Amended in Assembly June 4, 2013

Amended in Senate April 15, 2013

Senate Bill No. 762

Introduced by Senator Hill

February 22, 2013

An act to amend Section 21647 of the Business and Professions Code, to amend Section 21206.8 of the Financial Code, and to amend Sections 186.2, 186.8, 1411, and 11108.5 of the Penal Code, relating to secondhand begin delete goods, and making an appropriation therefor. end delete begin insert goods. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 762, as amended, Hill. Secondhand goods: lost, stolen, or embezzled items.

(1) Existing law provides for the regulation of secondhand dealers, as defined, and makes it unlawful for a person to engage in the business of a secondhand dealer without a license issued by the chief of police, the sheriff, or, where appropriate, the police commission. Existing law makes it a crime, punishable by specified fines or imprisonment, or both, if a person knowingly violates the provisions regulating secondhand dealers. Existing law authorizes the district attorney or the Attorney General to bring an action to enjoin a violation or threatened violation of the provisions regulating secondhand dealers.

This bill would make operating a secondhand business begin delete without being licensed end delete begin insert in violation of those licensing provisions end insert a “criminal profiteering activity” and would include the unlicensed operation of a secondhand dealer begin insert business end insert without reporting acquisitions as required by existing law within the definition of “organized crime.”

(2) Existing law, the California Control of Profits of Organized Crime Act, defines criminal profiteering as any act committed or attempted, or any threat made for financial gain or advantage, that may be charged as a crime under specified provisions. Under existing law, property and assets acquired or received in exchange for the proceeds immediately derived from the pattern of criminal profiteering activity are subject to forfeit. The money proceeds from that forfeiture are distributed as prescribed.

This bill would prescribe that funds derived from a forfeiture of lost, stolen, or embezzled items seized from a pawnbroker or secondhand dealer be distributed begin delete 45% to initiating law enforcement agency, 45% to prosecuting attorney’s office, and 10% to the Restitution Fund, a continuously appropriated fund, thereby making an appropriation end delete begin insert 50% to the general fund of the city, county, or city and county that instituted the forfeiture and 50% to the general fund of the city, county, or city and county that prosecuted the forfeiture end insert .

(3) Existing law authorizes a peace officer to place a begin insert 90-day end insert hold on property in possession of a pawnbroker, secondhand dealer, or coin dealer if the peace officer has probable cause to believe that property is stolen, as specified, and regulates the manner in which the property is placed on hold, persons claiming the property are notified, and disputes arising out of claims for the property are adjudicated, as provided.

This bill would revise these provisions to, among other things, authorize a peace officer to also place a hold on property that the officer has probable cause to believe is lost or begin delete embezzled or to seize the property, as specified, limit the end delete begin insert embezzled. The bill would limit these end insert provisions to licensed pawnbrokers and secondhand begin delete dealers, end delete begin insert dealers and would end insert revise notification procedures regarding lost, stolen, or embezzled begin delete property, and end delete begin insert property. The bill would permit the law enforcement agency to extend the hold beyond 90 days, as specified, until the conclusion of the criminal proceedings. The bill would authorize a peace officer to take physical possession of property as evidence if the property is placed on hold. The bill would provide that if a search warrant is issued for the search of the business of a licensed pawnbroker or secondhand dealer to secure lost, stolen, or embezzled property, the hold would continue as long as the property is subject to the jurisdiction of the court. The bill would also end insert require a person claiming ownership of the property to file a written statement, signed under penalty of perjury, stating the factual basis upon which they claim ownership or an interest in the property. This bill would require law enforcement to return begin delete seized end delete property begin insert that it has taken physical possession of end insert at the conclusion of the criminal proceedings. begin delete This bill would also authorize the issuance of a search warrant in specified circumstances, including where the property is being concealed by a pawnbroker who is the subject of a criminal investigation or if a pawnbroker or secondhand dealer refuses to honor the hold upon request of a peace officer. end delete

(4) Because a knowing violation of the bill’s provisions by a person engaging in the business of a secondhand dealer would be a crime, and because the bill would expand the crime of perjury, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation:  begin delete yes end delete begin insert no end insert . Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 21647 of the Business and Professions
Code is amended to read:

21647.  

