| 1 | A bill to be entitled |
| 2 | An act relating to secondhand dealers; amending s. 538.03, |
| 3 | F.S.; revising definitions; revising applicability of ch. |
| 4 | 538, F.S.; exempting persons or entities offering |
| 5 | secondhand goods or personal property for sale, purchase, |
| 6 | consignment, or trade via the Internet from the provisions |
| 7 | of ch. 538, F.S., under certain circumstances; exempting |
| 8 | certain businesses that sell, rent, or trade motion |
| 9 | picture videos or video games from ch. 538, F.S.; amending |
| 10 | s. 538.04, F.S.; revising recordkeeping requirements for |
| 11 | secondhand dealers; providing penalties for knowingly |
| 12 | giving false verification of ownership or a false or |
| 13 | altered identification, and for receiving money from a |
| 14 | secondhand dealer for goods sold, consigned, or traded if |
| 15 | the value of the money received is less than $300, and if |
| 16 | the value of the money received is $300 or more; providing |
| 17 | for the electronic transfer of secondhand dealer |
| 18 | transactions under specified circumstances; authorizing |
| 19 | appropriate law enforcement agencies to provide a |
| 20 | secondhand dealer with a computer and other equipment |
| 21 | necessary to electronically transfer secondhand dealer |
| 22 | transactions; providing procedures with respect to |
| 23 | electronic transfer of secondhand dealer transactions; |
| 24 | amending s. 538.05, F.S.; revising provisions relating to |
| 25 | the inspection of records and premises of secondhand |
| 26 | dealers; amending s. 538.06, F.S.; revising provisions |
| 27 | with respect to the holding of goods upon probable cause |
| 28 | that the goods are stolen; providing for payment of |
| 29 | restitution, attorney's fees, and costs to a secondhand |
| 30 | dealer under specified circumstances; revising the time |
| 31 | limit for maintenance of transaction records by dealers in |
| 32 | secondhand property; amending s. 538.07, F.S.; revising |
| 33 | provisions relating to restitution for stolen property |
| 34 | recovered from a secondhand dealer; amending s. 538.09, |
| 35 | F.S.; revising provisions with respect to registration as |
| 36 | a secondhand dealer; revising conditions under which |
| 37 | registration may be denied, revoked, restricted, or |
| 38 | suspended by the Department of Revenue; repealing s. |
| 39 | 538.16, F.S., relating to disposal of property by |
| 40 | secondhand dealers; amending s. 516.02, F.S.; removing |
| 41 | cross-references; reenacting s. 790.335(3)(f), F.S., which |
| 42 | provides a second degree felony penalty for any secondhand |
| 43 | dealer who contracts with a specified third-party provider |
| 44 | or electronically transmits certain records of firearms |
| 45 | transactions to any third-party provider; providing an |
| 46 | effective date. |
| 47 |
|
| 48 | Be It Enacted by the Legislature of the State of Florida: |
| 49 |
|
| 50 | Section 1. Section 538.03, Florida Statutes, is amended to |
| 51 | read: |
| 52 | 538.03 Definitions; applicability.-- |
| 53 | (1) As used in this part, the term: |
| 54 | (a) "Secondhand dealer" means any person, corporation, or |
| 55 | other business organization or entity which is not a secondary |
| 56 | metals recycler subject to part II and which is engaged in the |
| 57 | business of purchasing, consigning, or trading pawning |
| 58 | secondhand goods. However, secondhand dealers are not limited to |
| 59 | dealing only in items defined as secondhand goods in paragraph |
| 60 | (g). Except as provided in subsection (2), the term means |
| 61 | pawnbrokers, jewelers, precious metals dealers, garage sale |
| 62 | operators, secondhand stores, and consignment shops. |
| 63 | (b) "Precious metals dealer" means a secondhand dealer who |
| 64 | normally or regularly engages in the business of buying used |
| 65 | precious metals for resale. The term does not include those |
| 66 | persons involved in the bulk sale of precious metals from one |
| 67 | secondhand or precious metals dealer to another. |
| 68 | (c) "Pawnbroker" means any person, corporation, or other |
| 69 | business organization or entity which is regularly engaged in |
| 70 | the business of making pawns but does not include a financial |
| 71 | institution as defined in s. 655.005 or any person who regularly |
| 72 | loans money or any other thing of value on stocks, bonds, or |
| 73 | other securities. |
| 74 | (d) "Pawn" means either of the following transactions: |
| 75 | 1. Loan of money.--A written or oral bailment of personal |
| 76 | property as security for an engagement or debt, redeemable on |
| 77 | certain terms and with the implied power of sale on default. |
| 78 | 2. Buy-sell agreement.--An agreement whereby a purchaser |
| 79 | agrees to hold property for a specified period of time to allow |
| 80 | the seller the exclusive right to repurchase the property. A |
| 81 | buy-sell agreement is not a loan of money. |
