Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 394 Second Substitute (2019GS)

Sponsor

Rep. Hutchings, E.

Final action

Governor Signed 3/26/2019

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• modifies, deletes, and adds definitions;
• makes consistent references to property and other terminology;
• addresses coin dealers, including ticket requirements;
• requires tickets be maintained by pawn or secondhand businesses with specified content;
• modifies provisions related to a central database;
• repeals outdated language;
• addresses retention and inspection of records;
• outlines the holding period for property;
• addresses seizure of property;
• provides for administrative penalties;
• addresses fees;
• changes make up and duties of Pawnshop and Secondhand Merchandise Advisory Board;
• addresses training;

Every vote on this bill

Bill text

PAWNSHOP AND SECONDHAND MERCHANDISE
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Eric K. Hutchings
Senate Sponsor: 
Curtis S. Bramble
LONG TITLE
General Description:
This bill addresses pawnshop and secondhand merchandise provisions.
Highlighted Provisions:
This bill:
▸ modifies, deletes, and adds definitions;
▸ makes consistent references to property and other terminology;
▸ addresses coin dealers, including ticket requirements;
▸ requires tickets be maintained by pawn or secondhand businesses with specified
content;
▸ modifies provisions related to a central database;
▸ repeals outdated language;
▸ addresses retention and inspection of records;
▸ outlines the holding period for property;
▸ addresses seizure of property;
▸ provides for administrative penalties;
▸ addresses fees;
▸ changes make up and duties of Pawnshop and Secondhand Merchandise Advisory
Board;
▸ addresses training;
▸ repeals language regarding certain exempt businesses;
▸ addresses the Pawnbroker and Secondhand Merchandise Operations Restricted
Account;
▸ addresses preemption of local ordinances;
▸ provides for use of property for forensic testing;
▸ addresses disposition of property;
▸ repeals provisions related to property disposition if no criminal charges are filed;
▸ amends provisions related to receiving stolen property and duties of pawnbrokers,
secondhand businesses, and coin dealers; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
13-32a-102
, as last amended by Laws of Utah 2018, Chapter 238
13-32a-103
, as last amended by Laws of Utah 2007, Chapter 352
13-32a-103.5
, as last amended by Laws of Utah 2012, Chapter 399
13-32a-104
, as last amended by Laws of Utah 2018, Chapter 238
13-32a-104.5
, as enacted by Laws of Utah 2009, Chapter 272
13-32a-105
, as last amended by Laws of Utah 2009, Chapter 272
13-32a-106
, as last amended by Laws of Utah 2012, Chapter 284
13-32a-106.5
, as last amended by Laws of Utah 2012, Chapters 170, 284 and last
amended by Coordination Clause, Laws of Utah 2012, Chapter 284
13-32a-108
, as last amended by Laws of Utah 2012, Chapter 284
13-32a-109
, as last amended by Laws of Utah 2016, Chapter 421
13-32a-109.5
, as last amended by Laws of Utah 2016, Chapter 421
13-32a-110
, as last amended by Laws of Utah 2012, Chapter 284
13-32a-110.5
, as enacted by Laws of Utah 2012, Chapter 284
13-32a-111
, as last amended by Laws of Utah 2012, Chapter 284
13-32a-112
, as last amended by Laws of Utah 2016, Chapter 421
13-32a-112.5
, as last amended by Laws of Utah 2012, Chapter 284
13-32a-113
, as last amended by Laws of Utah 2009, Chapter 272
13-32a-114
, as last amended by Laws of Utah 2007, Chapter 352
13-32a-115
, as last amended by Laws of Utah 2016, Chapter 421
13-32a-116
, as last amended by Laws of Utah 2016, Chapter 421
13-32a-116.5
, as enacted by Laws of Utah 2016, Chapter 421
76-6-408
, as last amended by Laws of Utah 2013, Chapter 187
76-6-412
, as last amended by Laws of Utah 2018, Chapter 265
ENACTS:
13-32a-103.1
, Utah Code Annotated 1953
13-32a-112.1
, Utah Code Annotated 1953
REPEALS:
13-32a-107
, as last amended by Laws of Utah 2010, Chapter 167
13-32a-117
, as last amended by Laws of Utah 2014, Chapter 189
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
13-32a-102
 is amended to read:
13-32a-102.
Definitions.
As used in this chapter:
(1) "Account" means the Pawnbroker and Secondhand Merchandise Operations
Restricted Account created in Section 
13-32a-113
.
(2) "Antique item" means an item:
(a) that is generally older than 25 years;
(b) whose value is based on age, rarity, condition, craftsmanship, or collectability;
(c) that is furniture or other decorative objects produced in a previous time period, as
distinguished from new items of a similar nature; and
(d) obtained from auctions, estate sales, other antique shops, and individuals.
(3) "Antique shop" means a business operating at an established location [
and that
offers for
] 
that deals primarily in the purchase, exchange, or
 sale 
of
 antique items.
(4) "Board" means the 
Pawnshop and
 Secondhand Merchandise Advisory Board
created by this chapter.
(5) "Central database" or "database" means the electronic database created and
operated under Section 
13-32a-105
.
(6) "Children's product" means a used item that is for the exclusive use of children, or
for the care of children, including clothing and toys.
(7) "Children's product resale business" means a business operating at a commercial
location and primarily selling children's products.
(8) "Coin" means a piece of currency, usually metallic and usually in the shape of a
disc that is:
(a) stamped metal, and issued by a government as monetary currency; or
(b) (i) worth more than its current value as currency; and
(ii) worth more than its metal content value.
(9) "Coin dealer" means a person [
or business
] whose sole business activity is the
selling and purchasing of [
coins
] 
numismatic items
 and precious metals.
(10) "Collectible paper money" means paper currency that is no longer in circulation
and is sold and purchased for the paper currency's collectible value.
[
(10)
] 
(11) (a)
 "Commercial grade precious metals" or "precious metals" means ingots,
monetized bullion, art bars, medallions, medals, tokens, and currency that are marked by the
refiner or fabricator indicating their fineness and include:
[
(a)
] 
(i)
 .99 fine or finer ingots of gold, silver, platinum, palladium, or other precious
metals; or
[
(b)
] 
(ii)
 .925 fine sterling silver ingots, art bars, and medallions.
(b) "Commercial grade precious metals" or "precious metals" does not include jewelry.
(12) "Consignment shop" means a business, operating at an established location:
(a) that deals primarily in the offering for sale property owned by a third party; and
(b) where the owner of the property only receives consideration upon the sale of the
property by the business.
[
(11)
] 
(13)
 "Division" means the Division of Consumer Protection 
created
 in Chapter
1, Department of Commerce.
[
(12) "Identification" means a valid United States federal or state-issued photo personal
identification, including a United States passport, a United States passport card, United States
military personal identification, and a driver license.
]
(14) "Exonumia" means a privately issued token for trade that is sold and purchased
for the token's collectible value.
(15) "Gift card" means a record that:
(a) is usable at:
(i) a single merchant; or
(ii) a specified group of merchants;
(b) is prefunded before the record is used; and
(c) can be used for the purchase of goods or services.
(16) "Identification" means any of the following non-expired forms of identification
issued by a state government, the United States government, or a federally recognized Indian
tribe, if the identification includes a unique number, photograph of the bearer, and date of birth:
(a) a United States Passport or United States Passport Card;
(b) a state-issued driver license;
(c) a state-issued identification card;
(d) a state-issued concealed carry permit;
(e) a United States military identification;
(f) a United States resident alien card;
(g) an identification of a federally recognized Indian tribe; or
(h) notwithstanding Section 
53-3-207
, a Utah driving privilege card.
(17) "Indicia of being new" means property that:
(a) is represented by the individual pawning or selling the property as new;
(b) is unopened in the original packaging; or
(c) possesses other distinguishing characteristics that indicate the property is new.
[
(13)
] 
(18)
 "Local law enforcement agency" means the law enforcement agency that
has direct responsibility for ensuring compliance with central database reporting requirements
for the jurisdiction where the [
pawnshop
] 
pawn
 or secondhand business is located.
[
(14) "Misappropriated" means stolen, embezzled, converted, obtained by theft, or
otherwise appropriated without authority of the lawful owner.
]
(19) "Numismatic item" means a coin, collectible paper money, or exonumia.
[
(15)
] 
(20)
 "Original victim" means a victim who is not a party to the pawn or sale
transaction and includes:
(a) an authorized representative designated in writing by the original victim; and
(b) an insurer who has indemnified the original victim for the loss of the described
property.
[
(16)
] 
(21)
 "Pawn [
and
] 
or
 secondhand business" means [
any
] 
a
 business operated by a
pawnbroker or secondhand merchandise dealer, or the owner or operator of the business.
