H.B. 394 Pawnshop and Secondhand Merchandise Amendments

H.B. 394

1     
PAWNSHOP AND SECONDHAND MERCHANDISE

2     
AMENDMENTS

3     
2019 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Eric K. Hutchings

6     
Senate Sponsor: Curtis S. Bramble

7     

8     LONG TITLE
9     General Description:
10          This bill addresses pawnshop and secondhand merchandise provisions.
11     Highlighted Provisions:
12          This bill:
13          ▸     modifies, deletes, and adds definitions;
14          ▸     makes consistent references to property and other terminology;
15          ▸     addresses coin dealers, including ticket requirements;
16          ▸     requires tickets be maintained by pawn or secondhand businesses with specified
17     content;
18          ▸     modifies provisions related to a central database;
19          ▸     repeals outdated language;
20          ▸     addresses retention and inspection of records;
21          ▸     outlines the holding period for property;
22          ▸     addresses seizure of property;
23          ▸     provides for administrative penalties;
24          ▸     addresses fees;
25          ▸     changes make up and duties of Pawnshop and Secondhand Merchandise Advisory
26     Board;
27          ▸     addresses training;
28          ▸     repeals language regarding certain exempt businesses;
29          ▸     addresses the Pawnbroker and Secondhand Merchandise Operations Restricted
30     Account;
31          ▸     addresses preemption of local ordinances;
32          ▸     provides for use of property for forensic testing;
33          ▸     addresses disposition of property;
34          ▸     repeals provisions related to property disposition if no criminal charges are filed;
35          ▸     amends provisions related to receiving stolen property and duties of pawnbrokers,
36     secondhand businesses, and coin dealers; and
37          ▸     makes technical and conforming changes.
38     Money Appropriated in this Bill:
39          None
40     Other Special Clauses:
41          None
42     Utah Code Sections Affected:
43     AMENDS:
44          13-32a-102, as last amended by Laws of Utah 2018, Chapter 238
45          13-32a-103, as last amended by Laws of Utah 2007, Chapter 352
46          13-32a-103.5, as last amended by Laws of Utah 2012, Chapter 399
47          13-32a-104, as last amended by Laws of Utah 2018, Chapter 238
48          13-32a-104.5, as enacted by Laws of Utah 2009, Chapter 272
49          13-32a-105, as last amended by Laws of Utah 2009, Chapter 272
50          13-32a-106, as last amended by Laws of Utah 2012, Chapter 284
51          13-32a-106.5, as last amended by Laws of Utah 2012, Chapters 170, 284 and last
52     amended by Coordination Clause, Laws of Utah 2012, Chapter 284
53          13-32a-108, as last amended by Laws of Utah 2012, Chapter 284
54          13-32a-109, as last amended by Laws of Utah 2016, Chapter 421
55          13-32a-109.5, as last amended by Laws of Utah 2016, Chapter 421
56          13-32a-110, as last amended by Laws of Utah 2012, Chapter 284
57          13-32a-110.5, as enacted by Laws of Utah 2012, Chapter 284
58          13-32a-111, as last amended by Laws of Utah 2012, Chapter 284
59          13-32a-112, as last amended by Laws of Utah 2016, Chapter 421
60          13-32a-112.5, as last amended by Laws of Utah 2012, Chapter 284
61          13-32a-113, as last amended by Laws of Utah 2009, Chapter 272
62          13-32a-114, as last amended by Laws of Utah 2007, Chapter 352
63          13-32a-115, as last amended by Laws of Utah 2016, Chapter 421
64          13-32a-116, as last amended by Laws of Utah 2016, Chapter 421
65          13-32a-116.5, as enacted by Laws of Utah 2016, Chapter 421
66          76-6-408, as last amended by Laws of Utah 2013, Chapter 187
67          76-6-412, as last amended by Laws of Utah 2018, Chapter 265
68     ENACTS:
69          13-32a-103.1, Utah Code Annotated 1953
70          13-32a-112.1, Utah Code Annotated 1953
71     REPEALS:
72          13-32a-107, as last amended by Laws of Utah 2010, Chapter 167
73          13-32a-117, as last amended by Laws of Utah 2014, Chapter 189
74     

75     Be it enacted by the Legislature of the state of Utah:
76          Section 1. Section 13-32a-102 is amended to read:
77          13-32a-102. Definitions.
78          As used in this chapter:
79          (1) "Account" means the Pawnbroker and Secondhand Merchandise Operations
80     Restricted Account created in Section 13-32a-113.
81          (2) "Antique item" means an item:
82          (a) that is generally older than 25 years;
83          (b) whose value is based on age, rarity, condition, craftsmanship, or collectability;
84          (c) that is furniture or other decorative objects produced in a previous time period, as
85     distinguished from new items of a similar nature; and
86          (d) obtained from auctions, estate sales, other antique shops, and individuals.
87          (3) "Antique shop" means a business operating at an established location [and that
88     offers for] that deals primarily in the purchase, exchange, or sale of antique items.
89          (4) "Board" means the Pawnshop and Secondhand Merchandise Advisory Board
90     created by this chapter.
91          (5) "Central database" or "database" means the electronic database created and
92     operated under Section 13-32a-105.
93          (6) "Children's product" means a used item that is for the exclusive use of children, or
94     for the care of children, including clothing and toys.
95          (7) "Children's product resale business" means a business operating at a commercial
96     location and primarily selling children's products.
97          (8) "Coin" means a piece of currency, usually metallic and usually in the shape of a
98     disc that is:
99          (a) stamped metal, and issued by a government as monetary currency; or
100          (b) (i) worth more than its current value as currency; and
101          (ii) worth more than its metal content value.
102          (9) "Coin dealer" means a person [or business] whose sole business activity is the
103     selling and purchasing of [coins] numismatic items and precious metals.
104          (10) "Collectible paper money" means paper currency that is no longer in circulation
105     and is sold and purchased for the paper currency's collectible value.
106          [(10)] (11) (a) "Commercial grade precious metals" or "precious metals" means ingots,
107     monetized bullion, art bars, medallions, medals, tokens, and currency that are marked by the
108     refiner or fabricator indicating their fineness and include:
109          [(a)] (i) .99 fine or finer ingots of gold, silver, platinum, palladium, or other precious
110     metals; or
111          [(b)] (ii) .925 fine sterling silver ingots, art bars, and medallions.
112          (b) "Commercial grade precious metals" or "precious metals" does not include jewelry.
113          (12) "Consignment shop" means a business, operating at an established location:
114          (a) that deals primarily in the offering for sale property owned by a third party; and
115          (b) where the owner of the property only receives consideration upon the sale of the
116     property by the business.
117          [(11)] (13) "Division" means the Division of Consumer Protection created in Chapter
118     1, Department of Commerce.
119          [(12) "Identification" means a valid United States federal or state-issued photo personal
120     identification, including a United States passport, a United States passport card, United States
121     military personal identification, and a driver license.]
122          (14) "Exonumia" means a privately issued token for trade that is sold and purchased
123     for the token's collectible value.
124          (15) "Gift card" means a record that:
125          (a) is usable at:
126          (i) a single merchant; or
127          (ii) a specified group of merchants;
128          (b) is prefunded before the record is used; and
129          (c) can be used for the purchase of goods or services.
130          (16) "Identification" means any of the following non-expired forms of identification
131     issued by a state government, the United States government, or a federally recognized Indian
132     tribe, if the identification includes a unique number, photograph of the bearer, and date of birth:
133          (a) a United States Passport or United States Passport Card;
134          (b) a state-issued driver license;
135          (c) a state-issued identification card;
136          (d) a state-issued concealed carry permit;
137          (e) a United States military identification;
138          (f) a United States resident alien card;
139          (g) an identification of a federally recognized Indian tribe; or
140          (h) notwithstanding Section 53-3-207, a Utah driving privilege card.
141          (17) "Indicia of being new" means property that:
142          (a) is represented by the individual pawning or selling the property as new;
143          (b) is unopened in the original packaging; or
144          (c) possesses other distinguishing characteristics that indicate the property is new.
145          [(13)] (18) "Local law enforcement agency" means the law enforcement agency that
146     has direct responsibility for ensuring compliance with central database reporting requirements
147     for the jurisdiction where the [pawnshop] pawn or secondhand business is located.
148          [(14) "Misappropriated" means stolen, embezzled, converted, obtained by theft, or
149     otherwise appropriated without authority of the lawful owner.]
150          (19) "Numismatic item" means a coin, collectible paper money, or exonumia.
151          [(15)] (20) "Original victim" means a victim who is not a party to the pawn or sale
152     transaction and includes:
153          (a) an authorized representative designated in writing by the original victim; and
154          (b) an insurer who has indemnified the original victim for the loss of the described
155     property.
156          [(16)] (21) "Pawn [and] or secondhand business" means [any] a business operated by a
157     pawnbroker or secondhand merchandise dealer, or the owner or operator of the business.
158          [(17) "Pawnbroker" means a person whose business engages in the following
159     activities:]
160          [(a) loans money on one or more deposits of personal property;]
161          [(b) deals in the purchase, exchange, or possession of personal property on condition of
162     selling the same property back again to the pledgor or depositor;]
163          [(c) loans or advances money on personal property by taking chattel mortgage security
164     on the property and takes or receives the personal property into his possession, and who sells
165     the unredeemed pledges;]
166          [(d) deals in the purchase, exchange, or sale of used or secondhand merchandise or
167     personal property; or]
168          [(e) engages in a licensed business enterprise as a pawnshop.]
