Senate Bill sb0694er

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  1                                 

  2         An act relating to secondhand dealers; amending

  3         s. 538.03, F.S.; revising definitions; revising

  4         the applicability of ch. 538, F.S.; exempting

  5         persons or entities offering secondhand goods

  6         or personal property for sale, purchase,

  7         consignment, or trade via the Internet from the

  8         provisions of ch. 538, F.S., under certain

  9         circumstances; exempting certain businesses

10         that sell, rent, or trade motion picture videos

11         or video games from ch. 538, F.S.; amending s.

12         538.04, F.S.; revising recordkeeping

13         requirements for secondhand dealers; providing

14         penalties for knowingly giving false

15         verification of ownership or a false or altered

16         identification, and for receiving money from a

17         secondhand dealer for goods sold, consigned, or

18         traded if the value of the money received is

19         less than $300, and if the value of the money

20         received is $300 or more; providing for the

21         electronic transfer of secondhand dealer

22         transactions under specified circumstances;

23         authorizing appropriate law enforcement

24         agencies to provide a secondhand dealer with a

25         computer and other equipment necessary to

26         electronically transfer secondhand dealer

27         transactions; providing procedures with respect

28         to the electronic transfer of secondhand dealer

29         transactions; amending s. 538.05, F.S.;

30         revising provisions relating to the inspection

31         of records and premises of secondhand dealers;


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 1         amending s. 538.06, F.S.; revising provisions

 2         with respect to the holding of goods upon

 3         probable cause that the goods are stolen;

 4         providing for payment of restitution,

 5         attorney's fees, and costs to a secondhand

 6         dealer under specified circumstances;

 7         increasing the time limit for maintenance of

 8         transaction records by dealers in secondhand

 9         property; amending s. 538.07, F.S.; revising

10         provisions relating to restitution for stolen

11         property recovered from a secondhand dealer;

12         amending s. 538.09, F.S.; revising provisions

13         with respect to registration as a secondhand

14         dealer; revising conditions under which

15         registration may be denied, revoked,

16         restricted, or suspended by the Department of

17         Revenue; repealing s. 538.16, F.S., relating to

18         disposal of property by secondhand dealers;

19         amending s. 516.02, F.S.; removing

20         cross-references; reenacting s. 790.335(3)(f),

21         F.S., which provides a second-degree-felony

22         penalty for any secondhand dealer who contracts

23         with a specified third-party provider or

24         electronically transmits certain records of

25         firearms transactions to any third-party

26         provider; providing an effective date.

27  

28  Be It Enacted by the Legislature of the State of Florida:

29  

30         Section 1.  Section 538.03, Florida Statutes, is

31  amended to read:


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 1         538.03  Definitions; applicability.--

 2         (1)  As used in this part, the term:

 3         (a)  "Secondhand dealer" means any person, corporation,

 4  or other business organization or entity which is not a

 5  secondary metals recycler subject to part II and which is

 6  engaged in the business of purchasing, consigning, or trading

 7  pawning secondhand goods. However, secondhand dealers are not

 8  limited to dealing only in items defined as secondhand goods

 9  in paragraph (g). Except as provided in subsection (2), the

10  term means pawnbrokers, jewelers, precious metals dealers,

11  garage sale operators, secondhand stores, and consignment

12  shops.

13         (b)  "Precious metals dealer" means a secondhand dealer

14  who normally or regularly engages in the business of buying

15  used precious metals for resale. The term does not include

16  those persons involved in the bulk sale of precious metals

17  from one secondhand or precious metals dealer to another.

18         (c)  "Pawnbroker" means any person, corporation, or

19  other business organization or entity which is regularly

20  engaged in the business of making pawns but does not include a

21  financial institution as defined in s. 655.005 or any person

22  who regularly loans money or any other thing of value on

23  stocks, bonds, or other securities.

24         (d)  "Pawn" means either of the following transactions:

25         1.  Loan of money.--A written or oral bailment of

26  personal property as security for an engagement or debt,

27  redeemable on certain terms and with the implied power of sale

28  on default.

