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S.B. 62 Enrolled
LONG TITLE
General Description:
This bill amends the Pawnshop Transaction Information Act by placing its operations
under the Division of Consumer Protection within the Department of Commerce. The
bill authorizes attorney fees against persons subject to enforcement action under the act.
This bill specifies lawful uses of pawn transaction information by law enforcement and
a penalty for unlawful use. This bill changes the criminal penalties for violation of the
act to civil penalties. This bill also repeals the repeal date of the act.
Highlighted Provisions:
This bill:
. places the operation and enforcement of the Pawnshop Transaction Information Act
under the Division of Consumer Protection;
. renames "civil penalties" as "administrative fines" to be consistent with the
division's statutory language;
. provides that the attorney general may bring enforcement actions and that attorney's
fees, costs, and interest are to be awarded in enforcement cases;
. directs that these awarded fees, costs, and interest shall be paid to the division;
. provides that pawn transaction records provided to law enforcement or the central
database may only be used for specified investigative and ownership inquiry
purposes;
. imposes a civil penalty for use of pawn transaction records for any purpose not
authorized by the act;
. changes specified violations of the act from class C misdemeanors to violations
subject to civil penalties;
. clarifies the protected record provisions regarding the act; and
. repeals the May 2, 2005 repeal date of the act.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
13-2-1, as last amended by Chapter 222, Laws of Utah 2002
13-32a-102, as enacted by Chapter 299, Laws of Utah 2004
13-32a-106, as enacted by Chapter 299, Laws of Utah 2004
13-32a-107, as enacted by Chapter 299, Laws of Utah 2004
13-32a-110, as enacted by Chapter 299, Laws of Utah 2004
13-32a-111, as enacted by Chapter 299, Laws of Utah 2004
13-32a-112, as enacted by Chapter 299, Laws of Utah 2004
13-32a-113, as enacted by Chapter 299, Laws of Utah 2004
13-32a-114, as enacted by Chapter 299, Laws of Utah 2004
63-2-304, as last amended by Chapters 223, 299 and 358, Laws of Utah 2004
ENACTS:
13-32a-102.5, Utah Code Annotated 1953
13-32a-106.5, Utah Code Annotated 1953
Uncodified Material Affected:
REPEALS:
Uncodified Section 18, Chapter 299, Laws of Utah 2004
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 13-2-1 is amended to read:
13-2-1. Consumer protection division established -- Functions.
(1) There is established within the Department of Commerce the Division of Consumer
Protection.
(2) The division shall administer and enforce the following:
(a) Chapter 5, Unfair Practices Act;
(b) Chapter 10a, Music Licensing Practices Act;
(c) Chapter 11, Utah Consumer Sales Practices Act;
(d) Chapter 15, Business Opportunity Disclosure Act;
(e) Chapter 20, New Motor Vehicles Warranties Act;
(f) Chapter 21, Credit Services Organizations Act;
(g) Chapter 22, Charitable Solicitations Act;
(h) Chapter 23, Health Spa Services Protection Act;
(i) Chapter 25a, Telephone and Facsimile Solicitation Act;
(j) Chapter 26, Telephone Fraud Prevention Act;
(k) Chapter 28, Prize Notices Regulation Act;
(l) Chapter 30, Utah Personal Introduction Services Protection Act; [
(m) Chapter 32a, Pawnshop Transaction Information Act; and
[
Section 2. Section 13-32a-102 is amended to read:
13-32a-102. Definitions.
As used in this chapter:
(1) "Account" means the Pawnbroker Operations Restricted Account created in Section
13-32a-113 .
(2) "Board" means the Pawnshop Advisory Board created by this chapter.
(3) "Central database" or "database" means the electronic database created and operated
under Section 13-32a-105 .
(4) "Division" means the Division of Consumer Protection in Title 13, Chapter 1,
Department of Commerce.
[
governmental entity that:
(a) contains a numerical identifier and a photograph of the person identified; and
(b) may include a state identification card, a state drivers license, a United States military
identification card, or a United States passport.
[
jurisdiction over the location where the pawnshop is located.
[
otherwise appropriated without authority of the lawful owner.
