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First Substitute H.B. 337

Representative Jennifer M. Seelig proposes the following substitute bill:


             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 the registered or certified
             21      mail within 30 days, the pawn or secondhand business may treat the item as if
             22      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:
             28              .    the course of the criminal investigation requires the seizure of the item; or
             29              .    the item has been held for 180 days and the holding period has lapsed and no
             30      person has been charged
             31      Money Appropriated in this Bill:
             32          None
             33      Other Special Clauses:
             34          None
             35      Utah Code Sections Affected:
             36      AMENDS:
             37          13-32a-109, as last amended by Laws of Utah 2009, Chapter 272
             38          13-32a-109.5, as last amended by Laws of Utah 2009, Chapter 272
             39          13-32a-109.8, as last amended by Laws of Utah 2010, Chapter 378
             40     
             41      Be it enacted by the Legislature of the state of Utah:
             42          Section 1. Section 13-32a-109 is amended to read:
             43           13-32a-109. Holding period for articles.
             44          (1) (a) The pawnbroker may sell any article pawned to the pawnbroker:
             45          (i) after the expiration of the contract period between the pawnbroker and the pledgor;
             46      and
             47          (ii) if the pawnbroker has complied with the requirements of Section 13-32a-106
             48      regarding reporting to the central database and Section 13-32a-103 .
             49          (b) If an article, including scrap jewelry, is purchased by a pawn or secondhand
             50      business or a coin dealer, the pawn or secondhand business or coin dealer may sell the article
             51      after the pawn or secondhand business or coin dealer has held the article for 15 days and
             52      complied with the requirements of Section 13-32a-106 regarding reporting to the central
             53      database and Section 13-32a-103 , except that pawn, secondhand, and coin dealer businesses are
             54      not required to hold precious metals or coins under this Subsection (1)(b).
             55          (c) This Subsection (1) does not preclude a law enforcement agency from requiring a
             56      pawn or secondhand business to hold an article if necessary in the course of an investigation.


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


             88          (7) When the purpose for the hold on or seizure of an article is terminated, the law
             89      enforcement agency requiring the hold or seizure shall within 15 days after the termination:
             90          (a) notify the pawn or secondhand business in writing that the hold or seizure has been
             91      terminated;
             92          (b) return the article subject to the seizure to the pawn or secondhand business; or
             93          (c) if the article is not returned to the pawn or secondhand business, advise the pawn or
             94      secondhand business either in writing or electronically of the specific alternative disposition of
             95      the article.
             96          (8) If the law enforcement agency does not notify the pawn or secondhand business
             97      that a hold on an item has expired, the pawn or secondhand business shall send a letter by
             98      registered or certified United States mail to the law enforcement agency that ordered the hold
             99      and inform the agency that the holding period has expired. The law enforcement agency shall
             100      respond within 30 days by:
             101          (a) confirming that the holding period has expired and that the pawn or secondhand
             102      business may manage the item as if acquired in the ordinary course of business; or
             103          (b) providing written notice to the pawn or secondhand business that a court order has
             104      continued the period of time for which the item shall be held.
             105          (9) The written notice under Subsection (8)(b) is considered provided when:
             106          (a) personally delivered to the pawn or secondhand business with a signed receipt of
             107      delivery;
             108          (b) delivered to the pawn or secondhand business by registered or certified United
             109      States mail; or
             110          (c) delivered by any other means with the mutual assent of the law enforcement agency
             111      and the pawn or secondhand business.
             112          (10) If the law enforcement agency does not respond within 30 days under Subsection
             113      (8), the pawn or secondhand business may manage the item as if acquired in the ordinary
             114      course of business.
             115          Section 2. Section 13-32a-109.5 is amended to read:
             116           13-32a-109.5. Seizure of property.
             117          (1) If a law enforcement agency determines seizure of pawned or sold property is
             118      necessary under Section 13-32a-109.8 during the course of a criminal investigation in addition


