California Assembly Bill AB391 Amended / Bill

 BILL NUMBER: AB 391AMENDED BILL TEXT AMENDED IN SENATE JANUARY 23, 2012 AMENDED IN SENATE SEPTEMBER 8, 2011 AMENDED IN ASSEMBLY MAY 27, 2011 INTRODUCED BY Assembly Member Pan  (   Principal coauthor:   Senator   Steinberg   )   (   Coauthors:   Senators   Berryhill,   Cannella,   Strickland,   Walters,   and Yee   )  FEBRUARY 14, 2011  An act to add Section 399.32 to the Public Utilities Code, relating to energy.   An act to amend Sections 21628, 21641, and 21642 of, and to add Section 21642.5 to, the Business and Professions Code, and to amend Sections 21300 and 21301 of, and to repeal and add Section 21208 of, the Financial Code, relating to personal property, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.  LEGISLATIVE COUNSEL'S DIGEST AB 391, as amended, Pan.  Energy: renewable energy resources: local publicly owned electric utility.   Secondhand dealers and pawnbrokers: electronic reporting.   Existing law generally requires secondhand dealers and coin dealers, as defined, to report specified transactions to the local law enforcement agency where their businesses are located. Under existing law, secondhand dealers and coin dealers are required to report this information using an electronic reporting system 12 months after the Department of Justice develops that system.   This bill would instead require that secondhand dealers and coin dealers report this information using the electronic reporting system on and after the date that the system is implemented.   Existing law requires a local law enforcement agency to issue a license to engage in the business of a secondhand dealer or pawnbroker to an applicant who meets designated criteria. Existing law authorizes the local licensing authority and the Department of Justice to charge an initial licensure fee and a renewal fee, as specified.   This bill would eliminate the authority of the local licensing authority to charge an initial licensure fee and would authorize the Department of Justice to charge a licensure fee and a renewal fee of no more than $300, as specified. The bill would require that the fees assessed by the department, except as specified, be deposited in the Secondhand Dealer and Pawnbroker Fund, which the bill would create in the State Treasury. The bill would continuously appropriate the money in the fund to the department for the purpose of paying for specified regulatory costs, including the cost of implementing, operating, and maintaining the electronic reporting system. Because the bill would continuously appropriate specified fee revenue to the department, the bill would make an appropriation. The bill would make other related conforming changes.   The bill would declare that it is to take effect immediately as an urgency statute.   Existing law creates the California renewables portfolio standard program (RPS program) and the Renewable Energy Resources Program to increase the amount of electricity generated per year from eligible renewable energy resources, as defined.   Existing law, effective on ____, requires the governing board of a local publicly owned electric utility, as defined, to adopt a program for the enforcement of the RPS program on or before January 1, 2012. The governing board of a local publicly owned electric utility is authorized to adopt rules permitting the utility to apply excess procurement in one compliance period to subsequent compliance periods in the same manner as allowed for retail sellers, as defined.   This bill would, instead, authorize rules permitting the local utility to apply excess procurement in one compliance period to subsequent compliance periods in the same manner as allowed for retail sellers, with certain specified exceptions.  Vote:  majority   2/3  . Appropriation:  no   yes  . Fiscal committee: no   yes  . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   It is the intent of the Legislature to enact legislation that fully funds the cost of developing and implementing a statewide, uniform electronic reporting system for reporting the acquisition of secondhand, tangible personal property through the imposition of a fee upon the application for and renewal of a license to act as a secondhand dealer or pawnbroker.   It is further the intent of the Legislature to relieve all secondhand dealers, coin dealers, and pawnbrokers of the inherent costs and burdens imposed under existing law that requires these businesses to report their daily acquisitions of tangible personal property on paper forms limited to a single transaction. The Legislature finds that the costs associated with printing, manually completing, and mailing or delivering hundreds to thousands of paper reports is an unnecessary and expensive burden on these businesses and represents an unnecessary risk of loss of consumer financial information, and that the cost of electronically collecting multiple transactions on a daily basis through the uniform electronic reporting system is significantly more cost effective and a benefit to these businesses.   SEC. 2.   