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First Substitute S.B. 165

Senator Michael G. Waddoups proposes the following substitute bill:




Sponsor: Michael G. Waddoups

             5      This act modifies provisions related to pawnshops by enacting a chapter entitled the Utah
             6      Pawnbroking Act and amending related provisions of the Criminal Code. This act requires
             7      registration of pawnshops with the Department of Financial Institutions. This act regulates
             8      pawn transactions and imposes record keeping and reporting requirements on pawnbroker
             9      businesses. The act establishes penalties for a pawnbroker's failure to comply with the
             10      requirements of the chapter. This act establishes an electronic database of pawnshop
             11      transactions accessible by law enforcement officials over the Internet. This act prescribes
             12      a procedure for persons to recover property that has been misappropriated and that is in the
             13      possession of a pawnbroker. This act provides that pawnbroker records are protected
             14      records. This act takes effect on July 1, 2002.
             15      This act affects sections of Utah Code Annotated 1953 as follows:
             16      AMENDS:
             17          11-6-1, Utah Code Annotated 1953
             18          63-2-304, as last amended by Chapters 232 and 335, Laws of Utah 2000
             19          76-6-408, as last amended by Chapter 102, Laws of Utah 1993
             20          77-24-2, as last amended by Chapter 10, Laws of Utah 1992
             21          78-6-1, as last amended by Chapter 215, Laws of Utah 1997
             22      ENACTS:
             23          7-24-101, Utah Code Annotated 1953
             24          7-24-102, Utah Code Annotated 1953
             25          7-24-103, Utah Code Annotated 1953

             26          7-24-104, Utah Code Annotated 1953
             27          7-24-105, Utah Code Annotated 1953
             28          7-24-106, Utah Code Annotated 1953
             29          7-24-107, Utah Code Annotated 1953
             30          7-24-108, Utah Code Annotated 1953
             31          7-24-109, Utah Code Annotated 1953
             32          7-24-110, Utah Code Annotated 1953
             33          7-24-111, Utah Code Annotated 1953
             34          7-24-112, Utah Code Annotated 1953
             35          7-24-113, Utah Code Annotated 1953
             36          7-24-114, Utah Code Annotated 1953
             37          7-24-115, Utah Code Annotated 1953
             38          7-24-116, Utah Code Annotated 1953
             39          7-24-117, Utah Code Annotated 1953
             40          7-24-118, Utah Code Annotated 1953
             41          7-24-119, Utah Code Annotated 1953
             42          7-24-120, Utah Code Annotated 1953
             43          7-24-121, Utah Code Annotated 1953
             44          7-24-122, Utah Code Annotated 1953
             45          7-24-123, Utah Code Annotated 1953
             46          7-24-124, Utah Code Annotated 1953
             47          7-24-125, Utah Code Annotated 1953
             48      Be it enacted by the Legislature of the state of Utah:
             49          Section 1. Section 7-24-101 is enacted to read:

             51          7-24-101. Title.
             52          This chapter is known as the "Utah Pawnbroking Act."
             53          Section 2. Section 7-24-102 is enacted to read:
             54          7-24-102. Definitions.
             55          As used in this chapter:
             56          (1) "Amount financed" means the amount of money paid by a pawnbroker to a pledgor in

             57      a pawn transaction.
             58          (2) "Commissioner" means the commissioner of the Department of Financial Institutions.
             59          (3) "Credit" means the right to defer payment of debt or to incur debt and defer its
             60      payment. Credit includes the right to receive money for pledged property and to redeem or
             61      repurchase property by paying a greater sum.
             62          (4) "Database" or "pawn transaction database" means the computer database established
             63      and maintained pursuant to Section 7-24-111 .
             64          (5) "Department" means the Department of Financial Institutions created in Section
             65      7-1-201 .
             66          (6) "Finance charge" means the difference between the amount financed and the
             67      redemption price plus any other charges paid by the pledgor to the pawnbroker in connection with
             68      a pawn transaction.
             69          (7) "Identification" means a form of positive identification issued by a governmental entity
             70      containing a numerical identifier and a photograph of the person identified.
             71          (8) "Law enforcement officer" has the same definition as in Subsection 53-13-103 (1).
             72          (9) "Local law enforcement official" means the sheriff of the county in which a pawnshop
             73      is located or, if the pawnshop is located within a municipality, the police chief of that municipality,
             74      or the designee of the sheriff or police chief.
             75          (10) "Maturity date" means the latest date that a pledgor may redeem pledged property.
             76          (11) "Misappropriated" means stolen, embezzled, converted, obtained by theft, or
             77      otherwise appropriated without authority of the lawful owner.
             78          (12) "Net worth" means total assets minus total liabilities.
             79          (13) "Pawnbroker" means a person with an established place of business who:
             80          (a) advances money on the security of pledged property;
             81          (b) purchases property on the condition of selling the property back at a redemption price
             82      within a fixed period of time;
             83          (c) publicly displays a sign at the place of business denoting a "pawnbroker" or
             84      "pawnshop"; or
             85          (d) publicly displays a sign, symbol, or other advertisement indicating that credit is
             86      available to be extended on pledged property.
             87          (14) "Pawnshop" means the location or premises where a pawnbroker conducts business.

             88          (15) "Pawn ticket" means a document upon which information regarding a pawn
             89      transaction is entered when the pawn transaction is made.
             90          (16) (a) "Pawn transaction" means an extension of credit in which an individual delivers
             91      property to a pawnbroker for an advance of money or sells property to a pawnbroker and retains
             92      the right to redeem or repurchase the property for a redemption price within a fixed period of time.
             93          (b) The following are considered a single item and shall be included in the same
             94      transaction:
             95          (i) items usually sold as a set; and
             96          (ii) a pledged item together with items that are accessories to the pledged item.
             97          (c) A separate pawn transaction retains its separate character when it is renewed, unless
             98      the parties agree otherwise.
             99          (d) For purposes of all state and federal bankruptcy laws, a pledgor's interest in pledged
             100      property prior to the maturity date of the pawn transaction is considered to be a right of redemption
             101      only.
             102          (17) "Recognized vendor" means a vendor who has an established place of business and
             103      who when selling items to the pawnbroker furnishes a pawnbroker with an invoice specifying the
             104      vendor's name and address, the date of the sale, a description of the items sold, and the sale price.
             105          (18) "Person" has the same definition as in Section 7-1-103 .
             106          (19) "Pledged property" means tangible personal property deposited with, purchased by,
             107      or otherwise delivered into the possession of, a pawnbroker in connection with a pawn transaction.
             108          (20) "Pledgor" means an individual who delivers tangible personal property to a
             109      pawnbroker as security for an advance of money or who sells tangible personal property to a
             110      pawnbroker and who has the right to redeem or repurchase the property at a redemption price
             111      within a fixed period of time.
             112          (21) "Property" means tangible personal property.
             113          (22) "Purchased property" means used or secondhand tangible personal property purchased
             114      by a pawnbroker in connection with a purchase transaction.
             115          (23) "Purchase transaction" means a purchase of used or secondhand property by a
             116      pawnbroker, other than in connection with a pawn transaction.
             117          (24) "Redemption price" means a fixed price at which a pledgor may redeem or repurchase
             118      pledged property.

             119          (25) "Reportable data" means the information required to be recorded by pawnbrokers for
             120      pawn transactions under Subsections 7-24-108 (2), 7-24-108 (3)(a), 7-24-108 (3)(b), and
             121      7-24-108 (4), and the information required to be recorded by pawnbrokers for purchase transactions
             122      under Subsections 7-24-109 (1) through (4).
             123          (26) "Search" means accessing a database record.
             124          (27) "Securities Exchange Act" means the federal Securities Exchange Act of 1934, as
             125      amended, or its comparable successor statute.
             126          (28) "Tangible personal property" does not include:
             127          (a) choses in action;
             128          (b) securities;
             129          (c) printed evidences of indebtedness; and
             130          (d) instruments evidencing title, including certificates of title to separate items of property,
             131      including motor vehicles.
             132          (29) "User" means an authorized person from the department or an authorized law
             133      enforcement officer who accesses the database.
             134          Section 3. Section 7-24-103 is enacted to read:
             135          7-24-103. Registration required -- Application -- Annual report -- Change of
             136      ownership.
             137          (1) (a) A person may not engage in business as a pawnbroker without having registered
             138      with the department.
             139          (b) A separate registration is required for each pawnshop.
             140          (c) The department may issue more than one registration to a person.
             141          (2) (a) If a registered pawnbroker wishes to move the location of a pawnshop, the
             142      pawnbroker shall give 30 days' written notice to the department and the local law enforcement
             143      official.
             144          (b) The department shall amend the pawnshop registration to reflect the change of location.
             145          (3) A registration is effective until it expires or is relinquished, suspended, or revoked by
             146      the department under Section 7-24-106 .
             147          (4) Each registered pawnbroker shall file with the department annually, on or before a date
             148      established by department rule, a report for each registered pawnshop operated by the pawnbroker
             149      within the state. The report shall provide the following information for the preceding calendar

