H.B. 402 Enrolled

1

PAWNSHOP TRANSACTION INFORMATION
2 AMENDMENTS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Rebecca D. Lockhart
6 Senate Sponsor: Jon J. Greiner
7
8 LONG TITLE
9 General Description:
10 This bill amends the Pawnshop Transaction Information Act to include secondhand
11 merchandise dealers.
12 Highlighted Provisions:
13 This bill:
14 . defines secondhand merchandise dealers;
15 . defines persons and entities who are not secondhand merchandise dealers, including
16 antique shops;
17 . requires that secondhand merchandise dealers comply with all transaction
18 identification, recordkeeping, reporting, training, and other provisions that apply to
19 pawnbrokers, with the exception of regulation of pawn tickets; and
20 . requires that secondhand merchandise dealers provide data to the online database
21 currently used by pawnbrokers.
22 Monies Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:
28 13-32a-101, as enacted by Chapter 299, Laws of Utah 2004
29 13-32a-102, as last amended by Chapter 290, Laws of Utah 2006

30 13-32a-103, as last amended by Chapter 290, Laws of Utah 2006
31 13-32a-104, as enacted by Chapter 299, Laws of Utah 2004
32 13-32a-105, as enacted by Chapter 299, Laws of Utah 2004
33 13-32a-106, as last amended by Chapter 256, Laws of Utah 2005
34 13-32a-107, as last amended by Chapter 256, Laws of Utah 2005
35 13-32a-108, as enacted by Chapter 299, Laws of Utah 2004
36 13-32a-109, as last amended by Chapter 290, Laws of Utah 2006
37 13-32a-109.8, as enacted by Chapter 290, Laws of Utah 2006
38 13-32a-111, as last amended by Chapter 290, Laws of Utah 2006
39 13-32a-112, as last amended by Chapter 256, Laws of Utah 2005
40 13-32a-114, as last amended by Chapter 256, Laws of Utah 2005
41 63-2-304, as last amended by Chapters 14, 174 and 261, Laws of Utah 2006
42
43 Be it enacted by the Legislature of the state of Utah:
44 Section 1. Section 13-32a-101 is amended to read:
45 CHAPTER 32a. PAWNSHOP AND SECONDHAND MERCHANDISE
46 TRANSACTION INFORMATION ACT
47 13-32a-101. Title.
48 This chapter is known as the "Pawnshop and Secondhand Merchandise Transaction
49 Information Act."
50 Section 2. Section 13-32a-102 is amended to read:
51 13-32a-102. Definitions.
52 As used in this chapter:
53 (1) "Account" means the Pawnbroker and Secondhand Merchandise Operations
54 Restricted Account created in Section 13-32a-113 .
55 (2) "Antique item" means an item:
56 (a) that is generally older than 25 years;
57 (b) whose value is based on age, rarity, condition, craftsmanship, or collectability;

58 (c) that is furniture or other decorative objects produced in a previous time period, as
59 distinguished from new items of a similar nature; and
60 (d) obtained from auctions, estate sales, other antique shops, and individuals.
61 (3) "Antique shop" means a business operating at an established location and that
62 offers for sale antique items.
63 [(2)] (4) "Board" means the Pawnshop and Secondhand Merchandise Advisory Board
64 created by this chapter.
65 [(3)] (5) "Central database" or "database" means the electronic database created and
66 operated under Section 13-32a-105 .
67 [(4)] (6) "Division" means the Division of Consumer Protection in Title 13, Chapter 1,
68 Department of Commerce.
69 [(5)] (7) "Identification" means a form of positive identification issued by a
70 governmental entity that:
71 [(a)] (8) contains a numerical identifier and a photograph of the person identified; and
72 [(b)] (9) may include a state identification card, a state drivers license, a United States
73 military identification card, or a United States passport.
74 [(6)] (10) "Local law enforcement agency" means the law enforcement agency that has
75 direct responsibility for ensuring compliance with central database reporting requirements for
76 the jurisdiction where the pawnshop is located.
77 [(7)] (11) "Misappropriated" means stolen, embezzled, converted, obtained by theft, or
78 otherwise appropriated without authority of the lawful owner.
79 [(8)] (12) "Original victim" means a victim who is not a party to the pawn transaction.
80 [(9)] (13) "Pawnbroker" means a person whose business engages in the following
81 activities:
82 (a) loans money on one or more deposits of personal property;
83 (b) deals in the purchase, exchange, or possession of personal property on condition of
84 selling the same property back again to the pledgor or depositor;
85 (c) loans or advances money on personal property by taking chattel mortgage security

