BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 632| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: AB 632 Page 2 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 AB 632 Page 3 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 AB 632 Page 4 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 AB 632 Page 5 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 AB 632 Page 6 "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 **** END ****