1     
PAWNSHOP AND SECONDHAND MERCHANDISE

2     
TRANSACTION INFORMATION ACT AMENDMENTS

3     
2021 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: James A. Dunnigan

6     
Senate Sponsor: Curtis S. Bramble

7     

8     LONG TITLE
9     General Description:
10          This bill addresses pawnshop and secondhand merchandise businesses.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines and modifies terms;
14          ▸     addresses tickets and information related to the central database;
15          ▸     imposes requirements related to an automated recycling kiosk;
16          ▸     grants rulemaking authority related to fingerprints;
17          ▸     modifies penalty provision;
18          ▸     repeals provision related to complying with criminal provisions and the chapter; and
19          ▸     makes technical changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          13-32a-102, as last amended by Laws of Utah 2019, Chapter 309
27          13-32a-104, as last amended by Laws of Utah 2020, Chapter 354
28          13-32a-104.5, as last amended by Laws of Utah 2019, Chapter 309
29          13-32a-106, as last amended by Laws of Utah 2019, Chapter 309
30          13-32a-109, as last amended by Laws of Utah 2019, Chapter 309
31          13-32a-110, as last amended by Laws of Utah 2020, Chapter 354
32     ENACTS:
33          13-32a-104.6, Utah Code Annotated 1953
34     REPEALS:
35          13-32a-103, as last amended by Laws of Utah 2019, Chapter 309
36     

37     Be it enacted by the Legislature of the state of Utah:
38          Section 1. Section 13-32a-102 is amended to read:
39          13-32a-102. Definitions.
40          As used in this chapter:
41          (1) "Account" means the Pawnbroker and Secondhand Merchandise Operations
42     Restricted Account created in Section 13-32a-113.
43          (2) "Antique item" means an item:
44          (a) that is generally older than 25 years;
45          (b) whose value is based on age, rarity, condition, craftsmanship, or collectability;
46          (c) that is furniture or other decorative objects produced in a previous time period, as
47     distinguished from new items of a similar nature; and
48          (d) obtained from auctions, estate sales, other antique shops, and individuals.
49          (3) "Antique shop" means a business operating at an established location that deals
50     primarily in the purchase, exchange, or sale of antique items.
51          (4) "Automated recycling kiosk" means an interactive machine that:
52          (a) is installed inside a commercial site used for the selling of goods and services to
53     consumers;
54          (b) is monitored remotely by a live representative during the hours of operation;
55          (c) only engages in secondhand merchandise transactions involving wireless
56     communication devices; and
57          (d) has the following technological functions:
58          (i) verifies the seller's identity by a live representative using the individual's
59     identification;
60          (ii) generates a ticket; and
61          (iii) electronically transmits the secondhand merchandise transaction information to the
62     central database.
63          (5) "Automated recycling kiosk operator" means a person whose sole business activity
64     is the operation of one or more automated recycling kiosks.
65          [(4)] (6) "Board" means the Pawnshop and Secondhand Merchandise Advisory Board
66     created by this chapter.
67          [(5)] (7) "Central database" or "database" means the electronic database created and
68     operated under Section 13-32a-105.
69          [(6)] (8) "Children's product" means a used item that is for the exclusive use of
70     children, or for the care of children, including clothing and toys.
71          [(7)] (9) "Children's product resale business" means a business operating at a
72     commercial location and primarily selling children's products.
73          [(8)] (10) "Coin" means a piece of currency, usually metallic and usually in the shape
74     of a disc that is:
75          (a) stamped metal, and issued by a government as monetary currency; or
76          (b) (i) worth more than its current value as currency; and
77          (ii) worth more than its metal content value.
78          [(9)] (11) "Coin dealer" means a person whose sole business activity is the selling and
79     purchasing of numismatic items and precious metals.
80          [(10)] (12) "Collectible paper money" means paper currency that is no longer in
81     circulation and is sold and purchased for the paper currency's collectible value.
82          [(11)] (13) (a) "Commercial grade precious metals" or "precious metals" means ingots,
83     monetized bullion, art bars, medallions, medals, tokens, and currency that are marked by the
84     refiner or fabricator indicating their fineness and include:
85          (i) .99 fine or finer ingots of gold, silver, platinum, palladium, or other precious metals;
86     or
87          (ii) .925 fine sterling silver ingots, art bars, and medallions.
88          (b) "Commercial grade precious metals" or "precious metals" does not include jewelry.
89          [(12)] (14) "Consignment shop" means a business, operating at an established location:
90          (a) that deals primarily in the offering for sale property owned by a third party; and
91          (b) where the owner of the property only receives consideration upon the sale of the
92     property by the business.