86 on the property and takes or receives the personal property into his possession, and who sells
87 the unredeemed pledges; [or]
88 (d) deals in the purchase, exchange, or sale of used or secondhand merchandise or
89 personal property; or
90 [(d)] (e) engages in a licensed business enterprise as a pawnshop.
91 (14) "Pawn and secondhand business" means any business operated by a pawnbroker
92 or secondhand merchandise dealer, or the owner or operator of the business.
93 [(10)] (15) "Pawn ticket" means a document upon which information regarding a pawn
94 transaction is entered when the pawn transaction is made.
95 [(11)] (16) "Pawn transaction" means an extension of credit in which an individual
96 delivers property to a pawnbroker for an advance of money and retains the right to redeem the
97 property for the redemption price within a fixed period of time.
98 [(12)] (17) "Pawnshop" means the physical location or premises where a pawnbroker
99 conducts business.
100 [(13)] (18) "Pledgor" means a person who conducts a pawn transaction with a
101 pawnshop.
102 [(14)] (19) "Property" means any tangible personal property.
103 [(15)] (20) "Register" means the record of information required under this chapter to be
104 maintained by [the pawnbroker] pawn and secondhand businesses. The register is an electronic
105 record that is in a format that is compatible with the central database.
106 (21) (a) "Secondhand merchandise dealer" means an owner or operator of a business
107 that:
108 (i) deals in the purchase, exchange, or sale of used or secondhand merchandise or
109 personal property; and
110 (ii) does not function as a pawnbroker.
111 (b) "Secondhand merchandise dealer" does not include:
112 (i) the owner or operator of an antique shop;
113 (ii) any person or entity who operates auction houses, flea markets, or vehicle, vessel,

114 and outboard motor dealers as defined in Section 41-1a-102 ;
115 (iii) the sale of secondhand goods at events commonly known as "garage sales," "yard
116 sales," or "estate sales";
117 (iv) the sale or receipt of secondhand books, magazines, or post cards;
118 (v) the sale or receipt of used merchandise donated to recognized nonprofit, religious,
119 or charitable organizations or any school-sponsored association for which no compensation is
120 paid;
121 (vi) the sale or receipt of secondhand clothing and shoes;
122 (vii) any person offering his own personal property for sale, purchase, consignment, or
123 trade via the Internet;
124 (viii) any person or entity offering the personal property of others for sale, purchase,
125 consignment, or trade via the Internet, when that person or entity does not have, and is not
126 required to have, a local business or occupational for this activity;
127 (ix) any owner or operator of a retail business that receives used merchandise as a
128 trade-in for similar new merchandise; or
129 (x) an owner or operator of a business that contracts with other persons or entities to
130 offer those persons' secondhand goods for sale, purchase, consignment, or trade via the
131 Internet.
132 Section 3. Section 13-32a-103 is amended to read:
133 13-32a-103. Compliance with criminal code and this chapter.
134 Every [pawnbroker] pawn or secondhand business shall, regarding each article of
135 property a person pawns or sells, comply with the requirements of this chapter and the
136 requirements of Subsections 76-6-408 (2)(c)(i) through (iii) regarding the person's:
137 (1) legal right to the property;
138 (2) fingerprint; and
139 (3) picture identification.
140 Section 4. Section 13-32a-104 is amended to read:
141 13-32a-104. Register required to be maintained -- Contents -- Identification of

