Second Substitute H.B. 95

Representative Joseph G. Murray proposes to substitute the following bill:

1 REGULATION OF PAWN SHOPS
2 2001 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Joseph G. Murray
5 This act modifies provisions related to pawnshops to enact the Utah Pawnbroking Act and
6 make conforming amendments. This act grants authority to the Commissioner of the
7 Department of Financial institutions to license pawnshops and prohibits pawnshops from
8 operating without a license. This act regulates pawn transactions and imposes
9 recordkeeping and reporting requirements on pawnbrokers. This act establishes penalties
10 for a pawnbroker's failure to comply with the requirements of this act. This act provides for
11 the creation of an electronic database of pawnshop transactions accessible by law
12 enforcement officials over the Internet. This act establishes a procedure for persons to
13 recover property that has been stolen and that is in the possession of a pawnbroker. This
14 act amends existing statutes dealing with pawnbrokers to be consistent with this act. This
15 act takes effect upon approval.
16 This act affects sections of Utah Code Annotated 1953 as follows:
17 AMENDS:
18 11-6-1, Utah Code Annotated 1953
19 63-2-304, as last amended by Chapters 232 and 335, Laws of Utah 2000
20 76-6-408, as last amended by Chapter 102, Laws of Utah 1993
21 ENACTS:
22 7-24-101, Utah Code Annotated 1953
23 7-24-102, Utah Code Annotated 1953
24 7-24-103, Utah Code Annotated 1953
25 7-24-104, Utah Code Annotated 1953

26 7-24-105, Utah Code Annotated 1953
27 7-24-106, Utah Code Annotated 1953
28 7-24-107, Utah Code Annotated 1953
29 7-24-108, Utah Code Annotated 1953
30 7-24-109, Utah Code Annotated 1953
31 7-24-110, Utah Code Annotated 1953
32 7-24-111, Utah Code Annotated 1953
33 7-24-112, Utah Code Annotated 1953
34 7-24-113, Utah Code Annotated 1953
35 7-24-114, Utah Code Annotated 1953
36 7-24-115, Utah Code Annotated 1953
37 7-24-116, Utah Code Annotated 1953
38 7-24-117, Utah Code Annotated 1953
39 7-24-118, Utah Code Annotated 1953
40 7-24-119, Utah Code Annotated 1953
41 7-24-120, Utah Code Annotated 1953
42 7-24-121, Utah Code Annotated 1953
43 7-24-122, Utah Code Annotated 1953
44 7-24-123, Utah Code Annotated 1953
45 7-24-124, Utah Code Annotated 1953
46 7-24-125, Utah Code Annotated 1953
47 Be it enacted by the Legislature of the state of Utah:
48 Section 1. Section 7-24-101 is enacted to read:
49 CHAPTER 24. UTAH PAWNBROKING ACT
50 7-24-101. Title.
51 This chapter is known as the "Utah Pawnbroking Act."
52 Section 2. Section 7-24-102 is enacted to read:
53 7-24-102. Definitions.
54 As used in this chapter:
55 (1) "Amount financed" means the amount of funds advanced by a pawnbroker to a pledgor
56 in a pawn transaction.

57 (2) "Commissioner" means the Commissioner of the Department of Financial Institutions.
58 (3) "Database" or "pawn transaction database" means the computer database established
59 and maintained pursuant to this section.
60 (4) "Department" means the Department of Financial Institutions created in Section
61 7-1-201 .
62 (5) "Finance charge" means a service charge which, in addition to the amount financed,
63 must be paid by a pledgor to redeem the pledged property.
64 (6) "Identification" means a form of positive identification issued by a governmental entity
65 containing a numerical identifier and a photograph of the person identified.
66 (7) "Local law enforcement official" means the sheriff of the county in which a pawnshop
67 is located or, if the pawnshop is located within a municipality, the police chief of that municipality,
68 or the designee of the sheriff or police chief.
69 (8) "Look-up" means accessing a single database record.
70 (9) "Misappropriated" means stolen, embezzled, converted, or otherwise wrongfully
71 appropriated against the will of the rightful owner.
72 (10) "Month" means that period of time from one date in a calendar month to the
73 corresponding date in the following calendar month, but if there is no corresponding date, then the
74 last day of the following month.
75 (11) "Net worth" means total assets minus total liabilities.
76 (12) "Pawnbroker" means a person with an established place of business who:
77 (a) advances funds on the security of pledged tangible personal property;
78 (b) purchases tangible personal property on the condition of selling the property back at
79 a fixed priced within a fixed period of time;
80 (c) publicly displays a sign at the place of business denoting a "pawnbroker" or
81 "pawnshop;" or
82 (d) publicly displays a sign, symbol, or other advertisement indicating that funds are
83 available to be advanced on pledged tangible personal property.
84 (13) "Pawnshop" means the location or premises where a pawnbroker conducts business.
85 (14) "Pawn ticket" means a document upon which information regarding a pawn
86 transaction is entered when the pawn transaction is made.
87 (15) (a) "Pawn transaction" means an advance of funds on the security of pledged tangible

88 personal property or a purchase of tangible personal property on condition that the tangible
89 personal property is left in the possession of a pawnbroker and may be redeemed or repurchased
90 for a fixed price within a fixed period of time.
91 (b) The following are considered a single item and must be included in the same
92 transaction:
93 (i) items usually sold as a set; and
94 (ii) a pledged item together with items that are accessories to the pledged item.
95 (c) A separate pawn transaction retains its separate character when it is renewed, unless
96 the parties agree otherwise.
97 (d) For purposes of all state and federal bankruptcy laws, a pledgor's interest in pledged
98 property during the pendency of a pawn transaction is considered to be that of a right of
99 redemption only.
100 (16) "Permitted vendor" means a vendor who has an established place of business and who
101 when selling items to the pawnbroker furnishes a pawnbroker with an invoice specifying the
102 vendor's name and address, the date of the sale, a description of the items sold, and the sale price.
103 (17) "Person" means an individual, partnership, corporation, joint venture, limited liability
104 company, trust, association, or other legal entity.
105 (18) "Pledged property" means tangible personal property purchased by, deposited with,
106 or otherwise delivered into the possession of, a pawnbroker in connection with a pawn transaction.
107 (19) "Pledgor" means an individual who delivers tangible personal property to a
108 pawnbroker as security for an advance of funds or who sells tangible personal property to a
109 pawnbroker, and who may redeem or repurchase the property at a fixed price within a fixed period
110 of time by agreement with the pawnbroker.
111 (20) "Property" means tangible personal property.
112 (21) "Purchased property" means used or secondhand tangible personal property purchased
113 by a pawnbroker in connection with a purchase transaction.
114 (22) "Purchase transaction" means a purchase of used or secondhand tangible personal
115 property by a pawnbroker, other than in connection with a pawn transaction.
116 (23) "Reportable data" means the information required to be recorded by pawnbrokers for
117 pawn transactions under Subsections 7-24-107 (2), 7-24-107 (3)(a), and 7-24-107 (4), and the
118 information required to be recorded by pawnbrokers for purchase transactions under Subsections