93          [(13)] (15) "Division" means the Division of Consumer Protection created in Chapter
94     1, Department of Commerce.
95          [(14)] (16) "Exonumia" means a privately issued token for trade that is sold and
96     purchased for the token's collectible value.
97          [(15)] (17) "Gift card" means a record that:
98          (a) is usable at:
99          (i) a single merchant; or
100          (ii) a specified group of merchants;
101          (b) is prefunded before the record is used; and
102          (c) can be used for the purchase of goods or services.
103          [(16)] (18) "Identification" means any of the following non-expired forms of
104     identification issued by a state government, the United States government, or a federally
105     recognized Indian tribe, if the identification includes a unique number, photograph of the
106     bearer, and date of birth:
107          (a) a United States Passport or United States Passport Card;
108          (b) a state-issued driver license;
109          (c) a state-issued identification card;
110          (d) a state-issued concealed carry permit;
111          (e) a United States military identification;
112          (f) a United States resident alien card;
113          (g) an identification of a federally recognized Indian tribe; or
114          (h) notwithstanding Section 53-3-207, a Utah driving privilege card.
115          (19) "IMEI number" means an International Mobile Equipment Identity number.
116          [(17)] (20) "Indicia of being new" means property that:
117          (a) is represented by the individual pawning or selling the property as new;
118          (b) is unopened in the original packaging; or
119          (c) possesses other distinguishing characteristics that indicate the property is new.
120          [(18)] (21) "Local law enforcement agency" means the law enforcement agency that
121     has direct responsibility for ensuring compliance with central database reporting requirements
122     for the jurisdiction where the pawn or secondhand business is located.
123          [(19)] (22) "Numismatic item" means a coin, collectible paper money, or exonumia.
124          [(20)] (23) "Original victim" means a victim who is not a party to the pawn or sale
125     transaction and includes:
126          (a) an authorized representative designated in writing by the original victim; and
127          (b) an insurer who has indemnified the original victim for the loss of the described
128     property.
129          [(21)] (24) "Pawn or secondhand business" means a business operated by a pawnbroker
130     or secondhand merchandise dealer, or the owner or operator of the business.
131          [(22)] (25) "Pawn transaction" means:
132          (a) an extension of credit in which an individual delivers property to a pawnbroker for
133     an advance of money and retains the right to redeem the property for the redemption price
134     within a fixed period of time;
135          (b) a loan of money on one or more deposits of personal property;
136          (c) the purchase, exchange, or possession of personal property on condition of selling
137     the same property back again to the pledgor or depositor; or
138          (d) a loan or advance of money on personal property by the pawnbroker taking chattel
139     mortgage security on the personal property, taking or receiving the personal property into the
140     pawnbroker's possession, and selling the unredeemed pledges.
141          [(23)] (26) "Pawnbroker" means a person whose business:
142          (a) engages in a pawn transaction; or
143          (b) holds itself out as being in the business of a pawnbroker or pawnshop, regardless of
144     whether the person or business enters into pawn transactions or secondhand merchandise
145     transactions.
146          [(24)] (27) "Pawnshop" means the physical location or premises where a pawnbroker
147     conducts business.
148          [(25)] (28) "Pledgor" means an individual who conducts a pawn transaction with a
149     pawnshop.
150          [(26)] (29) "Property" means an article of tangible personal property, numismatic item,
151     precious metal, gift card, transaction card, or other physical or digital card or certificate
152     evidencing store credit, and includes a wireless communication device.
153          [(27)] (30) "Retail media item" means recorded music, a movie, or a video game that is
154     produced and distributed in hard copy format for retail sale.
155          [(28)] (31) "Scrap jewelry" means [any] an item purchased solely:
156          (a) for its gold, silver, or platinum content; and
157          (b) for the purpose of reuse of the metal content.
158          [(29)] (32) (a) "Secondhand merchandise dealer" means a person whose business:
159          (i) engages in a secondhand merchandise transaction; and
160          (ii) does not engage in a pawn transaction.
161          (b) "Secondhand merchandise dealer" includes a coin dealer and an automated
162     recycling kiosk operator.