             150      year:
             151          (a) total number of pawn transactions;
             152          (b) total amount financed in pawn transactions;
             153          (c) total number of pawn transactions forfeited;
             154          (d) total number of pawn transactions redeemed;
             155          (e) total number of pawn transactions for which pledged property was surrendered to law
             156      enforcement agencies or parties claiming ownership; and
             157          (f) total number of employees, both full-time and part-time, as of the reporting date.
             158          (5) The department shall make and publish annually a consolidated analysis and
             159      recapitulation of all reports required under this section, but the individual reports are protected
             160      records under Section 63-2-304 .
             161          (6) (a) Annually on or before August 1, a registered pawnbroker shall pay to the
             162      department, for each pawnshop operated by the pawnbroker, a registration fee of $250 for the
             163      12-month period beginning on the preceding July 1 and ending on the following June 30.
             164          (b) If the registration fee is not timely paid under Subsection (6)(a), the department shall
             165      mail a notice of delinquency to the pawnbroker.
             166          (c) If the fee remains unpaid 30 days after written notice of delinquency has been mailed,
             167      the registration expires.
             168          (7) (a) The department may issue a temporary registration authorizing the operation of a
             169      pawnshop upon receipt of an application to transfer a registration from one person to another or
             170      upon receipt of an application for a registration involving principals and owners who are identical
             171      to those of an existing registered pawnshop.
             172          (b) The temporary registration is effective until the permanent registration is issued or
             173      denied by the department.
             174          (8) If the ownership of a pawnshop changes, directly or beneficially, the new owner shall,
             175      upon taking ownership, apply to the department for a new registration or a transfer of the existing
             176      registration, except if:
             177          (a) the current registered pawnbroker is a business entity; and
             178          (b) the persons holding greater than 50% of the equity ownership interest of the entity
             179      before the change in ownership continue to hold greater than 50% of the equity ownership interest
             180      after the change in ownership.

             181          Section 4. Section 7-24-104 is enacted to read:
             182          7-24-104. Eligibility for registration.
             183          (1) To be eligible for a pawnshop registration, an applicant shall:
             184          (a) be of good moral character;
             185          (b) demonstrate to the department that the pawnshop will be operated in compliance with
             186      this chapter and any other applicable state or federal laws, rules, and regulations;
             187          (c) have a net worth of at least $100,000 or file a bond with the commissioner in the
             188      amount of $100,000 that meets the requirements, other than amount, under Subsection
             189      7-24-105 (4);
             190          (d) (i) not have been convicted of a felony in this state or any other state; and
             191          (ii) not be acting as a beneficial owner for a person convicted of a felony;
             192          (e) (i) not have been convicted of a class A misdemeanor in this state or any other state
             193      within the previous ten years; and
             194          (ii) not be acting as a beneficial owner for a person who has been convicted of a class A
             195      misdemeanor within the previous ten years; and
             196          (f) own a computer system capable of transmitting reportable data in accordance with the
             197      requirements of Section 7-24-112 .
             198          (2) If the applicant does not file a bond with the department in the amount of $100,000
             199      under Subsection (1), the department may require verification that the applicant meets the net
             200      worth requirement under Subsection (1), including:
             201          (a) presentation of a current balance sheet prepared by an accounting firm or an individual
             202      holding a permit to practice public accounting in this state; and
             203          (b) a written statement that the accountant has audited the books and records of the
             204      applicant.
             205          (3) If an applicant for a pawnshop registration is a business entity, the eligibility
             206      requirements of this section apply to:
             207          (a) each operator and each legal or beneficial owner of the entity; and
             208          (b) each officer, director, and direct or beneficial owner of 10% or greater of the
             209      outstanding shares of the corporation's capital stock, if the entity is a corporation.
             210          Section 5. Section 7-24-105 is enacted to read:
             211          7-24-105. Application for registration -- Bond.

             212          (1) An application for a new pawnshop registration, the transfer of an existing pawnshop
             213      registration, or the approval of a change in the ownership of a registered pawnshop shall be made
             214      to the department in writing on a form prescribed by the department. The application shall be
             215      under oath, and shall state the full name and place of residence of the applicant, the place where
             216      the business is to be conducted, and other relevant information as required by the department, and
             217      if the applicant:
             218          (a) is a partnership, the application shall state the full name and address of each partner;
             219      or
             220          (b) is a corporation, the application shall state the full name and address of each director
             221      and officer.
             222          (2) If the applicant is a corporation, the application shall also state the full name and
             223      address of each shareholder, unless:
             224          (a) the applicant is owned directly or beneficially by a person who, as an issuer, has a class
             225      of securities registered pursuant to Section 12(g) of the Securities Exchange Act or who, pursuant
             226      to Section 15(d) of the Securities Exchange Act, is required as an issuer of securities to file
             227      information, documents, and reports with the Securities and Exchange Commission; and
             228          (b) the person referred to in Subsection (2)(a) files with the department the information,
             229      documents, and reports required by the Securities Exchange Act to be filed with the Securities
             230      Exchange Commission.
             231          (3) (a) The applicant shall file the application with the department with an application fee
             232      as provided under Subsection (3)(b).
             233          (b) (i) If the applicant does not possess a current pawnshop registration when the
             234      application is filed, the application shall be accompanied by an application fee of $1,000.
             235          (ii) If the application is for a second or additional registration for a currently registered
             236      applicant or involves substantially identical owners of a separate currently registered pawnshop,
             237      the application shall be accompanied by an application fee of $500.
             238          (4) (a) With the application, an applicant for a pawnshop registration shall file for each
             239      registration sought a bond in the amount of $5,000 with a surety company qualified to do business
             240      in Utah.
             241          (b) The bond shall run to the state for its use and to a person who may have a cause of
             242      action against the obligor of the bond under this chapter.

             243          (c) The bond shall require the obligor to comply with this chapter and to pay to the state
             244      and to a person bringing a cause of action against the obligor all amounts of money that may
             245      become due or owing to the state or to the person from the obligor under this chapter while the
             246      bond is in effect.
             247          (d) The aggregate liability of the surety is not required to exceed the amount stated in the
             248      bond.
             249          (5) (a) When the department has accepted an application as complete, the department shall
             250      investigate the accuracy of the information provided in the application as required by this chapter.
             251      An application must be accompanied by the required fees and bond to be complete.
             252          (b) If the department finds that the eligibility requirements for the registration are satisfied,
             253      the department shall approve the application and issue to the applicant a pawnshop registration.
             254          (c) If the department finds the registration requirements of this chapter are not met, the
             255      department shall notify the applicant in writing.
             256          (d) The department shall grant or deny each application for a registration within 60 days
             257      of when the department accepts the application as complete, unless the period is extended by
             258      written agreement between the applicant and the department.
             259          (e) (i) The applicant is entitled to an administrative hearing regarding the department's
             260      finding, under Section 7-1-105 .
             261          (ii) The hearing application shall be filed with the department within 30 days after receipt
             262      of notice of the finding.
             263          (iii) The applicant is entitled to a hearing within 60 days of filing the application for a
             264      hearing.
             265          Section 6. Section 7-24-106 is enacted to read:
             266          7-24-106. Suspension or revocation of registration -- Net worth requirement.
             267          (1) The department may, after notice and hearing, suspend or revoke a registration upon
             268      a finding that:
             269          (a) the pawnbroker, either intentionally, knowingly, recklessly, or negligently, has violated
             270      this chapter;
             271          (b) a fact or condition exists regarding the pawnbroking business or the pawnbroker which,
             272      if it had existed or had been known to exist when the original application for a registration was
             273      filed, would have been cause for the department to deny a registration under this chapter;

             274          (c) the pawnbroker has aided, abetted, or conspired with another to circumvent or violate
             275      the requirements of this chapter; or
             276          (d) the pawnbroker or a legal or beneficial owner of the pawnbroker has been convicted
             277      of a crime that the department finds violates this chapter or department rules.
             278          (2) (a) When the department suspends or revokes a pawnshop's registration, the
             279      pawnbroker may not make any new pawn transactions at the pawnshop.
             280          (b) Within five days of the suspension or revocation, the pawnbroker shall notify all
             281      pledgors with pledged property at the pawnshop of the suspension or revocation and of their right
             282      to redeem the pledged property.
             283          (c) The pawnbroker may not close the pawnshop any sooner than 30 days after the latest
             284      maturity date of the pledged property at the pawnshop.
             285          (3) The department may:
             286          (a) issue a registration subject to specified conditions;
             287          (b) place on probation a person whose registration has been suspended; or
             288          (c) reprimand in writing a registered pawnbroker for a violation of this chapter.
             289          (4) A registered pawnbroker may surrender a registration by delivering it to the department
             290      with written notice of its surrender. However, a surrender of a registration does not affect the civil
             291      or criminal liability of the pawnbroker for acts committed prior to the surrender.
             292          (5) (a) The suspension, revocation, or surrender of a registration does not affect the
             293      obligation of a preexisting lawful contract between the registered pawnbroker and a pledgor.
             294          (b) If a pawn transaction is made when the pawnbroker or the pawnshop is not registered,
             295      the pawn transaction is void and no finance charge may be assessed against the pledgor.
             296          (6) The department may reinstate a suspended registration or issue a new registration to
             297      a person whose registration has been revoked if no fact or condition exists at the time of
             298      reinstatement which would have justified the department in refusing originally to issue the
             299      registration.
             300          (7) For each pawnshop that a registered pawnbroker has a registration to operate, the
             301      pawnbroker shall maintain either:
             302          (a) a net worth of not less than $100,000; or
             303          (b) a bond on file in the amount of $100,000 for that pawnshop that meets the
             304      requirements, other than the amount of the bond, under Subsection 7-24-105 (4).