[
[
activities:
(a) loans money on one or more deposits of personal property;
(b) deals in the purchase, exchange, or possession of personal property on condition of
selling the same property back again to the pledgor or depositor;
(c) loans or advances money on personal property by taking chattel mortgage security on
the property and takes or receives the personal property into his possession, and who sells the
unredeemed pledges; or
(d) engages in a licensed business enterprise as a pawnshop.
[
transaction is entered when the pawn transaction is made.
[
delivers property to a pawnbroker for an advance of money or sells property to a pawnbroker and
retains the right to redeem or repurchase the property for the redemption price within a fixed
period of time.
[
conducts business.
[
[
maintained by the pawnbroker. The register is an electronic record that is in a format that is
compatible with the central database.
Section 3. Section 13-32a-102.5 is enacted to read:
13-32a-102.5. Administration and enforcement.
(1) The division shall administer and enforce this chapter in accordance with the
authority under Title 13, Chapter 2, Division of Consumer Protection.
(2) The attorney general, upon request, shall give legal advice to, and act as counsel for,
the division in the exercise of its responsibilities under this chapter.
(3) Reasonable attorney's fees, costs, and interest shall be awarded to the division in any
action brought to enforce the provisions of this chapter.
Section 4. Section 13-32a-106 is amended to read:
13-32a-106. Transaction information provided to the central database -- Protected
information.
(1) The information required to be recorded under Sections 13-32a-103 and 13-32a-104
that is capable of being transmitted electronically shall be transmitted electronically to the central
database on the next business day following the transaction.
(2) The pawnbroker shall maintain all pawn tickets generated by the pawnshop and shall
maintain the tickets in a manner so that the tickets are available to local law enforcement
agencies as required by this chapter and as requested by any law enforcement agency as part of an
investigation or reasonable random inspection conducted pursuant to this chapter.
(3) (a) If a pawnshop experiences a computer or electronic malfunction that affects its
ability to report transactions as required in Subsection (1), the pawnshop shall immediately notify
the local law enforcement agency of the malfunction.
(b) The pawnshop shall solve the malfunction within three business days or notify law
enforcement under Subsection (4).
(4) If the computer or electronic malfunction under Subsection (3) cannot be solved
within three business days, the pawnshop shall notify the local law enforcement agency of the
reasons for the delay and provide documentation from a reputable computer maintenance
company of the reasons why the computer or electronic malfunction cannot be solved within
three business days.
(5) A computer or electronic malfunction does not suspend the pawnshop's obligation to
comply with all other provisions of this chapter.
(6) During the malfunction under Subsections (3) and (4), the pawnshop shall:
(a) maintain the pawn tickets and other information required under this chapter in a
written form; and
(b) arrange with the local law enforcement agency a mutually acceptable alternative
method by which the pawnshop provides the required information to the local law enforcement
official.
(7) [
this section is subject to [
(a) the pawnshop is unable to submit the information electronically due to a computer or
electronic malfunction;
(b) the three business day period under Subsection (3) has expired; and
(c) the pawnshop has not provided documentation regarding its inability to solve the
malfunction as required under Subsection (4).
[
[
results from a malfunction in the central database.
Section 5. Section 13-32a-106.5 is enacted to read:
13-32a-106.5. Confidentiality of pawn and purchase transactions.
(1) All pawn and purchase transaction records delivered to a local law enforcement
official or transmitted to the central database pursuant to Section 13-32a-106 are protected
records under Section 63-2-304 . These records may be used only by law enforcement officials
and the division and only for the law enforcement and administrative enforcement purposes of:
(a) investigating possible criminal conduct involving the property delivered to the
pawnbroker in a pawn or purchase transaction;
(b) investigating a pawnbroker's possible violation of the record keeping or reporting
requirements of this chapter when the local law enforcement official, based on a review of the
records and information received, has reason to believe that a violation has occurred;
(c) responding to an inquiry from a person claiming ownership of described property by
searching the database to determine if property matching the description has been delivered to a
pawnbroker by another person in a pawn or purchase transaction and if so, obtaining from the
database:
(i) a description of the property;
(ii) the name and address of the pawnbroker who received the property; and
(iii) the name, address, and date of birth of the conveying person; and
(d) take enforcement action under Section 13-2-5 against a pawnbroker.
