Amended in Senate June 8, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 632

Introduced by Assembly Member Eggman

February 24, 2015

An act to amend Section 21628 of the Business and Professions Code, relating to business.

LEGISLATIVE COUNSEL’S DIGEST

AB 632, as amended, Eggman. Secondhand dealers and coin dealers: reporting: handheld electronic devices.

Existing law provides for the regulation of secondhand dealers, as defined. Existing law 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 requires a secondhand dealer or coin dealer, as defined, to report, as specified, to the chief of police or sheriff all secondhand “tangible personal property,” as defined, purchased, taken in trade, taken in pawn, accepted for sale on consignment, or accepted for auctioning. Existing law requires the report to begin delete include end delete begin insert include, among other things, the identification of the intended seller or pledger of the property, verified by the person taking the information by reasonably relying on specified documents, and end insert a complete and reasonably accurate description of serialized property, including, but not limited to, the serial number of that property. begin insert A violation of these provisions where a person knows or should have known that a violation was being committed is a misdemeanor. end insert

This bill would begin insert permit the person verifying the identification of the seller or pledger to use technology to obtain information and verify identity remotely. The bill would end insert authorize specified unique identifying numbers to be used as the serial number reported for handheld electronic devices, as begin delete defined. end delete begin insert defined, and would require the report to the chief of police or sheriff to be updated within 10 days with these unique identifying numbers if they were not available when the report was submitted. end insert

begin insert

Because a violation of this requirement under certain circumstances would be a crime, this bill would impose a state-mandated local program.

end insert begin insert

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.

end insert begin insert

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

end insert

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

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

SECTION 1.  

Section 21628 of the Business and Professions
Code is amended to read:

21628.  

begin delete Every end delete begin insert (a) end insert begin insert   end insert begin insert Every end insert 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 (d). The report shall be legible, prepared
in English, completed where applicable, and include, but not be
limited to, the following information:

(1) The name and current address of the intended seller or
pledger of the property.

(2) 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 begin delete information. end delete begin insert information, who
may use technology, including, but not limited to, cameras or
software, or both, to obtain information and verify identity
remotely. end insert 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:

(A) A passport of the United States.

(B) A driver’s license issued by any state or Canada.

(C) An identification card issued by any state.

(D) An identification card issued by the United States.

(E) A passport from any other country in addition to another
item of identification bearing an address.

(F) A Matricula Consular in addition to another item of
identification bearing an address.

(3) (A) 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.

(B) In the case of the receipt or purchase of a handheld electronic
device by a secondhand dealer, the serial number reported pursuant
to subparagraph (A) may be the International Mobile Station
Equipment Identity (IMEI), the mobile equipment identifier
(MEID), or other unique identifying number assigned to that device
by the device manufacturer. begin insert If none of these identifying numbers
are available by the time period required for reporting pursuant
to this subdivision, the report shall be updated with the IMEI,
MEID, or other unique identifying number assigned to that device
by the device manufacturer as soon as reasonably possible but no
later than 10 working days after receipt or purchase of the
handheld electronic device. end insert

(C) For the purpose of this paragraph, “handheld electronic
device” means any portable device that is capable of creating,
receiving, accessing, or storing electronic data or communications
and includes, but is not limited to, a cellular phone, smartphone,
or tablet.

(4) 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.

(5) 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.

(6) A certification by the intended seller or pledger that to his
or her knowledge and belief the information is true and complete.

(7) 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.

(b) (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.

(c) 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.

(d) (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.

(2) 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.

(3) (A) Except as otherwise provided in this section, any report
required of a secondhand dealer shall be transmitted by electronic
means.

(B) Until the date that the Department of Justice implements
the single, statewide, uniform electronic reporting system described
in paragraph (2), 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.

(C) On and after the date that the Department of Justice
implements the single, statewide, uniform electronic reporting
system described in paragraph (2), each secondhand dealer shall
electronically report using that system the information required
by this section under the reporting categories described in
paragraph (2), 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 (B).

(4) 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.

(5) 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.

(6) Nothing in this subdivision shall be construed as excepting
a secondhand dealer from the fingerprinting requirement of
paragraph (7) of subdivision (a).

(e) 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.

begin insert

begin insert SEC. 2. end insert   

end insert begin insert

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.

end insert