| 82 | (c)(e) "Secondhand store" means the place or premises at |
| 83 | which a secondhand dealer is registered to conduct business as a |
| 84 | secondhand dealer, or conducts business, including pawn shops. |
| 85 | (d)(f) "Consignment shop" means a shop engaging in the |
| 86 | business of accepting for sale, on consignment, secondhand goods |
| 87 | which, having once been used or transferred from the |
| 88 | manufacturer to the dealer, are then received into the |
| 89 | possession of a third party. |
| 90 | (e) "Acquire" means to obtain by purchase, consignment, or |
| 91 | trade. |
| 92 | (f)(g) "Secondhand goods" means personal property |
| 93 | previously owned or used, which is not regulated metals property |
| 94 | regulated under part II and which is purchased, consigned, or |
| 95 | traded pawned as used property. Such secondhand goods shall not |
| 96 | include office furniture, pianos, books, clothing, organs, |
| 97 | coins, motor vehicles, costume jewelry, and secondhand sports |
| 98 | equipment that is not permanently labeled with a serial number. |
| 99 | For purposes of this paragraph, "secondhand sports equipment" |
| 100 | does not include golf clubs. be limited to watches; diamonds, |
| 101 | gems, and other precious stones; fishing rods, reels, and |
| 102 | tackle; audio and video electronic equipment, including |
| 103 | television sets, compact disc players, radios, amplifiers, |
| 104 | receivers, turntables, tape recorders; video tape recorders; |
| 105 | speakers and citizens' band radios; computer equipment; radar |
| 106 | detectors; depth finders; trolling motors; outboard motors; |
| 107 | sterling silver flatware and serving pieces; photographic |
| 108 | equipment, including cameras, video and film cameras, lenses, |
| 109 | electronic flashes, tripods, and developing equipment; microwave |
| 110 | ovens; animal fur coats; marine equipment; video games and |
| 111 | cartridges; power lawn and landscape equipment; office equipment |
| 112 | such as copiers, fax machines, and postage machines but |
| 113 | excluding furniture; sports equipment; golf clubs; weapons, |
| 114 | including knives, swords, and air guns; telephones, including |
| 115 | cellular and portable; firearms; tools; calculators; musical |
| 116 | instruments, excluding pianos and organs; lawnmowers; bicycles; |
| 117 | typewriters; motor vehicles; gold, silver, platinum, and other |
| 118 | precious metals excluding coins; and jewelry, excluding costume |
| 119 | jewelry. |
| 120 | (g)(h) "Transaction" means any purchase, consignment, or |
| 121 | trade pawn of secondhand goods by a secondhand dealer. |
| 122 | (h)(i) "Precious metals" means any item containing any |
| 123 | gold, silver, or platinum, or any combination thereof, |
| 124 | excluding: |
| 125 | 1. any chemical or any automotive, photographic, |
| 126 | electrical, medical, or dental materials or electronic parts. |
| 127 | 2. Any coin with an intrinsic value less than its |
| 128 | numismatic value. |
| 129 | 3. Any gold bullion coin. |
| 130 | 4. Any gold, silver, or platinum bullion that has been |
| 131 | assayed and is properly marked as to its weight and fineness. |
| 132 | 5. Any coin which is mounted in a jewelry setting. |
| 133 | (i)(j) "Department" means the Department of Revenue. |
| 134 | (k) "Pledge" means pawn or buy-sell agreement. |
| 135 | (2) This chapter does not apply to: |
| 136 | (a) Any secondhand goods transaction involving an |
| 137 | organization or entity registered with the state as a nonprofit, |
| 138 | religious, or charitable organization or any school-sponsored |
| 139 | association or organization other than a secondary metals |
| 140 | recycler subject to the provisions of part II. |
| 141 | (b) A law enforcement officer acting in an official |
| 142 | capacity. |
| 143 | (c) A trustee in bankruptcy, executor, administrator, or |
| 144 | receiver who has presented proof of such status to the |
| 145 | secondhand dealer. |
| 146 | (d) Any public official acting under judicial process or |
| 147 | authority who has presented proof of such status to the |
| 148 | secondhand dealer. |
| 149 | (e) A sale on the execution, or by virtue of any process |
| 150 | issued by a court, if proof thereof has been presented to the |
| 151 | secondhand dealer. |
| 152 | (f) Any garage sale operator who holds garage sales less |
| 153 | than 10 weekends per year. |
| 154 | (g) Any person at antique, coin, or collectible shows or |
| 155 | sales. |
| 156 | (h) Any person who sells household personal property as an |
| 157 | agent for the property owner or their representative pursuant to |
| 158 | a written agreement at that person's residence. |
| 159 | (i) The purchase, consignment, or trade pawn of secondhand |
| 160 | goods from one secondhand dealer to another secondhand dealer |
| 161 | when the selling secondhand dealer has complied with the |
| 162 | requirements of this chapter. |
| 163 | (j) Any person accepting a secondhand good as a trade-in |