29         2.  Buy-sell agreement.--An agreement whereby a

30  purchaser agrees to hold property for a specified period of

31  


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 1  time to allow the seller the exclusive right to repurchase the

 2  property. A buy-sell agreement is not a loan of money.

 3         (c)(e)  "Secondhand store" means the place or premises

 4  at which a secondhand dealer is registered to conduct business

 5  as a secondhand dealer, or conducts business, including pawn

 6  shops.

 7         (d)(f)  "Consignment shop" means a shop engaging in the

 8  business of accepting for sale, on consignment, secondhand

 9  goods which, having once been used or transferred from the

10  manufacturer to the dealer, are then received into the

11  possession of a third party.

12         (e)  "Acquire" means to obtain by purchase,

13  consignment, or trade.

14         (f)(g)  "Secondhand goods" means personal property

15  previously owned or used, which is not regulated metals

16  property regulated under part II and which is purchased,

17  consigned, or traded pawned as used property. Such secondhand

18  goods do not include office furniture, pianos, books,

19  clothing, organs, coins, motor vehicles, costume jewelry, and

20  secondhand sports equipment that is not permanently labeled

21  with a serial number. For purposes of this paragraph,

22  "secondhand sports equipment" does not include golf clubs.

23  shall be limited to watches; diamonds, gems, and other

24  precious stones; fishing rods, reels, and tackle; audio and

25  video electronic equipment, including television sets, compact

26  disc players, radios, amplifiers, receivers, turntables, tape

27  recorders; video tape recorders; speakers and citizens' band

28  radios; computer equipment; radar detectors; depth finders;

29  trolling motors; outboard motors; sterling silver flatware and

30  serving pieces; photographic equipment, including cameras,

31  video and film cameras, lenses, electronic flashes, tripods,


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 1  and developing equipment; microwave ovens; animal fur coats;

 2  marine equipment; video games and cartridges; power lawn and

 3  landscape equipment; office equipment such as copiers, fax

 4  machines, and postage machines but excluding furniture; sports

 5  equipment; golf clubs; weapons, including knives, swords, and

 6  air guns; telephones, including cellular and portable;

 7  firearms; tools; calculators; musical instruments, excluding

 8  pianos and organs; lawnmowers; bicycles; typewriters; motor

 9  vehicles; gold, silver, platinum, and other precious metals

10  excluding coins; and jewelry, excluding costume jewelry.

11         (g)(h)  "Transaction" means any purchase, consignment,

12  or trade pawn of secondhand goods by a secondhand dealer.

13         (h)(i)  "Precious metals" means any item containing any

14  gold, silver, or platinum, or any combination thereof,

15  excluding:

16         1.  any chemical or any automotive, photographic,

17  electrical, medical, or dental materials or electronic parts.

18         2.  Any coin with an intrinsic value less than its

19  numismatic value.

20         3.  Any gold bullion coin.

21         4.  Any gold, silver, or platinum bullion that has been

22  assayed and is properly marked as to its weight and fineness.

23         5.  Any coin which is mounted in a jewelry setting.

24         (i)(j)  "Department" means the Department of Revenue.

25         (k)  "Pledge" means pawn or buy-sell agreement.

26         (2)  This chapter does not apply to:

27         (a)  Any secondhand goods transaction involving an

28  organization or entity registered with the state as a

29  nonprofit, religious, or charitable organization or any

30  school-sponsored association or organization other than a

31  


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 1  secondary metals recycler subject to the provisions of part

 2  II.

 3         (b)  A law enforcement officer acting in an official

 4  capacity.

 5         (c)  A trustee in bankruptcy, executor, administrator,

 6  or receiver who has presented proof of such status to the

 7  secondhand dealer.

 8         (d)  Any public official acting under judicial process

 9  or authority who has presented proof of such status to the

10  secondhand dealer.

11         (e)  A sale on the execution, or by virtue of any

12  process issued by a court, if proof thereof has been presented

13  to the secondhand dealer.