(a)  begin insert (1) end insert begin insert   end insert If a peace officer has probable cause to believe
that property, except coins, monetized bullion, or “commercial
grade ingots” as defined in subdivision (d) of Section 21627, in
the possession of a licensed pawnbroker or secondhand dealer is
lost, stolen, or embezzled, the peace officer may place a hold on
the property for a period not to exceed 90 days. begin delete When a peace
officer places a hold on the property, the peace officer shall give
the licensed pawnbroker or secondhand dealer a written notice at
the time the hold is placed, describing the item or items to be held.
During that period the peace officer may take custody of the
property as evidence or leave it with the licensed pawnbroker or
secondhand dealer. If the peace officer placing the hold leaves the
item with the licensed pawnbroker or secondhand dealer, that
pawnbroker or secondhand dealer shall not release or dispose of
the property, except pursuant to a court order or upon receipt of a
written authorization signed by any peace officer who is a member
of the law enforcement agency of which the peace officer placing
the hold on the property is a member. A licensed pawnbroker or
secondhand dealer is not subject to civil liability for compliance
with this section. end delete

begin insert

(2) A 90-day hold issued pursuant to this section:

end insert begin insert

(A) Is created upon the receipt by a licensed pawnbroker or
secondhand dealer of a written notice by a peace officer that
contains the following:

end insert begin insert

(i) An accurate description of the property being placed on the
90-day hold.

end insert begin insert

(ii)  An acknowledgment that the property is being placed on
hold pursuant to this section and denoting whether physical
possession will remain with the licensed pawnbroker or
secondhand dealer or will be taken by the law enforcement agency
instituting the 90-day hold.

end insert begin insert

(iii) The law enforcement agency’s police report or department
record number, if issued, for which the property is needed as
evidence.

end insert begin insert

(iv) The date the notice was delivered to the licensed pawnbroker
or secondhand dealer that shall initiate the notification period set
forth in subdivisions (c) and (g).

end insert begin insert

(B) Will not exceed a period of 90 calendar days, but may be
renewed as provided in subparagraph (C).

end insert begin insert

(C) May be renewed as often as is required for a criminal
investigation or criminal proceeding by any peace officer who is
a member of the same law enforcement agency as the peace officer
placing the hold on the property.

end insert begin insert

(D) Permits a peace officer to either take physical possession
of the property as evidence, consistent with a peace officer’s right
to a plain view seizure for a criminal investigation or criminal
proceeding, or to leave the property in the possession of the
licensed pawnbroker or secondhand dealer as a custodian on
behalf of the law enforcement agency.

end insert begin insert

(E) Requires the licensed pawnbroker or secondhand dealer to
maintain physical possession of the property placed on hold and
prohibits the property’s release or disposal, except pursuant to
the written authorization signed by a peace officer who is a member
of the same law enforcement agency as the peace officer placing
the hold on the property.

end insert begin insert

(F) Terminates when the property is no longer needed as
evidence in a criminal investigation or criminal proceeding, at
which time the property shall be disposed of pursuant to
subdivision (d).

end insert begin insert

(G) Shall not be applicable to secure lost, stolen, or embezzled
property found in the possession of an unlicensed pawnbroker or
secondhand dealer that has not duly and correctly reported the
acquisition pursuant to Section 21628. In such a circumstance, a
peace officer, having probable cause to believe the property found
in the possession of an unlicensed pawnbroker or secondhand
dealer is lost, stolen, or embezzled, may seize the item or items
consistent with the authority granted the peace officer under the
Penal Code or any other law.

end insert

(b) (1) Whenever property that is in the possession of a licensed
pawnbroker or secondhand dealer, and that has been placed on
hold pursuant to this section, is required by a peace officer in a
criminal investigation, the licensed pawnbroker or secondhand
dealer, upon reasonable notice, shall produce the property at
reasonable times and places or may deliver the property to the
peace officer upon the request of any peace officer.

(2) If property placed on hold pursuant to this section is
physically surrendered or delivered to a law enforcement agency
during the period of the hold, the hold and the pawnbroker’s lien
against the property shall continue. begin delete Upon termination of criminal
proceedings for which the property was placed on hold, the
property shall be returned to the licensed pawnbroker from whom
it was taken for disposition provided under subdivision (d). end delete

(c) Whenever a law enforcement agency has knowledge that
property in the possession of a licensed pawnbroker or secondhand
dealer has been reported as lost, stolen, or embezzled, the law
enforcement agency shall, within two business days after placing
the hold on the property pursuant to this section, notify in writing
the person who reported the property as lost, stolen, or embezzled
of the following:

(1) The name, address, and telephone number of the licensed
pawnbroker or secondhand dealer who reported the acquisition of
the property.

