BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 762
                                                                  Page  1

          Date of Hearing:   August 30, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 762 (Hill) - As Amended:  August 21, 2013 

          Policy Committee:                             Business and  
          Professions  Vote:                            12 - 0 
                       Public Safety                            6 - 0 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill clarifies the interests of licensed pawnbrokers and  
          secondhand dealers relating to the seizure and disposition of  
          property during a criminal investigation or criminal case.   
          Specifically, this bill:  

          1)Revises the 90-day hold law enforcement may place on property  
            in possession of a pawn broker to, among other things,  
            authorize a peace officer to also place a hold on property the  
            officer has probable cause to believe is lost or embezzled. 

          2)Permits the law enforcement agency to extend the hold beyond  
            90 days, as specified, until the conclusion of the criminal  
            proceedings. 

          3)Authorizes a peace officer to take physical possession of  
            property as evidence if the property is placed on hold. 

          4)Provides 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.

          5)Requires that 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. 

          6)Requires that law enforcement must return property that it has  








                                                                  SB 762
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            taken physical possession of at the conclusion of the criminal  
            proceedings.

           FISCAL EFFECT  

          Any costs associated with this legislation should be minor and  
          absorbable within existing resources. 

           COMMENTS  

           1)Purpose  . This bill provides a new level of due process  
            protection for licensed pawnbrokers and secondhand dealers to  
            ensure they receive or retain certain property that is no  
            longer a part of a criminal investigation. The bill clarifies  
            how and when law enforcement can seize property from a pawn  
            broker or, alternatively, place a hold on the property.  In  
            addition, it specifies a new formula for certain property  
            obtained by forfeiture to be disbursed to certain public funds  
            or agencies.  

           2)Related Legislation  .  AB 391 (Pan, Statutes of 2012) requires  
            secondhand dealers and coin dealers to report certain  
            information using the electronic reporting system developed by  
            DOJ on and after the date that the system is implemented.  

            AB 704 (Ma), 2011 required that a person conducting business  
            as a secondhand dealer provide specified information to any  
            peace officer upon demand to allow for the storage of the item  
            for up to 90 days, and required an impounding agency to  
            satisfy specified requirements regarding impounded property.   
            This bill was never heard in the Assembly Judiciary Committee.  


            AB 1796 (Galgiani), 2012 would have included in the definition  
            of criminal profiteering, the unlicensed sale of tangible  
            personal property or other secondhand goods, including gold  
            and other precious metals, without a license.  This bill  
            failed passage in the Assembly Public Safety Committee.

            SB 1520 (Schiff, Statutes of 2000) makes the reporting system  
            for pawned and secondhand property more effective for law  
            enforcement purposes through development of specified  
            reporting categories and reporting in electronic form.










                                                                  SB 762
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           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081