AB 1751, as amended, Low. Secondhand goods.
Existing law provides for the regulation of secondhand dealers and coin dealers, as defined. Existing law makes it unlawful for a person to engage in the business of a secondhand dealer without a license issued by the chief of police, the sheriff, or, where appropriate, the police commission. Existing law requires a local law enforcement agency to issue a license to engage in the business of a secondhand dealer or pawnbroker to an applicant who meets designated criteria. Existing law authorizes the local licensing authority and the Department of Justice to charge an initial licensure fee and a renewal fee, as specified. Existing law requires a secondhand dealer to report, as specified, to the chief of police or sheriff all secondhand “tangible personal property,” as defined, purchased, taken in trade, taken in pawn, accepted for sale on consignment, or accepted for auctioning. Existing law requires the report to include, among other things, the identification of the intended seller or pledger of the property, verified by the person taking the information by specified methods. Existing law requires the reporting of this information to the Department of Justice through a single, statewide, and uniform electronic reporting system. Existing law requires the Department of Justice to develop descriptive categories and secondhand dealers and coin dealers to use these categories in their reports.
This bill wouldbegin insert define “CAPSS” as the California Pawnbroker and SecondhandDealer System, which is the single, statewide, and uniform electronic reporting system operated by the Department of Justice. The bill would eliminate the requirement that a secondhand dealer send reports on paper forms. The bill wouldend insert
eliminate the requirements that the Department of Justice develop, and secondhand dealers and coin dealers use, descriptive categories in their reports of acquired tangible personal property. Instead, the bill would require the Department of Justice to accept the plain text property descriptions commonly recognized and utilized by the pawn and secondhand dealer industries.begin delete The bill would require the Department of Justice to encode the plain text
property descriptions, as specified, and would require that necessary costs incurred by the department in mapping the plain text property descriptions received by pawnbrokers and secondhand dealers to any law enforcement database be funded by the Secondhand Dealer and Pawnbroker Fund, thereby making an appropriation.end deletebegin insert The bill would authorize a secondhand dealer to utilize an article field descriptor provided by the Department of Justice, if using the article field descriptor would, in whole or in part, populate the property description.end insert This bill would prohibit the Department of Justice, chiefs of police, and sheriffs from requiring secondhand dealers to report any additional information other than that which is required by these provisions. The bill would require thatbegin delete the single, statewide, and uniform electronic reporting systemend deletebegin insert
a future change to the reporting requirements of CAPSS that substantively alters the reporting standardsend insert be implemented and operated in compliance with the Administrative Procedure Act and prohibit the Department of Justice from taking any action with respect to the implementation, operation, or maintenance ofbegin delete the electronic reporting systemend deletebegin insert CAPSSend insert by adoption of an emergency regulation. The bill would also require the Department of Justice to convene a meeting with the Department of Technology to discuss issues pertaining to any proposed changes or upgrades, and authorize the Department of Technology to provide technological assistance for ongoing improvements, updates, or changes, tobegin delete the single, statewide, and uniform electronic reporting system.end deletebegin insert
CAPSS.end insert
Existing law provides an exception to the reporting requirement for the acquisition of the same property from the same customer within 12 months of a reported transfer, except when submission of the report is specifically requested in writing by the local authorities.
This bill would expand the reporting requirement exception to all acquisitions of the same property from the same customer within 12 months of a reported transfer.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2⁄3.
Appropriation: begin deleteyes end deletebegin insertnoend insert.
Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
(a) It is the intent of the Legislature to clarify
2that pawnbrokers and other secondhand dealers are to report their
3acquisition of tangible personal property received in pledge, trade,
4consignment, or auction or by purchase using plain text, in
5descriptive language historically used in the pawn and secondhand
6industries when reporting to the single, statewide, and uniform
7electronic reporting system operated by the Department of Justice,
8or if not yet implemented in their respective jurisdictions, on paper
9forms sent to the local police chief or sheriff of the jurisdiction in
10which the secondhand dealer is physically located.
11(b) It is further the intent of the Legislature that by specifying
12this manner of reporting, it will relieve all secondhand dealers and
13pawnbrokers of the inherent costs and burdens imposed under
14existing law that requires these businesses to report their daily
15acquisitions of secondhand tangible personal property on paper
16forms limited to a single transaction, or where the electronic
17reporting system is implemented, the cost associated with
P4 1converting industry standard descriptions to specific law
2enforcement categories, the ongoing costs of training to that
3standard, and the costs of implementing software to maintain that
4standard.
