptly develop
a statewide, uniform electronic reporting system to be used to
transmit this report electronically   With the 
 consultation by the Department of Justice with local law
enforcement agencies and representatives from the secondhand dealer
and coin dealer businesses, pursuant to Resolution Chapter 16 of the
Statutes of 2010, and upon the availability of sufficient funds in
the Secondhand Dealer and Pawnbroker Fund created pursuant to Section
21642.5, the department shall promptly develop a single statewide,
uniform electronic reporting system to be used to transmit this
report  .
   (2)  On and after   (A)    
Until  the date that the Department of Justice implements the
statewide, uniform electronic reporting system described in paragraph
(1), each secondhand dealer and coin dealer  shall
electronically report using this system   may continue
to report  the information required by this section under the
reporting categories described in paragraph (1)  . Until that
time, each secondhand dealer and coin dealer may continue to report
this information using existing forms and procedures.  
in p   aper format on forms approved of or provided by the
Department of Justice.  
   (B) On and after the date that the Department of Justice
implements the statewide, uniform electronic reporting system
described in paragraph (1), each secondhand dealer and coin dealer
shall electronically report using that system the information
required by this section under the reporting categories described in
paragraph (1), except that for the first 30 days following the
implementation date, each secondhand dealer and coin dealer shall
also report the information in paper format as described in
subparagraph (A). 
   (3) A coin dealer who engages in less than 10 transactions each
week in which he or she has purchased, taken in trade, taken in pawn,
accepted for sale or consignment, or accepted for auctioning
tangible personal property, shall report the information required by
this section under the reporting categories described in paragraph
(1) on a form developed by the Attorney General that the coin dealer
shall transmit each day by facsimile transmission or by mail to the
chief of police or sheriff. A transaction shall consist of not more
than one item. Nothing in this section shall prohibit up to 10
transactions with the same customer per week, provided that the
cumulative total per week for all customers does not exceed 10
transactions. Until that form is developed, these coin dealers shall
continue to report information required by this section using
existing forms and procedures. If these transactions increase to 10
per week, the coin dealer shall electronically report using the
statewide, uniform electronic reporting system described in paragraph
(1) the information required by this section beginning six months
after his or her transactions exceed 10 per week or 12 months after
the system described in paragraph (1) has been implemented, whichever
occurs later.
   (4) For purposes of this subdivision, "item" shall mean any single
physical article. However, with respect to a commonly accepted
grouping of articles that are purchased as a set, including, but not
limited to, a pair of earrings or place settings of china,
silverware, or other tableware, "item" shall mean that commonly
accepted grouping.
   (5) Nothing in this subdivision shall be construed as excepting a
secondhand dealer from the fingerprinting requirement of subdivision
(g).
   (k) Nothing in this section shall be construed to exempt a person
licensed as a firearms dealer pursuant to Sections 26700 to 26915,
inclusive, of the Penal Code from the reporting requirements for the
delivery of firearms pursuant to Sections 26700 to 26915, inclusive,
of the Penal Code. 
   (l) This section shall become operative on July 1, 2010. 

  SEC. 3.  Section 21641 of the Business and Professions Code is
amended to read:
   21641.  (a) The chief of police, the sheriff or, where
appropriate, the police commission, shall accept an application for
and grant a license permitting the licensee to engage in the business
of secondhand dealer, as defined in Section 21626, to an applicant
who has not been convicted of an attempt to receive stolen property
or any other offense involving stolen property. Prior to the granting
of a license, the licensing authority shall submit the application
to the Department of Justice. If the Department of Justice does not
comment on the application within 30 days thereafter, the licensing
authority may grant the applicant a license. All forms for
application and licensure, and license renewal, shall be prescribed
and provided by the Department of Justice. A fee  may
  shall  be charged to the applicant by the
Department of Justice as specified in Section 21642.5.  In
addition, a fee not to exceed the actual costs of processing the
application by the police chief, the sheriff, or, where appropriate,
the police commission may be charged to the applicant to recover the
actual costs of processing the application by these entities. 
   (b) For the purposes of this section, "convicted" means a plea or
verdict of guilty or a conviction following a plea of nolo
contendere.
   (c) Notwithstanding subdivisions (a) and (b), no person shall be
denied a secondhand dealer's license solely on the grounds that he or
she violated any provision contained in this article or Article 5
(commencing with Section 21650), or any provision contained in
Chapter 2 (commencing with Section 21200) of Division 8 of the
Financial Code, unless the violation demonstrates a pattern of
conduct.