169          [(18) "Pawnshop" means the physical location or premises where a pawnbroker
170     conducts business.]
171          [(19) "Pawn ticket" means a document upon which information regarding a pawn
172     transaction is entered when the pawn transaction is made.]
173          [(20)] (22) "Pawn transaction" means:
174          (a) an extension of credit in which an individual delivers property to a pawnbroker for
175     an advance of money and retains the right to redeem the property for the redemption price
176     within a fixed period of time[.];
177          (b) a loan of money on one or more deposits of personal property;
178          (c) the purchase, exchange, or possession of personal property on condition of selling
179     the same property back again to the pledgor or depositor; or
180          (d) a loan or advance of money on personal property by the pawnbroker taking chattel
181     mortgage security on the personal property, taking or receiving the personal property into the
182     pawnbroker's possession, and selling the unredeemed pledges.
183          (23) "Pawnbroker" means a person whose business:
184          (a) engages in a pawn transaction; or
185          (b) holds itself out as being in the business of a pawnbroker or pawnshop, regardless of
186     whether the person or business enters into pawn transactions or secondhand merchandise
187     transactions.
188          (24) "Pawnshop" means the physical location or premises where a pawnbroker
189     conducts business.
190          [(21)] (25) "Pledgor" means [a person] an individual who conducts a pawn transaction
191     with a pawnshop.
192          [(22)] (26) "Property" means [any] an article of tangible personal property, numismatic
193     item, precious metal, gift card, transaction card, or other physical or digital card or certificate
194     evidencing store credit.
195          [(23) "Register" means the record of information required under this chapter to be
196     maintained by pawn and secondhand businesses. The register is an electronic record that is in a
197     format that is compatible with the central database.]
198          [(24)] (27) "Retail media item" means recorded music, a movie, or a video game that is
199     produced and distributed in hard copy format for retail sale.
200          [(25)] (28) "Scrap jewelry" means any item purchased solely:
201          (a) for its gold, silver, or platinum content; and
202          (b) for the purpose of reuse of the metal content.
203          [(26)] (29) (a) "Secondhand merchandise dealer" means [an owner or operator of a] a
204     person whose business [that]:
205          [(i) deals in the purchase, exchange, or sale of used or secondhand merchandise or
206     personal property; and]
207          [(ii) does not function as a pawnbroker.]
208          (i) engages in a secondhand merchandise transaction; and
209          (ii) does not engage in a pawn transaction.
210          (b) "Secondhand merchandise dealer" includes a coin dealer.
211          [(b)] (c) "Secondhand merchandise dealer" does not include:
212          (i) [the owner or operator of] an antique shop when dealing in antique items;
213          [(ii) any class of businesses exempt by administrative rule under Section
214     13-32a-112.5;]
215          [(iii) any] (ii) a person [or entity] who operates an auction [houses] house, flea
216     [markets] market, or vehicle, vessel, and outboard motor dealers as defined in Section
217     41-1a-102;
218          [(iv)] (iii) the sale of secondhand goods at events commonly known as "garage sales,"
219     "yard sales," [or] "estate sales," "storage unit sales," or "storage unit auctions";
220          [(v)] (iv) the sale or receipt of secondhand books, magazines, [or] post cards[;], or
221     nonelectronic:
222          (A) card games;
223          (B) table-top games; or
224          (C) magic tricks;
225          [(vi)] (v) the sale or receipt of used merchandise donated to recognized nonprofit,
226     religious, or charitable organizations or any school-sponsored association, and for which no
227     compensation is paid;
228          [(vii)] (vi) the sale or receipt of secondhand clothing [and], shoes, furniture, or
229     appliances;
230          [(viii)] (vii) any person offering the person's own personal property for sale, purchase,
231     consignment, or trade via the Internet;
232          [(ix)] (viii) any person offering the personal property of others for sale, purchase,
233     consignment, or trade via the Internet, when that person [or entity] does not have, and is not
234     required to have, a local business or occupational license or other authorization for this activity;
235          [(x)] (ix) any owner or operator of a retail business that:
236          (A) receives used merchandise as a trade-in for similar new merchandise ; or
237           (B) receives used retail media items as a trade-in for similar new or used retail media
238     items;
239          [(xi)] (x) an owner or operator of a business that contracts with other persons [or
240     entities] to offer those persons' secondhand goods for sale, purchase, consignment, or trade via
241     the Internet;
242          [(xii)] (xi) any dealer as defined in Section 76-6-1402, which concerns scrap metal and
243     secondary metals;
244          [(xiii)] (xii) the purchase of items in bulk that are:
245          (A) sold at wholesale in bulk packaging;
246          (B) sold by a person licensed to conduct business in Utah; and
247          (C) regularly sold in bulk quantities as a recognized form of sale; [or]
248          [(xiv)] (xiii) the owner or operator of a children's product resale business[.]; or
249          (xiv) a consignment shop when dealing in consigned property.
250          (30) "Secondhand merchandise transaction" means the purchase or exchange of used or
251     secondhand property.
252          (31) "Ticket" means a document upon which information is entered when a pawn
253     transaction or secondhand merchandise transaction is made.
254          (32) "Transaction card" means a card, code, or other means of access to a value with
255     the retail business issued to a person that allows the person to obtain, purchase, or receive any
256     of the following:
257          (a) goods;
258          (b) services;
259          (c) money; or
260          (d) anything else of value.
261          Section 2. Section 13-32a-103 is amended to read:
262          13-32a-103. Compliance with criminal code and this chapter.
263          [Every] A pawn or secondhand business shall, regarding [each article of] property [a
264     person] an individual pawns or sells, comply with the requirements of this chapter and the
265     requirements of [Subsections] Subsection 76-6-408[(2)](3)(c)[(i) through (iii)] regarding the
266     [person's] individual's:
267          (1) legal right to the property;
268          (2) fingerprint; and
269          (3) [picture] identification.
270          Section 3. Section 13-32a-103.1 is enacted to read:
271          13-32a-103.1. Transaction or gift cards.
272          (1) A retail business engaging in a transaction involving a transaction card or gift card
273     issued by that retail business and that bears the branding of that retail business is not subject to
274     this chapter.
275          (2) A pawn or secondhand business may not purchase or pawn a gift card or transaction
276     card.
277          (3) This chapter does not prohibit a pawn or secondhand business from issuing or
278     accepting as payment a gift card that:
279          (a) is issued solely by the pawn or secondhand business; and
280          (b) bears the brand or name of the pawn or secondhand business.
281          Section 4. Section 13-32a-103.5 is amended to read:
282          13-32a-103.5. Specie legal tender exempt from chapter.
283          [(1) This chapter applies to coin dealers, except:]
284          [(a) where provisions otherwise specifically address coin dealers; or]
285          [(b) as provided in Subsection (2).]
286          [(2)] Specie legal tender as defined in Section 59-1-1501.1 that is used as legal tender
287     is exempt from this chapter.
288          Section 5. Section 13-32a-104 is amended to read:
289          13-32a-104. Tickets required to be maintained -- Contents -- Identification of
290     items -- Prohibition against pawning or selling certain property.
291          (1) A [pawnbroker or secondhand merchandise dealer] pawn or secondhand business
292     shall keep a [register of each article of] ticket for property a person pawns or sells to the
293     [pawnbroker or secondhand merchandise dealer, except as provided in Subsection
294     13-32a-102(26)(b)] pawn or secondhand business. A pawn [and] or secondhand business
295     [owner or operator, or the owner's or operator's employee,] shall [enter] document on the ticket
296     the following information regarding [every article pawned or sold to the owner or employee]
297     the property:
298          (a) the date and time of the transaction;
299          (b) whether the transaction is a pawn or purchase;
300          [(b)] (c) the [pawn transaction] ticket number[, if the article is pawned];
301          [(c)] (d) the date by which the [article] property must be redeemed, if the property is
302     pawned;
303          [(d)] (e) the following information regarding the [person] individual who pawns or
304     sells the [article] property:
305          (i) the [person's] individual's full name[,] and date of birth as they appear on the
306     individual's identification and the individual's residence address[, and date of birth] and
307     telephone number;
308          (ii) [the number of the driver license or other form of positive identification presented
309     by the person, and notations of discrepancies if the person's physical description, including
310     gender, height, weight, race, age, hair color, and eye color, does not correspond with
311     identification provided by the person] the unique number and type of identification presented to
312     the pawn or secondhand business;
313          (iii) the [person's] individual's signature; and
314          (iv) subject to Subsection (6), a legible fingerprint of the [person's] individual's right
315     index finger, or if the right index finger cannot be fingerprinted, a legible fingerprint of the
316     [person] individual with a [written] notation identifying the fingerprint and the reason why the
317     index finger's print was unavailable;
318          [(e)] (f) the amount loaned on [or], paid for [the article], or [the article for which it was
319     traded] value for trade-in of each article of property;
320          [(f) the identification of the pawn or secondhand business owner or the employee,
321     whoever is making the register entry; and]
322          (g) the full name of the individual conducting the pawn transaction or secondhand
323     merchandise transaction on behalf of the pawn or secondhand business or the initials or a
324     unique identifying number of the individual, if the pawn or secondhand business maintains a
325     record of the initials or unique identifying number of the individual; and
326          [(g)] (h) an accurate description of [the] each article of property, [including] with
327     available identifying marks [such as], including:
328          (i) names, brand names, numbers, serial numbers, model numbers, color,
329     manufacturers' names, and size;
330          (ii) metallic composition, and any jewels, stones, or glass;
331          (iii) any other marks of identification or indicia of ownership on the [article] property;
332          (iv) the weight of the [article] property, if the payment is based on weight;
333          (v) any other unique identifying feature;
334          (vi) gold content, if indicated; [and] or
335          (vii) if multiple articles of property of a similar nature are delivered together in one
336     transaction and the articles of property do not bear serial or model numbers and do not include
337     precious metals or gemstones, such as musical or video recordings, books, or hand tools, the
338     description of the articles is adequate if it includes the quantity of the articles and a description
339     of the type of articles delivered.