[
(17) "Pawnbroker" means a person whose business engages in the following
activities:
]
[
(a) loans money on one or more deposits of personal property;
]
[
(b) deals in the purchase, exchange, or possession of personal property on condition of
selling the same property back again to the pledgor or depositor;
]
[
(c) loans or advances money on personal property by taking chattel mortgage security
on the property and takes or receives the personal property into his possession, and who sells
the unredeemed pledges;
]
[
(d) deals in the purchase, exchange, or sale of used or secondhand merchandise or
personal property; or
]
[
(e) engages in a licensed business enterprise as a pawnshop.
]
[
(18) "Pawnshop" means the physical location or premises where a pawnbroker
conducts business.
]
[
(19) "Pawn ticket" means a document upon which information regarding a pawn
transaction is entered when the pawn transaction is made.
]
[
(20)
] 
(22)
 "Pawn transaction" means
:
(a)
 an extension of credit in which an individual delivers property to a pawnbroker for
an advance of money and retains the right to redeem the property for the redemption price
within a fixed period of time[
.
]
;
(b) a loan of money on one or more deposits of personal property;
(c) the purchase, exchange, or possession of personal property on condition of selling
the same property back again to the pledgor or depositor; or
(d) a loan or advance of money on personal property by the pawnbroker taking chattel
mortgage security on the personal property, taking or receiving the personal property into the
pawnbroker's possession, and selling the unredeemed pledges.
(23) "Pawnbroker" means a person whose business:
(a) engages in a pawn transaction; or
(b) holds itself out as being in the business of a pawnbroker or pawnshop, regardless of
whether the person or business enters into pawn transactions or secondhand merchandise
transactions.
(24) "Pawnshop" means the physical location or premises where a pawnbroker
conducts business.
[
(21)
] 
(25)
 "Pledgor" means [
a person
] 
an individual
 who conducts a pawn transaction
with a pawnshop.
[
(22)
] 
(26)
 "Property" means [
any
] 
an article of
 tangible personal property
, numismatic
item, precious metal, gift card, transaction card, or other physical or digital card or certificate
evidencing store credit
.
[
(23) "Register" means the record of information required under this chapter to be
maintained by pawn and secondhand businesses. The register is an electronic record that is in a
format that is compatible with the central database.
]
[
(24)
] 
(27)
 "Retail media item" means recorded music, a movie, or a video game that is
produced and distributed in hard copy format for retail sale.
[
(25)
] 
(28)
 "Scrap jewelry" means any item purchased solely:
(a) for its gold, silver, or platinum content; and
(b) for the purpose of reuse of the metal content.
[
(26)
] 
(29)
 (a) "Secondhand merchandise dealer" means [
an owner or operator of a
] 
a
person whose
 business [
that
]:
[
(i) deals in the purchase, exchange, or sale of used or secondhand merchandise or
personal property; and
]
[
(ii) does not function as a pawnbroker.
]
(i) engages in a secondhand merchandise transaction; and
(ii) does not engage in a pawn transaction.
(b) "Secondhand merchandise dealer" includes a coin dealer.
[
(b)
] 
(c)
 "Secondhand merchandise dealer" does not include:
(i) [
the owner or operator of
] an antique shop 
when dealing in antique items
;
[
(ii) any class of businesses exempt by administrative rule under Section
13-32a-112.5
;
]
[
(iii) any
] 
(ii) a
 person [
or entity
] who operates 
an
 auction [
houses
] 
house
, flea
[
markets
] 
market
, or vehicle, vessel, and outboard motor dealers as defined in Section
41-1a-102
;
[
(iv)
] 
(iii)
 the sale of secondhand goods at events commonly known as "garage sales,"
"yard sales," [
or
] "estate sales
,
" 
"storage unit sales," or "storage unit auctions"
;
[
(v)
] 
(iv)
 the sale or receipt of secondhand books, magazines, [
or
] post cards[
;
]
, or
nonelectronic:
(A) card games;
(B) table-top games; or
(C) magic tricks;
[
(vi)
] 
(v)
 the sale or receipt of used merchandise donated to recognized nonprofit,
religious, or charitable organizations or any school-sponsored association, and for which no
compensation is paid;
[
(vii)
] 
(vi)
 the sale or receipt of secondhand clothing [
and
]
,
 shoes
, furniture, or
appliances
;
[
(viii)
] 
(vii)
 any person offering the person's own personal property for sale, purchase,
consignment, or trade via the Internet;
[
(ix)
] 
(viii)
 any person offering the personal property of others for sale, purchase,
consignment, or trade via the Internet, when that person [
or entity
] does not have, and is not
required to have, a local business or occupational license or other authorization for this activity;
[
(x)
] 
(ix)
 any owner or operator of a retail business that:
(A) receives used merchandise as a trade-in for similar new merchandise ; or
(B) receives used retail media items as a trade-in for similar new or used retail media
items;
[
(xi)
] 
(x)
 an owner or operator of a business that contracts with other persons [
or
entities
] to offer those persons' secondhand goods for sale, purchase, consignment, or trade via
the Internet;
[
(xii)
] 
(xi)
 any dealer as defined in Section 
76-6-1402
, which concerns scrap metal and
secondary metals;
[
(xiii)
] 
(xii)
 the purchase of items in bulk that are:
(A) sold at wholesale in bulk packaging;
(B) sold by a person licensed to conduct business in Utah; and
(C) regularly sold in bulk quantities as a recognized form of sale; [
or
]
[
(xiv)
] 
(xiii)
 the owner or operator of a children's product resale business[
.
]
; or
(xiv) a consignment shop when dealing in consigned property.
(30) "Secondhand merchandise transaction" means the purchase or exchange of used or
secondhand property.
(31) "Ticket" means a document upon which information is entered when a pawn
transaction or secondhand merchandise transaction is made.
(32) "Transaction card" means a card, code, or other means of access to a value with
the retail business issued to a person that allows the person to obtain, purchase, or receive any
of the following:
(a) goods;
(b) services;
(c) money; or
(d) anything else of value.
Section 2. Section 
13-32a-103
 is amended to read:
13-32a-103.
Compliance with criminal code and this chapter.
[
Every
] 
A
 pawn or secondhand business shall, regarding [
each article of
] property [
a
person
] 
an individual
 pawns or sells, comply with the requirements of this chapter and the
requirements of [
Subsections
] 
Subsection
76-6-408[
(2)
]
(3)
(c)[
(i) through (iii)
] regarding the
[
person's
] 
individual's
:
(1) legal right to the property;
(2) fingerprint; and
(3) [
picture
] identification.
Section 3. Section 
13-32a-103.1
 is enacted to read:
 13-32a-103.1.
Transaction or gift cards.
(1) A retail business engaging in a transaction involving a transaction card or gift card
issued by that retail business and that bears the branding of that retail business is not subject to
this chapter.
 (2) A pawn or secondhand business may not purchase or pawn a gift card or transaction
card.
(3) This chapter does not prohibit a pawn or secondhand business from issuing or
accepting as payment a gift card that:
(a) is issued solely by the pawn or secondhand business; and
(b) bears the brand or name of the pawn or secondhand business.
Section 4. Section 
13-32a-103.5
 is amended to read:
13-32a-103.5.
Specie legal tender exempt from chapter.
[
(1) This chapter applies to coin dealers, except:
]
[
(a) where provisions otherwise specifically address coin dealers; or
]
[
(b) as provided in Subsection (2).
]
[
(2)
] Specie legal tender as defined in Section 
59-1-1501.1
 that is used as legal tender
is exempt from this chapter.
Section 5. Section 
13-32a-104
 is amended to read:
13-32a-104.
Tickets required to be maintained -- Contents -- Identification of
items -- Prohibition against pawning or selling certain property.