| 164 | for a similar item of greater value. |
| 165 | (k) Any person purchasing, consigning, or trading pawning |
| 166 | secondhand goods at a flea market regardless of whether at a |
| 167 | temporary or permanent business location at the flea market. |
| 168 | (l) Any auction business as defined in s. 468.382(1). |
| 169 | (m) Any business that is registered with the Department of |
| 170 | Revenue for sales tax purposes as an antique dealer pursuant to |
| 171 | chapter 212 and that purchases secondhand goods from the |
| 172 | property owner or her or his representative at the property |
| 173 | owner's residence pursuant to a written agreement that states |
| 174 | the name, address, and telephone number of the property owner |
| 175 | and the type of property purchased. |
| 176 | (n) A business that contracts with other persons or |
| 177 | entities to offer its secondhand goods for sale, purchase, |
| 178 | consignment, or trade via an Internet website, and that |
| 179 | maintains a shop, store, or other business premises for this |
| 180 | purpose, if all of the following apply: |
| 181 | 1. The secondhand goods must be available on the website |
| 182 | for viewing by the general public at no charge; |
| 183 | 2. The records of the sale, purchase, consignment, or |
| 184 | trade must be maintained for at least 2 years; |
| 185 | 3. The records of the sale, purchase, consignment, or |
| 186 | trade, and the description of the secondhand goods as listed on |
| 187 | the website, must contain the serial number of each item, if |
| 188 | any; |
| 189 | 4. The secondhand goods listed on the website must be |
| 190 | searchable based upon the state or zip code; |
| 191 | 5. The business must provide the appropriate law |
| 192 | enforcement agency with the name or names under which it |
| 193 | conducts business on the website; |
| 194 | 6. The business must allow the appropriate law enforcement |
| 195 | agency to inspect its business premises at any time during |
| 196 | normal business hours; |
| 197 | 7. Any payment by the business resulting from such a sale, |
| 198 | purchase, consignment, or trade must be made to the person or |
| 199 | entity with whom the business contracted to offer the goods and |
| 200 | must be made by check or via a money transmitter licensed under |
| 201 | part II of chapter 560; and |
| 202 | 8.a. At least 48 hours after the estimated time of |
| 203 | contracting to offer the secondhand goods, the business must |
| 204 | verify that any item having a serial number is not stolen |
| 205 | property by entering the serial number of the item into the |
| 206 | Department of Law Enforcement's stolen article database located |
| 207 | at the Florida Crime Information Center's public access system |
| 208 | website. The business shall record the date and time of such |
| 209 | verification on the contract covering the goods. If such |
| 210 | verification reveals that an item is stolen property, the |
| 211 | business shall immediately remove the item from any website on |
| 212 | which it is being offered and notify the appropriate law |
| 213 | enforcement agency; or |
| 214 | b. The business must provide the appropriate law |
| 215 | enforcement agency with an electronic copy of the name, address, |
| 216 | phone number, driver's license number, and issuing state of the |
| 217 | person with whom the business contracted to offer the goods, as |
| 218 | well as an accurate description of the goods, including make, |
| 219 | model, serial number, and any other unique identifying marks, |
| 220 | numbers, names, or letters that may be on an item, in a format |
| 221 | agreed upon by the business and the appropriate law enforcement |
| 222 | agency. This information must be provided to the appropriate law |
| 223 | enforcement agency within 24 hours after entering into the |
| 224 | contract unless other arrangements are made between the business |
| 225 | and the law enforcement agency. Any person purchasing, |
| 226 | consigning, or pawning secondhand goods ordered by mail, |
| 227 | computer-assisted shopping, media-assisted, media-facilitated, |
| 228 | or media-solicited shopping or shopping by other means of media |
| 229 | communication, including, but not limited to, direct mail |
| 230 | advertising, unsolicited distribution of catalogs, television, |
| 231 | radio, or other electronic media, telephone, magazine, or |
| 232 | newspaper advertising, so long as such person is in this state |
| 233 | at the time of the order. |
| 234 | (o) Any person offering his or her own personal property |
| 235 | for sale, purchase, consignment, or trade via an Internet |
| 236 | website, or a person or entity offering the personal property of |
| 237 | others for sale, purchase, consignment, or trade via an Internet |
| 238 | website, when that person or entity does not have, and is not |
| 239 | required to have, a local occupational or business license for |
| 240 | this purpose. |
