California Pawnshop and Secondhand Dealer Owners: Still Reporting by Paper Format?

Advise Your Local Law Enforcement Agency That You Will Begin Uploading Your Transaction Data Electronically to CAPSS

On August 17, 2012, AB 391 (Assemblyman Pan) was signed into law by Governor Brown. This bill authorized the collection of an additional $288 per licensee in order to establish a single, statewide and uniform electronic database of tangible personal property acquired by pawnbrokers and secondhand dealers operating in California. After sufficient funds were collected by the California Department of Justice, that agency developed and has now implemented the California Pawnbrokers SecondhandDealers System (CAPSS).

Pursuant to Business and Professions Code section 21628(j)(2)(B), as amended by AB 391, pawnbrokers and secondhand dealers, once notified by their local law enforcement agency that electronic reporting through CAPSS was to begin, had to report for a period of thirty (30) days both electronically via CAPSS and by paper format on the traditional JUS123 forms their property acquisition. Many agencies have now notified licensees of the requirement to upload to CAPSS. For those businesses who are already reporting to CAPSS and have discontinued paper reporting to their local police or sheriff's departments, congratulations! In our future blog posts we will discuss problems and challenges reporting transactions via CAPSS.

For those of you who have yet to receive a notice from your local law enforcement agency, we strongly recommend that you consider notifying that agency that you will begin to upload to CAPSS and, for a period of thirty days, that you will also be mailing that agency the traditional paper report (JUS123). That notification should also state that you will discontinue reporting on paper format after the thirtieth day. Be uploading to the CAPSS system, you can start the requisite thirty day hold period immediately on the transmission of that data rather than on the mailing date.

Remember, only by complying with the identification and reporting requirement specified in Bus. & Prof. C. § 21628 and uploading to CAPSS will you be able to perfect your title to the property you buy, take on consignment or in pledged. See, Bus. & Prof. C. §21628(b)(1).

If you would like a template for the notification letter discussed above, contact our office. Members of the California Pawnbrokers Association can obtain this form free by accessing the membership services area of CAPA's website ( www.californiapawnbrokers.org) or by calling CAPA's Executive Director, Kim Andosca, at (916) 669-5322.

Categories: Business Law

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