(1) A [
pawnbroker or secondhand merchandise dealer
] 
pawn or secondhand business
shall keep a [
register of each article of
] 
ticket for
 property a person pawns or sells to the
[
pawnbroker or secondhand merchandise dealer, except as provided in Subsection
13-32a-102
(26)(b)
] 
pawn or secondhand business
. A pawn [
and
] 
or
 secondhand business
[
owner or operator, or the owner's or operator's employee,
] shall [
enter
] 
document on the ticket
the following information regarding [
every article pawned or sold to the owner or employee
]
the property
:
(a) the date and time of the transaction;
(b) whether the transaction is a pawn or purchase;
[
(b)
] 
(c)
 the [
pawn transaction
] ticket number[
, if the article is pawned
];
[
(c)
] 
(d)
 the date by which the [
article
] 
property
 must be redeemed
, if the property is
pawned
;
[
(d)
] 
(e)
 the following information regarding the [
person
] 
individual
 who pawns or
sells the [
article
] 
property
:
(i) the [
person's
] 
individual's full
 name[
,
] 
and date of birth as they appear on the
individual's identification and the individual's
 residence address[
, and date of birth
] 
and
telephone number
;
(ii) [
the number of the driver license or other form of positive identification presented
by the person, and notations of discrepancies if the person's physical description, including
gender, height, weight, race, age, hair color, and eye color, does not correspond with
identification provided by the person
] 
the unique number and type of identification presented to
the pawn or secondhand business
;
(iii) the [
person's
] 
individual's
 signature; and
(iv) 
subject to Subsection (6),
 a legible fingerprint of the [
person's
] 
individual's
 right
index finger, or if the right index finger cannot be fingerprinted, a legible fingerprint of the
[
person
] 
individual
 with a [
written
] notation identifying the fingerprint and the reason why the
index finger's print was unavailable;
[
(e)
] 
(f)
 the amount loaned on [
or
]
,
 paid for [
the article
], or [
the article for which it was
traded
] 
value for trade-in of each article of property
;
[
(f) the identification of the pawn or secondhand business owner or the employee,
whoever is making the register entry; and
]
(g) the full name of the individual conducting the pawn transaction or secondhand
merchandise transaction on behalf of the pawn or secondhand business or the initials or a
unique identifying number of the individual, if the pawn or secondhand business maintains a
record of the initials or unique identifying number of the individual; and
[
(g)
] 
(h)
 an accurate description of [
the
] 
each
 article of property, [
including
] 
with
available identifying marks [
such as
]
, including
:
(i) names, brand names, numbers, serial numbers, model numbers, color,
manufacturers' names, and size;
(ii) metallic composition, and any jewels, stones, or glass;
(iii) any other marks of identification or indicia of ownership on the [
article
] 
property
;
(iv) the weight of the [
article
] 
property
, if the payment is based on weight;
(v) any other unique identifying feature;
(vi) gold content, if indicated; [
and
] 
or
(vii) if multiple articles of 
property of
 a similar nature are delivered together in one
transaction and the articles 
of property
 do not bear serial or model numbers and do not include
precious metals or gemstones, such as musical or video recordings, books, or hand tools, the
description of the articles is adequate if it includes the quantity of the articles and a description
of the type of articles delivered.
(2) 
(a)
 A pawn or secondhand business may not accept [
any personal
] property if, upon
inspection, it is apparent that [
serial numbers, model names, or identifying characteristics have
been intentionally defaced on that article of property.
]
:
(i) a serial number or another form of indicia of ownership has been removed, altered,
defaced, or obliterated;
(ii) the property is not a numismatic item and has indicia of being new, but is not
accompanied by a written receipt or other satisfactory proof of ownership other than the seller's
own statement; or
(iii) except as provided in Subsection 
13-32a-103.1
(3), the property is a gift card,
transaction card, or other physical or digital card or certificate evidencing store credit.
(b) A pawn or secondhand business is not subject to Subsection (2)(a)(ii) if the pawn or
secondhand business is the original seller of the property and is accepting a return of the
property as provided by the pawn or secondhand business' established return policy.
(c) Property is presumed to have had indicia of being new at the time of a transaction if
the property is subsequently advertised by the pawn or secondhand business as being new.
(3) (a) [
A person
] 
An individual
 may not pawn or sell any property to a business
regulated under this chapter if the property is subject to being turned over to a law enforcement
agency in accordance with Title 77, Chapter 24a, Lost or Mislaid Personal Property.
(b) If an individual attempts to sell or pawn property to a business regulated under this
chapter and the employee or owner of the business knows or has reason to know that the
property is subject to Title 77, Chapter 24a, Lost or Mislaid Personal Property, the employee or
owner shall advise the individual of the requirements of Title 77, Chapter 24a, Lost or Mislaid
Personal Property, and may not receive the property in pawn or sale.
(4) A coin dealer is subject to Section 
13-32a-104.5
 and not subject to this section.
[
(4)
] 
(5)
 A violation of this section is a class B misdemeanor and is also subject to civil
penalties under Section 
13-32a-110
.
(6) (a) On and after January 1, 2020:
(i) a pawn or secondhand business shall obtain an electronic legible fingerprint of the
individual's right index finger that can be submitted to the central database at the same time the
other information is submitted under this section, or if the right index finger cannot be
fingerprinted, an electronic legible fingerprint of the individual with a notation on the ticket
identifying the fingerprint and the reason why a right index fingerprint is unavailable; and
(ii) the electronic fingerprint is not required on the ticket.
(b) On and after January 1, 2020, a pawn or secondhand business shall submit an
electronic legible fingerprint obtained under Subsection (6)(a) to the central database.
(7) (a) As used in this Subsection (7), "jewelry" means:
(i) any jewelry purchased by the pawn or secondhand business, including scrap jewelry
and watches; or
(ii) any jewelry that the pawn or secondhand business is allowed to sell under
Subsection 
13-32a-109
(1), including scrap jewelry and watches.
(b) On and after January 1, 2020, a pawn or secondhand business shall obtain:
(i) a color digital photograph clearly and accurately depicting:
(A) each item of jewelry; and
(B) if an item of jewelry has one or more engravings, an additional color digital
photograph specifically depicting any engraving; and
(ii) a color digital photograph of an item that bears an identifying mark, including:
(A) a serial number, engraving, owner label, or similar identifying mark; and
(B) an additional photograph that clearly depicts the identifying mark described in
Subsection (7)(b)(ii)(A).
Section 6. Section 
13-32a-104.5
 is amended to read:
13-32a-104.5.
Database information from coin dealers -- New and prior
customers.
(1) A coin dealer shall maintain [
in a register and provide for the database the
information
] 
a ticket
 under this section for each 
secondhand merchandise
 transaction of a
[
coin
] 
numismatic item
 or precious metal with [
a person
] 
an individual
 with whom the coin
dealer has not previously conducted a 
secondhand merchandise
 transaction.
(2) For [
transactions
] 
a secondhand merchandise transaction
 under Subsection (1), the
coin dealer or the coin dealer's employee shall [
enter
] 
document
 the following information [
in
]
on
 the [
register
] 
ticket
 regarding every [
coin
] 
numismatic item
 or precious metal transaction:
(a) the date and time of the transaction;
(b) the [
receipt
] 
ticket
 number;
(c) the following information regarding the [
person
] 
individual
 who sells the [
coin
]
numismatic item
 or precious metal:
(i) the [
person's
] 
individual's full
 name[
, residence address,
] and date of birth 
as they
appear on the individual's identification and the individual's residence address and telephone
number
;
(ii) [
the number of the driver license or other form of positive identification presented
by the person, and notations of discrepancies if the person's physical description, including
gender, height, weight, race, age, hair color, and eye color, does not correspond with
identification provided by the person
] 
the unique number and type of identification presented to
the coin dealer
;
(iii) the [
person's
] 
individual's
 signature; and
(iv) 
subject to Subsection (6),
 a legible fingerprint of the [
person's
] 
individual's
 right
[
thumb
] 
index finger
, or if the right [
thumb
] 
index finger
 cannot be fingerprinted, a legible
fingerprint of the [
person
] 
individual
 with a [
written
] notation identifying the fingerprint and
the reason why [
the thumb print was
] 
a right index fingerprint is
 unavailable;
(d) the amount paid for [
the article, or the article for which it was traded
] 
or trade-in
value of each numismatic item or precious metal
;
(e) [
the identification of the coin dealer or the employee who is conducting the
transaction
] 
the full name of the individual conducting the transaction on behalf of the pawn or
secondhand business or the initials or unique identifying number, if the coin dealer maintains a
record of the initials or unique identifying number of the individual
; and
(f) an accurate description of [
the coin
] 
each numismatic item
 or precious metal,
[
including
] 
with
 available identifying marks [
such as
]
, including
:
(i) type and name of [
coin
] 
numismatic item
 or type and content of precious metal;
(ii) metallic composition, and any jewels, stones, or glass;
(iii) any other marks of identification or indicia of ownership on the article;
(iv) the weight of the article, if the payment is based on weight;
(v) any other unique identifying feature; and
(vi) metallic content.
(3) 
(a)
 If multiple [
coins
] 
numismatic items
 or precious metals 
of the same type
 in an
amount that would make reporting of each item unreasonably difficult are part of a single sale
transaction, [
a general description of the items and a photograph of the items, which shall be
stored by the coin dealer with a copy of the invoice of the transaction for three years from the
date of the transaction.
] 
a coin dealer shall document the property as a grouping.
(b) The description for a grouping described in Subsection (3)(a) must be an accurate
description, with available identifying marks, including:
(i) type and name of numismatic items or type and content of precious metal;
(ii) metallic composition, and any jewels, stones, or glass;
(iii) any other marks of identification or indicia of ownership on the article;
(iv) the weight of the articles, if the payment is based on the weight;
(v) any other unique identifying features; and
(vi) metallic content.