| 241 | (p) A business whose primary business is the sale, rental, |
| 242 | or trade of motion picture videos or video games, if the |
| 243 | business: |
| 244 | 1. Requires the sellers of secondhand goods to have a |
| 245 | current account with the business; |
| 246 | 2. Has on file in a readily accessible format the name, |
| 247 | current residential address, home and work telephone numbers, |
| 248 | government-issued identification number, place of employment, |
| 249 | date of birth, gender, and right thumbprint of each seller of |
| 250 | secondhand goods; |
| 251 | 3. Purchases secondhand goods from the property owner or |
| 252 | his or her representative at the place of business pursuant to |
| 253 | an agreement in writing and signed by the property owner which |
| 254 | describes the property purchased, states the date and time of |
| 255 | the purchase, and states that the seller is the lawful owner of |
| 256 | the property; |
| 257 | 4. Retains such purchase agreements for not less than 1 |
| 258 | year; and |
| 259 | 5. Pays for the purchased property in the form of a store |
| 260 | credit that is issued to the seller and is redeemable solely by |
| 261 | the seller or another authorized user of the seller's account |
| 262 | with that business. |
| 263 | (q)(o) A motor vehicle dealer as defined in s. 320.27. |
| 264 | (3) This part does not apply to secondary metals recyclers |
| 265 | regulated under part II, except for s. 538.11, which applies to |
| 266 | both secondhand dealers and secondary metals recyclers. |
| 267 | Section 2. Section 538.04, Florida Statutes, is amended to |
| 268 | read: |
| 269 | 538.04 Recordkeeping requirements; penalties.-- |
| 270 | (1) Secondhand dealers shall complete a secondhand dealers |
| 271 | transaction form at the time of the actual transaction. A |
| 272 | secondhand dealer shall maintain a copy of a completed |
| 273 | transaction form on the registered premises for at least 1 year |
| 274 | after the date of the transaction. However, the secondhand |
| 275 | dealer shall maintain a copy of the transaction form for a |
| 276 | period of no less than 3 years. Secondhand dealers shall |
| 277 | maintain records of all transactions of secondhand goods on the |
| 278 | premises. Unless other arrangements have been agreed upon by the |
| 279 | secondhand dealer and the appropriate law enforcement agency, |
| 280 | the secondhand dealer shall, within 24 hours after of the |
| 281 | acquisition of any secondhand goods, by purchase or pledge as |
| 282 | security for a loan, a secondhand dealer shall deliver to the |
| 283 | police department of the municipality where the goods were |
| 284 | acquired purchased or, if the goods were acquired purchased |
| 285 | outside of a municipality, to the sheriff's department of the |
| 286 | county where the goods were acquired purchased, a record of the |
| 287 | transaction on a form approved by the Department of Law |
| 288 | Enforcement. Such record shall contain: |
| 289 | (a) The time, date, and place of the transaction. |
| 290 | (b) A complete and accurate description of the goods |
| 291 | acquired, including the following information, if applicable: |
| 292 | any serial numbers, manufacturer's numbers, or other identifying |
| 293 | marks or characteristics. |
| 294 | 1. Brand name. |
| 295 | 2. Model number. |
| 296 | 3. Manufacturer's serial number. |
| 297 | 4. Size. |
| 298 | 5. Color, as apparent to the untrained eye. |
| 299 | 6. Precious metal type, weight, and content, if known. |
| 300 | 7. Gemstone description, including the number of stones, |
| 301 | if applicable. |
| 302 | 8. In the case of firearms, the type of action, caliber or |
| 303 | gauge, number of barrels, barrel length, and finish. |
| 304 | 9. Any other unique identifying marks, numbers, or |
| 305 | letters. |
| 306 | (c) A description of the person from whom the goods were |
| 307 | acquired, including: |
| 308 | 1. Full name, current residential address, workplace, and |
| 309 | home and work phone numbers. |
| 310 | 2. Height, weight, date of birth, race, gender, hair |
| 311 | color, eye color, and any other identifying marks. |
| 312 | 3. The right thumbprint, free of smudges and smears, of |
| 313 | the person from whom the goods were acquired. |
| 314 | (d) Any other information required by the form approved by |
| 315 | the Department of Law Enforcement. |
| 316 | (2) The secondhand dealer shall require verification of |
| 317 | the identification by the exhibition of a government-issued |
| 318 | photographic identification card such as a driver's license or |
| 319 | military identification card. The record shall contain the type |
| 320 | of identification exhibited, the issuing agency, and the number |
| 321 | thereon. |
| 322 | (3) The seller shall sign a statement verifying that the |
| 323 | seller is the rightful owner of the goods or is entitled to |
| 324 | sell, consign, or trade pledge the goods. |