163          (c) "Secondhand merchandise dealer" does not include:
164          (i) an antique shop when dealing in antique items;
165          (ii) a person who operates an auction house, flea market, or vehicle, vessel, and
166     outboard motor dealers as defined in Section 41-1a-102;
167          (iii) the sale of secondhand goods at events commonly known as "garage sales," "yard
168     sales," "estate sales," "storage unit sales," or "storage unit auctions";
169          (iv) the sale or receipt of secondhand books, magazines, post cards, or nonelectronic:
170          (A) card games;
171          (B) table-top games; or
172          (C) magic tricks;
173          (v) the sale or receipt of used merchandise donated to recognized nonprofit, religious,
174     or charitable organizations or any school-sponsored association, and for which no
175     compensation is paid;
176          (vi) the sale or receipt of secondhand clothing, shoes, furniture, or appliances;
177          (vii) [any] a person offering the person's own personal property for sale, purchase,
178     consignment, or trade via the Internet;
179          (viii) [any] a person offering the personal property of others for sale, purchase,
180     consignment, or trade via the Internet, when that person does not have, and is not required to
181     have, a local business or occupational license or other authorization for this activity;
182          (ix) [any] an owner or operator of a retail business that:
183          (A) receives used merchandise as a trade-in for similar new merchandise ; or
184           (B) receives used retail media items as a trade-in for similar new or used retail media
185     items;
186          (x) an owner or operator of a business that contracts with other persons to offer those
187     persons' secondhand goods for sale, purchase, consignment, or trade via the Internet;
188          (xi) any dealer as defined in Section 76-6-1402, [which] that concerns scrap metal and
189     secondary metals;
190          (xii) the purchase of items in bulk that are:
191          (A) sold at wholesale in bulk packaging;
192          (B) sold by a person licensed to conduct business in Utah; and
193          (C) regularly sold in bulk quantities as a recognized form of sale;
194          (xiii) the owner or operator of a children's product resale business; or
195          (xiv) a consignment shop when dealing in consigned property.
196          [(30)] (33) "Secondhand merchandise transaction" means the purchase or exchange of
197     used or secondhand property.
198          [(31)] (34) "Ticket" means a document upon which information is entered when a
199     pawn transaction or secondhand merchandise transaction is made.
200          [(32)] (35) "Transaction card" means a card, code, or other means of access to a value
201     with the retail business issued to a person that allows the person to obtain, purchase, or receive
202     any of the following:
203          (a) goods;
204          (b) services;
205          (c) money; or
206          (d) anything else of value.
207          (36) "Wireless communication device" means a cellular telephone or a portable
208     electronic device designed to receive and transmit a text message, email, video, or voice
209     communication.
210          Section 2. Section 13-32a-104 is amended to read:
211          13-32a-104. Tickets required to be maintained -- Contents -- Identification of
212     items -- Prohibition against pawning or selling certain property.
213          (1) A pawn or secondhand business shall keep a ticket for property a person pawns or
214     sells to the pawn or secondhand business. A pawn or secondhand business shall document on
215     the ticket the following information regarding the property:
216          (a) the date and time of the transaction;
217          (b) whether the transaction is a pawn or purchase;
218          (c) the ticket number;
219          (d) the date by which the property must be redeemed, if the property is pawned;
220          (e) the following information regarding the individual who pawns or sells the property:
221          (i) the individual's full name and date of birth as they appear on the individual's
222     identification and the individual's residence address and telephone number;
223          (ii) the unique number and type of identification presented to the pawn or secondhand
224     business;
225          (iii) the individual's signature; and
226          (iv) (A) subject to any rule made under Subsection [(6), a] (7), an electronic or tangible
227     legible fingerprint of the individual's right index finger, or if the right index finger cannot be
228     fingerprinted, a legible fingerprint of the individual with a notation identifying the fingerprint
229     and the reason why the right index fingerprint was unavailable; and
230          (B) notwithstanding the other provisions of this Subsection (1), an electronic legible
231     fingerprint is not required to be documented on the ticket;
232          (f) the amount loaned on, paid for, or value for trade-in of each article of property;
233          (g) the full name of the individual conducting the pawn transaction or secondhand
234     merchandise transaction on behalf of the pawn or secondhand business or the initials or a
235     unique identifying number of the individual, if the pawn or secondhand business maintains a
236     record of the initials or unique identifying number of the individual; and
237          (h) an accurate description of each article of property, with available identifying marks,
238     including:
239          (i) (A) names, brand names, numbers, serial numbers, model numbers, IMEI numbers,
240     color, manufacturers' names, and size;
241          [(ii)] (B) metallic composition, and any jewels, stones, or glass;
242          [(iii)] (C) any other marks of identification or indicia of ownership on the property;
243          [(iv)] (D) the weight of the property, if the payment is based on weight;
244          [(v)] (E) any other unique identifying feature; and
245          [(vi)] (F) gold content, if indicated; or
246          [(vii)] (ii) if multiple articles of property of a similar nature are delivered together in
247     one transaction and the articles of property do not bear serial or model numbers and do not
248     include precious metals or gemstones, such as musical or video recordings, books, or hand
249     tools, the description of the articles is adequate if it includes the quantity of the articles and a
250     description of the type of articles delivered.
