BILL ANALYSIS Ó
AB 1182
Page 1
ASSEMBLY THIRD READING
AB
1182 (Santiago)
As Amended May 5, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+--------------------+--------------------|
|Business & |14-0 |Bonilla, Jones, | |
|Professions | |Baker, Bloom, | |
| | |Burke, Chang, Dodd, | |
| | |Eggman, Gatto, | |
| | |Holden, Mullin, | |
| | |Ting, Wilk, Wood | |
| | | | |
|----------------+------+--------------------+--------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, | |
| | |Eggman, Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Jones, Quirk, | |
| | |Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
AB 1182
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SUMMARY: Narrows the current definition of tangible personal
property, as specified, and requires the Department of Justice
(DOJ) to annually update the list of items which represent a
significant class of stolen goods and post it on its Web site.
Specifically, this bill:
1) Narrows the definition of "tangible personal property" to mean
only those elements listed in current law.
2) Requires the DOJ, to update its list annually of personal
property commonly sold by secondhand dealers which is
statistically found through crime reports to constitute a
significant class of stolen goods and post the list on the
DOJ's website.
EXISTING LAW:
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) Section
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 Section 21627(a))
3)States that tangible personal property also includes, but is not
limited to, the following: (BPC Section 21627(b))
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a) All tangible personal property, new or used, including
motor vehicles, received in pledge as security for a loan by
a pawnbroker;
b) All tangible personal property that bears a serial number
or personalized initials or inscription which is purchased by
a secondhand dealer or a pawnbroker or which, at the time of
such purchase, bears evidence of having had a serial number
or personalized initials or inscription; and,
c) All personal property commonly sold by secondhand dealers
which statistically is found through crime reports to the DOJ
to constitute a significant class of stolen goods. A list of
such personal property shall be supplied by the DOJ to all
local law enforcement agencies. The list shall be reviewed
periodically by the DOJ to insure that it addresses current
problems with stolen goods.
4)Specifies that "tangible personal property" does not include
coins, monetized bullion, or commercial grade ingots of gold,
silver, or other precious metals, as specified. (BPC Section
21627(d))
5)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 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
Section 21628)
FISCAL EFFECT: According to the Assembly Appropriations
Committee, minor and absorbable cost to DOJ to update its list and
post it on the DOJ Web site.
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COMMENTS:
Purpose. This bill is sponsored by the California Association of
Resellers, ReUsers and Buyers. According to the author, "? with
the passage of AB 391[(Pan) Chapter, 172, Statutes of 2012],
secondhand dealers (who do not sell serialized goods or goods
which are statistically found through crime reports to the [DOJ]
to constitute a significant class of stolen goods to be licensed
as a secondhand dealer) will now need to take the name and current
address of the intended seller of the property, take the
identification of the intended seller or pledger and a legible
fingerprint from the intended seller, to report daily, and to
retain for 30 days all tangible personal property reported.
"As outlined, California law imposes all of the above-mentioned
regulatory requirements on every secondhand dealer, regardless of
how large the number of identical items or how low the value of
each item bought and sold. As written, separate individual
reports will need to be made for every used book, every old
doorknob, every piece of colored glass, every old name badge or
game piece (amongst thousands of other items) sold within the
State of California. There is also no consideration made for
items that have been gathered over the past several decades for
which re-sellers would be unable to locate the initial owners (for
purposes of gaining their information, fingerprints, and
identification)? With this in mind, [this bill] seeks to clarify
existing law, provide law enforcement useful data they need in
order to curtail the dissemination of stolen property and to
facilitate the recovery of such property, and remove an
unnecessary burden on secondhand dealers."
Background. This bill seeks to revise the definition of "tangible
personal property" by narrowing the list of items which are
considered to be "tangible personal property." By narrowing the
list of items considered "tangible personal property," this bill
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will limit the category of secondhand items that need to be
reported to local law enforcement on a daily basis. Currently,
"tangible personal property" is defined as the items referenced in
BPC Section 21627(b), but current law does not restrict the
definition to only those items listed. This bill will revise the
definition by specifying that "tangible personal property" only
includes the items that are listed under BPC 21627(b), such as
items that bear a serial number and all personal property commonly
sold by secondhand dealers which are found through crime reports
to the DOJ that constitute a significant class of stolen goods.
This bill does not alter the reporting requirements for secondhand
dealers if they acquire an item that would meet the revised
definition of tangible person property. According to the DOJ, the
regulation of secondhand dealers occurred as a result of
legislation in 1980 in an effort to 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-administered secondhand dealer licensing and reporting
program.
Secondhand Dealers. 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.
Secondhand Dealer Transactions and Reporting Requirements.
Traditional secondhand dealer transactions typically take place
through face-to-face encounters where applicable state and local
laws can apply, such as California's 30-day hold requirement.
Under current law, secondhand dealers are required to report daily
or on the first working day after the receipt or purchase of
secondhand personal property on forms or through the electronic
database (once completely functional), all of the secondhand
tangible personal property which has been purchased, taken in
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trade, taken in pawn, or accepted for sale or consignment.
Because the electronic database is not currently available, the
reports of tangible personal property items are currently required
to be submitted directly to local law enforcement. As noted by
the author, because the definition of personal tangible property
is so broad, the secondhand dealers feel compelled to report all
secondhand transition items, even those which may be of minor
material value such as door knobs, used books or old game pieces.
DOJ List. The intent of narrowing the definition of "tangible
personal property" is to limit the number of secondhand
transactions that must be reported by secondhand dealers to those
which are of significance for crime tracking purposes. As noted,
the definition of "tangible personal property" includes all
personal property that bears a serial number or personalized
initials or inscription and those items found on a list compiled
by the DOJ. Currently, BPC Section 21627(3) requires the DOJ to
provide its list of personal property which statistically is found
through crime reports to constitute a significant class of stolen
goods to local law enforcement. Depending on the size, type, and
number of items reported on the list as determined by the DOJ, it
could significantly expand or reduce those items which are
considered "tangible personal property." Currently, there are
only two items on the DOJ's Secondhand Dealer Report including:
jewelry and sterling silverware. This limited list means that the
definition of "tangible personal property" will only include those
two items along with anything that has a serial number.
According to the author, the Federal Bureau of Investigation
provides a list of stolen goods which contains an expansive list
of items including tangible goods such as handbags, pelts or skins
for apparel purposes, and bikes. It is unclear how often or the
last time DOJ updated its list of items found through crime
reports to be statistically significant. However, this bill will
require the DOJ to update its list annually which depending on the
process for obtaining the necessary data for its list could expand
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or reduce those items that need to be reported annually.
Attorney General Opinion. The current definition of "tangible
personal property" is seen as being too broad. Because the
definition states items, "including, but not limited to," it
provides for a wide interpretation of what must be included in any
secondhand transaction - it could potentially include anything.
Because of the reporting requirements, it is necessary for
secondhand dealers to understand what is included under the
definition of "tangible personal property."
For instance, in 1996, an Attorney General opinion was requested
to determine whether or not baseball trading cards constitute
"tangible personal property". According to the opinion, "Baseball
trading cards purchased by a card shop do not constitute tangible
personal property for purposes of regulation under the Secondhand
Goods Law" (79 Ops.Cal.Atty.Gen. 103). Given the broad definition
of "tangible personal property" there may be other items which
fall into the potential category of "tangible personal property,"
but without a formal DOJ opinion, secondhand dealers must operate
as if all property is required to be reported.
Analysis Prepared by:
Elissa Silva / B. & P. / (916) 319-3301 FN:
0000532
AB 1182
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