(4) If the [
person
] 
individual
 selling a [
coin
] 
numismatic item
 or precious metal to the
coin dealer has an established previous transaction history with the coin dealer, the coin dealer
or the coin dealer's employee shall [
enter
] 
document
 the following information [
in
] 
on
 the
[
register
] 
ticket
:
(a) the date and time of the transaction 
and the ticket number
;
(b) indication that the coin dealer has conducted business with the seller previously;
(c) [
the identification of the coin dealer or the employee who is conducting the
transaction
] 
the full name of the individual conducting the transaction on behalf of the pawn or
secondhand business or the initials or unique identifying number, if the coin dealer maintains a
record of the initials or unique identifying number of the individual
;
(d) the initials of the seller's legal name, including any middle name;
(e) form of identification presented by the seller at the time of sale;
(f) the last four digits of the unique identifying number on the form of identification;
[
and
]
(g) the individual's signature;
(h) the amount paid for or trade-in value of each numismatic item or precious metal;
and
[
(g)
] 
(i)
 the identifying information under Subsection (2)(f) and under Subsection (3) as
applicable.
(5) A coin dealer may not accept any [
coin
] 
numismatic item
 or precious metal if, upon
inspection, it is apparent that serial numbers or identifying characteristics have been
intentionally defaced on that [
coin
] 
numismatic item
 or precious metal.
(6) (a) On and after January 1, 2020:
(i) for a secondhand merchandise transaction described in Subsection (1), a coin dealer
shall obtain an electronic legible fingerprint of the individual's right index finger that can be
submitted to the central database at the same time the other information is submitted under this
section, or if the right index finger cannot be fingerprinted, an electronic legible fingerprint of
the individual with a notation on the ticket identifying the fingerprint and the reason why a
right index fingerprint is unavailable; and
(ii) the electronic fingerprint is not required on the ticket.
(b) On and after January 1, 2020, a pawn or secondhand business shall submit an
electronic legible fingerprint obtained under Subsection (6)(a) to the central database.
Section 7. Section 
13-32a-105
 is amended to read:
13-32a-105.
Central database.
(1) [
There
] 
In accordance with this section, there
 is created under this section a central
database as a statewide repository for [
all
] information 
that
 pawn [
and
] 
or
 secondhand
businesses [
and coin dealers
] are required to submit in accordance with this chapter and for the
use of [
all
] participating law enforcement agencies [
whose jurisdictions include one or more
pawn or secondhand businesses
] 
that meet the requirements of Section 
13-32a-111
.
[
(2) The Division of Purchasing and General Services created in Title 63A, Chapter 2,
Division of Purchasing and General Services, shall:
]
[
(a) meet with the board to determine the required elements of the database; and
]
[
(b) conduct a statewide request for proposal for the creation of and maintenance of the
central database.
]
(2) The division shall:
(a) establish and operate the central database; or
(b) contract with a third party to establish and operate the central database in
accordance with Title 63G, Chapter 6a, Utah Procurement Code.
(3) Funding for the creation and operation of the central database shall be from the
account.
(4) (a) [
Any
] 
An
 entity [
submitting a bid to create, maintain, and operate the
] 
that
operates the central
 database [
pursuant to the request for proposal conducted by the Division of
Purchasing and General Services
] may not hold any financial or operating interest in [
any
pawnshop
] 
a pawn or secondhand business
 in any state.
(b) The [
Division of Purchasing and General Services, in conjunction with the
Pawnshop and Secondhand Merchandise Advisory Board,
] 
division
 shall verify before a bid is
awarded that the selected entity meets the requirements of Subsection (4)(a).
(c) If any entity is awarded a bid under this Subsection (4) and is later found to hold
any interest in violation of Subsection (4)(a), the award is subject to being opened again for
request for proposal.
(5) (a) Beginning January 1, 2020, upon a query by a pawnbroker, the central database
shall provide notification of the volume of business an individual seeking to enter into a
transaction with the pawnbroker has engaged in with any pawnbroker regulated by this chapter
within the previous 30 days based on the records in the central database at the time of the
query.
[
(5)
] 
(b)
 Information entered in the 
central
 database shall be retained for five years and
shall then be deleted.
Section 8. Section 
13-32a-106
 is amended to read:
13-32a-106.
Transaction information provided to the central database --
Protected information.
(1) 
(a)
 [
The
] 
A pawn or secondhand business shall transmit electronically in a
compatible format
 information required to be recorded under Sections 
13-32a-103
 [
and
]
,
13-32a-104
,
 and 
13-32a-104.5
 that is capable of being transmitted electronically [
shall be
transmitted electronically
] to the central database [
on the next business day following
] 
within
hours after entering into
 the transaction.
(b) The division may specify by rule, made in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, the information capable of being transmitted
electronically under Subsection (1)(a).
(2) [
The pawnbroker
] 
A pawn or secondhand business
 shall maintain [
all pawn
] tickets
generated by the [
pawnshop
] 
pawn or secondhand business
 and shall maintain the tickets in a
manner so that the tickets are available to local law enforcement agencies as required by this
chapter and as requested by any law enforcement agency as part of an investigation or
reasonable random inspection conducted pursuant to this chapter.
(3) (a) If a pawn or secondhand business experiences a computer or electronic
malfunction that affects its ability to report transactions as required in Subsection (1), the pawn
or secondhand business shall immediately notify the 
division and the
 local law enforcement
agency of the malfunction.
(b) The pawn or secondhand business shall solve the malfunction within three business
days or notify 
the division and the local
 law enforcement 
agency
 under Subsection (4).
(4) If the computer or electronic malfunction under Subsection (3) cannot be solved
within three business days, the pawn or secondhand business shall notify the 
division and the
local law enforcement agency of the reasons for the delay and provide documentation from a
reputable computer maintenance company of the reasons why the computer or electronic
malfunction cannot be solved within three business days.
(5) A computer or electronic malfunction does not suspend the pawn or secondhand
business' obligation to comply with all other provisions of this chapter.
(6) During the malfunction under Subsections (3) and (4), the pawn or secondhand
business shall:
(a) arrange with the local law enforcement agency a mutually acceptable alternative
method by which the pawn or secondhand business provides the required information to the
local law enforcement [
official
] 
agency
; and
(b) a [
pawnshop
] 
pawn or secondhand business
 shall maintain the [
pawn
] tickets and
other related information required under this chapter in a written form.
(7) A pawn or secondhand business that violates the electronic transaction reporting
requirement of this section is subject to an administrative fine of $50 per day if:
(a) the pawn or secondhand business is unable to submit the information electronically
due to a computer or electronic malfunction;
(b) the three business day period under Subsection (3) has expired; and
(c) the pawn or secondhand business has not provided documentation regarding its
inability to solve the malfunction as required under Subsection (4).
(8) A pawn or secondhand business is not responsible for a delay in transmission of
information that results from a malfunction in the central database.
(9) A violation of this section is a Class B misdemeanor and is also subject to civil
penalties under Section 
13-32a-110
.
Section 9. Section 
13-32a-106.5
 is amended to read:
13-32a-106.5.
Confidentiality of pawn and purchase transactions.
(1) [
All pawn and purchase transaction records
] 
A ticket, copy of a ticket, or
information from a ticket
 delivered to a local law enforcement [
official
] 
agency
 or transmitted
to the central database pursuant to Section 
13-32a-106
 [
are protected records
] 
is a protected
record
 under Section 
63G-2-305
. [
These records
] 
In addition to use by the issuing pawn or
secondhand business, the ticket, copy of a ticket, or information from a ticket
 may be used only
by 
a
 law enforcement [
officials
] 
agency
 and the division and only for the law enforcement and
administrative enforcement purposes of:
(a) investigating possible criminal conduct involving the property delivered to the
[
pawnbroker
] 
pawn
 or secondhand business in a pawn 
transaction
 or [
purchase
] 
secondhand
merchandise
 transaction;
(b) investigating a possible violation of the record keeping or reporting requirements of
this chapter when the local law enforcement [
official
] 
agency or the division
, based on a review
of the records and information received, has reason to believe that a violation has occurred;
(c) responding to an inquiry from an insurance company investigating a claim for
physical loss of described property by searching the 
central
 database to determine if property
matching the description has been delivered to a [
pawnbroker
] 
pawn
 or secondhand business
by another person in a pawn 
transaction
 or 
secondhand merchandise
 purchase transaction and if
so, obtaining from the 
central
 database:
(i) a description of the property;
(ii) the name and address of the [
pawnbroker
] 
pawn
 or secondhand business [
who
] 
that
received the property; and
(iii) the name, address, and date of birth of the conveying [
person
] 
individual
; and
(d) taking enforcement action under Section 
13-2-5
 against a [
pawnbroker
] 
pawn
 or
secondhand business.