251          (2) (a) A pawn or secondhand business may not accept property if, upon inspection, it
252     is apparent that:
253          (i) a serial number or another form of indicia of ownership has been removed, altered,
254     defaced, or obliterated;
255          (ii) the property is not a numismatic item and has indicia of being new, but is not
256     accompanied by a written receipt or other satisfactory proof of ownership other than the seller's
257     own statement; or
258          (iii) except as provided in Subsection 13-32a-103.1(3), the property is a gift card,
259     transaction card, or other physical or digital card or certificate evidencing store credit.
260          (b) A pawn or secondhand business is not subject to Subsection (2)(a)(ii) if the pawn or
261     secondhand business is the original seller of the property and is accepting a return of the
262     property as provided by the pawn or secondhand business' established return policy.
263          (c) Property is presumed to have had indicia of being new at the time of a transaction if
264     the property is subsequently advertised by the pawn or secondhand business as being new.
265          (3) (a) An individual may not pawn or sell any property to a business regulated under
266     this chapter if the property is subject to being turned over to a law enforcement agency in
267     accordance with Title 77, Chapter 24a, Lost or Mislaid Personal Property.
268          (b) If an individual attempts to sell or pawn property to a business regulated under this
269     chapter and the employee or owner of the business knows or has reason to know that the
270     property is subject to Title 77, Chapter 24a, Lost or Mislaid Personal Property, the employee or
271     owner shall advise the individual of the requirements of Title 77, Chapter 24a, Lost or Mislaid
272     Personal Property, and may not receive the property in pawn or sale.
273          (4) A coin dealer is subject to Section 13-32a-104.5 and not subject to this section.
274          (5) An automated recyling kiosk operator is subject to Section 13-32a-104.6 and is not
275     subject to this section.
276          [(5)] (6) A violation of this section is a class B misdemeanor and is also subject to civil
277     penalties under Section 13-32a-110.
278          [(6) (a) On and after January 1, 2020:]
279          [(i) a pawn or secondhand business shall obtain an electronic legible fingerprint of the
280     individual's right index finger that can be submitted to the central database at the same time the
281     other information is submitted under this section, or if the right index finger cannot be
282     fingerprinted, an electronic legible fingerprint of the individual with a notation on the ticket
283     identifying the fingerprint and the reason why a right index fingerprint is unavailable; and]
284          [(ii) the electronic fingerprint is not required on the ticket.]
285          [(b) On and after January 1, 2020, a pawn or secondhand business shall submit an
286     electronic legible fingerprint obtained under Subsection (6)(a) to the central database.]
287          (7) The division shall establish standards and criteria for fingerprint legibility by rule
288     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
289          [(7)] (8) (a) As used in this Subsection [(7)] (8), "jewelry" means:
290          (i) any jewelry purchased by the pawn or secondhand business, including scrap jewelry
291     and watches; or
292          (ii) any jewelry [that the pawn or secondhand business is allowed to sell under
293     Subsection 13-32a-109(1)] pawned to a pawnbroker and the contract period between the
294     pawnbroker and the pledgor has expired, including scrap jewelry and watches.
295          (b) On and after January 1, 2020, a pawn or secondhand business shall obtain:
296          (i) a color digital photograph clearly and accurately depicting:
297          (A) each item of jewelry; and
298          (B) if an item of jewelry has one or more engravings, an additional color digital
299     photograph specifically depicting any engraving; and
300          (ii) a color digital photograph of an item that bears an identifying mark, including:
301          (A) a serial number, engraving, owner label, or similar identifying mark; and
302          (B) an additional photograph that clearly depicts the identifying mark described in
303     Subsection [(7)] (8)(b)(ii)(A).
304          Section 3. Section 13-32a-104.5 is amended to read:
305          13-32a-104.5. Database information from coin dealers -- New and prior
306     customers.
307          (1) A coin dealer shall maintain a ticket under this section for each secondhand
308     merchandise transaction of a numismatic item or precious metal with an individual with whom
309     the coin dealer has not previously conducted a secondhand merchandise transaction.
