Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Intergovernmental Affairs, to which was referred S.B. No. 602 entitled:

begs leave to report as follows:

The purpose of this measure is to require pawnshops and second hand dealers to electronically file daily reports via the Internet or computer disc with the county police department, in a manner as directed by the police using software designated by the police.

Your Committee received testimony in support of this measure from the Honolulu Police Department (HPD), Hawaii Tourism Authority, State Farm Mutual Automobile Insurance Company, Hawaii Pawnbrokers Association, and one individual. Comments were received from an individual.

Your Committee views this measure as being necessary to investigate the growing market of "fencing" stolen goods. A popular avenue for turning the goods into cash is pawnshops and second hand dealers. Electronic filing of pawn shop transactions daily would go a long way to informing police immediately of the transaction, so that police can immediately investigate the merchandise by matching it up with recent burglary reports. This would increase the rate of stolen property recovery and identify the possible culprits.

However, your Committee is concerned that dictating the software to be used could pose unnecessary difficulties to pawnshops and second hand dealers. For example, testimony indicated that some shop owners are elderly and do not have a computer. Your Committee requests the HPD to work collaboratively with interested parties such as the Hawaii Pawnbrokers Association to select the most appropriate computer system and software to carry out the purposes of this Act.

Your Committee has amended this measure by allowing the police to require the electronic transmission of a photo of the property and requiring the police to make that photo available to the public as appropriate.

As affirmed by the record of votes of the members of your Committee on Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 602, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 602, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection, and Housing.