CCBMA Needs Your Support

Aug 14th, 2006 - Things didn’t go the pawnbrokers’ way this year, but they haven’t given up. After our coalition managed to defeat their electronic reporting bill (AB 1178 by Assemblyman Leland Yee) in January, the pawnbrokers began looking for another bill to hijack. To their chagrin, Assemblyman Bill Maze introduced AB 1947 and the pawnbrokers had to expend their time and resources to defeat that measure instead. It looks like time is about to run out for a “Son of AB 1178" this year, but next year will be different.

The pawnbrokers are already looking forward to reintroducing their legislation in January, although they may have to find a new author. They are also very involved in the upcoming elections, trying to elect more legislators who will be amenable to their legislation.

Now is not the time for us to become complacent. The pawnbrokers will reintroduce their electronic reporting bill next year and they’re working hard to elect more friends. You must continue to support CCBMA with your contributions so we will be fully funded when the time comes.

CCBMA needs your help.

• To increase membership. The pawnbrokers have over 300 members and we are currently under 100. Speaking for hundreds of businesses in the state of California carries a lot of weight with legislators.
• Funding. I'm paying for my own expenses (i.e. air, hotels and food). In addition, we have a full time legislative staff that monitors pending bills in Sacramento, and they have their monthly fees and expenses. With our current funds, we will be out of money very soon. Your financial help is needed right now.
• We need to create a resource list of legislators in Sacramento who understand the difference between Coin Dealers and Pawnbrokers. We need to support legislators’ election campaign fund raisers over the summer to build relationships with our state legislators. Remember, we are up against the influence of the pawnbrokers association which has a $500,000 bankroll and a history of building excellent relationships with key California legislators.

We can help elect two coin collectors to statewide office. Former Governor Jerry Brown, a Democrat, is running for Attorney General of California. Claude Parrish is the Republican candidate for State Treasurer of California. Both Brown and Parrish are long-time coin collectors who are vitally concerned about your right to buy, sell and own coins and precious metals.

Both the Attorney General and the State Treasurer have the ability to influence public policy with regard to the regulation of the coin and bullion industry. As we approach the next legislative session in Sacramento and with Pawnbrokers Association having committed substantial assets for passage of a bill that could be harmful to the investment community, it is important to have an Attorney General and a State Treasurer who understand and support collectors.

Please show you support for the CCBMA today.

The results of round 3 are in, AB1178 is officially DEAD

Jan 31st, 2006 - Thanks to hundreds of letter, Faxes and E-mails from coin dealers, antiques dealers, consignment store operators, eBay traders and other concerned citizens, Assembly Member Yee realized he did not have the requisite 41 votes to gain passage of AB 1178, therefore the bill did not come to the Assembly floor today for a vote. It’s now history. However, the fight continues.

As you may remember, round 1 was in 2004 when Senator Burton carried SB1893 for the pawnbrokers and we were able to kill it in committee. Round 2 was 2005, when we were about to turn AB1178 into a 2 year bill before it came to the assembly floor. Round 3 was decided today and again we were successful with your help.

Now, here comes Round 4. The pawnbrokers' lobbyist, Bill Duplissea, told our Lobbyist, Carl Brakensiek, that the issue will not go away. Mr. Duplissea said Assembly Member Yee plans to reintroduce "AB 1178-Lite" -- a scaled-down version of the current bill in February.

We are now preparing for round 4. Our lobbyist, Cerrell & Associates, Diane Piret, and President Barry Stuppler are discussing our options. So, stay tuned.

We wish to thank everyone for an unbelievable effort and your continued support.

MEMBERS & FRIENDS OF THE CALIFORNIA COIN AND BULLION
AB 1178 (Pawn Broker Bill) - OPPOSE

Jan, 9th - As a member or friend of the California Coin and Bullion Merchants Association (CCBMA), your action is urgently needed to express strong opposition to Assembly Bill 1178 by San Francisco Assemblyman Leland Yee. This bill may be considered for approval by the State Assembly as early as Monday, January 9. AB 1178 would require new and incredibly burdensome regulations and fees on all CCBMA members in California in order to implement a $2.5 million Electronic Data Reporting System to track stolen property.

You, your friends, clients and employees must contact your legislator immediately stating opposition to this measure for the following reasons:

• Although CCBMA supports electronic reporting to help law enforcement track stolen goods, AB 1178 has so many bad unintended consequences that it will only bog down real crime prevention efforts with worthless data and make law-abiding California citizens feel like criminals.
• The bill exempts swap meets, flea markets and many other venues where stolen merchandise is often fenced while burdening legitimate, law-abiding brick and mortar businesses.
• There is no minimum transaction amount, so a dealer would be required to report the purchase of insignificant items such as a $5 sterling silver spoon or a broken watch.
• Although coin dealers are presently exempt from the second hand dealer law, AB 1178 would require them to become licensed and pay hundreds of dollars in fees if they would engage in a single non-exempt transaction.
• AB 1178 is anti-business and anti-consumer. It will impede the growth of small business in California and will force customers to be fingerprinted and treated suspiciously. It is an unnecessary intrusion into the workings of legitimate small businesses that collect and pay millions of dollars in state taxes

This bill may be considered for approval by the State Assembly as early as Monday, January 9. Please contact your Assembly member today and voice your opposition, and ask your friends, clients and employees to do the same. You can find your Assembly member online at www.leginfo.ca.gov/yourleg.html.

The Pawnbrokers’ Assault on California Coin Dealers – Part 2
Where Do We Go From Here?