310          (2) For a secondhand merchandise transaction under Subsection (1), the coin dealer or
311     the coin dealer's employee shall document the following information on the ticket regarding
312     every numismatic item or precious metal transaction:
313          (a) the date and time of the transaction;
314          (b) the ticket number;
315          (c) the following information regarding the individual who sells the numismatic item
316     or precious metal:
317          (i) the individual's full name and date of birth as they appear on the individual's
318     identification and the individual's residence address and telephone number;
319          (ii) the unique number and type of identification presented to the coin dealer;
320          (iii) the individual's signature; and
321          (iv) (A) subject to any rule made under Subsection (6), [a] an electronic or tangible
322     legible fingerprint of the individual's right index finger, or if the right index finger cannot be
323     fingerprinted, a legible fingerprint of the individual with a notation identifying the fingerprint
324     and the reason why a right index fingerprint is unavailable; and
325          (B) notwithstanding the other provisions of this Subsection (2), an electronic legible
326     fingerprint is not required to be documented on the ticket;
327          (d) the amount paid for or trade-in value of each numismatic item or precious metal;
328          (e) the full name of the individual conducting the transaction on behalf of the pawn or
329     secondhand business or the initials or unique identifying number, if the coin dealer maintains a
330     record of the initials or unique identifying number of the individual; and
331          (f) an accurate description of each numismatic item or precious metal, with available
332     identifying marks, including:
333          (i) type and name of numismatic item or type and content of precious metal;
334          (ii) metallic composition, and any jewels, stones, or glass;
335          (iii) any other marks of identification or indicia of ownership on the article;
336          (iv) the weight of the article, if the payment is based on weight;
337          (v) any other unique identifying feature; and
338          (vi) metallic content.
339          (3) (a) If multiple numismatic items or precious metals of the same type in an amount
340     that would make reporting of each item unreasonably difficult are part of a single sale
341     transaction, a coin dealer shall document the property as a grouping.
342          (b) The description for a grouping described in Subsection (3)(a) must be an accurate
343     description, with available identifying marks, including:
344          (i) type and name of numismatic items or type and content of precious metal;
345          (ii) metallic composition, and any jewels, stones, or glass;
346          (iii) any other marks of identification or indicia of ownership on the article;
347          (iv) the weight of the articles, if the payment is based on the weight;
348          (v) any other unique identifying features; and
349          (vi) metallic content.
350          (4) If the individual selling a numismatic item or precious metal to the coin dealer has
351     an established previous transaction history with the coin dealer, the coin dealer or the coin
352     dealer's employee shall document the following information on the ticket:
353          (a) the date and time of the transaction and the ticket number;
354          (b) indication that the coin dealer has conducted business with the seller previously;
355          (c) the full name of the individual conducting the transaction on behalf of the pawn or
356     secondhand business or the initials or unique identifying number, if the coin dealer maintains a
357     record of the initials or unique identifying number of the individual;
358          (d) the initials of the seller's legal name, including any middle name;
359          (e) form of identification presented by the seller at the time of sale;
360          (f) the last four digits of the unique identifying number on the form of identification;
361          (g) the individual's signature;
362          (h) the amount paid for or trade-in value of each numismatic item or precious metal;
363     and
364          (i) the identifying information under Subsection (2)(f) and under Subsection (3) as
365     applicable.
366          (5) A coin dealer may not accept any numismatic item or precious metal if, upon
367     inspection, it is apparent that serial numbers or identifying characteristics have been
368     intentionally defaced on that numismatic item or precious metal.
369          [(6) (a) On and after January 1, 2020:]
370          [(i) for a secondhand merchandise transaction described in Subsection (1), a coin
371     dealer shall obtain an electronic legible fingerprint of the individual's right index finger that can
372     be submitted to the central database at the same time the other information is submitted under
373     this section, or if the right index finger cannot be fingerprinted, an electronic legible fingerprint
374     of the individual with a notation on the ticket identifying the fingerprint and the reason why a
375     right index fingerprint is unavailable; and]
376          [(ii) the electronic fingerprint is not required on the ticket.]
377          [(b) On and after January 1, 2020, a pawn or secondhand business shall submit an
378     electronic legible fingerprint obtained under Subsection (6)(a) to the central database.]
379          (6) The division shall establish standards and criteria for fingerprint legibility by rule
380     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
381          Section 4. Section 13-32a-104.6 is enacted to read:
382          13-32a-104.6. Database information from automated recycling kiosk operators.