(2) (a) A person may not knowingly and intentionally use, release, publish, or otherwise
make available to any person or entity any information obtained from the database for any
purpose other than those specified in Subsection (1).
(b) Each separate violation of this Subsection (2) is subject to a civil penalty not to
exceed $250.
Section 6. Section 13-32a-107 is amended to read:
13-32a-107. Deadline for registers to be electronic -- Notice for updating.
(1) On and after January 1, 2005, each pawnbroker in the state that generates ten or more
pawn transactions per month shall maintain the register in an electronic format that is compatible
with the central database computer system.
(2) (a) On and after January 15, 2005, pawnbrokers under Subsection (1) [
for each daily report required under Section 13-32a-106 that is submitted as a written report
rather than electronically.
(b) Fines imposed under this section shall be paid to the division, which shall deposit the
fines in the account.
(3) The operators of the central database shall establish written procedures in conjunction
with the Pawnshop Advisory Board to ensure that when the central database is upgraded, the
affected pawnbrokers will receive adequate notice, information, and time to upgrade their
computer systems so the systems are compatible with the upgraded central database.
Section 7. Section 13-32a-110 is amended to read:
13-32a-110. Penalties.
(1) A violation of any of the following sections [
a civil penalty of not more than $500:
[
[
[
[
[
(2) This section does not prohibit civil action by a governmental entity regarding the
pawnbroker's business operation or licenses.
Section 8. Section 13-32a-111 is amended to read:
13-32a-111. Fees to fund training and central database.
(1) On and after January 1, 2005, each pawnshop in operation shall annually pay $250 to
the [
(2) On and after January 1, 2005, each law enforcement agency that participates in the
use of the database shall annually pay to the [
sworn law enforcement officer who is employed by the agency as of January 1 of that year. The
fee shall be deposited in the account.
(3) The fees under Subsections (1) and (2) shall be paid to the account annually on or
before January 30.
Section 9. Section 13-32a-112 is amended to read:
13-32a-112. Pawnshop Advisory Board -- Membership -- Duties -- Provide training
-- Records of compliance.
(1) There is created within the [
Advisory Board. The board consists of ten voting members and one nonvoting member:
(a) one representative of the Utah Chiefs of Police Association;
(b) one representative of the Utah Sheriffs Association;
(c) one representative of the Statewide Association of Prosecutors;
(d) five representatives from the pawnshop industry who are appointed by the director of
the Utah Commission on Criminal and Juvenile Justice (CCJJ) and who represent five separate
pawnshops, each owned by a separate person or entity;
(e) one law enforcement officer who is appointed by the board members under
Subsections (1)(a) through (d);
(f) one law enforcement officer whose work regularly involves pawnshops and who is
appointed by the board members under Subsections (1)(a) through (d); and
(g) one representative from the central database, who is nonvoting.
(2) (a) The board shall elect one voting member as the chair of the board by a majority of
the members present at the board's first meeting each year.
(b) The chair shall preside over the board for a period of one year.
(c) The advisory board shall meet quarterly upon the call of the chair.
(3) (a) The board shall conduct quarterly training sessions regarding compliance with this
chapter and other applicable state laws for any person defined as a pawnbroker in this chapter.
(b) Each training session shall provide not fewer than two hours of training.
(4) (a) Each pawnbroker in operation as of January 1 shall ensure one or more persons
employed by the pawnshop each participate in no fewer than four hours of compliance training
within that year.
(b) This requirement does not limit the number of employees, directors, or officers of a
pawnshop who attend the compliance training.
(5) The board shall monitor and keep a record of the hours of compliance training
accrued by each pawnshop.
(6) The board shall provide each pawnshop with a certificate of compliance upon
completion by an employee of the four hours of compliance training.
(7) (a) Each law enforcement agency that has a pawnshop located within its jurisdiction
shall ensure that at least one of its officers completes four hours of compliance training yearly.
(b) This requirement does not limit the number of law enforcement officers who attend
the compliance training.
Section 10. Section 13-32a-113 is amended to read:
13-32a-113. Pawnbroker Operations Restricted Account.
(1) There is created within the General Fund a restricted account known as the
Pawnbroker Operations Restricted Account.
