BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1751 (Low) - Secondhand goods
          
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          |Version: June 20, 2016          |Policy Vote: B., P. & E.D. 9 -  |
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          |Urgency: Yes                    |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Brendan McCarthy    |
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          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.







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           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  








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          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.








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          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.


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