H.B. 337 Enrolled

1

PAWNSHOP AND SECONDHAND MERCHANDISE
2 TRANSACTION INFORMATION ACT AMENDMENTS
3 2011 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Jennifer M. Seelig
6 Senate Sponsor: Curtis S. Bramble
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Commerce and Trade Code relating to the Pawnshop and
11 Secondhand Merchandise Transaction Information Act.
12 Highlighted Provisions:
13 This bill:
14 . requires a law enforcement agency to respond to a registered or certified letter from
15 a pawn or secondhand business regarding an expired hold within 30 days by either:
16 . confirming the expiration of the holding period and releasing the hold; or
17 . providing written notice to the pawn or secondhand business that a court order
18 has continued the period of time the item must be held;
19 . provides procedures for law enforcement to give the written notice;
20 . provides that if a law enforcement agency fails to respond to the registered or
21 certified mail within 30 days, the pawn or secondhand business may treat the item
22 as if acquired in the ordinary course of business;
23 . adds the requirement that the article be required during the course of a criminal
24 investigation when a law enforcement agency determines that seizure of pawned or
25 sold property is necessary; and
26 . requires a pawnshop or secondhand business to retain possession of an item until
27 the resolution of the criminal adjudication or investigation, unless the course of the
28 criminal investigation requires the seizure of the item.
29 Money Appropriated in this Bill:

30 None
31 Other Special Clauses:
32 None
33 Utah Code Sections Affected:
34 AMENDS:
35 13-32a-109, as last amended by Laws of Utah 2009, Chapter 272
36 13-32a-109.5, as last amended by Laws of Utah 2009, Chapter 272
37 13-32a-109.8, as last amended by Laws of Utah 2010, Chapter 378
38
39 Be it enacted by the Legislature of the state of Utah:
40 Section 1. Section 13-32a-109 is amended to read:
41 13-32a-109. Holding period for articles.
42 (1) (a) The pawnbroker may sell any article pawned to the pawnbroker:
43 (i) after the expiration of the contract period between the pawnbroker and the pledgor;
44 and
45 (ii) if the pawnbroker has complied with the requirements of Section 13-32a-106
46 regarding reporting to the central database and Section 13-32a-103 .
47 (b) If an article, including scrap jewelry, is purchased by a pawn or secondhand
48 business or a coin dealer, the pawn or secondhand business or coin dealer may sell the article
49 after the pawn or secondhand business or coin dealer has held the article for 15 days and
50 complied with the requirements of Section 13-32a-106 regarding reporting to the central
51 database and Section 13-32a-103 , except that pawn, secondhand, and coin dealer businesses are
52 not required to hold precious metals or coins under this Subsection (1)(b).
53 (c) This Subsection (1) does not preclude a law enforcement agency from requiring a
54 pawn or secondhand business to hold an article if necessary in the course of an investigation.
55 (i) If the article was pawned, the law enforcement agency may require the article be
56 held beyond the terms of the contract between the pledgor and the pawn broker.
57 (ii) If the article was sold to the pawn or secondhand business, the law enforcement

58 agency may require the article be held if the pawn or secondhand business has not sold the
59 article.
60 (d) If the law enforcement agency requesting a hold on property under this Subsection
61 (1) is not the local law enforcement agency, the requesting law enforcement agency shall notify
62 the local law enforcement agency of the request and also the pawn or secondhand business.
63 (2) If a law enforcement agency requires the pawn or secondhand business to hold an
64 article as part of an investigation, the agency shall provide to the pawn or secondhand business
65 a hold ticket issued by the agency, which:
66 (a) states the active case number;
67 (b) confirms the date of the hold request and the article to be held; and
68 (c) facilitates the ability of the pawn or secondhand business to track the article when
69 the prosecution takes over the case.
70 (3) If an article is not seized by a law enforcement agency that has placed a hold on the
71 property, the property [may] shall remain in the custody of the pawn or secondhand business
72 until further disposition by the law enforcement agency, and as consistent with this chapter.
73 (4) The initial hold by a law enforcement agency is for a period of 90 days. If the
74 article is not seized by the law enforcement agency, the article shall remain in the custody of
75 the pawn or secondhand business and is subject to the hold unless exigent circumstances
76 require the purchased or pawned article to be seized by the law enforcement agency.
77 (5) (a) A law enforcement agency may extend any hold for up to an additional 90 days
78 when exigent circumstances require the extension.
79 (b) When there is an extension of a hold under Subsection (5)(a), the requesting law
80 enforcement agency shall notify the pawn or secondhand business that is subject to the hold
81 prior to the expiration of the initial 90 days.
82 (c) A law enforcement agency may not hold an item for more than the 180 days
83 allowed under Subsections (5)(a) and (b) without obtaining a court order authorizing the hold.
84 (6) A hold on an article under Subsection (2) takes precedence over any request to
85 claim or purchase the article subject to the hold.