(2) An insurance company making a request under Subsection (1)(c) shall provide the
police report case number concerning the described property.
(3) (a) A person may not knowingly and intentionally use, release, publish, or
otherwise make available to any person [
or entity
] any information obtained from the 
central
database for any purpose other than those specified in Subsection (1).
(b) Each separate violation of Subsection (3)(a) is a class B misdemeanor.
(c) Each separate violation of Subsection (3)(a) is subject to a civil penalty not to
exceed $250.
Section 10. Section 
13-32a-108
 is amended to read:
13-32a-108.
Retention of records -- Reasonable inspection.
(1) [
The pawnbroker
] 
A pawn or secondhand business
 or 
local
 law enforcement
agency, whichever has custody of [
pawn tickets
] 
a ticket or copy of a ticket
, shall retain [
them
]
the ticket or copy
 for no less than three years from the date of the transaction.
(2) (a) A law enforcement agency 
or the division
 may conduct random reasonable
inspections of pawn or secondhand businesses for the purpose of monitoring compliance with
the [
reporting
] requirements of this chapter. [
The inspections may be conducted to:
]
[
(i) confirm that pawned or sold items match the description reported to the database
by the pawnshop; and
]
[
(ii) make spot checks of property at the pawn or secondhand business to determine if
the property is appropriately reported.
]
(b) Inspections under Subsection (2)(a) shall be performed during the regular business
hours of the pawn or secondhand business.
(3) A violation of this section is a Class B misdemeanor and is also subject to civil
penalties under Section 
13-32a-110
.
Section 11. Section 
13-32a-109
 is amended to read:
13-32a-109.
Holding period for property -- Return of property -- Penalty.
(1) (a) A pawnbroker may sell [
an article
] 
property
 pawned to the pawnbroker if:
(i) 15 
calendar
 days have passed [
since
] 
after
 the day on which the [
contract between
the pawnbroker and the pledgor was executed
] 
pawnbroker submits the information and any
required photograph to the central database
;
(ii) the contract period between the pawnbroker and the pledgor [
has expired
] 
expires
;
and
(iii) the pawnbroker has complied with [
the requirements of Section
] 
Sections
13-32a-103
, 
13-32a-104
, and
13-32a-106
 [
regarding reporting to the central database and
Section 
13-32a-103
].
(b) If [
an article
] 
property
, including scrap jewelry, is purchased by a pawn or
secondhand business [
or a coin dealer
], the pawn or secondhand business [
or coin dealer
] may
sell the [
article after
] 
property if
 the pawn or secondhand business [
or coin dealer
] has held the
[
article
] 
property
 for 15 
calendar
 days 
after the day on which the pawn or secondhand business
submits the information to the central database,
 and complied with [
the requirements of
Section
] 
Sections 
13-32a-103
, 
13-32a-104
, and
13-32a-106
 [
regarding reporting to the central
database and Section 
13-32a-103
], except that 
the
 pawn[
,
] 
or
 secondhand[
, and coin dealer
businesses are
] 
business is
 not required to hold precious metals or [
coins
] 
numismatic items
under this Subsection (1)(b).
(c) 
(i)
 This Subsection (1) does not preclude a law enforcement agency from requiring
a pawn or secondhand business to hold [
an article
] 
property
 if necessary in the course of an
investigation.
[
(i)
] 
(ii)
 If the [
article was
] 
property is
 pawned, the law enforcement agency may
require the [
article
] 
property
 be held beyond the terms of the contract between the pledgor and
the [
pawn broker
] 
pawnbroker
.
[
(ii)
] 
(iii)
 If the [
article was
] 
property is
 sold to the pawn or secondhand business, the
law enforcement agency may require the [
article
] 
property
 be held if the pawn or secondhand
business has not sold the article.
(d) If the law enforcement agency requesting a hold on property under this Subsection
(1) is not the local law enforcement agency, the requesting law enforcement agency shall notify
the local law enforcement agency of the request and also the pawn or secondhand business.
(2) If a law enforcement agency requires the pawn or secondhand business to hold [
an
article
] 
property
 as part of an investigation, the 
law enforcement
 agency shall provide to the
pawn or secondhand business a hold [
ticket
] 
form
 issued by the 
law enforcement
 agency,
[
which
] 
that
:
(a) states the active case number;
(b) confirms the date of the hold request and the [
article
] 
property
 to be held; and
(c) facilitates the ability of the pawn or secondhand business to track the [
article
]
property
 when the prosecution takes over the case.
(3) If [
an article
] 
property
 is not seized by a law enforcement agency that has placed a
hold on the property, the property shall remain in the custody of the pawn or secondhand
business until further disposition by the law enforcement agency, and as consistent with this
chapter.
(4) The initial hold by a law enforcement agency is for a period of 90 days. If the
[
article
] 
property
 is not seized by the law enforcement agency, the [
article
] 
property
 shall
remain in the custody of the pawn or secondhand business and is subject to the hold unless
exigent circumstances require the [
purchased or pawned article
] 
property
 to be seized by the
law enforcement agency.
(5) (a) A law enforcement agency may extend any hold for up to an additional 90 days
[
when exigent
] 
if
 circumstances require the extension.
(b) [
When
] 
If
 there is an extension of a hold under Subsection (5)(a), the requesting
law enforcement agency shall notify the pawn or secondhand business that is subject to the
hold prior to the expiration of the initial 90 days.
(c) A law enforcement agency may not hold an item for more than the 180 days
allowed under Subsections (5)(a) and (b) without obtaining a court order authorizing the hold.
(6) A hold on [
an article
] 
property
 under Subsection (2) takes precedence over any
request to claim or purchase the [
article
] 
property
 subject to the hold.
(7) [
When the purpose for the hold on or seizure of an article for which
] 
If
 an original
victim who has complied with Section 
13-32a-115
 has not been identified 
and the hold or
seizure of the property
 is terminated, the law enforcement agency requiring the hold or seizure
shall within 15 
business
 days after the termination:
(a) notify the pawn or secondhand business in writing that the hold or seizure has been
terminated;
(b) return the [
article
] 
property
 subject to the seizure to the pawn or secondhand
business; or
(c) if the [
article
] 
property
 is not returned to the pawn or secondhand business, advise
the pawn or secondhand business either in writing or electronically of the specific alternative
disposition of the [
article
] 
property
.
(8) (a) [
When the purpose for the hold on or seizure of an article, for which an
] 
If the
original victim who has complied with Section 
13-32a-115
 has been identified 
and the hold or
seizure of property
 is terminated, the law enforcement agency requiring the hold or seizure
shall:
(i) document the original victim who has positively identified the [
item of
] property;
and
(ii) provide the documented information concerning the original victim to the
prosecuting agency to determine whether continued possession of the [
article
] 
property
 is
necessary for purposes of prosecution, as provided in Section 
24-3-103
.
(b) If the prosecuting agency determines that continued possession of the [
article
]
property
 is not necessary for purposes of prosecution, as provided in Section 
24-3-103
, the
prosecuting agency shall provide a written or electronic notification to the law enforcement
agency [
which
] 
that
 authorizes the return of the [
article
] 
property
 to an original victim who has
complied with Section 
13-32a-115
.
(c) (i) A law enforcement agency shall promptly provide notice to the pawn or
secondhand business of the authorized return of the [
article
] 
property
 under this Subsection (8).
(ii) The notice shall identify the original victim, advise the pawn or secondhand
business that the original victim has identified the [
article
] 
property
, and direct the pawn or
secondhand business to release the [
article
] 
property
 to the original victim at no cost to the
original victim[
, or if
]
.
 (iii) If
 the [
article
] 
property
 was seized, the notice shall advise that the [
article
]
property
 will be returned to the original victim within 15 days 
after the day on which the pawn
or secondhand business receives the notice
, except as provided under Subsection (8)(d).
(d) The pawn or secondhand business shall release [
an article
] 
property
 under
Subsection (8)(c) unless within 15 days of receiving the notice the pawn or secondhand
business complies with Section 
13-32a-116.5
. 
(9) If the law enforcement agency does not notify the pawn or secondhand business
that a hold on [
an item
] 
the property
 has expired, the pawn or secondhand business shall send a
letter by registered or certified mail to the law enforcement agency that ordered the hold and
inform the agency that the holding period has expired. The law enforcement agency shall
respond within 30 days by:
(a) confirming that the [
holding
] 
hold
 period has expired and that the pawn or
secondhand business may manage the [
item
] 
property
 as if acquired in the ordinary course of
business; or
(b) providing written notice to the pawn or secondhand business that a court order has
continued the period of time for which the item shall be held.
(10) The written notice under Subsection (9)(b) is considered provided when:
(a) personally delivered to the pawn or secondhand business with a signed receipt of
delivery;
(b) delivered to the pawn or secondhand business by registered or certified mail; or
(c) delivered by any other means with the mutual assent of the law enforcement agency
and the pawn or secondhand business.