119 7-24-108 (1) through (4).
120 (24) "Securities Exchange Act" means the federal Securities Exchange Act of 1934, as
121 amended, or its comparable successor statute.
122 (25) "Tangible personal property" excludes:
123 (a) choses in action;
124 (b) securities;
125 (c) printed evidences of indebtedness; and
126 (d) instruments evidencing title, including certificates of title, to separate items of property,
127 including motor vehicles.
128 (26) "User" means a person who accesses the database.
129 Section 3. Section 7-24-103 is enacted to read:
130 7-24-103. License Required -- Application -- Annual report -- Change of ownership.
131 (1) A person may not engage in business as a pawnbroker without a valid pawnshop
132 license issued by the department. A separate license is required for each pawnshop. The
133 department may issue more than one license to a person.
134 (2) If a licensee wishes to move the location of a pawnshop, the licensee shall give 30 days'
135 written notice to the department and the local law enforcement official. The department shall
136 amend the pawnshop license to reflect the change of location.
137 (3) A pawnshop license is effective until it expires or is relinquished, suspended, or
138 revoked by the department under Section 7-24-106 .
139 (4) Each licensee shall file with the department annually, on or before a date established
140 by department rule, a report for each licensed pawnshop operated by the licensee within the state.
141 The report shall provide the following information for the preceding calendar year:
142 (a) total number of pawn transactions;
143 (b) total amount financed in pawn transactions;
144 (c) total number of pawn transactions forfeited;
145 (d) total number of pawn transactions redeemed;
146 (e) total number of pawn transactions for which pledged property was surrendered to law
147 enforcement agencies or other parties claiming ownership; and
148 (f) total number of employees, both full-time and part-time, as of the reporting date.
149 (5) The report under Subsection (4) shall be in the form prescribed by department rule.

150 (6) The department shall make and publish annually a consolidated analysis and
151 recapitulation of all reports required under this section, but the individual reports are protected
152 records under Section 63-2-304 .
153 (7) (a) A licensee shall pay , for each pawnshop operated by the licensee , a license fee of
154 $250 to the department annually on or before each December 1st for the following calendar year.
155 (b) If the license fee is not timely paid under Subsection (7)(a), the department shall mail
156 a notice of delinquency to the licensee.
157 (c) If the fee remains unpaid 30 days after written notice of delinquency has been mailed,
158 the license expires.
159 (8) (a) The department may issue a temporary license authorizing the operation of a
160 pawnshop upon receipt of an application to transfer a license from one person to another or upon
161 receipt of an application for a license involving principals and owners who are substantially
162 identical to those of an existing licensed pawnshop.
163 (b) The temporary license is effective until the permanent license is issued or denied by
164 the department.
165 (9) If the ownership of a pawnshop changes, directly or beneficially, the new owner shall
166 apply to the department for a new license or transfer of an existing license, except if:
167 (a) the current licensee is a business entity; and
168 (b) the persons holding greater than 50% of the equity ownership interest of the entity
169 before the change in ownership continue to hold greater than 50% of the equity ownership interest
170 after the change in ownership.
171 Section 4. Section 7-24-104 is enacted to read:
172 7-24-104. Eligibility for license.
173 (1) To be eligible for a pawnshop license, an applicant shall:
174 (a) be of good moral character;
175 (b) demonstrate to the department that the pawnshop will be operated in compliance with
176 this chapter and any other applicable state laws;
177 (c) have a net worth of at least $100,000 or file a bond with the department in the amount
178 of $100,000 that meets the requirements, other than amount, under Subsection 7-24-105 (4);
179 (d) (i) not have been convicted of a felony; and
180 (ii) not be acting as a beneficial owner for a person convicted of a felony;

181 (e) (i) not have been convicted of a class A misdemeanor within the previous ten years;
182 and
183 (ii) not be acting as a beneficial owner for a person who has been convicted of a class A
184 misdemeanor within the previous ten years; and
185 (f) own a computer system capable of transmitting reportable data in accordance with the
186 requirements of Section 7-24-111 .
187 (2) The department may require verification that the applicant meets the net worth
188 requirement under Subsection (1), including:
189 (a) presentation of a current balance sheet by an accounting firm or an individual holding
190 a permit to practice public accounting in this state; and
191 (b) a written statement that the accountant has reviewed the books and records of the
192 applicant and that the applicant meets the net worth requirement.
193 (3) If an applicant for a pawnshop license is a business entity, the eligibility requirements
194 of this section apply to:
195 (a) each operator and each legal or beneficial owner of the entity; and
196 (b) each officer, director, and direct or beneficial owner of 10% or greater of the
197 outstanding shares of the corporation's capital stock, if the entity is a corporation.
198 Section 5. Section 7-24-105 is enacted to read:
199 7-24-105. Application for license -- Bond.
200 (1) An application for a new pawnshop license, the transfer of an existing pawnshop
201 license, or the approval of a change in the ownership of a licensed pawnshop shall be made to the
202 department in writing and under oath, and shall state the full name and place of residence of the
203 applicant, the place where the business is to be conducted, and other relevant information as
204 required by department rule, and if the applicant:
205 (a) is a partnership, the application shall state the full name and address of each partner;
206 or
207 (b) is a corporation, the application shall state the full name and address of each director
208 and officer.
209 (2) If the applicant is a corporation, the application shall also state the full name and
210 address of each shareholder, unless:
211 (a) the applicant is owned directly or beneficially by a person who, as an issuer, has a class

212 of securities registered pursuant to Section 12(g) of the Securities Exchange Act or who, pursuant
213 to Section 15(d) of the Securities Exchange Act, is required as an issuer of securities to file
214 information, documents, and reports with the Securities and Exchange Commission; and
215 (b) the person referred to in Subsection (2)(a) files with the department the information,
216 documents, and reports required by the Securities Exchange Act to be filed with the Securities
217 Exchange Commission.
218 (3) (a) The applicant shall file the completed application with the department with an
219 application fee as provided under Subsection (3)(b).
220 (b) (i) If the applicant does not possess a current pawnshop license when the application
221 is filed, the application shall be accompanied by an application fee of $1,000.
222 (ii) If the application is for a second or additional license for a currently licensed applicant
223 or involves substantially identical owners of a separate currently licensed pawnshop, the
224 application shall be accompanied by an application fee of $500.
225 (4) (a) With the application, an applicant for a pawnshop license shall file for each license
226 sought a bond in the amount of $5,000 with a surety company qualified to do business in Utah.
227 (b) The bond shall run to the state for its use and to a person who may have a cause of
228 action against the obligor of the bond under this chapter.
229 (c) The bond shall require the obligor to comply with this chapter and to pay to the state
230 and to a person bringing a cause of action against the obligor all amounts of money that may
231 become due or owing to the state or to the person from the obligor under this chapter while the
232 bond is in effect.
233 (d) The aggregate liability of the surety is not required to exceed the amount stated in the
234 bond.
235 (5) (a) When the department receives an application and the required fees and bond, the
236 department shall investigate the accuracy of the information provided in the application as required
237 by this chapter and determine if the application is complete .
238 (b) If the department finds that the eligibility requirements for the license are satisfied, the
239 department shall approve the application and issue to the applicant a license to operate as a
240 pawnshop under this section.
241 (c) If the department finds the licensure requirements of this chapter are not met, the
242 department shall notify the applicant in writing.