| 325 | (4) Any person who knowingly gives false verification of |
| 326 | ownership or who gives a false or altered identification, and |
| 327 | who receives money from a secondhand dealer for goods sold, |
| 328 | consigned, or traded pledged commits: |
| 329 | (a) If the value of the money received is less than $300, |
| 330 | a felony misdemeanor of the third first degree, punishable as |
| 331 | provided in s. 775.082, or s. 775.083, or s. 775.084. |
| 332 | (b) If the value of the money received is $300 or more, a |
| 333 | felony of the second third degree, punishable as provided in s. |
| 334 | 775.082, s. 775.083, or s. 775.084. |
| 335 | (5) Secondhand dealers are exempt from the provisions of |
| 336 | this section for all transactions involving secondhand sports |
| 337 | equipment except secondhand sports equipment that is permanently |
| 338 | labeled with a serial number. |
| 339 | (6) If the appropriate law enforcement agency supplies a |
| 340 | secondhand dealer with appropriate software and the secondhand |
| 341 | dealer has computer capability, secondhand dealer transactions |
| 342 | shall be electronically transferred. If a secondhand dealer does |
| 343 | not have computer capability, the appropriate law enforcement |
| 344 | agency may provide the secondhand dealer with a computer and all |
| 345 | necessary equipment for the purpose of electronically |
| 346 | transferring secondhand dealer transactions. The appropriate law |
| 347 | enforcement agency shall retain ownership of the computer, |
| 348 | unless otherwise agreed upon. The secondhand dealer shall |
| 349 | maintain the computer in good working order, ordinary wear and |
| 350 | tear excepted. In the event the secondhand dealer transfers |
| 351 | secondhand dealer transactions electronically, the secondhand |
| 352 | dealer is not required to also deliver to the appropriate law |
| 353 | enforcement agency the original or copies of the secondhand |
| 354 | transaction forms. For the purpose of a criminal investigation, |
| 355 | the appropriate law enforcement agency may request that the |
| 356 | secondhand dealer produce an original of a transaction form that |
| 357 | has been electronically transferred. The secondhand dealer shall |
| 358 | deliver this form to the appropriate law enforcement agency |
| 359 | within 24 hours after the request. |
| 360 | (7) If the original transaction form is lost or destroyed |
| 361 | by the appropriate law enforcement agency, a copy may be used by |
| 362 | the secondhand dealer as evidence in court. When an electronic |
| 363 | image of a customer's identification is accepted for a |
| 364 | transaction, the secondhand dealer must maintain the electronic |
| 365 | image in order to meet the recordkeeping requirements applicable |
| 366 | to the original transaction form. If a criminal investigation |
| 367 | occurs, the secondhand dealer shall, upon request, provide a |
| 368 | clear and legible copy of the image to the appropriate law |
| 369 | enforcement agency. |
| 370 | Section 3. Section 538.05, Florida Statutes, is amended to |
| 371 | read: |
| 372 | 538.05 Inspection of records and premises of secondhand |
| 373 | dealers.-- |
| 374 | (1) The entire registered premises and required records of |
| 375 | each secondhand dealer are subject to inspection during regular |
| 376 | business hours by any law enforcement officer with jurisdiction |
| 377 | the police department if the premises are located within a |
| 378 | municipality or, if located outside a municipality, by the |
| 379 | sheriff's department of the county in which the premises are |
| 380 | located, and by any state law enforcement officer who has |
| 381 | jurisdiction over the dealer. |
| 382 | (2) The inspection authorized by subsection (1) shall |
| 383 | consist of an examination on the registered premises of the |
| 384 | inventory and required records to determine whether the records |
| 385 | and inventory are being maintained on the registered premises as |
| 386 | required by s. 538.04 and whether the holding period required by |
| 387 | s. 538.06 is being complied with. |
| 388 | Section 4. Section 538.06, Florida Statutes, is amended to |
| 389 | read: |
| 390 | 538.06 Holding period.-- |
| 391 | (1) A secondhand dealer shall not sell, barter, exchange, |
| 392 | alter, adulterate, use, or in any way dispose of any secondhand |
| 393 | goods within 15 calendar days after of the date of acquisition |
| 394 | of the goods. Such holding periods are not applicable when the |
| 395 | person known by the secondhand dealer to be the person from whom |
| 396 | the goods were acquired desires to redeem, repurchase, or |
| 397 | recover the goods, provided the dealer can produce the record of |
| 398 | the original transaction with verification that the customer is |
| 399 | the person from whom the goods were originally acquired. |
| 400 | (2) A secondhand dealer must maintain actual physical |
| 401 | possession of all secondhand goods throughout a transaction. It |
