BILL NUMBER: AB 632 ENROLLED
BILL TEXT
PASSED THE SENATE JULY 2, 2015
PASSED THE ASSEMBLY JULY 6, 2015
AMENDED IN SENATE JUNE 8, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
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, 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 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 a complete and reasonably accurate description of serialized
property, including, but not limited to, the serial number of that
property. A violation of these provisions where a person knows or
should have known that a violation was being committed is a
misdemeanor.
This bill would permit the person verifying the identification of
the seller or pledger to use technology to obtain information and
verify identity remotely. The bill would authorize specified unique
identifying numbers to be used as the serial number reported for
handheld electronic devices, as 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.
Because a violation of this requirement under certain
circumstances would be a crime, this 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.
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. (a) Every 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 information, who may use
technology, including, but not limited to, cameras or software, or
both, to obtain information and verify identity remotely. 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. 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.
(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.
SEC. 2. 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.