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[Introduced][Status][Bill Documents][Fiscal Note] [Bills Directory]

H.B. 175 Enrolled

             1     

SECOND HAND ITEM TRANSACTIONS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Jennifer M. Seelig

             5     
Senate Sponsor: Jerry W. Stevenson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies Title 13, Chapter 32a, Pawnshop and Secondhand Merchandise
             10      Transaction Information Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    authorizes local government to enforce the chapter;
             14          .    defines original victim to include a representative of the victim;
             15          .    changes the fingerprint requirement from the thumb to the index finger;
             16          .    requires that pawn and secondhand businesses advise persons attempting to sell or
             17      pawn property that they must comply with the statutory unclaimed property
             18      provisions;
             19          .    removes the requirement that the pawn and secondhand database respond to
             20      inquiries from persons claiming ownership of property;
             21          .    deletes current language describing procedures concerning pawn and secondhand
             22      business possession of property subject to law enforcement investigation and
             23      provides new language regarding possession by the business, and including changes
             24      in the obligation of the victim to cooperate with law enforcement;
             25          .    provides that if there is a conflict between this chapter and the current code
             26      regarding property not needed as evidence, this chapter takes precedence;
             27          .    imposes a class B criminal misdemeanor penalty on specific conduct;
             28          .    provides that a pawn or secondhand business may not sell to a person younger than
             29      18 or a person who appears to be under the influence of alcohol or controlled


             30      substances;
             31          .    increases the database fees in the chapter for pawn and secondhand businesses;
             32          .    increases the membership of the Secondhand Merchandise Advisory Board by
             33      adding a representative of municipal prosecutors and increasing the number of
             34      members who represent secondhand businesses from two to three;
             35          .    provides that the board may propose administrative rules to the division regarding
             36      best practices and standardized property descriptions;
             37          .    provides a process for pawn and secondhand businesses to submit complaints to the
             38      Peace Officers Standards and Training Division regarding law enforcement
             39      practices;
             40          .    increases the fees for database use for each sworn peace officer in an agency, and
             41      for out-of-state agencies; and
             42          .    requires that the advisory board quorum be greater than a simple majority of the
             43      members.
             44      Money Appropriated in this Bill:
             45          None
             46      Other Special Clauses:
             47          This bill coordinates with H.B. 239, Pawnshop Record Amendments, by providing that
             48      specified language in this bill takes precedence.
             49      Utah Code Sections Affected:
             50      AMENDS:
             51          13-32a-102, as last amended by Laws of Utah 2009, Chapter 272
             52          13-32a-102.5, as last amended by Laws of Utah 2009, Chapter 272
             53          13-32a-104, as last amended by Laws of Utah 2008, Chapter 333
             54          13-32a-106, as last amended by Laws of Utah 2007, Chapter 352
             55           13-32a-106.5, as last amended by Laws of Utah 2009, Chapter 272
             56          13-32a-108, as last amended by Laws of Utah 2009, Chapter 272
             57          13-32a-109, as last amended by Laws of Utah 2011, Chapter 348


             58          13-32a-109.5, as last amended by Laws of Utah 2011, Chapter 348
             59          13-32a-110, as last amended by Laws of Utah 2009, Chapter 272
             60          13-32a-111, as last amended by Laws of Utah 2009, Chapters 183 and 272
             61          13-32a-112, as last amended by Laws of Utah 2009, Chapter 272
             62          13-32a-112.5, as enacted by Laws of Utah 2008, Chapter 333
             63          77-24-2, as last amended by Laws of Utah 2005, Chapter 126
             64      ENACTS:
             65          13-32a-110.5, Utah Code Annotated 1953
             66          13-32a-115, Utah Code Annotated 1953
             67          13-32a-116, Utah Code Annotated 1953
             68          13-32a-117, Utah Code Annotated 1953
             69      REPEALS:
             70          13-32a-109.8, as last amended by Laws of Utah 2011, Chapter 348
             71      Utah Code Sections Affected by Coordination Clause:
             72          13-32a-106.5, as last amended by Laws of Utah 2009, Chapter 272
             73     
             74      Be it enacted by the Legislature of the state of Utah:
             75          Section 1. Section 13-32a-102 is amended to read:
             76           13-32a-102. Definitions.
             77          As used in this chapter:
             78          (1) "Account" means the Pawnbroker and Secondhand Merchandise Operations
             79      Restricted Account created in Section 13-32a-113 .
             80          (2) "Antique item" means an item:
             81          (a) that is generally older than 25 years;
             82          (b) whose value is based on age, rarity, condition, craftsmanship, or collectability;
             83          (c) that is furniture or other decorative objects produced in a previous time period, as
             84      distinguished from new items of a similar nature; and
             85          (d) obtained from auctions, estate sales, other antique shops, and individuals.


             86          (3) "Antique shop" means a business operating at an established location and that
             87      offers for sale antique items.
             88          (4) "Board" means the Pawnshop and Secondhand Merchandise Advisory Board
             89      created by this chapter.
             90          (5) "Central database" or "database" means the electronic database created and
             91      operated under Section 13-32a-105 .
             92          (6) "Coin" means a piece of currency, usually metallic and usually in the shape of a
             93      disc that is:
             94          (a) stamped metal, and issued by a government as monetary currency; or
             95          (b) (i) worth more than its current value as currency; and
             96          (ii) worth more than its metal content value.
             97          (7) "Coin dealer" means a person or business whose sole business activity is the selling
             98      and purchasing of coins and precious metals.
             99          (8) "Commercial grade precious metals" or "precious metals" means ingots, monetized
             100      bullion, art bars, medallions, medals, tokens, and currency that are marked by the refiner or
             101      fabricator indicating their fineness and include:
             102          (a) .99 fine or finer ingots of gold, silver, platinum, palladium, or other precious
             103      metals; or
             104          (b) .925 fine sterling silver ingots, art bars, and medallions.
             105          (9) "Division" means the Division of Consumer Protection in Title 13, Chapter 1,
             106      Department of Commerce.
             107          (10) "Identification" means a form of positive identification issued by a governmental
             108      entity and that:
             109          (a) contains a numerical identifier and a photograph of the person identified; and
             110          (b) may include a state identification card, a state drivers license, a United States
             111      military identification card, or a United States passport.
             112          (11) "Local law enforcement agency" means the law enforcement agency that has
             113      direct responsibility for ensuring compliance with central database reporting requirements for


