BILL NUMBER: AB 391	CHAPTERED
	BILL TEXT

	CHAPTER  172
	FILED WITH SECRETARY OF STATE  AUGUST 17, 2012
	APPROVED BY GOVERNOR  AUGUST 17, 2012
	PASSED THE SENATE  JULY 2, 2012
	PASSED THE ASSEMBLY  AUGUST 6, 2012
	AMENDED IN SENATE  JUNE 27, 2012
	AMENDED IN SENATE  JUNE 7, 2012
	AMENDED IN SENATE  MAY 9, 2012
	AMENDED IN SENATE  APRIL 18, 2012
	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, Buchanan, Charles
Calderon, Campos, Cedillo, Conway, Davis, Donnelly, Eng, Fong,
Fuentes, Beth Gaines, Garrick, Gatto, Gordon, Gorell, Grove, Hagman,
Hall, Roger Hernández, Hill, Hueso, Jeffries, Jones, Lara, Logue, Ma,
Mendoza, Miller, Morrell, Nestande, Nielsen, Norby, Olsen, Perea, V.
Manuel Pérez, Portantino, Smyth, 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, Hernandez, Huff, Leno, Lieu, Liu, Lowenthal,
Padilla, Price, Runner, Strickland, Vargas, Walters, Wyland, and
Yee)

                        FEBRUARY 14, 2011

   An act to amend Sections 21627, 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, and
declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 391, Pan. Secondhand dealers and pawnbrokers: electronic
reporting.
   (1) Existing law generally requires secondhand dealers and coin
dealers, as defined, to report specified transactions involving
tangible personal property, on forms provided or approved by the
Department of Justice, to the local law enforcement agency where
their businesses are located. Existing law defines "tangible personal
property" for these purposes, and excludes from that definition,
among other items, commercial grade ingots defined to include, among
other items, 0.99 fine ingots of gold, silver, or platinum.
   This bill would revise the definition of commercial grade ingots
to include 0.99 fine or finer ingots of gold, silver, palladium, or
platinum.
   Under existing law, secondhand dealers and coin dealers are
required to report the information described above using an
electronic reporting system 12 months after the Department of Justice
develops that system.
   This bill would eliminate the electronic filing requirements for
coin dealers, and would instead require that secondhand dealers
report this information using the single, statewide, uniform
electronic reporting system on and after the date that the system is
implemented, as specified.
   (2) 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 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 single, statewide, uniform
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 be deposited in the Secondhand Dealer and
Pawnbroker Fund, which the bill would create in the State Treasury.
The bill would require that the money in the fund be used by the
department, upon appropriation by the Legislature, for the purpose of
paying for specified regulatory costs, including the cost of
implementing, operating, and maintaining the single, statewide,
uniform electronic reporting system. 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 make those
revenues available to the Department of Justice, upon appropriation
by the Legislature, for these purposes.
   This bill would make findings and declarations of the Legislature,
and state the intent of the Legislature, with regard to these
matters. The bill would make other related conforming changes.
   The bill would declare that it is to take effect immediately as an
urgency statute.