243 (d) The department shall grant or deny each application for a license within 60 days from
244 its filing with the required fees and bond, unless the period is extended by written agreement
245 between the applicant and the department.
246 (e) The applicant is entitled to a hearing on the department's finding under Title 63,
247 Chapter 46b, Administrative Procedures Act. The hearing application shall be filed with the
248 department within 30 days after receipt of notice of the finding. The applicant is entitled to a
249 hearing within 60 days of filing the application for a hearing.
250 Section 6. Section 7-24-106 is enacted to read:
251 7-24-106. Suspension or revocation of license -- Net worth requirement.
252 (1) The department may, after notice and hearing in accordance with Title 63, Chapter 46b,
253 Administrative Procedures Act , suspend or revoke a license upon a finding that:
254 (a) The licensee, either knowingly or negligently, has violated this chapter;
255 (b) a fact or condition exists regarding the pawnbroking business or the licensee which,
256 if it had existed or had been known to exist when the original application for a license was filed,
257 would have been cause for the department to deny a license under this chapter;
258 (c) the licensee has aided, abetted, or conspired with another to circumvent or violate the
259 requirements of this chapter; or
260 (d) the licensee or a legal or beneficial owner of the licensee has been convicted of a crime
261 that the department finds directly relates to the duties and responsibilities of the occupation of a
262 pawnbroker.
263 (2) The department may conditionally license or place on probation a person whose license
264 has been suspended or may reprimand a licensee for a violation of this chapter. The department
265 may make rules to regarding taking action under this Subsection (2).
266 (3) A licensee may surrender a license by delivering it to the department with written
267 notice of its surrender. However, a surrender of a license does not affect the civil or criminal
268 liability of the licensee for acts committed prior to the surrender.
269 (4) (a) The revocation, suspension, or surrender of a license does not affect the obligation
270 of a pre-existing lawful contract between the licensee and a pledgor.
271 (b) A pawn transaction made by a person not licensed under this chapter is void as a pawn
272 transaction.
273 (5) The department may reinstate a suspended license or issue a new license to a person

274 whose license has been revoked if no fact or condition exists at the time of reinstatement which
275 would have justified the department in refusing originally to issue the license.
276 (6) For each pawnshop that a licensee has a license to operate, the licensee shall maintain
277 either:
278 (a) a net worth of not less than $100,000; or
279 (b) a bond on file in the amount of $100,000 for that pawnshop that meets the
280 requirements, other than the amount of the bond, under Section 7-24-105 .
281 Section 7. Section 7-24-107 is enacted to read:
282 7-24-107. Pawn ticket.
283 (1) When a pawn transaction is made, the pawnbroker shall enter on the pawn ticket the
284 information required in this section, which shall be typed or written in ink and in the English
285 language.
286 (2) (a) Regarding the pledged property, the pawn ticket shall include a complete and
287 accurate description of the pledged property, including the following information, if applicable:
288 (i) brand name;
289 (ii) model number;
290 (iii) serial number, if issued by the manufacturer and not intentionally defaced or altered;
291 (iv) size;
292 (v) color, but not applicable to diamonds;
293 (vi) gold content, if indicated;
294 (vii) precious stone description, including the number of stones; and
295 (viii) any other unique identifying feature.
296 (b) If multiple items of a similar nature are delivered together in one transaction and the
297 items do not bear serial or model numbers and do not include precious metal or gemstones, such
298 as musical or video recordings, books, or hand tools, the description of the items is adequate if it
299 includes the quantity of items and a description of the type of items delivered.
300 (3) Regarding the pledgor, the pawn ticket shall include:
301 (a) the name, residence address, date of birth, and physical description of the pledgor;
302 (b) the type of identification and the identification number accepted from the pledgor;
303 (c) the pledgor's signature; and
304 (d) a legible fingerprint, preferably the right thumb, next to the pledgor's signature.

305 (4) Regarding the pawn transaction, the pawn ticket shall include:
306 (a) the date of the pawn transaction;
307 (b) the amount of cash advanced, which shall be designated as the "amount financed";
308 (c) the maturity date of the pawn transaction, which shall be 15 days after the date of the
309 pawn transaction;
310 (d) the total pawn service charge payable on the maturity date, which shall be designated
311 as the "finance charge";
312 (e) the total amount, which is the amount financed plus the finance charge, that must be
313 paid to redeem the pledged property on the maturity date, which shall be designated as the "total
314 of payments"; and
315 (f) the annual percentage rate, computed in accordance with the regulations adopted by the
316 Federal Reserve Board pursuant to the Federal Truth-in-Lending Act, 15 U.S.C. Sec. 1601 et seq.
317 (5) The pawn ticket shall also include the following information:
318 (a) the name and address of the pawnshop;
319 (b) a clearly legible statement that "Any personal property pledged to a pawnbroker within
320 this state which is not redeemed within 15 days following the maturity date of the pawn transaction
321 is automatically forfeited to the pawnbroker, and absolute right, title, and interest in and to the
322 property vests immediately in the pawnbroker without further notice to the pledgor of the
323 property";
324 (c) a clearly legible statement that "The pledgor is not obligated to redeem the pledged
325 property";
326 (d) a clearly legible statement that "The pledgor of this item represents and warrants that
327 it is not stolen, that it has no liens or encumbrances against it, and that the pledgor has the right to
328 sell or pawn the item"; and
329 (e) a blank line for the pledgor's signature.
330 (6) When the pawn transaction is made, the pawnbroker shall deliver to the pledgor an
331 exact copy of the pawn ticket.
332 Section 8. Section 7-24-108 is enacted to read:
333 7-24-108. Purchase of property.
334 A pawnbroker may not enter into a purchase transaction with any person other than a
335 manufacturer, wholesaler, permitted vendor, or another pawnbroker unless, when the purchase

336 transaction is made, the pawnbroker establishes a written record that contains:
337 (1) the name, residence address, date of birth, and physical description of the seller;
338 (2) the date of the purchase transaction;
339 (3) the type of identification accepted from the seller and the identification number;
340 (4) a complete and accurate description of the purchased property, including the
341 information required by Section 7-24-107 ; and
342 (5) a signed statement from the seller representing and warranting that the purchased
343 property is not stolen, that the property has no liens or encumbrances against it, and that the seller
344 has the right to sell the purchased property.
345 Section 9. Section 7-24-109 is enacted to read:
346 7-24-109. Recordkeeping -- Holding period.
347 (1) A pawnbroker shall maintain on the pawnshop premises a written, paper record of all
348 pawn and purchase transactions pursuant to Sections 7-24-107 and 7-24-108 .
349 (2) Except for vehicles and property purchased from a manufacturer, wholesaler, or
350 permitted vendor, a pawnbroker shall maintain all purchased property on the pawnshop premises
351 for at least 30 calendar days before the property may be offered for resale.
352 Section 10. Section 7-24-110 is enacted to read:
353 7-24-110. Pawn transaction database.
354 (1) (a) The department shall contract in accordance with Title 63, Chapter 56, Utah
355 Procurement Code, with a third party to establish and maintain a pawn transaction database in
356 compliance with this section.
357 (b) The database shall provide local law enforcement officials with useful information to
358 facilitate the investigation of alleged property crimes while at the same time protecting the privacy
359 rights of pawnbrokers and pawnshop customers with regard to pawn transactions.
360 (2) The database shall contain the pawn transaction information provided by pawnbrokers
361 under Section 7-24-111 and shall be updated at least daily on business days.
362 (3) (a) The third party shall charge law enforcement agencies an initial set up fee of not
363 more than $150 per individual law enforcement officer having access to the database, and not more
364 than $15 per individual law enforcement officer per month for access to the database.
365 (b) The contract made under Subsection (1) may not require that pawnbrokers be assessed
366 a fee for access to the database for either entering information or for looking up information.