5(c) Further, it is the intent of the Legislature that the Department
6of Justice shall continue to accept the plain text descriptive
7language historically used in the pawn and secondhand industries
8andbegin delete shall have the continuing obligation to convert those begin insert
may
9descriptions as may be required by law enforcement databases in
10order to protect the integrity of law enforcement databases.end delete
11provide article field descriptors to secondhand dealers in order
12to facilitate communication between the single, statewide, and
13uniform electronic reporting system and law enforcement
14databases.end insert It is the intent of the Legislature that only properly
15trained law enforcement personnel of the Department of Justice
16or local law enforcement classify and encode for law enforcement
17databases property reported by pawnbrokers and secondhandbegin delete18 dealers and that all necessary costs required for the Department
19of Justice to map the industry plain text property descriptions
to
20any law enforcement database be paid from the Secondhand Dealer
21and Pawnbroker Fund established by subdivision (d) of Section
2221642.5 of the Business and Professions Code.end delete
begin insertSection 21627.5 is added to the end insertbegin insertBusiness and
24Professions Codeend insertbegin insert, to read:end insert
“CAPSS” means the California Pawnbroker and
26SecondhandDealer System, which is a single, statewide, uniform
27electronic reporting system that receives secondhand dealer reports
28and is operated by the Department of Justice consistent with
29Resolution Chapter 16 of the Statutes of 2010. The maintenance
30and operation of CAPSS is funded by the Secondhand Dealer and
31Pawnbroker Fund established pursuant to Section 21642.5.
Section 21628 of the Business and Professions Code,
34as amended by Section 1 of Chapter 169 of the Statutes of 2015,
35is amended to read:
(a) Every secondhand dealer or coin dealer described
37in Section 21626 shall report daily, orbegin delete on the first working dayend deletebegin insert no
38later than the next business day excluding weekends and holidaysend insert
39 after receipt or purchase of secondhand tangible personal property,
40begin delete on forms or through an electronic reporting system approved by begin insert to CAPSS,end insert all secondhand tangible
P5 1the Department of Justice,end delete
2personal property, except for
firearms, which he or she has
3purchased, taken in trade, taken in pawn, accepted for sale on
4consignment, or accepted for auctioning,begin delete to the electronic reporting in accordance with the provisions of
5system operated by the Department of Justice, or until such time
6as this system is operational in the jurisdiction where the
7secondhand dealer is located, on paper forms sent to the chief of
8police or to the sheriff,end delete
9begin delete Sectionsend deletebegin insert Sectionend insert 21630begin delete and 21633end delete and subdivision (d). The report
10shall be legible, prepared in English, completed where applicable,
11and include only the following
information:
12(1) The name and current address of the intended seller or
13pledger of the property.
14(2) The identification of the intended seller or pledger. The
15identification of the seller or pledger of the property shall be
16verified by the person taking the information, who may use
17technology, including, but not limited to, cameras or software, or
18both, to obtain information and verify identity remotely. The
19verification shall be valid if the person taking the information
20reasonably relies on any one of the following documents, provided
21that the document is currently valid or has been issued within five
22years and contains a photograph or description, or both, of the
23person named on it, and, where applicable, is signed by the person,
24and bears a serial or other identifying
number:
25(A) A passport of the United States.
26(B) A driver’s license issued by any state or Canada.
27(C) An identification card issued by any state.
28(D) An identification card issued by the United States.
29(E) A passport from any other country in addition to another
30item of identification bearing an address.
31(F) A Matricula Consular in addition to another item of
32identification bearing an address.