383          (1) An automated recycling kiosk operator shall generate a ticket under this section for
384     each secondhand merchandise transaction in which the automated recycling kiosk operator
385     engages. An automated recycling kiosk operator shall document on the ticket the following
386     information:
387          (a) the date and time of the transaction;
388          (b) the ticket number;
389          (c) a color digital photograph of the front and back of each wireless communication
390     device;
391          (d) the following information regarding the individual who sells the wireless
392     communication device:
393          (i) the individual's full name and date of birth as they appear on the individual's
394     identification and the individual's residence address and telephone number;
395          (ii) the unique number and type of identification presented to the automated recycling
396     kiosk;
397          (iii) the individual's signature;
398          (iv) a color digital photograph of the individual; and
399          (v) (A) subject to rules made under Subsection (3), an electronic or tangible legible
400     fingerprint of the individual's right index finger, or if the right index finger cannot be
401     fingerprinted, a legible fingerprint of the individual with a notation identifying the fingerprint
402     and the reason why the right index fingerprint was unavailable; and
403          (B) notwithstanding the other provisions of this Subsection (1), an electronic legible
404     fingerprint is not required to be documented on the ticket;
405          (e) the full name of the individual conducting the secondhand merchandise transaction
406     on behalf of the automated recycling kiosk operator or the initials or a unique identifying
407     number of the individual, if the automated recycling kiosk maintains a record of the initials or
408     unique identifying number of the individual;
409          (f) the amount paid for each wireless communication device; and
410          (g) subject to Subsection (4), an accurate description of each wireless communication
411     device, including any:
412          (i) names, brand names, numbers, serial numbers, IMEI numbers, model numbers,
413     color, manufacturers' names, and size;
414          (ii) other marks of identification or indicia of ownership on the wireless
415     communication device; and
416          (iii) other unique identifying characteristics.
417          (2) A violation of this section is a class B misdemeanor and is also subject to civil
418     penalties under Section 13-32a-110.
419          (3) The division shall establish standards and criteria for fingerprint legibility by rule
420     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
421          (4) If an automated recycling kiosk cannot electronically extract a wireless
422     communication device's serial number or IMEI number from the wireless communication
423     device at the time of the transaction:
424          (a) the automated recycling kiosk operator may not pay the seller more than $25 for the
425     wireless communication device;
426          (b) the automated recycling kiosk operator shall engage in and document reasonable
427     efforts to obtain and upload to the central database the wireless communication device's serial
428     number and IMEI number within 15 calendar days of the date of the transaction; and
429          (c) the central database information for the wireless communication device may not be
430     considered submitted for purposes of Subsection 13-32a-109(1)(b) until the earlier of when:
431          (i) the wireless communication device's serial number and IMEI number have both
432     been uploaded to the central database; or
433          (ii) more than 45 calendar days have passed since the date of the transaction.
434          (5) An automated recycling kiosk operator may not purchase more than 10 wireless
435     communication devices with serial numbers or IMEI numbers that cannot be electronically
436     extracted by an automated recycling kiosk at the time of the transaction from the same
437     individual during the same calendar year.
438          (6) An automated recycling kiosk operator may only purchase a wireless
439     communication device with serial numbers or IMEI numbers that cannot be electronically
440     extracted by an automated recycling kiosk at the time of the transaction in a single-item
441     transaction.
442          Section 5. Section 13-32a-106 is amended to read:
443          13-32a-106. Transaction information provided to the central database --
444     Protected information.
445          (1) (a) [A] Except as provided in Subsection 13-32a-104.6(4), a pawn or secondhand
446     business shall transmit electronically in a compatible format information required to be
447     recorded under Sections 13-32a-103, 13-32a-104, [and] 13-32a-104.5, and 13-32a-104.6 that is
448     capable of being transmitted electronically to the central database within 24 hours after
449     entering into the transaction.
450          (b) The division may specify by rule, made in accordance with Title 63G, Chapter 3,
451     Utah Administrative Rulemaking Act, the information capable of being transmitted
452     electronically under Subsection (1)(a).
453          (2) A pawn or secondhand business shall maintain tickets generated by the pawn or
454     secondhand business and shall maintain the tickets in a manner so that the tickets are available
455     to local law enforcement agencies as required by this chapter and as requested by any law
456     enforcement agency as part of an investigation or reasonable random inspection conducted
457     pursuant to this chapter.
458          (3) (a) If a pawn or secondhand business experiences a computer or electronic
459     malfunction that affects its ability to report transactions as required in Subsection (1), the pawn
460     or secondhand business shall immediately notify the division and the local law enforcement
461     agency of the malfunction.
462          (b) The pawn or secondhand business shall solve the malfunction within three business
463     days or notify the division and the local law enforcement agency under Subsection (4).
464          (4) If the computer or electronic malfunction under Subsection (3) cannot be solved
465     within three business days, the pawn or secondhand business shall notify the division and the
466     local law enforcement agency of the reasons for the delay and provide documentation from a
467     reputable computer maintenance company of the reasons why the computer or electronic
468     malfunction cannot be solved within three business days.