14         (f)  Any garage sale operator who holds garage sales

15  less than 10 weekends per year.

16         (g)  Any person at antique, coin, or collectible shows

17  or sales.

18         (h)  Any person who sells household personal property

19  as an agent for the property owner or their representative

20  pursuant to a written agreement at that person's residence.

21         (i)  The purchase, consignment, or trade pawn of

22  secondhand goods from one secondhand dealer to another

23  secondhand dealer when the selling secondhand dealer has

24  complied with the requirements of this chapter.

25         (j)  Any person accepting a secondhand good as a

26  trade-in for a similar item of greater value.

27         (k)  Any person purchasing, consigning, or trading

28  pawning secondhand goods at a flea market regardless of

29  whether at a temporary or permanent business location at the

30  flea market.

31         (l)  Any auction business as defined in s. 468.382(1).


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 1         (m)  Any business that is registered with the

 2  Department of Revenue for sales tax purposes as an antique

 3  dealer pursuant to chapter 212 and that purchases secondhand

 4  goods from the property owner or her or his representative at

 5  the property owner's residence pursuant to a written agreement

 6  that states the name, address, and telephone number of the

 7  property owner and the type of property purchased.

 8         (n)  A business that contracts with other persons or

 9  entities to offer its secondhand goods for sale, purchase,

10  consignment, or trade via an Internet website, and that

11  maintains a shop, store, or other business premises for this

12  purpose, if all of the following apply:

13         1.  The secondhand goods must be available on the

14  website for viewing by the public at no charge;

15         2.  The records of the sale, purchase, consignment, or

16  trade must be maintained for at least 2 years;

17         3.  The records of the sale, purchase, consignment, or

18  trade, and the description of the secondhand goods as listed

19  on the website, must contain the serial number of each item,

20  if any;

21         4.  The secondhand goods listed on the website must be

22  searchable based upon the state or zip code;

23         5.  The business must provide the appropriate law

24  enforcement agency with the name or names under which it

25  conducts business on the website;

26         6.  The business must allow the appropriate law

27  enforcement agency to inspect its business premises at any

28  time during normal business hours;

29         7.  Any payment by the business resulting from such a

30  sale, purchase, consignment, or trade must be made to the

31  person or entity with whom the business contracted to offer


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 1  the goods and must be made by check or via a money transmitter

 2  licensed under part II of chapter 560; and

 3         8.a.  At least 48 hours after the estimated time of

 4  contracting to offer the secondhand goods, the business must

 5  verify that any item having a serial number is not stolen

 6  property by entering the serial number of the item into the

 7  Department of Law Enforcement's stolen article database

 8  located at the Florida Crime Information Center's public

 9  access system website. The business shall record the date and

10  time of such verification on the contract covering the goods.

11  If such verification reveals that an item is stolen property,

12  the business shall immediately remove the item from any

13  website on which it is being offered and notify the

14  appropriate law enforcement agency; or

15         b.  The business must provide the appropriate law

16  enforcement agency with an electronic copy of the name,

17  address, phone number, driver's license number, and issuing

18  state of the person with whom the business contracted to offer

19  the goods, as well as an accurate description of the goods,

20  including make, model, serial number, and any other unique

21  identifying marks, numbers, names, or letters that may be on

22  an item, in a format agreed upon by the business and the

23  appropriate law enforcement agency. This information must be

24  provided to the appropriate law enforcement agency within 24

25  hours after entering into the contract unless other

26  arrangements are made between the business and the law

27  enforcement agency. Any person purchasing, consigning, or

28  pawning secondhand goods ordered by mail, computer-assisted

29  shopping, media-assisted, media-facilitated, or

30  media-solicited shopping or shopping by other means of media

31  communication, including, but not limited to, direct mail


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 1  advertising, unsolicited distribution of catalogs, television,

 2  radio, or other electronic media, telephone, magazine, or

 3  newspaper advertising, so long as such person is in this state

 4  at the time of the order.