(2) (a) The account shall be funded from the fees and [
fines imposed and collected under Sections 13-32a-106 , 13-32a-107 , 13-32a-110 , and
13-32a-111 . These fees and [
(b) The Legislature may appropriate the funds in this account:
(i) to the board for the costs of providing training required under this chapter, costs of the
central database created in Section 13-32a-105 , and for costs of operation of the board; and
(ii) to the [
under this chapter.
(c) The board shall account to the [
(d) The board shall account separately for expenditures for:
(i) training required under this chapter;
(ii) operation of the database;
(iii) operation of the board; and
(iv) costs of operation of the board.
Section 11. Section 13-32a-114 is amended to read:
13-32a-114. Preemption of local ordinances -- Exceptions.
(1) This chapter preempts all city, county, and other local ordinances governing
pawnshops, pawnbrokers, and pawnbroking transactions, if the ordinances are more restrictive
than the provisions of this chapter or are not consistent with this chapter.
(2) Subsection (1) does not preclude a city, county, or other local governmental unit
from:
(a) enacting or enforcing local ordinances concerning public health, safety, or welfare, if
the ordinances are uniform and equal in application to pawnshops and pawnbrokers and other
[
(b) requiring a pawnshop or pawnbroker to obtain and maintain a business license; and
(c) enacting zoning ordinances that restrict areas where pawnshops and other [
retail businesses or activities can be located.
Section 12. Section 63-2-304 is amended to read:
63-2-304. Protected records.
The following records are protected if properly classified by a governmental entity:
(1) trade secrets as defined in Section 13-24-2 if the person submitting the trade secret
has provided the governmental entity with the information specified in Section 63-2-308 ;
(2) commercial information or nonindividual financial information obtained from a
person if:
(a) disclosure of the information could reasonably be expected to result in unfair
competitive injury to the person submitting the information or would impair the ability of the
governmental entity to obtain necessary information in the future;
(b) the person submitting the information has a greater interest in prohibiting access than
the public in obtaining access; and
(c) the person submitting the information has provided the governmental entity with the
information specified in Section 63-2-308 ;
(3) commercial or financial information acquired or prepared by a governmental entity to
the extent that disclosure would lead to financial speculations in currencies, securities, or
commodities that will interfere with a planned transaction by the governmental entity or cause
substantial financial injury to the governmental entity or state economy;
(4) records the disclosure of which could cause commercial injury to, or confer a
competitive advantage upon a potential or actual competitor of, a commercial project entity as
defined in Subsection 11-13-103 (4);
(5) test questions and answers to be used in future license, certification, registration,
employment, or academic examinations;
(6) records the disclosure of which would impair governmental procurement proceedings
or give an unfair advantage to any person proposing to enter into a contract or agreement with a
governmental entity, except that this Subsection (6) does not restrict the right of a person to see
bids submitted to or by a governmental entity after bidding has closed;
(7) records that would identify real property or the appraisal or estimated value of real or
personal property, including intellectual property, under consideration for public acquisition
before any rights to the property are acquired unless:
(a) public interest in obtaining access to the information outweighs the governmental
entity's need to acquire the property on the best terms possible;
(b) the information has already been disclosed to persons not employed by or under a
duty of confidentiality to the entity;
(c) in the case of records that would identify property, potential sellers of the described
property have already learned of the governmental entity's plans to acquire the property;
(d) in the case of records that would identify the appraisal or estimated value of property,
the potential sellers have already learned of the governmental entity's estimated value of the
property; or
(e) the property under consideration for public acquisition is a single family residence
and the governmental entity seeking to acquire the property has initiated negotiations to acquire
the property as required under Section 78-34-4.5 ;
(8) records prepared in contemplation of sale, exchange, lease, rental, or other
compensated transaction of real or personal property including intellectual property, which, if
disclosed prior to completion of the transaction, would reveal the appraisal or estimated value of
the subject property, unless:
(a) the public interest in access outweighs the interests in restricting access, including the
governmental entity's interest in maximizing the financial benefit of the transaction; or
(b) when prepared by or on behalf of a governmental entity, appraisals or estimates of the
value of the subject property have already been disclosed to persons not employed by or under a
duty of confidentiality to the entity;
(9) records created or maintained for civil, criminal, or administrative enforcement
