BILL ANALYSIS Ó
AB 632
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
632 (Eggman)
As Amended June 8, 2015
Majority vote
--------------------------------------------------------------------
|ASSEMBLY: |79-0 |(May 11, 2015) |SENATE: |38-0 |(July 2, 2015) |
| | | | | | |
| | | | | | |
--------------------------------------------------------------------
Original Committee Reference: B. & P.
SUMMARY: 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." Specifically, this bill:
1)Permits a secondhand dealer to use the IMEI, MEID, or other
unique identifying number assigned to that device by the
manufacture, 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)Makes other minor technical and clarifying amendments.
AB 632
Page 2
The Senate amendments:
1)Permit the identification of a seller or pledger of secondhand
tangible personal property, as specified, to be verified
through the use of technology including, but not limited to,
cameras or software, or both to obtain information and verify
identity remotely.
2)Allow a secondhand dealer who purchases a handheld electronic
device, to report the IMEI, MEID or other unique identifying
number assigned to that device as soon as possible but no
later than 10 working days after receipt or purchase of the
handheld electronic device if the number is not available at
the time the required report is to be submitted.
3)Provide that no reimbursement is required by this bill
pursuant to California Constitution Article XIIB, Section 6
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.
4)Make other minor and technical amendments.
FISCAL EFFECT: According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8 negligible state costs.
COMMENTS:
Purpose. According to the author, "[this bill] updates
California's secondhand dealer laws to increase recycling of
handheld electronic devices. According to the U.S.
Environmental Protection Agency, in 2012 the [U.S.] generated
AB 632
Page 3
3.4 million tons of electronic waste. Of that amount only 29%
was recycled. Handheld electronic devices (smart phones, cell
phones, tablets, MP3 players, etc.) make up an increasing
proportion of electronic waste. Typically unused handheld
electronic devices are not recycled and often end up in a
landfill. The low rate of recycling is largely because e-waste
is unnecessarily difficult. For example, under existing
statute, entities that purchase used electronic devices for
refurbishment or recycling are required to obtain a secondhand
dealers' license and, as such, must follow all secondhand dealer
laws. However, California's secondhand dealer laws were largely
crafted in the early 1980s and do not reflect current technology
or practice. More specifically, secondhand dealers must report
serial numbers for all serialized property they receive to law
enforcement. This is a problem because not all electronic
devices are marked with a 'serial number.' Some manufacturers
use [IMEI] or [MEID] numbers in place of serial numbers."
Background. A secondhand dealer includes a person, business or
corporation whose main purpose is to buy, sell, trade, take in
pawn, accept for sale on consignment, or accept for auction
secondhand tangible personal property. Current law specifically
exempts certain individuals from the definition of a secondhand
dealer, including coin dealers, certain auctioneers, and certain
appliance repair persons. Traditional secondhand dealer
transactions typically take place through face-to-face
encounters where applicable state and local laws apply. This
bill will permit the identification of a seller to be verified
remotely through the use of technology including, but not
limited to cameras, software or both. Under current law,
secondhand dealers are required to report all secondhand
tangible personal property that comes into their possession
daily or on the first working day after receipt of the item on
forms or through the electronic database (once completely
functional).
Reporting Requirements. Secondhand dealers are required to
report items that they have acquired including all items which
bear a serial number such as electronics. The author notes that
not all electronic devices today bear a serial number as many of
AB 632
Page 4
these devices such as mobile phones have moved away from a
serial number to a more unique IMEI or MEID number. This bill
simply allows a secondhand dealer or pawnbroker to report the
IMEI or MEID number in lieu of a serial number when they are
reporting certain electronic items to law enforcement as
required. This bill does not change any of the current
reporting requirements for secondhand dealers, but instead
expands the categories of information which may be reported to
law enforcement as required. However, this bill will allow a
secondhand dealer who purchases or receives a handheld
electronic device who does not have immediate access to the
IMEI, MEID or other unique identifying number, up to an
additional 10 days to report the number as required.
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 manufactures 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. The
police maintain a record of all stolen phones and use the IMEI
numbers to identify the devices. 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 as cell phone or
smartphones.
Analysis Prepared by:
Elissa Silva / B. & P. / (916) 319-3301 FN:
0001134
AB 632
Page 5