 5         (o)  Any person offering his or her own personal

 6  property for sale, purchase, consignment, or trade via an

 7  Internet website, or a person or entity offering the personal

 8  property of others for sale, purchase, consignment, or trade

 9  via an Internet website, when that person or entity does not

10  have, and is not required to have, a local occupational or

11  business license for this purpose.

12         (p)  A business whose primary business is the sale,

13  rental, or trade of motion picture videos or video games, if

14  the business:

15         1.  Requires the sellers of secondhand goods to have a

16  current account with the business;

17         2.  Has on file in a readily accessible format the

18  name, current residential address, home and work telephone

19  numbers, government-issued identification number, place of

20  employment, date of birth, gender, and right thumbprint of

21  each seller of secondhand goods;

22         3.  Purchases secondhand goods from the property owner

23  or his or her representative at the place of business pursuant

24  to an agreement in writing and signed by the property owner

25  which describes the property purchased, states the date and

26  time of the purchase, and states that the seller is the lawful

27  owner of the property;

28         4.  Retains such purchase agreements for not less than

29  1 year; and

30         5.  Pays for the purchased property in the form of a

31  store credit that is issued to the seller and is redeemable


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 1  solely by the seller or another authorized user of the

 2  seller's account with that business.

 3         (q)(o)  A motor vehicle dealer as defined in s. 320.27.

 4         (3)  This part does not apply to secondary metals

 5  recyclers regulated under part II, except for s. 538.11, which

 6  applies to both secondhand dealers and secondary metals

 7  recyclers.

 8         Section 2.  Section 538.04, Florida Statutes, is

 9  amended to read:

10         538.04  Recordkeeping requirements; penalties.--

11         (1)  Secondhand dealers shall complete a secondhand

12  dealers transaction form at the time of the actual

13  transaction. A secondhand dealer shall maintain a copy of a

14  completed transaction form on the registered premises for at

15  least 1 year after the date of the transaction. However, the

16  secondhand dealer shall maintain a copy of the transaction

17  form for not less than 3 years. Unless other arrangements have

18  been agreed upon by the secondhand dealer and the appropriate

19  law enforcement agency, the secondhand dealer shall,

20  Secondhand dealers shall maintain records of all transactions

21  of secondhand goods on the premises. within 24 hours after of

22  the acquisition of any secondhand goods, by purchase or pledge

23  as security for a loan, a secondhand dealer shall deliver to

24  the police department of the municipality where the goods were

25  acquired purchased or, if the goods were acquired purchased

26  outside of a municipality, to the sheriff's department of the

27  county where the goods were acquired purchased, a record of

28  the transaction on a form approved by the Department of Law

29  Enforcement. Such record shall contain:

30         (a)  The time, date, and place of the transaction.

31  


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 1         (b)  A complete and accurate description of the goods

 2  acquired, including the following information, if applicable:

 3  any serial numbers, manufacturer's numbers, or other

 4  identifying marks or characteristics.

 5         1.  Brand name.

 6         2.  Model number.

 7         3.  Manufacturer's serial number.

 8         4.  Size.

 9         5.  Color, as apparent to the untrained eye.

10         6.  Precious metal type, weight, and content if known.

11         7.  Gemstone description, including the number of

12  stones, if applicable.

13         8.  In the case of firearms, the type of action,

14  caliber or gauge, number of barrels, barrel length, and

15  finish.

16         9.  Any other unique identifying marks, numbers, or

17  letters.

18         (c)  A description of the person from whom the goods

19  were acquired, including:

20         1.  Full name, current residential address, workplace,

21  and home and work phone numbers.

22         2.  Height, weight, date of birth, race, gender, hair

23  color, eye color, and any other identifying marks.

24         3.  The right thumbprint, free of smudges and smears,

25  of the person from whom the goods were acquired.

26         (d)  Any other information required by the form

27  approved by the Department of Law Enforcement.

28         (2)  The secondhand dealer shall require verification

29  of the identification by the exhibition of a government-issued

30  photographic identification card such as a driver's license or

31  military identification card. The record shall contain the


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 1  type of identification exhibited, the issuing agency, and the

 2  number thereon.