             305          Section 7. Section 7-24-107 is enacted to read:
             306          7-24-107. Cause for revocation or suspension.
             307          (1) A pawnbroker may not:
             308          (a) fail to make an entry of a material matter in the pawnbroker's records of a pawn or
             309      purchase transaction;
             310          (b) falsify, obliterate, destroy, or remove from the pawnshop any records, books, or
             311      accounts relating to the pawnbroker's pawn or purchase transactions;
             312          (c) accept pledged property with a serial number that has been intentionally defaced or
             313      altered;
             314          (d) accept pledged property or purchase property from a person under the age of 18 years;
             315          (e) make an agreement requiring the personal liability of a pledgor or the waiver of a
             316      provision of this chapter;
             317          (f) conduct business at the pawnbroker's place of business on a Sunday or before the hour
             318      of 7:30 a.m. or after the hour of 7 p.m. on any other day, except that during the month of
             319      December, the hour of 7 p.m. is extended to 10 p.m.;
             320          (g) sell or otherwise charge for insurance in connection with a pawn transaction; or
             321          (h) directly or indirectly, employ a device, scheme, or artifice to defraud, or engage in an
             322      act, practice, or course of business that operates or would operate as a fraud or deceit on a person.
             323          (2) Gross negligence or willful noncompliance by a pawnbroker regarding a written hold
             324      order is cause for the department to either suspend or revoke the pawnbroker's registration.
             325          (3) This section does not prohibit prosecution for a criminal violation.
             326          Section 8. Section 7-24-108 is enacted to read:
             327          7-24-108. Pawn ticket.
             328          (1) When a pawn transaction is made, the information required by this section and by
             329      department rules shall be entered on the pawn ticket. The information shall be typed, printed, or
             330      written in ink and in the English language.
             331          (2) (a) Regarding the pledged property, the pawn ticket shall include a complete and
             332      accurate description of the pledged property, including the following information, if applicable:
             333          (i) brand name;
             334          (ii) model number;
             335          (iii) serial number, if issued by the manufacturer and not intentionally defaced or altered;

             336          (iv) size;
             337          (v) color, but not applicable to diamonds;
             338          (vi) gold content, if indicated;
             339          (vii) precious stone description, including the number of stones; and
             340          (viii) any other unique identifying feature.
             341          (b) If multiple items of a similar nature are delivered together in one transaction and the
             342      items do not bear serial or model numbers and do not include precious metal or gemstones, such
             343      as musical or video recordings, books, or hand tools, the description of the items is adequate if it
             344      includes the quantity of items and a description of the type of items delivered.
             345          (3) Regarding the pledgor, the pawn ticket shall include:
             346          (a) the name, residence address, date of birth, and physical description of the pledgor;
             347          (b) the type of identification and the identification number accepted from the pledgor;
             348          (c) the pledgor's signature; and
             349          (d) a legible fingerprint of the pledgor's right thumb; or, if the right thumb cannot be
             350      fingerprinted, a legible fingerprint of the pledgor with a written notation identifying the finger
             351      printed.
             352          (4) Regarding the pawn transaction, the pawn ticket shall include:
             353          (a) the time and date of the pawn transaction;
             354          (b) the amount of moneys advanced, which shall be designated as the "amount financed"
             355      and described as "the amount of cash given directly to you" or a similar phrase;
             356          (c) the maturity date of the pawn transaction;
             357          (d) the total finance charge payable on the maturity date;
             358          (e) the total amount, which is the amount financed plus the finance charge, that must be
             359      paid to redeem the pledged property on the maturity date, which shall be designated as the "total
             360      of payments";
             361          (f) the annual percentage rate, computed in accordance with the regulations adopted by the
             362      Federal Reserve Board pursuant to the Federal Truth in Lending Act, 15 U.S.C. Sec. 1601 et seq.;
             363      and
             364          (g) any other information which the department requires for compliance with the Federal
             365      Truth in Lending Act, 15 U.S.C. Sec. 1601 et seq. or the regulations promulgated under that act.
             366          (5) The pawn ticket shall also include:

             367          (a) the name and address of the pawnshop;
             368          (b) the name of the pawnbroker or pawnshop employee who entered the information on
             369      the pawn ticket or an alphanumeric code identifying that pawnbroker or pawnshop employee;
             370          (c) a clearly legible statement that "Any personal property pledged to a pawnbroker within
             371      this state which is not redeemed within 15 days following the maturity date of the pawn transaction
             372      is automatically forfeited to the pawnbroker, and all right, title, and interest of the pledgor in the
             373      property vests immediately in the pawnbroker without further notice to the pledgor of the
             374      property.";
             375          (d) a clearly legible statement that "The pledgor is not obligated to redeem the pledged
             376      property.";
             377          (e) a clearly legible statement that "The pledgor of this item represents and warrants that
             378      it is not stolen, that it has no liens or encumbrances against it, and that the pledgor has the right to
             379      sell or pawn the item."; and
             380          (f) a blank line for the pledgor's signature.
             381          (6) When the pawn transaction is made, the pawnbroker shall deliver to the pledgor an
             382      exact copy of the pawn ticket.
             383          Section 9. Section 7-24-109 is enacted to read:
             384          7-24-109. Purchase of property.
             385          A pawnbroker may not enter into a purchase transaction with any person other than a
             386      manufacturer, wholesaler, recognized vendor, or another pawnbroker unless, when the purchase
             387      transaction is made, a written record is made that contains:
             388          (1) the name, residence address, date of birth, and physical description of the seller;
             389          (2) the time and date of the purchase transaction;
             390          (3) the type of identification accepted from the seller and the identification number;
             391          (4) a complete and accurate description of the purchased property, including the
             392      information required by Subsection 7-24-108 (2);
             393          (5) the name and address of the pawnshop;
             394          (6) the name of the pawnbroker or pawnshop employee who made the written record or
             395      an alphanumeric code identifying that pawnbroker or pawnshop employee;
             396          (7) the seller's signature;
             397          (8) a legible fingerprint of the seller's right thumb; or, if the right thumb cannot be

             398      fingerprinted, a legible fingerprint of the seller with a written notation identifying the finger
             399      printed; and
             400          (9) a signed statement from the seller representing and warranting that the purchased
             401      property is not stolen, that the property has no liens or encumbrances against it, and that the seller
             402      has the right to sell the purchased property.
             403          Section 10. Section 7-24-110 is enacted to read:
             404          7-24-110. Recordkeeping -- Holding period.
             405          (1) A pawnbroker shall maintain on the pawnshop premises a written paper record of all
             406      pawn and purchase transactions pursuant to Sections 7-24-108 and 7-24-109 .
             407          (2) A pawnbroker shall retain each pawn and purchase transaction record required under
             408      Subsection (1) for at least four years from the date of the transaction.
             409          (3) Except for vehicles and property purchased from a manufacturer, wholesaler, or
             410      recognized vendor, a pawnbroker shall maintain all purchased property on the pawnshop premises
             411      for at least 30 calendar days before the property may be offered for resale.
             412          Section 11. Section 7-24-111 is enacted to read:
             413          7-24-111. Pawn transaction database -- Functions -- Access -- Penalty for unlawful
             414      access.
             415          (1) The department shall contract in accordance with Title 63, Chapter 56, Utah
             416      Procurement Code, with a third-party agent to establish and maintain a pawn transaction database
             417      in compliance with this section. The contract:
             418          (a) may not obligate the department to pay the third party any amounts, but shall permit
             419      the third party to collect setup and access fees as provided in this section; and
             420          (b) shall require the third party to assume all responsibility for a malfunction of the
             421      database software.
             422          (2) The database shall provide law enforcement officials with useful information to
             423      facilitate the investigation of alleged property crimes and shall also protect the privacy of
             424      pawnbrokers and pawnshop customers with regard to pawn and purchase transactions.
             425          (3) The database shall contain the pawn and purchase transaction information provided
             426      by pawnbrokers under Section 7-24-112 and shall be updated at least daily on business days.
             427          (4) (a) The third-party agent may charge law enforcement agencies an initial setup fee of
             428      not more than $150 per individual law enforcement officer having access to the database, and not