| 402 | is unlawful for a secondhand dealer to accept title or any other |
| 403 | form of security in secondhand goods in lieu of actual physical |
| 404 | possession. A secondhand dealer who accepts title or any other |
| 405 | form of security in secondhand goods in lieu of actual physical |
| 406 | possession commits a misdemeanor of the first degree, punishable |
| 407 | as provided in s. 775.082 or s. 775.083. |
| 408 | (3) Upon probable cause that goods held by a secondhand |
| 409 | dealer are stolen, a law enforcement officer with jurisdiction |
| 410 | may place a 90-day written hold order on the goods extend the |
| 411 | holding period to a maximum of 60 days. However, the hold |
| 412 | holding period may be extended beyond 90 60 days by a court of |
| 413 | competent jurisdiction upon a finding of probable cause that the |
| 414 | property is stolen and further holding is necessary for the |
| 415 | purposes of trial or to safeguard such property. The dealer |
| 416 | shall assume all responsibility, civil or criminal, relative to |
| 417 | the property or evidence in question, including responsibility |
| 418 | for the actions of any employee with respect thereto. |
| 419 | (4) While a hold order is in effect, the secondhand dealer |
| 420 | must, upon request, release the property subject to the hold |
| 421 | order to the custody of a law enforcement officer with |
| 422 | jurisdiction for use in a criminal investigation. The release of |
| 423 | the property to the custody of the law enforcement officer is |
| 424 | not considered a waiver or release of the secondhand dealer's |
| 425 | rights or interest in the property. Upon completion of the |
| 426 | criminal proceeding, the property must be returned to the |
| 427 | secondhand dealer unless the court orders other disposition. |
| 428 | When such other disposition is ordered, the court shall |
| 429 | additionally order the person from whom the secondhand dealer |
| 430 | acquired the property to pay restitution to the secondhand |
| 431 | dealer in the amount that the secondhand dealer paid for the |
| 432 | property together with reasonable attorney's fees and costs. |
| 433 | (5)(4) All dealers in secondhand property regulated by |
| 434 | this chapter shall maintain transaction records for 3 5 years. |
| 435 | Section 5. Section 538.07, Florida Statutes, is amended to |
| 436 | read: |
| 437 | 538.07 Penalty for violation of chapter.-- |
| 438 | (1) Except as where otherwise provided herein, a person |
| 439 | who knowingly violates any provision of this chapter commits a |
| 440 | misdemeanor of the first degree, punishable as provided in s. |
| 441 | 775.082 and by a fine not to exceed $10,000. |
| 442 | (2) When the lawful owner recovers stolen property from a |
| 443 | secondhand dealer and the person who sold or pledged the stolen |
| 444 | property to the secondhand dealer is convicted of theft, a |
| 445 | violation of this section, or dealing in stolen property, the |
| 446 | court shall order the defendant to make restitution to either |
| 447 | the secondhand dealer or the lawful owner, as applicable, |
| 448 | pursuant to s. 775.089. |
| 449 | Section 6. Section 538.09, Florida Statutes, is amended to |
| 450 | read: |
| 451 | 538.09 Registration.-- |
| 452 | (1) A secondhand dealer shall not engage in the business |
| 453 | of purchasing, consigning, or trading pawning secondhand goods |
| 454 | from any location without registering with the Department of |
| 455 | Revenue. A fee equal to the federal and state costs for |
| 456 | processing required fingerprints must be submitted to the |
| 457 | department with each application for registration. One |
| 458 | application is required for each dealer. If a secondhand dealer |
| 459 | is the owner of more than one secondhand store location, the |
| 460 | application must list each location, and the department shall |
| 461 | issue a duplicate registration for each location. For purposes |
| 462 | of subsections (4) and (5) of this section, these duplicate |
| 463 | registrations shall be deemed individual registrations. A dealer |
| 464 | shall pay a fee of $6 per location at the time of registration |
| 465 | and an annual renewal fee of $6 per location on October 1 of |
| 466 | each year. All fees collected, less costs of administration, |
| 467 | shall be transferred into a trust fund to be established and |
| 468 | entitled the Secondhand Dealer and Secondary Metals Recycler |
| 469 | Clearing Trust Fund. The Department of Revenue shall forward the |
| 470 | full set of fingerprints to the Department of Law Enforcement |
| 471 | for state and federal processing, provided the federal service |
| 472 | is available, to be processed for any criminal justice |
| 473 | information as defined in s. 943.045. The cost of processing |
| 474 | such fingerprints shall be payable to the Department of Law |
| 475 | Enforcement by the Department of Revenue. The department may |