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 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 21627 of the Business and Professions Code is
amended to read:
   21627.  (a) As used in this article, "tangible personal property"
includes, but is not limited to, all secondhand tangible personal
property which bears a serial number or personalized initials or
inscription or which, at the time it is acquired by the secondhand
dealer, bears evidence of having had a serial number or personalized
initials or inscription.
   (b) "Tangible personal property" also includes, but is not limited
to, the following:
   (1) All tangible personal property, new or used, including motor
vehicles, received in pledge as security for a loan by a pawnbroker.
   (2) All tangible personal property that bears a serial number or
personalized initials or inscription which is purchased by a
secondhand dealer or a pawnbroker or which, at the time of such
purchase, bears evidence of having had a serial number or
personalized initials or inscription.
   (3) All personal property commonly sold by secondhand dealers
which statistically is found through crime reports to the Attorney
General to constitute a significant class of stolen goods. A list of
such personal property shall be supplied by the Attorney General to
all local law enforcement agencies. Such list shall be reviewed
periodically by the Attorney General to insure that it addresses
current problems with stolen goods.
   (c) As used in this article, "tangible personal property" does not
include any new goods or merchandise purchased from a bona fide
manufacturer or distributor or wholesaler of such new goods or
merchandise by a secondhand dealer. For the purposes of this article,
however, a secondhand dealer shall retain for one year from the date
of purchase, and shall make available for inspection by any law
enforcement officer, any receipt, invoice, bill of sale or other
evidence of purchase of such new goods or merchandise.
   (d) As used in this article, "tangible personal property" does not
include coins, monetized bullion, or commercial grade ingots of
gold, silver, or other precious metals. "Commercial grade ingots"
means 0.99 fine or finer ingots of gold, silver, palladium, or
platinum, or 0.925 fine sterling silver art bars and medallions,
provided that the ingots, art bars, and medallions are marked by the
refiner or fabricator as to their assay fineness.
  SEC. 3.  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 secondhand tangible personal property, on
forms or through an electronic reporting system approved 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).
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) (1) 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.
   (2) 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. Except as
otherwise provided in this section, any report required of a
secondhand dealer shall be transmitted by electronic means. With the
consultation by the Department of Justice with local law enforcement
agencies and representatives from the secondhand 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 these secondhand dealer
reports.
   (2) (A) Until the date that the Department of Justice implements
the single, statewide, uniform electronic reporting system described
in paragraph (1), each secondhand dealer may continue to report the
information required by this section under the reporting categories
described in paragraph (1) in paper 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 single, statewide, uniform electronic reporting system
described in paragraph (1), each secondhand 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 shall also report the information in
paper format as described in subparagraph (A).
   (3) A coin dealer 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.
   (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.
  SEC. 4.  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 shall be charged to
the applicant by the Department of Justice as specified in Section
21642.5. The licensing authority shall collect the fee and transmit
the fee to the Department of Justice. In addition, the police chief,
the sheriff, or, where appropriate, the police commission, may charge
a fee to the applicant not to exceed the actual costs incurred to
process the application and to collect and transmit the fee charged
by the Department of Justice.
   (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. 5.  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, as described in this subdivision. The Department of
Justice 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. 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 and to collect and transmit the
fee charged by the Department of Justice.
   (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. 6.  Section 21642.5 is added to the Business and Professions
Code, to read:
   21642.5.  (a) The Department of Justice 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 single,
statewide, uniform electronic reporting system described in
subdivision (j) of Section 21628.
   (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. The revenue in the fund
shall, upon appropriation by the Legislature, be used by 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) shall,
upon appropriation by the Legislature, be used by 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 shall, upon appropriation by the Legislature, be used
by the department for the purposes of paying the costs associated
with this subdivision.
  SEC. 7.  Section 21208 of the Financial Code is repealed.
  SEC. 8.  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. 9.  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 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 single, statewide, uniform electronic
reporting system set forth in subdivision (j) of Section 21628 of the
Business and Professions Code. The licensing authority shall collect
the fee and transmit the fee to the Department of Justice. In
addition, the police chief, sheriff, or, where appropriate, the
police commission, may charge a fee to the applicant not to exceed
the actual costs incurred to process the application and to collect
and transmit the fee charged by the Department of Justice.
   (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. 10.  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 as described in
this subdivision, and compliance with the requirements of Section
21303. The Department of Justice 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 licensing authority shall collect the fee and transmit the
fee and a copy of the renewed license to the Department of Justice.
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 and to collect and
transmit the fee charged by the Department of Justice.
   (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. 11.  The Legislature finds and declares that secondhand
dealers and pawnbrokers will receive a clear benefit from the
electronic reporting system. Pawnbrokers and secondhand dealers are
currently required to report on paper forms approved or provided by
the Department of Justice and to maintain specified records for five
years. The current requirements cost pawnbrokers and secondhand
dealers between fourteen thousand dollars ($14,000) and one hundred
thousand dollars ($100,000) a month. The electronic reporting system
will eliminate the costly and risk-prone paper form reporting system
required of these businesses under existing law and replace it with a
more cost-effective electronic reporting system.
  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 single, statewide, uniform electronic
reporting system available to secondhand dealers and pawnbrokers as
soon as possible, it is necessary that this act take effect
immediately.