33(3) (A) Abegin insert
property description. The property description shall
34be aend insert complete and reasonably accurate description ofbegin delete serializedend delete
35begin insert theend insert property, including, but not limited to, the following: serial
36begin delete numberend deletebegin insert number, personalized inscriptions,end insert and other identifying
37marks or symbols, owner-applied numbers,begin delete manufacturer’s name begin insert
the size color, material, and,
38brand, and model name or number.end delete
39if known by the secondhand dealer, the manufacturer’s pattern
40name. The property description shall include the brand and model
P6 1name or number of the item if known to, or reasonably
2ascertainable by, the secondhand dealer. The property description
3may include a plain text description of the item generally accepted
4by the secondhand industry.end insert Watches need not be disassembled
5when special skill or special tools are required to obtain the
6required information, unless specifically requested to do so by a
7peace officer. A special tool does not include a penknife, caseknife,
8or similar instrument and disassembling a watch with a penknife,
9caseknife, or similar instrument does not constitute a special skill.
10In all instances where the required information may be obtained
11by removal of a watchband, then the watchband shall be removed.
12The cost associated with opening the watch
shall be borne by the
13pawnbroker, secondhand dealer, or customer.
14
(B) A secondhand dealer may utilize an article field descriptor,
15the format of which shall be provided by the Department of Justice,
16if using the article field descriptor would, in whole or in part,
17accurately populate the property description with a plain text
18description generally accepted in the secondhand industry. The
19lack of an article field descriptor by a secondhand dealer shall
20not be relevant to any determination as to whether the secondhand
21dealer has received evidence of authority to sell or pledge the
22property pursuant to paragraph (1) of subdivision (b).
23(B)
end delete
24begin insert(C)end insert In the case of the receipt or purchase of a handheld electronic
25device by a secondhand dealer, the serial number reported pursuant
26to subparagraph (A) may be the International Mobile Station
27Equipment Identity (IMEI), the mobile equipment identifier
28(MEID), or other unique identifying number assigned to that device
29by the device manufacturer. If none of these identifying numbers
30are available by the time period required for reporting pursuant to
31this subdivision, the report shall be updated with the IMEI, MEID,
32or other unique identifying number assigned to that device by the
33device manufacturer as soon as reasonably possible but no later
34than 10 working days after receipt or purchase of the handheld
35electronic device.
36 (C)
end delete
37begin insert(D)end insert For the purpose of this paragraph, “handheld electronic
38device” means any portable device that is capable of creating,
39receiving, accessing, or storing electronic data or communications
P7 1and includes, but is not limited to, a cellular phone, smartphone,
2or tablet.
3(4) A complete and reasonably accurate description of
4nonserialized property, including, but not limited to, the following:
5size, color, material, manufacturer’s pattern name (when known),
6owner-applied numbers and personalized inscriptions, and other
7identifying marks or symbols. Watches need not be disassembled
8when special skill or special tools are required to obtain the
9required information, unless specifically requested to do so by a
10peace officer. A special tool does not include a penknife, caseknife,
11or similar instrument and
disassembling a watch with a penknife,
12caseknife, or similar instrument does not constitute a special skill.
13In all instances where the required information may be obtained
14by removal of a watchband, then the watchband shall be removed.
15The cost associated with opening the watch shall be borne by the
16pawnbroker, secondhand dealer, or customer.
17 (5)
end delete
18begin insert(4)end insert A certification by the intended seller or pledger that he or
19she is the owner of the property or has the authority of the owner
20to sell or pledge the property.
21 (6)
end delete
22begin insert(5)end insert A certification by the intended seller or pledger that to his
23or her knowledge and belief the information is true and complete.
24 (7)
end delete
25begin insert(6)end insert A legible fingerprint taken from the intended seller or
26pledger, as prescribed by the Department of Justice. This
27requirement does not apply to a coin dealer, unless required
28pursuant to local regulation.
29
(7) A report submitted by a pawnbroker or secondhand dealer
30shall be deemed to have been accepted by the Department of Justice
31if a good faith effort has been made to supply all of the required
32information. An error or omission on the report shall be noted,
33and the reporting pawnbroker or secondhand dealer shall be
34notified of the error or omission by the Department of Justice. A
35reporting pawnbroker or secondhand dealer shall have three
36business days from that notice to amend or correct the report
37before being subject to any enforcement violation.
38(b) (1) When a secondhand dealer complies with all of the
39provisions of this section, he or she shall be deemed to have
40received from the seller or pledger adequate evidence of authority
P8 1to sell or pledge the property for all purposes included in this
2article,
and Division 8 (commencing with Section 21000) of the
3Financial Code.
