BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1751 (Low) - Secondhand goods ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 20, 2016 |Policy Vote: B., P. & E.D. 9 - | | | 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: Yes |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1751 would make several changes to the operation of the California Automated Pawn and Secondhand Dealer System (CAPSS) operated by the Department of Justice. Fiscal Impact: Unknown potential information technology costs, to make changes to CAPSS to reflect the changes required in the bill (Secondhand Dealer and Pawnbroker Fund). The bill would require the Department of Justice to accept a plain text description of a reported item. Currently, the Department is requiring users of CAPSS to use specified classifications, rather than plain text descriptions. The Department may be required to make system changes to CAPSS to allow the system to accept plain text descriptions in addition to specified classifications or to develop the ability to accept field descriptors that would accurately reflect plain text descriptions used in the secondhand industry. AB 1751 (Low) Page 1 of ? Potential ongoing staff costs in the hundreds of thousands per year for the Department of Justice to classify items reported to CAPSS based on the plain text descriptions submitted by users (Secondhand Dealer and Pawnbroker Fund). The sponsors of the bill indicate that using the required classifications imposes a burden on CAPSS users and that most users would prefer to continue the historic practice of using plain text descriptions. If a significant number of users revert to using plain text descriptions and the Department of Justice wishes to continue classifying reported items, the Department could incur substantial staff costs to do so. Background: Under current law, secondhand dealers and pawnbrokers are licensed by local law enforcement agencies. Secondhand dealers and pawnbrokers are required to collect specified information about any item they purchase or take as collateral for a loan. Secondhand dealers and pawnbrokers are also required to collect information about the individual selling or pawning an item. The purpose of this requirement is to allow local law enforcement to search for stolen items. Historically, secondhand dealers and pawnbrokers used paper forms developed by the Department of Justice to record the required information and those forms were submitted to local law enforcement agencies. More recently, current law requires secondhand dealers and pawnbrokers to use the California Automated Pawn and Secondhand Dealer System (CAPSS) developed by the Department of Justice. CAPPS allows for electronic reporting of information directly to the Department of Justice. The Department currently requires CAPSS users to characterize items submitted based on prescribed classifications, rather than using plain text descriptions. Secondhand dealers and pawnbrokers have indicated that using the prescribed classifications is time consuming, in part because they use terminology not commonly used in the secondhand dealers industry. Current law requires secondhand dealers and pawnbrokers to include specified identifying information on the individual selling or pawning the item. Secondhand dealers and pawnbrokers have indicated that the Department is requiring them to include a photo or the seller and/or license plate information in the CAPSS report, even though this information is not specifically AB 1751 (Low) Page 2 of ? required in statute. Proposed Law: AB 1751 would make several changes to the operation of the California Automated Pawn and Secondhand Dealer System (CAPSS) by the Department of Justice. Specific provisions of the bill would: State legislative intent in enacting the bill, including legislative intent that only properly trained law enforcement personnel of the Department of Justice or local law enforcement should classify and encode information on property reported by pawnbrokers and secondhand dealers; Limit the information that must be reported to CAPSS to the information specifically required in statute; Authorize the description of items reported to CAPSS to be provided in a plain text description; Authorize a CAPSS user to use an article field descriptor designated by the Department if the descriptor would accurately populate the description field with a plain text description generally accepted in the secondhand industry; Provide that a report to CAPSS shall be deemed to have been accepted if the user makes a good faith effort to supply all the required information; Require a secondhand dealer to report business conducted at a gun show to CAPSS and require the Department to report information on those transactions to local law enforcement, upon request; Delete the requirement that the Department develop descriptive categories of property for reporting to CAPPS; Require the Department to accept plain language descriptions commonly used in the secondhand industry; Prohibit the Department of Justice or local law enforcement from requiring any additional information on property or sellers beyond what is specifically required in law; Require any future changes to the CAPSS reporting requirements to be adopted as regulations under the Administrative Procedure Act; Require the Department of Justice to consult with the Department of Technology on changes to CAPSS required by the bill; Make other technical and clarifying changes. AB 1751 (Low) Page 3 of ? This bill is an urgency measure. Staff Comments: Prior versions of this bill would have specifically required the Department of Justice to encode the plain text property descriptions received from secondhand dealers and pawnbrokers for use in law enforcement databases. That provision has been deleted from the bill. However, the bill still includes legislative intent language that only properly trained law enforcement personnel of the Department of Justice or local law enforcement agencies encode information provided in a plain text format to CAPSS. -- END --