(11) If the law enforcement agency does not respond within 30 days under Subsection
(9), the pawn or secondhand business may manage the [
item
] 
property
 as if acquired in the
ordinary course of business.
(12) A violation of this section is a class B misdemeanor and is also subject to civil
penalties under Section 
13-32a-110
.
Section 12. Section 
13-32a-109.5
 is amended to read:
13-32a-109.5.
Seizure of property -- Notification to pawn or secondhand business.
If a law enforcement agency determines seizure of property pawned or sold to a pawn
or secondhand business is necessary under this chapter during the course of a criminal
investigation, in addition to the [
holding
] 
hold
 provisions under Section 
13-32a-109
, the law
enforcement agency shall:
(1) notify the [
pawnshop
] 
pawn or secondhand business
 of the specific [
item
] 
property
to be seized; and
(2) issue to the [
pawnshop
] 
pawn or secondhand business
 a seizure [
ticket in a form
]
form
 approved by the division and that:
(a) provides the active case number related to the [
item
] 
property
 to be seized;
(b) provides the date of the seizure request;
(c) provides the reason for the seizure;
(d) describes the [
article
] 
property
 to be seized;
(e) states each reason the [
article
] 
property
 is necessary during the course of a criminal
investigation; and
(f) includes any information that facilitates the [
pawnbroker's
] 
pawn or secondhand
business'
 ability to track the [
article
] 
property
 when the prosecution agency takes over the case.
Section 13. Section 
13-32a-110
 is amended to read:
13-32a-110.
Administrative or civil penalties -- Criminal prosecution.
(1) A violation of any of the following sections is subject to [
a
] 
an administrative or
civil penalty of not more than $500:
(a) Section 
13-32a-104
, [
register
] 
ticket
 required to be maintained;
(b) Section 
13-32a-104.5
, ticket by coin dealer to be maintained;
[
(b)
] 
(c)
 Section 
13-32a-106
, transaction information provided to law enforcement;
[
(c)
] 
(d)
 Section 
13-32a-108
, retention of records;
[
(d)
] 
(e)
 Section 
13-32a-109
, holding period for pawned [
articles
] 
or purchased
property
;
(f) Section 
13-32a-110.5
, transactions with certain individuals prohibited;
[
(e)
] 
(g)
 Section 
13-32a-111
, payment of fees as required; or
[
(f)
] 
(h)
 Section 
13-32a-112
, training requirements for pawn[
,
] 
or
 secondhand[
, and
coin dealer
] business employees and officers of participating law enforcement agencies.
(2) This section does not prohibit civil action by a governmental entity regarding the
[
pawnbroker's business
] 
pawn or secondhand business'
 operation or licenses.
(3) The imposition of civil penalties under this section does not prohibit criminal
prosecution by a governmental entity for criminal violations of this chapter.
Section 14. Section 
13-32a-110.5
 is amended to read:
13-32a-110.5.
Transactions with certain individuals prohibited.
A pawn or secondhand business may not [
purchase, accept as a pawn, or take for
consignment any property from a person
] 
engage in a pawn transaction or secondhand
merchandise transaction with an individual
 who:
(1) is younger than 18 years of age; or
(2) appears to be [
acting
] under the influence of alcohol or [
any
] 
a
 controlled
substance.
Section 15. Section 
13-32a-111
 is amended to read:
13-32a-111.
Fees to fund account.
[
(1) (a) (i) On and after January 1, 2005, each pawnshop or secondhand merchandise
dealer in operation shall annually pay $250 to the division, to be deposited in the account.
]
[
(ii) On and after January 1, 2013, each pawnshop or secondhand merchandise dealer
in operation shall annually pay $300 to the division, to be deposited in the account.
]
[
(b) For the period of July 1, 2009 through December 31, 2009, each coin dealer in
operation shall pay a fee of $250 to the division to be deposited in the account.
]
[
(c) (i) On and after January 1, 2010, each coin dealer in operation shall annually on
January 1 pay $250 to the division to be deposited in the account.
]
[
(ii) On and after January 1, 2013, each coin dealer in operation shall annually on
January 1 pay $300 to the division to be deposited in the account.
]
[
(2) (a) On and after January 1, 2005, each law enforcement agency that participates in
the use of the database shall annually pay to the division a fee of $2 per sworn law enforcement
officer who is employed by the agency as of January 1 of that year. The fee shall be deposited
in the account.
]
[
(b) On and after January 1, 2013, each
]
(1) (a) A pawn or secondhand business in operation shall pay an annual fee, no more
than $500, set in accordance with Section 
63J-1-504
.
(b) A
 law enforcement agency 
within Utah
 that participates in the use of the 
central
database shall [
annually pay to the division a fee of $3 per sworn law enforcement officer who
is employed by the agency as of January 1 of that year. The fee shall be deposited in the
account.
] 
pay an annual fee set in accordance with Section 
63J-1-504
.
[
(3) The fees under Subsections (1) and (2) shall be paid to the account annually on or
before January 30.
]
[
(4) (a) (i) If a
] 
(c) A
 law enforcement agency outside Utah 
that
 requests access to the
central database[
, the requesting agency
] shall pay [
a yearly
] 
an annual
 fee [
of $750 for the
fiscal year beginning July 1, 2006, which shall be deposited in the account
] 
set in accordance
with Section 
63J-1-504
.
[
(ii) If a law enforcement agency outside Utah requests access to the central database,
the requesting agency shall pay a yearly fee of $900 for the fiscal year beginning July 1, 2013,
which shall be deposited in the account.
]
[
(b) The board may establish the fee amount for fiscal years beginning on and after July
1, 2007 under Section 
63J-1-504
.
]
(2) A fee paid under Subsection (1) shall be paid annually to the division on or before
January 31.
(3) A fee received by the division under this section shall be deposited into the account.
(4) The division may only increase fees for a pawnshop or secondhand business under
Section 
63J-1-504
.
Section 16. Section 
13-32a-112
 is amended to read:
13-32a-112.
Pawnshop and Secondhand Merchandise Advisory Board.
(1) There is created within the division the 
"Pawnshop and
 Secondhand Merchandise
Advisory Board.
"
(2)
 The board consists of [
] 
seven
 voting members [
and one nonvoting member
]
appointed by the executive director of the Department of Commerce
:
(a) one [
representative of
] 
law enforcement officer whose work regularly involves
pawn or secondhand business, recommended by
 the Utah Chiefs of Police Association;
(b) one [
representative of
] 
law enforcement officer whose work regularly involves
pawn or secondhand business, recommended by
 the Utah Sheriffs Association;
(c) one [
representative of the Statewide Association of Prosecutors
] 
state, county, or
municipal prosecutor, recommended by a prosecutors' association or council
;
[
(d) one representative of the Utah Municipal Prosecutors' Association;
]
[
(e) three representatives from the pawnshop industry;
]
[
(f) three representatives from the secondhand merchandise business industry;
]
[
(g) one representative from the coin dealer industry;
]
[
(h) one law enforcement officer who is appointed by the board members under
Subsections (1)(a) through (g);
]
[
(i) one law enforcement officer whose work regularly involves pawn and secondhand
businesses and who is appointed by the board members under Subsections (1)(a) through (g);
and
]
[
(j) one representative from the central database, who is nonvoting.
]
[
(2) (a) The board shall prepare recommendations for the appointment of members
under Subsections (1)(a) through (g), and Subsection (1)(j), and shall forward its
recommendations to the Commission on Criminal and Juvenile Justice, which shall make the
appointments.
]
[
(b) The members under Subsections (1)(e), (f), and (g) shall represent three separate
pawnshops, three separate secondhand merchandise dealers, and one coin dealer, each of which
are owned by a separate person or entity.
]
[
(c) In appointing members from the individuals recommended under Subsection
(2)(a), the Commission on Criminal and Juvenile Justice shall give consideration to
recommendations by members of the respective occupations and professions and by their
representative organizations.
]
(d) one pawnbroker, recommended by the pawn industry;
(e) one secondhand merchandise dealer, recommended by the secondhand merchandise
industry;
(f) one coin dealer, recommended by the Utah Coin Dealers Association; and
(g) one representative from the pawn or secondhand merchandise industry at large,
recommended by the pawn or secondhand merchandise industry.
(3) After receiving a recommendation for a member by a respective association,
council, or industry for the board, the executive director may:
(a) decline the recommendation; and
(b) request another recommendation from the respective association, council, or
industry.
[
(3)
] 
(4)
 (a) [
Each
] 
A
 member of the board shall be appointed to a term of not more
than four years, and may be reappointed upon expiration of the member's term.
