BILL ANALYSIS Ó AB 1182 Page 1 Date of Hearing: May 27, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1182 (Santiago) - As Amended May 5, 2015 ----------------------------------------------------------------- |Policy |Business and Professions |Vote:|14 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill 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 website. AB 1182 Page 2 The bill allows a county law enforcement agency to use its own list of a significant class of stolen goods until DOJ provides its first annual update. 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. 3)Allows a county law enforcement agency to use its own list of personal property commonly sold by secondhand dealers, which is statistically found through crime reports to constitute a significant class of stolen goods, until DOJ provides its first annual update. FISCAL EFFECT: Minor and absorbable cost to DOJ to update its list and post it on the DOJ website. COMMENTS: 1)Purpose. By narrowing the list of items considered "tangible personal property, this bill seeks to limit the category of secondhand items that need to be reported to local law AB 1182 Page 3 enforcement on a daily basis. The intent is to remove burdensome information gathering and reporting requirements on secondhand dealers, while still providing law enforcement the data they need to curtail the sale of, and facilitate the recovery of, stolen property. According to the author, "?with the passage of AB 391(Pan), Chapter, 172, Statutes of 2012, secondhand dealers 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." 2)Background. The regulation of secondhand dealers began 35 years ago 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. Local law enforcement entities have the responsibility to incorporate the Secondhand Dealer and Pawnbroker licensing process into their local programs. It is the responsibility of the local licensing agency to administer, maintain, and enforce state law regarding the secondhand dealer or pawnbroker licenses. Persons, entities, or corporations wishing to conduct business as a secondhand dealer or pawnbroker, must first apply for a specific license to conduct the business with the local licensing agency, who then receives background check results and a license number issued by the DOJ's Secondhand Dealer and Pawnbroker Unit. Under current law, secondhand dealers are required to report daily, through a statewide electronic database directly to the AB 1182 Page 4 DOJ, all of the secondhand tangible personal property which has been purchased, taken in trade, taken in pawn, or accepted for sale or consignment. Because the electronic database is not yet fully functional, the reports are required to be submitted directly to local law enforcement. Because the definition of personal tangible property is so broad, the secondhand dealers indicate they feel compelled to report all secondhand transition items, even those which may be of minor material value. 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. 3)Arguments in Support. Second hand dealers argue that current law was written to address potential criminal activity, but did not contemplate the circumstances surrounding traditional second hand vendors, antique fair vendors, auction houses and collectors where there is no evidence of selling stolen goods. 4)Arguments in Opposition. Pawnbrokers indicate that the latest amendment requiring secondhand licensees to report items from a local sheriff's list until the DOJ list is available, would be a reporting "nightmare" for those with locations in multiple jurisdictions. Further, they state that the bill unravels the previous 12 year effort to standardize and coordinate a "single and uniform electronic data base for the reporting of tangible personal property" through DOJ. 5)Current Legislation. AB 632 (Eggman), pending referral in the Senate, would authorize specified unique identifying numbers to be used as the serial number reported for handheld electronic devices, as specified. AB 1182 Page 5 6)Prior Legislation. AB 391 (Pan), Chapter 172, Statutes of 2012, established the process and fee schedule to implement a single, statewide, uniform electronic reporting system for pawnbrokers and secondhand dealers as specified administered by the DOJ. Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081