(2) That the law neither requires nor prohibits payment of a fee
or any other condition in return for the surrender of the property,
except that when the person who reported the property lost, stolen,
or embezzled does not choose to participate in the prosecution of
an identified alleged thief, the person shall pay the licensed
pawnbroker or secondhand dealer the “out-of-pocket” expenses
paid in the acquisition of the property in return for the surrender
of the property.

(3) That if the person who reported the property as lost, stolen,
or embezzled takes no action to recover the property from the
licensed pawnbroker or secondhand dealer within 60 days of the
mailing of the notice, the licensed pawnbroker or secondhand
dealer may treat the property as other property received in the
ordinary course of business. During the 60-day notice period, the
licensed pawnbroker or secondhand dealer may not release the
property to any other person.

(4) That a copy of the notice, with the address of the person
who reported the property as lost, stolen, or embezzled deleted,
will be mailed to the licensed pawnbroker or secondhand dealer
who is in possession of the property.

(d) When property that is in the possession of a licensed
pawnbroker or secondhand dealer is subject to a hold as provided
in subdivision (a), and the property is no longer required for the
purpose of a criminal investigation begin insert or criminal proceeding end insert , the
law enforcement agency that placed the hold on the property shall
release the hold on the property and return the property to the
licensed pawnbroker or secondhand dealer from which it was taken
if the begin insert law enforcement end insert agency took physical possession of the
property.

(e) If a pledgor seeks to redeem property that is subject to a
hold, the licensed pawnbroker shall advise the pledgor of the name
of the peace officer who placed the hold on the property and the
name of the law enforcement agency of which the officer is a
member. If the property is not required to be held pursuant to a
criminal prosecution the hold shall be released.

(f) Whenever information regarding allegedly lost, stolen, or
embezzled property is entered into the Department of Justice
automated property system or automated firearms system, and the
property is thereafter identified and found to be in the possession
of a licensed pawnbroker or secondhand dealer, the property shall
be placed on a hold pursuant to this section and Section 11108.5
of the Penal Code.

(g) If the hold, including any additional hold, is allowed to lapse,
or 60 days elapse following the delivery of the notice required to
be given by subdivision (c) to the person who reported the property
to be lost, stolen, or embezzled without a claim being made by
that person, whichever is later, the licensed pawnbroker or
secondhand dealer may mail under a certificate of mailing issued
by the United States Post Office, addressed to the law enforcement
agency that placed the property on hold, a written request to delete
the property listing from the Department of Justice automated
property system or automated firearms system, as is applicable.
Within 30 days after the request has been mailed, the law
enforcement agency shall either cause the property listing to be
deleted as requested or place a hold on the property. If no law
enforcement agency takes any further action with respect to the
property within 45 days after the mailing of the request, the
licensed pawnbroker or secondhand dealer may presume that the
property listing has been deleted as requested and may thereafter
deal with the property accordingly, and shall not be subject to
liability arising from the failure of the removal of the property
listing from the Department of Justice automated property system
or automated firearms system.

(h) A licensed pawnbroker or secondhand dealer shall not refuse
a request to place property in their possession on hold pursuant to
this section when a peace officer has probable cause to believe the
property is lost, stolen, or embezzled. If a licensed pawnbroker or
secondhand dealer refuses a request to place property on hold
pursuant to this section, begin delete after being provided written notice of the
provisions of this section, end delete the property may be seized with or
without a warrant. The peace officer shall issue a receipt, as
described in Section 21206.7 of the Financial Code, left with the
licensed pawnbroker or secondhand dealer. The property shall be
disposed of pursuant to procedures set forth in Section 21206.8 of
the Financial Code, which shall apply to both licensed pawnbrokers
and secondhand dealers under this section.