             429      more than $15 per individual law enforcement officer per month for access to the database.
             430          (b) The contract made under Subsection (1) may not require that the department be
             431      assessed a fee for access to the database and may not require that pawnbrokers be assessed a fee
             432      for adding, editing, or maintaining database records.
             433          (5) (a) A law enforcement official may download in a single batch, not more frequently
             434      than every 24 hours, all pawn transaction information, except the name of the pledgor, transmitted
             435      to the database by any pawnshop located in the state.
             436          (b) The third-party agent is not liable for the manner in which a law enforcement official
             437      uses the information after it is downloaded.
             438          (6) The database shall meet all of the following requirements:
             439          (a) pawnbrokers shall be able to transmit reportable data for each pawn and purchase
             440      transaction to the database via the Internet;
             441          (b) the information in the database shall be accessible to the department and to law
             442      enforcement via the Internet;
             443          (c) the only authorized users of the database are the department and law enforcement
             444      officials;
             445          (d) a user shall be required to provide the user's identity to the database before performing
             446      a search;
             447          (e) to access the identity of a pledgor in a pawn transaction, a user other than the
             448      department shall be required to provide to the database with a case number of a criminal action for
             449      which the pledgor's identity is needed and to represent that the information is sought in connection
             450      with the investigation of a crime involving pledged property;
             451          (f) the database shall allow a law enforcement official to access database information from
             452      any other jurisdiction that also transmits information to the database; and
             453          (g) for each search, the database shall record and make available to all other users the
             454      identity of the person conducting the search, the pawn transaction accessed in the search and, if
             455      accessed, the identity of the pledgor.
             456          (7) A person who gains access to the database under false pretenses is guilty of a class A
             457      misdemeanor.
             458          Section 12. Section 7-24-112 is enacted to read:
             459          7-24-112. Electronic reporting to law enforcement officials.

             460          (1) As used in this section:
             461          (a) "Phase-in period" means a period of six months, beginning when the pawn transaction
             462      database under Section 7-24-111 is initially capable of receiving pawnshop transaction
             463      information.
             464          (b) "Test period" means a period commencing on the date a pawnbroker commences
             465      transmitting reportable data. The length of the test period is that period agreed upon by the local
             466      law enforcement official and the pawnbroker, but may not exceed 90 days.
             467          (2) (a) Within 90 days after the effective date of this chapter, a pawnbroker shall obtain
             468      a computer system capable of transmitting reportable data in accordance with the requirements of
             469      this section.
             470          (b) A pawnbroker's failure to comply with Subsection (2)(a) is grounds for the department
             471      to deny the pawnbroker a temporary or permanent registration or, if the pawnbroker has received
             472      a temporary or permanent registration, to suspend or revoke the registration.
             473          (3) (a) A pawnbroker shall:
             474          (i) make available all reportable data to local law enforcement officials by transmitting it
             475      via the Internet to the pawn transaction database; and
             476          (ii) transmit all reportable data for one business day to the database before the end of the
             477      following business day.
             478          (b) The reporting requirement under Subsection (3)(a) shall begin no later than the
             479      expiration of the phase-in period.
             480          (c) During the test period, a pawnbroker shall make available copies of each of the pawn
             481      or purchase transaction documents underlying the reportable data being transmitted to enable the
             482      local law enforcement official to verify that the reportable data is being accurately reported.
             483          (4) A pawnbroker is not responsible for a delay in transmission that results from a
             484      malfunction in the database.
             485          (5) If either a pawnbroker or the local law enforcement official discovers an error in the
             486      transmitted reportable data, the third-party agent shall be allowed a period of at least 30 days to
             487      correct that error, commencing upon the third-party agent's receipt of notice of the error from the
             488      local law enforcement official.
             489          (6) If a pawnbroker experiences a computer malfunction, the pawnbroker shall be allowed
             490      a period of at least 15 days within which to repair the malfunction. During this period of time the

             491      pawnbroker is not in violation of this section if the pawnbroker has notified the local law
             492      enforcement official of the malfunction and if the pawnbroker is making a bona fide effort to repair
             493      the malfunction.
             494          (7) During the periods under Subsections (5) and (6) the pawnbroker and the local law
             495      enforcement official shall arrange a mutually acceptable alternative method by which the
             496      pawnbroker provides the reportable data to the local law enforcement official.
             497          (8) This section does not require a pawnbroker to:
             498          (a) make available paper copies of the transaction documents underlying the reportable
             499      data except as provided in Subsection (3)(c) or as mutually agreed pursuant to Subsection (7); or
             500          (b) take an action to deliver the paper copies of the transaction documents other than
             501      making them available to the local law enforcement official at the pawnbroker's place of business.
             502          (9) The department may not regulate the electronic transmission of reportable data in a
             503      manner that is inconsistent with the requirements of this section.
             504          Section 13. Section 7-24-113 is enacted to read:
             505          7-24-113. Confidentiality of pawn and purchase transactions.
             506          (1) All records and information relating to pawn and purchase transactions delivered to
             507      a law enforcement officer or transmitted to the pawn transaction database pursuant to Section
             508      7-24-112 are protected records under Section 63-2-304 . The records and information may be used
             509      only by law enforcement officers and only for the following law enforcement purposes:
             510          (a) to investigate a crime specifically involving the item of property delivered to the
             511      pawnbroker in a pawn or purchase transaction;
             512          (b) to investigate a pawnbroker's possible specific violation of the record keeping or
             513      reporting requirements of this chapter, but only when the local law enforcement official, based on
             514      a review of the records and information received, has probable cause to believe that a violation has
             515      occurred; and
             516          (c) to respond to an inquiry from a person claiming ownership of a described item of
             517      property, by searching the database to determine if an item matching the description has been
             518      delivered to a pawnbroker by another person in a pawn or purchase transaction and if so, obtaining
             519      from the database:
             520          (i) a description of the item of property;
             521          (ii) the name and address of the pawnbroker who received the item; and

             522          (iii) the name and address of the conveying person.
             523          (2) The provisions of Subsection (1) do not apply to the department.
             524          Section 14. Section 7-24-114 is enacted to read:
             525          7-24-114. Pledged property not redeemed.
             526          (1) A pledgor has no obligation to redeem pledged property or to make a payment on a
             527      pawn transaction.
             528          (2) Pledged property not redeemed within 15 days following the maturity date of a pawn
             529      transaction is automatically forfeited to the pawnbroker, who then has all right, title, and interest
             530      of the pledgor in the forfeited property without further notice to the pledgor.
             531          Section 15. Section 7-24-115 is enacted to read:
             532          7-24-115. Required business practices -- Replacement of lost property -- Inspection
             533      of pawn records.
             534          (1) A pawnbroker shall:
             535          (a) maintain a record of each pawn and purchase transaction for at least two years;
             536          (b) exercise reasonable care to protect pledged property from loss or damage; and
             537          (c) return or replace under Subsection (2) pledged property to a pledgor upon payment of
             538      the full amount due the pawnbroker, unless the pledged property has been taken into custody by
             539      a local law enforcement authority or by court order.
             540          (2) (a) If pledged property is lost or damaged while in the possession of the pawnbroker,
             541      the pawnbroker may satisfy the pledgor's claim by replacing the lost or damaged property with like
             542      kinds of merchandise.
             543          (b) Proof of replacement in compliance with this Subsection (2) is a defense to any
             544      prosecution or civil action.
             545          (c) As used in this Subsection (2), "lost" means pledged property that has been destroyed
             546      or has disappeared due to an occurrence, other than the willful act or omission of the pawnbroker,
             547      that results in the pledged property being unavailable for return to the pledgor.
             548          (3) A pawnbroker shall allow the department and local law enforcement officials to inspect
             549      the pawnbroker's pawn or purchase records during the ordinary hours of business or at another time
             550      acceptable to both parties.
             551          (4) A local law enforcement official may not remove a pawn or purchase record from the
             552      pawnshop unless he gives the pawnbroker a receipt for that record. The pawnbroker shall retain

