SECTIONS 21625-21647 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 21625-21647

21625. It is the intent of the Legislature in enacting this article
to curtail the dissemination of stolen property and to facilitate
the recovery of stolen property by means of a uniform, statewide,
state-administered program of regulation of persons whose principal
business is the buying, selling, trading, auctioning, or taking in
pawn of tangible personal property and to aid the State Board of
Equalization to detect possible sales tax evasion.
Further, it is the intent of the Legislature in enacting this
article to require the uniform statewide reporting of tangible
personal property acquired by persons whose principal business is the
buying, selling, trading, auctioning, or taking in pawn of tangible
personal property, unless the property or the transaction is
specifically exempt herein, for the purpose of correlating these
reports with other reports of city, county, and city and county law
enforcement agencies and further utilizing the services of the
Department of Justice to aid in tracing and recovering stolen
property.
Further, it is the intent of the Legislature that this article
shall not be superseded or supplanted by the provisions of any
ordinance or charter of any city, county, or city and county.

21626. (a) A "secondhand dealer," as used in this article, means
and includes any person, copartnership, firm, or corporation whose
business includes buying, selling, trading, taking in pawn, accepting
for sale on consignment, accepting for auctioning, or auctioning
secondhand tangible personal property. A "secondhand dealer" does not
include a "coin dealer" or participants at gun shows or events, as
defined in Section 478.100 of Title 27 of the Code of Federal
Regulations, or its successor, who are not required to be licensed
pursuant to Section 12071 of the Penal Code, who are acting in
compliance with the requirements of Section 12070 and subdivision (d)
of Section 12072 of the Penal Code, and who are not a "Gun Show
Trader," as described in paragraph (5) of subdivision (b) of Section
12070 of the Penal Code.
(b) As used in this section, a "coin dealer" means any person,
firm, partnership, or corporation whose principal business is the
buying, selling, and trading of coins, monetized bullion, or
commercial grade ingots of gold, or silver, or other precious metals.

21626. (a) A "secondhand dealer," as used in this article, means
and includes any person, copartnership, firm, or corporation whose
business includes buying, selling, trading, taking in pawn, accepting
for sale on consignment, accepting for auctioning, or auctioning
secondhand tangible personal property. A "secondhand dealer" does not
include a "coin dealer" or participants at gun shows or events, as
defined in Section 478.100 of Title 27 of the Code of Federal
Regulations, or its successor, who are not required to be licensed
pursuant to Sections 26700 to 26915, inclusive, of the Penal Code,
who are acting in compliance with the requirements of Sections 26500
to 26585, inclusive, and 27545 of the Penal Code, and who are not a
"Gun Show Trader," as described in Sections 16620 and 26525 of the
Penal Code.
(b) As used in this section, a "coin dealer" means any person,
firm, partnership, or corporation whose principal business is the
buying, selling, and trading of coins, monetized bullion, or
commercial grade ingots of gold, or silver, or other precious metals.

21626.5. "Secondhand dealer," as used in this article, does not
include either of the following:
(a) Any person who performs the services of an auctioneer for a
fee or salary.
(b) Any person whose business is limited to the reconditioning and
selling of major household appliances, provided all the following
conditions are met:
(1) The person does not trade, take in pawn, accept for drop-off,
accept as a trade-in, accept for sale on consignment, accept for
auction, auction, or buy, except in bulk, the appliances.
(2) The person does not perform repair services for owners of
appliances unless the appliance was purchased from the person.
(3) The person has never been convicted of the crime of attempting
to receive or receiving stolen property or any other theft-related
crime.

