Third Substitute H.B. 133

Representative Rebecca D. Lockhart proposes the following substitute bill:

1 COMMERCIAL TRANSACTIONS OF PERSONAL
2 PROPERTY
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Rebecca D. Lockhart
6 Senate Sponsor: Curtis S. Bramble
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Pawnshop Transaction Information Act.
11 Highlighted Provisions:
12 This bill:
13 . modifies procedures for holding items sold to a pawnshop rather than pawned to the
14 pawnshop;
15 . allows the pawnbroker to establish with the pledgor the period for holding a pawned
16 item;
17 . requires a law enforcement agency outside the database reporting jurisdiction to
18 advise the local law enforcement agency of any property seized from a pawnshop;
19 . establishes an annual fee of $750 to provide out-of-state law enforcement agencies
20 access to the database; and
21 . requires that the Legislature appropriate funds for the database costs for training,
22 operation, the board, and related division expenses, to cover costs not addressed by
23 current user fees.
24 Monies Appropriated in this Bill:

25 None
26 Other Special Clauses:
27 None
28 Utah Code Sections Affected:
29 AMENDS:
30 13-32a-102, as last amended by Chapter 256, Laws of Utah 2005
31 13-32a-103, as enacted by Chapter 299, Laws of Utah 2004
32 13-32a-109, as enacted by Chapter 299, Laws of Utah 2004
33 13-32a-111, as last amended by Chapter 256, Laws of Utah 2005
34 13-32a-113, as last amended by Chapter 256, Laws of Utah 2005
35 ENACTS:
36 13-32a-109.5, Utah Code Annotated 1953
37 13-32a-109.8, Utah Code Annotated 1953
38
39 Be it enacted by the Legislature of the state of Utah:
40 Section 1. Section 13-32a-102 is amended to read:
41 13-32a-102. Definitions.
42 As used in this chapter:
43 (1) "Account" means the Pawnbroker Operations Restricted Account created in Section
44 13-32a-113 .
45 (2) "Board" means the Pawnshop Advisory Board created by this chapter.
46 (3) "Central database" or "database" means the electronic database created and
47 operated under Section 13-32a-105 .
48 (4) "Division" means the Division of Consumer Protection in Title 13, Chapter 1,
49 Department of Commerce.
50 (5) "Identification" means a form of positive identification issued by a governmental
51 entity that:
52 (a) contains a numerical identifier and a photograph of the person identified; and
53 (b) may include a state identification card, a state drivers license, a United States
54 military identification card, or a United States passport.
55 (6) "Local law enforcement agency" means [a] the law enforcement agency that has

56 direct responsibility for ensuring compliance with central database reporting requirements for
57 the jurisdiction [over the location] where the pawnshop is located.
58 (7) "Misappropriated" means stolen, embezzled, converted, obtained by theft, or
59 otherwise appropriated without authority of the lawful owner.
60 (8) "Original victim" means a victim who is not a party to the pawn transaction.
61 (9) "Pawnbroker" means a person whose business engages in the following activities:
62 (a) loans money on one or more deposits of personal property;
63 (b) deals in the purchase, exchange, or possession of personal property on condition of
64 selling the same property back again to the pledgor or depositor;
65 (c) loans or advances money on personal property by taking chattel mortgage security
66 on the property and takes or receives the personal property into his possession, and who sells
67 the unredeemed pledges; or
68 (d) engages in a licensed business enterprise as a pawnshop.
69 (10) "Pawn ticket" means a document upon which information regarding a pawn
70 transaction is entered when the pawn transaction is made.
71 (11) "Pawn transaction" means an extension of credit in which an individual delivers
72 property to a pawnbroker for an advance of money [or sells property to a pawnbroker] and
73 retains the right to redeem [or repurchase] the property for the redemption price within a fixed
74 period of time.
75 (12) "Pawnshop" means the physical location or premises where a pawnbroker
76 conducts business.
77 (13) "Pledgor" means a person who conducts a pawn transaction with a pawnshop.
78 [(13)] (14) "Property" means any tangible personal property.
79 [(14)] (15) "Register" means the record of information required under this chapter to be
80 maintained by the pawnbroker. The register is an electronic record that is in a format that is
81 compatible with the central database.
82 Section 2. Section 13-32a-103 is amended to read:
83 13-32a-103. Compliance with criminal code and this chapter.
84 Every pawnbroker shall, regarding each article of property a person pawns or sells,
85 comply with the requirements of this chapter and the requirements of Subsections
86 76-6-408 (2)(c)(i) through (iii) regarding the person's:

87 (1) legal right to the property;
88 (2) fingerprint; and
89 (3) picture identification.
90 Section 3. Section 13-32a-109 is amended to read:
91 13-32a-109. Holding period for pawned articles.
92 [(1) (a) The pawnbroker shall hold all articles pawned or sold to him for not fewer than
93 30 days after the date of receipt of the article, except that the pawnbroker may within this time
94 period return an article to the person who pawned it.]
95 [(b) This Subsection (1) does not preclude a law enforcement agency from requiring a
96 pawnbroker to hold an article longer than 30 days if necessary in the course of an
97 investigation.]
98 (1) (a) The pawnbroker may sell any article pawned to him:
99 (i) after the expiration of the contract period between the pawnbroker and the pledgor;
100 and
101 (ii) if the pawnbroker has complied with the requirements of Section 13-32a-106
102 regarding reporting to the central database and Section 13-32a-103 .
103 (b) If an article is purchased by the pawnbroker, the pawnbroker may sell the article at
104 any time after the pawnbroker has complied with the requirements of Section 13-32a-106
105 regarding reporting to the central database and Section 13-32a-103 .
106 (c) This Subsection (1) does not preclude a law enforcement agency from requiring a
107 pawnbroker to hold an article if necessary in the course of an investigation.
108 (i) If the article was pawned, the law enforcement agency may require the article be
109 held beyond the terms of the contract between the pledgor and the pawn broker.
110 (ii) If the article was sold to the pawnbroker, the law enforcement agency may require
111 the article be held if the pawnbroker has not sold the article.
112 (d) If the law enforcement agency requesting a hold on property under this Subsection
113 (1) is not the local law enforcement agency, the requesting law enforcement agency shall notify
114 the local law enforcement agency of the request and the pawnshop.
115 (2) If a law enforcement agency [seizes an article or] requires the pawnbroker to hold
116 an article as part of an investigation, the agency shall provide to the pawnbroker a hold ticket
117 issued by the agency, which:

118 (a) states the active case number;
119 (b) confirms the date of the hold request and the article to be held; and
120 (c) facilitates the pawnbroker's ability to track the article when the prosecution takes
121 over the case.
122 (3) If an article is not seized by a law enforcement agency that has placed a hold on the
123 property, the property may remain in the custody of the pawnbroker until further disposition by
124 the law enforcement agency, and as consistent with this chapter.
125 (4) The initial hold by a law enforcement agency is for a period of 45 days. If the
126 article is not seized by the law enforcement agency, the article shall remain in the custody of
127 the pawnshop and is subject to the hold unless exigent circumstances require the pawned article
128 to be seized by the law enforcement agency.
129 (5) (a) A law enforcement agency may extend any hold for up to an additional 45 days
130 when exigent circumstances require the extension.
131 (b) When there is an extension of a hold under Subsection (5)(a), the requesting law
132 enforcement agency shall notify the pawnshop subject to the hold prior to the expiration of the
133 initial 45 days.
134 (c) A law enforcement agency may not hold an item for more than the 90 days allowed
135 under Subsections (5)(a) and (b) without obtaining a court order authorizing the hold.
136 (6) A hold on an article under Subsection (2) takes precedence over any request to
137 claim or purchase the article subject to the hold.
138 (7) When the purpose for the hold on or seizure of an article is terminated, the law
139 enforcement agency requiring the hold or seizure shall within 15 days after the termination:
140 (a) notify the pawnshop in writing that the hold or seizure has been terminated;
141 (b) return the article subject to the seizure to the pawnbroker; or
142 (c) if the article is not returned to the pawnbroker, advise the pawnbroker either in
143 writing or electronically of the specific alternative disposition of the article.
144 [(8) If the article is subject to an investigation and a criminal prosecution results, the
145 prosecuting agency shall, upon disposition of the case, request restitution to the pawnbroker for
146 the crimes perpetrated against the pawnshop as a victim of theft by deception in addition to the
147 request for restitution to the original victim.]
148 [(9) If the original victim of the theft of the property files a police report and the

149 property is subsequently located at a pawnshop, the victim must fully cooperate with the
150 prosecution of the crimes perpetrated against the pawnshop as a victim of theft by deception, in
151 order to qualify for restitution regarding the property.]
152 [(10) If the victim does not wish to pursue criminal charges or does not cooperate in
153 the prosecution of the property theft against the defendant and the theft by deception committed
154 against the pawnshop, then the original victim must pay to the pawnshop the amount of money
155 financed by the pawnshop to the defendant in order to obtain the property.]
156 [(11) (a) The victim's cooperation in the prosecution of the property crimes and in the
157 prosecution of the theft by deception offense committed against the pawnshop suspends the
158 requirements of Subsections (9) and (10).]
159 [(b) If the victim cooperates in the prosecution under Subsection (11)(a) and the
160 defendants are convicted, the prosecuting agency shall direct the pawnshop to turn over the
161 property to the victim.]
162 [(c) Upon receipt of notice from the prosecuting agency that the property must be
163 turned over to the victim, the pawnshop shall return the property to the victim as soon as
164 reasonably possible.]
165 [(12) A pawnshop must fully cooperate in the prosecution of the property crimes
166 committed against the original victim and the property crime of theft by deception committed
167 against the pawnshop in order to participate in any court-ordered restitution.]
168 [(13) At all times during the course of a criminal investigation and subsequent
169 prosecution, the article subject to a law enforcement hold shall be kept secure by the pawnshop
170 subject to the hold unless the pawned article has been seized by the law enforcement agency.]
171 Section 4. Section 13-32a-109.5 is enacted to read:
172 13-32a-109.5. Seizure of pawned property.
173 (1) If a law enforcement agency determines seizure of pawned or sold property is
174 necessary during the course of a criminal investigation in addition to the holding provisions
175 under Section 13-32a-109 , the law enforcement agency shall:
176 (a) notify the pawnshop of the specific item to be seized;
177 (b) issue to the pawnshop a seizure ticket in a form approved by the division and that:
178 (i) provides the active case number related to the item to be seized;
179 (ii) provides the date of the seizure request;