             553      the receipt on the pawnshop premises for at least two years.
             554          Section 16. Section 7-24-116 is enacted to read:
             555          7-24-116. Right to redeem -- Lost pawn ticket.
             556          (1) A person who provides identification and who presents a pawn ticket to the
             557      pawnbroker is presumed to be entitled to redeem the pledged property described on the ticket.
             558          (2) (a) If a pawn ticket is lost, destroyed, or stolen, the pledgor shall notify the pawnbroker
             559      in writing.
             560          (b) If the pledged property has not previously been redeemed, then the pawnbroker's
             561      receipt of this notice invalidates the pawn ticket.
             562          (3) (a) Before delivering the pledged property or issuing a new pawn ticket to the pledgor
             563      reporting the lost pawn ticket, the pawnbroker shall require the pledgor to provide a written and
             564      dated statement of the loss, destruction, or theft of the ticket.
             565          (b) The pawnbroker shall record on the written statement the type of identification and the
             566      identification number provided by the pledgor, and the number of the lost, destroyed, or stolen
             567      pawn ticket. The statement shall be signed by the pawnbroker or the pawnshop employee who
             568      accepts the statement from the pledgor.
             569          (4) A pawnbroker may charge a fee not to exceed $2 for handling the paperwork in
             570      connection with each lost, destroyed, or stolen pawn ticket.
             571          Section 17. Section 7-24-117 is enacted to read:
             572          7-24-117. Pawnbroker's lien.
             573          (1) A pawnbroker has a lien on pledged property as security for the amount financed and
             574      the finance charge for that property, but not for other amounts owed by the pledgor to the
             575      pawnbroker.
             576          (2) Except as otherwise provided in this chapter, the pawnbroker:
             577          (a) shall retain possession of the pledged property until the lien is satisfied; and
             578          (b) may only be compelled to relinquish possession of the pledged property after receipt
             579      of the amount financed plus the accrued finance charge.
             580          Section 18. Section 7-24-118 is enacted to read:
             581          7-24-118. Claims against property held by pawnbrokers.
             582          (1) As used in this section and Section 7-24-119 :
             583          (a) "Claimant" means a person who claims that his property was misappropriated and then

             584      delivered into the possession of a pawnbroker.
             585          (b) "Conveying customer" means a person who delivers property into the custody of a
             586      pawnbroker, either by pawn, sale, or trade, and this property is later claimed to be misappropriated.
             587          (c) "Court of competent jurisdiction" includes the small claims courts under Title 78,
             588      Chapter 6, Small Claims Courts, if the fair market value of the disputed property plus attorney fees
             589      but exclusive of court costs does not exceed $5,000.
             590          (d) "Disputed property" means pledged property claimed to be misappropriated.
             591          (e) "Prosecuting attorney" means the city prosecutor, county attorney, district attorney, or
             592      other government attorney responsible for prosecuting criminal violations in the jurisdiction where
             593      the pawnshop is located.
             594          (2) (a) Except as provided in Subsections (3) and (4), a pawnbroker has a right to possess
             595      disputed property until:
             596          (i) a defendant in a criminal proceeding:
             597          (A) is found guilty of misappropriating the disputed property; or
             598          (B) acknowledges in advance of a plea or as part of a plea bargain to having
             599      misappropriated the disputed property and agrees to make full restitution for the misappropriation,
             600      including restitution to the pawnbroker;
             601          (ii) a court in a civil or criminal proceeding determines that the pawnbroker is not the
             602      lawful owner of the disputed property;
             603          (iii) the pawnbroker is paid the amount financed and the finance charge for the disputed
             604      property by the lawful owner; or
             605          (iv) the pawnbroker voluntarily consents in writing to permanently relinquish possession
             606      of the disputed property.
             607          (b) If a pawnbroker's right to possession of pledged property is terminated under
             608      Subsection (2)(a), the property may be returned to the lawful owner pursuant to Section 77-24-2 .
             609          (3) Subject to Section 7-24-119 , a pawnbroker's right to possess disputed property is
             610      temporarily suspended when a law enforcement officer takes possession of the property:
             611          (a) to further a criminal investigation;
             612          (b) as evidence of a criminal violation; or
             613          (c) pursuant to a lawful warrant for its seizure.
             614          (4) When a law enforcement officer is in possession of disputed property and the purpose

             615      for that possession no longer exists, the officer shall send notice to the claimant of his right to
             616      request the return of the property under this Subsection (4). The law enforcement officer shall
             617      return the property to the claimant if:
             618          (a) before notice is sent to the claimant under this Subsection (4):
             619          (i) the claimant reports a misappropriation of the disputed property to a local law
             620      enforcement official;
             621          (ii) a case number is assigned to the claimant's report; and
             622          (iii) the prosecuting attorney consents to the release of the disputed property;
             623          (b) no later than 15 days after the claimant receives notice under this Subsection (4), the
             624      claimant signs a statement that identifies the case number assigned to the claimant's report and in
             625      which the claimant:
             626          (i) states that the claimant is the lawful owner of the disputed property;
             627          (ii) describes the serial number or identifying marks used by the claimant to positively
             628      identify the disputed property; and
             629          (iii) states that the claimant will cooperate with law enforcement officers in the
             630      investigation and prosecution concerning the disputed property;
             631          (c) no later than 30 days after notice to the claimant under this Subsection (4), the local
             632      law enforcement official delivers to the pawnbroker:
             633          (i) a copy of the statement described in Subsection (4)(b); and
             634          (ii) written notice that unless the pawnbroker submits an objection in writing, the disputed
             635      property will be returned to the claimant 15 days after the pawnbroker's receipt of the notice and
             636      the claimant's statement; and
             637          (d) within 15 days after the pawnbroker receives the statement and notice under Subsection
             638      (4)(c), the pawnbroker has not submitted a written objection to the local law enforcement official.
             639          (5) A claimant, a pawnbroker, or any other person who claims ownership rights in disputed
             640      property may establish ownership rights in the property by filing a civil action in a court of
             641      competent jurisdiction. In that action:
             642          (a) the claimant and the pawnbroker shall both be parties; and
             643          (b) the prevailing party shall be awarded its costs and reasonable attorney fees.
             644          (6) A pawnbroker has no recourse against a pledgor for payment on a pawn transaction
             645      except the pledged property itself, unless:

             646          (a) (i) the pawnbroker's right to possession of the property is terminated under Subsection
             647      (2); and
             648          (ii) if a civil action is filed to establish ownership rights in the pledged property, the
             649      pawnbroker joins the conveying customer as a party to the action; or
             650          (b) the property was returned to a claimant pursuant to Subsection (4).
             651          (7) (a) A conveying customer may be prosecuted for a criminal violation.
             652          (b) A claimant may be prosecuted for filing a false claim.
             653          (8) This section does not preclude an assignee of a claimant's rights in disputed property
             654      from contesting either the claimant's or the pawnbroker's ownership interest in or right to possess
             655      the disputed property.
             656          (9) When a pledgor makes a pawn transaction in this state:
             657          (a) the pledgor is considered to have agreed to be subject to the jurisdiction of the courts
             658      of this state in all civil actions and proceedings arising out of the pawn transaction filed by either
             659      a resident or nonresident plaintiff; and
             660          (b) if the pledgor is a nonresident, the pledgor is considered to have:
             661          (i) appointed the director of the department as the pledgor's lawful attorney and agent upon
             662      whom may be served all process in actions and proceedings arising out of the pawn transaction;
             663      and
             664          (ii) agreed that any process served upon the director of the department has the same legal
             665      force and validity as if personally served upon the pledgor in this state.
             666          (10) (a) If an item of property is the subject of a lease, rental, or finance transaction
             667      between the claimant and a lease, rental, or finance customer when the property is sold or pledged
             668      to the pawnbroker as part of a pawn transaction, the property is not considered misappropriated
             669      for purposes of this chapter unless it bears a conspicuous permanent label or marking identifying
             670      it as the claimant's property.
             671          (b) (i) Property subject to a lease, rental, or finance transaction which is not marked as
             672      provided in Subsection (10)(a) may be recovered by the claimant only upon payment to the
             673      pawnbroker of all moneys owing to or advanced by the pawnbroker in the pawn or purchase
             674      transaction and upon producing evidence identifying the property as having been the property of
             675      the claimant and having been leased, rented, or financed when the property was placed in the
             676      pawnbroker's possession.