4(2) In enacting this subdivision, it is the intent of the Legislature
5that its provisions shall not adversely affect the implementation
6of, or prosecution under, any provision of the Penal Code.
7(c) Any person who conducts business as a secondhand dealer
8at
any gun show or event, as defined in Section 478.100 of Title
927 of the Code of Federal Regulations, or its successor, outside
10the jurisdiction that issued the secondhand dealer license in
11accordance with subdivision (d) of Section 21641, may be required
12to submit a duplicate of the transaction report prepared pursuant
13to this section to the local law enforcement agency where the gun
14show or event is conducted.
15
(c) Upon request from a local law enforcement agency, the
16Department of Justice shall electronically provide to the requesting
17local law enforcement agency transaction data reported by a
18secondhand dealer who is not licensed by the requesting local law
19enforcement agency but who is attending a gun show or event, as
20defined in Section 478.100
of Title 27 of the Code of Federal
21Regulations, in the jurisdiction of the requesting local law
22enforcement agency.
23(d) (1) The Department of Justice shall recognize and accept
24the plain text property descriptions generally accepted in the pawn
25and secondhand industries provided bybegin insert pawnbrokers andend insert
26 secondhand dealers, as has been the longstanding practice of chiefs
27of police and sheriffs when theybegin delete receiveend deletebegin insert had receivedend insert paper reports
28frombegin insert pawnbrokers andend insert secondhand
dealers.begin delete The Department of
29Justice shall have the continuing duty to encode the plain text
30property
descriptions received by pawnbrokers and secondhand
31dealers for law enforcement databases in order for those
32descriptions to be useful for law enforcement purposes. All
33necessary costs incurred by the Department of Justice in mapping
34the plain text property descriptions received by pawnbrokers and
35secondhand dealers to any law enforcement database shall be
36funded by the Secondhand Dealer and Pawnbroker Fund
37established in subdivision (d) of Section 21642.5.end delete
38(2) With the consultation by the Department of Justice with
39local law enforcement agencies and representatives from the
40secondhand dealer businesses, pursuant to Resolution Chapter 16
P9 1of the Statutes of 2010, and upon the availability of sufficient funds
2in the Secondhand Dealer and Pawnbroker Fund created pursuant
3to Section 21642.5, the department shall promptly develop a single,
4statewide, uniform electronic reporting system to be used to
5transmit these secondhand dealer reports.
6(3) (A) Except as otherwise provided in this section, any
end delete
7begin insert(2)end insertbegin insert end insertbegin insertAend insert report required of a secondhand dealerbegin insert pursuant to this
8sectionend insert shall be transmitted by electronicbegin delete means.end deletebegin insert means to CAPSS
9by the secondhand dealer.end insert
10(B) Until the date that the Department of
Justice implements
11the single, statewide, uniform electronic reporting system described
12in paragraph (2), each secondhand dealer may continue to report
13the information required by this section under the reporting
14categories described in paragraph (1) in paper format on forms
15approved or provided by the Department of Justice. Chiefs of
16police and sheriffs continuing to receive paper forms shall also
17continue to recognize and accept the plain text property
18descriptions generally recognized in the pawn and secondhand
19industries.
20(C) On and after the date that the
Department of Justice
21implements the single, statewide, uniform electronic reporting
22system described in paragraph (2), each secondhand dealer shall
23electronically report using that system the information required
24by this section under the reporting standard described in paragraph
25(1), except that for the first 30 days following the implementation
26date, each secondhand dealer shall also report the information in
27paper format as described in subparagraph (B).
28 (D)
end delete
29begin insert(3)end insert Unless specifically identified in this section, the Department
30of Justice, chiefs of
police, and sheriffs shall not require a
31secondhand dealer to include any additional information concerning
32the seller, the pledger, or the property received by the secondhand
33dealer in the report required by this section.