86 (7) When the purpose for the hold on or seizure of an article is terminated, the law
87 enforcement agency requiring the hold or seizure shall within 15 days after the termination:
88 (a) notify the pawn or secondhand business in writing that the hold or seizure has been
89 terminated;
90 (b) return the article subject to the seizure to the pawn or secondhand business; or
91 (c) if the article is not returned to the pawn or secondhand business, advise the pawn or
92 secondhand business either in writing or electronically of the specific alternative disposition of
93 the article.
94 (8) If the law enforcement agency does not notify the pawn or secondhand business
95 that a hold on an item has expired, the pawn or secondhand business shall send a letter by
96 registered or certified United States mail to the law enforcement agency that ordered the hold
97 and inform the agency that the holding period has expired. The law enforcement agency shall
98 respond within 30 days by:
99 (a) confirming that the holding period has expired and that the pawn or secondhand
100 business may manage the item as if acquired in the ordinary course of business; or
101 (b) providing written notice to the pawn or secondhand business that a court order has
102 continued the period of time for which the item shall be held.
103 (9) The written notice under Subsection (8)(b) is considered provided when:
104 (a) personally delivered to the pawn or secondhand business with a signed receipt of
105 delivery;
106 (b) delivered to the pawn or secondhand business by registered or certified United
107 States mail; or
108 (c) delivered by any other means with the mutual assent of the law enforcement agency
109 and the pawn or secondhand business.
110 (10) If the law enforcement agency does not respond within 30 days under Subsection
111 (8), the pawn or secondhand business may manage the item as if acquired in the ordinary
112 course of business.
113 Section 2. Section 13-32a-109.5 is amended to read:

114 13-32a-109.5. Seizure of property.
115 (1) If a law enforcement agency determines seizure of pawned or sold property is
116 necessary under Section 13-32a-109.8 during the course of a criminal investigation, in addition
117 to the holding provisions under Section 13-32a-109 , the law enforcement agency shall:
118 (a) notify the pawnshop of the specific item to be seized;
119 (b) issue to the pawnshop a seizure ticket in a form approved by the division and that:
120 (i) provides the active case number related to the item to be seized;
121 (ii) provides the date of the seizure request;
122 (iii) provides the reason for the seizure under Section 13-32a-109.8 ;
123 [(iii)] (iv) describes the article to be seized; [and]
124 (v) states each reason the article is necessary during the course of a criminal
125 investigation under Section 13-32A-109.8 ; and
126 [(iv)] (vi) includes any information that facilitates the pawnbroker's ability to track the
127 article when the prosecution agency takes over the case.
128 (2) If the purpose for the seizure of an article under this section is terminated before
129 final disposition of the criminal case and the property is no longer needed as evidence, the law
130 enforcement agency that required the seizure shall within 15 days after the property is no
131 longer needed as evidence:
132 (a) notify the pawn or secondhand business in writing that the purpose for the seizure
133 has been terminated and the property is available for return to the pawn or secondhand
134 business; or
135 (b) return the article to the pawn or secondhand business.
136 [(2)] (3) If the law enforcement agency seizing the pawned or sold property is not the
137 local law enforcement agency, the seizing agency shall, in addition to compliance with
138 Subsection (1):
139 (a) notify the local law enforcement agency prior to any seizure; and
140 (b) facilitate the seizure of the pawned property in cooperation with the local law
141 enforcement agency to provide the pawnshop or secondhand business the ability to monitor the

142 proceedings under Section 13-32a-109.8 .
143 Section 3. Section 13-32a-109.8 is amended to read:
144 13-32a-109.8. Pawned or sold property subject to law enforcement investigation.
145 (1) If the article pawned or sold under Section 13-32a-109 is subject to an investigation
146 and a criminal prosecution results, the prosecuting agency shall, prior to disposition of the case:
147 (a) request restitution to the pawn or secondhand business for the crimes perpetrated
148 against the pawn or secondhand business as a victim of theft by deception; and
149 (b) request restitution for the original victim.
150 (2) If the original victim of the theft of the property files a police report and the
151 property is subsequently located at a pawn or secondhand business, the victim shall fully
152 cooperate with the prosecution of the crimes perpetrated against the pawn or secondhand
153 business as a victim of theft by deception, in order to qualify for restitution regarding the
154 property.
155 (3) If the original victim does not pursue criminal charges or does not cooperate in the
156 prosecution of the property theft crimes charged against the defendant and the theft by
157 deception charges committed against the pawn or secondhand business, then the original victim
158 shall pay to the pawn or secondhand business the amount of money financed or paid by the
159 pawn or secondhand business to the defendant in order to obtain the property.
160 (4) (a) The victim's cooperation in the prosecution of the property crimes and in the
161 prosecution of the theft by deception offense committed against the pawn or secondhand
162 business suspends the requirements of Subsections (2) and (3).
163 (b) If the victim cooperates in the prosecution under Subsection (4)(a) and the
164 defendants are convicted, the prosecuting agency shall direct the pawn or secondhand business
165 to turn over the property to the victim.
166 (c) Upon receipt of notice from the prosecuting agency that the property [must] shall be
167 turned over to the victim, the pawn or secondhand business shall return the property to the
168 victim as soon as reasonably possible.
169 (5) The pawnshop or secondhand business shall retain possession of the item until the

170 resolution of the criminal adjudication or investigation, unless during the course of a criminal
171 investigation the actual physical possession by law enforcement of an article purchased or
172 pawned is essential for the purpose of:
173 (a) fingerprinting of an article;
174 (b) chemical testing of an article;
175 (c) use of an article as an exhibit at trial, as authorized by the prosecutor; or
176 (d) if the article contains unique or sensitive personal identifying information; or
177 [(5)] (6) A pawn or secondhand business shall fully cooperate in the prosecution of the
178 property crimes committed against the original victim and the property crime of theft by
179 deception committed against the pawn or secondhand business in order to participate in any
180 court-ordered restitution.
181 [(6)] (7) At all times during the course of a criminal investigation and subsequent
182 prosecution, the article subject to a law enforcement hold shall be kept secure by the pawn or
183 secondhand business subject to the hold unless a pawned or sold article has been seized by the
184 law enforcement agency pursuant to Section 13-32a-109.5 .