(b) Notwithstanding the requirements of Subsection [
(3)
] 
(4)
(a), the [
Commission on
Criminal and Juvenile Justice
] 
executive director of the Department of Commerce
 shall, at the
time of appointments or reappointments, adjust the length of terms to ensure that the terms of
board members are staggered so that approximately half of the board is appointed every two
years. 
(c) When a vacancy occurs in the membership for any reason, the executive director of
the Department of Commerce shall appoint a member for the unexpired term.
(d) The executive director of the Department of Commerce may remove a member and
replace the member in accordance with this section for the following reasons:
(i) the member fails or refuses to fulfill the duties of a board member, including
attendance at board meetings; or
(ii) the member, an entity owned by the member, an entity that the member is
employed by, or an entity that the member is representing, engages in a violation of this chapter
or Section 
76-6-408
.
(e) Notwithstanding Subsection (4)(d), members of the board as of May 13, 2019, are
removed from the board and the executive director of the Department of Commerce shall
appoint the board members in accordance with this section.
[
(4)
] 
(5)
 (a) The board shall elect one voting member as the chair of the board by a
majority of the members present at the board's first meeting each year.
(b) The chair shall preside over the board for a period of one year.
(c) The [
advisory
] board shall meet quarterly upon the call of the chair.
(d) A quorum of [
nine
] 
five
 members is required for the board to take action. 
An action
taken by majority of a quorum present at a meeting constitutes an action of the board.
[
(5) (a) The board shall conduct quarterly training sessions regarding compliance with
this chapter and other applicable state laws for any person who owns or is employed by a pawn
or secondhand business subject to this chapter.
]
[
(b) Each training session shall provide no fewer than two hours of training.
]
[
(6) (a) Each pawn, secondhand, and coin dealer business in operation as of January 1
shall ensure one or more persons employed by the pawn or secondhand business each
participate in no fewer than two hours of compliance training within that year.
]
[
(b) This requirement does not limit the number of employees, directors, or officers of
a pawn or secondhand business who attend the compliance training.
]
[
(7) The board shall monitor and keep a record of the hours of compliance training
accrued by each pawn or secondhand business.
]
[
(8) The board shall provide each pawn or secondhand business with a certificate of
compliance upon completion by an employee of the two hours of compliance training under
Subsection (6).
]
[
(9) (a) Each law enforcement agency shall ensure that at least one of its officers
completes two hours of compliance training yearly.
]
[
(b) Subsection (9)(a) does not limit the number of law enforcement officers who
attend the compliance training.
]
[
(10)
] 
(6) (a)
 The 
duties and powers of the board include the following:
 [
board may
propose to the division administrative rules establishing:
]
[
(a) pawn and secondhand business industry standards for best practices;
]
[
(b) standardized property descriptions for the database created under this chapter; and
]
[
(c) a roster of software programs for pawn and secondhand businesses setting out
minimum basic requirements for functionality.
]
(i) recommending to the division appropriate rules regarding the administration and
enforcement of this chapter;
(ii) recommending to the division changes related to the central database; and
(iii) advising the division on matters related to the pawn and secondhand industries.
(b) This Subsection (6) does not require the board's approval to act on a rule or amend
this chapter.
[
(11)
] 
(7)
 [
Pawn and
] 
A pawn or
 secondhand [
businesses
] 
business
 may file with the
board complaints regarding law enforcement agency practices perceived to be inconsistent with
this chapter. The board may refer the complaints to the Peace Officers Standards and Training
Division.
Section 17. Section 
13-32a-112.1
 is enacted to read:
 13-32a-112.1.
Annual training.
(1) (a) The division shall provide training sessions, whether online or in-person, at least
once each year regarding compliance with this chapter and other applicable state laws.
(b) A pawn or secondhand business shall ensure that each individual employed by the
pawn or secondhand business with access to the central database annually completes the
training described in Subsection (1)(a) in order for that individual to continue to have access to
the central database.
(c) A law enforcement agency participating in the use of the central database shall
ensure that each individual employed by the law enforcement agency with access to the central
database annually completes the training described in Subsection (1)(a) in order for that
individual to continue to have access to the central database.
(2) The division shall monitor and keep a record of training completion.
Section 18. Section 
13-32a-112.5
 is amended to read:
13-32a-112.5.
Temporary businesses subject to chapter.
[
(1) (a) The division may exempt specific classes of businesses from regulation under
this chapter by rules made under Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
]
[
(b) The division shall consult with the board in determining which classes of
businesses to exempt under this section.
]
[
(2) Businesses the division may exempt are classes of commercial enterprises clearly
defined by administrative rule and that do not involve transactions in property that is
recognized by law enforcement as regularly subject to theft and subsequent efforts to pawn or
sell.
]
[
(3) Municipal and county criminal and civil enforcement regarding the provisions of
this chapter may not be imposed on businesses exempted under this section.
]
[
(4) Any
] 
A
 pawn or secondhand business [
not exempted by this section and
] that
operates on a temporary basis or from a location that is not a permanent retail location:
[
(a)
] 
(1)
 shall comply with [
the provisions of
] this chapter; and
[
(b)
] 
(2)
 is subject to enforcement of [
the provisions of
] this chapter.
Section 19. Section 
13-32a-113
 is amended to read:
13-32a-113.
Pawnbroker and Secondhand Merchandise Operations Restricted
Account.
(1) There is created within the General Fund a restricted account known as the
"Pawnbroker and
 Secondhand Merchandise Operations Restricted Account.
"
(2) (a) The account shall be funded from [
the
] fees and administrative 
and civil
 fines
imposed and collected under Sections 
13-32a-106
, [
13-32a-107
, 
]13-32a-110
, and 
13-32a-111
. 
These fees and administrative 
and civil
 fines shall be paid to the division, which shall deposit
them in the account.
(b) The Legislature shall appropriate [
the
] funds in this account 
to the division for
:
(i) [
to the board for
] the costs of providing training required under this chapter[
,
]
;
(ii) the
 costs of the central database created in Section 
13-32a-105[
, and for costs of
operation of the board
]; and
[
(ii) to the division for management of fees and penalties paid under this chapter.
]
[
(c) The board shall account to the division for expenditures.
]
[
(d) The board shall account separately for expenditures for:
]
[
(i) training required under this chapter;
]
[
(ii) operation of the database; and
]
[
(iii) operation of the board.
]
(iii) the division's costs of administering the chapter.
Section 20. Section 
13-32a-114
 is amended to read:
13-32a-114.
Preemption of local ordinances -- Exceptions.
(1) This chapter preempts [
all
] 
town,
 city, county, and other local ordinances governing
pawn or secondhand businesses [
and pawnbroking transactions
], if the ordinances are more
restrictive than the provisions of this chapter or are not consistent with this chapter.
(2) Subsection (1) does not preclude a city, county, or other local governmental unit
from:
(a) enacting or enforcing local ordinances concerning public health, safety, or welfare,
if the ordinances are uniform and equal in application to pawn and secondhand businesses and
other retail businesses or activities;
(b) requiring a pawn or secondhand business to obtain and maintain a business license
and providing for revocation of the business license based on multiple violations of Section
76-6-408
; and
(c) enacting zoning ordinances that restrict areas where pawn or secondhand businesses
and other retail businesses or activities can be located.
Section 21. Section 
13-32a-115
 is amended to read:
13-32a-115.
Criminal investigation -- Prosecution -- Property disposition.
(1) If the property pawned or sold to a pawn or secondhand business is the subject of a
criminal investigation and a hold has been placed on the property under Section 
13-32a-109
,
the original victim shall do the following to establish a claim:
(a) positively identify to law enforcement the [
item
] 
property
 stolen or lost;
(b) if a police report has not already been filed for the original theft or loss of property,
file a police report, and provide for the law enforcement agency information surrounding the
original theft or loss of property; and
(c) give a sworn statement under penalty of law that:
(i) claims ownership of the property;
(ii) references the original theft or loss; and
(iii) identifies the perpetrator if known.
(2) The pawn or secondhand business shall retain possession of any property subject to
a hold until a criminal prosecution is commenced relating to the property for which the hold
was placed unless:
(a) during the course of a criminal investigation the actual physical possession by law
enforcement of [
an article
] 
the property
 purchased or pawned is essential for the purpose of
[
fingerprinting the property, chemical
] 
forensic
 testing of the property, or if the property
contains unique or sensitive personal identifying information; or
(b) an agreement between the original victim and the pawn or secondhand business to
return the property is reached.
(3) (a) Upon the commencement of a criminal prosecution, any [
article
] 
property
subject to a hold for investigation under this chapter may be seized by the law enforcement
agency [
which
] 
that
 requested the hold.
(b) Subsequent disposition of the property shall be consistent with this chapter.