Nov, 28thThis year (2005), the pawnbrokers, through their state association, the Collateral Loan & Secondhand Dealers Association, sponsored Assembly Bill 1178 by Assembly Speaker pro Tempore Leland Yee (D-San Francisco). The bill would have required coin dealers and secondhand dealers to fund the lion’s share of the cost of creating and maintaining the state’s electronic reporting system that will primarily be used by pawnbrokers. In effect, the pawnbrokers attempted to get their competitors to pay for their system.

The bill encountered stiff opposition from the California Coin and Bullion Merchants Association, as well as from representatives of antique auctions, consignment stores and eBay. Given the strength of the author, the sponsors were able to muscle the bill out of two Assembly committees, but it stalled on the Assembly Floor in June. If it does not pass the Assembly by January 31, 2006, AB 1178 will die. (Nothing prevents the pawnbrokers from introducing another bill on the same subject in 2006.)

CCBMA opposed AB 1178 for several reasons:

• Although coin dealers are presently exempt from the second hand dealer law, AB 1178 would require them to become licensed and pay hundreds of dollars in fees if they happened to engage in a single non-exempt transaction
• There is no minimum transaction amount, so a dealer would be required to report the purchase of insignificant items such as a $5 sterling silver spoon or a broken watch
• There is no dealer-to-dealer exemption, so if a reportable item is resold to another dealer, the second dealer would have to fingerprint the first dealer and the process starts all over again
• Although CCBMA supports electronic reporting to help law enforcement track stolen goods, the bill contains so many unintended consequences that it will only bog down the system with worthless data and turn many California citizens into criminals
• The bill exempts swap meets, flea markets and many other venues where stolen merchandise is often fenced while burdening legitimate brick and mortar businesses

Although the pawnbrokers suffered a severe setback when their bill stalled in June, they appear resolute to keep trying. We know they have sponsored several fund raisers for key legislators and they continue to woo the Department of Justice to become more forceful in support of the bill. Their political action committee (PAC) has been quite active recently.

Coin dealers take these threats seriously. Coin dealers are not, and have never been, a significant channel for the movement of stolen property. The type of regulation that may be appropriate for pawnbrokers will not work for coin dealers without seriously impairing their ability to do business and attract customers.

Coin dealers plan to move proactively to inform legislators not only of the flaws in AB 1178, but also to point out how it could cost the state millions of dollars in lost tax revenues. To augment the activities of our lobbyist in Sacramento, CCBMA has also retained the services of Cerrell and Associates, the pre-eminent governmental public relations firm in California. We are also working closely with other collectibles groups to create a strong grassroots movement to confront the pawnbrokers.

IMPORTANT BULLETIN

Oct, 1st - AB 1178 (Yee) became a two-year bill on June 2 when, thanks to intense opposition from a coalition that included CCBMA, the author discovered he didn't have enough votes in the state Assembly to pass it. Thereafter, Assemblyman Yee and the pawnbrokers worked in earnest to craft a compromise package for insertion into some other legislation. That effort failed and the Legislature has now recessed until January.

The proponents of AB 1178 have not given up. They intend to aggressively move forward next year with their agenda to require all second hand dealers, and coin dealers who buy or sell any non-exempt merchandise, to become licensed by the state and to be subject to strict reporting requirements for all non-exempt transactions. Customers would have to be fingerprinted and submit proof of identity. There would be a mandatory licensing and a holding period of up to 30 days. License fees and other costs could run hundreds of dollars a year. While picking on legitimate businesses such as those operated by coin and precious metal dealers, the bill would exempt swap meets from any licensing and reporting requirements.

CCBMA needs to prepare for a major legislative fight over AB1178 immediately, because the pawnbrokers are aggressive trying to influence legislators right now and will have all there ducks in a row by January. Remember AB1178 has already passed two important committees in the State Assembly and will be hear on the floor of the Assembly as its first course of business. As part of the opposition, CCBMA needs to have its grassroots machine organized and ready to swing into action within hours of any new legislative developments. Mass emailing, faxing and calling legislators will be key as well as possible visits to key legislators district offices. I’d recommend that during October, November and December you work with Barry Stuppler to make as many state Senators and Assemblymembers as possible aware of the problems AB1178 would cause your business if passed.

For all members of the California Coin & Bullion Merchants Association

Sept, 15th - With the recent passage of the US Patriot Act many dealers in precious metals and rare coins are now subject to the regulations in Section 352 within the Patriot Act. Non-compliance would result in federal penalties (fines and imprisonment). ICTA, with the endorsement and sponsorship of the PNG, CCBMA, NSDR and Collectors Universe, has taken on the responsibility of conducting a brief coin dealer educational seminar during the upcoming Long Beach Coin Expo.

With the help of former IRS Criminal Investigation Division (CID) Special Agent (ret.) Ray Gregson this seminar will focus on Coin Dealer compliance within Section 352 of the USA PATRIOT Act. He is an expert on money laundering and compliance plans. Section 352 Applies SPECIFICALLY to Dealers in Precious Metals, Stones or Jewels ("Precious Metals" Includes Bullion AND Certain US $20's, $10's, etc.). All dealers must comply by January 1, 2006 (whether or not you do cash transactions).

On-site registration will begin at 11:15 AM on Wednesday, September 21st in room 102-A of the Long Beach Convention Center. The seminar will begin promptly at 12:00 noon, so we recommend pre-registration to avoid delayed admission. For ICTA members, the pre-registration donation is $50; at the door $75 (fee covers up to 2 individuals from the same company).