BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 632|
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CONSENT
Bill No: AB 632
Author: Eggman (D)
Amended: 6/8/15 in Senate
Vote: 21
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 9-0, 6/15/15
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez,
Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 79-0, 5/11/15 (Consent) - See last page for
vote
SUBJECT: Secondhand dealers and coin dealers: reporting:
handheld electronic devices
SOURCE: Author
DIGEST: This bill permits a secondhand dealer or pawnbroker to
submit the International Mobile Station Equipment Identity
(IMEI) or the mobile equipment identifier (MEID) or other unique
number assigned to a handheld electronic device in lieu of the
serial number for reporting purposes and defines a "handheld
electronic device".
ANALYSIS:
Existing law:
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1)Defines a "secondhand dealer" as 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 and specifies that a "secondhand dealer"
does not include a coin dealer or participant at gun shows or
events, as specified. (Business and Professions Code (BPC) §
21626 (a))
2)States that "tangible personal property" includes, but is not
limited to, all secondhand tangible personal property which
bears a serial number or personalized initials or inscription,
or which at the time it is acquired by the secondhand dealer,
bears evidence of having had a serial number or personalized
initials or inscription. (BPC § 21627(a))
3)Requires every secondhand dealer or coin dealer, as specified,
to 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 (DOJ), 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, as specified. (BPC § 21628)
4)Requires the report to be legible, prepared in English,
completed where applicable, and include, but not be limited
to, the following information:
a) The name and current address of the intended seller or
pledger of the property;
b) The identification of the intended seller or pledger, as
specified;
c) A complete and reasonably accurate description of
serialized property, including, but not limited to: serial
number and other identifying marks or symbols,
owner-applied numbers, manufacturer's named brand, and
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model name or number;
d) A complete and reasonably accurate description of
non-serialized property, including, but not limited to:
size, color, material, manufacturer's pattern name (when
known), owner-applied numbers and personalized
inscriptions, and other identifying marks or symbols;
e) 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;
f) A certification by the intended seller or pledger that
to his or her knowledge and belief the information is true
and complete;
g) A legible fingerprint taken from the intended seller or
pledger, as specified; and,
h) 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, as specified.
(BPC § 21628)
This bill:
1) Permits a secondhand dealer to use the IMEI, MEID, or other
unique identifying number assigned to that electronic device
by the manufacturer, in place of the serial number for
reporting purposes.
2) Defines a "handheld electronic device" to mean 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.
3) Clarifies that a person may remotely obtain information and
verify the identification of the seller or pledger using
technology, including, but not limited to, cameras or
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software, or both.
4) Provides that if an IMEI, MEID, or other unique identifying
number assigned to a device is unavailable by the time
required for reporting, the report will be updated with an
identifying number assigned to that device as soon as
reasonably possible, but no later than 10 working days after
receipt of purchase of the handheld electronic device.
5) Makes other minor technical and clarifying amendments.
Background
IMEI and MEID. IMEI and MEID numbers may be referred to as
device-specific identifiers and can be used to help wireless
carriers and cell phone manufacturers identify specific devices.
IMEI numbers are typically found on handheld electronic devices
with cellular capacity while MEID numbers are typically found on
other items such as tablets without cellular capacity.
According to IMEI.org, if a mobile phone is stolen or lost, and
it is reported to the mobile service provider, that provider
will block the device to access their network and can even block
access to other networks and the use of other regions. Most
cell phone carriers will have a record of the IMEI number. The
police maintain a record of all stolen phones and use the IMEI
numbers to identify the devices. Further, IMEI.org explains
that every smartphone and other mobile station equipment have an
MEID identifier that is "burned" into the gadget which cannot be
modified. The Federal Communications Commission recommends
people write down their IMEI or MEID numbers in case their
handheld electronic device is stolen. The goal of the
secondhand reporting requirements is to help provide law
enforcement agencies with a means to curtail the selling of
stolen property and to facilitate its recovery by means of a
uniform statewide, state-reporting program. This bill provides
secondhand dealers an alternative means to report "serial
numbers" by allowing the report of IMEI, MEID, and other unique
identifying numbers for certain handheld electronic devices such
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as cell phones or smartphones.
EcoATM. EcoATM Inc. is the only automated kiosk that collects
unwanted or used cell phones, tablets and MP3 players for
instant cash. These kiosks are registered with the DOJ as
secondhand dealers. Each EcoATM includes extensive security
features and processes and also works collaboratively with law
enforcement in every jurisdiction they work in. The kiosk
includes three high-resolution cameras, software that detects a
"kill switch", a thumbprint scanner, software that captures the
serial number, and an ID validator. Above all, a remote, live
attendant is located in the company's headquarters that verifies
and approves every transaction in real-time by comparing the
image of the scanned license to the real-time webcam photos to
verify that the ID belongs to the customer. No transaction can
be completed without the approval of a live verifier. With the
development of this kiosk, the statute needs to be updated to
address this state of the art technology.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
SUPPORT: (Verified7/1/15)
California Asian Pacific Chamber of Commerce
California Chamber of Commerce
California Police Chiefs Association
Californians Against Waste
EcoATM
Latin Business Association
Planning and Conservation League
TechNet
OPPOSITION: (Verified7/1/15)
None received
ARGUMENTS IN SUPPORT: Californians Against Waste writes that
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"while Californians lead the nation in recycling of most
materials-including many electronic wastes, the recycling of the
ubiquitous cell phone has languished, at the same time that the
number of discarded phones has skyrocketed. Despite a 2006
state law requiring cell phone retailers to take back old phones
for recycling, many consumers are not ready to recycle their old
phone at the time of purchase or when they upgrade?.[This bill]
will update California's secondhand dealer laws to foster
ongoing efforts to increase recycling rates for handheld
electronic devices."
ASSEMBLY FLOOR: 79-0, 5/11/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,
Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,
Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,
Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood
NO VOTE RECORDED: Atkins
Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
7/1/15 16:37:21
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