   (d) Any person licensed as a firearms dealer pursuant to Sections
26700 to 26915, inclusive, of the Penal Code, who is conducting
business at gun shows or events pursuant to subdivision (b) of
Section 26805 of the Penal Code, and who has a valid secondhand
dealer license granted by the appropriate local authorities in the
jurisdiction where the firearms dealer license has been granted,
shall be authorized to conduct business as a secondhand dealer at any
gun show or event, as defined in Section 478.100 of Title 27 of the
Code of Federal Regulations, or its successor, without regard to the
jurisdiction within this state that issued the secondhand dealer
license pursuant to subdivision (a) of this section. No additional
fees or separate secondhand dealer license shall be required by any
agency having jurisdiction over the locality where the gun show or
event is conducted. However, the person shall otherwise be subject
to, and comply with, the requirements of this article when he or she
acts as a secondhand dealer at the gun show or event to the same
extent as if he or she were licensed as a secondhand dealer in the
jurisdiction in which the gun show or event is being conducted.
  SEC. 4.  Section 21642 of the Business and Professions Code is
amended to read:
   21642.  (a) A license granted pursuant to Section 21641 shall be
renewable the second year from the date of issue, and every other
year thereafter, upon the filing of a renewal application and the
payment of a license renewal fee specified by the licensing
authority. The Department of Justice  may  
shall  also charge a fee, as specified in Section 21642.5. 
The licensing authority shall collect the fee and transmit the fee
and a copy of the renewed license to the Department of Justice, as
specified in Section 21642.5. The police   chief, sheriff,
or, where appropriate, the police commission may charge a fee, not to
exceed the actual cos   ts incurred to process the renewal
application of the licensee. 
   (b) The license shall be subject to forfeiture by the licensing
authority and the licensee's activities as a secondhand dealer shall
be subject to being enjoined pursuant to Section 21646 for breach of
any of the following conditions:
   (1) The business shall be carried on only at the location
designated on the license. The license shall designate all locations
where property belonging to the business is stored. Property of the
business may be stored at locations not designated on the license
only with the written consent of the local licensing authority.
   (2) The license or a copy thereof, certified by the licensing
authority, shall be displayed on the premises in plain view of the
public.
   (3) The licensee shall not engage in any act which the licensee
knows to be in violation of this article.
   (4) The licensee shall not be convicted of an attempt to receive
stolen property or any other offense involving stolen property. For
the purposes of this paragraph, "convicted" means a plea or verdict
of guilty or a conviction following a plea of nolo contendere. Any
action which the chief of police, the sheriff  ,  or, where
appropriate, the police commission  ,  is permitted
to take following the establishment of a conviction may be taken 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.
   (c) Notwithstanding subdivisions (a) and (b), no person shall have
his or her renewal application for a secondhand dealer's license
denied, nor shall his or her secondhand dealer's license be forfeited
solely on the grounds that he or she violated any provision
contained in this article or Article 5 (commencing with Section
21650), or any provision contained in Chapter 2 (commencing with
Section 21200) of Division 8 of the Financial Code, unless the
violation demonstrates a pattern of conduct.
  SEC. 5.  Section 21642.5 is added to the Business and Professions
Code, to read:
   21642.5.  (a) The Department of Justice  may 
 shall  require each applicant for an initial license under
Section 21641 of this code or Section 21300 of the Financial Code and
each applicant for renewal of a license under Section 21642 of this
code or Section 21301 of the Financial Code to pay a fee not to
exceed three hundred dollars ($300),  but in no event exceeding
the costs described in subdivision (b),  except that the fee may
be increased at a rate not to exceed any increase in the California
Consumer Price Index as compiled and reported by the Department of
Industrial Relations.
   (b) The fees assessed pursuant to subdivision (a) shall be no more
than necessary to cover the reasonable regulatory costs to the
department of doing all of the following:
   (1) Processing initial license applications under Section 21641 of
this code and Section 21300 of the Financial Code.
   (2) Processing renewal applications under Section 21642 of this
code and Section 21301 of the Financial Code.
   (3) Implementing, operating, and maintaining the  statewide,
uniform  electronic reporting system described in subdivision
(j) of Section 21628. 
   (4) Processing the applicant's fingerprints for purposes of
conducting a background check.  