purposes or audit purposes, or for discipline, licensing, certification, or registration purposes, if
release of the records:
(a) reasonably could be expected to interfere with investigations undertaken for
enforcement, discipline, licensing, certification, or registration purposes;
(b) reasonably could be expected to interfere with audits, disciplinary, or enforcement
proceedings;
(c) would create a danger of depriving a person of a right to a fair trial or impartial
hearing;
(d) reasonably could be expected to disclose the identity of a source who is not generally
known outside of government and, in the case of a record compiled in the course of an
investigation, disclose information furnished by a source not generally known outside of
government if disclosure would compromise the source; or
(e) reasonably could be expected to disclose investigative or audit techniques,
procedures, policies, or orders not generally known outside of government if disclosure would
interfere with enforcement or audit efforts;
(10) records the disclosure of which would jeopardize the life or safety of an individual;
(11) records the disclosure of which would jeopardize the security of governmental
property, governmental programs, or governmental recordkeeping systems from damage, theft, or
other appropriation or use contrary to law or public policy;
(12) records that, if disclosed, would jeopardize the security or safety of a correctional
facility, or records relating to incarceration, treatment, probation, or parole, that would interfere
with the control and supervision of an offender's incarceration, treatment, probation, or parole;
(13) records that, if disclosed, would reveal recommendations made to the Board of
Pardons and Parole by an employee of or contractor for the Department of Corrections, the Board
of Pardons and Parole, or the Department of Human Services that are based on the employee's or
contractor's supervision, diagnosis, or treatment of any person within the board's jurisdiction;
(14) records and audit workpapers that identify audit, collection, and operational
procedures and methods used by the State Tax Commission, if disclosure would interfere with
audits or collections;
(15) records of a governmental audit agency relating to an ongoing or planned audit until
the final audit is released;
(16) records prepared by or on behalf of a governmental entity solely in anticipation of
litigation that are not available under the rules of discovery;
(17) records disclosing an attorney's work product, including the mental impressions or
legal theories of an attorney or other representative of a governmental entity concerning
litigation;
(18) records of communications between a governmental entity and an attorney
representing, retained, or employed by the governmental entity if the communications would be
privileged as provided in Section 78-24-8 ;
(19) personal files of a legislator, including personal correspondence to or from a
member of the Legislature, provided that correspondence that gives notice of legislative action or
policy may not be classified as protected under this section;
(20) (a) records in the custody or control of the Office of Legislative Research and
General Counsel, that, if disclosed, would reveal a particular legislator's contemplated legislation
or contemplated course of action before the legislator has elected to support the legislation or
course of action, or made the legislation or course of action public; and
(b) notwithstanding Subsection (20)(a), the form to request legislation submitted to the
Office of Legislative Research and General Counsel is a public document unless a legislator asks
that the records requesting the legislation be maintained as protected records until such time as
the legislator elects to make the legislation or course of action public;
(21) research requests from legislators to the Office of Legislative Research and General
Counsel or the Office of the Legislative Fiscal Analyst and research findings prepared in
response to these requests;
(22) drafts, unless otherwise classified as public;
(23) records concerning a governmental entity's strategy about collective bargaining or
pending litigation;
(24) records of investigations of loss occurrences and analyses of loss occurrences that
may be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the Uninsured
Employers' Fund, or similar divisions in other governmental entities;
(25) records, other than personnel evaluations, that contain a personal recommendation
concerning an individual if disclosure would constitute a clearly unwarranted invasion of
personal privacy, or disclosure is not in the public interest;
(26) records that reveal the location of historic, prehistoric, paleontological, or biological
resources that if known would jeopardize the security of those resources or of valuable historic,
scientific, educational, or cultural information;
(27) records of independent state agencies if the disclosure of the records would conflict
with the fiduciary obligations of the agency;
(28) records of a public institution of higher education regarding tenure evaluations,
appointments, applications for admissions, retention decisions, and promotions, which could be
properly discussed in a meeting closed in accordance with Title 52, Chapter 4, Open and Public
Meetings, provided that records of the final decisions about tenure, appointments, retention,