 3         (3)  The seller shall sign a statement verifying that

 4  the seller is the rightful owner of the goods or is entitled

 5  to sell, consign, or trade pledge the goods.

 6         (4)  Any person who knowingly gives false verification

 7  of ownership or who gives a false or altered identification,

 8  and who receives money from a secondhand dealer for goods

 9  sold, consigned, or traded pledged commits:

10         (a)  If the value of the money received is less than

11  $300, a felony misdemeanor of the third first degree,

12  punishable as provided in s. 775.082, or s. 775.083, or s.

13  775.084.

14         (b)  If the value of the money received is $300 or

15  more, a felony of the second third degree, punishable as

16  provided in s. 775.082, s. 775.083, or s. 775.084.

17         (5)  Secondhand dealers are exempt from the provisions

18  of this section for all transactions involving secondhand

19  sports equipment except secondhand sports equipment that is

20  permanently labeled with a serial number.

21         (6)  If the appropriate law enforcement agency supplies

22  a secondhand dealer with appropriate software and the

23  secondhand dealer has computer capability, secondhand dealer

24  transactions shall be electronically transferred. If a

25  secondhand dealer does not have computer capability, the

26  appropriate law enforcement agency may provide the secondhand

27  dealer with a computer and all necessary equipment for the

28  purpose of electronically transferring secondhand dealer

29  transactions. The appropriate law enforcement agency shall

30  retain ownership of the computer, unless otherwise agreed

31  upon. The secondhand dealer shall maintain the computer in


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 1  good working order, ordinary wear and tear excepted. If the

 2  secondhand dealer transfers secondhand dealer transactions

 3  electronically, the secondhand dealer is not required to also

 4  deliver to the appropriate law enforcement agency the original

 5  or copies of the secondhand transaction forms. For the purpose

 6  of a criminal investigation, the appropriate law enforcement

 7  agency may request that the secondhand dealer produce an

 8  original of a transaction form that has been electronically

 9  transferred. The secondhand dealer shall deliver this form to

10  the appropriate law enforcement agency within 24 hours after

11  the request.

12         (7)  If the original transaction form is lost or

13  destroyed by the appropriate law enforcement agency, a copy

14  may be used by the secondhand dealer as evidence in court.

15  When an electronic image of a customer's identification is

16  accepted for a transaction, the secondhand dealer must

17  maintain the electronic image in order to meet the

18  recordkeeping requirements applicable to the original

19  transaction form. If a criminal investigation occurs, the

20  secondhand dealer shall, upon request, provide a clear and

21  legible copy of the image to the appropriate law enforcement

22  agency.

23         Section 3.  Section 538.05, Florida Statutes, is

24  amended to read:

25         538.05  Inspection of records and premises of

26  secondhand dealers.--

27         (1)  The entire registered premises and required

28  records of each secondhand dealer are subject to inspection

29  during regular business hours by any law enforcement officer

30  having jurisdiction the police department if the premises are

31  located within a municipality or, if located outside a


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 1  municipality, by the sheriff's department of the county in

 2  which the premises are located, and by any state law

 3  enforcement officer who has jurisdiction over the dealer.

 4         (2)  The inspection authorized by subsection (1) shall

 5  consist of an examination on the registered premises of the

 6  inventory and required records to determine whether the

 7  records and inventory are being maintained on the registered

 8  premises as required by s. 538.04 and whether the holding

 9  period required by s. 538.06 is being complied with.

10         Section 4.  Section 538.06, Florida Statutes, is

11  amended to read:

12         538.06  Holding period.--

13         (1)  A secondhand dealer shall not sell, barter,

14  exchange, alter, adulterate, use, or in any way dispose of any

15  secondhand goods within 15 calendar days of the date of

16  acquisition of the goods. Such holding periods are not

17  applicable when the person known by the secondhand dealer to

18  be the person from whom the goods were acquired desires to

19  redeem, repurchase, or recover the goods, provided the dealer

20  can produce the record of the original transaction with

21  verification that the customer is the person from whom the

22  goods were originally acquired.

