California Business and Professions Code 21628 BPC makes it a misdemeanor crime for a pawnbroker to knowingly fail to comply with certain mandatory reporting requirements about property that is bought, traded, or received.
Pawnbrokers (secondhand dealers) and coin dealers are subject to strict regulations to ensure that their businesses operate legally and ethically.
One of the critical responsibilities of pawnbrokers under California law is the obligation to report their transactions to law enforcement on a daily basis. As noted, failure to do so is a criminal offense under BPC 21628. Penalties for a first-time offense include up to two months in jail and $1,500 in fines.
BPC 21628 says, "(a) Every secondhand dealer or coin dealer described in Section 21626 shall report daily, or no later than the next business day excluding weekends and holidays after receipt or purchase of secondhand tangible personal property, to the California Pawn and SecondhandDealer System (CAPSS), all secondhand tangible personal property, except for firearms, which they have purchased, taken in trade, taken in pawn, accepted for sale on consignment, or accepted for auction, in accordance with Section 21630 and this section.
The report shall be legible, prepared in English, completed where applicable, and include the information specified in subparagraphs (A) to (C), inclusive of paragraph (1), as appropriate.
(1)(A) A property description. The property description shall be a complete and reasonably accurate description of the property, including, but not limited to, the following: serial number, personalized inscriptions, and other identifying marks or symbols, owner-applied numbers, the size, color, material, and, if known by the secondhand dealer, the manufacturer's pattern name…"
Overview of BPC 21628
Business & Professions Code 21628 BPC requires that pawnbrokers and coin dealers report daily, or no later than the next business day, all transactions involving secondhand tangible personal property to the California Pawn and Secondhand Dealer System (CAPSS).
This report must be comprehensive and include details such as property descriptions, serial numbers, identifying marks, and descriptors recognized by the Department of Justice.
The reporting requirement under BPC 21628 does not include firearms taken in trade or pawn, as these are reported under a different system.
Additionally, the law mandates that specific information must be collected and maintained for three years, including identification and verification of the seller and certification by the seller that they own the property or have the authority to sell it.
This identification process can involve using technology such as cameras or software to obtain and verify the seller's identity.
Who Is Required to Report?
Under California law, individuals and companies designated as "secondhand dealers" and "coin dealers" under BPC 21626 are required to make these daily reports.
Specifically, a "secondhand dealer" is "any person, copartnership, firm, or corporation whose business includes buying, selling, trading, taking in pawn, accepting for sale on consignment, accepting for auctioning, or auctioning secondhand tangible personal property."
A "coin dealer" is "any person, firm, partnership, or corporation whose principal business is the buying, selling, and trading of coins, monetized bullion, or commercial grade ingots of gold, or silver, or other precious metals."
What Must Be Proven to Convict?
To convict you of failing to report under BPC 21628, the prosecution must prove the following key elements of the crime beyond a reasonable doubt:
- You operate under the legal definition of a pawnbroker or coin dealer
- As such, you must report the receipt or purchase of secondhand tangible property
- You knowingly failed to report the required details of one or more of these transactions within the required time frame
- The failure to report was willful. In other words, it is not accidental or as a result of negligence.
What Are Related Crimes?
- Penal Code 496(a) PC - Receiving stolen property. This law makes it a wobbler crime for someone to buy, receive, conceal, sell, or withhold from the owner any property that they know to be stolen. If the total value of the property is $950 or less, then receiving stolen property is filed as a misdemeanor, which carries up to one year in county jail and a fine of up to $1,000. A felony (over $950 value) carries 16 months, two or three years in jail, and a fine of up to $10,000.
- Business and Professions Code 22430 BPC - Deceptive identification documents. This law makes it a wobbler crime to manufacture or sell deceptive identification documents, such as a driver's license, identification card, birth certificate, passport, and social security card. A misdemeanor conviction carries up to one year in county jail. A felony carries up to three years in a state prison.
What are the BPC 21628 Penalties?
Failing to report in compliance with BPC 21628 is a misdemeanor offense. The penalties on conviction are progressively more severe based on the number of prior times you have failed to report.
- For a first-time offense, you could face up to $1500 in fines and up to 2 months in county jail.
- For a second offense, you could face up to $5000 in fines and up to 4 months in county jail.
- For a third or subsequent offense, you could face up to $25,000 in fines and up to 6 months in county jail.
In addition to these penalties, you run the risk of having your professional license revoked so you can no longer operate as a pawnbroker or coin dealer.
What Are the Common Defenses?
If you are accused of violating BPC 21628, an experienced California criminal defense attorney can employ one or more defenses to counter the charges. These include, but aren't limited to:
- Not a Pawnbroker: Showing that you do not meet the legal definition of a secondhand dealer or coin dealer and, therefore, are not subject to the reporting regulations.
- Lack of Intent: Demonstrating that the failure to report was unintentional and occurred despite a good faith effort to comply with the law. For instance, if the omission happened due to a genuine misunderstanding or accidental oversight.
- Clerical Errors: Arguing that any reporting discrepancies were the result of clerical errors rather than a deliberate attempt to circumvent the law. This defense may be strengthened by showing a history of compliance and immediate correction of mistakes.
- Compliance with Law: Providing evidence that you did, in fact, comply with the reporting requirements. This could involve presenting documented proof of timely and accurate submissions to CAPSS.
- Technological Issues: Citing technological malfunctions or system errors that prevented timely reporting. If the failure to report was due to issues beyond your control, such as CAPSS system outages, this could serve as a valid defense.
- Cooperation with Authorities: Showing that you cooperated fully with authorities to rectify the situation once the error was discovered. This can demonstrate a willingness to comply with the law and mitigate potential penalties.
For additional information, contact our criminal defense law firm, Eisner Gorin LLP, located in Los Angeles, CA.
Related Content:
If you have one phone call from jail, call us! If you are facing criminal charges,