BILL ANALYSIS Ó
AB 391
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 391 (Pan)
As Amended June 27, 2012
2/3 vote. Urgency
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|ASSEMBLY: | |(June 1, 2011) |SENATE: |36-0 |(July 2, 2012) |
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(vote not relevant)
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|COMMITTEE VOTE: |8-0 |(July 3, 2012) |RECOMMENDATION: |concur |
|(B.,P. & C.P.) | | | | |
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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; secondhand
dealers shall continue to report on paper form.
4)Require a coin dealer who engages in less than 10 transactions
each week, to report daily, as specified.
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.
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6)Revise the requirements for a secondhand dealer's renewal
application.
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
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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.
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
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new/renewed licensees and/or increased 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: 0004388