DAR File No. 38763

Commerce, Consumer Protection

Section R152-32a-2

Exempt Businesses

Notice of Proposed Rule

(Amendment)

DAR File No.: 38763
Filed: 08/14/2014 02:51:55 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to clarify the secondhand products that are not subject to the requirements of Title 13, Chapter 32a.

Summary of the rule or change:

The rule is updated and clarified to list the secondhand products that, when acquired by a person other than a pawnbroker, are exempt from the requirements of Title 13, Chapter 32a.

State statutory or constitutional authorization for this rule:

• Section 13-32a-112.5
• Section 13-2-5
• Subsection 13-32a-102(23)

Anticipated cost or savings to:

the state budget:

This amendment is for clarification. The Division has historically had adequate budget to enforce the rule. It is not anticipated that the clarification will increase the Division's enforcement costs. No fiscal impact to the state budget is anticipated.

local governments:

Local government is not required to comply with or enforce the pawnshop and secondhand merchandise rules. No fiscal impact to local government is anticipated.

small businesses:

Small businesses other than pawnshops, if dealing in secondhand merchandise, must upload to a central database information about all products not exempted from registration by rule. The annual cost for access to the central database is $300. This filing expands and clarifies the list of exempted items, reducing the number of items that small businesses will be required to upload. It is anticipated that small businesses will realize associated savings in terms of staff time and similar overhead. This list will also allow small businesses, at their option, to restrict their trade so as to deal exclusively in exempted items, which would eliminate the $300 annual central database access fee entirely.

persons other than small businesses, businesses, or local governmental entities:

Affected persons, if dealing in secondhand merchandise, must upload to a central database information about all products not exempted from registration by rule. The annual cost for access to the central database is $300. This filing expands and clarifies the list of exempted items, reducing the number of items that affected persons will be required to upload. It is anticipated that affected persons will realize associated savings in terms of staff time and similar overhead. This list will also allow affected persons, at their option, to restrict their trade so as to deal exclusively in exempted items, which would eliminate the $300 annual central database access fee entirely.

Compliance costs for affected persons:

Affected persons who chooses to deal in the non-exempt secondhand products listed in this amendment must register those products in a central database. The annual cost for access to the central database is $300.

Comments by the department head on the fiscal impact the rule may have on businesses:

As stated in the rule analysis, this amendment lists the types of secondhand merchandise that must be registered in a central database prior to resale. The cost of using the central database is $300 per year. A business that chooses to deal in products that are not exempt from the database registration requirement will pay that annual fee. Otherwise, no fiscal impact to businesses is anticipated.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Consumer Protection
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at jjonsson@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/01/2014

This rule may become effective on:

10/08/2014

Authorized by:

Daniel O'Bannon, Director

R152. Commerce, Consumer Protection.

R152-32a. Pawnshop and Secondhand Merchandise Transaction Information Act Rules.

R152-32a-2. Exempt Businesses.

[In accordance with Section 13-32a-112.5, the definition of "Secondhand merchandise dealer" does not include:

(1) Scrap metal processors as defined by Section 76-10-901(10);

(2) Dealers of used appliances; and

(3) Dealers of used furniture.

](1) The owner or operator of a business that is not a pawnbroker is exempt from the requirements of Title 13, Chapter 32a if the owner or operator deals exclusively in one or more of the following consumer products:

(a) scrap metal acquired by a scrap metal processor pursuant to Section 76-6-1402(10);

(b) antique items as defined in Section 13-32a-102(2);

(c) used furniture;

(d) used appliances;

(e) used games (i.e., card games, table-top games, and magic tricks), except as specified in this Subsection (3); and

(f) used children's products, except as specified in this Subsection (3).

(2) The owner or operator of a business that is not a pawnbroker shall comply with Title 13, Chapter 32a if the owner or operator buys or sells a used or secondhand item that is other than an exempt item pursuant to this Subsection (1).

(3) Notwithstanding the exemptions listed in this Subsection (1), the following consumer products are not exempt from the registration, uploading, retention, and other requirements of Title 13, Chapter 32a:

(a) sports trading cards;

(b) electronic games, video games, and gaming systems;

(c) electronic and acoustic musical instruments (non-toys);

(d) motorized ride-on scooters/vehicles, whether titled or non-titled;

(e) bicycles/scooters designed for use on a public street;

(f) golfing, snow skiing, snowboarding, or water skiing equipment (non-toys);

(g) rare or collectible toys (i.e., trading cards, original issue versions of classic games, and dolls or decorations that are signed or numbered);

(h) child transport devices, including:

(i) strollers and jogging strollers;

(ii) bicycle trailers;

(iii) car seats; and

(iv) baby backpacks, frontpacks, and similar strap-on carriers; and

(i) any item reasonably similar to a consumer product listed in this Subsection (3).

 

KEY: pawnshops, consumer protection, second[ ]hand merchandise dealers

Date of Enactment or Last Substantive Amendment: [August 9, 2010]2014

Notice of Continuation: August 5, 2013

Authorizing, and Implemented or Interpreted Law: 13-2-5; 13-32a-102(23); 13-32a-112.5