367 (4) (a) A local law enforcement official may download in a single batch, not more
368 frequently than every 24 hours, all pawn transaction information, except the name of the pledgor,
369 transmitted to the database by any pawnshop located in the law enforcement official's jurisdiction.
370 (b) The third party is not liable for the manner in which a law enforcement official uses
371 the information after it is downloaded.
372 (5) The database shall meet all of the following requirements:
373 (a) Pawnbrokers shall be able to transmit to the database reportable data for each pawn
374 transaction, and to correct errors in the data, over the Internet.
375 (b) The information in the database is accessible over the Internet.
376 (c) The only authorized users of the database are local law enforcement officials and
377 pawnbrokers. A pawnbroker may not access database information other than the information
378 provided by that pawnbroker.
379 (d) A user is required to disclose the user's identity to the database before performing a
380 look-up.
381 (e) To access the identity of a pledgor in a pawn transaction, a user is required to provide
382 the database with a case number of a criminal action for which the pledgor's identity is needed and
383 to represent that the information is sought in connection with the investigation of a crime involving
384 the pledged property delivered by the pledgor in that pawn transaction.
385 (f) The database shall allow a local law enforcement official to access database
386 information from any other jurisdiction that also transmits information to the database.
387 (g) For each look-up, the database shall record the identity of the person doing the look-up,
388 the pawn transaction accessed in the look-up and, if accessed, the identity of the pledgor. This
389 look-up information shall be available to all other users.
390 (6) A person who gains access to the database under false pretenses is guilty of a class A
391 misdemeanor.
392 (7) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
393 department shall make rules and develop procedures for the purpose of administering and
394 enforcing this section.
395 Section 11. Section 7-24-111 is enacted to read:
396 7-24-111. Electronic reporting to law enforcement officials.
397 (1) As used in this section:

398 (a) "Phase-in period" means a period of six months, beginning when the pawn transaction
399 database under Subsection 7-24-110 (1) is initially capable of receiving pawnshop transaction
400 information.
401 (b) "Test period" means a period commencing on the date a pawnbroker commences
402 transmitting reportable data. The length of the test period is that period agreed upon by the local
403 law enforcement official and the pawnbroker, but may not exceed 90 days.
404 (2) (a) Within 90 days after the effective date of this chapter, a pawnbroker shall obtain
405 a computer system capable of transmitting reportable data in accordance with the requirements of
406 this section.
407 (b) A pawnbroker's failure to comply with Subsection (2)(a) is grounds for the department
408 to deny the pawnbroker a temporary or permanent license or, if the pawnbroker has received a
409 temporary or permanent license, to suspend or revoke the license.
410 (3) A pawnbroker who has obtained a computer system capable of transmitting reportable
411 data in accordance with the requirements of this section shall:
412 (a) before the expiration of the phase-in period, make available all reportable data to the
413 local law enforcement official by transmitting it over the Internet to the pawn transaction database,
414 but a pawnbroker is not responsible for a delay in transmission that results from a malfunction in
415 the database;
416 (b) transmit all reportable data for one business day to the database before the end of the
417 following business day; and
418 (c) during a test period also make available copies of each of the underlying pawn or
419 purchase transaction documents to enable the local law enforcement official to verify that the
420 reportable data is being accurately reported.
421 (4) If either a pawnbroker or the local law enforcement official discovers an error in the
422 transmitted reportable data, the pawnbroker shall be allowed a period of at least 30 days to correct
423 that error, commencing upon the earlier of the pawnbroker's:
424 (a) reported discovery of the error; or
425 (b) receipt of notice from the local law enforcement official.
426 (5) If a pawnbroker experiences a computer malfunction, the pawnbroker shall be allowed
427 a period of at least 30 days within which to repair the malfunction, and during this period of time
428 the pawnbroker is not in violation of this section if the pawnbroker is making a bona fide effort

429 to repair the malfunction.
430 (6) During the periods under Subsections (4) and (5), the pawnbroker and the local law
431 enforcement official shall arrange a mutually acceptable alternative method by which the
432 pawnbroker provides the reportable data to the local law enforcement official.
433 (7) This section does not require a pawnbroker to:
434 (a) make available paper copies of the transaction documents underlying the reportable
435 data except as expressly provided in Subsection (3)(c); or
436 (b) take an action to deliver the paper copies of the transaction documents other than
437 making them available to the local law enforcement official at the pawnbroker's place of business.
438 (8) The department may not regulate the electronic transmission of reportable data in a
439 manner that is inconsistent with the requirements of this section.
440 Section 12. Section 7-24-112 is enacted to read:
441 7-24-112. Confidentiality of pawn and purchase transactions.
442 All records and information relating to pawn and purchase transactions delivered to a local
443 law enforcement official or transmitted to the pawn transaction database pursuant to Section
444 7-24-111 are protected records under Section 63-2-304 and may be used only by law enforcement
445 officials and only for the following official law enforcement purposes:
446 (1) the investigation of a crime specifically involving the item of property delivered to the
447 pawnbroker in a pawn or purchase transaction;
448 (2) the investigation of a pawnbroker's possible specific violation of the recordkeeping or
449 reporting requirements of this chapter, but only when the local law enforcement official, based on
450 a review of the records and information received, has probable cause to believe that a violation has
451 occurred; and
452 (3) upon inquiry from the alleged owner of an item of property delivered to a pawnbroker
453 by another person in a pawn or purchase transaction, the disclosure to the alleged owner of the
454 name and address of the pawnbroker, the name and address of the conveying customer, or a
455 description of the item of property.
456 Section 13. Section 7-24-113 is enacted to read:
457 7-24-113. Pledged property not redeemed.
458 (1) A pledgor has no obligation to redeem pledged property or to make a payment on a
459 pawn transaction.

460 (2) Pledged property not redeemed within 15 days following the maturity date of a pawn
461 transaction is automatically forfeited to the pawnbroker, who then has absolute right, title, and
462 interest in the forfeited property without further notice to the pledgor.
463 Section 14. Section 7-24-114 is enacted to read:
464 7-24-114. Required business practices - replacement of lost property -- Inspection of
465 pawn records.
466 (1) A pawnbroker shall:
467 (a) maintain a record of each pawn and purchase transaction for at least two years;
468 (b) exercise reasonable care to protect pledged property from loss or damage; and
469 (c) return or replace pledged property to a pledgor upon payment of the full amount due
470 the pawnbroker, unless the pledged property has been taken into custody by a local law
471 enforcement authority or on court order.
472 (2) (a) If pledged property is lost or damaged while in the possession of the pawnbroker,
473 the pawnbroker may satisfy the pledgor's claim by replacing the lost or damaged property with like
474 kinds of merchandise.
475 (b) Proof of replacement in compliance with this Subsection (2) is a defense to any
476 prosecution or civil action.
477 (c) For the purposes of this subsection, "lost" includes pledged property that has been
478 destroyed or has disappeared due to an occurrence, other than the willful act or omission of the
479 pawnbroker, that results in the pledged property being unavailable for return to the pledgor.
480 (3) A pawnbroker shall allow the department and the local law enforcement official to
481 inspect the pawnbroker's pawn or purchase records during the ordinary hours of business or at
482 another time acceptable to both parties.
483 Section 15. Section 7-24-115 is enacted to read:
484 7-24-115. Prohibited acts.
485 A pawnbroker may not:
486 (1) fail to make an entry of a material matter in the pawnbroker's records of a pawn or
487 purchase transaction;
488 (2) falsify, obliterate, destroy, or remove from the pawnshop any records, books, or
489 accounts relating to the pawnbroker's pawn or purchase transactions;
490 (3) accept pledged property with a serial number that has been intentionally defaced or