21627. (a) As used in this article, "tangible personal property"
includes, but is not limited to, all secondhand tangible personal
property which bears a serial number or personalized initials or
inscription or which, at the time it is acquired by the secondhand
dealer, bears evidence of having had a serial number or personalized
initials or inscription.
(b) "Tangible personal property" also includes, but is not limited
to, the following:
(1) All tangible personal property, new or used, including motor
vehicles, received in pledge as security for a loan by a pawnbroker.
(2) All tangible personal property that bears a serial number or
personalized initials or inscription which is purchased by a
secondhand dealer or a pawnbroker or which, at the time of such
purchase, bears evidence of having had a serial number or
personalized initials or inscription.
(3) All personal property commonly sold by secondhand dealers
which statistically is found through crime reports to the Attorney
General to constitute a significant class of stolen goods. A list of
such personal property shall be supplied by the Attorney General to
all local law enforcement agencies. Such list shall be reviewed
periodically by the Attorney General to insure that it addresses
current problems with stolen goods.
(c) As used in this article, "tangible personal property" does not
include any new goods or merchandise purchased from a bona fide
manufacturer or distributor or wholesaler of such new goods or
merchandise by a secondhand dealer. For the purposes of this article,
however, a secondhand dealer shall retain for one year from the date
of purchase, and shall make available for inspection by any law
enforcement officer, any receipt, invoice, bill of sale or other
evidence of purchase of such new goods or merchandise.
(d) As used in this article, "tangible personal property" does not
include coins, monetized bullion, or commercial grade ingots of
gold, silver, or other precious metals. "Commercial grade ingots"
means 0.99 fine ingots of gold, silver, or platinum, or 0.925 fine
sterling silver art bars and medallions, provided that the ingots,
art bars, and medallions are marked by the refiner or fabricator as
to their assay fineness.

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 Department of Justice and local
law enforcement agencies, in consultation with representatives from
the secondhand dealer and coin dealer businesses, shall develop a
standard format 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, each secondhand dealer and coin
dealer shall electronically report using this format the information
required by this section under these reporting categories. 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 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 described in paragraph (1) has
been developed, 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 Article 4 (commencing with
Section 12071) of Chapter 1 of Title 2 of Part 4 of the Penal Code
from the reporting requirements for the delivery of firearms pursuant
to Section 12071 of the Penal Code.
(l) This section shall become operative on July 1, 2010.

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 Department of Justice and local
law enforcement agencies, in consultation with representatives from
the secondhand dealer and coin dealer businesses, shall develop a
standard format 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, each secondhand dealer and coin
dealer shall electronically report using this format the information
required by this section under these reporting categories. 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 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 described in paragraph (1) has
been developed, 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.

21628.1. (a) Notwithstanding Section 21628, submission of
transaction reports are not required to be submitted to the local law
enforcement agency if the report of an acquisition of the same
property from the same customer has been submitted within the
preceding 12 months, except when submission of the reports is
specifically requested in writing by the local licensing authority.
(b) This section shall become operative on July 1, 2010.

21628.2. (a) For purposes of this section, the "department" shall
mean the Department of Justice.
(b) Every secondhand dealer described in Section 21626 shall, in a
format prescribed by the department, and on the day of the
transaction, electronically report to the department each firearm
purchased, taken in trade, taken in pawn, accepted for sale on
consignment, or accepted for auctioning. The secondhand dealer shall
retain a copy of the report submitted to the department and make it
available for inspection by the department, any peace officer, or any
local law enforcement employee who is authorized by Section 12071 of
the Penal Code to inspect a firearms transaction record.
(c) The department may retain secondhand dealer reports to
determine whether a firearm taken in by a secondhand dealer has been
reported lost or stolen. If the department's records indicate that
the firearm is lost or stolen, the department shall notify the law
enforcement agency that entered the information in the department's
records and a law enforcement agency with jurisdiction over the
secondhand dealer's business location about the status of the
firearm. The Dealers' Record of Sale shall be retained by the
department pursuant to paragraph (1) of subdivision (b) of Section
11106 of the Penal Code.
(d) All information in the secondhand dealer report of each
firearm described in subdivision (a) shall be electronically provided
by the department to the secure mailbox of the local law enforcement
agency described in Section 21630 within one working day of receipt
by the department.
(e) This section shall become operative on July 1, 2010.