(i)  begin delete A end delete begin insert If a end insert search warrant begin delete shall not be end delete begin insert is end insert issued for the search of
the business of a licensed pawnbroker or secondhand begin delete dealer, unless
the application by the peace officer discloses and the court so
concludes that either (1) the evidence sought to be secured by the
search warrant is sought for its evidentiary value other than being
property that is lost, stolen, or embezzled; (2) the peace officer’s
prior efforts taken to utilize the hold procedures set forth in this
section establishes to the court’s satisfaction that the licensed
pawnbroker or secondhand dealer has refused to voluntarily
surrender the lost, stolen, or embezzled property; or that (3) there
is probable cause to believe that the lost, stolen, or embezzled
property is willfully being concealed by the licensed pawnbroker
or secondhand dealer and that any notice required by this section
would frustrate the criminal investigation of the licensed
pawnbroker or secondhand dealer end delete begin insert dealer to secure lost, stolen, or
embezzled property that has been placed on hold, the hold shall
continue for the duration that the property remains subject to the
court’s jurisdiction. Notwithstanding any other law, when the use
of the property seized for a criminal investigation or criminal
proceeding has concluded, the property shall be disposed of
pursuant to subdivision (d) end insert .

(j) If a civil or criminal court is called upon to adjudicate the
competing claims of a licensed pawnbroker or secondhand dealer
and another party claiming ownership or an interest in the property
that is or was subject to a hold pursuant to this section, the court
shall award possession of the property only after due consideration
is given to the effect of Section 2403 of the Commercial Code.

begin insert

(k) A licensed pawnbroker or secondhand dealer is not subject
to civil liability for compliance with this section.

end insert

SEC. 2.  

Section 21206.8 of the Financial Code is amended to
read:

21206.8.  

(a) Notwithstanding the provisions of Chapter 12
(commencing with Section 1407) of Title 10 of Part 2 of the Penal
Code, whenever property alleged to have been lost, stolen, or
embezzled is taken from a pawnbroker, the peace officer,
magistrate, court, clerk, or other person having custody of the
property shall not deliver the property to any person claiming
ownership unless the provisions of this section are complied with.

(b) (1) If any person makes a claim of ownership, the person
shall file a written statement, signed under penalty of perjury,
stating the factual basis upon which they claim ownership or an
interest in the property with the person having custody of the
property, and the person having custody of the property shall notify
the pawnbroker of the claim by providing a true and correct copy
of the claim to the pawnbroker.

(2) If the pawnbroker makes no claim with respect to the
property within 10 days of such notification, the property may be
disposed of as otherwise provided by law.

(3) In adjudicating the competing claims of a pawnbroker and
a person claiming ownership or an interest in the property seized
from a pawnbroker, the adjudicating court shall give due
consideration to the effect Section 2403 of the Commercial Code
may have on the claims.

(4) At least 30 calendar days before any hearing adjudicating
any competing claims of a pawnbroker and a person claiming
ownership or an interest in the property, the person having custody
of the property shall deliver to the pawnbroker a true and correct
copy of the police report begin insert , redacted as may be required by law and
consistent with due process of law, end insert substantiating the basis of the
seizure of the property from the pawnbroker.

(c) If property alleged to have been stolen or embezzled is taken
from a pawnbroker, prior to any disposal of the property pursuant
to Section 1411 of the Penal Code, the notice to be given to the
owner and owner of a security interest pursuant to Section 1411
shall be given to the pawnbroker. Such property shall not be
disposed of pursuant to Section 1411 until three months after such
notice has been given.

(d) A pawnbroker shall not be liable to any person for any
property seized from the pawnbroker on account of the
pawnbroker’s inability to return the property to that person because
of the seizure.

SEC. 3.  

Section 186.2 of the Penal Code is amended to read:

186.2.  

For purposes of this chapter, the following definitions
apply:

(a) “Criminal profiteering activity” means any act committed
or attempted or any threat made for financial gain or advantage,
which act or threat may be charged as a crime under any of the
following sections:

(1) Arson, as defined in Section 451.

(2) Bribery, as defined in Sections 67, 67.5, and 68.

(3) Child pornography or exploitation, as defined in subdivision
(b) of Section 311.2, or Section 311.3 or 311.4, which may be
prosecuted as a felony.

(4) Felonious assault, as defined in Section 245.

(5) Embezzlement, as defined in Sections 424 and 503.

(6) Extortion, as defined in Section 518.

(7) Forgery, as defined in Section 470.

(8) Gambling, as defined in Sections 337a to 337f, inclusive,
and Section 337i, except the activities of a person who participates
solely as an individual bettor.

(9) Kidnapping, as defined in Section 207.

(10) Mayhem, as defined in Section 203.

(11) Murder, as defined in Section 187.

(12) Pimping and pandering, as defined in Section 266.