491 altered;
492 (4) accept pledged property or purchase property from a person under the age of 18 years;
493 (5) make an agreement requiring the personal liability of a pledgor or the waiver of a
494 provision of this chapter;
495 (6) conduct business at the pawnbroker's place of business on a Sunday or before the hour
496 of 7:30 a.m. or after the hour of 7 p.m. on any other day, except that during the month of
497 December, the hour of 7 p.m. is extended to 10 p.m.; or
498 (7) sell or otherwise charge for insurance in connection with a pawn transaction.
499 Section 16. Section 7-24-116 is enacted to read:
500 7-24-116. Right to redeem -- Lost ticket.
501 (1) A person who provides identification and who presents a pawn ticket to the
502 pawnbroker is presumed to be entitled to redeem the pledged property described on the ticket.
503 (2) (a) If a pawn ticket is lost, destroyed, or stolen, the pledgor shall notify the pawnbroker
504 in writing.
505 (b) If the pledged property has not previously been redeemed, then the pawnbroker's
506 receipt of this notice invalidates the pawn ticket.
507 (3) (a) Before delivering the pledged property or issuing a new pawn ticket to the pledgor
508 reporting the lost pawn ticket, the pawnbroker shall require the pledgor to make a written statement
509 of the loss, destruction, or theft of the ticket.
510 (b) The pawnbroker shall record on the written statement the type of identification and the
511 identification number provided by the pledgor, the date the statement is given, and the number of
512 the lost, destroyed, or stolen pawn ticket. The statement shall be signed by the pawnbroker or the
513 pawnshop employee who accepts the statement from the pledgor.
514 (4) A pawnbroker may charge a fee not to exceed $2 for handling the paperwork in
515 connection with each lost, destroyed, or stolen pawn ticket.
516 Section 17. Section 7-24-117 is enacted to read:
517 7-24-117. Pawnbroker's lien.
518 (1) A pawnbroker has a lien on pledged property as security for the amount financed and
519 the finance charge for that property, but not for other amounts owed by the pledgor to the
520 pawnbroker.
521 (2) Except as otherwise provided in this chapter, the pawnbroker shall retain possession

522 of the pledged property until the lien is satisfied. The pawnbroker may only be compelled to
523 relinquish possession of the pledged property after receipt of the amount financed plus the accrued
524 finance charge.
525 Section 18. Section 7-24-118 is enacted to read:
526 7-24-118. Claims against property held by pawnbrokers.
527 (1) As used in this section:
528 (a) "Claimant" means a person who claims that his property has been mis-appropriated and
529 then delivered into the possession of a pawnbroker;
530 (b) "Conveying customer" means a person who delivers property into the custody of a
531 pawnbroker, either by pawn, sale, or trade, and this property is later claimed to be misappropriated;
532 and
533 (c) "Disputed property" means the property claimed to be misappropriated.
534 (2) (a) A pawnbroker has no recourse against a pledgor for payment on a pawn transaction
535 except the pledged property itself, unless the pledged property is found by a court of competent
536 jurisdiction to be misappropriated.
537 (b) If the pledged property is found by a court of competent jurisdiction to be
538 misappropriated, the pawnbroker shall deliver the pledged property as the court directs.
539 (3) (a) To obtain possession of disputed property, a claimant shall:
540 (i) file with the local law enforcement official a police report with regard to the disputed
541 property;
542 (ii) file a petition in a court of competent jurisdiction requesting return of the disputed
543 property naming the pawnbroker as a defendant; and
544 (iii) serve the pawnbroker with the petition.
545 (b) The court shall waive any filing fee for the petition to recover the property, and the
546 sheriff shall waive the service fees.
547 (c) (i) At least ten days prior to filing the petition, the claimant shall provide to the
548 pawnbroker a copy of the police report and written notice of the claim, so that the pawnbroker has
549 an opportunity to investigate and resolve the claim.
550 (ii) If the claimant does not provide a copy of the police report and the claim to the
551 pawnbroker in accordance with this Subsection (3)(c), the claimant may not recover attorneys' fees
552 as the prevailing party in the action to recover the property.

553 (4) The pawnbroker shall hold the disputed property until the right to possession is
554 resolved by the parties or determined by a court of competent jurisdiction.
555 (5) (a) The filing of a petition to recover disputed property in accordance with this section
556 shall be accepted as a criminal complaint by the prosecuting attorney with jurisdiction over the
557 conveying customer.
558 (b) A civil judgment in favor of a claimant shall be accepted in a criminal prosecution
559 against the conveying customer as rebuttable proof of theft or misappropriation of the pledged
560 property, if the conveying customer was a party to the civil case.
561 (6) When a pledgor makes a pawn transaction in this state:
562 (a) the pledgor is considered to have agreed to be subject to the jurisdiction of the courts
563 of this state in all civil actions and proceedings arising out of the pawn transaction filed by either
564 a resident or nonresident plaintiff; and
565 (b) if the pledgor is a nonresident, the pledgor is considered to have:
566 (i) appointed the director of the department as the pledgor's lawful attorney and agent upon
567 whom may be served all process in actions and proceedings arising out of the pawn transaction;
568 and
569 (ii) agreed that any process served upon the director of the department has the same legal
570 force and validity as if personally served upon the pledgor in this state.
571 (7) When a claimant files a petition to recover disputed property, the pawnbroker shall
572 joint the conveying customer as a party to that action. If, after notice to the pawnbroker and the
573 joinder of the conveying customer, the property is found by a court of competent jurisdiction to
574 be misappropriated and is awarded to the claimant:
575 (a) the claimant is entitled to recover from the conveying customer the cost of the action,
576 including the claimant's reasonable attorneys' fees, if the claimant provided the police report and
577 the notice to the pawnbroker required by Subsection (3)(c);
578 (b) the conveying customer is liable to repay the pawnbroker the amount financed and all
579 accrued finance charges;
580 (c) the conveying customer shall indemnify the pawnbroker for the costs paid by the
581 pawnbroker that were incurred by the claimant, including the claimant's reasonable attorneys' fees;
582 and
583 (d) the conveying customer is liable for the costs incurred by the pawnbroker in taking

584 action under this section, including the pawnbroker's reasonable attorneys' fees.
585 (8) If the court finds that the claimant was not entitled to the disputed property, then the
586 claimant is liable for the pawnbroker's and conveying customer's costs incurred in taking action
587 under this section, including the reasonable attorneys' fees of the pawnbroker and the conveying
588 customer.
589 (9) (a) (i) When a person purchases property from a pawnbroker and a claimant later
590 alleges the property is misappropriated, and a petition for return of the property is filed in a court
591 of competent jurisdiction and served on the purchaser, the purchaser shall notify the pawnbroker
592 and give the pawnbroker the opportunity to defend against the petition, including the opportunity
593 to join the conveying customer as a party to the action.
594 (ii) If the purchaser fails to give the pawnbroker notice and an opportunity to defend
595 against the petition as required in Subsection (9)(a)(i), the purchaser waives the right to recover
596 the attorneys' fees from the pawnbroker.
597 (b) If, after notice to the pawnbroker and opportunity to join the conveying customer, the
598 property is found by a court of competent jurisdiction to be misappropriated:
599 (i) the purchaser has a right of action against the pawnbroker for reimbursement of the
600 money paid to the pawnbroker for the property and the costs of the action, including the
601 purchaser's reasonable attorneys' fees;
602 (ii) the pawnbroker has a right of action against the conveying customer for the full amount
603 the conveying customer received from the pawnbroker for the property, plus the total pawn service
604 charges payable.
605 (iii) the conveying customer shall indemnify the pawnbroker for the costs incurred by the
606 purchaser, including the reasonable attorneys' fees of the purchaser; and
607 (iv) the pawnbroker has a right of action against the conveying customer for the costs
608 incurred by the pawnbroker in pursuing the procedure described in this section, including the
609 reasonable attorneys' fees of the pawnbroker.
610 (10) (a) The conveying customer is guilty of the crime of fraudulently pledging or selling
611 misappropriated property if the conveying customer fails to repay the pawnbroker the full amount
612 owed to the pawnbroker within ten days after written demand for payment and notice that the
613 property in question was misappropriated is deposited as certified or registered mail in the United
614 States mail and addressed to the conveying customer.

