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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