             114      the jurisdiction where the pawnshop or secondhand business is located.
             115          (12) "Misappropriated" means stolen, embezzled, converted, obtained by theft, or
             116      otherwise appropriated without authority of the lawful owner.
             117          (13) "Original victim" means a victim who is not a party to the pawn or sale transaction
             118      and includes:
             119          (a) an authorized representative designated in writing by the original victim; and
             120          (b) an insurer who has indemnified the original victim for the loss of the described
             121      property.
             122          (14) "Pawnbroker" means a person whose business engages in the following activities:
             123          (a) loans money on one or more deposits of personal property;
             124          (b) deals in the purchase, exchange, or possession of personal property on condition of
             125      selling the same property back again to the pledgor or depositor;
             126          (c) loans or advances money on personal property by taking chattel mortgage security
             127      on the property and takes or receives the personal property into his possession, and who sells
             128      the unredeemed pledges;
             129          (d) deals in the purchase, exchange, or sale of used or secondhand merchandise or
             130      personal property; or
             131          (e) engages in a licensed business enterprise as a pawnshop.
             132          (15) "Pawn and secondhand business" means any business operated by a pawnbroker
             133      or secondhand merchandise dealer, or the owner or operator of the business.
             134          (16) "Pawn ticket" means a document upon which information regarding a pawn
             135      transaction is entered when the pawn transaction is made.
             136          (17) "Pawn transaction" means an extension of credit in which an individual delivers
             137      property to a pawnbroker for an advance of money and retains the right to redeem the property
             138      for the redemption price within a fixed period of time.
             139          (18) "Pawnshop" means the physical location or premises where a pawnbroker
             140      conducts business.
             141          (19) "Pledgor" means a person who conducts a pawn transaction with a pawnshop.


             142          (20) "Property" means any tangible personal property.
             143          (21) "Register" means the record of information required under this chapter to be
             144      maintained by pawn and secondhand businesses. The register is an electronic record that is in a
             145      format that is compatible with the central database.
             146          (22) "Scrap jewelry" means any item purchased solely:
             147          (a) for its gold, silver, or platinum content; and
             148          (b) for the purpose of reuse of the metal content.
             149          (23) (a) "Secondhand merchandise dealer" means an owner or operator of a business
             150      that:
             151          (i) deals in the purchase, exchange, or sale of used or secondhand merchandise or
             152      personal property; and
             153          (ii) does not function as a pawnbroker.
             154          (b) "Secondhand merchandise dealer" does not include:
             155          (i) the owner or operator of an antique shop;
             156          (ii) any class of businesses exempt by administrative rule under Section 13-32a-112.5 ;
             157          (iii) any person or entity who operates auction houses, flea markets, or vehicle, vessel,
             158      and outboard motor dealers as defined in Section 41-1a-102 ;
             159          (iv) the sale of secondhand goods at events commonly known as "garage sales," "yard
             160      sales," or "estate sales";
             161          (v) the sale or receipt of secondhand books, magazines, or post cards;
             162          (vi) the sale or receipt of used merchandise donated to recognized nonprofit, religious,
             163      or charitable organizations or any school-sponsored association, and for which no
             164      compensation is paid;
             165          (vii) the sale or receipt of secondhand clothing and shoes;
             166          (viii) any person offering his own personal property for sale, purchase, consignment, or
             167      trade via the Internet;
             168          (ix) any person or entity offering the personal property of others for sale, purchase,
             169      consignment, or trade via the Internet, when that person or entity does not have, and is not


             170      required to have, a local business or occupational license or other authorization for this activity;
             171          (x) any owner or operator of a retail business that receives used merchandise as a
             172      trade-in for similar new merchandise;
             173          (xi) an owner or operator of a business that contracts with other persons or entities to
             174      offer those persons' secondhand goods for sale, purchase, consignment, or trade via the
             175      Internet;
             176          (xii) any dealer as defined in Section 76-10-901 , which concerns scrap metal and
             177      secondary metals; or
             178          (xiii) the purchase of items in bulk that are:
             179          (A) sold at wholesale in bulk packaging;
             180          (B) sold by a person licensed to conduct business in Utah; and
             181          (C) regularly sold in bulk quantities as a recognized form of sale.
             182          Section 2. Section 13-32a-102.5 is amended to read:
             183           13-32a-102.5. Administration and enforcement.
             184          (1) The division shall administer and enforce this chapter in accordance with the
             185      authority under Title 13, Chapter 2, Division of Consumer Protection.
             186          (2) The attorney general, upon request, shall give legal advice to, and act as counsel
             187      for, the division in the exercise of its responsibilities under this chapter.
             188          (3) Reasonable attorney fees, costs, and interest shall be awarded to the division in any
             189      action brought to enforce the provisions of this chapter.
             190          (4) Municipal and county law enforcement agencies, prosecutorial agencies, and
             191      governmental agencies may enforce the criminal and civil provisions of this chapter.
             192          Section 3. Section 13-32a-104 is amended to read:
             193           13-32a-104. Register required to be maintained -- Contents -- Identification of
             194      items -- Prohibition against pawning or selling certain property.
             195          (1) Every pawnbroker or secondhand merchandise dealer shall keep a register of each
             196      article of property a person pawns or sells to the pawnbroker or secondhand merchandise
             197      dealer, except as provided in Subsection 13-32a-102 (23)(b). Every pawn and secondhand