| 476 | issue a temporary registration to each location pending |
| 477 | completion of the background check by state and federal law |
| 478 | enforcement agencies, but shall revoke such temporary |
| 479 | registration if the completed background check reveals a |
| 480 | prohibited criminal background. An applicant for a secondhand |
| 481 | dealer registration must be a natural person who has reached the |
| 482 | age of 18 years. |
| 483 | (a) If the applicant is a partnership, all the partners |
| 484 | must apply. |
| 485 | (b) If the applicant is a joint venture, association, or |
| 486 | other noncorporate entity, all members of such joint venture, |
| 487 | association, or other noncorporate entity must make application |
| 488 | for registration as natural persons. |
| 489 | (c) If the applicant is a corporation, the registration |
| 490 | must include the name and address of such corporation's |
| 491 | registered agent for service of process in the state and a |
| 492 | certified copy of statement from the Secretary of State that the |
| 493 | corporation is duly organized in the state or, if the |
| 494 | corporation is organized in a state other than Florida, a |
| 495 | certified copy of statement from the Secretary of State that the |
| 496 | corporation is duly qualified to do business in this state. If |
| 497 | the dealer has more than one location, the application must list |
| 498 | each location owned by the same legal entity and the department |
| 499 | shall issue a duplicate registration for each location. |
| 500 | (2) The secondhand dealer shall furnish with her or his |
| 501 | registration a complete set of her or his fingerprints, |
| 502 | certified by an authorized law enforcement officer, and a recent |
| 503 | fullface photographic identification card of herself or himself. |
| 504 | The Department of Law Enforcement shall report its findings to |
| 505 | the Department of Revenue within 30 days after the date |
| 506 | fingerprint cards are submitted for criminal justice |
| 507 | information. |
| 508 | (3) The secondhand dealer's registration shall be |
| 509 | conspicuously displayed at her or his registered location |
| 510 | principal place of business. A secondhand dealer must hold |
| 511 | secondhand goods at the registered location until 15 days after |
| 512 | the secondhand transaction or until any extension of the holding |
| 513 | period has expired, whichever is later, and must retain records |
| 514 | of each transaction which is not specifically exempted by this |
| 515 | chapter. A secondhand dealer shall not dispose of property at |
| 516 | any location until the holding period has expired unless the |
| 517 | transaction is specifically exempted by this chapter. |
| 518 | (4) The department may impose a civil fine of up to |
| 519 | $10,000 for each violation of this section, which fine shall be |
| 520 | transferred into the General Revenue Fund. If the fine is not |
| 521 | paid within 60 days, the department may bring a civil action |
| 522 | under s. 120.69 to recover the fine. |
| 523 | (5) In addition to the fine provided in subsection (4), |
| 524 | registration under this section may be denied or any |
| 525 | registration granted may be revoked, restricted, or suspended by |
| 526 | the department if the department determines that the applicant |
| 527 | or registrant: |
| 528 | (a) Has violated any provision of this chapter or any rule |
| 529 | or order made pursuant to this chapter; |
| 530 | (b) Has made a material false statement in the application |
| 531 | for registration; |
| 532 | (c) Has been guilty of a fraudulent act in connection with |
| 533 | any purchase or sale or has been or is engaged in or is about to |
| 534 | engage in any practice, purchase, or sale which is fraudulent or |
| 535 | in violation of the law; |
| 536 | (d) Has made a misrepresentation or false statement to, or |
| 537 | concealed any essential or material fact from, any person in |
| 538 | making any purchase or sale; |
| 539 | (e) Is making purchases or sales through any business |
| 540 | associate not registered in compliance with the provisions of |
| 541 | this chapter; |
| 542 | (f) Has, within the preceding 10-year 5-year period for |
| 543 | new registrants who apply for registration on or after October |
| 544 | 1, 2005, been convicted of, or has entered a plea of guilty or |
| 545 | nolo contendere to, or had adjudication withheld for, a crime |
| 546 | against the laws of this state or any other state or of the |
| 547 | United States which relates to registration as a secondhand |
| 548 | dealer or which involves theft, larceny, dealing in stolen |
| 549 | property, receiving stolen property, burglary, embezzlement, |
| 550 | obtaining property by false pretenses, possession of altered |
| 551 | property, any felony drug offense, any violation of s. 812.015, |
| 552 | or any fraudulent or dishonest dealing; |
| 553 | (g) Has had a final judgment entered against her or him in |