340          (2) (a) A pawn or secondhand business may not accept [any personal] property if, upon
341     inspection, it is apparent that [serial numbers, model names, or identifying characteristics have
342     been intentionally defaced on that article of property.]:
343          (i) a serial number or another form of indicia of ownership has been removed, altered,
344     defaced, or obliterated;
345          (ii) the property is not a numismatic item and has indicia of being new, but is not
346     accompanied by a written receipt or other satisfactory proof of ownership other than the seller's
347     own statement; or
348          (iii) except as provided in Subsection 13-32a-103.1(3), the property is a gift card,
349     transaction card, or other physical or digital card or certificate evidencing store credit.
350          (b) A pawn or secondhand business is not subject to Subsection (2)(a)(ii) if the pawn or
351     secondhand business is the original seller of the property and is accepting a return of the
352     property as provided by the pawn or secondhand business' established return policy.
353          (c) Property is presumed to have had indicia of being new at the time of a transaction if
354     the property is subsequently advertised by the pawn or secondhand business as being new.
355          (3) (a) [A person] An individual may not pawn or sell any property to a business
356     regulated under this chapter if the property is subject to being turned over to a law enforcement
357     agency in accordance with Title 77, Chapter 24a, Lost or Mislaid Personal Property.
358          (b) If an individual attempts to sell or pawn property to a business regulated under this
359     chapter and the employee or owner of the business knows or has reason to know that the
360     property is subject to Title 77, Chapter 24a, Lost or Mislaid Personal Property, the employee or
361     owner shall advise the individual of the requirements of Title 77, Chapter 24a, Lost or Mislaid
362     Personal Property, and may not receive the property in pawn or sale.
363          (4) A coin dealer is subject to Section 13-32a-104.5 and not subject to this section.
364          [(4)] (5) A violation of this section is a class B misdemeanor and is also subject to civil
365     penalties under Section 13-32a-110.
366          (6) (a) On and after January 1, 2020:
367          (i) a pawn or secondhand business shall obtain an electronic legible fingerprint of the
368     individual's right index finger that can be submitted to the central database at the same time the
369     other information is submitted under this section, or if the right index finger cannot be
370     fingerprinted, an electronic legible fingerprint of the individual with a notation on the ticket
371     identifying the fingerprint and the reason why a right index fingerprint is unavailable; and
372          (ii) the electronic fingerprint is not required on the ticket.
373          (b) On and after January 1, 2020, a pawn or secondhand business shall submit an
374     electronic legible fingerprint obtained under Subsection (6)(a) to the central database.
375          (7) (a) As used in this Subsection (7), "jewelry" means:
376          (i) any jewelry purchased by the pawn or secondhand business, including scrap jewelry
377     and watches; or
378          (ii) any jewelry that the pawn or secondhand business is allowed to sell under
379     Subsection 13-32a-109(1), including scrap jewelry and watches.
380          (b) On and after January 1, 2020, a pawn or secondhand business shall obtain:
381          (i) a color digital photograph clearly and accurately depicting:
382          (A) each item of jewelry; and
383          (B) if an item of jewelry has one or more engravings, an additional color digital
384     photograph specifically depicting any engraving; and
385          (ii) a color digital photograph of an item that bears an identifying mark, including:
386          (A) a serial number, engraving, owner label, or similar identifying mark; and
387          (B) an additional photograph that clearly depicts the identifying mark described in
388     Subsection (7)(b)(ii)(A).
389          Section 6. Section 13-32a-104.5 is amended to read:
390          13-32a-104.5. Database information from coin dealers -- New and prior
391     customers.
392          (1) A coin dealer shall maintain [in a register and provide for the database the
393     information] a ticket under this section for each secondhand merchandise transaction of a
394     [coin] numismatic item or precious metal with [a person] an individual with whom the coin
395     dealer has not previously conducted a secondhand merchandise transaction.
396          (2) For [transactions] a secondhand merchandise transaction under Subsection (1), the
397     coin dealer or the coin dealer's employee shall [enter] document the following information [in]
398     on the [register] ticket regarding every [coin] numismatic item or precious metal transaction:
399          (a) the date and time of the transaction;
400          (b) the [receipt] ticket number;
401          (c) the following information regarding the [person] individual who sells the [coin]
402     numismatic item or precious metal:
403          (i) the [person's] individual's full name[, residence address,] and date of birth as they
404     appear on the individual's identification and the individual's residence address and telephone
405     number;
406          (ii) [the number of the driver license or other form of positive identification presented
407     by the person, and notations of discrepancies if the person's physical description, including
408     gender, height, weight, race, age, hair color, and eye color, does not correspond with
409     identification provided by the person] the unique number and type of identification presented to
410     the coin dealer;
411          (iii) the [person's] individual's signature; and
412          (iv) subject to Subsection (6), a legible fingerprint of the [person's] individual's right
413     [thumb] index finger, or if the right [thumb] index finger cannot be fingerprinted, a legible
414     fingerprint of the [person] individual with a [written] notation identifying the fingerprint and
415     the reason why [the thumb print was] a right index fingerprint is unavailable;
416          (d) the amount paid for [the article, or the article for which it was traded] or trade-in
417     value of each numismatic item or precious metal;
418          (e) [the identification of the coin dealer or the employee who is conducting the
419     transaction] the full name of the individual conducting the transaction on behalf of the pawn or
420     secondhand business or the initials or unique identifying number, if the coin dealer maintains a
421     record of the initials or unique identifying number of the individual; and
422          (f) an accurate description of [the coin] each numismatic item or precious metal,
423     [including] with available identifying marks [such as], including:
424          (i) type and name of [coin] numismatic item or type and content of precious metal;
425          (ii) metallic composition, and any jewels, stones, or glass;
426          (iii) any other marks of identification or indicia of ownership on the article;
427          (iv) the weight of the article, if the payment is based on weight;
428          (v) any other unique identifying feature; and
429          (vi) metallic content.
430          (3) (a) If multiple [coins] numismatic items or precious metals of the same type in an
431     amount that would make reporting of each item unreasonably difficult are part of a single sale
432     transaction, [a general description of the items and a photograph of the items, which shall be
433     stored by the coin dealer with a copy of the invoice of the transaction for three years from the
434     date of the transaction.] a coin dealer shall document the property as a grouping.
435          (b) The description for a grouping described in Subsection (3)(a) must be an accurate
436     description, with available identifying marks, including:
437          (i) type and name of numismatic items or type and content of precious metal;
438          (ii) metallic composition, and any jewels, stones, or glass;
439          (iii) any other marks of identification or indicia of ownership on the article;
440          (iv) the weight of the articles, if the payment is based on the weight;
441          (v) any other unique identifying features; and
442          (vi) metallic content.
443          (4) If the [person] individual selling a [coin] numismatic item or precious metal to the
444     coin dealer has an established previous transaction history with the coin dealer, the coin dealer
445     or the coin dealer's employee shall [enter] document the following information [in] on the
446     [register] ticket:
447          (a) the date and time of the transaction and the ticket number;
448          (b) indication that the coin dealer has conducted business with the seller previously;
449          (c) [the identification of the coin dealer or the employee who is conducting the
450     transaction] the full name of the individual conducting the transaction on behalf of the pawn or
451     secondhand business or the initials or unique identifying number, if the coin dealer maintains a
452     record of the initials or unique identifying number of the individual;
453          (d) the initials of the seller's legal name, including any middle name;
454          (e) form of identification presented by the seller at the time of sale;
455          (f) the last four digits of the unique identifying number on the form of identification;
456     [and]
457          (g) the individual's signature;
458          (h) the amount paid for or trade-in value of each numismatic item or precious metal;
459     and
460          [(g)] (i) the identifying information under Subsection (2)(f) and under Subsection (3) as
461     applicable.
462          (5) A coin dealer may not accept any [coin] numismatic item or precious metal if, upon
463     inspection, it is apparent that serial numbers or identifying characteristics have been
464     intentionally defaced on that [coin] numismatic item or precious metal.
465          (6) (a) On and after January 1, 2020:
466          (i) for a secondhand merchandise transaction described in Subsection (1), a coin dealer
467     shall obtain an electronic legible fingerprint of the individual's right index finger that can be
468     submitted to the central database at the same time the other information is submitted under this
469     section, or if the right index finger cannot be fingerprinted, an electronic legible fingerprint of
470     the individual with a notation on the ticket identifying the fingerprint and the reason why a
471     right index fingerprint is unavailable; and
472          (ii) the electronic fingerprint is not required on the ticket.
473          (b) On and after January 1, 2020, a pawn or secondhand business shall submit an
474     electronic legible fingerprint obtained under Subsection (6)(a) to the central database.