142 items.
143 (1) Every pawnbroker or secondhand merchandise dealer shall keep a register of [pawn
144 transactions, in which the pawnbroker] each article of property a person pawns or sells to the
145 pawnbroker or secondhand merchandise dealer, except as provided in Subsection
146 13-32a-102 (17)(b) regarding secondhand merchandise dealers. Every pawn and secondhand
147 business owner or operator, or his employee, shall enter the following information regarding
148 every article pawned or sold to [him] the owner or employee:
149 (a) the date and time of the transaction;
150 (b) the pawn transaction ticket number, if the article is pawned;
151 (c) the date by which the article must be redeemed;
152 (d) the following information regarding the person who pawns or sells the article:
153 (i) the person's name, residence address, and date of birth;
154 (ii) the number of the driver license or other form of positive identification presented
155 by the person, and notations of discrepancies if the person's physical description, including
156 gender, height, weight, race, age, hair color, and eye color, does not correspond with
157 identification provided by the person;
158 (iii) the person's signature; and
159 (iv) a legible fingerprint of the person's right thumb, or if the right thumb cannot be
160 fingerprinted, a legible fingerprint of the person with a written notation identifying the
161 fingerprint and the reason why the thumb print was unavailable;
162 (e) the amount loaned on or paid for the article, or the article for which it was traded;
163 (f) the identification of the [pawnbroker] pawn or secondhand business owner or [his]
164 the employee, whoever is making the register entry; and
165 (g) an accurate description of the article of property, including available identifying
166 marks such as:
167 (i) names, brand names, numbers, serial numbers, model numbers, color,
168 manufacturers' names, and size;
169 (ii) metallic composition, and any jewels, stones, or glass;

170 (iii) any other marks of identification or indicia of ownership on the article;
171 (iv) the weight of the article, if the payment is based on weight;
172 (v) any other unique identifying feature;
173 (vi) gold content, if indicated; and
174 (vii) if multiple articles of a similar nature are delivered together in one transaction and
175 the articles do not bear serial or model numbers and do not include precious metals or
176 gemstones, such as musical or video recordings, books, or hand tools, the description of the
177 articles is adequate if it includes the quantity of the articles and a description of the type of
178 articles delivered.
179 (2) A [pawnshop] pawn or secondhand business may not accept any personal property
180 if, upon inspection, it is apparent that serial numbers, model names, or identifying
181 characteristics have been intentionally defaced on that article of property.
182 Section 5. Section 13-32a-105 is amended to read:
183 13-32a-105. Central database.
184 (1) There is created under this section a central database as a statewide repository for
185 all information [pawnbrokers] pawn and secondhand businesses are required to submit in
186 accordance with this chapter and for the use of all participating law enforcement agencies
187 whose jurisdictions include one or more [pawnshops] pawn or secondhand businesses.
188 (2) The Division of Purchasing and General Services created in Title 63A, Chapter 2,
189 shall:
190 (a) meet with the board to determine the required elements of the database; and
191 (b) conduct a statewide request for proposal for the creation of and maintenance of the
192 central database.
193 (3) Funding for the creation and operation of the central database shall be from the
194 account.
195 (4) (a) Any entity submitting a bid to create, maintain, and operate the database
196 pursuant to the request for proposal conducted by the Division of Purchasing and General
197 Services may not hold any financial or operating interest in any pawnshop in any state.