21628.2. (a) For purposes of this section, the "department" shall
mean the Department of Justice.
(b) Every secondhand dealer described in Section 21626 shall, in a
format prescribed by the department, and on the day of the
transaction, electronically report to the department each firearm
purchased, taken in trade, taken in pawn, accepted for sale on
consignment, or accepted for auctioning. The secondhand dealer shall
retain a copy of the report submitted to the department and make it
available for inspection by the department, any peace officer, or any
local law enforcement employee who is authorized by Sections 26700
to 26915, inclusive, of the Penal Code to inspect a firearms
transaction record.
(c) The department may retain secondhand dealer reports to
determine whether a firearm taken in by a secondhand dealer has been
reported lost or stolen. If the department's records indicate that
the firearm is lost or stolen, the department shall notify the law
enforcement agency that entered the information in the department's
records and a law enforcement agency with jurisdiction over the
secondhand dealer's business location about the status of the
firearm. The Dealers' Record of Sale shall be retained by the
department pursuant to paragraph (1) of subdivision (b) of Section
11106 of the Penal Code.
(d) All information in the secondhand dealer report of each
firearm described in subdivision (a) shall be electronically provided
by the department to the secure mailbox of the local law enforcement
agency described in Section 21630 within one working day of receipt
by the department.
(e) This section shall become operative on July 1, 2010.

21628.5. (a) Every business machine dealer shall report all used
business machines which he has purchased, taken in trade, or accepted
for sale or consignment, from an individual, to the chief of police
or to the sheriff in accordance with the provisions of Section 21628
and Section 21630.
Every business machine dealer shall report all used business
machines which he has repaired, if required to do so by the chief of
police or the sheriff in accordance with the provisions of Section
21628 and Section 21630.
No report of repair shall be required from a dealer servicing or
repairing a machine in the possession of the owner to whom that
dealer sold that machine when it was new.
(b) As used in this section, the term "business machines"
includes, but is not limited to, typewriters, adding machines,
check-writing devices, cash registers, calculators, addressing
machines, copying and accounting equipment, letter-sorting and
folding devices, and recording equipment, but does not include office
furniture or fixtures.

21629. The provisions of this article shall not apply to any
tangible personal property which has been:
(a) Acquired from another secondhand dealer; provided the
secondhand dealer selling or trading the tangible personal property
states in writing under penalty of perjury, along with a description
of the property, on an interdealer transfer form or an itemized bill
of sale, that the report or reports required by this article have
been properly made and submitted by that dealer. A copy of the form
or the itemized bill of sale shall be delivered to the acquiring
dealer at the time the transaction occurs. Interdealer transfer forms
shall be provided at actual cost by the Department of Justice.
The dealers involved in the transaction shall retain their copy of
the interdealer transfer form or itemized bill of sale for a period
of three years as a matter of record, and shall make them available
for inspection by any law enforcement officer.
(b) Acquired in a nonjudicial sale, transfer, assignment,
assignment for the benefit of creditors, or consignment of the assets
or stock in trade, in bulk, or a substantial part thereof, of an
industrial or commercial enterprise for purposes of voluntary
dissolution or liquidation of the seller's business, or for the
purpose of disposing of an excessive quantity of personal property;
or which has been acquired in a nonjudicial sale or transfer from an
owner of his or her entire household of personal property, or a
substantial part thereof; provided, the secondhand dealer retains in
his or her place of business for a period of three years a copy of
the bill of sale, receipt, inventory list, or other transfer document
as a matter of record which shall be made available for inspection
by any law enforcement officer; and provided further, that the
secondhand dealer notifies the chief of police or the sheriff that
exemption from reporting is being claimed under this subdivision.
"Industrial or commercial enterprise" and "owner" as used in this
subdivision do not include a secondhand dealer;
(c) Acquired in a sale made by any public officer in his or her
official capacity, trustee in bankruptcy, executor, administrator,
receiver, or public official acting under judicial process or
authority, or which has been acquired in a sale made upon the
execution of, or by virtue of, any process issued by a court, or
under the provisions of Division 7 (commencing with Section 7101) of
the Commercial Code;
(d) Acquired as the surplus property of the United States
government or of a state, city, county, city and county, municipal
corporation, or public district and which after requisition or
acquisition by the United States government or by a state, city,
county, city and county, municipal corporation, or public district
has never thereafter been sold at retail; and
(e) Reported by a secondhand dealer as an acquisition or a
purchase, or which has been reported as destroyed or otherwise
disposed of, (1) to a state agency by the authority of any other law
of this State; or (2) to a city, county, or city and county officer
or agency by the authority of any other law of this State or a city,
county, or city and county ordinance.
(f) Acquired by persons, firms, partnerships, or corporations who
buy, sell, or trade precious metals, whether in the form of coins or
commercial grade ingots, who: (1) are designated contract markets by
or registered with the Commodity Futures Trading Commission under the
Federal Commodities Exchange Act and acting pursuant thereto; or (2)
infrequently conduct their business directly with members of the
general public. As used in this subdivision, "infrequently" means
occasional and without regularity.