469          (5) A computer or electronic malfunction does not suspend the pawn or secondhand
470     business' obligation to comply with all other provisions of this chapter.
471          (6) During the malfunction under Subsections (3) and (4), the pawn or secondhand
472     business shall:
473          (a) arrange with the local law enforcement agency a mutually acceptable alternative
474     method by which the pawn or secondhand business provides the required information to the
475     local law enforcement agency; and
476          (b) a pawn or secondhand business shall maintain the tickets and other related
477     information required under this chapter in a written form.
478          (7) A pawn or secondhand business that violates the electronic transaction reporting
479     requirement of this section is subject to an administrative fine of $50 per day if:
480          (a) the pawn or secondhand business is unable to submit the information electronically
481     due to a computer or electronic malfunction;
482          (b) the three business day period under Subsection (3) has expired; and
483          (c) the pawn or secondhand business has not provided documentation regarding its
484     inability to solve the malfunction as required under Subsection (4).
485          (8) A pawn or secondhand business is not responsible for a delay in transmission of
486     information that results from a malfunction in the central database.
487          (9) A violation of this section is a Class B misdemeanor and is also subject to civil
488     penalties under Section 13-32a-110.
489          Section 6. Section 13-32a-109 is amended to read:
490          13-32a-109. Holding period for property -- Return of property -- Penalty.
491          (1) (a) A pawnbroker may sell property pawned to the pawnbroker if:
492          (i) 15 calendar days have passed after the day on which the pawnbroker submits the
493     information and any required photograph to the central database;
494          (ii) the contract period between the pawnbroker and the pledgor expires; and
495          (iii) the pawnbroker has complied with Sections 13-32a-103, 13-32a-104, and
496     13-32a-106.
497          (b) If property, including scrap jewelry, is purchased by a pawn or secondhand
498     business, the pawn or secondhand business may sell the property if the pawn or secondhand
499     business has held the property for 15 calendar days after the day on which the pawn or
500     secondhand business submits the information to the central database, and complied with
501     Sections 13-32a-103, 13-32a-104, 13-32a-104.6, and 13-32a-106, except that the pawn or
502     secondhand business is not required to hold precious metals or numismatic items under this
503     Subsection (1)(b).
504          (c) (i) This Subsection (1) does not preclude a law enforcement agency from requiring
505     a pawn or secondhand business to hold property if necessary in the course of an investigation.
506          (ii) If the property is pawned, the law enforcement agency may require the property be
507     held beyond the terms of the contract between the pledgor and the pawnbroker.
508          (iii) If the property is sold to the pawn or secondhand business, the law enforcement
509     agency may require the property be held if the pawn or secondhand business has not sold the
510     article.
511          (d) If the law enforcement agency requesting a hold on property under this Subsection
512     (1) is not the local law enforcement agency, the requesting law enforcement agency shall notify
513     the local law enforcement agency of the request and also the pawn or secondhand business.
514          (2) If a law enforcement agency requires the pawn or secondhand business to hold
515     property as part of an investigation, the law enforcement agency shall provide to the pawn or
516     secondhand business a hold form issued by the law enforcement agency, that:
517          (a) states the active case number;
518          (b) confirms the date of the hold request and the property to be held; and
519          (c) facilitates the ability of the pawn or secondhand business to track the property when
520     the prosecution takes over the case.
521          (3) If property is not seized by a law enforcement agency that has placed a hold on the
522     property, the property shall remain in the custody of the pawn or secondhand business until
523     further disposition by the law enforcement agency, and as consistent with this chapter.
524          (4) The initial hold by a law enforcement agency is for a period of 90 days. If the
525     property is not seized by the law enforcement agency, the property shall remain in the custody
526     of the pawn or secondhand business and is subject to the hold unless exigent circumstances
527     require the property to be seized by the law enforcement agency.
528          (5) (a) A law enforcement agency may extend any hold for up to an additional 90 days
529     if circumstances require the extension.
530          (b) If there is an extension of a hold under Subsection (5)(a), the requesting law
531     enforcement agency shall notify the pawn or secondhand business that is subject to the hold
532     prior to the expiration of the initial 90 days.
533          (c) A law enforcement agency may not hold an item for more than the 180 days
534     allowed under Subsections (5)(a) and (b) without obtaining a court order authorizing the hold.
535          (6) A hold on property under Subsection (2) takes precedence over any request to claim
536     or purchase the property subject to the hold.