Section 21628 of the   Business and Professions Code   is amended to read:  21628. Every secondhand dealer or coin dealer described in Section 21626 shall report daily, or on the first working day after receipt or purchase of the property, on forms either approved or provided at actual cost by the Department of Justice, all tangible personal property, except for firearms, which he or she has purchased, taken in trade, taken in pawn, accepted for sale on consignment, or accepted for auctioning, to the chief of police or to the sheriff, in accordance with the provisions of Sections 21630 and 21633 and subdivision (j) of this section. The report shall be legible, prepared in English, completed where applicable, and include, but not be limited to, the following information: (a) The name and current address of the intended seller or pledger of the property. (b) The identification of the intended seller or pledger. The identification of the seller or pledger of the property shall be verified by the person taking the information. The verification shall be valid if the person taking the information reasonably relies on any one of the following documents, provided that the document is currently valid or has been issued within five years and contains a photograph or description, or both, of the person named on it, and, where applicable, is signed by the person, and bears a serial or other identifying number: (1) A passport of the United States. (2) A driver's license issued by any state, or Canada. (3) An identification card issued by any state. (4) An identification card issued by the United States. (5) A passport from any other country in addition to another item of identification bearing an address. (6) A Matricula Consular in addition to another item of identification bearing an address. (c) A complete and reasonably accurate description of serialized property, including, but not limited to, the following: serial number and other identifying marks or symbols, owner-applied numbers, manufacturer's named brand, and model name or number. Watches need not be disassembled when special skill or special tools are required to obtain the required information, unless specifically requested to do so by a peace officer. A special tool does not include a penknife, caseknife, or similar instrument and disassembling a watch with a penknife, caseknife, or similar instrument does not constitute a special skill. In all instances where the required information may be obtained by removal of a watchband, then the watchband shall be removed. The cost associated with opening the watch shall be borne by the pawnbroker, secondhand dealer, or customer. (d) A complete and reasonably accurate description of nonserialized property, including, but not limited to, the following: size, color, material, manufacturer's pattern name (when known), owner-applied numbers and personalized inscriptions, and other identifying marks or symbols. Watches need not be disassembled when special skill or special tools are required to obtain the required information, unless specifically requested to do so by a peace officer. A special tool does not include a penknife, caseknife, or similar instrument and disassembling a watch with a penknife, caseknife, or similar instrument does not constitute a special skill. In all instances where the required information may be obtained by removal of a watchband, then the watchband shall be removed. The cost associated with opening the watch shall be borne by the pawnbroker, secondhand dealer, or customer. (e) A certification by the intended seller or pledger that he or she is the owner of the property or has the authority of the owner to sell or pledge the property. (f) A certification by the intended seller or pledger that to his or her knowledge and belief the information is true and complete. (g) A legible fingerprint taken from the intended seller or pledger, as prescribed by the Department of Justice. This requirement does not apply to a coin dealer, unless required pursuant to local regulation. (h) When a secondhand dealer complies with all of the provisions of this section, he or she shall be deemed to have received from the seller or pledger adequate evidence of authority to sell or pledge the property for all purposes included in this article, and Division 8 (commencing with Section 21000) of the Financial Code. In enacting this subdivision, it is the intent of the Legislature that its provisions shall not adversely affect the implementation of, or prosecution under, any provision of the Penal Code. (i) Any person who conducts business as a secondhand dealer at any gun show or event, as defined in Section 478.100 of Title 27 of the Code of Federal Regulations, or its successor, outside the jurisdiction that issued the secondhand dealer license in accordance with subdivision (d) of Section 21641, may be required to submit a duplicate of the transaction report prepared pursuant to this section to the local law enforcement agency where the gun show or event is conducted. (j) (1) The Department of Justice shall, in consultation with appropriate local law enforcement agencies, develop clear and comprehensive descriptive categories denoting tangible personal property subject to the reporting requirements of this section. These categories shall be incorporated by secondhand dealers and coin dealers described in Section 21626 for purposes of the reporting requirements set forth herein. Any required report shall be transmitted by electronic means.  