Failure to Report by Pawnbroker

It is unlawful for any secondhand dealer or coin dealer to not report on qualified forms approved by the Department of Justice, on the next business day, excluding weekends and holidays; purchases of all secondhand tangible property, except firearms; acquired in trade; pawn; sale on consignment; auction; to CAPSS; the chief of police or sheriff.

What is the definition of secondhand tangible property under Business and Professions Code 21628 BPC?

Tangible property is all property that is personal in nature to the seller that: has the serial number; the token or tokenized identifiers; or personalized initials.

What is the definition of a secondhand dealer under Business and Professions Code 21628 BPC?

A secondhand dealer is any person or business entity that is in the business of: buying; selling; bartering; trading; pawning; taking on consignment; accepting for auction; auctioning tangible personal property; that is qualified as second tangible personal property.

How does CAPSS; the chief of police or sheriff apply under Business and Professions Code 21628 BPC?

The California Pawn and Secondhand Dealer System (CAPSS) is an electronic reporting system to comply with the reporting requirements dictated by the California Department of Justice. It also complies with the strict guideline reporting requirements of California Business Code 21628 BPC.

This electronic system was implemented in 2012, it streamlines the process of reporting with a uniform database, sponsored by the State, which reduces fraud, ensures compliance, and expedites feedback from the State regarding all reporting requisites for all secondhand tangible property purchases or transactions that took place on behalf of the pawnshop. The database line-items specification or property categories for extensive description. Like the USPTO registration a common use term is utilized.

All that is required is a computer or laptop, a signature pad, and electronic signature device. These devices provide the ease of acquiring identification such as passports, driver’s licenses, and visas to upload into the system. One of the advantages of CAPSS is that it allows verification of US and Non-US addresses and bank accounts for pawning-layaway purposes.

What is the mental state required for a violation of Business and Professions Code 21628 BPC?

The term” shall” does not indicate a strict liability offense, but infers strict compliance as being associated with the requisite to maintain a license to operate a pawn shop. But when there is a loosely defined definition of the mental state of intent can be attributed. Intentional, is the practical awareness of another to ascertain that their conduct does not comply with conduct of reasonableness; and reasonably knew the natural and probable consequences that would result. As applied to Business and Professions Code 21628 BPC, the State must prove beyond a reasonable doubt, that the accused, being a person of reasonable sound mind, should have known that as business entity, owner, agent or representative, should have known that when dealing in the; sale, purchase, trade, barter of secondhand tangible property, other than firearms that as a participant in the trade, it is known to document the transactions on CAPSS; and the accused knew this fact; and either from an omission or inadvertence did not initiate or complete the process required to record the secondhand tangible property transaction on the CAPSS system; and reasonably knows from common knowledge of the trade the results that would procure.

BPC 21628 – Sentencing 

A violation of Business and Professions Code 21628 BPC is charged as a misdemeanor. The penalties include confinement not exceeding 6 months, with fines and fees not exceeding $1000 dollars.

What is an example of a violation of Business and Professions Code 21628 BPC?

• Calvin Pawns is a pawn shop. The store has a business model, to deal with no more than 20 transactions a day; dealing with the buy and sell of used clothes and suits for a high-end neighborhood. People in the area came to the store to buy and sell high-end suits for a discount. The suits sold within a range of $500 to $10,000 dollars; and the store purchased the suits for half that price. Today, Calvin Pawns finished training Trinity, its new store clerk. Calvin Pawns has been in business for 20 years and has a sound training method that allows it to hire the best talent. Trinity and Dee were the clerks who evaluated all the suits for appraisal, earmarked them, and processed them for resell. Dee and Trinity respectively processed 5 suits. Two weeks later, an investigator from the Attorney General’s Office came into the store because a couple was beaten and robbed yesterday for the Armani suits they purchased from Calvin Pawns. The investigator asked for the transaction record of the suits on the CAPSS system because he could not find the existence of the record. The manager of Calvin Pawns could not find any record of the transactions on CAPSS. The owner of Calvin Pawns, Trinity, and the manager were sent a notice to appear in Superior Court. The owner and manager’s case were dismissed for sufficient cause under Penal Code 1385.5; but Trinity was fined $1000 dollars per suit.

BPC 21628 – Defenses 

• Repudiating Conduct/ Frolic – Despite the conduct that resulted in the violation of Business and Professions Code 21628 BPC, the owner or management took corrective steps to correct the violation that resulted in proper report in several days after the violation occurred.
• Diminished Actuality – Despite the volition the accused did not have the capacity required at the take to sustain that faculties required to consummate a clean transaction.

Failure to Report by Pawnbroker – Hire Us 

If you are charged with a violation of Business and Professions Code 21628 BPC, call Law Mart today.