475          Section 7. Section 13-32a-105 is amended to read:
476          13-32a-105. Central database.
477          (1) [There] In accordance with this section, there is created under this section a central
478     database as a statewide repository for [all] information that pawn [and] or secondhand
479     businesses [and coin dealers] are required to submit in accordance with this chapter and for the
480     use of [all] participating law enforcement agencies [whose jurisdictions include one or more
481     pawn or secondhand businesses] that meet the requirements of Section 13-32a-111.
482          [(2) The Division of Purchasing and General Services created in Title 63A, Chapter 2,
483     Division of Purchasing and General Services, shall:]
484          [(a) meet with the board to determine the required elements of the database; and]
485          [(b) conduct a statewide request for proposal for the creation of and maintenance of the
486     central database.]
487          (2) The division shall:
488          (a) establish and operate the central database; or
489          (b) contract with a third party to establish and operate the central database in
490     accordance with Title 63G, Chapter 6a, Utah Procurement Code.
491          (3) Funding for the creation and operation of the central database shall be from the
492     account.
493          (4) (a) [Any] An entity [submitting a bid to create, maintain, and operate the] that
494     operates the central database [pursuant to the request for proposal conducted by the Division of
495     Purchasing and General Services] may not hold any financial or operating interest in [any
496     pawnshop] a pawn or secondhand business in any state.
497          (b) The [Division of Purchasing and General Services, in conjunction with the
498     Pawnshop and Secondhand Merchandise Advisory Board,] division shall verify before a bid is
499     awarded that the selected entity meets the requirements of Subsection (4)(a).
500          (c) If any entity is awarded a bid under this Subsection (4) and is later found to hold
501     any interest in violation of Subsection (4)(a), the award is subject to being opened again for
502     request for proposal.
503          (5) (a) Beginning January 1, 2020, upon a query by a pawnbroker, the central database
504     shall provide notification of the volume of business an individual seeking to enter into a
505     transaction with the pawnbroker has engaged in with any pawnbroker regulated by this chapter
506     within the previous 30 days based on the records in the central database at the time of the
507     query.
508          [(5)] (b) Information entered in the central database shall be retained for five years and
509     shall then be deleted.
510          Section 8. Section 13-32a-106 is amended to read:
511          13-32a-106. Transaction information provided to the central database --
512     Protected information.
513          (1) (a) [The] A pawn or secondhand business shall transmit electronically in a
514     compatible format information required to be recorded under Sections 13-32a-103 [and],
515     13-32a-104, and 13-32a-104.5 that is capable of being transmitted electronically [shall be
516     transmitted electronically] to the central database [on the next business day following] within
517     24 hours after entering into the transaction.
518          (b) The division may specify by rule, made in accordance with Title 63G, Chapter 3,
519     Utah Administrative Rulemaking Act, the information capable of being transmitted
520     electronically under Subsection (1)(a).
521          (2) [The pawnbroker] A pawn or secondhand business shall maintain [all pawn] tickets
522     generated by the [pawnshop] pawn or secondhand business and shall maintain the tickets in a
523     manner so that the tickets are available to local law enforcement agencies as required by this
524     chapter and as requested by any law enforcement agency as part of an investigation or
525     reasonable random inspection conducted pursuant to this chapter.
526          (3) (a) If a pawn or secondhand business experiences a computer or electronic
527     malfunction that affects its ability to report transactions as required in Subsection (1), the pawn
528     or secondhand business shall immediately notify the division and the local law enforcement
529     agency of the malfunction.
530          (b) The pawn or secondhand business shall solve the malfunction within three business
531     days or notify the division and the local law enforcement agency under Subsection (4).
532          (4) If the computer or electronic malfunction under Subsection (3) cannot be solved
533     within three business days, the pawn or secondhand business shall notify the division and the
534     local law enforcement agency of the reasons for the delay and provide documentation from a
535     reputable computer maintenance company of the reasons why the computer or electronic
536     malfunction cannot be solved within three business days.
537          (5) A computer or electronic malfunction does not suspend the pawn or secondhand
538     business' obligation to comply with all other provisions of this chapter.
539          (6) During the malfunction under Subsections (3) and (4), the pawn or secondhand
540     business shall:
541          (a) arrange with the local law enforcement agency a mutually acceptable alternative
542     method by which the pawn or secondhand business provides the required information to the
543     local law enforcement [official] agency; and
544          (b) a [pawnshop] pawn or secondhand business shall maintain the [pawn] tickets and
545     other related information required under this chapter in a written form.
546          (7) A pawn or secondhand business that violates the electronic transaction reporting
547     requirement of this section is subject to an administrative fine of $50 per day if:
548          (a) the pawn or secondhand business is unable to submit the information electronically
549     due to a computer or electronic malfunction;
550          (b) the three business day period under Subsection (3) has expired; and
551          (c) the pawn or secondhand business has not provided documentation regarding its
552     inability to solve the malfunction as required under Subsection (4).
553          (8) A pawn or secondhand business is not responsible for a delay in transmission of
554     information that results from a malfunction in the central database.
555          (9) A violation of this section is a Class B misdemeanor and is also subject to civil
556     penalties under Section 13-32a-110.
557          Section 9. Section 13-32a-106.5 is amended to read:
558          13-32a-106.5. Confidentiality of pawn and purchase transactions.
559          (1) [All pawn and purchase transaction records] A ticket, copy of a ticket, or
560     information from a ticket delivered to a local law enforcement [official] agency or transmitted
561     to the central database pursuant to Section 13-32a-106 [are protected records] is a protected
562     record under Section 63G-2-305. [These records] In addition to use by the issuing pawn or
563     secondhand business, the ticket, copy of a ticket, or information from a ticket may be used only
564     by a law enforcement [officials] agency and the division and only for the law enforcement and
565     administrative enforcement purposes of:
566          (a) investigating possible criminal conduct involving the property delivered to the
567     [pawnbroker] pawn or secondhand business in a pawn transaction or [purchase] secondhand
568     merchandise transaction;
569          (b) investigating a possible violation of the record keeping or reporting requirements of
570     this chapter when the local law enforcement [official] agency or the division, based on a review
571     of the records and information received, has reason to believe that a violation has occurred;
572          (c) responding to an inquiry from an insurance company investigating a claim for
573     physical loss of described property by searching the central database to determine if property
574     matching the description has been delivered to a [pawnbroker] pawn or secondhand business
575     by another person in a pawn transaction or secondhand merchandise purchase transaction and if
576     so, obtaining from the central database:
577          (i) a description of the property;
578          (ii) the name and address of the [pawnbroker] pawn or secondhand business [who] that
579     received the property; and
580          (iii) the name, address, and date of birth of the conveying [person] individual; and
581          (d) taking enforcement action under Section 13-2-5 against a [pawnbroker] pawn or
582     secondhand business.
583          (2) An insurance company making a request under Subsection (1)(c) shall provide the
584     police report case number concerning the described property.
585          (3) (a) A person may not knowingly and intentionally use, release, publish, or
586     otherwise make available to any person [or entity] any information obtained from the central
587     database for any purpose other than those specified in Subsection (1).
588          (b) Each separate violation of Subsection (3)(a) is a class B misdemeanor.
589          (c) Each separate violation of Subsection (3)(a) is subject to a civil penalty not to
590     exceed $250.
591          Section 10. Section 13-32a-108 is amended to read:
592          13-32a-108. Retention of records -- Reasonable inspection.
593          (1) [The pawnbroker] A pawn or secondhand business or local law enforcement
594     agency, whichever has custody of [pawn tickets] a ticket or copy of a ticket, shall retain [them]
595     the ticket or copy for no less than three years from the date of the transaction.
596          (2) (a) A law enforcement agency or the division may conduct random reasonable
597     inspections of pawn or secondhand businesses for the purpose of monitoring compliance with
598     the [reporting] requirements of this chapter. [The inspections may be conducted to:]
599          [(i) confirm that pawned or sold items match the description reported to the database
600     by the pawnshop; and]
601          [(ii) make spot checks of property at the pawn or secondhand business to determine if
602     the property is appropriately reported.]
603          (b) Inspections under Subsection (2)(a) shall be performed during the regular business
604     hours of the pawn or secondhand business.
605          (3) A violation of this section is a Class B misdemeanor and is also subject to civil
606     penalties under Section 13-32a-110.
607          Section 11. Section 13-32a-109 is amended to read:
608          13-32a-109. Holding period for property -- Return of property -- Penalty.
609          (1) (a) A pawnbroker may sell [an article] property pawned to the pawnbroker if:
610          (i) 15 calendar days have passed [since] after the day on which the [contract between
611     the pawnbroker and the pledgor was executed] pawnbroker submits the information and any
612     required photograph to the central database;
613          (ii) the contract period between the pawnbroker and the pledgor [has expired] expires;
614     and
615          (iii) the pawnbroker has complied with [the requirements of Section] Sections
616     13-32a-103, 13-32a-104, and 13-32a-106 [regarding reporting to the central database and
617     Section 13-32a-103].
618          (b) If [an article] property, including scrap jewelry, is purchased by a pawn or
619     secondhand business [or a coin dealer], the pawn or secondhand business [or coin dealer] may
620     sell the [article after] property if the pawn or secondhand business [or coin dealer] has held the
621     [article] property for 15 calendar days after the day on which the pawn or secondhand business
622     submits the information to the central database, and complied with [the requirements of
623     Section] Sections 13-32a-103, 13-32a-104, and 13-32a-106 [regarding reporting to the central
624     database and Section 13-32a-103], except that the pawn[,] or secondhand[, and coin dealer
625     businesses are] business is not required to hold precious metals or [coins] numismatic items
626     under this Subsection (1)(b).