             198      business owner or operator, or his employee, shall enter the following information regarding
             199      every article pawned or sold to the owner or employee:
             200          (a) the date and time of the transaction;
             201          (b) the pawn transaction ticket number, if the article is pawned;
             202          (c) the date by which the article must be redeemed;
             203          (d) the following information regarding the person who pawns or sells the article:
             204          (i) the person's name, residence address, and date of birth;
             205          (ii) the number of the driver license or other form of positive identification presented
             206      by the person, and notations of discrepancies if the person's physical description, including
             207      gender, height, weight, race, age, hair color, and eye color, does not correspond with
             208      identification provided by the person;
             209          (iii) the person's signature; and
             210          (iv) a legible fingerprint of the person's right [thumb] index finger, or if the right
             211      [thumb] index finger cannot be fingerprinted, a legible fingerprint of the person with a written
             212      notation identifying the fingerprint and the reason why the [thumb] index finger's print was
             213      unavailable;
             214          (e) the amount loaned on or paid for the article, or the article for which it was traded;
             215          (f) the identification of the pawn or secondhand business owner or the employee,
             216      whoever is making the register entry; and
             217          (g) an accurate description of the article of property, including available identifying
             218      marks such as:
             219          (i) names, brand names, numbers, serial numbers, model numbers, color,
             220      manufacturers' names, and size;
             221          (ii) metallic composition, and any jewels, stones, or glass;
             222          (iii) any other marks of identification or indicia of ownership on the article;
             223          (iv) the weight of the article, if the payment is based on weight;
             224          (v) any other unique identifying feature;
             225          (vi) gold content, if indicated; and


             226          (vii) if multiple articles of a similar nature are delivered together in one transaction and
             227      the articles do not bear serial or model numbers and do not include precious metals or
             228      gemstones, such as musical or video recordings, books, or hand tools, the description of the
             229      articles is adequate if it includes the quantity of the articles and a description of the type of
             230      articles delivered.
             231          (2) A pawn or secondhand business may not accept any personal property if, upon
             232      inspection, it is apparent that serial numbers, model names, or identifying characteristics have
             233      been intentionally defaced on that article of property.
             234          (3) (a) A person may not pawn or sell any property to a business regulated under this
             235      chapter if the property is subject to being turned over to a law enforcement agency in
             236      accordance with Title 77, Chapter 24, Unclaimed Personal Property.
             237          (b) If an individual attempts to sell or pawn property to a business regulated under this
             238      chapter and the employee or owner of the business knows or has reason to know that the
             239      property is subject to Title 77, Chapter 24, Unclaimed Personal Property, the employee or
             240      owner shall advise the individual of the requirements of Title 77, Chapter 24, Unclaimed
             241      Personal Property, and may not receive the property in pawn or sale.
             242          (4) A violation of this section is a Class B misdemeanor and is also subject to civil
             243      penalties under Section 13-32a-110 .
             244          Section 4. Section 13-32a-106 is amended to read:
             245           13-32a-106. Transaction information provided to the central database --
             246      Protected information.
             247          (1) The information required to be recorded under Sections 13-32a-103 and
             248      13-32a-104 that is capable of being transmitted electronically shall be transmitted
             249      electronically to the central database on the next business day following the transaction.
             250          (2) The pawnbroker shall maintain all pawn tickets generated by the pawnshop and
             251      shall maintain the tickets in a manner so that the tickets are available to local law enforcement
             252      agencies as required by this chapter and as requested by any law enforcement agency as part of
             253      an investigation or reasonable random inspection conducted pursuant to this chapter.


             254          (3) (a) If a pawn or secondhand business experiences a computer or electronic
             255      malfunction that affects its ability to report transactions as required in Subsection (1), the pawn
             256      or secondhand business shall immediately notify the local law enforcement agency of the
             257      malfunction.
             258          (b) The pawn or secondhand business shall solve the malfunction within three business
             259      days or notify law enforcement under Subsection (4).
             260          (4) If the computer or electronic malfunction under Subsection (3) cannot be solved
             261      within three business days, the pawn or secondhand business shall notify the local law
             262      enforcement agency of the reasons for the delay and provide documentation from a reputable
             263      computer maintenance company of the reasons why the computer or electronic malfunction
             264      cannot be solved within three business days.
             265          (5) A computer or electronic malfunction does not suspend the pawn or secondhand
             266      business' obligation to comply with all other provisions of this chapter.
             267          (6) During the malfunction under Subsections (3) and (4), the pawn or secondhand
             268      business shall:
             269          (a) arrange with the local law enforcement agency a mutually acceptable alternative
             270      method by which the pawn or secondhand business provides the required information to the
             271      local law enforcement official; and
             272          (b) a pawnshop shall maintain the pawn tickets and other related information required
             273      under this chapter in a written form.
             274          (7) A pawn or secondhand business that violates the electronic transaction reporting
             275      requirement of this section is subject to an administrative fine of $50 per day if:
             276          (a) the pawn or secondhand business is unable to submit the information electronically
             277      due to a computer or electronic malfunction;
             278          (b) the three business day period under Subsection (3) has expired; and
             279          (c) the pawn or secondhand business has not provided documentation regarding its
             280      inability to solve the malfunction as required under Subsection (4).
             281          (8) A pawn or secondhand business is not responsible for a delay in transmission of