34(E) The single, statewide, and uniform electronic reporting
35system required by this chapter
36begin insert(4)end insertbegin insert end insertbegin insertIf there is a future change to the reporting requirements of
37CAPSS that substantively alters the reporting standards provided
38by this article, those changes end insertshall be implemented and operated
39in
compliance with the Administrative Procedure Act (Chapter
403.5 (commencing with Section 11340) of Part 1 of Division 3 of
P10 1Title 2 of the Government Code). In implementing and operating
2begin delete the single, statewide, and uniform electronic reporting system begin insert a future change to CAPSS,end insert the Department
3required by this chapter,end delete
4of Justice, chiefs of police, and sheriffs shall comply with Sections
521637 and 21638. Notwithstanding any other law, the Department
6of Justice shall not take any action with respect to the
7implementation, operation, or maintenance ofbegin delete the electronic begin insert
CAPSSend insert required by this chapter by adoption of
8reporting systemend delete
9an emergency regulation.
10 (F)
end delete
11begin insert(5)end insert On or before July 1, 2017, the Department of Justice shall
12convene a meeting with the Department of Technology to discuss
13issues pertaining to any proposed changes or upgrades tobegin delete the single, begin insert CAPSSend insert
required
14statewide, and uniform electronic reporting systemend delete
15by this chapter. The Department of Technology may provide
16technological assistance for ongoing improvements, updates, or
17changes tobegin delete the single, statewide, and uniform electronic reporting begin insert CAPSSend insert required by this chapter, as requested.
18systemend delete
19 (4)
end delete
20begin insert(6)end insert A coin dealer shall report the information required by this
21section under the
reporting standard described in paragraph (1) on
22a form developed by the Attorney General that the coin dealer
23shall transmit each day by facsimile transmission or by mail to the
24chief of police or sheriff. A transaction shall consist of not more
25than one item.
26 (5)
end delete
27begin insert(7)end insert For purposes of this subdivision, “item” shall mean any
28single physical article. However, with respect to a commonly
29accepted grouping of articles that are purchased as a set, including,
30but not limited to, a pair of earrings or place settings of china,
31silverware,
or other tableware, “item” shall mean that commonly
32accepted grouping.
33 (6)
end delete
34begin insert(8)end insert Nothing in this subdivision shall be construed as excepting
35a secondhand dealer from the fingerprinting requirement of
36paragraphbegin delete (7)end deletebegin insert (6)end insert of subdivision (a).
37(e) Nothing in this section shall be construed to exempt a person
38licensed
as a firearms dealer pursuant to Sections 26700 to 26915,
39inclusive, of the Penal Code from the reporting requirements for
P11 1the delivery of firearms pursuant to Sections 26700 to 26915,
2inclusive, of the Penal Code.
Section 21628.1 of the Business and Professions Code
5 is repealed.
Section 21630 of the Business and Professions Code
8 is repealed.
Section 21630 is added to the Business and Professions
11Code, to read:
(a) A secondhand dealerbegin insert or coin dealerend insert shall
13electronically transmit tobegin delete the Department of Justice’s single, begin insert CAPSS no later
14statewide, uniform electronic reporting system onend delete
15than the next business day afterend insert the date of transactionbegin insert excluding
16weekends and holidaysend insert or, if not then possible due to an electrical,
17telecommunications, or other malfunction, as soon as reasonable
18
thereafter, the report of acquisition of tangible personal property
19as required by Section 21628.
20(b) Notwithstanding Section 21628, submission of a tangible
21property acquisition report is not required if the report of an
22acquisition of the same property from the same customer has been
23submitted within the preceding 12 months.
24(c) If
the electronic reporting system operated by the Department
25of Justice has not been implemented in the jurisdiction where the
26secondhand dealer is located, the report shall be submitted to the
27chief of police of the city or his or her designee within the territorial
28limits of the incorporated city in which the secondhand dealer is
29located. If the transaction takes place outside the territorial limits
30of an incorporated city in which the secondhand dealer is located,
31the report shall be submitted to the sheriff of the county or his or
32her designee.
begin insertSection 21633 of the end insertbegin insertBusiness and Professions Codeend insert
34
begin insert is repealed.end insert
The report forms approved by the Department of Justice
36shall consist of not less than an original and two copies. The
37Department of Justice shall not require the report form to consist
38of more than an original and two copies when the forms are
39obtained from a source other than the department. A local law
40enforcement agency may request secondhand dealers within its
P12 1jurisdiction to use a report form consisting of more than an original
2and two copies. However, each secondhand dealer or group of
3dealers shall be required only to use a form consisting of an original
4and two copies when the dealer does not use a form obtained from
5the Department of Justice.