The   Upon the avail   ability of sufficient funds in the Secondhand Dealer and Pawnbroker Fund created pursuant to Section 21642.5, the  Department of Justice  and local law enforcement agencies  , in consultation with representatives from the secondhand dealer and coin dealer businesses, shall  promptly  develop a  standard format   statewide, uniform electronic reporting system  to be used  statewide  to transmit this report electronically. (2)  Twelve months after the format and the categories described in paragraph (1) have been developed   On   and after   the date that the Department of Justice   implements   the statewide, uniform electronic reporting system described in paragraph (1)  , each secondhand dealer and coin dealer shall electronically report using this  format   system  the information required by this section under  these   the  reporting categories  described in paragraph (1)  . Until that time, each secondhand dealer and coin dealer may  either  continue to report this information using existing forms and procedures  or may begin electronically reporting this information under the reporting categories and using the format described in paragraph (1) as soon as each has been developed  . (3) A coin dealer who engages in less than 10 transactions each week in which he or she has purchased, taken in trade, taken in pawn, accepted for sale or consignment, or accepted for auctioning tangible personal property, shall report the information required by this section under the reporting categories described in paragraph (1) on a form developed by the Attorney General that the coin dealer shall transmit each day by facsimile transmission or by mail to the chief of police or sheriff. A transaction shall consist of not more than one item. Nothing in this section shall prohibit up to 10 transactions with the same customer per week, provided that the cumulative total per week for all customers does not exceed 10 transactions. Until that form is developed, these coin dealers shall continue to report information required by this section using existing forms and procedures. If these transactions increase to 10 per week, the coin dealer shall electronically report using the  format   statewide, uniform electronic reporting system  described in paragraph (1) the information required by this section beginning six months after his or her transactions exceed 10 per week or 12 months after the  format   system  described in paragraph (1) has been  developed   implemented  , whichever occurs later. (4) For purposes of this subdivision, "item" shall mean any single physical article. However, with respect to a commonly accepted grouping of articles that are purchased as a set, including, but not limited to, a pair of earrings or place settings of china, silverware, or other tableware, "item" shall mean that commonly accepted grouping. (5) Nothing in this subdivision shall be construed as excepting a secondhand dealer from the fingerprinting requirement of subdivision (g). (k) Nothing in this section shall be construed to exempt a person licensed as a firearms dealer pursuant to Sections 26700 to 26915, inclusive, of the Penal Code from the reporting requirements for the delivery of firearms pursuant to Sections 26700 to 26915, inclusive, of the Penal Code. (l) This section shall become operative on July 1, 2010.  SEC. 3.   Section 21641 of the   Business and Professions Code   is amended to read:  21641. (a) The chief of police, the sheriff or, where appropriate, the police commission, shall accept an application for and grant a license permitting the licensee to engage in the business of secondhand dealer, as defined in Section 21626, to an applicant who has not been convicted of an attempt to receive stolen property or any other offense involving stolen property. Prior to the granting of a license, the licensing authority shall submit the application to the Department of Justice. If the Department of Justice does not comment on the application within 30 days thereafter, the licensing authority may grant the applicant a license. All forms for application and licensure, and license renewal, shall be prescribed and provided by the Department of Justice. A fee may be charged to the applicant  as specified by the Department of Justice  and the local licensing authority for processing the initial license application   as specified in Section 21642.5  . (b) For the purposes of this section, "convicted" means a plea or verdict of guilty or a conviction following a plea of nolo contendere. (c) Notwithstanding subdivisions (a) and (b), no person shall be denied a secondhand dealer's license solely on the grounds that he or she violated any provision contained in  Article 4 (commencing with Section 21625)   this article  or Article 5 (commencing with Section 21650)  of this chapter  , or any provision contained in