             677          (ii) The pawnbroker does not have liability regarding the recovery of leased, rented, or
             678      financed property that is not marked as described under Subsection (10)(a).
             679          Section 19. Section 7-24-119 is enacted to read:
             680          7-24-119. Law enforcement hold on property -- Disposal of property received by law
             681      enforcement officer.
             682          (1) The definitions in Section 7-24-118 apply to this section.
             683          (2) (a) When a law enforcement officer acting under the authority of Subsection
             684      53-13-103 (3) has probable cause to believe that property in possession of a pawnbroker is
             685      misappropriated, the law enforcement officer may place a written hold order on the property.
             686          (b) The initial term of the written hold order may not exceed 30 days, except that the
             687      holding period may be extended for not more than two additional successive 30-day increments
             688      upon written notification to the pawnbroker prior to the expiration of the immediately preceding
             689      holding period. Any other extensions shall be only by court order.
             690          (c) If the holding period has expired and has not been extended under Subsection (2)(b),
             691      the hold order expires, and the pawnbroker shall notify the local law enforcement official that the
             692      hold order is no longer in effect.
             693          (d) If, on the 15th business day after written notice is delivered to the law enforcement
             694      officer stating that the hold order is no longer in effect, the officer has not provided to the
             695      pawnbroker an order extending the hold under Subsection (2)(b), the pledgor's interest in the
             696      property reverts to the pawnbroker, subject to any restrictions contained in the pawn transaction
             697      contract and subject to the provisions of this section.
             698          (3) A hold order required by this section shall contain:
             699          (a) the name of the pawnbroker;
             700          (b) the name, title, and identification number of the law enforcement officer placing the
             701      hold order;
             702          (c) the name and address of the agency the law enforcement officer represents and the case
             703      number assigned by the agency to the claim regarding the property;
             704          (d) a complete description of the property to be held, including model number, and serial
             705      number if applicable;
             706          (e) the name of the person who reported the property as misappropriated;
             707          (f) the mailing address of the pawnshop where the property is held; and

             708          (g) the expiration date of the holding period.
             709          (4) The pawnbroker or his designee shall sign and date a copy of the hold order as
             710      evidence of receipt of the hold order and acknowledgment of the beginning of the initial 30-day
             711      holding period.
             712          (5) A law enforcement officer who places the initial hold order may terminate the hold
             713      order prior at any time.
             714          (6) While a hold order is in effect, a pawnbroker shall retain possession of the property
             715      subject to the hold order unless the pawnbroker releases the pledged property into the custody of
             716      a law enforcement officer for any of the following reasons:
             717          (a) to further a criminal investigation;
             718          (b) as evidence of a criminal violation; or
             719          (c) pursuant to a lawful warrant for its seizure.
             720          (7) If a pawnbroker releases pledged property into the custody of a law enforcement
             721      officer, including pledged property not subject to a hold order, the pawnbroker's release of the
             722      property is not considered a waiver or release of the pawnbroker's property rights or interest in the
             723      property.
             724          (8) (a) If a law enforcement officer takes custody of pledged property, the law enforcement
             725      officer shall give the pawnbroker a receipt for the property.
             726          (b) While pledged property is in the custody of a law enforcement officer, the officer shall
             727      comply with the applicable provisions of Sections 77-23-208 and 77-24-1.5 regarding safekeeping
             728      of property.
             729          (c) A law enforcement officer shall return pledged property held in custody to the
             730      pawnbroker when the reason for the law enforcement officer's custody of the property no longer
             731      exists, unless:
             732          (i) the pawnbroker's right to possess the property is terminated pursuant to Subsection
             733      7-24-118 (2); or
             734          (ii) the property is returned to a claimant pursuant to Subsection 7-24-118 (4).
             735          (9) A prosecuting attorney with jurisdiction over a case involving pledged property shall,
             736      upon disposition of the case, direct that the property be returned to the pawnbroker, unless:
             737          (a) the pawnbroker's right to possess the property is terminated pursuant to Subsection
             738      7-24-118 (2); or

             739          (b) the property is returned to a claimant pursuant to Subsection 7-24-118 (4).
             740          Section 20. Section 7-24-120 is enacted to read:
             741          7-24-120. Examination of books, accounts, and records by the department.
             742          (1) The department may examine the books, accounts, and records of a pawnshop or a
             743      pawnbroker and may make investigations to determine compliance with this chapter. The scope
             744      and frequency of examinations shall be determined solely in the discretion of the department.
             745          (2) In accordance with Section 7-1-401 , the department may charge a fee for an
             746      examination conducted under Subsection (1).
             747          Section 21. Section 7-24-121 is enacted to read:
             748          7-24-121. Pawnbroking advisory board.
             749          (1) There is created a pawnbroking advisory board consisting of seven members to be
             750      appointed by the governor as follows:
             751          (a) one representative of the attorney general of the state;
             752          (b) one representative of the Utah Chiefs of Police Association;
             753          (c) one representative of the Utah Sheriff's Association;
             754          (d) one representative of the Statewide Association of Prosecutors;
             755          (e) three representatives of the pawnbroking industry who:
             756          (i) have had three or more years experience as a pawnbroker; and
             757          (ii) are selected from a list submitted to the governor by an association in this state
             758      representing the pawnbroking industry.
             759          (2) (a) The board shall meet at least quarterly.
             760          (b) Meetings of the board shall be held on the call of the chair.
             761          (3) The members of the advisory board shall elect the chair of the board each year from
             762      the membership of the board by a majority of the members present at the board's first meeting each
             763      year.
             764          (4) (a) Except as required by Subsection (4)(b), as terms of current board members expire,
             765      the governor shall appoint each new member or reappointed member to a four-year term.
             766          (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the time
             767      of appointment or reappointment, adjust the length of terms to ensure that the terms of board
             768      members are staggered so that approximately half of the board is appointed every two years.
             769          (5) When a vacancy occurs in the membership of the board for any reason, the replacement

             770      shall be appointed for the unexpired term.
             771          (6) All members shall serve until their successors are appointed and qualified.
             772          (7) (a) Members receive no compensation or benefits for their services, but may receive
             773      per diem and expenses incurred in the performance of the member's official duties at the rates
             774      established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             775          (b) Members may decline to receive per diem and expenses for their service.
             776          (8) A majority of the members of the board constitute a quorum.
             777          (9) The board has the duty to advise the governor and commissioner on issues relating to
             778      the pawnbroking industry and in the improvement of pawnbroking services to the people of the
             779      state.
             780          Section 22. Section 7-24-122 is enacted to read:
             781          7-24-122. Enforcement by the department -- Rulemaking.
             782          (1) The department may:
             783          (a) receive and act on pawnbroking complaints by:
             784          (i) taking action designed to obtain voluntary compliance with this chapter; and
             785          (ii) commencing administrative or judicial proceedings on its own initiative to enforce
             786      compliance with this chapter;
             787          (b) counsel persons and groups on their rights and duties under this chapter; and
             788          (c) employ hearing examiners, clerks, and other employees and agents as necessary to
             789      perform its duties under this chapter.
             790          (2) The department may make rules to:
             791          (a) administer or enforce the provisions of this chapter;
             792          (b) restrict or prohibit pawnbroking practices that are misleading, unfair, or abusive;
             793          (c) promote or assure fair and full disclosure of the terms and conditions of agreements
             794      and communications between pawnbrokers and customers; and
             795          (d) promote or assure uniform application of the chapter.
             796          Section 23. Section 7-24-123 is enacted to read:
             797          7-24-123. Criminal history records.
             798          The Criminal Investigations and Technical Services Division of the Department of Public
             799      Safety, established in Section 53-10-103 , shall on request release to the department any available
             800      criminal history records, conviction records, and warrant of arrest records on an individual

             801      applying for or holding a registration under this chapter.
             802          Section 24. Section 7-24-124 is enacted to read:
             803          7-24-124. Preemption of local ordinances -- Exceptions.
             804          (1) This chapter preempts all city, county, and other local ordinances governing
             805      pawnbrokers and pawnbroking transactions that are more restrictive than the provisions of this
             806      chapter or that are not consistent with this chapter.
             807          (2) Subsection (1) does not preclude a city, county, or other local governmental unit from:
             808          (a) enacting or enforcing local ordinances concerning public health, safety, or welfare if
             809      the ordinances are equally applicable to all businesses, including pawnbrokers or pawnshops;
             810          (b) requiring a pawnbroker or a pawnshop to obtain and maintain a business license; or
             811          (c) enacting zoning ordinances that restrict areas where pawnshops can be located.
             812          Section 25. Section 7-24-125 is enacted to read:
             813          7-24-125. Transition period for registering current pawnbrokers.
             814          (1) Pawnbrokers operating pawnshops in business on the effective date of this chapter may
             815      continue to operate through December 31, 2002.
             816          (2) Prior to December 31, 2002, the pawnbroker shall apply for a registration from the
             817      department and shall complete the registration process under this chapter.
             818          (3) On and after January 1, 2003, a pawnbroker under Subsection (1) may not operate a
             819      pawnshop unless it is registered under this chapter.
             820          Section 26. Section 11-6-1 is amended to read:
             821           11-6-1. Records to be kept -- Availability to peace officers.
             822          Pawnbrokers and dealers in secondhand goods shall keep records containing a description
             823      of all articles received by them, the amounts paid [therefor] for them or advanced [thereon] on
             824      them, a general description of the person from whom received, together with his name and address
             825      and the date of the transaction. [Such] These records shall at all reasonable times be accessible
             826      to any peace officer who demands an inspection [thereof], and any further information regarding
             827      [such] the transaction that he may require shall be [given] provided by pawnbrokers and
             828      secondhand dealers to the best of their ability. [In cities of the first and the second class at the close
             829      of each day's business pawnbrokers shall mail a copy of such records to the sheriff of the county
             830      in which they are located.] A pawnbroker's compliance with Sections 7-24-108 , 7-24-109 , and
             831      7-24-112 , and Subsection 7-24-115 (4) satisfies the requirements of this section.