21629.5. Notwithstanding Section 21629, the provisions of this
article shall apply to any tangible personal property which has been
acquired by a secondhand dealer with the understanding or expectation
that such property would later be reacquired by the transferor or an
agent thereof.

21630. If the transaction takes 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. If the
transaction takes 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.

21631. Notwithstanding any other provisions of law, all tangible
personal property that is found in the shop of a pawnbroker,
secondhand dealer, or coin dealer, doing business under a California
secondhand dealer's license, shall be reported as required under
subdivisions (c) and (d) of Section 21628, including any additional
information required by Section 21628 that is known by the reporting
person, and shall be held as required under Section 21636 on forms as
required under Section 21633. If no claim is made for the property
for a period of 60 days after it is reported, the pawnbroker,
secondhand dealer, or coin dealer may treat the property as property
regularly acquired in the due course of business.

21633. The report forms approved by the Department of Justice shall
consist of not less than an original and two copies. The Department
of Justice shall not require the report form to consist of more than
an original and two copies when the forms are obtained from a source
other than the department. A local law enforcement agency may request
secondhand dealers within its jurisdiction to use a report form
consisting of more than an original and two copies. However, each
secondhand dealer or group of dealers shall be required only to use a
form consisting of an original and two copies when the dealer does
not use a form obtained from the Department of Justice.
The Department of Justice shall allow the use of forms which are
compatible with computerization. The original and the duplicate copy
shall be submitted by the secondhand dealer in accordance with the
provisions of Sections 21628 and 21630. One copy shall be retained by
the secondhand dealer in his place of business for a period of three
years and shall be made available for inspection by any law
enforcement officer.

21634. The chief of police or the sheriff who receives a report on
a form filed pursuant to the provisions of this article shall daily
submit the original to the Department of Justice.

21636. (a) Every secondhand dealer and coin dealer shall retain in
his or her possession for a period of 30 days all tangible personal
property reported under Sections 21628, 21629, and 21630, and
commencing July 1, 2010, Section 21628.2. The 30-day holding period
with respect to this tangible personal property shall commence with
the date the report of its acquisition was made to the chief of
police or to the sheriff by the secondhand dealer and coin dealer.
The chief of police or the sheriff may for good cause, as specified
by the Department of Justice, or the Department of Justice may for
good cause authorize prior disposition of any property described in a
specific report, provided that a secondhand dealer who disposes of
tangible personal property pursuant to that authorization shall
report the sale thereof to the chief of police or the sheriff or the
Department of Justice.
(b) During the 30-day holding period specified in subdivision (a)
every secondhand dealer and coin dealer shall produce any tangible
personal property reported under Sections 21628, 21629, and 21630,
and commencing July 1, 2010, Section 21628.2, for inspection by any
peace officer or employee designated by the chief of police or
sheriff or the Department of Justice.
(c) Property subject to inspection as specified in subdivision (b)
and property held in pawn, which is stored off the business premises
of the licensee, shall, upon request for inspection, be produced at
the licensee's business premises within one business day of a
request.
(d) 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 for
inspection, as specified in subdivision (b), any firearm acquired at
a gun show or event within 48 hours of the request of the local law
enforcement agency in the jurisdiction where the gun show or event
was conducted at a location specified by the local law enforcement
agency.

