BILL ANALYSIS Ó
AB 391
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CONCURRENCE IN SENATE AMENDMENTS
AB 391 (Pan)
As Amended June 7, 2012
2/3 vote. Urgency
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|ASSEMBLY: | |(June 1, 2011) |SENATE: |35-0 |(June 14, |
| | | | | |2012) |
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(vote not relevant)
Original Committee Reference: L.& E.
SUMMARY : Establishes the process and fee schedule to implement
a single, statewide, uniform electronic reporting system for
pawnbrokers and secondhand dealers as specified administered by
the Department of Justice (DOJ).
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Authorize the DOJ, in consultation with local law enforcement,
to develop a single, statewide, uniform electronic reporting
system.
2)Provide until the single, statewide, uniform electronic
reporting system is implemented for information to be reported
by the current paper format.
3)Authorize for 30 days, that the DOJ implements the single,
statewide, uniform electronic reporting system, dealers shall
continue to report on paper form.
4)Require a coin dealer who makes more than 10 transactions per
week to electronically report using the single, statewide,
uniform electronic reporting system.
5)Provide that the secondhand dealer and pawnbroker licensing
authority, as specified, shall collect a fee not to exceed the
actual costs incurred to process the application and transmit
the fee to the DOJ.
6)Revise the requirements for a secondhand dealer's renewal
application.
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7)Require each applicant for initial license and renewal license
to pay a fee not to exceed $300, as specified, to the DOJ.
8)Provide that the fees assessed shall be no more than necessary
to cover reasonable and regulatory costs to the DOJ for the
following:
a) Processing initial license applications;
b) Processing renewal applications; and,
c) Implementing, operating and maintaining the single,
statewide, uniform electronic reporting system.
9)Provide that within 120 days of the effective date of this
bill, all licensees holding a license issued before the
effective date of this bill, shall pay a fee not to exceed
$288 to DOJ.
10)Establish the Secondhand Dealer and Pawnbroker Fund, as
specified.
11)Require an applicant to submit fingerprint images and related
information required by the DOJ for the purposes of obtaining
specified criminal history.
12)Authorize the DOJ to charge a fee to cover the costs of
processing the criminal record check process.
13)Add an urgency clause.
EXISTING LAW :
1)Defines "secondhand dealer" to include any person,
co-partnership, firm, or corporation whose business includes
buying, selling, trading, taking in pawn, accepting for sale
on consignment, accepting for auctioning, or auctioning
secondhand tangible personal property.
2)Requires every secondhand dealer or coin dealer to report
daily, to local law enforcement or on the first working day
after receipt or purchase of the property, on specified forms
approved by the DOJ, all tangible personal property, except
for firearms, taken in trade, taken in pawn, accepted for sale
on consignment, or accepted for auctioning.
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3)Establishes identification requirements for the intended
seller or pledger of the property and requires it be verified
by the person taking the information, as specified.
4)Authorizes law enforcement to accept applications and grant a
license permitting the licensee to engage in the business of
secondhand dealer, as defined, to an applicant who has not
been convicted of an attempt to receive stolen property or any
other offense involving stolen property.
5)Establishes specified requirements for 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.
AS PASSED BY THE ASSEMBLY , this bill required the Employment
Development Department (EDD), on or before July 1, 2012, to
provide in-person unemployment benefit assistance in five of the
comprehensive state one-stop career centers. It further
provided that the unemployment benefit services would be funded
with existing monies available to the EDD for the administration
of the unemployment insurance compensation program.
FISCAL EFFECT : According to the Senate Appropriations
Committee:
One-time costs of $1.2 million (Special Fund) to the DOJ in
2012-13 to develop the electronic reporting system, to be offset
through the collection of a combination of fees, both from a
new/renewal license fee of $300 and a one-time fee of $288
imposed on pre-existing licensees. The DOJ estimates $1,382,000
in fees will be collected from an estimated 4,800 licensees
statewide within 120 days of the bill's enactment. Additional
time may be required for sufficient funding to be available to
initiate development of the system to the extent there are fewer
licensees statewide.
Ongoing costs of $691,000 (Special Fund) in 2013-14 and
thereafter to the DOJ to operate and maintain the electronic
reporting system, to be offset by biennial license renewal fees
and new license application fees of $720,000 from an estimated
2,400 licensees in 2013-14 and annually thereafter. +To the
extent there are fewer new/renewed licensees and/or increased
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costs for ongoing system operation and maintenance, annual costs
in the initial years of operation may not be fully covered by
fees.
Potential increase in the Proposition 98 minimum funding
guarantee in the range of $550,000 one-time and $288,000
(General Fund) ongoing should the increased revenues be
considered General Fund proceeds of taxes for purposes of
calculating the minimum school funding obligation.
Ongoing costs to the DOJ to process fingerprint images for new
licensees, to be fully offset by fees of $32 per applicant
(Fingerprint Fee Account).
Ongoing costs to local licensing authorities, to be offset by
fees authorized to be charged to applicants to recover the
actual costs of processing applications. Clarifying language to
include costs for the collection and transmittal of license fees
in the authorized fee is recommended to ensure full cost
recovery by licensing agencies.
Some degree of economic stimulus resulting from cost savings
realized by affected businesses through operational efficiencies
gained by transitioning from the paper reporting process to the
electronic reporting system.
Non-reimbursable local enforcement costs for increased
enforcement of licensing requirements and investigations
associated with the recovery of stolen property.
COMMENTS : According to the author, "this bill increases the
licensing fee paid by secondhand dealers and pawn brokers to
$300 biennially, to fund the development and operation of a
personal property database with the DOJ."
This bill was substantially amended in the Senate and the
Assembly-approved provisions of this bill were deleted. This
bill, as amended in the Senate, is inconsistent with the
Assembly actions.
Analysis Prepared by : Elissa Silva / B.,P. & C.P. / (916)
319-3301
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FN: 0004070