(13) Receiving stolen property, as defined in Section 496.

(14) Robbery, as defined in Section 211.

(15) Solicitation of crimes, as defined in Section 653f.

(16) Grand theft, as defined in Section 487.

(17) Trafficking in controlled substances, as defined in Sections
11351, 11352, and 11353 of the Health and Safety Code.

(18) Violation of the laws governing corporate securities, as
defined in Section 25541 of the Corporations Code.

(19) Any of the offenses contained in Chapter 7.5 (commencing
with Section 311) of Title 9, relating to obscene matter, or in
Chapter 7.6 (commencing with Section 313) of Title 9, relating to
harmful matter that may be prosecuted as a felony.

(20) Presentation of a false or fraudulent claim, as defined in
Section 550.

(21) False or fraudulent activities, schemes, or artifices, as
described in Section 14107 of the Welfare and Institutions Code.

(22) Money laundering, as defined in Section 186.10.

(23) Offenses relating to the counterfeit of a registered mark,
as specified in Section 350.

(24) Offenses relating to the unauthorized access to computers,
computer systems, and computer data, as specified in Section 502.

(25) Conspiracy to commit any of the crimes listed above, as
defined in Section 182.

(26) Subdivision (a) of Section 186.22, or a felony subject to
enhancement as specified in subdivision (b) of Section 186.22.

(27) Any offenses related to fraud or theft against the state’s
beverage container recycling program, including, but not limited
to, those offenses specified in this subdivision and those criminal
offenses specified in the California Beverage Container Recycling
and Litter Reduction Act, begin delete commencing at Section 14500 end delete begin insert Chapter
1 (commencing with Section 14500) of Division 12.1 end insert of the Public
Resources Code.

(28) Human trafficking, as defined in Section 236.1.

(29) Any crime in which the perpetrator induces, encourages,
or persuades a person under 18 years of age to engage in a
commercial sex act. For purposes of this paragraph, a commercial
sex act means any sexual conduct on account of which anything
of value is given or received by any person.

(30) Any crime in which the perpetrator, through force, fear,
coercion, deceit, violence, duress, menace, or threat of unlawful
injury to the victim or to another person, causes a person under 18
years of age to engage in a commercial sex act. For purposes of
this paragraph, a commercial sex act means any sexual conduct
on account of which anything of value is given or received by any
person.

(31) Theft of personal identifying information, as defined in
Section 530.5.

(32) Offenses involving the theft of a motor vehicle, as specified
in Section 10851 of the Vehicle Code.

(33) Abduction or procurement by fraudulent inducement for
prostitution, as defined in Section 266a.

(34) Buying, selling, trading, accepting for sale on consignment,
accepting for auctioning, or auctioning secondhand tangible
personal property as defined by Section 21627 of the Business and
Professions Code, including, but not limited to, gold, silver,
platinum, palladium, and jewelry made of gold, silver, platinum,
palladium, or having any diamond, ruby, emerald, or other precious
stone, or any item containing sterling or fine silver begin delete without being
licensed pursuant to end delete begin insert in violation of end insert Section 21640 of the Business
and Professions Code.

(b) (1) “Pattern of criminal profiteering activity” means
engaging in at least two incidents of criminal profiteering, as
defined by this chapter, that meet the following requirements:

(A) Have the same or a similar purpose, result, principals,
victims, or methods of commission, or are otherwise interrelated
by distinguishing characteristics.

(B) Are not isolated events.

(C) Were committed as a criminal activity of organized crime.

(2) Acts that would constitute a “pattern of criminal profiteering
activity” may not be used by a prosecuting agency to seek the
remedies provided by this chapter unless the underlying offense
occurred after the effective date of this chapter and the prior act
occurred within 10 years, excluding any period of imprisonment,
of the commission of the underlying offense. A prior act may not
be used by a prosecuting agency to seek remedies provided by this
chapter if a prosecution for that act resulted in an acquittal.

(c) “Prosecuting agency” means the Attorney General or the
district attorney of any county.