21636.5. No secondhand dealer or coin dealer shall promise a seller
of tangible property that the seller may repurchase property sold to
the secondhand dealer or coin dealer.

21636.6. It is unlawful for any person, who is required to be
licensed under Section 21640, to publicly advertise any matter
relating to the business for which the license is required without
including the license number.

21637. Nothing herein contained shall be deemed to excuse
compliance with the provisions of any city, county, or city and
county ordinance or any other state law pertaining to or covering the
reporting, holding, or releasing of tangible personal property, not
inconsistent with the provisions of this article, except that no
city, county, or city and county or any other state agency shall
adopt the following:
(a) Holding, reporting, or identification requirements for
transactions involving coins, monetized bullion, or commercial grade
ingots of gold, silver, or other precious metals.
(b) Identification, holding, or reporting requirements for the
acquisition of tangible personal property, in the ordinary course of
business, by pawnbrokers and secondhand dealers, other than as set
forth in Sections 21628, 21630, 21633, and 21636 of this code, and
commencing July 1, 2010, Section 21628.2 of this code, and Section
21208 of the Financial Code.

21638. The provisions of this article shall not prohibit enactment,
amendment, or enforcement by any city, county, or city and county of
any local ordinance relating to a secondhand dealer or coin dealer
which is not inconsistent with the provisions of this article, except
that no city, county, or city and county, or any other state agency
shall adopt the following:
(a) Holding, reporting, or identification requirements for
transactions involving coins, monetized bullion, or commercial grade
ingots of gold, silver, or other precious metals.
(b) Identification, holding, or reporting requirements for the
acquisition of tangible personal property, in the ordinary course of
business, by pawnbrokers and secondhand dealers, other than as set
forth in Sections 21628, 21630, 21633, and 21636 of this code, and
commencing July 1, 2010, Section 21628.2 of this code, and Section
21208 of the Financial Code.

21638.5. Sections 21636, 21637, and 21638, insofar as they apply to
holding periods for personal property, are not applicable to
personal property pledged to a pawnbroker with respect to the
redemption of personal property by the pledgor.

21640. It is unlawful for any person to engage in the business of
secondhand dealer, as defined in Section 21626, without being
licensed as provided in this article.

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.
(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) 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 Section
12071 of the Penal Code, who is conducting business at gun shows or
events pursuant to subparagraph (B) of paragraph (1) of subdivision
(b) of Section 12071 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.

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.
(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) 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.

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.
(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) 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.

21643. No transactions that require reporting under Section 21628,
or commencing July 1, 2010, Section 21628.2, shall be engaged in with
a minor.

21645. A violation of any provision of this article under
circumstances where a person knows or should have known that a
violation was being committed is a misdemeanor punishable as follows:
(a) For the first offense, a fine of up to one thousand five
hundred dollars ($1,500) or imprisonment in the county jail up to two
months, or both.
(b) For the second offense, a fine of up to five thousand dollars
($5,000) or imprisonment in the county jail up to four months, or
both.
(c) For the third, and any subsequent offense, a fine of up to
twenty-five thousand dollars ($25,000) or imprisonment in the county
jail up to six months, or both.

21646. The district attorney or the Attorney General, in the name
of the people of the State of California, may bring an action to
enjoin the violation or the threatened violation of any provision of
this article or of any regulation made pertaining to the provisions
of this article. Any proceeding brought hereunder shall be governed
in all respects by the provisions of Chapter 3 (commencing with
Section 525) of Title 7 of Part 2 of the Code of Civil Procedure.