198 (b) The Division of Purchasing and General Services, in conjunction with the
199 Pawnshop and Secondhand Merchandise Advisory Board, shall verify before a bid is awarded
200 that the selected entity meets the requirements of Subsection (4)(a).
201 (c) If any entity is awarded a bid under this Subsection (4) and is later found to hold
202 any interest in violation of Subsection (4)(a), the award is subject to being opened again for
203 request for proposal.
204 (5) Information entered in the database shall be retained for five years and shall then be
205 deleted.
206 Section 6. Section 13-32a-106 is amended to read:
207 13-32a-106. Transaction information provided to the central database --
208 Protected information.
209 (1) The information required to be recorded under Sections 13-32a-103 and
210 13-32a-104 that is capable of being transmitted electronically shall be transmitted
211 electronically to the central database on the next business day following the transaction.
212 (2) The pawnbroker shall maintain all pawn tickets generated by the pawnshop and
213 shall maintain the tickets in a manner so that the tickets are available to local law enforcement
214 agencies as required by this chapter and as requested by any law enforcement agency as part of
215 an investigation or reasonable random inspection conducted pursuant to this chapter.
216 (3) (a) If a [pawnshop] pawn or secondhand business experiences a computer or
217 electronic malfunction that affects its ability to report transactions as required in Subsection
218 (1), the [pawnshop] pawn or secondhand business shall immediately notify the local law
219 enforcement agency of the malfunction.
220 (b) The [pawnshop] pawn or secondhand business shall solve the malfunction within
221 three business days or notify law enforcement under Subsection (4).
222 (4) If the computer or electronic malfunction under Subsection (3) cannot be solved
223 within three business days, the [pawnshop] pawn or secondhand business shall notify the local
224 law enforcement agency of the reasons for the delay and provide documentation from a
225 reputable computer maintenance company of the reasons why the computer or electronic

226 malfunction cannot be solved within three business days.
227 (5) A computer or electronic malfunction does not suspend the [pawnshop's] pawn or
228 secondhand business' obligation to comply with all other provisions of this chapter.
229 (6) During the malfunction under Subsections (3) and (4), the [pawnshop] pawn or
230 secondhand business shall:
231 [(a) maintain the pawn tickets and other information required under this chapter in a
232 written form; and]
233 [(b)] (a) arrange with the local law enforcement agency a mutually acceptable
234 alternative method by which the [pawnshop] pawn or secondhand business provides the
235 required information to the local law enforcement official[.]; and
236 (b) a pawnshop shall maintain the pawn tickets and other related information required
237 under this chapter in a written form.
238 (7) A [pawnshop] pawn or secondhand business that violates the electronic transaction
239 reporting requirement of this section is subject to an administrative fine of $50 per day if:
240 (a) the [pawnshop] pawn or secondhand business is unable to submit the information
241 electronically due to a computer or electronic malfunction;
242 (b) the three business day period under Subsection (3) has expired; and
243 (c) the [pawnshop] pawn or secondhand business has not provided documentation
244 regarding its inability to solve the malfunction as required under Subsection (4).
245 (8) A [pawnshop] pawn or secondhand business is not responsible for a delay in
246 transmission of information that results from a malfunction in the central database.
247 Section 7. Section 13-32a-107 is amended to read:
248 13-32a-107. Deadline for registers to be electronic -- Notice for updating.
249 (1) On and after January 1, 2005, each [pawnbroker] pawn and secondhand business in
250 the state that generates ten or more pawn transactions per month or 50 or more sales
251 transactions per month shall maintain the register in an electronic format that is compatible
252 with the central database computer system.
253 (2) (a) On and after January 15, 2005, [pawnbrokers] pawn and secondhand businesses