627          (c) (i) This Subsection (1) does not preclude a law enforcement agency from requiring
628     a pawn or secondhand business to hold [an article] property if necessary in the course of an
629     investigation.
630          [(i)] (ii) If the [article was] property is pawned, the law enforcement agency may
631     require the [article] property be held beyond the terms of the contract between the pledgor and
632     the [pawn broker] pawnbroker.
633          [(ii)] (iii) If the [article was] property is sold to the pawn or secondhand business, the
634     law enforcement agency may require the [article] property be held if the pawn or secondhand
635     business has not sold the article.
636          (d) If the law enforcement agency requesting a hold on property under this Subsection
637     (1) is not the local law enforcement agency, the requesting law enforcement agency shall notify
638     the local law enforcement agency of the request and also the pawn or secondhand business.
639          (2) If a law enforcement agency requires the pawn or secondhand business to hold [an
640     article] property as part of an investigation, the law enforcement agency shall provide to the
641     pawn or secondhand business a hold [ticket] form issued by the law enforcement agency,
642     [which] that:
643          (a) states the active case number;
644          (b) confirms the date of the hold request and the [article] property to be held; and
645          (c) facilitates the ability of the pawn or secondhand business to track the [article]
646     property when the prosecution takes over the case.
647          (3) If [an article] property is not seized by a law enforcement agency that has placed a
648     hold on the property, the property shall remain in the custody of the pawn or secondhand
649     business until further disposition by the law enforcement agency, and as consistent with this
650     chapter.
651          (4) The initial hold by a law enforcement agency is for a period of 90 days. If the
652     [article] property is not seized by the law enforcement agency, the [article] property shall
653     remain in the custody of the pawn or secondhand business and is subject to the hold unless
654     exigent circumstances require the [purchased or pawned article] property to be seized by the
655     law enforcement agency.
656          (5) (a) A law enforcement agency may extend any hold for up to an additional 90 days
657     [when exigent] if circumstances require the extension.
658          (b) [When] If there is an extension of a hold under Subsection (5)(a), the requesting
659     law enforcement agency shall notify the pawn or secondhand business that is subject to the
660     hold prior to the expiration of the initial 90 days.
661          (c) A law enforcement agency may not hold an item for more than the 180 days
662     allowed under Subsections (5)(a) and (b) without obtaining a court order authorizing the hold.
663          (6) A hold on [an article] property under Subsection (2) takes precedence over any
664     request to claim or purchase the [article] property subject to the hold.
665          (7) [When the purpose for the hold on or seizure of an article for which] If an original
666     victim who has complied with Section 13-32a-115 has not been identified and the hold or
667     seizure of the property is terminated, the law enforcement agency requiring the hold or seizure
668     shall within 15 business days after the termination:
669          (a) notify the pawn or secondhand business in writing that the hold or seizure has been
670     terminated;
671          (b) return the [article] property subject to the seizure to the pawn or secondhand
672     business; or
673          (c) if the [article] property is not returned to the pawn or secondhand business, advise
674     the pawn or secondhand business either in writing or electronically of the specific alternative
675     disposition of the [article] property.
676          (8) (a) [When the purpose for the hold on or seizure of an article, for which an] If the
677     original victim who has complied with Section 13-32a-115 has been identified and the hold or
678     seizure of property is terminated, the law enforcement agency requiring the hold or seizure
679     shall:
680          (i) document the original victim who has positively identified the [item of] property;
681     and
682          (ii) provide the documented information concerning the original victim to the
683     prosecuting agency to determine whether continued possession of the [article] property is
684     necessary for purposes of prosecution, as provided in Section 24-3-103.
685          (b) If the prosecuting agency determines that continued possession of the [article]
686     property is not necessary for purposes of prosecution, as provided in Section 24-3-103, the
687     prosecuting agency shall provide a written or electronic notification to the law enforcement
688     agency [which] that authorizes the return of the [article] property to an original victim who has
689     complied with Section 13-32a-115.
690          (c) (i) A law enforcement agency shall promptly provide notice to the pawn or
691     secondhand business of the authorized return of the [article] property under this Subsection (8).
692          (ii) The notice shall identify the original victim, advise the pawn or secondhand
693     business that the original victim has identified the [article] property, and direct the pawn or
694     secondhand business to release the [article] property to the original victim at no cost to the
695     original victim[, or if].
696          (iii) If the [article] property was seized, the notice shall advise that the [article]
697     property will be returned to the original victim within 15 days after the day on which the pawn
698     or secondhand business receives the notice, except as provided under Subsection (8)(d).
699          (d) The pawn or secondhand business shall release [an article] property under
700     Subsection (8)(c) unless within 15 days of receiving the notice the pawn or secondhand
701     business complies with Section 13-32a-116.5.
702          (9) If the law enforcement agency does not notify the pawn or secondhand business
703     that a hold on [an item] the property has expired, the pawn or secondhand business shall send a
704     letter by registered or certified mail to the law enforcement agency that ordered the hold and
705     inform the agency that the holding period has expired. The law enforcement agency shall
706     respond within 30 days by:
707          (a) confirming that the [holding] hold period has expired and that the pawn or
708     secondhand business may manage the [item] property as if acquired in the ordinary course of
709     business; or
710          (b) providing written notice to the pawn or secondhand business that a court order has
711     continued the period of time for which the item shall be held.
712          (10) The written notice under Subsection (9)(b) is considered provided when:
713          (a) personally delivered to the pawn or secondhand business with a signed receipt of
714     delivery;
715          (b) delivered to the pawn or secondhand business by registered or certified mail; or
716          (c) delivered by any other means with the mutual assent of the law enforcement agency
717     and the pawn or secondhand business.
718          (11) If the law enforcement agency does not respond within 30 days under Subsection
719     (9), the pawn or secondhand business may manage the [item] property as if acquired in the
720     ordinary course of business.
721          (12) A violation of this section is a class B misdemeanor and is also subject to civil
722     penalties under Section 13-32a-110.
723          Section 12. Section 13-32a-109.5 is amended to read:
724          13-32a-109.5. Seizure of property -- Notification to pawn or secondhand business.
725          If a law enforcement agency determines seizure of property pawned or sold to a pawn
726     or secondhand business is necessary under this chapter during the course of a criminal
727     investigation, in addition to the [holding] hold provisions under Section 13-32a-109, the law
728     enforcement agency shall:
729          (1) notify the [pawnshop] pawn or secondhand business of the specific [item] property
730     to be seized; and
731          (2) issue to the [pawnshop] pawn or secondhand business a seizure [ticket in a form]
732     form approved by the division and that:
733          (a) provides the active case number related to the [item] property to be seized;
734          (b) provides the date of the seizure request;
735          (c) provides the reason for the seizure;
736          (d) describes the [article] property to be seized;
737          (e) states each reason the [article] property is necessary during the course of a criminal
738     investigation; and
739          (f) includes any information that facilitates the [pawnbroker's] pawn or secondhand
740     business' ability to track the [article] property when the prosecution agency takes over the case.
741          Section 13. Section 13-32a-110 is amended to read:
742          13-32a-110. Administrative or civil penalties -- Criminal prosecution.
743          (1) A violation of any of the following sections is subject to [a] an administrative or
744     civil penalty of not more than $500:
745          (a) Section 13-32a-104, [register] ticket required to be maintained;
746          (b) Section 13-32a-104.5, ticket by coin dealer to be maintained;
747          [(b)] (c) Section 13-32a-106, transaction information provided to law enforcement;
748          [(c)] (d) Section 13-32a-108, retention of records;
749          [(d)] (e) Section 13-32a-109, holding period for pawned [articles] or purchased
750     property;
751          (f) Section 13-32a-110.5, transactions with certain individuals prohibited;
752          [(e)] (g) Section 13-32a-111, payment of fees as required; or
753          [(f)] (h) Section 13-32a-112, training requirements for pawn[,] or secondhand[, and
754     coin dealer] business employees and officers of participating law enforcement agencies.
755          (2) This section does not prohibit civil action by a governmental entity regarding the
756     [pawnbroker's business] pawn or secondhand business' operation or licenses.
757          (3) The imposition of civil penalties under this section does not prohibit criminal
758     prosecution by a governmental entity for criminal violations of this chapter.
759          Section 14. Section 13-32a-110.5 is amended to read:
760          13-32a-110.5. Transactions with certain individuals prohibited.
761          A pawn or secondhand business may not [purchase, accept as a pawn, or take for
762     consignment any property from a person] engage in a pawn transaction or secondhand
763     merchandise transaction with an individual who:
764          (1) is younger than 18 years of age; or
765          (2) appears to be [acting] under the influence of alcohol or [any] a controlled
766     substance.
767          Section 15. Section 13-32a-111 is amended to read:
768          13-32a-111. Fees to fund account.
769          [(1) (a) (i) On and after January 1, 2005, each pawnshop or secondhand merchandise
770     dealer in operation shall annually pay $250 to the division, to be deposited in the account.]
771          [(ii) On and after January 1, 2013, each pawnshop or secondhand merchandise dealer
772     in operation shall annually pay $300 to the division, to be deposited in the account.]