Chapter 2 (commencing with Section 21200) of Division 8 of the Financial Code, unless the violation demonstrates a pattern of conduct. (d) Any person licensed as a firearms dealer pursuant to Sections 26700 to 26915, inclusive, of the Penal Code, who is conducting business at gun shows or events pursuant to subdivision (b) of Section 26805 of the Penal Code, and who has a valid secondhand dealer license granted by the appropriate local authorities in the jurisdiction where the firearms dealer license has been granted, shall be authorized to conduct business as a secondhand dealer at any gun show or event, as defined in Section 478.100 of Title 27 of the Code of Federal Regulations, or its successor, without regard to the jurisdiction within this state that issued the secondhand dealer license pursuant to subdivision (a) of this section. No additional fees or separate secondhand dealer license shall be required by any agency having jurisdiction over the locality where the gun show or event is conducted. However, the person shall otherwise be subject to, and comply with, the requirements of this article when he or she acts as a secondhand dealer at the gun show or event to the same extent as if he or she were licensed as a secondhand dealer in the jurisdiction in which the gun show or event is being conducted.  SEC. 4.  Section 21642 of the   Business and Professions Code   is amended to read:  21642. (a) A license granted pursuant to Section 21641 shall be renewable the second year from the date of issue, and every other year thereafter, upon the filing of a renewal application and the payment of a license renewal fee specified by the licensing authority. The Department of Justice may also charge a fee  of not more than twelve dollars ($12) but not to exceed the actual processing costs of the department. After the department establishes a fee sufficient to reimburse the department for processing costs, the fee charged shall increase at a rate not to exceed the legislatively approved annual cost-of-living adjustments for the department's budget. The licensing authority shall collect the fee and transmit the fee and a copy of the renewed license to the Department of Justice  ,   as specified in Section 21642.5  . (b) The license shall be subject to forfeiture by the licensing authority and the licensee's activities as a secondhand dealer shall be subject to being enjoined pursuant to Section 21646 for breach of any of the following conditions: (1) The business shall be carried on only at the location designated on the license. The license shall designate all locations where property belonging to the business is stored. Property of the business may be stored at locations not designated on the license only with the written consent of the local licensing authority. (2) The license or a copy thereof, certified by the licensing authority, shall be displayed on the premises in plain view of the public. (3) The licensee shall not engage in any act which the licensee knows to be in violation of this article. (4) The licensee shall not be convicted of an attempt to receive stolen property or any other offense involving stolen property. For the purposes of this paragraph, "convicted" means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Any action which the chief of police, the sheriff or, where appropriate, the police commission, is permitted to take following the establishment of a conviction may be taken when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal, or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under the provisions of Section 1203.4 of the Penal Code. (c) Notwithstanding subdivisions (a) and (b), no person shall have his or her renewal application for a secondhand dealer's license denied, nor shall his or her secondhand dealer's license be forfeited solely on the grounds that he or she violated any provision contained in  Article 4 (commencing with Section 21625)   this article  or Article 5 (commencing with Section 21650)  of this chapter  , or any provision contained in Chapter 2 (commencing with Section 21200) of Division 8 of the Financial Code, unless the violation demonstrates a pattern of conduct.  SEC. 5.   Section 21642.5 is added to the   Business and Professions Code   , to read:   21642.5. (a) The Department of Justice may require each applicant for an initial license under Section 21641 of this code or Section 21300 of the Financial Code and each applicant for renewal of a license under Section 21642 of this code or Section 21301 of the Financial Code to pay a fee not to exceed three hundred dollars ($300), except that the fee may be increased at a rate not to exceed any increase in the California Consumer Price Index as compiled and reported by the Department of Industrial Relations. (b) The fees assessed pursuant to subdivision (a) shall be no more than necessary to cover the reasonable regulatory costs to the department of doing all of the following: (1) Processing initial license applications under Section 21641 of this code and Section 21300 of the Financial Code. (2) Processing renewal applications under Section 21642 of this code and Section 