BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1182


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          Date of Hearing:  May 27, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1182 (Santiago) - As Amended May 5, 2015


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          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.    








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          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  








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            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  








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            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.  









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          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