773          [(b) For the period of July 1, 2009 through December 31, 2009, each coin dealer in
774     operation shall pay a fee of $250 to the division to be deposited in the account.]
775          [(c) (i) On and after January 1, 2010, each coin dealer in operation shall annually on
776     January 1 pay $250 to the division to be deposited in the account.]
777          [(ii) On and after January 1, 2013, each coin dealer in operation shall annually on
778     January 1 pay $300 to the division to be deposited in the account.]
779          [(2) (a) On and after January 1, 2005, each law enforcement agency that participates in
780     the use of the database shall annually pay to the division a fee of $2 per sworn law enforcement
781     officer who is employed by the agency as of January 1 of that year. The fee shall be deposited
782     in the account.]
783          [(b) On and after January 1, 2013, each]
784          (1) (a) A pawn or secondhand business in operation shall pay an annual fee, no more
785     than $500, set in accordance with Section 63J-1-504.
786          (b) A law enforcement agency within Utah that participates in the use of the central
787     database shall [annually pay to the division a fee of $3 per sworn law enforcement officer who
788     is employed by the agency as of January 1 of that year. The fee shall be deposited in the
789     account.] pay an annual fee set in accordance with Section 63J-1-504.
790          [(3) The fees under Subsections (1) and (2) shall be paid to the account annually on or
791     before January 30.]
792          [(4) (a) (i) If a] (c) A law enforcement agency outside Utah that requests access to the
793     central database[, the requesting agency] shall pay [a yearly] an annual fee [of $750 for the
794     fiscal year beginning July 1, 2006, which shall be deposited in the account] set in accordance
795     with Section 63J-1-504.
796          [(ii) If a law enforcement agency outside Utah requests access to the central database,
797     the requesting agency shall pay a yearly fee of $900 for the fiscal year beginning July 1, 2013,
798     which shall be deposited in the account.]
799          [(b) The board may establish the fee amount for fiscal years beginning on and after July
800     1, 2007 under Section 63J-1-504.]
801          (2) A fee paid under Subsection (1) shall be paid annually to the division on or before
802     January 31.
803          (3) A fee received by the division under this section shall be deposited into the account.
804          (4) The division may only increase fees for a pawnshop or secondhand business under
805     Section 63J-1-504.
806          Section 16. Section 13-32a-112 is amended to read:
807          13-32a-112. Pawnshop and Secondhand Merchandise Advisory Board.
808          (1) There is created within the division the "Pawnshop and Secondhand Merchandise
809     Advisory Board."
810          (2) The board consists of [13] seven voting members [and one nonvoting member]
811     appointed by the executive director of the Department of Commerce:
812          (a) one [representative of] law enforcement officer whose work regularly involves
813     pawn or secondhand business, recommended by the Utah Chiefs of Police Association;
814          (b) one [representative of] law enforcement officer whose work regularly involves
815     pawn or secondhand business, recommended by the Utah Sheriffs Association;
816          (c) one [representative of the Statewide Association of Prosecutors] state, county, or
817     municipal prosecutor, recommended by a prosecutors' association or council;
818          [(d) one representative of the Utah Municipal Prosecutors' Association;]
819          [(e) three representatives from the pawnshop industry;]
820          [(f) three representatives from the secondhand merchandise business industry;]
821          [(g) one representative from the coin dealer industry;]
822          [(h) one law enforcement officer who is appointed by the board members under
823     Subsections (1)(a) through (g);]
824          [(i) one law enforcement officer whose work regularly involves pawn and secondhand
825     businesses and who is appointed by the board members under Subsections (1)(a) through (g);
826     and]
827          [(j) one representative from the central database, who is nonvoting.]
828          [(2) (a) The board shall prepare recommendations for the appointment of members
829     under Subsections (1)(a) through (g), and Subsection (1)(j), and shall forward its
830     recommendations to the Commission on Criminal and Juvenile Justice, which shall make the
831     appointments.]
832          [(b) The members under Subsections (1)(e), (f), and (g) shall represent three separate
833     pawnshops, three separate secondhand merchandise dealers, and one coin dealer, each of which
834     are owned by a separate person or entity.]
835          [(c) In appointing members from the individuals recommended under Subsection
836     (2)(a), the Commission on Criminal and Juvenile Justice shall give consideration to
837     recommendations by members of the respective occupations and professions and by their
838     representative organizations.]
839          (d) one pawnbroker, recommended by the pawn industry;
840          (e) one secondhand merchandise dealer, recommended by the secondhand merchandise
841     industry;
842          (f) one coin dealer, recommended by the Utah Coin Dealers Association; and
843          (g) one representative from the pawn or secondhand merchandise industry at large,
844     recommended by the pawn or secondhand merchandise industry.
845          (3) After receiving a recommendation for a member by a respective association,
846     council, or industry for the board, the executive director may:
847          (a) decline the recommendation; and
848          (b) request another recommendation from the respective association, council, or
849     industry.
850          [(3)] (4) (a) [Each] A member of the board shall be appointed to a term of not more
851     than four years, and may be reappointed upon expiration of the member's term.
852          (b) Notwithstanding the requirements of Subsection [(3)] (4)(a), the [Commission on
853     Criminal and Juvenile Justice] executive director of the Department of Commerce shall, at the
854     time of appointments or reappointments, adjust the length of terms to ensure that the terms of
855     board members are staggered so that approximately half of the board is appointed every two
856     years.
857          (c) When a vacancy occurs in the membership for any reason, the executive director of
858     the Department of Commerce shall appoint a member for the unexpired term.
859          (d) The executive director of the Department of Commerce may remove a member and
860     replace the member in accordance with this section for the following reasons:
861          (i) the member fails or refuses to fulfill the duties of a board member, including
862     attendance at board meetings; or
863          (ii) the member, an entity owned by the member, an entity that the member is
864     employed by, or an entity that the member is representing, engages in a violation of this chapter
865     or Section 76-6-408.
866          (e) Notwithstanding Subsection (4)(d), members of the board as of May 13, 2019, are
867     removed from the board and the executive director of the Department of Commerce shall
868     appoint the board members in accordance with this section.
869          [(4)] (5) (a) The board shall elect one voting member as the chair of the board by a
870     majority of the members present at the board's first meeting each year.
871          (b) The chair shall preside over the board for a period of one year.
872          (c) The [advisory] board shall meet quarterly upon the call of the chair.
873          (d) A quorum of [nine] five members is required for the board to take action. An action
874     taken by majority of a quorum present at a meeting constitutes an action of the board.
875          [(5) (a) The board shall conduct quarterly training sessions regarding compliance with
876     this chapter and other applicable state laws for any person who owns or is employed by a pawn
877     or secondhand business subject to this chapter.]
878          [(b) Each training session shall provide no fewer than two hours of training.]
879          [(6) (a) Each pawn, secondhand, and coin dealer business in operation as of January 1
880     shall ensure one or more persons employed by the pawn or secondhand business each
881     participate in no fewer than two hours of compliance training within that year.]
882          [(b) This requirement does not limit the number of employees, directors, or officers of
883     a pawn or secondhand business who attend the compliance training.]
884          [(7) The board shall monitor and keep a record of the hours of compliance training
885     accrued by each pawn or secondhand business.]
886          [(8) The board shall provide each pawn or secondhand business with a certificate of
887     compliance upon completion by an employee of the two hours of compliance training under
888     Subsection (6).]
889          [(9) (a) Each law enforcement agency shall ensure that at least one of its officers
890     completes two hours of compliance training yearly.]
891          [(b) Subsection (9)(a) does not limit the number of law enforcement officers who
892     attend the compliance training.]
893          [(10)] (6) (a) The duties and powers of the board include the following: [board may
894     propose to the division administrative rules establishing:]
895          [(a) pawn and secondhand business industry standards for best practices;]
896          [(b) standardized property descriptions for the database created under this chapter; and]
897          [(c) a roster of software programs for pawn and secondhand businesses setting out
898     minimum basic requirements for functionality.]
899          (i) recommending to the division appropriate rules regarding the administration and
900     enforcement of this chapter;
901          (ii) recommending to the division changes related to the central database; and
902          (iii) advising the division on matters related to the pawn and secondhand industries.
903          (b) This Subsection (6) does not require the board's approval to act on a rule or amend
904     this chapter.
905          [(11)] (7) [Pawn and] A pawn or secondhand [businesses] business may file with the
906     board complaints regarding law enforcement agency practices perceived to be inconsistent with
907     this chapter. The board may refer the complaints to the Peace Officers Standards and Training
908     Division.
909          Section 17. Section 13-32a-112.1 is enacted to read:
910          13-32a-112.1. Annual training.
911          (1) (a) The division shall provide training sessions, whether online or in-person, at least
912     once each year regarding compliance with this chapter and other applicable state laws.
913          (b) A pawn or secondhand business shall ensure that each individual employed by the
914     pawn or secondhand business with access to the central database annually completes the
915     training described in Subsection (1)(a) in order for that individual to continue to have access to
916     the central database.
917          (c) A law enforcement agency participating in the use of the central database shall
918     ensure that each individual employed by the law enforcement agency with access to the central
919     database annually completes the training described in Subsection (1)(a) in order for that
920     individual to continue to have access to the central database.
921          (2) The division shall monitor and keep a record of training completion.