21647. (a) Whenever any peace officer has probable cause to believe
that property, except coins, monetized bullion, or "commercial grade
ingots" as defined in subdivision (d) of Section 21627, in the
possession of a pawnbroker, secondhand dealer, or coin dealer is
stolen, the peace officer may place a hold on the property for a
period not to exceed 90 days. When a peace officer places a hold on
the property, the peace officer shall give the pawnbroker, secondhand
dealer, or coin dealer a written notice at the time the hold is
placed, describing the item or items to be held. During that period
the pawnbroker, secondhand dealer, or coin dealer shall not release
or dispose of the property, except pursuant to a court order or upon
receipt of a written authorization signed by any peace officer who is
a member of the law enforcement agency of which the peace officer
placing the hold on the property is a member. A pawnbroker,
secondhand property dealer, or coin dealer shall not be subject to
civil liability for compliance with this section.
(b) Whenever property that is in the possession of a pawnbroker,
secondhand dealer, or coin dealer, whether or not the property has
been placed on hold, is required by a peace officer in a criminal
investigation, the pawnbroker, secondhand dealer, or coin dealer,
upon reasonable notice, shall produce the property at reasonable
times and places or may deliver the property to the peace officer
upon the request of any peace officer.
(c) Whenever a law enforcement agency has knowledge that property
in the possession of a pawnbroker, secondhand dealer, or coin dealer
has been reported as lost or stolen, the law enforcement agency shall
notify in writing the person who reported the property as lost or
stolen of the following:
(1) The name, address, and telephone number of the pawnbroker,
secondhand dealer, or coin dealer who reported the acquisition of the
property.
(2) That the law neither requires nor prohibits payment of a fee
or any other condition in return for the surrender of the property,
except that when the person who reported the property lost or stolen
does not choose to participate in the prosecution of an identified
alleged thief, the person shall pay the pawnbroker, secondhand
dealer, or coin dealer the "out-of-pocket" expenses paid in the
acquisition of the property in return for the surrender of the
property.
(3) That if the person who reported the property as lost or stolen
takes no action to recover the property from the pawnbroker,
secondhand dealer, or coin dealer within 60 days of the mailing of
the notice, the pawnbroker, secondhand dealer, or coin dealer may
treat the property as other property received in the ordinary course
of business. During the 60-day notice period, the pawnbroker,
secondhand dealer, or coin dealer may not release the property to any
other person.
(4) That a copy of the notice, with the address of the person who
reported the property as lost or stolen deleted, will be mailed to
the pawnbroker, secondhand dealer, or coin dealer who is in
possession of the property.
(d) When property that is in the possession of a pawnbroker,
secondhand dealer, or coin dealer is subject to a hold as provided in
subdivision (a), and the property is no longer required for the
purpose of a criminal investigation, the law enforcement agency that
placed the hold on the property shall release the hold on the
property. When the law enforcement agency has knowledge that the
property has been reported lost or stolen, the law enforcement agency
shall then make notification to the person who reported the property
as lost or stolen pursuant to subdivision (c).
(e) If a pledgor seeks to redeem property that is subject to a
hold, the pawnbroker shall advise the pledgor of the name of the
peace officer who placed the hold on the property and the name of the
law enforcement agency of which the officer is a member. If the
property is not required to be held pursuant to a criminal
prosecution the hold shall be released.
(f) Whenever information regarding allegedly lost or stolen
property is entered into the Department of Justice automated property
system or automated firearms system, and the property is thereafter
identified and found to be in the possession of a pawnbroker,
secondhand dealer, or coin dealer, and the property is thereafter
placed on a hold pursuant to this section and the hold, including any
additional hold, is allowed to lapse, or 60 days elapse following
the delivery of the notice required to be given by this section to
the person who reported the property to be lost or stolen without a
claim being made by that person, whichever is later, the pawnbroker,
secondhand dealer, or coin dealer may mail under a Certificate of
Mailing issued by the United States Post Office, addressed to the law
enforcement agency that placed the property on hold, a written
request to delete the property listing from the Department of Justice
automated property system or automated firearms system, as is
applicable. Within 30 days after the request has been mailed, the law
enforcement agency shall either cause the property listing to be
deleted as requested or place a hold on the property. If no law
enforcement agency takes any further action with respect to the
property within 45 days after the mailing of the request, the
pawnbroker, secondhand dealer, or coin dealer may presume that the
property listing has been deleted as requested and may thereafter
deal with the property accordingly, and shall not be subject to
liability arising from the failure of the removal of the property
listing from the Department of Justice automated property system or
automated firearms system.
(g) Nothing in this section shall be construed to alter the
authority of a peace officer to seize property pursuant to any other
provision of statutory or case law.