615 (b) Fraudulently pledging or selling misappropriated property is a:
616 (i) class B misdemeanor if the amount received from the pawnbroker was less than $50;
617 (ii) class A misdemeanor if the amount received from the pawnbroker was at least $50 but
618 less than $150; and
619 (iii) a third degree felony if the amount received from the pawnbroker was $150 or more.
620 (11) (a) If an item of property is the subject of a lease or rental transaction between the
621 claimant and a lease or rental customer when it is sold or pledged to the pawnbroker as part of a
622 pawn transaction, the property is not considered misappropriated unless it bears a conspicuous
623 permanent label or marking identifying it as the claimant's property.
624 (b) (i) Property subject to a lease or rental transaction which is not marked as provided in
625 Subsection (11)(a) may be recovered by the claimant only upon payment to the pawnbroker of all
626 moneys owing to or advanced by the pawnbroker in the pawn or purchase transaction and upon
627 producing evidence identifying the property as having been the property of the claimant and having
628 been leased or rented when the property was placed in the pawnbroker's possession.
629 (ii) The pawnbroker does not have liability regarding the recovery of leased or rental
630 property that is not marked under Subsection (11)(a).
631 Section 19. Section 7-24-119 is enacted to read:
632 7-24-119. Police holds on property.
633 (1) (a) When a law enforcement official has probable cause to believe that property in
634 possession of a pawnbroker is misappropriated, the official may place a written hold order on the
635 property through the local law enforcement official in whose jurisdiction the pawnshop is located.
636 (b) The initial term of the written hold order may not exceed one month, except that the
637 holding period may be extended for up to two additional successive one-month increments upon
638 written notification to the pawnbroker prior to the expiration of the immediately preceding holding
639 period. Any other extensions shall be by court order.
640 (c) If the holding period has expired and has not been extended under this Subsection (1),
641 the hold order expires, and the pawnbroker shall notify the local law enforcement official that the
642 hold order is no longer in effect.
643 (d) If, on the tenth business day after written notice is delivered to the local law
644 enforcement official stating that the hold order is no longer in effect, the local law enforcement
645 official has not provided to the pawnbroker an additional hold order to extend the hold or, if no

646 additional extension periods are available under this section, has not furnished a court order
647 extending the hold order, title to the property reverts to the pawnbroker, subject to any restrictions
648 contained in the pawn transaction contract and subject to the provisions of this section.
649 (2) A hold order required by this section shall contain:
650 (a) the name of the pawnbroker;
651 (b) the name, title, and identification number of the representative of the local law
652 enforcement official placing the hold order;
653 (c) the name and address of the law enforcement agency to which the representative is
654 attached and the number, if any, assigned by the agency to the claim regarding the property;
655 (d) a complete description of the property to be held, including model number, and serial
656 number if applicable;
657 (e) the name of the person who reported the property as misappropriated;
658 (f) the mailing address of the pawnshop where the property is held; and
659 (g) the expiration date of the holding period.
660 (3) The pawnbroker or his designee shall sign and date a copy of the hold order as
661 evidence of receipt of the hold order and the beginning of the initial one-month holding period.
662 (4) (a) Upon written receipt, and while a hold order is in effect, a pawnbroker may release
663 the property subject to the hold order to the custody of the local law enforcement official for the
664 purpose of furthering a criminal investigation.
665 (b) The release of the property to the custody of the local law enforcement official is not
666 considered a waiver or release of the pawnbroker's property rights or interest in the property.
667 (c) Upon completion of the criminal investigation, the local law enforcement official shall
668 return the property to the pawnbroker.
669 (5) Except as provided in this section, a pawnbroker may not release or dispose of property
670 subject to a holding order except as directed by a court order or upon the expiration of the holding
671 period, including all extensions. A hold order may be released prior to the expiration of a
672 one-month holding period by written release from the law enforcement official placing the initial
673 hold order.
674 (6) The prosecuting attorney with jurisdiction over the pledgor shall notify the pawnbroker
675 in writing in cases where criminal charges have been filed and the property may be needed as
676 evidence. The notice shall contain the case number, the style of the case, and a description of the

677 property. The pawnbroker shall hold the property until receiving notice of the disposition of the
678 case from the prosecuting attorney. The prosecuting attorney shall notify the pawnbroker and the
679 claimant in writing within 15 days of the disposition of the case.
680 (7) Gross negligence or willful noncompliance by a pawnbroker regarding a written hold
681 order is cause for the department to either suspend or revoke the pawnbroker's license.
682 Section 20. Section 7-24-120 is enacted to read:
683 7-24-120. Examination of books, accounts, and records by the department.
684 (1) (a) The department may examine the books, accounts, and records of a pawnshop or
685 a pawnbroker and may make investigations to determine compliance with this chapter.
686 (b) The department shall allow a local law enforcement official to be present at the
687 examination.
688 (2) In accordance with Section 7-1-401 , the department may charge a fee for an
689 examination conducted under Subsection (1).
690 Section 21. Section 7-24-121 is enacted to read:
691 7-24-121. Pawnbroking advisory committee.
692 (1) There is created within the department the pawnbroking advisory committee.
693 (2) The advisory committee consists of the following volunteer members appointed by the
694 commissioner of the department:
695 (a) one representative of law enforcement who is a designee of the state attorney general;
696 (b) one representative of the department; and
697 (c) one representative of the pawnbroking industry.
698 (3) (a) Except as required by Subsection (3)(b), as terms of current committee members
699 expire, the commissioner shall appoint each new member or reappointed member to a six-year
700 term.
701 (b) Notwithstanding Subsection (3)(a), the commissioner shall, at the time of appointment
702 or reappointment, adjust the length of terms to ensure that the terms of committee members are
703 staggered so that one committee member is appointed every two years.
704 (4) When a vacancy occurs in the membership for any reason, the replacement shall be
705 appointed for the unexpired term.
706 (5) The committee shall advise and consult with the department on all matters pertaining
707 to the promulgation of rules to implement this chapter and the enforcement of this chapter.

708 (6) The department shall:
709 (a) determine, by rule, the causes for removal of committee members;
710 (b) establish committee procedures and administration policies consistent with this chapter
711 and department rule; and
712 (c) provide administrative support to the committee.
713 Section 22. Section 7-24-122 is enacted to read:
714 7-24-122. Violations and penalties -- Enforcement.
715 (1) (a) Except as provided in Subsection (1)(b), a person who operates a pawnshop without
716 a license under this chapter is guilty of a third degree felony and is subject to a fine of not more
717 than $5,000 or by imprisonment for not more than five years, or both.
718 (b) A person who operates a pawnshop without a license because of a failure to renew a
719 license is not in violation of Subsection (1)(a) unless the license has expired pursuant to
720 Subsection 7-24-103 (7)(c).
721 (2) In addition to any other applicable penalty, a licensee who willfully violates any
722 provision of this chapter is guilty of a class A misdemeanor.
723 (3) The department shall enforce the provisions of this act by exercise of its statutory
724 authority.
725 (4) (a) When the department has probable cause to believe that a person is violating this
726 chapter, the department may enter an order requiring the person to cease and desist from violating
727 the chapter.
728 (b) The department may sue in any district court of this state having jurisdiction and venue
729 to enjoin the person from violating this chapter. In this an action, the court may enter an order
730 awarding a preliminary or permanent injunction.
731 Section 23. Section 7-24-123 is enacted to read:
732 7-24-123. Criminal history records.
733 The Criminal Investigations and Technical Services Division of the Department of Public
734 Safety, established in Section 53-10-103 , shall on request release to the department of any
735 available criminal history records, conviction records, and warrant of arrest records on an
736 individual applying for or holding a license under this chapter.
737 Section 24. Section 7-24-124 is enacted to read:
738 7-24-124. Preemption.