| 554 | a civil action upon grounds of fraud, embezzlement, |
| 555 | misrepresentation, or deceit; or |
| 556 | (h) Has failed to pay any sales tax owed to the Department |
| 557 | of Revenue. |
| 558 |
|
| 559 |
|
| 560 | In the event the department determines to deny an application or |
| 561 | revoke a registration, it shall enter a final order with its |
| 562 | findings on the register of secondhand dealers and their |
| 563 | business associates, if any; and denial, suspension, or |
| 564 | revocation of the registration of a secondhand dealer shall also |
| 565 | deny, suspend, or revoke the registration of such secondhand |
| 566 | dealer's business associates. |
| 567 | (6) Upon the request of a law enforcement official, the |
| 568 | Department of Revenue shall release to the official the name and |
| 569 | address of any secondhand dealer registered to do business |
| 570 | within the official's jurisdiction. |
| 571 | Section 7. Section 538.16, Florida Statutes, is repealed. |
| 572 | Section 8. Subsection (4) of section 516.02, Florida |
| 573 | Statutes, is amended to read: |
| 574 | 516.02 Loans; lines of credit; rate of interest; |
| 575 | license.-- |
| 576 | (4) This chapter does not apply to any person who does |
| 577 | business under, and as permitted by, any law of this state or of |
| 578 | the United States relating to banks, savings banks, trust |
| 579 | companies, building and loan associations, credit unions, or |
| 580 | industrial loan and investment companies. This chapter also does |
| 581 | not apply to title loans as defined in s. 538.03(1)(i) or pawns |
| 582 | as defined in s. 538.03(1)(d). A pawnbroker may not be licensed |
| 583 | to transact business under this chapter. |
| 584 | Section 9. For the purpose of incorporating the amendment |
| 585 | made by this act to section 538.03, Florida Statutes, in a |
| 586 | reference thereto, paragraph (f) of subsection (3) of section |
| 587 | 790.335, Florida Statutes, is reenacted to read: |
| 588 | 790.335 Prohibition of registration of firearms.-- |
| 589 | (3) EXCEPTIONS.--The provisions of this section shall not |
| 590 | apply to: |
| 591 | (f) Firearm records, including paper pawn transaction |
| 592 | forms and contracts on firearm transactions, required by |
| 593 | chapters 538 and 539. |
| 594 | 1. Electronic firearm records held pursuant to chapter 538 |
| 595 | may only be kept by a secondhand dealer for 30 days after the |
| 596 | date of the purchase of the firearm by the secondhand dealer. |
| 597 | 2. Electronic firearm records held pursuant to chapter 539 |
| 598 | may only be kept by a pawnbroker for 30 days after the |
| 599 | expiration of the loan that is secured by a firearm or 30 days |
| 600 | after the date of purchase of a firearm, whichever is |
| 601 | applicable. |
| 602 | 3. Except as required by federal law, any firearm records |
| 603 | kept pursuant to chapter 538 or chapter 539 shall not, at any |
| 604 | time, be electronically transferred to any public or private |
| 605 | entity, agency, business, or enterprise, nor shall any such |
| 606 | records be copied or transferred for purposes of accumulation of |
| 607 | such records into lists, registries, or databases. |
| 608 | 4. Notwithstanding subparagraph 3., secondhand dealers and |
| 609 | pawnbrokers may electronically submit firearm transaction |
| 610 | records to the appropriate law enforcement agencies as required |
| 611 | by chapters 538 and 539; however, the law enforcement agencies |
| 612 | may not electronically submit such records to any other person |
| 613 | or entity and must destroy such records within 60 days after |
| 614 | receipt of such records. |
| 615 | 5. Notwithstanding subparagraph 3., secondhand dealers and |
| 616 | pawnbrokers may electronically submit limited firearms records |
| 617 | consisting solely of the manufacturer, model, serial number, and |
| 618 | caliber of pawned or purchased firearms to a third-party private |
| 619 | provider that is exclusively incorporated, exclusively owned, |
| 620 | and exclusively operated in the United States and that restricts |
| 621 | access to such information to only appropriate law enforcement |
| 622 | agencies for legitimate law enforcement purposes. Such records |
| 623 | must be destroyed within 30 days by the third-party provider. As |
| 624 | a condition of receipt of such records, the third-party provider |
| 625 | must agree in writing to comply with the requirements of this |
| 626 | section. Any pawnbroker or secondhand dealer who contracts with |
| 627 | a third-party provider other than as provided in this act or |
| 628 | electronically transmits any records of firearms transactions to |
| 629 | any third-party provider other than the records specifically |
| 630 | allowed by this paragraph commits a felony of the second degree, |
| 631 | punishable as provided in s. 775.082 or s. 775.083. |
| 632 | Section 10. This act shall take effect October 1, 2006. |