23         (2)  A secondhand dealer must maintain actual physical

24  possession of all secondhand goods throughout a transaction.

25  It is unlawful for a secondhand dealer to accept title or any

26  other form of security in secondhand goods in lieu of actual

27  physical possession. A secondhand dealer who accepts title or

28  any other form of security in secondhand goods in lieu of

29  actual physical possession commits a misdemeanor of the first

30  degree, punishable as provided in s. 775.082 or s. 775.083.

31  


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 1         (3)  Upon probable cause that goods held by a

 2  secondhand dealer are stolen, a law enforcement officer with

 3  jurisdiction may place a 90-day written hold order on the

 4  goods extend the holding period to a maximum of 60 days.

 5  However, the hold holding period may be extended beyond 90 60

 6  days by a court of competent jurisdiction upon a finding of

 7  probable cause that the property is stolen and further holding

 8  is necessary for the purposes of trial or to safeguard such

 9  property. The dealer shall assume all responsibility, civil or

10  criminal, relative to the property or evidence in question,

11  including responsibility for the actions of any employee with

12  respect thereto.

13         (4)  While a hold order is in effect, the secondhand

14  dealer must, upon request, release the property subject to the

15  hold order to the custody of a law enforcement officer with

16  jurisdiction for use in a criminal investigation. The release

17  of the property to the custody of the law enforcement officer

18  is not considered a waiver or release of the secondhand

19  dealer's rights or interest in the property. Upon completion

20  of the criminal proceeding, the property must be returned to

21  the secondhand dealer unless the court orders other

22  disposition. When such other disposition is ordered, the court

23  shall additionally order the person from whom the secondhand

24  dealer acquired the property to pay restitution to the

25  secondhand dealer in the amount that the secondhand dealer

26  paid for the property together with reasonable attorney's fees

27  and costs.

28         (5)(4)  All dealers in secondhand property regulated by

29  this chapter shall maintain transaction records for 3 5 years.

30         Section 5.  Section 538.07, Florida Statutes, is

31  amended to read:


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 1         538.07  Penalty for violation of chapter.--

 2         (1)  Except where otherwise provided herein, a person

 3  who knowingly violates any provision of this chapter commits a

 4  misdemeanor of the first degree, punishable as provided in s.

 5  775.082 and by a fine not to exceed $10,000.

 6         (2)  When the lawful owner recovers stolen property

 7  from a secondhand dealer and the person who sold or pledged

 8  the stolen property to the secondhand dealer is convicted of

 9  theft, a violation of this section, or dealing in stolen

10  property, the court shall order the defendant to make

11  restitution to the secondhand dealer or the lawful owner, as

12  applicable pursuant to s. 775.089.

13         Section 6.  Section 538.09, Florida Statutes, is

14  amended to read:

15         538.09  Registration.--

16         (1)  A secondhand dealer shall not engage in the

17  business of purchasing, consigning, or trading pawning

18  secondhand goods from any location without registering with

19  the Department of Revenue. A fee equal to the federal and

20  state costs for processing required fingerprints must be

21  submitted to the department with each application for

22  registration. One application is required for each dealer. If

23  a secondhand dealer is the owner of more than one secondhand

24  store location, the application must list each location, and

25  the department shall issue a duplicate registration for each

26  location. For purposes of subsections (4) and (5) of this

27  section, these duplicate registrations shall be deemed

28  individual registrations. A dealer shall pay a fee of $6 per

29  location at the time of registration and an annual renewal fee

30  of $6 per location on October 1 of each year. All fees

31  collected, less costs of administration, shall be transferred


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 1  into a trust fund to be established and entitled the

 2  Secondhand Dealer and Secondary Metals Recycler Clearing Trust

 3  Fund. The Department of Revenue shall forward the full set of

 4  fingerprints to the Department of Law Enforcement for state

 5  and federal processing, provided the federal service is

 6  available, to be processed for any criminal justice

 7  information as defined in s. 943.045. The cost of processing

 8  such fingerprints shall be payable to the Department of Law

 9  Enforcement by the Department of Revenue. The department may

10  issue a temporary registration to each location pending

11  completion of the background check by state and federal law

12  enforcement agencies, but shall revoke such temporary

13  registration if the completed background check reveals a

14  prohibited criminal background. An applicant for a secondhand

15  dealer registration must be a natural person who has reached

16  the age of 18 years.