             282      information that results from a malfunction in the central database.
             283          (9) A violation of this section is a Class B misdemeanor and is also subject to civil
             284      penalties under Section 13-32a-110 .
             285          Section 5. Section 13-32a-106.5 is amended to read:
             286           13-32a-106.5. Confidentiality of pawn and purchase transactions.
             287          (1) All pawn and purchase transaction records delivered to a local law enforcement
             288      official or transmitted to the central database pursuant to Section 13-32a-106 are protected
             289      records under Section 63G-2-305 . These records may be used only by law enforcement
             290      officials and the division and only for the law enforcement and administrative enforcement
             291      purposes of:
             292          (a) investigating possible criminal conduct involving the property delivered to the
             293      pawnbroker or secondhand business in a pawn or purchase transaction;
             294          (b) investigating a possible violation of the record keeping or reporting requirements of
             295      this chapter when the local law enforcement official, based on a review of the records and
             296      information received, has reason to believe that a violation has occurred;
             297          (c) responding to an inquiry from [a person claiming ownership of described property]
             298      an insurance company investigating a claim for physical loss of described property by
             299      searching the database to determine if property matching the description has been delivered to a
             300      pawnbroker or secondhand business by another person in a pawn or purchase transaction and if
             301      so, obtaining from the database:
             302          (i) a description of the property;
             303          (ii) the name and address of the pawnbroker or secondhand business who received the
             304      property; and
             305          (iii) the name, address, and date of birth of the conveying person; and
             306          (d) taking enforcement action under Section 13-2-5 against a pawnbroker or
             307      secondhand business.
             308          (2) An insurance company making a request under Subsection (1)(c) shall provide the
             309      police report case number concerning the described property.


             310          [(2)] (3) (a) A person may not knowingly and intentionally use, release, publish, or
             311      otherwise make available to any person or entity any information obtained from the database
             312      for any purpose other than those specified in Subsection (1).
             313          (b) Each separate violation of Subsection [(2)] (3)(a) is a class B misdemeanor.
             314          (c) Each separate violation of Subsection [(2)] (3)(a) is subject to a civil penalty not to
             315      exceed $250.
             316          Section 6. Section 13-32a-108 is amended to read:
             317           13-32a-108. Retention of records -- Reasonable inspection.
             318          (1) The pawnbroker or law enforcement agency, whichever has custody of pawn
             319      tickets, shall retain them for no less than three years from the date of the transaction.
             320          (2) (a) A law enforcement agency may conduct random reasonable inspections of pawn
             321      or secondhand businesses for the purpose of monitoring compliance with the reporting
             322      requirements of this chapter. The inspections may be conducted to:
             323          (i) confirm that pawned or sold items match the description reported to the database by
             324      the pawnshop; and
             325          (ii) make spot checks of property at the pawn or secondhand business to determine if
             326      the property is appropriately reported.
             327          (b) Inspections under Subsection (2)(a) shall be performed during the regular business
             328      hours of the pawn or secondhand business.
             329          (3) A violation of this section is a Class B misdemeanor and is also subject to civil
             330      penalties under Section 13-32a-110 .
             331          Section 7. Section 13-32a-109 is amended to read:
             332           13-32a-109. Holding period for articles.
             333          (1) (a) The pawnbroker may sell any article pawned to the pawnbroker:
             334          (i) after the expiration of the contract period between the pawnbroker and the pledgor;
             335      and
             336          (ii) if the pawnbroker has complied with the requirements of Section 13-32a-106
             337      regarding reporting to the central database and Section 13-32a-103 .


             338          (b) If an article, including scrap jewelry, is purchased by a pawn or secondhand
             339      business or a coin dealer, the pawn or secondhand business or coin dealer may sell the article
             340      after the pawn or secondhand business or coin dealer has held the article for 15 days and
             341      complied with the requirements of Section 13-32a-106 regarding reporting to the central
             342      database and Section 13-32a-103 , except that pawn, secondhand, and coin dealer businesses are
             343      not required to hold precious metals or coins under this Subsection (1)(b).
             344          (c) This Subsection (1) does not preclude a law enforcement agency from requiring a
             345      pawn or secondhand business to hold an article if necessary in the course of an investigation.
             346          (i) If the article was pawned, the law enforcement agency may require the article be
             347      held beyond the terms of the contract between the pledgor and the pawn broker.
             348          (ii) If the article was sold to the pawn or secondhand business, the law enforcement
             349      agency may require the article be held if the pawn or secondhand business has not sold the
             350      article.
             351          (d) If the law enforcement agency requesting a hold on property under this Subsection
             352      (1) is not the local law enforcement agency, the requesting law enforcement agency shall notify
             353      the local law enforcement agency of the request and also the pawn or secondhand business.
             354          (2) If a law enforcement agency requires the pawn or secondhand business to hold an
             355      article as part of an investigation, the agency shall provide to the pawn or secondhand business
             356      a hold ticket issued by the agency, which:
             357          (a) states the active case number;
             358          (b) confirms the date of the hold request and the article to be held; and
             359          (c) facilitates the ability of the pawn or secondhand business to track the article when
             360      the prosecution takes over the case.
             361          (3) If an article is not seized by a law enforcement agency that has placed a hold on the
             362      property, the property shall remain in the custody of the pawn or secondhand business until
             363      further disposition by the law enforcement agency, and as consistent with this chapter.
             364          (4) The initial hold by a law enforcement agency is for a period of 90 days. If the
             365      article is not seized by the law enforcement agency, the article shall remain in the custody of