             832          Section 27. Section 63-2-304 is amended to read:
             833           63-2-304. Protected records.
             834          The following records are protected if properly classified by a governmental entity:
             835          (1) trade secrets as defined in Section 13-24-2 if the person submitting the trade secret has
             836      provided the governmental entity with the information specified in Section 63-2-308 ;
             837          (2) commercial information or nonindividual financial information obtained from a person
             838      if:
             839          (a) disclosure of the information could reasonably be expected to result in unfair
             840      competitive injury to the person submitting the information or would impair the ability of the
             841      governmental entity to obtain necessary information in the future;
             842          (b) the person submitting the information has a greater interest in prohibiting access than
             843      the public in obtaining access; and
             844          (c) the person submitting the information has provided the governmental entity with the
             845      information specified in Section 63-2-308 ;
             846          (3) commercial or financial information acquired or prepared by a governmental entity to
             847      the extent that disclosure would lead to financial speculations in currencies, securities, or
             848      commodities that will interfere with a planned transaction by the governmental entity or cause
             849      substantial financial injury to the governmental entity or state economy;
             850          (4) records the disclosure of which could cause commercial injury to, or confer a
             851      competitive advantage upon a potential or actual competitor of, a commercial project entity as
             852      defined in Subsection 11-13-3 (3);
             853          (5) test questions and answers to be used in future license, certification, registration,
             854      employment, or academic examinations;
             855          (6) records the disclosure of which would impair governmental procurement proceedings
             856      or give an unfair advantage to any person proposing to enter into a contract or agreement with a
             857      governmental entity, except that this subsection does not restrict the right of a person to see bids
             858      submitted to or by a governmental entity after bidding has closed;
             859          (7) records that would identify real property or the appraisal or estimated value of real or
             860      personal property, including intellectual property, under consideration for public acquisition before
             861      any rights to the property are acquired unless:
             862          (a) public interest in obtaining access to the information outweighs the governmental

             863      entity's need to acquire the property on the best terms possible;
             864          (b) the information has already been disclosed to persons not employed by or under a duty
             865      of confidentiality to the entity;
             866          (c) in the case of records that would identify property, potential sellers of the described
             867      property have already learned of the governmental entity's plans to acquire the property; or
             868          (d) in the case of records that would identify the appraisal or estimated value of property,
             869      the potential sellers have already learned of the governmental entity's estimated value of the
             870      property;
             871          (8) records prepared in contemplation of sale, exchange, lease, rental, or other
             872      compensated transaction of real or personal property including intellectual property, which, if
             873      disclosed prior to completion of the transaction, would reveal the appraisal or estimated value of
             874      the subject property, unless:
             875          (a) the public interest in access outweighs the interests in restricting access, including the
             876      governmental entity's interest in maximizing the financial benefit of the transaction; or
             877          (b) when prepared by or on behalf of a governmental entity, appraisals or estimates of the
             878      value of the subject property have already been disclosed to persons not employed by or under a
             879      duty of confidentiality to the entity;
             880          (9) records created or maintained for civil, criminal, or administrative enforcement
             881      purposes or audit purposes, or for discipline, licensing, certification, or registration purposes, if
             882      release of the records:
             883          (a) reasonably could be expected to interfere with investigations undertaken for
             884      enforcement, discipline, licensing, certification, or registration purposes;
             885          (b) reasonably could be expected to interfere with audits, disciplinary, or enforcement
             886      proceedings;
             887          (c) would create a danger of depriving a person of a right to a fair trial or impartial hearing;
             888          (d) reasonably could be expected to disclose the identity of a source who is not generally
             889      known outside of government and, in the case of a record compiled in the course of an
             890      investigation, disclose information furnished by a source not generally known outside of
             891      government if disclosure would compromise the source; or
             892          (e) reasonably could be expected to disclose investigative or audit techniques, procedures,
             893      policies, or orders not generally known outside of government if disclosure would interfere with

             894      enforcement or audit efforts;
             895          (10) records the disclosure of which would jeopardize the life or safety of an individual;
             896          (11) records the disclosure of which would jeopardize the security of governmental
             897      property, governmental programs, or governmental recordkeeping systems from damage, theft, or
             898      other appropriation or use contrary to law or public policy;
             899          (12) records that, if disclosed, would jeopardize the security or safety of a correctional
             900      facility, or records relating to incarceration, treatment, probation, or parole, that would interfere
             901      with the control and supervision of an offender's incarceration, treatment, probation, or parole;
             902          (13) records that, if disclosed, would reveal recommendations made to the Board of
             903      Pardons and Parole by an employee of or contractor for the Department of Corrections, the Board
             904      of Pardons and Parole, or the Department of Human Services that are based on the employee's or
             905      contractor's supervision, diagnosis, or treatment of any person within the board's jurisdiction;
             906          (14) records and audit workpapers that identify audit, collection, and operational
             907      procedures and methods used by the State Tax Commission, if disclosure would interfere with
             908      audits or collections;
             909          (15) records of a governmental audit agency relating to an ongoing or planned audit until
             910      the final audit is released;
             911          (16) records prepared by or on behalf of a governmental entity solely in anticipation of
             912      litigation that are not available under the rules of discovery;
             913          (17) records disclosing an attorney's work product, including the mental impressions or
             914      legal theories of an attorney or other representative of a governmental entity concerning litigation;
             915          (18) records of communications between a governmental entity and an attorney
             916      representing, retained, or employed by the governmental entity if the communications would be
             917      privileged as provided in Section 78-24-8 ;
             918          (19) personal files of a legislator, including personal correspondence to or from a member
             919      of the Legislature, but not correspondence that gives notice of legislative action or policy;
             920          (20) (a) records in the custody or control of the Office of Legislative Research and General
             921      Counsel, that, if disclosed, would reveal a particular legislator's contemplated legislation or
             922      contemplated course of action before the legislator has elected to support the legislation or course
             923      of action, or made the legislation or course of action public; and
             924          (b) for purposes of this subsection, a "Request For Legislation" submitted to the Office of

             925      Legislative Research and General Counsel is a public document unless a legislator submits the
             926      "Request For Legislation" with a request that it be maintained as a protected record until such time
             927      as the legislator elects to make the legislation or course of action public;
             928          (21) research requests from legislators to the Office of Legislative Research and General
             929      Counsel or the Office of the Legislative Fiscal Analyst and research findings prepared in response
             930      to these requests;
             931          (22) drafts, unless otherwise classified as public;
             932          (23) records concerning a governmental entity's strategy about collective bargaining or
             933      pending litigation;
             934          (24) records of investigations of loss occurrences and analyses of loss occurrences that
             935      may be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the Uninsured
             936      Employers' Fund, or similar divisions in other governmental entities;
             937          (25) records, other than personnel evaluations, that contain a personal recommendation
             938      concerning an individual if disclosure would constitute a clearly unwarranted invasion of personal
             939      privacy, or disclosure is not in the public interest;
             940          (26) records that reveal the location of historic, prehistoric, paleontological, or biological
             941      resources that if known would jeopardize the security of those resources or of valuable historic,
             942      scientific, educational, or cultural information;
             943          (27) records of independent state agencies if the disclosure of the records would conflict
             944      with the fiduciary obligations of the agency;
             945          (28) records of a public institution of higher education regarding tenure evaluations,
             946      appointments, applications for admissions, retention decisions, and promotions, which could be
             947      properly discussed in a meeting closed in accordance with Title 52, Chapter 4, Open and Public
             948      Meetings, provided that records of the final decisions about tenure, appointments, retention,
             949      promotions, or those students admitted, may not be classified as protected under this section;
             950          (29) records of the governor's office, including budget recommendations, legislative
             951      proposals, and policy statements, that if disclosed would reveal the governor's contemplated
             952      policies or contemplated courses of action before the governor has implemented or rejected those
             953      policies or courses of action or made them public;
             954          (30) records of the Office of the Legislative Fiscal Analyst relating to budget analysis,
             955      revenue estimates, and fiscal notes of proposed legislation before issuance of the final