17         (a)  If the applicant is a partnership, all the

18  partners must apply.

19         (b)  If the applicant is a joint venture, association,

20  or other noncorporate entity, all members of such joint

21  venture, association, or other noncorporate entity must make

22  application for registration as natural persons.

23         (c)  If the applicant is a corporation, the

24  registration must include the name and address of such

25  corporation's registered agent for service of process in the

26  state and a certified copy of statement from the Secretary of

27  State that the corporation is duly organized in the state or,

28  if the corporation is organized in a state other than Florida,

29  a certified copy of statement from the Secretary of State that

30  the corporation is duly qualified to do business in this

31  state. If the dealer has more than one location, the


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 1  application must list each location owned by the same legal

 2  entity and the department shall issue a duplicate registration

 3  for each location.

 4         (2)  The secondhand dealer shall furnish with her or

 5  his registration a complete set of her or his fingerprints,

 6  certified by an authorized law enforcement officer, and a

 7  recent fullface photographic identification card of herself or

 8  himself. The Department of Law Enforcement shall report its

 9  findings to the Department of Revenue within 30 days after the

10  date fingerprint cards are submitted for criminal justice

11  information.

12         (3)  The secondhand dealer's registration shall be

13  conspicuously displayed at her or his registered location

14  principal place of business. A secondhand dealer must hold

15  secondhand goods at the registered location until 15 days

16  after the secondhand transaction or until any extension of the

17  holding period has expired, whichever is later, and must

18  retain records of each transaction which is not specifically

19  exempted by this chapter. A secondhand dealer shall not

20  dispose of property at any location until the holding period

21  has expired unless the transaction is specifically exempted by

22  this chapter.

23         (4)  The department may impose a civil fine of up to

24  $10,000 for each violation of this section, which fine shall

25  be transferred into the General Revenue Fund. If the fine is

26  not paid within 60 days, the department may bring a civil

27  action under s. 120.69 to recover the fine.

28         (5)  In addition to the fine provided in subsection

29  (4), registration under this section may be denied or any

30  registration granted may be revoked, restricted, or suspended

31  


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 1  by the department if the department determines that the

 2  applicant or registrant:

 3         (a)  Has violated any provision of this chapter or any

 4  rule or order made pursuant to this chapter;

 5         (b)  Has made a material false statement in the

 6  application for registration;

 7         (c)  Has been guilty of a fraudulent act in connection

 8  with any purchase or sale or has been or is engaged in or is

 9  about to engage in any practice, purchase, or sale which is

10  fraudulent or in violation of the law;

11         (d)  Has made a misrepresentation or false statement

12  to, or concealed any essential or material fact from, any

13  person in making any purchase or sale;

14         (e)  Is making purchases or sales through any business

15  associate not registered in compliance with the provisions of

16  this chapter;

17         (f)  Has, within the preceding 10-year 5-year period

18  for new registrants who apply for registration on or after

19  October 1, 2006, been convicted of, or has entered a plea of

20  guilty or nolo contendere to, or had adjudication withheld

21  for, a crime against the laws of this state or any other state

22  or of the United States which relates to registration as a

23  secondhand dealer or which involves theft, larceny, dealing in

24  stolen property, receiving stolen property, burglary,

25  embezzlement, obtaining property by false pretenses,

26  possession of altered property, any felony drug offense, any

27  violation of s. 812.015, or any fraudulent or dishonest

28  dealing;

29         (g)  Has had a final judgment entered against her or

30  him in a civil action upon grounds of fraud, embezzlement,

31  misrepresentation, or deceit; or


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 1         (h)  Has failed to pay any sales tax owed to the

 2  Department of Revenue.

 3  

 4  In the event the department determines to deny an application

 5  or revoke a registration, it shall enter a final order with

 6  its findings on the register of secondhand dealers and their

 7  business associates, if any; and denial, suspension, or

 8  revocation of the registration of a secondhand dealer shall

 9  also deny, suspend, or revoke the registration of such

10  secondhand dealer's business associates.