922          Section 18. Section 13-32a-112.5 is amended to read:
923          13-32a-112.5. Temporary businesses subject to chapter.
924          [(1) (a) The division may exempt specific classes of businesses from regulation under
925     this chapter by rules made under Title 63G, Chapter 3, Utah Administrative Rulemaking Act.]
926          [(b) The division shall consult with the board in determining which classes of
927     businesses to exempt under this section.]
928          [(2) Businesses the division may exempt are classes of commercial enterprises clearly
929     defined by administrative rule and that do not involve transactions in property that is
930     recognized by law enforcement as regularly subject to theft and subsequent efforts to pawn or
931     sell.]
932          [(3) Municipal and county criminal and civil enforcement regarding the provisions of
933     this chapter may not be imposed on businesses exempted under this section.]
934          [(4) Any] A pawn or secondhand business [not exempted by this section and] that
935     operates on a temporary basis or from a location that is not a permanent retail location:
936          [(a)] (1) shall comply with [the provisions of] this chapter; and
937          [(b)] (2) is subject to enforcement of [the provisions of] this chapter.
938          Section 19. Section 13-32a-113 is amended to read:
939          13-32a-113. Pawnbroker and Secondhand Merchandise Operations Restricted
940     Account.
941          (1) There is created within the General Fund a restricted account known as the
942     "Pawnbroker and Secondhand Merchandise Operations Restricted Account."
943          (2) (a) The account shall be funded from [the] fees and administrative and civil fines
944     imposed and collected under Sections 13-32a-106, [13-32a-107, ]13-32a-110, and 13-32a-111.
945     These fees and administrative and civil fines shall be paid to the division, which shall deposit
946     them in the account.
947          (b) The Legislature shall appropriate [the] funds in this account to the division for:
948          (i) [to the board for] the costs of providing training required under this chapter[,];
949          (ii) the costs of the central database created in Section 13-32a-105[, and for costs of
950     operation of the board]; and
951          [(ii) to the division for management of fees and penalties paid under this chapter.]
952          [(c) The board shall account to the division for expenditures.]
953          [(d) The board shall account separately for expenditures for:]
954          [(i) training required under this chapter;]
955          [(ii) operation of the database; and]
956          [(iii) operation of the board.]
957          (iii) the division's costs of administering the chapter.
958          Section 20. Section 13-32a-114 is amended to read:
959          13-32a-114. Preemption of local ordinances -- Exceptions.
960          (1) This chapter preempts [all] town, city, county, and other local ordinances governing
961     pawn or secondhand businesses [and pawnbroking transactions], if the ordinances are more
962     restrictive than the provisions of this chapter or are not consistent with this chapter.
963          (2) Subsection (1) does not preclude a city, county, or other local governmental unit
964     from:
965          (a) enacting or enforcing local ordinances concerning public health, safety, or welfare,
966     if the ordinances are uniform and equal in application to pawn and secondhand businesses and
967     other retail businesses or activities;
968          (b) requiring a pawn or secondhand business to obtain and maintain a business license
969     and providing for revocation of the business license based on multiple violations of Section
970     76-6-408; and
971          (c) enacting zoning ordinances that restrict areas where pawn or secondhand businesses
972     and other retail businesses or activities can be located.
973          Section 21. Section 13-32a-115 is amended to read:
974          13-32a-115. Criminal investigation -- Prosecution -- Property disposition.
975          (1) If the property pawned or sold to a pawn or secondhand business is the subject of a
976     criminal investigation and a hold has been placed on the property under Section 13-32a-109,
977     the original victim shall do the following to establish a claim:
978          (a) positively identify to law enforcement the [item] property stolen or lost;
979          (b) if a police report has not already been filed for the original theft or loss of property,
980     file a police report, and provide for the law enforcement agency information surrounding the
981     original theft or loss of property; and
982          (c) give a sworn statement under penalty of law that:
983          (i) claims ownership of the property;
984          (ii) references the original theft or loss; and
985          (iii) identifies the perpetrator if known.
986          (2) The pawn or secondhand business shall retain possession of any property subject to
987     a hold until a criminal prosecution is commenced relating to the property for which the hold
988     was placed unless:
989          (a) during the course of a criminal investigation the actual physical possession by law
990     enforcement of [an article] the property purchased or pawned is essential for the purpose of
991     [fingerprinting the property, chemical] forensic testing of the property, or if the property
992     contains unique or sensitive personal identifying information; or
993          (b) an agreement between the original victim and the pawn or secondhand business to
994     return the property is reached.
995          (3) (a) Upon the commencement of a criminal prosecution, any [article] property
996     subject to a hold for investigation under this chapter may be seized by the law enforcement
997     agency [which] that requested the hold.
998          (b) Subsequent disposition of the property shall be consistent with this chapter.
999          (4) At all times during the course of a criminal investigation and subsequent
1000     prosecution, the [article] property subject to a law enforcement hold shall be kept secure by the
1001     pawn or secondhand business subject to the hold unless [a] the pawned or [sold article]
1002     purchased property has been seized by the law enforcement agency pursuant to Section
1003     13-32a-109.5.
1004          Section 22. Section 13-32a-116 is amended to read:
1005          13-32a-116. Property disposition -- Property subject to prosecution -- Property
1006     not used as evidence.
1007          When [any] property that is pawned or sold to a pawn or secondhand business is the
1008     subject of a criminal proceeding, and has been seized by law enforcement pursuant to [Section
1009     13-32a-115] this chapter, the prosecuting agency shall notify the seizing agency, the original
1010     victim, and the pawn or secondhand business in compliance with Subsection 13-32a-109(8), if
1011     the prosecuting agency determines the article is no longer needed as evidence pending
1012     resolution of the criminal case.
1013          Section 23. Section 13-32a-116.5 is amended to read:
1014          13-32a-116.5. Contested disposition of property - Procedure.
1015          (1) If a pawn or secondhand business [has received] receives notice from a law
1016     enforcement agency under Section 13-32a-109 that [an article which was] property that is the
1017     subject of a hold or seizure shall be returned to an identified original victim, the pawn or
1018     secondhand business may contest the determination and seek a specific alternative disposition
1019     if within 15 business days after the day on which the pawn or secondhand business receives the
1020     notice:
1021          (a) the pawn or secondhand business gives notice to the identified original victim, by
1022     certified mail, that the pawn or secondhand business contests the determination to return the
1023     [article] property to the original victim; and
1024          (b) files a petition in a court having jurisdiction over the matter to determine rightful
1025     ownership of the [article] property as provided in Section 24-3-104.
1026          (2) A pawn or secondhand business is guilty of a class B misdemeanor if the pawn or
1027     secondhand business:
1028          (a) holds or sells [an article] property in violation of a notification from a law
1029     enforcement agency that the [item] property is to be returned to an original victim; and
1030          (b) the pawn or secondhand business does not comply with the requirements of this
1031     section within the time periods specified.
1032          Section 24. Section 76-6-408 is amended to read:
1033          76-6-408. Receiving stolen property -- Duties of pawnbrokers, secondhand
1034     businesses, and coin dealers.
1035          (1) As used in this section:     
1036          (a) "Pawnbroker" means the same as that term is defined in Section 13-32a-102.
1037          (b) "Receives" means acquiring possession, control, title, or lending on the security of
1038     the property.
1039          [(1)] (2) A person commits theft if [he] the person receives, retains, or disposes of the
1040     property of another knowing that [it has been] the property is stolen, or believing that [it] the
1041     property is probably [has been] stolen, or who conceals, sells, withholds, or aids in concealing,
1042     selling, or withholding the property from the owner, knowing or believing the property to be
1043     stolen, intending to deprive the owner of [it] the property.
1044          [(2)] (3) The knowledge or belief required for Subsection [(1)] (2) is presumed in the
1045     case of an actor who:
1046          (a) is found in possession or control of other property stolen on a separate occasion;
1047          (b) has received other stolen property within the year preceding the receiving offense
1048     charged;
1049          (c) is a pawnbroker or person who:
1050          (i) has or operates a business dealing in or collecting used or secondhand merchandise
1051     or personal property, or an agent, employee, or representative of a pawnbroker or person who
1052     buys, receives, or obtains property; and
1053           [fails to require the seller or person delivering the property to: (i) certify, in writing,
1054     that he: has the legal rights to sell the property;]
1055          [(ii) provide a legible print, preferably the right thumb, at the bottom of the certificate
1056     next to his signature; and]
1057          [(iii) provide at least one positive form of identification; or]
1058          (ii) (A) has not completely and accurately documented the information required under
1059     Section 13-32a-104; or
1060          (B) is found in possession of merchandise or personal property that violates Subsection
1061     13-32a-104(2); or
1062          (d) is a coin dealer or an employee of the coin dealer as defined in Section 13-32a-102
1063     who does not comply with the requirements of Section 13-32a-104.5.
1064          [(3) Every] (4) A pawnbroker or person who has or operates a business dealing in or
1065     collecting used or secondhand merchandise or personal property, and every agent, employee, or
1066     representative of a pawnbroker or person who fails to comply with [the requirements of]
1067     Subsection [(2)(c)] (3) is presumed to have bought, received, or obtained the property knowing
1068     [it] the property to have been stolen or unlawfully obtained. This presumption may be rebutted
1069     by proof.