(d) “Organized crime” means crime that is of a conspiratorial
nature and that is either of an organized nature and seeks to supply
illegal goods and services such as narcotics, prostitution,
loan-sharking, gambling, and pornography, or that, through
planning and coordination of individual efforts, seeks to conduct
the illegal activities of arson for profit, hijacking, insurance fraud,
smuggling, operating vehicle theft rings, fraud against the beverage
container recycling program, or systematically encumbering the
assets of a business for the purpose of defrauding creditors.
“Organized crime” also means crime committed by a criminal
street gang, as defined in subdivision (f) of Section 186.22.
“Organized crime” also means false or fraudulent activities,
schemes, or artifices, as described in Section 14107 of the Welfare
and Institutions Code, and the theft of personal identifying
information, as defined in Section 530.5. “Organized crime” also
means the violation of Section 21640 of the Business and
Professions Code begin insert by any person engaged in business as a
secondhand dealer, as defined by Section 21626 of the Business
and Professions Code, end insert while not reporting acquisitions of
secondhand property as required by Section 21628 of the Business
and Professions Code.

(e) “Underlying offense” means an offense enumerated in
subdivision (a) for which the defendant is being prosecuted.

SEC. 4.  

Section 186.8 of the Penal Code is amended to read:

186.8.  

Notwithstanding that no response or claim has been
filed pursuant to Section 186.5, in all cases where property is
forfeited pursuant to this chapter and, if necessary, sold by the
Department of General Services or local governmental entity, the
money forfeited or the proceeds of sale shall be distributed by the
state or local governmental entity as follows:

(a) To the bona fide or innocent purchaser, conditional sales
vendor, or holder of a valid lien, mortgage, or security interest, if
any, up to the amount of his or her interest in the property or
proceeds, when the court declaring the forfeiture orders a
distribution to that person. The court shall endeavor to discover
all those lienholders and protect their interests and may, at its
discretion, order the proceeds placed in escrow for up to an
additional 60 days to ensure that all valid claims are received and
processed.

(b) To the Department of General Services or local governmental
entity for all expenditures made or incurred by it in connection
with the sale of the property, including expenditures for any
necessary repairs, storage, or transportation of any property seized
under this chapter.

(c) To the General Fund of the state or a general fund of a local
governmental entity, whichever prosecutes.

(d) In any case involving a violation of subdivision (b) of
Section 311.2, or Section 311.3 or 311.4, in lieu of the distribution
of the proceeds provided for by subdivisions (b) and (c), the
proceeds shall be deposited in the county children’s trust fund,
established pursuant to Section 18966 of the Welfare and
Institutions Code, of the county that filed the petition of forfeiture.
If the county does not have a children’s trust fund, the funds shall
be deposited in the State Children’s Trust Fund, established
pursuant to Section 18969 of the Welfare and Institutions Code.

(e) In any case involving crimes against the state beverage
container recycling program, in lieu of the distribution of proceeds
provided in subdivision (c), the proceeds shall be deposited in the
penalty account established pursuant to subdivision (d) of Section
14580 of the Public Resources Code, except that a portion of the
proceeds equivalent to the cost of prosecution in the case shall be
distributed to the local prosecuting entity that filed the petition of
forfeiture.

(f) (1) In any case described in paragraph (29) or (30) of
subdivision (a) of Section 186.2, or paragraph (33) of subdivision
(a) of Section 186.2 where the victim is a minor, in lieu of the
distribution provided for in subdivision (c), the proceeds shall be
deposited in the Victim-Witness Assistance Fund to be available
for appropriation to fund child sexual exploitation and child sexual
abuse victim counseling centers and prevention programs under
Section 13837. Fifty percent of the funds deposited in the
Victim-Witness Assistance Fund pursuant to this subdivision shall
be granted to community-based organizations that serve minor
victims of human trafficking.

(2) Notwithstanding paragraph (1), any proceeds specified in
paragraph (1) that would otherwise be distributed to the General
Fund of the state under subdivision (c) pursuant to a paragraph in
subdivision (a) of Section 186.2 other than paragraph (29) or (30)
of subdivision (a) of Section 186.2, or paragraph (33) of
subdivision (a) of Section 186.2 where the victim is a minor, shall,
except as otherwise required by law, continue to be distributed to
the General Fund of the state as specified in subdivision (c).

(g) In any case described in paragraph (34) of subdivision (a)
of Section 186.2, in lieu of the distribution provided for in
subdivision (c), the proceeds shall be distributed in the following
manner: begin delete (1) 45 end delete begin insert 50 end insert percent shall be distributed into the general fund
of the city, county, or city and county that instituted the forfeiture,
begin delete (2) 45 end delete begin insert and 50 end insert percent shall be distributed to the general fund of
the city, county, or city and county that prosecuted the begin delete forfeiture,
and (3) 10 percent shall be distributed to the Restitution Fund end delete
begin insert forfeiture end insert .