6The Department of Justice shall allow the use of forms which
7are compatible with computerization. The original and the duplicate
8copy shall be submitted by the secondhand dealer in accordance
9with the provisions of Sections 21628 and 21630. One copy shall
10be retained by the secondhand dealer in his place of business for
11a period of three years and shall be made available for inspection
12by any law enforcement officer.
begin insertSection 21642.5 of the end insertbegin insertBusiness and Professions Codeend insert
14
begin insert is amended to read:end insert
(a) The Department of Justice shall require each
16applicant for an initial license under Section 21641 of this code or
17Section 21300 of the Financial Code and each applicant for renewal
18of a license under Section 21642 of this code or Section 21301 of
19the Financial Code to pay a fee not to exceed three hundred dollars
20($300), but in no event exceeding the costs described in subdivision
21(b), except that the fee may be increased at a rate not to exceed
22any increase in the California Consumer Price Index as compiled
23and reported by the Department of Industrial Relations.
24(b) The fees assessed pursuant to subdivision (a) shall be no
25more than necessary to cover the reasonable regulatory costs to
26the department of doing all of the following:
27(1) Processing initial license applications under Section 21641
28of this code and Section 21300 of the Financial Code.
29(2) Processing renewal applications under Section 21642 of this
30code and Section 21301 of the Financial Code.
31(3) Implementing, operating, and maintainingbegin delete the single, begin insert CAPSSend insert described
32statewide, uniform electronic reporting systemend delete
33inbegin delete subdivision (j) ofend delete Sectionbegin delete 21628.end deletebegin insert
21627.5.end insert
34(c) All licensees holding a license issued before the effective
35date of the act adding this section pursuant to Section 21641 or
3621642 of this code or Section 21300 or 21301 of the Financial
37Code shall, within 120 days after enactment of the act adding this
38section in the 2011-12 Regular Session, in addition to any fee
39required under subdivision (a), pay a fee not to exceed two hundred
40eighty-eight dollars ($288) to the Department of Justice.
P13 1(d) The fees paid pursuant to subdivisions (a) and (c) shall be
2deposited in the Secondhand Dealer and Pawnbroker Fund, which
3is hereby established in the State Treasury. The revenue in the
4fund shall, upon appropriation by the Legislature, be used by the
5Department of Justice for the purpose of paying for the costs
6described in paragraphs (1) to (3), inclusive, of subdivision (b),
7except
that the revenue received pursuant to subdivision (c) shall,
8upon appropriation by the Legislature, be used by the Department
9of Justice for the purpose of paying for the costs described in
10paragraph (3) of subdivision (b).
11(e) Applicants described in subdivision (a) shall submit to the
12Department of Justice fingerprint images and related information
13required by the Department of Justice for the purposes of obtaining
14information as to the existence and contents of a record of state
15convictions and state arrests and information as to the existence
16and contents of a record of state arrests for which the Department
17of Justice establishes that the person is free on bail or on his or her
18own recognizance pending trial or appeal.
19(1) The Department of Justice shall prepare a state-level
20response pursuant to paragraph (1) of subdivision (l) of Section
2111105 of the Penal Code.
22(2) The Department of Justice shall provide subsequent
23notification service pursuant to Section 11105.2 of the Penal Code
24for applicants described in this subdivision.
25(3) The Department of Justice shall charge a fee sufficient to
26cover the cost of processing the request described in this
27subdivision. The fee revenues shall be deposited in the Fingerprint
28Fee Account and shall, upon appropriation by the Legislature, be
29used by the department for the purposes of paying the costs
30associated with this subdivision.
This act is an urgency statute necessary for the
33immediate preservation of the public peace, health, or safety within
34the meaning of Article IV of the Constitution and shall go into
35immediate effect. The facts constituting the necessity are:
36In order to make the single, statewide, uniform electronic system
37a cost savings for secondhand dealers and pawnbrokers, the plain
38text property descriptions historically utilized by these industries
39must be accepted by the Department of Justice,
just as these plain
P14 1text descriptions have historically been accepted by chiefs of police
2and sheriffs.
3Further, to protect the integrity of law enforcement databases,
4it is necessary to specify that only trained law enforcement
5personnel shall input classification codes of property reported by
6these businesses, not the businesses themselves.
O
95