739 This chapter preempts all city, county, and other local laws and ordinances governing
740 pawnbrokers and pawnbroking transactions that are more restrictive than the provision of this
741 chapter or that are not consistent with this chapter.
742 Section 25. Section 7-24-125 is enacted to read:
743 7-24-125. Transition period for licensing.
744 Pawnbrokers operating pawnshops in business on the effective date of this chapter may
745 continue to operate through December 31, 2001. Prior to that date the pawnbroker shall apply for
746 a license from the department and shall complete the licensure process under this chapter so that
747 the pawnshop is licensed under this chapter on and after January 1, 2002.
748 Section 26. Section 11-6-1 is amended to read:
749 11-6-1. Records to be kept -- Availability to peace officers.
750 Pawnbrokers and dealers in secondhand goods shall keep records containing a description
751 of all articles received by them, the amounts paid therefor or advanced thereon, a general
752 description of the person from whom received, together with his name and address and the date
753 of the transaction. [Such] These records shall at all reasonable times be accessible to any peace
754 officer who demands an inspection [thereof], and any further information regarding [such] the
755 transaction that he may require shall be [given] provided by pawnbrokers and secondhand dealers
756 to the best of their ability. [In cities of the first and the second class at the close of each day's
757 business pawnbrokers shall mail a copy of such records to the sheriff of the county in which they
758 are located.] A pawnbroker's or second-hand dealer's compliance with Sections 7-24-107 and
759 7-24-108 and Subsections 7-24-109 (1) and 7-24-114 (3) satisfies the requirements of this section.
760 Section 27. Section 63-2-304 is amended to read:
761 63-2-304. Protected records.
762 The following records are protected if properly classified by a governmental entity:
763 (1) trade secrets as defined in Section 13-24-2 if the person submitting the trade secret has
764 provided the governmental entity with the information specified in Section 63-2-308 ;
765 (2) commercial information or nonindividual financial information obtained from a person
766 if:
767 (a) disclosure of the information could reasonably be expected to result in unfair
768 competitive injury to the person submitting the information or would impair the ability of the
769 governmental entity to obtain necessary information in the future;

770 (b) the person submitting the information has a greater interest in prohibiting access than
771 the public in obtaining access; and
772 (c) the person submitting the information has provided the governmental entity with the
773 information specified in Section 63-2-308 ;
774 (3) commercial or financial information acquired or prepared by a governmental entity to
775 the extent that disclosure would lead to financial speculations in currencies, securities, or
776 commodities that will interfere with a planned transaction by the governmental entity or cause
777 substantial financial injury to the governmental entity or state economy;
778 (4) records the disclosure of which could cause commercial injury to, or confer a
779 competitive advantage upon a potential or actual competitor of, a commercial project entity as
780 defined in Subsection 11-13-3 (3);
781 (5) test questions and answers to be used in future license, certification, registration,
782 employment, or academic examinations;
783 (6) records the disclosure of which would impair governmental procurement proceedings
784 or give an unfair advantage to any person proposing to enter into a contract or agreement with a
785 governmental entity, except that this subsection does not restrict the right of a person to see bids
786 submitted to or by a governmental entity after bidding has closed;
787 (7) records that would identify real property or the appraisal or estimated value of real or
788 personal property, including intellectual property, under consideration for public acquisition before
789 any rights to the property are acquired unless:
790 (a) public interest in obtaining access to the information outweighs the governmental
791 entity's need to acquire the property on the best terms possible;
792 (b) the information has already been disclosed to persons not employed by or under a duty
793 of confidentiality to the entity;
794 (c) in the case of records that would identify property, potential sellers of the described
795 property have already learned of the governmental entity's plans to acquire the property; or
796 (d) in the case of records that would identify the appraisal or estimated value of property,
797 the potential sellers have already learned of the governmental entity's estimated value of the
798 property;
799 (8) records prepared in contemplation of sale, exchange, lease, rental, or other
800 compensated transaction of real or personal property including intellectual property, which, if

801 disclosed prior to completion of the transaction, would reveal the appraisal or estimated value of
802 the subject property, unless:
803 (a) the public interest in access outweighs the interests in restricting access, including the
804 governmental entity's interest in maximizing the financial benefit of the transaction; or
805 (b) when prepared by or on behalf of a governmental entity, appraisals or estimates of the
806 value of the subject property have already been disclosed to persons not employed by or under a
807 duty of confidentiality to the entity;
808 (9) records created or maintained for civil, criminal, or administrative enforcement
809 purposes or audit purposes, or for discipline, licensing, certification, or registration purposes, if
810 release of the records:
811 (a) reasonably could be expected to interfere with investigations undertaken for
812 enforcement, discipline, licensing, certification, or registration purposes;
813 (b) reasonably could be expected to interfere with audits, disciplinary, or enforcement
814 proceedings;
815 (c) would create a danger of depriving a person of a right to a fair trial or impartial hearing;
816 (d) reasonably could be expected to disclose the identity of a source who is not generally
817 known outside of government and, in the case of a record compiled in the course of an
818 investigation, disclose information furnished by a source not generally known outside of
819 government if disclosure would compromise the source; or
820 (e) reasonably could be expected to disclose investigative or audit techniques, procedures,
821 policies, or orders not generally known outside of government if disclosure would interfere with
822 enforcement or audit efforts;
823 (10) records the disclosure of which would jeopardize the life or safety of an individual;
824 (11) records the disclosure of which would jeopardize the security of governmental
825 property, governmental programs, or governmental recordkeeping systems from damage, theft, or
826 other appropriation or use contrary to law or public policy;
827 (12) records that, if disclosed, would jeopardize the security or safety of a correctional
828 facility, or records relating to incarceration, treatment, probation, or parole, that would interfere
829 with the control and supervision of an offender's incarceration, treatment, probation, or parole;
830 (13) records that, if disclosed, would reveal recommendations made to the Board of
831 Pardons and Parole by an employee of or contractor for the Department of Corrections, the Board

832 of Pardons and Parole, or the Department of Human Services that are based on the employee's or
833 contractor's supervision, diagnosis, or treatment of any person within the board's jurisdiction;
834 (14) records and audit workpapers that identify audit, collection, and operational
835 procedures and methods used by the State Tax Commission, if disclosure would interfere with
836 audits or collections;
837 (15) records of a governmental audit agency relating to an ongoing or planned audit until
838 the final audit is released;
839 (16) records prepared by or on behalf of a governmental entity solely in anticipation of
840 litigation that are not available under the rules of discovery;
841 (17) records disclosing an attorney's work product, including the mental impressions or
842 legal theories of an attorney or other representative of a governmental entity concerning litigation;
843 (18) records of communications between a governmental entity and an attorney
844 representing, retained, or employed by the governmental entity if the communications would be
845 privileged as provided in Section 78-24-8 ;
846 (19) personal files of a legislator, including personal correspondence to or from a member
847 of the Legislature, but not correspondence that gives notice of legislative action or policy;
848 (20) (a) records in the custody or control of the Office of Legislative Research and General
849 Counsel, that, if disclosed, would reveal a particular legislator's contemplated legislation or
850 contemplated course of action before the legislator has elected to support the legislation or course
851 of action, or made the legislation or course of action public; and
852 (b) for purposes of this subsection, a "Request For Legislation" submitted to the Office of
853 Legislative Research and General Counsel is a public document unless a legislator submits the
854 "Request For Legislation" with a request that it be maintained as a protected record until such time
855 as the legislator elects to make the legislation or course of action public;
856 (21) research requests from legislators to the Office of Legislative Research and General
857 Counsel or the Office of the Legislative Fiscal Analyst and research findings prepared in response
858 to these requests;
859 (22) drafts, unless otherwise classified as public;
860 (23) records concerning a governmental entity's strategy about collective bargaining or
861 pending litigation;
862 (24) records of investigations of loss occurrences and analyses of loss occurrences that