(4) At all times during the course of a criminal investigation and subsequent
prosecution, the [
article
] 
property
 subject to a law enforcement hold shall be kept secure by the
pawn or secondhand business subject to the hold unless [
a
] 
the
 pawned or [
sold article
]
purchased property
 has been seized by the law enforcement agency pursuant to Section
13-32a-109.5
.
Section 22. Section 
13-32a-116
 is amended to read:
13-32a-116.
Property disposition -- Property subject to prosecution -- Property
not used as evidence.
When [
any
] property that is pawned or sold to a pawn or secondhand business is the
subject of a criminal proceeding, and has been seized by law enforcement pursuant to [
Section
13-32a-115
] 
this chapter
, the prosecuting agency shall notify the seizing agency, the original
victim, and the pawn or secondhand business in compliance with Subsection 
13-32a-109
(8), if
the prosecuting agency determines the article is no longer needed as evidence pending
resolution of the criminal case.
Section 23. Section 
13-32a-116.5
 is amended to read:
13-32a-116.5.
Contested disposition of property - Procedure. 
(1) If a pawn or secondhand business [
has received
] 
receives
 notice from a law
enforcement agency under Section 
13-32a-109
 that [
an article which was
] 
property that is
 the
subject of a hold or seizure shall be returned to an identified original victim, the pawn or
secondhand business may contest the determination and seek a specific alternative disposition
if within 15 
business
 days 
after the day on which the pawn or secondhand business receives the
notice
:
(a) the pawn or secondhand business gives notice to the identified original victim, by
certified mail, that the pawn or secondhand business contests the determination to return the
[
article
] 
property
 to the original victim; and
(b) files a petition 
in a court having jurisdiction over the matter
 to determine rightful
ownership of the [
article
] 
property
 as provided in Section 
24-3-104
.
(2) A pawn or secondhand business is guilty of a class B misdemeanor if the pawn or
secondhand business:
(a) holds or sells [
an article
] 
property
 in violation of a notification from a law
enforcement agency that the [
item
] 
property
 is to be returned to an original victim; and
(b) the pawn or secondhand business does not comply with the requirements of this
section within the time periods specified. 
Section 24. Section 
76-6-408
 is amended to read:
76-6-408.
Receiving stolen property -- Duties of pawnbrokers, secondhand
businesses, and coin dealers.
(1) As used in this section:
(a) "Pawnbroker" means the same as that term is defined in Section 
13-32a-102
.
(b) "Receives" means acquiring possession, control, title, or lending on the security of
the property.
[
(1)
] 
(2)
 A person commits theft if [
he
] 
the person
 receives, retains, or disposes of the
property of another knowing that [
it has been
] 
the property is
 stolen, or believing that [
it
] 
the
property is
 probably [
has been
] stolen, or who conceals, sells, withholds
,
 or aids in concealing,
selling, or withholding the property from the owner, knowing 
or believing
 the property to be
stolen, intending to deprive the owner of [
it
] 
the property
.
[
(2)
] 
(3)
 The knowledge or belief required for Subsection [
(1)
] 
(2)
 is presumed in the
case of an actor who:
(a) is found in possession or control of other property stolen on a separate occasion;
(b) has received other stolen property within the year preceding the receiving offense
charged;
(c) is a pawnbroker or person who
:
(i)
 has or operates a business dealing in or collecting used or secondhand merchandise
or personal property, or an agent, employee, or representative of a pawnbroker or person who
buys, receives, or obtains property
;
 and
[
fails to require the seller or person delivering the property to: (i) certify, in writing,
that he: has the legal rights to sell the property;
]
[
(ii) provide a legible print, preferably the right thumb, at the bottom of the certificate
next to his signature; and
]
[
(iii) provide at least one positive form of identification; or
]
(ii) (A) has not completely and accurately documented the information required under
Section 
13-32a-104
; or
(B) is found in possession of merchandise or personal property that violates Subsection
13-32a-104
(2); or
(d) is a coin dealer or an employee of the coin dealer as defined in Section 
13-32a-102
who does not comply with the requirements of Section 
13-32a-104.5
.
[
(3) Every
] 
(4) A
 pawnbroker or person who has or operates a business dealing in or
collecting used or secondhand merchandise or personal property, and every agent, employee, or
representative of a pawnbroker or person who fails to comply with [
the requirements of
]
Subsection [
(2)(c)
] 
(3)
 is presumed to have bought, received, or obtained the property knowing
[
it
] 
the property
 to have been stolen or unlawfully obtained. This presumption may be rebutted
by proof.
[
(4)
] 
(5)
 When, in a prosecution under this section, it appears from the evidence that
the defendant was a pawnbroker or a person who has or operates a business dealing in or
collecting used or secondhand merchandise or personal property, or was an agent, employee, or
representative of a pawnbroker or person, that the defendant bought, received, concealed, or
withheld the property without obtaining the information required in Subsection [
(2)(c) or
(2)(d)
] 
(3)(c) or (d)
, then the burden shall be upon the defendant to show that the property
bought, received, or obtained was not stolen.
[
(5)
] 
(6)
 Subsections [
(2)
] 
(3)
(c), [
(3)
] 
(4)
, and [
(4)
] 
(5)
 do not apply to scrap metal
processors as defined in Section 
76-6-1402
.
[
(6) As used in this section:
]
[
(a) "Dealer" means a person in the business of buying or selling goods.
]
[
(b) "Pawnbroker" means a person who:
]
[
(i) loans money on deposit of personal property, or deals in the purchase, exchange, or
possession of personal property on condition of selling the same property back again to the
pledge or depositor;
]
[
(ii) loans or advances money on personal property by taking chattel mortgage security
on the property and takes or receives the personal property into his possession and who sells
the unredeemed pledges; or
]
[
(iii) receives personal property in exchange for money or in trade for other personal
property.
]
[
(c) "Receives" means acquiring possession, control, or title or lending on the security
of the property.
]
Section 25. Section 
76-6-412
 is amended to read:
76-6-412.
Theft -- Classification of offenses -- Action for treble damages.
(1) Theft of property and services as provided in this chapter is punishable:
(a) as a second degree felony if the:
(i) value of the property or services is or exceeds $5,000;
(ii) property stolen is a firearm or an operable motor vehicle; or
(iii) property is stolen from the person of another;
(b) as a third degree felony if:
(i) the value of the property or services is or exceeds $1,500 but is less than $5,000;
(ii) the value of the property or services is or exceeds $500 and the actor has been twice
before convicted of any of the following offenses, if each prior offense was committed within
10 years of the date of the current conviction or the date of the offense upon which the current
conviction is based and at least one of those convictions is for a class A misdemeanor:
(A) any theft, any robbery, or any burglary with intent to commit theft;
(B) any offense under Title 76, Chapter 6, Part 5, Fraud; or
(C) any attempt to commit any offense under Subsection (1)(b)(ii)(A) or (B);
(iii) in a case not amounting to a second degree felony, the property taken is a stallion,
mare, colt, gelding, cow, heifer, steer, ox, bull, calf, sheep, goat, mule, jack, jenny, swine,
poultry, or a fur-bearing animal raised for commercial purposes; or
(iv) (A) the value of property or services is or exceeds $500 but is less than $1,500;
(B) the theft occurs on a property where the offender has committed any theft within
the past five years; and
(C) the offender has received written notice from the merchant prohibiting the offender
from entering the property pursuant to Subsection 
78B-3-108
(4);
(v) the actor has been previously convicted of a felony violation of any of the offenses
listed in Subsections (1)(b)(ii)(A) through (1)(b)(ii)(C);
(c) as a class A misdemeanor if:
(i) the value of the property stolen is or exceeds $500 but is less than $1,500;
(ii) (A) the value of property or services is less than $500;
(B) the theft occurs on a property where the offender has committed any theft within
the past five years; and
(C) the offender has received written notice from the merchant prohibiting the offender
from entering the property pursuant to Subsection 
78B-3-108
(4); or
(iii) the actor has been twice before convicted of any of the offenses listed in
Subsections (1)(b)(ii)(A) through (1)(b)(ii)(C), if each prior offense was committed within 10
years of the date of the current conviction or the date of the offense upon which the current
conviction is based; or
(d) as a class B misdemeanor if the value of the property stolen is less than $500 and
the theft is not an offense under Subsection (1)(c).
(2) Any individual who violates Subsection 
76-6-408
[
(1)
]
(2)
 or [
Subsection
]
76-6-413
(1), or commits theft of property described in Subsection 
76-6-412
(1)(b)(iii), is civilly
liable for three times the amount of actual damages, if any sustained by the plaintiff, and for
costs of suit and reasonable attorney fees.
Section 26. 
Repealer.
This bill repeals:
Section 
13-32a-107
,
Deadline for registers to be electronic -- Notice for updating.
Section 
13-32a-117
,
Property disposition if no criminal charges filed --
Administrative hearing.