BILL ANALYSIS �
AB 1796
Page 1
Date of Hearing: April 17, 2012
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 1796 (Galgiani) - As Amended: March 29, 2012
SUBJECT : Criminal profiteering: sale of secondhand goods.
SUMMARY : Makes it a misdemeanor to engage in the business of a
secondhand dealer without being licensed. Specifically, this
bill :
1)Makes it a misdemeanor to engage in the business of a
secondhand dealer without being licensed.
2)Adds the sale of tangible personal property or other
secondhand goods, including gold and other precious metals,
without a license to the definition of "criminal profiteering
activity."
3)Makes technical changes.
EXISTING LAW :
1)Provides the procedure for the forfeiture of property and
proceeds acquired through a pattern of criminal profiteering
activity, as specified, and requires the prosecution to file a
petition for forfeiture in conjunction with certain criminal
charges under the California Control of Profits of Organized
Crime Act.
2)Includes in the definition of criminal profiteering activity
specified crimes, including forgery and receiving stolen
property.
3)Defines a "secondhand dealer," to mean any person,
copartnership, 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.
4)Requires a person engaged in business as a secondhand dealer,
as defined, to be licensed by local law enforcement, as
specified.
AB 1796
Page 2
5)Requires secondhand dealer to report daily, or on the first
working day after receipt or purchase of property, on forms
either approved or provided at actual cost by the Department
of Justice (DOJ), all 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 the sheriff, as
specified.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author, "Illegal gold
buying and selling has become a significant problem in recent
years. Consumers are defrauded daily in California by illegal
gold buyers, using uncertified scales, and preying on uninformed
sellers who are often paid a fraction of their item's actual
value. Additionally, gold items stolen from individuals are
often sold to these unlicensed buyers who, as a result of being
under the radar so to speak, immediately melt the gold jewelry
and do not adhere to the requirement to hold such merchandise
for 30 days so that law enforcement agencies can investigate and
search for known stolen items. If these transactions were with
a licensed pawn or secondhand dealer, each item would be
reported on a 'JUS 123 - Pawnbrokers/Secondhand Dealer Report'
and transmitted daily to the local police chief or sheriff in
that jurisdiction and to the DOJ."
Background . A "JUS 123 form" must be completed for each item of
tangible personal property purchase, taken in trade, taken in
pawn or accepted for sale on consignment. Once completed, one
copy is provided to local law enforcement, one copy to DOJ and
one copy is retained by the dealer.
Support . The California Pawnbrokers Association writes in
support, "The problem of illegal and unlicensed gold buyers is
affecting every community in California. This activity takes
advantage of the public, and is an impediment to the rightful
return of stolen property, and makes effective law enforcement
and prosecution of many tangible personal property crimes nearly
impossible. This bill will provide the means for more vigorous
prosecution of these crimes that are afflicted upon the
California citizenry."
AB 1796
Page 3
Related legislation . AB 391 (Pan) of 2012 requires secondhand
dealers and coin dealers to report certain information using the
electronic reporting system developed by DOJ on and after the
date that the system is implemented. This bill is pending the
Senate Public Safety Committee.
Previous legislation . SB 1520 (Schiff), Chapter 994, Statutes
of 2000, makes the reporting system for pawned and secondhand
property more effective for law enforcement purposes through
development of specified reporting categories and reporting in
electronic form.
Double referred . This bill is double-referred to Assembly
Public Safety Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
California Pawnbrokers Association (sponsor)
Opposition
None on file.
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301