SF 2294

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; regulating access to customer data and personal property
data maintained by pawnbrokers and secondhand goods dealers; restricting
law enforcement access to customer data; classifying data; preempting local
regulation; amending Minnesota Statutes 2006, sections 13.487, by adding a
subdivision; 325J.01, by adding subdivisions; 325J.05; 325J.13; proposing
coding for new law in Minnesota Statutes, chapter 325J.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 13.487, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Pawnbrokers and secondhand dealers. new text end

new text begin Customer data and personal
property data collected from pawnbrokers and secondhand goods dealers are classified
in section 325J.051.
new text end

Sec. 2.

Minnesota Statutes 2006, section 325J.01, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Customer data. new text end

new text begin "Customer data" means data collected by a pawnbroker
or secondhand goods dealer regarding a customer, including:
new text end

new text begin (1) name, address, or birth date;
new text end

new text begin (2) physical description, including gender, race, height, weight, color of eyes, color
of hair, tattoos, body piercing, or any other identifying physical features;
new text end

new text begin (3) nationality or country of origin; or
new text end

new text begin (4) photographs, videotapes, electronic surveillance, and identification cards,
including a driver's license, Social Security card, passport, or military identification card.
new text end

Sec. 3.

Minnesota Statutes 2006, section 325J.01, is amended by adding a subdivision
to read:

new text begin Subd. 2b. new text end

new text begin Database. new text end

new text begin "Database" means a data collection system that stores
customer data or personal property data for the purposes of regulating pawnbrokers or
secondhand goods dealers by the state or a municipality.
new text end

Sec. 4.

Minnesota Statutes 2006, section 325J.01, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Personal property data. new text end

new text begin "Personal property data" means data collected
by a pawnbroker or secondhand goods dealer regarding pledged goods that are part of a
pawn transaction or personal property that is purchased as part of a secondhand goods
transaction, including a description of the goods or property and the manufacturer's model
or serial number, if applicable.
new text end

Sec. 5.

Minnesota Statutes 2006, section 325J.01, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Reportable transaction. new text end

new text begin "Reportable transaction" means a pawn
transaction or secondhand goods transaction but does not include:
new text end

new text begin (1) renewals, extensions, or redemptions of pawn transactions or secondhand goods
transactions;
new text end

new text begin (2) the bulk purchase or consignment of new or used merchandise from a merchant,
manufacturer, or wholesaler;
new text end

new text begin (3) retail or wholesale sales of merchandise; or
new text end

new text begin (4) a pawn transaction or secondhand goods transaction that has been conducted
with the same customer involving the same item within the previous 12-month period.
new text end

Sec. 6.

Minnesota Statutes 2006, section 325J.01, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Secondhand goods dealer. new text end

new text begin "Secondhand goods dealer" means a person
engaged in the business of selling or receiving personal property, excluding motor
vehicles, that were previously owned, used, rented, or leased.
new text end

Sec. 7.

Minnesota Statutes 2006, section 325J.01, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Secondhand goods transaction. new text end

new text begin "Secondhand goods transaction" means
a purchase of personal property made by a secondhand goods dealer.
new text end

Sec. 8.

Minnesota Statutes 2006, section 325J.05, is amended to read:

325J.05 RECORDS; RETENTION.

(a) The pledgor or seller shall sign a pawn ticket and receive an exact copy of the
pawn ticket.

(b) The pawnbroker shall maintain on the premises a record of all transactions of
pledged or purchased goods for a period of three years. These records shall be a correct
copy of the entries made of the pawn transactions. A pawnbroker shall upon request
provide to the appropriate law enforcement agency a complete and accurate record of
pawn transactions new text begin , provided that customer data must be provided only as authorized under
section 325J.051 new text end . If the pawnbroker provides the records in a computerized format, they
must be provided in the interchange file specification format.

(c) For purposes of paragraph (b), "interchange file specification format" means
the most current version of the Minneapolis automated pawn system interchange file
specification format.

Sec. 9.

new text begin [325J.051] ACCESS TO RECORDS; REPORTING OF DATA; FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Disclosure of data limited. new text end

new text begin Except as otherwise provided in this
section, a pawnbroker or secondhand goods dealer must not disclose customer data and
personal property data to another person, including third-party subscribers to a database,
unless the customer consents to the disclosure.
new text end

new text begin Subd. 2. new text end

new text begin Customer data. new text end

new text begin The state or a municipality may require pawnbrokers
and secondhand goods dealers to collect customer data, provided that the data may be
disclosed to the state, a municipality, a law enforcement agency, or a database only if a law
enforcement agency provides the pawnbroker or secondhand goods dealer with a written
request for specific customer data in connection with a current criminal investigation. The
requesting law enforcement agency must have probable cause to request the customer
data. A pawnbroker or a secondhand goods dealer who receives a request for access to
data under this subdivision shall comply with the request within three calendar days.
new text end

new text begin Subd. 3. new text end

new text begin Personal property data. new text end

new text begin The state or a municipality may require
pawnbrokers and secondhand goods dealers to collect personal property data and report
personal property data to the state, a municipality, a law enforcement agency, or a database.
new text end

new text begin Subd. 4. new text end

new text begin Licensing fee. new text end

new text begin A municipality may charge pawnbrokers and secondhand
goods dealers a fee of up to 25 cents per reportable transaction. A municipality must not
charge pawnbrokers or secondhand goods dealers or their customers any other fee related
to pawn or secondhand goods transactions or the regulation or licensing of pawnbrokers or
secondhand goods dealers.
new text end

new text begin Subd. 5. new text end

new text begin Data classification. new text end

new text begin Customer data or personal property data maintained
by the state or a municipality are private data on individuals or nonpublic data, as defined
in section 13.02. Data maintained by a law enforcement agency are governed by section
13.82.
new text end

Sec. 10.

Minnesota Statutes 2006, section 325J.13, is amended to read:

325J.13 ORDINANCES; CONSISTENCY.

deleted text begin Nothing in deleted text end This chapter preempts or supersedes any new text begin charter provision, new text end ordinance new text begin ,
or other law new text end adopted by a municipality that provides for more restrictive regulation of
deleted text begin pawnbrokers or pawn deleted text end new text begin pawnbrokers, secondhand goods dealers, or pawn or secondhand
goods new text end transactions.