180 (iii) describes the article to be seized; and
181 (iv) includes any information that facilitates the pawnbroker's ability to track the article
182 when the prosecution agency takes over the case.
183 (2) If the law enforcement agency seizing the pawned or sold property is not the local
184 law enforcement agency, the seizing agency shall, in addition to compliance with Subsection
185 (1):
186 (a) notify the local law enforcement agency prior to any seizure; and
187 (b) facilitate the seizure of the pawned property in cooperation with the local law
188 enforcement agency to provide the pawnshop the ability to monitor the proceedings under
189 Section 13-32a-109.8 .
190 Section 5. Section 13-32a-109.8 is enacted to read:
191 13-32a-109.8. Pawned or sold property subject to law enforcement investigation.
192 (1) If the article pawned or sold under Section 13-32a-109 is subject to an investigation
193 and a criminal prosecution results, the prosecuting agency shall, prior to disposition of the case:
194 (a) request restitution to the pawnbroker for the crimes perpetrated against the
195 pawnshop as a victim of theft by deception; and
196 (b) request restitution for the original victim.
197 (2) If the original victim of the theft of the property files a police report and the
198 property is subsequently located at a pawnshop, the victim must fully cooperate with the
199 prosecution of the crimes perpetrated against the pawnshop as a victim of theft by deception, in
200 order to qualify for restitution regarding the property.
201 (3) If the original victim does not pursue criminal charges or does not cooperate in the
202 prosecution of the property theft crimes charged against the defendant and the theft by
203 deception charges committed against the pawnshop, then the original victim must pay to the
204 pawnshop the amount of money financed by the pawnshop to the defendant in order to obtain
205 the property.
206 (4) (a) The victim's cooperation in the prosecution of the property crimes and in the
207 prosecution of the theft by deception offense committed against the pawnshop suspends the
208 requirements of Subsections (2) and (3).
209 (b) If the victim cooperates in the prosecution under Subsection (4)(a) and the
210 defendants are convicted, the prosecuting agency shall direct the pawnshop to turn over the

211 property to the victim.
212 (c) Upon receipt of notice from the prosecuting agency that the property must be turned
213 over to the victim, the pawnshop shall return the property to the victim as soon as reasonably
214 possible.
215 (5) A pawnshop must fully cooperate in the prosecution of the property crimes
216 committed against the original victim and the property crime of theft by deception committed
217 against the pawnshop in order to participate in any court-ordered restitution.
218 (6) At all times during the course of a criminal investigation and subsequent
219 prosecution, the article subject to a law enforcement hold shall be kept secure by the pawnshop
220 subject to the hold unless the pawned article has been seized by the law enforcement agency
221 pursuant to Section 13-32a-109.5 .
222 Section 6. Section 13-32a-111 is amended to read:
223 13-32a-111. Fees to fund training and central database.
224 (1) On and after January 1, 2005, each pawnshop in operation shall annually pay $250
225 to the division, to be deposited in the account.
226 (2) On and after January 1, 2005, each law enforcement agency that participates in the
227 use of the database shall annually pay to the division a fee of $2 per sworn law enforcement
228 officer who is employed by the agency as of January 1 of that year. The fee shall be deposited
229 in the account.
230 (3) The fees under Subsections (1) and (2) shall be paid to the account annually on or
231 before January 30.
232 (4) (a) If a law enforcement agency outside Utah requests access to the central
233 database, the requesting agency shall pay a yearly fee of $750 for the fiscal year beginning July
234 1, 2006, which shall be deposited in the account.
235 (b) The board may establish the fee amount for fiscal years beginning on and after July
236 1, 2007 under Section 63-38-3.2 .
237 Section 7. Section 13-32a-113 is amended to read:
238 13-32a-113. Pawnbroker Operations Restricted Account.
239 (1) There is created within the General Fund a restricted account known as the
240 Pawnbroker Operations Restricted Account.
241 (2) (a) The account shall be funded from the fees and administrative fines imposed and

242 collected under Sections 13-32a-106 , 13-32a-107 , 13-32a-110 , and 13-32a-111 . These fees
243 and administrative fines shall be paid to the division, which shall deposit them in the account.
244 (b) The Legislature [may] shall appropriate the funds in this account:
245 (i) to the board for the costs of providing training required under this chapter, costs of
246 the central database created in Section 13-32a-105 , and for costs of operation of the board; and
247 (ii) to the division for management of fees and penalties paid under this chapter.
248 (c) The board shall account to the division for expenditures.
249 (d) The board shall account separately for expenditures for:
250 (i) training required under this chapter;
251 (ii) operation of the database;
252 (iii) operation of the board; and
253 (iv) costs of operation of the board.