             366      the pawn or secondhand business and is subject to the hold unless exigent circumstances
             367      require the purchased or pawned article to be seized by the law enforcement agency.
             368          (5) (a) A law enforcement agency may extend any hold for up to an additional 90 days
             369      when exigent circumstances require the extension.
             370          (b) When there is an extension of a hold under Subsection (5)(a), the requesting law
             371      enforcement agency shall notify the pawn or secondhand business that is subject to the hold
             372      prior to the expiration of the initial 90 days.
             373          (c) A law enforcement agency may not hold an item for more than the 180 days
             374      allowed under Subsections (5)(a) and (b) without obtaining a court order authorizing the hold.
             375          (6) A hold on an article under Subsection (2) takes precedence over any request to
             376      claim or purchase the article subject to the hold.
             377          (7) When the purpose for the hold on or seizure of an article is terminated, the law
             378      enforcement agency requiring the hold or seizure shall within 15 days after the termination:
             379          (a) notify the pawn or secondhand business in writing that the hold or seizure has been
             380      terminated;
             381          (b) return the article subject to the seizure to the pawn or secondhand business; or
             382          (c) if the article is not returned to the pawn or secondhand business, advise the pawn or
             383      secondhand business either in writing or electronically of the specific alternative disposition of
             384      the article.
             385          (8) If the law enforcement agency does not notify the pawn or secondhand business
             386      that a hold on an item has expired, the pawn or secondhand business shall send a letter by
             387      registered or certified United States mail to the law enforcement agency that ordered the hold
             388      and inform the agency that the holding period has expired. The law enforcement agency shall
             389      respond within 30 days by:
             390          (a) confirming that the holding period has expired and that the pawn or secondhand
             391      business may manage the item as if acquired in the ordinary course of business; or
             392          (b) providing written notice to the pawn or secondhand business that a court order has
             393      continued the period of time for which the item shall be held.


             394          (9) The written notice under Subsection (8)(b) is considered provided when:
             395          (a) personally delivered to the pawn or secondhand business with a signed receipt of
             396      delivery;
             397          (b) delivered to the pawn or secondhand business by registered or certified United
             398      States mail; or
             399          (c) delivered by any other means with the mutual assent of the law enforcement agency
             400      and the pawn or secondhand business.
             401          (10) If the law enforcement agency does not respond within 30 days under Subsection
             402      (8), the pawn or secondhand business may manage the item as if acquired in the ordinary
             403      course of business.
             404          (11) A violation of this section is a Class B misdemeanor and is also subject to civil
             405      penalties under Section 13-32a-110 .
             406          Section 8. Section 13-32a-109.5 is amended to read:
             407           13-32a-109.5. Seizure of property.
             408          (1) If a law enforcement agency determines seizure of property pawned or sold
             409      [property] to a pawn or secondhand business is necessary under [Section 13-32a-109.8 ] this
             410      chapter during the course of a criminal investigation, in addition to the holding provisions
             411      under Section 13-32a-109 , the law enforcement agency shall:
             412          (a) notify the pawnshop of the specific item to be seized;
             413          (b) issue to the pawnshop a seizure ticket in a form approved by the division and that:
             414          (i) provides the active case number related to the item to be seized;
             415          (ii) provides the date of the seizure request;
             416          (iii) provides the reason for the seizure [under Section 13-32a-109.8 ];
             417          (iv) describes the article to be seized;
             418          (v) states each reason the article is necessary during the course of a criminal
             419      investigation [under Section 13-32A-109.8 ]; and
             420          (vi) includes any information that facilitates the pawnbroker's ability to track the article
             421      when the prosecution agency takes over the case.


             422          (2) If the purpose for the seizure of an article under this section is terminated before
             423      final disposition of the criminal case and the property is no longer needed as evidence, the law
             424      enforcement agency that required the seizure shall within 15 days after the property is no
             425      longer needed as evidence:
             426          (a) notify the pawn or secondhand business in writing that the purpose for the seizure
             427      has been terminated and the property is available for return to the pawn or secondhand
             428      business; or
             429          (b) return the article to the pawn or secondhand business.
             430          (3) If the law enforcement agency seizing the pawned or sold property is not the local
             431      law enforcement agency, the seizing agency shall, in addition to compliance with Subsection
             432      (1):
             433          (a) notify the local law enforcement agency prior to any seizure; and
             434          (b) facilitate the seizure of the pawned property in cooperation with the local law
             435      enforcement agency to provide the pawnshop or secondhand business the ability to monitor the
             436      proceedings [under Section 13-32a-109.8 ].
             437          Section 9. Section 13-32a-110 is amended to read:
             438           13-32a-110. Civil penalties.
             439          (1) A violation of any of the following sections is subject to a civil penalty of not more
             440      than $500:
             441          (a) Section 13-32a-104 , register required to be maintained;
             442          (b) Section 13-32a-106 , transaction information provided to law enforcement;
             443          (c) Section 13-32a-108 , retention of records;
             444          (d) Section 13-32a-109 , holding period for pawned articles;
             445          (e) Section 13-32a-111 , payment of fees as required; or
             446          (f) Section 13-32a-112 , training requirements for pawn, secondhand, and coin dealer
             447      business employees and officers of participating law enforcement agencies.
             448          (2) This section does not prohibit civil action by a governmental entity regarding the
             449      pawnbroker's business operation or licenses.


             450          (3) The imposition of civil penalties under this section does not prohibit criminal
             451      prosecution by a governmental entity for criminal violations of this chapter.
             452          Section 10. Section 13-32a-110.5 is enacted to read:
             453          13-32a-110.5. Transactions with certain persons prohibited.
             454          A pawn or secondhand business may not purchase, accept as a pawn, or take for
             455      consignment any property from a person who:
             456          (1) is younger than 18 years of age; or
             457          (2) appears to be acting under the influence of alcohol or any controlled substance.
             458          Section 11. Section 13-32a-111 is amended to read:
             459           13-32a-111. Fees to fund training and central database.
             460          (1) (a) (i) On and after January 1, 2005, each pawnshop or secondhand merchandise
             461      dealer in operation shall annually pay $250 to the division, to be deposited in the account.
             462          (ii) On and after January 1, 2013, each pawnshop or secondhand merchandise dealer in
             463      operation shall annually pay $300 to the division, to be deposited in the account.
             464          (b) For the period of July 1, 2009 through December 31, 2009, each coin dealer in
             465      operation shall pay a fee of $250 to the division to be deposited in the account.
             466          (c) (i) On and after January 1, 2010, each coin dealer in operation shall annually on
             467      January 1 pay $250 to the division to be deposited in the account.
             468          (ii) On and after January 1, 2013, each coin dealer in operation shall annually on
             469      January 1 pay $300 to the division to be deposited in the account.
             470          (2) (a) On and after January 1, 2005, each law enforcement agency that participates in
             471      the use of the database shall annually pay to the division a fee of $2 per sworn law enforcement
             472      officer who is employed by the agency as of January 1 of that year. The fee shall be deposited
             473      in the account.
             474          (b) On and after January 1, 2013, each law enforcement agency that participates in the
             475      use of the database shall annually pay to the division a fee of $3 per sworn law enforcement
             476      officer who is employed by the agency as of January 1 of that year. The fee shall be deposited
             477      in the account.