             956      recommendations in these areas;
             957          (31) records provided by the United States or by a government entity outside the state that
             958      are given to the governmental entity with a requirement that they be managed as protected records
             959      if the providing entity certifies that the record would not be subject to public disclosure if retained
             960      by it;
             961          (32) transcripts, minutes, or reports of the closed portion of a meeting of a public body
             962      except as provided in Section 52-4-7 ;
             963          (33) records that would reveal the contents of settlement negotiations but not including
             964      final settlements or empirical data to the extent that they are not otherwise exempt from disclosure;
             965          (34) memoranda prepared by staff and used in the decision-making process by an
             966      administrative law judge, a member of the Board of Pardons and Parole, or a member of any other
             967      body charged by law with performing a quasi-judicial function;
             968          (35) records that would reveal negotiations regarding assistance or incentives offered by
             969      or requested from a governmental entity for the purpose of encouraging a person to expand or
             970      locate a business in Utah, but only if disclosure would result in actual economic harm to the person
             971      or place the governmental entity at a competitive disadvantage, but this section may not be used
             972      to restrict access to a record evidencing a final contract;
             973          (36) materials to which access must be limited for purposes of securing or maintaining the
             974      governmental entity's proprietary protection of intellectual property rights including patents,
             975      copyrights, and trade secrets;
             976          (37) the name of a donor or a prospective donor to a governmental entity, including a
             977      public institution of higher education, and other information concerning the donation that could
             978      reasonably be expected to reveal the identity of the donor, provided that:
             979          (a) the donor requests anonymity in writing;
             980          (b) any terms, conditions, restrictions, or privileges relating to the donation may not be
             981      classified protected by the governmental entity under this Subsection (37); and
             982          (c) except for public institutions of higher education, the governmental unit to which the
             983      donation is made is primarily engaged in educational, charitable, or artistic endeavors, and has no
             984      regulatory or legislative authority over the donor, a member of his immediate family, or any entity
             985      owned or controlled by the donor or his immediate family;
             986          (38) accident reports, except as provided in Sections 41-6-40 , 41-12a-202 , and 73-18-13 ;

             987          (39) a notification of workers' compensation insurance coverage described in Section
             988      34A-2-205 ; [and]
             989          (40) the following records of a public institution of education, which have been developed,
             990      discovered, or received by or on behalf of faculty, staff, employees, or students of the institution:
             991      unpublished lecture notes, unpublished research notes and data, unpublished manuscripts, creative
             992      works in process, scholarly correspondence, and confidential information contained in research
             993      proposals[. Nothing in]; but this Subsection (40) [shall] may not be construed to affect the
             994      ownership of a record[.]; and
             995          (41) records provided by any pawnbroker to a law enforcement agency in compliance with
             996      Title 7, Chapter 24, Utah Pawnbroking Act.
             997          Section 28. Section 76-6-408 is amended to read:
             998           76-6-408. Receiving stolen property -- Duties of pawnbrokers.
             999          (1) A person commits theft if he receives, retains, or disposes of the property of another
             1000      knowing that it has been stolen, or believing that it probably has been stolen, or who conceals,
             1001      sells, withholds or aids in concealing, selling, or withholding the property from the owner,
             1002      knowing the property to be stolen, intending to deprive the owner of it.
             1003          (2) The knowledge or belief required for Subsection (1) is presumed in the case of an actor
             1004      who:
             1005          (a) is found in possession or control of other property stolen on a separate occasion;
             1006          (b) has received other stolen property within the year preceding the receiving offense
             1007      charged; or
             1008          (c) being a dealer in property of the sort received, retained, or disposed, acquires it for a
             1009      consideration which he knows is far below its reasonable value[; or].
             1010          [(d) if the value given for the property exceeds $20, is a pawnbroker or person who has
             1011      or operates a business dealing in or collecting used or secondhand merchandise or personal
             1012      property, or an agent, employee, or representative of a pawnbroker or person who buys, receives,
             1013      or obtains property and fails to require the seller or person delivering the property to:]
             1014          [(i) certify, in writing, that he has the legal rights to sell the property;]
             1015          [(ii) provide a legible print, preferably the right thumb, at the bottom of the certificate next
             1016      to his signature; and]
             1017          [(iii) provide at least one other positive form of picture identification.]

             1018          [(3) Every pawnbroker or person who has or operates a business dealing in or collecting
             1019      used or secondhand merchandise or personal property, and every agent, employee, or
             1020      representative of a pawnbroker or person who fails to comply with the requirements of Subsection
             1021      (2)(d) shall be presumed to have bought, received, or obtained the property knowing it to have
             1022      been stolen or unlawfully obtained. This presumption may be rebutted by proof.]
             1023          [(4) When, in a prosecution under this section, it appears from the evidence that the
             1024      defendant was a pawnbroker or a person who has or operates a business dealing in or collecting
             1025      used or secondhand merchandise or personal property, or was an agent, employee, or representative
             1026      of a pawnbroker or person, that the defendant bought, received, concealed, or withheld the property
             1027      without obtaining the information required in Subsection (2)(d), then the burden shall be upon the
             1028      defendant to show that the property bought, received, or obtained was not stolen.]
             1029          [(5) Subsections (2)(d), (3), and (4) do not apply to scrap metal processors as defined in
             1030      Section 76-10-901 .]
             1031          [(6)] (3) As used in this section:
             1032          (a) "Receives" means acquiring possession, control, or title or lending on the security of
             1033      the property[;].
             1034          (b) "Dealer" means a person in the business of buying or selling goods.
             1035          Section 29. Section 77-24-2 is amended to read:
             1036           77-24-2. Return of property not needed as evidence -- Procedure.
             1037          (1) (a) Custodial property which is not needed as evidence shall be returned to the owner
             1038      if he may lawfully possess it. When the peace officer or the agency by which he is employed
             1039      becomes aware that the property is not needed as evidence, the prosecuting attorney shall be so
             1040      advised, giving a description and details of ownership. When the prosecuting attorney, by [such]
             1041      notice or otherwise, becomes aware that the property is not needed as evidence, he shall give
             1042      written notice to the owner. Upon proof of ownership and of lawfulness of possession satisfactory
             1043      to the prosecuting attorney, the prosecuting attorney shall give the owner written authorization
             1044      which shall entitle the owner to receive the property from the person having custody of it.
             1045          (b) When custodial property is received in evidence, it shall be retained by the clerk of the
             1046      court last receiving it or shall be returned by him to the custody of the peace officer until all direct
             1047      appeals and retrials are final, at which time the property shall be returned in accordance with this
             1048      section. [In the event that]

             1049          (c) If the prosecuting attorney considers it necessary to retain control over the evidence,
             1050      in anticipation of possible collateral attacks upon the judgment or of use in some potential
             1051      prosecution, he may decline to authorize return.
             1052          (2) Subsection (1) does not apply to custodial property taken from a pawnbroker that is
             1053      subject to Section 7-24-118 or 7-24-119 , unless the pawnbroker's right to possess the property is
             1054      terminated pursuant to Subsection 7-24-118 (2).
             1055          Section 30. Section 78-6-1 is amended to read:
             1056           78-6-1. Small claims -- Defined -- Biannual review -- Counsel not necessary --
             1057      Deferring multiple claims of one plaintiff -- Supreme Court to govern procedures.
             1058          (1) A small claims action is a civil action:
             1059          (a) for the recovery of money where the amount claimed does not exceed $5,000 including
             1060      attorney fees but exclusive of court costs and interest and where the defendant resides or the action
             1061      of indebtedness was incurred within the jurisdiction of the court in which the action is to be
             1062      maintained; [or]
             1063          (b) involving interpleader under Rule 22 of the Utah Rules of Civil Procedure, in which
             1064      the amount claimed does not exceed $5,000 including attorney fees but exclusive of court costs
             1065      and interest[.]; or
             1066          (c) to establish ownership rights in pledged property subject to Section 7-24-118 , if the fair
             1067      market value of the property plus attorney fees but exclusive of court costs does not exceed $5,000.
             1068          (2) The judgment in a small claims action may not exceed $5,000 including attorney fees
             1069      but exclusive of court costs and interest.
             1070          (3) Counter claims may be maintained in small claims actions if the counter claim arises
             1071      out of the transaction or occurrence that is the subject matter of the plaintiff's claim. A counter
             1072      claim may not be raised for the first time in the trial de novo of the small claims action.
             1073          (4) The Judicial Council shall present to the Judiciary Interim Committee prior to the
             1074      general session of the Legislature during odd-numbered years a report and recommendations
             1075      concerning the maximum amount of small claims actions.
             1076          (5) Persons or corporations may litigate actions on behalf of themselves in person or
             1077      through authorized employees with or without counsel.
             1078          (6) If a person or corporation other than a municipality or a political subdivision of the
             1079      state files multiple small claims in any one court, the clerk or judge of the court may remove all

             1080      but the initial claim from the court's calendar in order to dispose of all other small claims matters.
             1081      Claims so removed shall be rescheduled as permitted by the court's calendar.
             1082          (7) Small claims matters shall be managed in accordance with simplified rules of
             1083      procedure and evidence promulgated by the Supreme Court.
             1084          Section 31. Effective date.
             1085          This act takes effect on July 1, 2002.

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