537          (7) If an original victim who has complied with Section 13-32a-115 has not been
538     identified and the hold or seizure of the property is terminated, the law enforcement agency
539     requiring the hold or seizure shall within 15 business days after the termination:
540          (a) notify the pawn or secondhand business in writing that the hold or seizure has been
541     terminated;
542          (b) return the property subject to the seizure to the pawn or secondhand business; or
543          (c) if the property is not returned to the pawn or secondhand business, advise the pawn
544     or secondhand business either in writing or electronically of the specific alternative disposition
545     of the property.
546          (8) (a) If the original victim who has complied with Section 13-32a-115 has been
547     identified and the hold or seizure of property is terminated, the law enforcement agency
548     requiring the hold or seizure shall:
549          (i) document the original victim who has positively identified the property; and
550          (ii) provide the documented information concerning the original victim to the
551     prosecuting agency to determine whether continued possession of the property is necessary for
552     purposes of prosecution, as provided in Section 24-3-103.
553          (b) If the prosecuting agency determines that continued possession of the property is
554     not necessary for purposes of prosecution, as provided in Section 24-3-103, the prosecuting
555     agency shall provide a written or electronic notification to the law enforcement agency that
556     authorizes the return of the property to an original victim who has complied with Section
557     13-32a-115.
558          (c) (i) A law enforcement agency shall promptly provide notice to the pawn or
559     secondhand business of the authorized return of the property under this Subsection (8).
560          (ii) The notice shall identify the original victim, advise the pawn or secondhand
561     business that the original victim has identified the property, and direct the pawn or secondhand
562     business to release the property to the original victim at no cost to the original victim.
563          (iii) If the property was seized, the notice shall advise that the property will be returned
564     to the original victim within 15 days after the day on which the pawn or secondhand business
565     receives the notice, except as provided under Subsection (8)(d).
566          (d) The pawn or secondhand business shall release property under Subsection (8)(c)
567     unless within 15 days of receiving the notice the pawn or secondhand business complies with
568     Section 13-32a-116.5.
569          (9) If the law enforcement agency does not notify the pawn or secondhand business
570     that a hold on the property has expired, the pawn or secondhand business shall send a letter by
571     registered or certified mail to the law enforcement agency that ordered the hold and inform the
572     agency that the holding period has expired. The law enforcement agency shall respond within
573     30 days by:
574          (a) confirming that the hold period has expired and that the pawn or secondhand
575     business may manage the property as if acquired in the ordinary course of business; or
576          (b) providing written notice to the pawn or secondhand business that a court order has
577     continued the period of time for which the item shall be held.
578          (10) The written notice under Subsection (9)(b) is considered provided when:
579          (a) personally delivered to the pawn or secondhand business with a signed receipt of
580     delivery;
581          (b) delivered to the pawn or secondhand business by registered or certified mail; or
582          (c) delivered by any other means with the mutual assent of the law enforcement agency
583     and the pawn or secondhand business.
584          (11) If the law enforcement agency does not respond within 30 days under Subsection
585     (9), the pawn or secondhand business may manage the property as if acquired in the ordinary
586     course of business.
587          (12) A violation of this section is a class B misdemeanor and is also subject to civil
588     penalties under Section 13-32a-110.
589          Section 7. Section 13-32a-110 is amended to read:
590          13-32a-110. Administrative or civil penalties -- Criminal prosecution.
591          (1) A violation of any of the following sections is subject to an administrative or civil
592     penalty of not more than $500:
593          (a) Section 13-32a-104, ticket required to be maintained;
594          (b) Section 13-32a-104.5, ticket by coin dealer to be maintained;
595          (c) Section 13-32a-104.6, ticket by automated recycling kiosk operator to be
596     maintained;
597          [(c)] (d) Section 13-32a-106, transaction information provided to law enforcement;
598          [(d)] (e) Section 13-32a-108, retention of records;
599          [(e)] (f) Section 13-32a-109, holding period for pawned or purchased property;
600          [(f)] (g) Section 13-32a-110.5, transactions with certain individuals prohibited;
601          [(g)] (h) Section 13-32a-111, payment of fees as required; or
602          [(h)] (i) Section 13-32a-112.1, training requirements for pawn or secondhand business
603     employees and officers of participating law enforcement agencies.
604          (2) This section does not prohibit civil action by a governmental entity regarding the
605     pawn or secondhand business' operation or licenses.
606          (3) The imposition of civil penalties under this section does not prohibit criminal
607     prosecution by a governmental entity for criminal violations of this chapter.
608          Section 8. Repealer.
609          This bill repeals:
610          Section 13-32a-103, Compliance with criminal code and this chapter.