   (c) The portion of any fee assessed pursuant subdivision (a) that
is attributable to processing the applicant's fingerprints shall be
deposited in the account described in subdivision (e) of Section
11105 of the Penal Code. The remainder of the fee shall be deposited
in the Secondhand Dealer and Pawnbroker Fund, which is hereby
established in the State Treasury. Notwithstanding Section 13340 of
the Government Code, the revenue in the Secondhand Dealer and
Pawnbroker Fund is continuously appropriated to the Department of
Justice for the purpose of paying for the costs described in
paragraphs (1) to (3), inclusive, of subdivision (b).  
   (c) All licensees holding a license issued before the effective
date of the act adding this section pursuant to Section 21641 or
21642 of this code or Section 21300 or 21301 of the Financial Code
shall, within 120 days after enactment of the act adding this section
in the 2011-12 Regular Session, in addition to any fee required
under subdivision (a), pay a fee not to exceed two hundred
eighty-eight dollars ($288) to the Department of Justice.  
   (d) The fees paid pursuant to subdivisions (a) and (c) shall be
deposited in the Secondhand Dealer and Pawnbroker Fund, which is
hereby established in the State Treasury. Notwithstanding Section
13340 of the Government Code, the revenue in the fund is continuously
appropriated to the Department of Justice for the purpose of paying
for the costs described in paragraphs (1) to (3), inclusive, of
subdivision (b), except that the revenue received pursuant to
subdivision (c) is continuously appropriated to the Department of
Justice for the purpose of paying for the costs described in
paragraph (3) of subdivision (b).  
   (e) Applicants described in subdivision (a) shall submit to the
Department of Justice fingerprint images and related information
required by the Department of Justice for the purposes of obtaining
information as to the existence and contents of a record of state
convictions and state arrests and information as to the existence and
contents of a record of state arrests for which the Department of
Justice establishes that the person is free on bail or on his or her
own recognizance pending trial or appeal.  
   (1) The Department of Justice shall prepare a state level response
pursuant to paragraph (1) of subdivision (l) of Section 11105 of the
Penal Code.  
   (2) The Department of Justice shall provide subsequent
notification service pursuant to Section 11105.2 of the Penal Code
for applicants described in this subdivision.  
   (3) The Department of Justice shall charge a fee sufficient to
cover the cost of processing the request described in this
subdivision. The fee revenues shall be deposited in the Fingerprint
Fee Account and, notwithstanding Section 13340 of the Government
Code, shall be continuously appropriated to the department for the
purposes of paying the costs associated with this subdivision. 
  SEC. 6.  Section 21208 of the Financial Code is repealed.
  SEC. 7.  Section 21208 is added to the Financial Code, to read:
   21208.  A pawnbroker shall comply with the reporting requirements
imposed on secondhand dealers under Article 4 (commencing with
Section 21625) of Chapter 9 of Division 8 of the Business and
Professions Code.
  SEC. 8.  Section 21300 of the Financial Code is amended to read:
   21300.  (a) The chief of police, the sheriff, or, where
appropriate, the police commission  ,  shall accept
an application for and grant a license permitting the licensee to
engage in the business of pawnbroker, as defined in Section 21000, at
the address indicated on the application, to an applicant who has
complied with the requirements of Sections 21303, 21304, and 21305
and has not been convicted of an attempt to receive stolen property
or any other offense involving stolen property. Prior to the granting
of a license, the licensing authority shall submit the application
to the Department of Justice. If the Department of Justice does not
comment on the application within 30 days thereafter, the licensing
authority shall grant the applicant a license. All forms for
application and licensure, and license renewal, shall be prescribed
and provided by the Department of Justice. A fee  may
  shall  be charged to the applicant by the
Department of Justice, as specified in Section 21642.5 of the
Business and Professions Code, for processing the initial license
application  and funding the statewide, uniform electronic
reporting system set forth in subdivision (j) of Section 21628. A fee
not to exceed the actual costs of processing the application by the
police chief, sheriff, or where appropriate, the police commission
may be charged to the applicant to recover the actual costs of
processing the application by these entities  .
   (b) For the purposes of this section, "convicted" means a plea or
verdict of guilty or a conviction following a plea of nolo
contendere.
   (c) Notwithstanding subdivisions (a) and (b), no person shall be
denied a pawnbroker's license solely on the grounds that he or she
violated any provision contained in Chapter 1 (commencing with
Section 21000) or Chapter 2 (commencing with Section 21200), or any
provision contained in Article 4 (commencing with Section 21625) or
Article 5 (commencing with Section 21650) of Chapter 9 of Division 8
of the Business and Professions Code, unless the violation
demonstrates a pattern of conduct.