1070          [(4)] (5) When, in a prosecution under this section, it appears from the evidence that
1071     the defendant was a pawnbroker or a person who has or operates a business dealing in or
1072     collecting used or secondhand merchandise or personal property, or was an agent, employee, or
1073     representative of a pawnbroker or person, that the defendant bought, received, concealed, or
1074     withheld the property without obtaining the information required in Subsection [(2)(c) or
1075     (2)(d)] (3)(c) or (d), then the burden shall be upon the defendant to show that the property
1076     bought, received, or obtained was not stolen.
1077          [(5)] (6) Subsections [(2)] (3)(c), [(3)] (4), and [(4)] (5) do not apply to scrap metal
1078     processors as defined in Section 76-6-1402.
1079          [(6) As used in this section:]
1080          [(a) "Dealer" means a person in the business of buying or selling goods.]
1081          [(b) "Pawnbroker" means a person who:]
1082          [(i) loans money on deposit of personal property, or deals in the purchase, exchange, or
1083     possession of personal property on condition of selling the same property back again to the
1084     pledge or depositor;]
1085          [(ii) loans or advances money on personal property by taking chattel mortgage security
1086     on the property and takes or receives the personal property into his possession and who sells
1087     the unredeemed pledges; or]
1088          [(iii) receives personal property in exchange for money or in trade for other personal
1089     property.]
1090          [(c) "Receives" means acquiring possession, control, or title or lending on the security
1091     of the property.]
1092          Section 25. Section 76-6-412 is amended to read:
1093          76-6-412. Theft -- Classification of offenses -- Action for treble damages.
1094          (1) Theft of property and services as provided in this chapter is punishable:
1095          (a) as a second degree felony if the:
1096          (i) value of the property or services is or exceeds $5,000;
1097          (ii) property stolen is a firearm or an operable motor vehicle; or
1098          (iii) property is stolen from the person of another;
1099          (b) as a third degree felony if:
1100          (i) the value of the property or services is or exceeds $1,500 but is less than $5,000;
1101          (ii) the value of the property or services is or exceeds $500 and the actor has been twice
1102     before convicted of any of the following offenses, if each prior offense was committed within
1103     10 years of the date of the current conviction or the date of the offense upon which the current
1104     conviction is based and at least one of those convictions is for a class A misdemeanor:
1105          (A) any theft, any robbery, or any burglary with intent to commit theft;
1106          (B) any offense under Title 76, Chapter 6, Part 5, Fraud; or
1107          (C) any attempt to commit any offense under Subsection (1)(b)(ii)(A) or (B);
1108          (iii) in a case not amounting to a second degree felony, the property taken is a stallion,
1109     mare, colt, gelding, cow, heifer, steer, ox, bull, calf, sheep, goat, mule, jack, jenny, swine,
1110     poultry, or a fur-bearing animal raised for commercial purposes; or
1111          (iv) (A) the value of property or services is or exceeds $500 but is less than $1,500;
1112          (B) the theft occurs on a property where the offender has committed any theft within
1113     the past five years; and
1114          (C) the offender has received written notice from the merchant prohibiting the offender
1115     from entering the property pursuant to Subsection 78B-3-108(4);
1116          (v) the actor has been previously convicted of a felony violation of any of the offenses
1117     listed in Subsections (1)(b)(ii)(A) through (1)(b)(ii)(C);
1118          (c) as a class A misdemeanor if:
1119          (i) the value of the property stolen is or exceeds $500 but is less than $1,500;
1120          (ii) (A) the value of property or services is less than $500;
1121          (B) the theft occurs on a property where the offender has committed any theft within
1122     the past five years; and
1123          (C) the offender has received written notice from the merchant prohibiting the offender
1124     from entering the property pursuant to Subsection 78B-3-108(4); or
1125          (iii) the actor has been twice before convicted of any of the offenses listed in
1126     Subsections (1)(b)(ii)(A) through (1)(b)(ii)(C), if each prior offense was committed within 10
1127     years of the date of the current conviction or the date of the offense upon which the current
1128     conviction is based; or
1129          (d) as a class B misdemeanor if the value of the property stolen is less than $500 and
1130     the theft is not an offense under Subsection (1)(c).
1131          (2) Any individual who violates Subsection 76-6-408[(1)](2) or [Subsection]
1132     76-6-413(1), or commits theft of property described in Subsection 76-6-412(1)(b)(iii), is civilly
1133     liable for three times the amount of actual damages, if any sustained by the plaintiff, and for
1134     costs of suit and reasonable attorney fees.
1135          Section 26. Repealer.
1136          This bill repeals:
1137          Section 13-32a-107, Deadline for registers to be electronic -- Notice for updating.
1138          Section 13-32a-117, Property disposition if no criminal charges filed --
1139     Administrative hearing.
Bill Status / Votes
• Senate Actions • House Actions • Fiscal Actions • Other Actions
DateActionLocationVote
2/21/2019 Bill Numbered but not DistributedLegislative Research and General Counsel
2/21/2019 Numbered Bill Publicly DistributedLegislative Research and General Counsel / Enrolling
2/22/2019 House/ received bill from Legislative ResearchClerk of the House
2/22/2019 House/ 1st reading (Introduced)House Rules Committee
2/27/2019 House/ received fiscal note from Fiscal AnalystHouse Rules Committee
3/1/2019 House/ to standing committeeHouse Law Enforcement and Criminal Justice Committee
3/5/2019 House Comm - Substitute Recommendation from # 0 to # 1House Law Enforcement and Criminal Justice Committee10 0 1
3/5/2019 House Comm - Favorable RecommendationHouse Law Enforcement and Criminal Justice Committee9 1 1
3/5/2019 (12:15:30 PM)House/ comm rpt/ substitutedHouse Law Enforcement and Criminal Justice Committee
3/5/2019 (12:15:31 PM)House/ 2nd readingHouse 3rd Reading Calendar for House bills
3/5/2019 (7:30:19 PM)House/ 3rd readingHouse 3rd Reading Calendar for House bills
3/5/2019 (7:30:53 PM)House/ circledHouse 3rd Reading Calendar for House billsVoice vote
3/5/2019 (7:44:33 PM)House/ uncircledHouse 3rd Reading Calendar for House billsVoice vote
3/5/2019 (7:46:58 PM)House/ floor amendment # 1House 3rd Reading Calendar for House billsVoice vote
3/5/2019 (7:54:57 PM)House/ passed 3rd readingSenate Secretary73 0 2
3/5/2019 (7:54:59 PM)House/ to SenateSenate Secretary
3/6/2019 Senate/ received from HouseWaiting for Introduction in the Senate
3/6/2019 Senate/ 1st reading (Introduced)Senate Rules Committee
3/7/2019 Senate/ to standing committeeSenate Business and Labor Committee
3/8/2019 Senate Comm - Favorable RecommendationSenate Business and Labor Committee6 0 2
3/11/2019 (4:30:39 PM)Senate/ committee report favorableSenate Business and Labor Committee
3/11/2019 (4:30:40 PM)Senate/ placed on 2nd Reading CalendarSenate 2nd Reading Calendar
3/13/2019 Senate/ 2nd Reading Calendar to RulesSenate Rules Committee
3/13/2019 Senate/ Rules to 2nd Reading CalendarSenate 2nd Reading Calendar
3/13/2019 (3:20:22 PM)Senate/ 2nd & 3rd readings/ suspensionSenate 2nd Reading Calendar
3/13/2019 (3:20:38 PM)Senate/ circledSenate 2nd Reading CalendarVoice vote
3/13/2019 LFA/ fiscal note sent to sponsorSenate 2nd Reading Calendar
3/13/2019 House/ to Printing with fiscal noteSenate 2nd Reading Calendar
3/13/2019 (6:06:15 PM)Senate/ uncircledSenate 2nd Reading CalendarVoice vote
3/13/2019 (6:07:03 PM)Senate/ substituted from # 1 to # 2Senate 2nd Reading CalendarVoice vote
3/13/2019 (6:10:27 PM)Senate/ floor amendment # 1Senate 2nd Reading CalendarVoice vote
3/13/2019 (6:12:05 PM)Senate/ passed 2nd & 3rd readings/ suspensionClerk of the House27 0 2
3/13/2019 (6:12:06 PM)Senate/ to House with amendmentsClerk of the House
3/14/2019 (10:31:01 AM)House/ received from SenateClerk of the House
3/14/2019 (10:31:02 AM)House/ placed on Concurrence CalendarHouse Concurrence Calendar
3/14/2019 (2:42:41 PM)House/ concurs with Senate amendmentSenate President69 0 6
3/14/2019 (2:42:42 PM)House/ to SenateSenate President
3/14/2019 Senate/ received from HouseSenate President
3/14/2019 Senate/ signed by President/ returned to HouseHouse Speaker
3/14/2019 Senate/ to HouseHouse Speaker
3/14/2019 House/ received from SenateHouse Speaker
3/14/2019 House/ signed by Speaker/ sent for enrollingLegislative Research and General Counsel / Enrolling
3/15/2019 Bill Received from House for EnrollingLegislative Research and General Counsel / Enrolling
3/15/2019 Draft of Enrolled Bill PreparedLegislative Research and General Counsel / Enrolling
3/21/2019 Enrolled Bill Returned to House or SenateClerk of the House
3/21/2019 House/ enrolled bill to PrintingClerk of the House
3/22/2019 House/ received enrolled bill from PrintingClerk of the House
3/22/2019 House/ to GovernorExecutive Branch - Governor
3/26/2019 Governor SignedLieutenant Governor's office for filing