             119      to the holding provisions under Section 13-32a-109 , the law enforcement agency shall:
             120          (a) notify the pawnshop of the specific item to be seized;
             121          (b) issue to the pawnshop a seizure ticket in a form approved by the division and that:
             122          (i) provides the active case number related to the item to be seized;
             123          (ii) provides the date of the seizure request;
             124          (iii) provides the reason for the seizure under Section 13-32a-109.8 ;
             125          [(iii)] (iv) describes the article to be seized; [and]
             126          (v) states each reason the article is necessary during the course of a criminal
             127      investigation under Section 13-32A-109.8 ; and
             128          [(iv)] (vi) includes any information that facilitates the pawnbroker's ability to track the
             129      article when the prosecution agency takes over the case.
             130          (2) If the purpose for the seizure of an article under this section is terminated before
             131      final disposition of the criminal case and the property is no longer needed as evidence, the law
             132      enforcement agency that required the seizure shall within 15 days after the property is no
             133      longer needed as evidence:
             134          (a) notify the pawn or secondhand business in writing that the purpose for the seizure
             135      has been terminated and the property is available for return to the pawn or secondhand
             136      business; or
             137          (b) return the article to the pawn or secondhand business.
             138          [(2)] (3) If the law enforcement agency seizing the pawned or sold property is not the
             139      local law enforcement agency, the seizing agency shall, in addition to compliance with
             140      Subsection (1):
             141          (a) notify the local law enforcement agency prior to any seizure; and
             142          (b) facilitate the seizure of the pawned property in cooperation with the local law
             143      enforcement agency to provide the pawnshop or secondhand business the ability to monitor the
             144      proceedings under Section 13-32a-109.8 .
             145          Section 3. Section 13-32a-109.8 is amended to read:
             146           13-32a-109.8. Pawned or sold property subject to law enforcement investigation.
             147          (1) If the article pawned or sold under Section 13-32a-109 is subject to an investigation
             148      and a criminal prosecution results, the prosecuting agency shall, prior to disposition of the case:
             149          (a) request restitution to the pawn or secondhand business for the crimes perpetrated


             150      against the pawn or secondhand business as a victim of theft by deception; and
             151          (b) request restitution for the original victim.
             152          (2) If the original victim of the theft of the property files a police report and the
             153      property is subsequently located at a pawn or secondhand business, the victim shall fully
             154      cooperate with the prosecution of the crimes perpetrated against the pawn or secondhand
             155      business as a victim of theft by deception, in order to qualify for restitution regarding the
             156      property.
             157          (3) If the original victim does not pursue criminal charges or does not cooperate in the
             158      prosecution of the property theft crimes charged against the defendant and the theft by
             159      deception charges committed against the pawn or secondhand business, then the original victim
             160      shall pay to the pawn or secondhand business the amount of money financed or paid by the
             161      pawn or secondhand business to the defendant in order to obtain the property.
             162          (4) (a) The victim's cooperation in the prosecution of the property crimes and in the
             163      prosecution of the theft by deception offense committed against the pawn or secondhand
             164      business suspends the requirements of Subsections (2) and (3).
             165          (b) If the victim cooperates in the prosecution under Subsection (4)(a) and the
             166      defendants are convicted, the prosecuting agency shall direct the pawn or secondhand business
             167      to turn over the property to the victim.
             168          (c) Upon receipt of notice from the prosecuting agency that the property [must] shall be
             169      turned over to the victim, the pawn or secondhand business shall return the property to the
             170      victim as soon as reasonably possible.
             171          (5) The pawnshop or secondhand business shall retain possession of the item until the
             172      resolution of the criminal adjudication or investigation, unless:
             173          (a) necessary during the course of a criminal investigation and actual physical
             174      possession of an article purchased or pawned is essential to a law enforcement purpose of:
             175          (i) fingerprinting of an article;
             176          (ii) chemical testing of an article;
             177          (iii) use of an article as an exhibit at trial, as authorized by the prosecutor; or
             178          (iv) if the article contains unique or sensitive personal identifying information; or
             179          (b) the item has been held for a period of 180 days, the holding period has lapsed, and
             180      no one has been formally charged or indicted.


             181          [(5)] (6) A pawn or secondhand business shall fully cooperate in the prosecution of the
             182      property crimes committed against the original victim and the property crime of theft by
             183      deception committed against the pawn or secondhand business in order to participate in any
             184      court-ordered restitution.
             185          [(6)] (7) At all times during the course of a criminal investigation and subsequent
             186      prosecution, the article subject to a law enforcement hold shall be kept secure by the pawn or
             187      secondhand business subject to the hold unless a pawned or sold article has been seized by the
             188      law enforcement agency pursuant to Section 13-32a-109.5 .


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