             478          (3) The fees under Subsections (1) and (2) shall be paid to the account annually on or
             479      before January 30.
             480          (4) (a) (i) If a law enforcement agency outside Utah requests access to the central
             481      database, the requesting agency shall pay a yearly fee of $750 for the fiscal year beginning July
             482      1, 2006, which shall be deposited in the account.
             483          (ii) If a law enforcement agency outside Utah requests access to the central database,
             484      the requesting agency shall pay a yearly fee of $900 for the fiscal year beginning July 1, 2013,
             485      which shall be deposited in the account.
             486          (b) The board may establish the fee amount for fiscal years beginning on and after July
             487      1, 2007 under Section 63J-1-504 .
             488          Section 12. Section 13-32a-112 is amended to read:
             489           13-32a-112. Secondhand Merchandise Advisory Board -- Membership -- Duties --
             490      Providing training -- Records of compliance -- Training compliance -- Rulemaking.
             491          (1) There is created within the division the Secondhand Merchandise Advisory Board.
             492      The board consists of [11] 13 voting members and one nonvoting member:
             493          (a) one representative of the Utah Chiefs of Police Association;
             494          (b) one representative of the Utah Sheriffs Association;
             495          (c) one representative of the Statewide Association of Prosecutors;
             496          (d) one representative of the Utah Municipal Prosecutors' Association;
             497          [(d)] (e) three representatives from the pawnshop industry, [two] three representatives
             498      from the secondhand merchandise business industry, and one representative from the coin
             499      dealer industry who are all appointed by the director of the Utah Commission on Criminal and
             500      Juvenile Justice and who represent three separate pawnshops, [two] three separate secondhand
             501      merchandise dealers, and one coin dealer, each of which are owned by a separate person or
             502      entity;
             503          [(e)] (f) one law enforcement officer who is appointed by the board members under
             504      Subsections (1)(a) through [(d)] (e);
             505          [(f)] (g) one law enforcement officer whose work regularly involves pawn and


             506      secondhand businesses and who is appointed by the board members under Subsections (1)(a)
             507      through [(d)] (e); [and]
             508          [(g)] (h) one representative from the central database, who is nonvoting.
             509          (2) (a) The board shall elect one voting member as the chair of the board by a majority
             510      of the members present at the board's first meeting each year.
             511          (b) The chair shall preside over the board for a period of one year.
             512          (c) The advisory board shall meet quarterly upon the call of the chair.
             513          (d) A quorum of nine members is required for the board to take action.
             514          (3) (a) The board shall conduct quarterly training sessions regarding compliance with
             515      this chapter and other applicable state laws for any person who owns or is employed by a pawn
             516      or secondhand business subject to this chapter.
             517          (b) Each training session shall provide no fewer than two hours of training.
             518          (4) (a) Each pawn, secondhand, and coin dealer business in operation as of January 1
             519      shall ensure one or more persons employed by the pawn or secondhand business each
             520      participate in no fewer than two hours of compliance training within that year.
             521          (b) This requirement does not limit the number of employees, directors, or officers of a
             522      pawn or secondhand business who attend the compliance training.
             523          (5) The board shall monitor and keep a record of the hours of compliance training
             524      accrued by each pawn or secondhand business.
             525          (6) The board shall provide each pawn or secondhand business with a certificate of
             526      compliance upon completion by an employee of the two hours of compliance training under
             527      Subsection (4).
             528          (7) (a) Each law enforcement agency that has a pawn or secondhand business located
             529      within its jurisdiction shall ensure that at least one of its officers completes two hours of
             530      compliance training yearly.
             531          (b) Subsection (7)(a) does not limit the number of law enforcement officers who attend
             532      the compliance training.
             533          (8) The board may propose to the division administrative rules establishing:


             534          (a) pawn and secondhand business industry standards for best practices;
             535          (b) standardized property descriptions for the database created under this chapter; and
             536          (c) a roster of software programs for pawn and secondhand businesses setting out
             537      minimum basic requirements for functionality.
             538          (9) Pawn and secondhand businesses may file with the board complaints regarding law
             539      enforcement agency practices perceived to be inconsistent with this chapter. The board may
             540      refer the complaints to the Peace Officers Standards and Training Division.
             541          Section 13. Section 13-32a-112.5 is amended to read:
             542           13-32a-112.5. Division may exempt certain businesses by rule -- No local
             543      government enforcement on exempt businesses -- Temporary businesses subject to
             544      chapter.
             545          (1) (a) The division may exempt specific classes of businesses from regulation under
             546      this chapter by rules made under Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             547          (b) The division shall consult with the board in determining which classes of
             548      businesses to exempt under this section.
             549          (2) Businesses the division may exempt are classes of commercial enterprises clearly
             550      defined by administrative rule and that do not involve transactions in property that is
             551      recognized by law enforcement as regularly subject to theft and subsequent efforts to pawn or
             552      sell.
             553          (3) Municipal and county criminal and civil enforcement regarding the provisions of
             554      this chapter may not be imposed on businesses exempted under this section.
             555          (4) Any pawn or secondhand business not exempted by this section and that operates
             556      on a temporary basis or from a location that is not a permanent retail location:
             557          (a) shall comply with the provisions of this chapter; and
             558          (b) is subject to enforcement of the provisions of this chapter.
             559          Section 14. Section 13-32a-115 is enacted to read:
             560          13-32a-115. Investigation phase and victim's responsibilities.
             561          (1) If the property pawned or sold to a pawn or secondhand business is the subject of a