21301 of the Financial Code. (3) Implementing, operating, and maintaining the electronic reporting system described in subdivision (j) of Section 21628. (4) Processing the applicant's fingerprints for purposes of conducting a background check. (c) The portion of any fee assessed pursuant subdivision (a) that is attributable to processing the applicant's fingerprints shall be deposited in the account described in subdivision (e) of Section 11105 of the Penal Code. The remainder of the fee shall be deposited in the Secondhand Dealer and Pawnbroker Fund, which is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, the revenue in the Secondhand Dealer and Pawnbroker Fund is continuously appropriated to the Department of Justice for the purpose of paying for the costs described in paragraphs (1) to (3), inclusive, of subdivision (b).   SEC. 6.   Section 21208 of the   Financial Code   is repealed.   21208. Every pawnbroker shall report daily or on the first working day after receipt or purchase, all descriptions of all property received in pledge or purchased as tangible personal property, as defined in Section 21627 of the Business and Professions Code, in whatever quantity received, including property purchased as tangible personal property at wholesale, tangible personal property taken in for sale or possessed on consignment for sale, and tangible personal property taken in trade. If the transaction took place within the territorial limits of an incorporated city, the report shall be submitted to the police chief executive of the city or his or her designee, by mail unless otherwise agreed upon by the pawnbroker and the police chief executive or his or her designee. If the transaction took place outside the territorial limits of an incorporated city, the report shall be submitted to the sheriff of the county or his or her designee, by mail unless otherwise agreed upon by the pawnbroker and the sheriff or his or her designee. All reports shall be on forms approved or provided at actual cost by the Department of Justice. The police chief executive or sheriff who receives a report on a form filed pursuant to the provisions of this section shall daily submit a legible copy of the transactions to the Department of Justice.   SEC. 7.   Section 21208 is added to the   Financial Code   , to read:   21208. A pawnbroker shall comply with the reporting requirements imposed on secondhand dealers under Article 4 (commencing with Section 21625) of Chapter 9 of Division 8 of the Business and Professions Code.   SEC. 8.   Section 21300 of the   Financial Code   is amended to read:  21300. (a) The chief of police, the sheriff, or, where appropriate, the police commission, shall accept an application for and grant a license permitting the licensee to engage in the business of pawnbroker, as defined in Section 21000, at the address indicated on the application, to an applicant who has complied with the requirements of Sections 21303, 21304, and 21305 and has not been convicted of an attempt to receive stolen property or any other offense involving stolen property. Prior to the granting of a license, the licensing authority shall submit the application to the Department of Justice. If the Department of Justice does not comment on the application within 30 days thereafter, the licensing authority shall grant the applicant a license. All forms for application and licensure, and license renewal, shall be prescribed and provided by the Department of Justice. A fee  not to exceed the actual processing costs to the Department of Justice and the chief of police, the sheriff, or where appropriate, the police commission may be charged to the applicant   may be charged to the applicant by the Department of Justice, as specified in Section 21642.5 of the Business and Professions Code,  for processing the initial license application. (b) For the purposes of this section, "convicted" means a plea or verdict of guilty or a conviction following a plea of nolo contendere. (c) Notwithstanding subdivisions (a) and (b), no person shall be denied a pawnbroker's license solely on the grounds that he or she violated any provision contained in Chapter 1 (commencing with Section 21000) or Chapter 2 (commencing with Section 21200)  of this division or   , or any provision contained in  Article 4 (commencing with Section 21625) or Article 5 (commencing with Section 21650) of Chapter 9 of Division 8 of the Business and Professions Code  ,  unless the violation demonstrates a pattern of conduct.  SEC. 9.   