254 under Subsection (1) are subject to an administrative fine of $50 a day for each daily report
255 required under Section 13-32a-106 that is submitted as a written report rather than
256 electronically.
257 (b) Fines imposed under this section shall be paid to the division, which shall deposit
258 the fines in the account.
259 (3) The operators of the central database shall establish written procedures in
260 conjunction with the Pawnshop and Secondhand Merchandise Advisory Board to ensure that
261 when the central database is upgraded, the affected [pawnbrokers] pawn and secondhand
262 businesses will receive adequate notice, information, and time to upgrade their computer
263 systems so the systems are compatible with the upgraded central database.
264 Section 8. Section 13-32a-108 is amended to read:
265 13-32a-108. Retention of records -- Reasonable inspection.
266 (1) The pawnbroker or law enforcement agency, whichever has custody of pawn
267 tickets, shall retain them for no less than three years from the date of the transaction.
268 (2) (a) A law enforcement agency may conduct random reasonable inspections of
269 [pawnshops] pawn or secondhand businesses for the purpose of monitoring compliance with
270 the reporting requirements of this chapter. The inspections may be conducted to:
271 (i) confirm that pawned items match the description reported to the database by the
272 pawnshop; and
273 (ii) make spot checks of property at the [pawnshop] pawn or secondhand business to
274 determine if the property is appropriately reported.
275 (b) Inspections under Subsection (2)(a) shall be performed during the regular business
276 hours of the [pawnshop] pawn or secondhand business.
277 Section 9. Section 13-32a-109 is amended to read:
278 13-32a-109. Holding period for articles.
279 (1) (a) The pawnbroker may sell any article pawned to him:
280 (i) after the expiration of the contract period between the pawnbroker and the pledgor;
281 and

282 (ii) if the pawnbroker has complied with the requirements of Section 13-32a-106
283 regarding reporting to the central database and Section 13-32a-103 .
284 (b) If an article is purchased by the [pawnbroker] pawn or secondhand business, the
285 [pawnbroker] pawn or secondhand business may sell the article after the [pawnbroker] pawn or
286 secondhand business has held the article for ten days and complied with the requirements of
287 Section 13-32a-106 regarding reporting to the central database and Section 13-32a-103 .
288 (c) This Subsection (1) does not preclude a law enforcement agency from requiring a
289 [pawnbroker] pawn or secondhand business to hold an article if necessary in the course of an
290 investigation.
291 (i) If the article was pawned, the law enforcement agency may require the article be
292 held beyond the terms of the contract between the pledgor and the pawn broker.
293 (ii) If the article was sold to the [pawnbroker] pawn or secondhand business, the law
294 enforcement agency may require the article be held if the [pawnbroker] pawn or secondhand
295 business has not sold the article.
296 (d) If the law enforcement agency requesting a hold on property under this Subsection
297 (1) is not the local law enforcement agency, the requesting law enforcement agency shall notify
298 the local law enforcement agency of the request and also the [pawnshop] pawn or secondhand
299 business.
300 (2) If a law enforcement agency requires the [pawnbroker] pawn or secondhand
301 business to hold an article as part of an investigation, the agency shall provide to the
302 [pawnbroker] pawn or secondhand business a hold ticket issued by the agency, which:
303 (a) states the active case number;
304 (b) confirms the date of the hold request and the article to be held; and
305 (c) facilitates the [pawnbroker's ability] ability of the pawn or secondhand business to
306 track the article when the prosecution takes over the case.
307 (3) If an article is not seized by a law enforcement agency that has placed a hold on the
308 property, the property may remain in the custody of the [pawnbroker] pawn or secondhand
309 business until further disposition by the law enforcement agency, and as consistent with this