             562      criminal investigation and a hold has been placed on the property under Section 13-32a-109 ,
             563      the original victim shall do the following to establish a claim:
             564          (a) positively identify to law enforcement the item stolen or lost;
             565          (b) if a police report has not already been filed for the original theft or loss of property,
             566      file a police report, and provide for the law enforcement agency information surrounding the
             567      original theft or loss of property; and
             568          (c) give a sworn statement under penalty of law that:
             569          (i) claims ownership of the property;
             570          (ii) references the original theft or loss; and
             571          (iii) identifies the perpetrator if known.
             572          (2) The pawn or secondhand business shall retain possession of any property subject to
             573      a hold until a criminal prosecution is commenced relating to the property for which the hold
             574      was placed unless:
             575          (a) during the course of a criminal investigation the actual physical possession by law
             576      enforcement of an article purchased or pawned is essential for the purpose of fingerprinting the
             577      property, chemical testing of the property, or if the property contains unique or sensitive
             578      personal identifying information; or
             579          (b) an agreement between the original victim and the pawn or secondhand business to
             580      return the property is reached.
             581          (3) (a) Upon the commencement of a criminal prosecution, any article subject to a hold
             582      for investigation under this chapter may be seized by the law enforcement agency which
             583      requested the hold.
             584          (b) Subsequent disposition of the property shall be consistent with Section 77-24-2
             585      regarding property not needed as evidence and this chapter.
             586          (c) If a conflict exists between the provisions of Section 77-24-2 regarding property not
             587      needed as evidence and this chapter, this chapter takes precedence regarding property held by
             588      pawn or secondhand businesses.
             589          (4) At all times during the course of a criminal investigation and subsequent


             590      prosecution, the article subject to a law enforcement hold shall be kept secure by the pawn or
             591      secondhand business subject to the hold unless a pawned or sold article has been seized by the
             592      law enforcement agency pursuant to Section 13-32a-109.5 .
             593          Section 15. Section 13-32a-116 is enacted to read:
             594          13-32a-116. Property disposition -- Property subject to prosecution.
             595          (1) When any property that is pawned or sold to a pawn or secondhand business is the
             596      subject of a criminal proceeding, and has been seized by law enforcement pursuant to Section
             597      13-32a-115 , the prosecuting agency shall notify the seizing agency, the original victim, and the
             598      pawn or secondhand business if it determines the article is no longer needed as evidence
             599      pending resolution of the criminal case.
             600          (2) (a) If the property is no longer needed as evidence, the original victim and the pawn
             601      or secondhand business from which the property was seized may choose to resolve the matter
             602      pursuant to Subsection 13-32a-115 (2)(b) within 10 days of notice being given that the property
             603      is no longer needed.
             604          (b) The original victim shall notify the seizing law enforcement agency and the pawn
             605      or secondhand business of any agreed upon resolution and the seizing agency shall act
             606      accordingly.
             607          (3) (a) If the original victim and the pawn or secondhand business from which the
             608      property was seized do not resolve the matter within the 10 days under Subsection (2), the
             609      original victim or the pawn or secondhand business shall notify the prosecuting agency or law
             610      enforcement agency in possession of the property that the disputed claim has not been resolved.
             611          (b) (i) Upon receipt of written notice from the pawn or secondhand business or the
             612      original victim that the parties are unable to resolve the disposition of the property as provided,
             613      the prosecuting agency shall submit a motion to the court to schedule a property disposition
             614      hearing within 45 days after receipt of the notice.
             615          (ii) The prosecuting agency shall provide notice of the hearing to the pawn or
             616      secondhand business, the original victim, and any named defendant in the pending criminal
             617      case to the last known address or to counsel of record.


             618          (iii) Notice shall be by certified mail or registered mail. Another form of notice may be
             619      used if agreed upon by the parties.
             620          (c) The hearing under Subsection (3)(b) may be combined with a preliminary
             621      examination or other hearing, in the court's discretion.
             622          (4) At the seized property disposition hearing the court shall take into consideration:
             623          (a) the evidentiary value of the property and the need for its use at trial;
             624          (b) whether alternative evidence, such as photographs, records, or serial numbers,
             625      make retention of the property unnecessary;
             626          (c) the proof of ownership of the property and compliance with Subsection
             627      13-32a-115 (1) by the original victim;
             628          (d) whether retention of the property would create any undue hardship to the original
             629      victim; and
             630          (e) compliance by the pawn or secondhand business with the requirements of this
             631      chapter, and potential financial loss to the business if the property were returned to the original
             632      victim.
             633          (5) Upon conclusion of the property disposition hearing the court may:
             634          (a) order the return of the evidence to the original victim or to the pawn or secondhand
             635      business as it determines appropriate; and
             636          (b) make an initial finding of restitution for the original victim or the pawn or
             637      secondhand business pending resolution of the criminal case.
             638          (6) The court's determination of possession or restitution under Subsection (5) is a
             639      continuing order subject to change or modification until the final resolution of the case.
             640          Section 16. Section 13-32a-117 is enacted to read:
             641          13-32a-117. Property disposition if no criminal charges filed -- Administrative
             642      hearing.
             643          (1) The original victim or the pawn or secondhand business may request an
             644      administrative property disposition hearing with the Division of Consumer Protection if:
             645          (a) more than 30 days have passed since:


             646          (i) the law enforcement agency placed a hold on the property; or
             647          (ii) the property was seized by the law enforcement agency; and
             648          (b) an agreement pursuant to Subsection 13-32a-115 (2)(b) has not been reached.
             649          (2) The original victim shall provide to the Division of Consumer Protection at the
             650      hearing under this section a copy of the sworn statement taken pursuant to Section 13-32a-115
             651      and the case number assigned by the law enforcement agency.
             652          (3) (a) The Division of Consumer Protection shall notify the law enforcement agency
             653      in writing of the request for a property disposition hearing.
             654          (b) The law enforcement agency shall forward the notice to the prosecution agency
             655      having jurisdiction over the case involving the property.
             656          (c) (i) The prosecution agency shall, within five business days of receiving the notice,
             657      make an initial determination pursuant to Section 77-24-2 and this chapter of whether
             658      continued hold or seizure regarding the property as evidence in a criminal trial is necessary.
             659          (ii) If the prosecuting agency determines the property is no longer needed as evidence,
             660      the law enforcement agency shall notify in writing the pawn or secondhand business and the
             661      original victim of the prosecuting agency's determination as soon as reasonably possible.
             662          (4) (a) Within 30 days after receiving the request and notification from law
             663      enforcement that the property is not needed as evidence pursuant to Section 77-24-2 and this
             664      chapter, the Division of Consumer Protection shall schedule an adjudicative hearing in
             665      accordance with Title 63G, Chapter 4, Administrative Procedures Act, to determine ownership
             666      of the claimed property. The division shall provide written notice of the hearing to the pawn or
             667      secondhand business and the original victim.
             668          (b) The division shall conduct the hearing to determine disposition of the claimed
             669      seized property, taking into consideration:
             670          (i) the proof of ownership of the property and compliance with Subsection
             671      13-32a-115 (1) by the original victim;
             672          (ii) the claim of ownership by the pawn or secondhand business and the potential
             673      financial loss to the business; and


             674          (iii) compliance by the pawn or secondhand business with the requirements of this
             675      chapter.
             676          (c) If the division determines that the property should be released to the pawn or
             677      secondhand business, the original victim retains a right of first refusal over the property for 15
             678      days and may purchase the property at the amount financed or paid by the pawn or secondhand
             679      business.
             680          (d) The party to whom the division determines the property is to be released shall
             681      maintain possession of the property for the duration of any time period regarding any
             682      applicable right of appeal.
             683          Section 17. Section 77-24-2 is amended to read:
             684           77-24-2. Property not needed as evidence -- Return procedure.
             685          (1) Property which is not needed as evidence shall be returned to the owner, if the
             686      owner may lawfully possess it, or disposed of in accordance with this chapter.
             687          (2) (a) When the peace officer or the officer's employing agency becomes aware that
             688      the property is not needed as evidence, the officer or the agency shall inform the prosecuting
             689      attorney that the property is not needed and provide a description and details of ownership.
             690          (b) When the prosecuting attorney is informed or otherwise becomes aware that the
             691      property is not needed as evidence, the [prosecutor] prosecuting attorney shall authorize release
             692      of the property to the owner.
             693          (c) When the peace officer or the officer's employing agency becomes aware that any
             694      property is to be returned to its owner, the officer or employing agency shall exercise due
             695      diligence in attempting to notify the rightful owner that the property is to be returned.
             696          (d) If the property is a weapon, the peace officer shall dispose of it in accordance with
             697      Section 76-10-525 .
             698          (e) (i) Upon proof of ownership and of lawfulness of possession satisfactory to the
             699      evidence custodian, the custodian shall release the property to the owner.
             700          (ii) If the evidence custodian is unable to locate an owner of the property or if the
             701      owner is not entitled to lawfully possess the property, the agency having custody of the


             702      property shall dispose of the property in accordance with Section 77-24-4 .
             703          (3) (a) When property is received in evidence, the clerk of the court last receiving it
             704      shall retain the property or the clerk shall return the property to the custody of the peace officer.
             705      The property shall be retained by the clerk or the officer until all direct appeals and retrials are
             706      final, at which time the property shall be returned to the owner in accordance with this chapter.
             707      If the property was seized for forfeiture, it shall be held and disposed of as provided in Title 24,
             708      Chapter 1, Utah Uniform Forfeiture Procedures Act.
             709          (b) If the prosecuting attorney considers it necessary to retain control over the
             710      evidence, in anticipation of possible collateral attacks upon the judgment or for use in a
             711      potential prosecution, [he] the prosecuting attorney may decline to authorize return of the
             712      property to the owner.
             713          (4) If a conflict exists between the provisions of this section and Title 13, Chapter 32a,
             714      Pawnshop and Secondhand Merchandise Transaction Information Act, Title 13, Chapter 32a
             715      governs regarding disposition of property held by a pawn or secondhand business in the course
             716      of its business.
             717          Section 18. Repealer.
             718          This bill repeals:
             719          Section 13-32a-109.8, Pawned or sold property subject to law enforcement
             720      investigation.
             721          Section 19. Coordinating H.B. 175 with H.B. 239 -- Superseding amendments.
             722          If this H.B. 175 and H.B. 239, Pawnshop Record Amendments, both pass and become
             723      law, the Legislature intends that the Office of Legislative Research and General Counsel, in
             724      preparing the Utah Code database for publication, modify Subsection 13-32a-106.5 (1)(c) to
             725      read:
             726          "(c) responding to an inquiry from an insurance company investigating a claim for
             727      physical loss of described property by searching the database to determine if property matching
             728      the description has been delivered to a pawnbroker or secondhand business by another person
             729      in a pawn or purchase transaction and if so, obtaining from the database:".


             730     


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