The California Assembly may vote as early as Thursday on AB 1178, an Assembly Bill that would establish a statewide electronic reporting system for pawnbrokers and secondhand dealers. AB 1178 affects eBay drop-off stores located in California. Last Spring, legislators decided to postpone moving the bill so there could be further talks with those opposing the bill (http://auctionbytes.com/cab/abn/y05/m06/i06/s03).

Adam Keigwin, Press Secretary to Assembly Speaker Yee, said recent amendments made to the bill are nothing major and merely clean up the language. He said Yee had been trying to work with the opposition to address concerns. However, he said that "eBay is a staunch opposer, and there is no way to appease them."

eBay spokesperson Hani Durzy said eBay is working actively to oppose it and believes it singles out sellers on eBay. He said the recent amendments add exemptions such as trade shows, coin dealers and yard sales so that the only people left are eBay sellers. "We made some suggestions that fell on deaf ears - that tells you about the motivations of people who support the bill," Durzy said.

Keigwin said the bill only affects those who take possession of items, and they are already covered under existing law. He said AB 1178 is designed to set up a better system for law enforcement purposes and make it easier and cheaper for pawnbrokers and secondhand dealers to comply with existing laws. Keigwin sent an email to AuctionBytes containing information his office has published about AB 1178, including the following statement:

Currently, high risk items such as jewelry, gems, sterling silver utensils, precious metals, and serialized and engraved items like electronics must be reported through a cumbersome paper reporting system that costs secondhand dealers $360 per year. Under the new electronic system established by AB 1178, reporting costs would be lowered to only $112 per year, a significant savings for secondhand businesses.

The statement also cited FTC figures about Internet auction fraud, including, "The cost of internet crime has rapidly escalated to over $265 million in yearly losses for American consumers."

Durzy said AB 1178's fingerprint requirement is impossible to justify and hurts eBay consignment sellers. eBay suggested a compromise that photos be substituted. All of eBay's suggestions for compromise were rejected, Durzy said. "It would cause tremendous hardships for small businesses who sell on eBay. The supporters have it out for entrepreneurs who are employing people in their own state."

Durzy said the point that is getting lost is that no one has ever shown compelling evidence that fencing of goods is happening on a greater rate thanks to eBay than it was before. "If the point of the bill is to stop fencing of stolen goods, why are there exemptions for swap meets and junk dealers?" he asked.

Keigwin said if AB 1178 passes in the Assembly it would move to the Senate for committee approval and vote, then would head to the governor's desk.

Related Articles

California Delays Bill Regulating eBay Drop-off Stores
http://auctionbytes.com/cab/abn/y05/m06/i06/s03

Assembly Bill 1178 and Its Effect on eBay Drop-off Stores
http://auctionbytes.com/cab/abn/y05/m04/i29/s02

AuctionBytes Chart of eBay Drop-off Stores
http://auctionbytes.com/cab/pages/consign