  SEC. 9.  Section 21301 of the Financial Code is amended to read:
   21301.  (a) A license granted pursuant to Section 21300 shall be
renewable the second year from the date of issue, and every other
year thereafter, upon the filing of a renewal application, payment of
a renewal fee specified by the licensing authority, and compliance
with the requirements of Section 21303. The Department of Justice
 may   shall  also require the licensee
 , in addition to any locally assessed fee as set forth herein,
 to pay a fee as described in Section 21642.5 of the Business
and Professions Code.  The police chief, sheriff, or, where
appropriate, the police commission may charge a fee, not to exceed
the actual costs incurred to process the renewal application of the
licensee. 
   (b) The license shall be subject to forfeiture by the licensing
authority, and the licensee's activities as a pawnbroker shall be
subject to being enjoined pursuant to Section 21302, for breach of
any of the following conditions:
   (1) The business shall be carried on only at the location
designated on the license. The license shall designate all locations
where property belonging to the business is stored. Property of the
business may be stored at locations not designated on the license
only with the written consent of the local licensing authority.
   (2) The license or a copy thereof, certified by the licensing
authority, shall be displayed on the premises in plain view of the
public.
   (3) The licensee shall not engage in any act that the licensee
knows to be in violation of this article.
   (4) The licensee shall not be convicted of an attempt to receive
stolen property or other offense involving stolen property. For the
purposes of this paragraph, "convicted" means a plea or verdict of
guilty or a conviction following a plea of nolo contendere. Any
action that the chief of police, the sheriff, or, where appropriate,
the police commission  ,  is permitted to take
following that conviction may be taken when the time for appeal has
elapsed, the judgment of conviction has been affirmed on appeal, or
an order granting
probation is made suspending the imposition of sentence, irrespective
of a subsequent order under Section 1203.4 of the Penal Code.
   (c) Notwithstanding subdivisions (a) and (b), no renewal
application for a pawnbroker's license may be denied, nor may his or
her pawnbroker's license be forfeited, solely on the grounds that the
applicant violated any provision contained in Chapter 1 (commencing
with Section 21000) or Chapter 2 (commencing with Section 21200), or
any provision contained in Article 4 (commencing with Section 21625)
or Article 5 (commencing with Section 21650) of Chapter 9 of Division
8 of the Business and Professions Code, unless the violation
demonstrates a pattern of conduct.
  SEC. 10.  The Legislature finds and declares that the initial
licensure and renewal fees authorized by Section 21642.5 of the
Business and Professions Code, as proposed to be added by Section 5
of this act, are necessary to implement and maintain the statewide,
uniform electronic reporting system and constitute charges imposed
for the specific benefit of secondhand dealers and pawnbrokers under
paragraph (1) of subdivision (b) of Section 3 of Article XIII A of
the California Constitution. The Legislature finds and declares that
these fees eliminate the costly and risk-prone paper reporting system
required of these businesses under existing law.
   The Legislature further finds and declares that the initial
licensure and renewal fees authorized by Section 21642.5 of the
Business and Professions Code, as proposed to be added by Section 5
of this act, are imposed for the reasonable regulatory costs to the
state incident to issuing licenses and performing investigations
under paragraph (3) of subdivision (b) of Section 3 of Article XIII A
of the California Constitution. The Legislature finds and declares
that these fees are no more than necessary to offset the costs
incurred by the Department of Justice in processing licensure and
renewal applications for secondhand dealers and pawnbrokers and
implementing and maintaining a statewide, uniform electronic
reporting system required to effectuate the legislative intent
expressed in Section 21625 of the Business and Professions Code.
   SEC. 11.    Notwithstanding subdivision (d) of
Section 21642.5 of the Business and Professions Code, the sum of two
million five hundred thousand dollars ($2,500,000) is hereby
appropriated from the Secondhand Dealer and Pawnbroker Fund created
by Section 21642.5 of the Business and Professions Code to the
Department of Justice for the purpose of implementing the statewide,
uniform electronic reporting system described in subdivision (j) of
Section 21628 of the Business and Professions Code. 
   SEC. 11.   SEC. 12.   This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
   In order to make the uniform, statewide electronic reporting
system available to secondhand dealers and pawnbrokers as soon as
possible, it is necessary that this act take effect immediately.