Section 21301 of the   Financial Code   is amended to read:  21301. (a) A license granted pursuant to Section 21300 shall be renewable the second year from the date of issue, and every other year thereafter, upon the filing of a renewal application  , payment of a renewal fee specified by the licensing authority,  and compliance with the requirements of Section 21303. The Department of Justice  and the chief of police, the sheriff, or, where appropriate, the police commission may charge a fee for the license renewal not to exceed the actual processing costs. The licensing authority shall collect the fee and transmit the fee and a copy of the renewed license to the Department of Justice  may also require the licensee to pay a fee as described in Section 21642.5 of the Business and Professions Code  . (b) The license shall be subject to forfeiture by the licensing authority, and the licensee's activities as a pawnbroker shall be subject to being enjoined pursuant to Section 21302, for breach of any of the following conditions: (1) The business shall be carried on only at the location designated on the license. The license shall designate all locations where property belonging to the business is stored. Property of the business may be stored at locations not designated on the license only with the written consent of the local licensing authority. (2) The license or a copy thereof, certified by the licensing authority, shall be displayed on the premises in plain view of the public. (3) The licensee shall not engage in any act that the licensee knows to be in violation of this article. (4) The licensee shall not be convicted of an attempt to receive stolen property or other offense involving stolen property. For the purposes of this paragraph, "convicted" means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Any action that the chief of police, the sheriff, or, where appropriate, the police commission, is permitted to take following that conviction may be taken when the time for appeal has elapsed, the judgment of conviction has been affirmed on appeal, or an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code. (c) Notwithstanding subdivisions (a) and (b), no renewal application for a pawnbroker's license may be denied, nor may his or her pawnbroker's license be forfeited, solely on the grounds that the applicant violated any provision contained in Chapter 1 (commencing with Section 21000)  ,   or  Chapter 2 (commencing with Section 21200)  of this division  , or  any provision contained in  Article 4 (commencing with Section 21625) or Article 5 (commencing with Section 21650) of Chapter 9 of Division 8  ,  of the Business and Professions Code  ,  unless the violation demonstrates a pattern of conduct.  SEC. 10.   The Legislature finds and declares that the initial licensure and renewal fees authorized by Section 21642.5 of the Business and Professions Code, as proposed to be added by Section 5 of this act, are necessary to implement and maintain the statewide, uniform electronic reporting system and constitute charges imposed for the specific benefit of secondhand dealers and pawnbrokers under paragraph (1) of subdivision (b) of Section 3 of Article XIII A of the California Constitution. The Legislature finds and declares that these fees eliminate the costly and risk-prone paper reporting system required of these businesses under existing law.   The Legislature further finds and declares that the initial licensure and renewal fees authorized by Section 21642.5 of the Business and Professions Code, as proposed to be added by Section 5 of this act, are imposed for the reasonable regulatory costs to the state incident to issuing licenses and performing investigations under paragraph (3) of subdivision (b) of Section 3 of Article XIII A of the California Constitution. The Legislature finds and declares that these fees are no more than necessary to offset the costs incurred by the Department of Justice in processing licensure and renewal applications for secondhand dealers and pawnbrokers and implementing and maintaining a statewide, uniform electronic reporting system required to effectuate the Legislative intent expressed in Section 21625 of the Business and Professions Code.   SEC. 11.   This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:   In order to make the uniform, statewide electronic reporting system available to secondhand dealers and pawnbrokers as soon as possible, it is necessary that this act take effect immediately.   SECTION 1.   Section 399.32 is added to the Public Utilities Code, to read: 399.32. Notwithstanding paragraph (1) of subdivision (d) of Section 399.30, the governing board of a local publicly owned electric utility may adopt rules permitting the utility to apply excess procurement of eligible renewable energy resources from one compliance period to subsequent compliance periods in the same manner as allowed for retail sellers pursuant to Section 399.13, with the following exceptions: (a) Consistent with subdivision (b), excess procurement of eligible renewable energy resources from a contract of more than seven years in duration that was executed before January 1, 2010, may be applied to subsequent compliance periods without any restrictions. (b) Excess procurement accumulated through December 31, 2010, may be applied to subsequent compliance periods if all of the following conditions are satisfied: (1) The excess is calculated based on annual eligible renewable energy resources procurement targets in effect since 2006. (2) The procurement targets, as amended, specified the achievement of not less than a 20 percent renewables portfolio standard by no later than December 31, 2010. (3) The procurement targets increased for each intervening year before 2010.