310 chapter.
311 (4) The initial hold by a law enforcement agency is for a period of 45 days. If the
312 article is not seized by the law enforcement agency, the article shall remain in the custody of
313 the [pawnshop] pawn or secondhand business and is subject to the hold unless exigent
314 circumstances require the purchased or pawned article to be seized by the law enforcement
315 agency.
316 (5) (a) A law enforcement agency may extend any hold for up to an additional 45 days
317 when exigent circumstances require the extension.
318 (b) When there is an extension of a hold under Subsection (5)(a), the requesting law
319 enforcement agency shall notify the [pawnshop] pawn or secondhand business that is subject to
320 the hold prior to the expiration of the initial 45 days.
321 (c) A law enforcement agency may not hold an item for more than the 90 days allowed
322 under Subsections (5)(a) and (b) without obtaining a court order authorizing the hold.
323 (6) A hold on an article under Subsection (2) takes precedence over any request to
324 claim or purchase the article subject to the hold.
325 (7) When the purpose for the hold on or seizure of an article is terminated, the law
326 enforcement agency requiring the hold or seizure shall within 15 days after the termination:
327 (a) notify the [pawnshop] pawn or secondhand business in writing that the hold or
328 seizure has been terminated;
329 (b) return the article subject to the seizure to the [pawnbroker] pawn or secondhand
330 business; or
331 (c) if the article is not returned to the [pawnbroker] pawn or secondhand business,
332 advise the [pawnbroker] pawn or secondhand business either in writing or electronically of the
333 specific alternative disposition of the article.
334 Section 10. Section 13-32a-109.8 is amended to read:
335 13-32a-109.8. Pawned or sold property subject to law enforcement investigation.
336 (1) If the article pawned or sold under Section 13-32a-109 is subject to an investigation
337 and a criminal prosecution results, the prosecuting agency shall, prior to disposition of the case:

338 (a) request restitution to the [pawnbroker] pawn or secondhand business for the crimes
339 perpetrated against the [pawnshop] pawn or secondhand business as a victim of theft by
340 deception; and
341 (b) request restitution for the original victim.
342 (2) If the original victim of the theft of the property files a police report and the
343 property is subsequently located at a [pawnshop] pawn or secondhand business, the victim
344 must fully cooperate with the prosecution of the crimes perpetrated against the [pawnshop]
345 pawn or secondhand business as a victim of theft by deception, in order to qualify for
346 restitution regarding the property.
347 (3) If the original victim does not pursue criminal charges or does not cooperate in the
348 prosecution of the property theft crimes charged against the defendant and the theft by
349 deception charges committed against the [pawnshop] pawn or secondhand business, then the
350 original victim must pay to the [pawnshop] pawn or secondhand business the amount of money
351 financed or paid by the [pawnshop] pawn or secondhand business to the defendant in order to
352 obtain the property.
353 (4) (a) The victim's cooperation in the prosecution of the property crimes and in the
354 prosecution of the theft by deception offense committed against the [pawnshop] pawn or
355 secondhand business suspends the requirements of Subsections (2) and (3).
356 (b) If the victim cooperates in the prosecution under Subsection (4)(a) and the
357 defendants are convicted, the prosecuting agency shall direct the [pawnshop] pawn or
358 secondhand business to turn over the property to the victim.
359 (c) Upon receipt of notice from the prosecuting agency that the property must be turned
360 over to the victim, the [pawnshop] pawn or secondhand business shall return the property to the
361 victim as soon as reasonably possible.
362 (5) A [pawnshop] pawn or secondhand business must fully cooperate in the
363 prosecution of the property crimes committed against the original victim and the property
364 crime of theft by deception committed against the [pawnshop] pawn or secondhand business in
365 order to participate in any court-ordered restitution.

366 (6) At all times during the course of a criminal investigation and subsequent
367 prosecution, the article subject to a law enforcement hold shall be kept secure by the
368 [pawnshop] pawn or secondhand business subject to the hold unless [the] a pawned article has
369 been seized by the law enforcement agency pursuant to Section 13-32a-109.5 .
370 Section 11. Section 13-32a-111 is amended to read:
371 13-32a-111. Fees to fund training and central database.
372 (1) On and after January 1, 2005, each pawnshop or secondhand merchandise dealer in
373 operation shall annually pay $250 to the division, to be deposited in the account.
374 (2) On and after January 1, 2005, each law enforcement agency that participates in the
375 use of the database shall annually pay to the division a fee of $2 per sworn law enforcement
376 officer who is employed by the agency as of January 1 of that year. The fee shall be deposited
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