863 may be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the Uninsured
864 Employers' Fund, or similar divisions in other governmental entities;
865 (25) records, other than personnel evaluations, that contain a personal recommendation
866 concerning an individual if disclosure would constitute a clearly unwarranted invasion of personal
867 privacy, or disclosure is not in the public interest;
868 (26) records that reveal the location of historic, prehistoric, paleontological, or biological
869 resources that if known would jeopardize the security of those resources or of valuable historic,
870 scientific, educational, or cultural information;
871 (27) records of independent state agencies if the disclosure of the records would conflict
872 with the fiduciary obligations of the agency;
873 (28) records of a public institution of higher education regarding tenure evaluations,
874 appointments, applications for admissions, retention decisions, and promotions, which could be
875 properly discussed in a meeting closed in accordance with Title 52, Chapter 4, Open and Public
876 Meetings, provided that records of the final decisions about tenure, appointments, retention,
877 promotions, or those students admitted, may not be classified as protected under this section;
878 (29) records of the governor's office, including budget recommendations, legislative
879 proposals, and policy statements, that if disclosed would reveal the governor's contemplated
880 policies or contemplated courses of action before the governor has implemented or rejected those
881 policies or courses of action or made them public;
882 (30) records of the Office of the Legislative Fiscal Analyst relating to budget analysis,
883 revenue estimates, and fiscal notes of proposed legislation before issuance of the final
884 recommendations in these areas;
885 (31) records provided by the United States or by a government entity outside the state that
886 are given to the governmental entity with a requirement that they be managed as protected records
887 if the providing entity certifies that the record would not be subject to public disclosure if retained
888 by it;
889 (32) transcripts, minutes, or reports of the closed portion of a meeting of a public body
890 except as provided in Section 52-4-7 ;
891 (33) records that would reveal the contents of settlement negotiations but not including
892 final settlements or empirical data to the extent that they are not otherwise exempt from disclosure;
893 (34) memoranda prepared by staff and used in the decision-making process by an

894 administrative law judge, a member of the Board of Pardons and Parole, or a member of any other
895 body charged by law with performing a quasi-judicial function;
896 (35) records that would reveal negotiations regarding assistance or incentives offered by
897 or requested from a governmental entity for the purpose of encouraging a person to expand or
898 locate a business in Utah, but only if disclosure would result in actual economic harm to the person
899 or place the governmental entity at a competitive disadvantage, but this section may not be used
900 to restrict access to a record evidencing a final contract;
901 (36) materials to which access must be limited for purposes of securing or maintaining the
902 governmental entity's proprietary protection of intellectual property rights including patents,
903 copyrights, and trade secrets;
904 (37) the name of a donor or a prospective donor to a governmental entity, including a
905 public institution of higher education, and other information concerning the donation that could
906 reasonably be expected to reveal the identity of the donor, provided that:
907 (a) the donor requests anonymity in writing;
908 (b) any terms, conditions, restrictions, or privileges relating to the donation may not be
909 classified protected by the governmental entity under this Subsection (37); and
910 (c) except for public institutions of higher education, the governmental unit to which the
911 donation is made is primarily engaged in educational, charitable, or artistic endeavors, and has no
912 regulatory or legislative authority over the donor, a member of his immediate family, or any entity
913 owned or controlled by the donor or his immediate family;
914 (38) accident reports, except as provided in Sections 41-6-40 , 41-12a-202 , and 73-18-13 ;
915 (39) a notification of workers' compensation insurance coverage described in Section
916 34A-2-205 ; [and]
917 (40) the following records of a public institution of education, which have been developed,
918 discovered, or received by or on behalf of faculty, staff, employees, or students of the institution:
919 unpublished lecture notes, unpublished research notes and data, unpublished manuscripts, creative
920 works in process, scholarly correspondence, and confidential information contained in research
921 proposals[. Nothing in]; but this Subsection (40) [shall] may not be construed to affect the
922 ownership of a record[.]; and
923 (41) records provided by any pawnbroker to a law enforcement agency in compliance with
924 Title 7, Chapter 24, Utah Pawnbroking Act.

925 Section 28. Section 76-6-408 is amended to read:
926 76-6-408. Receiving stolen property.
927 (1) A person commits theft if he receives, retains, or disposes of the property of another
928 knowing that it has been stolen, or believing that it probably has been stolen, or who conceals,
929 sells, withholds or aids in concealing, selling, or withholding the property from the owner,
930 knowing the property to be stolen, intending to deprive the owner of it.
931 (2) The knowledge or belief required for Subsection (1) is presumed in the case of an actor
932 who:
933 (a) is found in possession or control of other property stolen on a separate occasion;
934 (b) has received other stolen property within the year preceding the receiving offense
935 charged;
936 (c) being a dealer in property of the sort received, retained, or disposed, acquires it for a
937 consideration which he knows is far below its reasonable value[; or].
938 [(d) if the value given for the property exceeds $20, is a pawnbroker or person who has
939 or operates a business dealing in or collecting used or secondhand merchandise or personal
940 property, or an agent, employee, or representative of a pawnbroker or person who buys, receives,
941 or obtains property and fails to require the seller or person delivering the property to:]
942 [(i) certify, in writing, that he has the legal rights to sell the property;]
943 [(ii) provide a legible print, preferably the right thumb, at the bottom of the certificate next
944 to his signature; and]
945 [(iii) provide at least one other positive form of picture identification.]
946 [(3) Every pawnbroker or person who has or operates a business dealing in or collecting
947 used or secondhand merchandise or personal property, and every agent, employee, or
948 representative of a pawnbroker or person who fails to comply with the requirements of Subsection
949 (2)(d) shall be presumed to have bought, received, or obtained the property knowing it to have
950 been stolen or unlawfully obtained. This presumption may be rebutted by proof.]
951 [(4) When, in a prosecution under this section, it appears from the evidence that the
952 defendant was a pawnbroker or a person who has or operates a business dealing in or collecting
953 used or secondhand merchandise or personal property, or was an agent, employee, or representative
954 of a pawnbroker or person, that the defendant bought, received, concealed, or withheld the property
955 without obtaining the information required in Subsection (2)(d), then the burden shall be upon the

956 defendant to show that the property bought, received, or obtained was not stolen.]
957 [(5) Subsections (2)(d), (3), and (4) do not apply to scrap metal processors as defined in
958 Section 76-10-901 .]
959 [(6)] (3) As used in this section:
960 (a) "Receives" means acquiring possession, control, or title or lending on the security of
961 the property;
962 (b) "Dealer" means a person in the business of buying or selling goods.
963 Section 29. Effective date.
964 If approved by two-thirds of all the members elected to each house, this act takes effect
965 upon approval by the governor, or the day following the constitutional time limit of Utah
966 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
967 date of veto override.