HB314 HD1

Report Title:

Pawnbrokers; Secondhand Dealers

Description:

Requires pawnbrokers and secondhand dealers to file daily electronic reports of their property transactions to the county police departments. Allows businesses to file reports using existing software deemed sufficient by the police. Establishes a working group to review and make recommendations on the new reporting requirements. Makes appropriations for the working group and for the county police departments to implement the new reporting requirements. Effective July 1, 2008. (HB314 HD1)

HOUSE OF REPRESENTATIVES	H.B. NO.	314
TWENTY-THIRD LEGISLATURE, 2005		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

relating to pawnbrokers and secondhand dealers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 486M-2, Hawaii Revised Statutes, is amended to read as follows:

"§486M-2 Record of transactions. (a) Every dealer, or the agent, employee, or representative of the dealer operating as a pawnbroker or secondhand dealer shall, immediately upon receipt of any article, record the following information, on a form authorized by the chief of police in each county:

(1) The name and address of the dealer;

(2) The name, residence address, date of birth, and the age of the person from whom the article was received;

(3) The date and time the article was received by the dealer;

(4) The signature of the person from whom the article was received;

(5) The Hawaii [[]driver's[]] license number, or if the person does not possess a Hawaii[[]driver's[]] license, the number of and description of any government issued identification [~~which~~] that bears a photograph of the person from whom the article was received;

(6) A complete and accurate description of the article received, including all markings, names, initials, and inscriptions;

(7) A reasonable estimate of the fineness and weights of the precious and semiprecious metals and precious and semiprecious gems received; and

(8) The price paid by the dealer for each article.

(b) Upon request and at the discretion of the chief of police of each county, copies of all completed forms required by this section shall be surrendered, mailed, or electronically inputted and transmitted via modem or by facsimile transmittal to the chief of police or to the chief of police's authorized representative. The method of submittal to the chief of police shall be at the option of the [~~dealer.~~] chief of police.

(c) Every dealer, or the agent, employee, or representative of the dealer operating as a pawnbroker or secondhand dealer shall perform electronic daily reporting via the Internet or computer disk in a manner directed by the police department using software designated by the police department; provided that a dealer, or the agent, employee, or representative of the dealer operating as a pawnbroker or secondhand dealer shall be allowed to continue using existing software deemed by the police department to be sufficient to meet the electronic reporting requirements of this section.

(d) Every dealer, or the agent, employee, or representative of the dealer operating as a pawnbroker or secondhand dealer shall make a daily report to the police department in the form and manner as directed by the police department or agent thereof, of all property pledged, received, traded, bartered, bought, or otherwise acquired during the twenty-four hours ending at 8:00 p.m. on the date of the report. The report shall be transmitted electronically or on computer disk in accordance with procedures set forth by the chief of police.

(e) A dealer, or the agent, employee, or representative of the dealer operating as a pawnbroker or secondhand dealer shall not be responsible for a delay in transmission that results from a malfunction in the database.

(f) If a dealer, or the agent, employee, or representative of the dealer operating as a pawnbroker or secondhand dealer, discovers an error in the transmitted reportable data, the dealer, or the agent, employee, or representative of the dealer operating as a pawnbroker or secondhand dealer shall immediately correct the error. If the police department discovers an error in the transmitted reportable data, the dealer, or the agent, employee, or representative of the dealer operating as a pawnbroker or secondhand dealer shall be allowed at least thirty days to correct the error, commencing upon the receipt of notice of the error from the police department.

(g) If the dealer, or the agent, employee, or representative of the dealer operating as a pawnbroker or secondhand dealer experiences a computer malfunction, the dealer, or the agent, employee, or representative of the dealer operating as a pawnbroker or secondhand dealer shall be allowed a period of at least fifteen days within which to repair the malfunction. During this time period, the dealer, or the agent, employee, or representative of the dealer operating as a pawnbroker or secondhand dealer is not in violation of this section if the dealer, or the agent, employee, or representative of the dealer operating as a pawnbroker or secondhand dealer has notified the police department of the malfunction and is making a bona fide effort to repair the malfunction."

SECTION 2. (a) There is established a temporary working group within the department of commerce and consumer affairs for administrative purposes, to consist of representatives of:

(1) The county police departments;

(2) The Hawaii Pawnbrokers Association; and

(3) Any other pawnbrokers or secondhand dealers who are stakeholders affected by the electronic reporting requirements proposed by this Act.

(b) The working group shall review and discuss the feasibility of the electronic reporting requirements proposed by this Act, including:

(1) The development of reporting requirements that pawnbrokers and secondhand dealers would be able to meet in a manner that is not unduly burdensome;

(2) Software options for businesses to meet the reporting requirements;

(3) Minimum reporting requirements deemed necessary by the county police departments to effectively track the business transactions of pawnbrokers and secondhand dealers;

(4) The current ability of the county police departments to implement and enforce the reporting requirements, and any funding that may be necessary for those purposes; and

(5) A schedule for implementing the reporting requirements in a manner that would allow the county police departments, pawnbrokers, and secondhand dealers reasonable time to prepare for the new requirements.

(c) The working group shall submit a report of its findings and recommendations to the legislature no fewer than twenty days prior to the convening of the regular session of 2006.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2005-2006 to support the work of the working group pursuant to section 2, including required data collection, conduct of meetings, and report preparation.

The sum appropriated shall be expended by the department commerce and consumer affairs for the purposes of this Act.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2005-2006 for the Honolulu police department to implement the electronic reporting requirements of this Act.

The sum appropriated shall be expended by the city and county of Honolulu for the purposes of this Act.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2005-2006 for the county of Hawaii police department to implement the electronic reporting requirements of this Act.

The sum appropriated shall be expended by the county of Hawaii for the purposes of this Act.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2005-2006 for the county of Maui police department to implement the electronic reporting requirements of this Act.

The sum appropriated shall be expended by the county of Maui for the purposes of this Act.

SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2005-2006 for the county of Kauai police department to implement the electronic reporting requirements of this Act.

The sum appropriated shall be expended by the county of Kauai for the purposes of this Act.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2008.