promotions, or those students admitted, may not be classified as protected under this section;
(29) records of the governor's office, including budget recommendations, legislative
proposals, and policy statements, that if disclosed would reveal the governor's contemplated
policies or contemplated courses of action before the governor has implemented or rejected those
policies or courses of action or made them public;
(30) records of the Office of the Legislative Fiscal Analyst relating to budget analysis,
revenue estimates, and fiscal notes of proposed legislation before issuance of the final
recommendations in these areas;
(31) records provided by the United States or by a government entity outside the state
that are given to the governmental entity with a requirement that they be managed as protected
records if the providing entity certifies that the record would not be subject to public disclosure if
retained by it;
(32) transcripts, minutes, or reports of the closed portion of a meeting of a public body
except as provided in Section 52-4-7 ;
(33) records that would reveal the contents of settlement negotiations but not including
final settlements or empirical data to the extent that they are not otherwise exempt from
disclosure;
(34) memoranda prepared by staff and used in the decision-making process by an
administrative law judge, a member of the Board of Pardons and Parole, or a member of any
other body charged by law with performing a quasi-judicial function;
(35) records that would reveal negotiations regarding assistance or incentives offered by
or requested from a governmental entity for the purpose of encouraging a person to expand or
locate a business in Utah, but only if disclosure would result in actual economic harm to the
person or place the governmental entity at a competitive disadvantage, but this section may not
be used to restrict access to a record evidencing a final contract;
(36) materials to which access must be limited for purposes of securing or maintaining
the governmental entity's proprietary protection of intellectual property rights including patents,
copyrights, and trade secrets;
(37) the name of a donor or a prospective donor to a governmental entity, including a
public institution of higher education, and other information concerning the donation that could
reasonably be expected to reveal the identity of the donor, provided that:
(a) the donor requests anonymity in writing;
(b) any terms, conditions, restrictions, or privileges relating to the donation may not be
classified protected by the governmental entity under this Subsection (37); and
(c) except for public institutions of higher education, the governmental unit to which the
donation is made is primarily engaged in educational, charitable, or artistic endeavors, and has no
regulatory or legislative authority over the donor, a member of his immediate family, or any
entity owned or controlled by the donor or his immediate family;
(38) accident reports, except as provided in Sections 41-6-40 , 41-12a-202 , and 73-18-13 ;
(39) a notification of workers' compensation insurance coverage described in Section
34A-2-205 ;
(40) (a) the following records of a public institution of education, which have been
developed, discovered, or received by or on behalf of faculty, staff, employees, or students of the
institution:
(i) unpublished lecture notes;
(ii) unpublished research notes and data;
(iii) unpublished manuscripts;
(iv) creative works in process;
(v) scholarly correspondence; and
(vi) confidential information contained in research proposals; and
(b) Subsection (40)(a) may not be construed to affect the ownership of a record;
(41) (a) records in the custody or control of the Office of Legislative Auditor General
that would reveal the name of a particular legislator who requests a legislative audit prior to the
date that audit is completed and made public; and
(b) notwithstanding Subsection (41)(a), a request for a legislative audit submitted to the
Office of the Legislative Auditor General is a public document unless the legislator asks that the
records in the custody or control of the Office of Legislative Auditor General that would reveal
the name of a particular legislator who requests a legislative audit be maintained as protected
records until the audit is completed and made public;
(42) records that provide detail as to the location of an explosive, including a map or
other document that indicates the location of:
(a) a production facility; or
(b) a magazine;
(43) information contained in the database described in Section 62A-3-311.1 ;
(44) information contained in the Management Information System and Licensing
Information System described in Title 62A, Chapter 4a, Child and Family Services;
(45) information regarding National Guard operations or activities in support of the
National Guard's federal mission;
(46) records provided by any pawnbroker or pawnshop to a law enforcement agency or to
the central database in compliance with Title 13, Chapter 32a, Pawnshop Transaction
Information Act; and
(47) information regarding food security, risk, and vulnerability assessments performed
by the Department of Agriculture and Food.
Section 13. Repealer.
This bill repeals:
Uncodified Section 18, Chapter 299, Laws of Utah 2004, Repeal Date. This
uncodified section affects: Sections 13-32a-101 through 13-32a-114 .
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