11         (6)  Upon the request of a law enforcement official,

12  the Department of Revenue shall release to the official the

13  name and address of any secondhand dealer registered to do

14  business within the official's jurisdiction.

15         Section 7.  Section 538.16, Florida Statutes, is

16  repealed.

17         Section 8.  Subsection (4) of section 516.02, Florida

18  Statutes, is amended to read:

19         516.02  Loans; lines of credit; rate of interest;

20  license.--

21         (4)  This chapter does not apply to any person who does

22  business under, and as permitted by, any law of this state or

23  of the United States relating to banks, savings banks, trust

24  companies, building and loan associations, credit unions, or

25  industrial loan and investment companies. This chapter also

26  does not apply to title loans as defined in s. 538.03(1)(i) or

27  pawns as defined in s. 538.03(1)(d). A pawnbroker may not be

28  licensed to transact business under this chapter.

29         Section 9.  For the purpose of incorporating the

30  amendment to section 538.03, Florida Statutes, in a reference

31  


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 1  thereto, paragraph (f) of subsection (3) of section 790.335,

 2  Florida Statutes, is reenacted to read:

 3         790.335  Prohibition of registration of firearms.--

 4         (3)  EXCEPTIONS.--The provisions of this section shall

 5  not apply to:

 6         (f)  Firearm records, including paper pawn transaction

 7  forms and contracts on firearm transactions, required by

 8  chapters 538 and 539.

 9         1.  Electronic firearm records held pursuant to chapter

10  538 may only be kept by a secondhand dealer for 30 days after

11  the date of the purchase of the firearm by the secondhand

12  dealer.

13         2.  Electronic firearm records held pursuant to chapter

14  539 may only be kept by a pawnbroker for 30 days after the

15  expiration of the loan that is secured by a firearm or 30 days

16  after the date of purchase of a firearm, whichever is

17  applicable.

18         3.  Except as required by federal law, any firearm

19  records kept pursuant to chapter 538 or chapter 539 shall not,

20  at any time, be electronically transferred to any public or

21  private entity, agency, business, or enterprise, nor shall any

22  such records be copied or transferred for purposes of

23  accumulation of such records into lists, registries, or

24  databases.

25         4.  Notwithstanding subparagraph 3., secondhand dealers

26  and pawnbrokers may electronically submit firearm transaction

27  records to the appropriate law enforcement agencies as

28  required by chapters 538 and 539; however, the law enforcement

29  agencies may not electronically submit such records to any

30  other person or entity and must destroy such records within 60

31  days after receipt of such records.


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 1         5.  Notwithstanding subparagraph 3., secondhand dealers

 2  and pawnbrokers may electronically submit limited firearms

 3  records consisting solely of the manufacturer, model, serial

 4  number, and caliber of pawned or purchased firearms to a

 5  third-party private provider that is exclusively incorporated,

 6  exclusively owned, and exclusively operated in the United

 7  States and that restricts access to such information to only

 8  appropriate law enforcement agencies for legitimate law

 9  enforcement purposes. Such records must be destroyed within 30

10  days by the third-party provider. As a condition of receipt of

11  such records, the third-party provider must agree in writing

12  to comply with the requirements of this section. Any

13  pawnbroker or secondhand dealer who contracts with a

14  third-party provider other than as provided in this act or

15  electronically transmits any records of firearms transactions

16  to any third-party provider other than the records

17  specifically allowed by this paragraph commits a felony of the

18  second degree, punishable as provided in s. 775.082 or s.

19  775.083.

20         Section 10.  This act shall take effect October 1,

21  2006.

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  


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