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Pawnbroker Law

By AuthorMe

Governor Jerry Brown has signed into law AB 391, a bill authored by Dr. Richard Pan (D-Sacramento) that will create a statewide partnership to build an online reporting system allowing law enforcement, pawnbrokers and secondhand dealers to work together to follow items sold or used as collateral. The California Pawnbrokers Association (CAPA), in cooperation with various state and local law enforcement agencies, acknowledges the legislative accomplishment of Assemblyman Pan for working to make AB 391 law.

AB 391 mandates that the single Online Statewide Digital Database be funded through pawnbroker and secondhand dealer licensing fees. The California Department of Justice will be responsible for creating and administering the online database. Rather than providing paper transaction reports as is now the practice, the new system will report transactions electronically the same day that they occur.

"This has been a very difficult 12-year legislative effort that has finally been enacted," said CAPA Board Member, Stan Lukowicz, owner of Capitol City Loan pawn shops in Sacramento. "Pawnbrokers and secondhand dealers will now be able to report our transactions in an electronic format that saves our industry the unnecessary costs associated with the paper reporting, while at the same time providing law enforcement with an efficient means to combat property crime." Lukowicz added, "Even in these difficult economic times, CAPA is pleased to do our part in this effort."

Currently, all secondhand dealers, pawnbrokers and coin and antique dealers are required to report transactions to law enforcement in an effort to dissuade any type of illegal activity. However, reduced funding to law enforcement has created transaction backlogs making it difficult for agencies to enforce laws already on the books. The single Statewide Digital Database will provide multi-jurisdictional law enforcement agencies with a vital tool to combat transaction paperwork backlogs as well as pinpoint any illegal transactions that may have occurred.

For more information about CAPA, visit

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