SEC. 5.  

Section 1411 of the Penal Code is amended to read:

1411.  

(a) If the ownership of the property stolen or embezzled
and the address of the owner, and the address of the owner of a
security interest therein, can be reasonably ascertained, the peace
officer who took custody of the property shall notify the owner,
and a person having a security interest therein, by letter of the
location of the property and the method by which the owner may
obtain it. This notice shall be given upon the conviction of a person
for an offense involving the theft, embezzlement, or possession of
the property, or if a conviction was not obtained, upon the making
of a decision by the district attorney not to file the case or upon
the termination of the proceedings in the case. Except as provided
in Section 217 of the Welfare and Institutions Code, if the property
stolen or embezzled is not claimed by the owner before the
expiration of three months after the giving of this notice, or, in any
case in which such a notice is not given, before the expiration of
six months from the conviction of a person for an offense involving
the theft, embezzlement, or possession of the property, or if a
conviction was not obtained, then from the time the property came
into the possession of the peace officer or the case involving the
person from whom it was obtained is disposed of, whichever is
later, the magistrate or other officer having it in custody may, on
the payment of the necessary expenses incurred in its preservation,
deliver it to the county treasurer or other proper county officer, by
whom it shall be sold and the proceeds paid into the county
treasury. However, notwithstanding any other law, if the person
from whom custody of the property was taken is a secondhand
dealer or licensed pawnbroker and reasonable but unsuccessful
efforts have been made to notify the owner of the property and the
property is no longer needed for the criminal proceeding, the
property shall be returned to the secondhand dealer or pawnbroker
who had custody of the property and be treated as regularly
acquired property. If the property is transferred to the county
purchasing agent it may be sold in the manner provided by Article
7 (commencing with Section 25500) of Chapter 5 of Part 2 of
Division 2 of Title 3 of the Government Code for the sale of surplus
personal property. If the county officer determines that any of the
property transferred to him or her for sale is needed for a public
use, the property may be retained by the county and need not be
sold. The magistrate or other officer having the property in custody
may, however, provide for the sale of the property in the manner
provided for the sale of unclaimed property which has been held
for at least three months pursuant to Section 2080.4 of the Civil
Code.

(b) This section shall not govern the disposition of property
placed on hold pursuant to Section 21647 of the Business and
Professions Code, notwithstanding the current custodial status of
the property, unless the licensed pawnbroker or secondhand dealer,
after receipt of the written advisement required by subdivision (h)
of Section 21647 of the Business and Professions Code, willfully
refuses to consent to a statutory hold as provided by Section 21647
of the Business and Professions Code or a search warrant for the
business of the licensed pawnbroker or secondhand dealer has
resulted in the seizure of the property subject to this section.

SEC. 6.  

Section 11108.5 of the Penal Code is amended to read:

11108.5.  

(a) If a law enforcement agency identifies serialized
property or any property reported pursuant to Section 21628 of
the Business and Professions Code that has been reported lost or
stolen by the owner or a person entitled to possession of the
property and the property has been entered into the appropriate
Department of Justice automated property system pursuant to
Section 11108, the agency shall notify the owner or person
claiming to be entitled to possession of the property of the location
of the property within 15 days of making the identification. If the
location of the property was reported by a licensed pawnbroker or
secondhand dealer pursuant to Section 21630 of the Business and
Professions Code, notwithstanding the method by which the
property was identified, notice shall be given to the party who
reported the property lost or stolen pursuant to Section 21647 of
the Business and Professions Code.

(b) If the property is in the custody of the law enforcement
agency and it is determined that the property is no longer required
for use as evidence in a criminal case, the property shall be made
available to the person entitled to possession pursuant to Section
1417.5 or if the property was found in the possession of a licensed
pawnbroker or secondhand dealer, pursuant to Section 21647 of
the Business and Professions Code.

(c) Subdivision (a) shall not apply to the return to an owner of
a lost or stolen vehicle, as defined in Section 670 of the Vehicle
Code if the report of theft or loss of the vehicle into the automated
property system preceded the report of the acquisition of property
as set forth in Section 21628 of the Business and Professions Code
by a licensed pawnbroker.

SEC. 7.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.