The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 314
INTRODUCER: Senator Boyd
SUBJECT: Business Transactions
DATE: January 12, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. McMillan McKay CM Pre-meeting
2. ACJ
3. AP
I. Summary:
SB 314 requires the Department of Law Enforcement to contract with a private vendor to supply
a statewide reporting system for law enforcement agencies to use in the reporting of transactions
by secondhand dealers and pawnbrokers, and requires secondhand dealers and pawnbrokers that
have computer capability to electronically transmit required transactions to the statewide
reporting system. The system is also for law enforcement agencies to use for investigations.
The bill clarifies that the sheriff may provide a secondhand dealer or pawnbroker with a
computer and all necessary equipment for the purpose of electronically transferring secondhand
dealer or pawn transactions using the statewide reporting system.
The bill clarifies that an “automated kiosk” must provide verification of a seller’s identity by a
United States Government-issued photographic identification card or an electronic image taken
from a United States Government-issued photographic identification or other verifiable
government issued identification.
The bill takes effect July 1, 2024.
II. Present Situation:
Secondhand Dealers
Chapter 538, F.S., regulates secondhand dealers and secondary metal recyclers in the trade of
secondhand goods. The purpose of such regulations is to assist law enforcement in recovering
stolen property and in solving other theft-related crimes.1
1
See ss. 538.04, 538.06, F.S. (identifying recordkeeping requirements and holding periods in connection with secondhand
goods); see also Jarret C. Oeltjen, Florida Pawnbroking: An Industry in Transition, 23 FLA. ST. U. L. REV. 995, 1013 (Spring
1996) (noting that “[t]he main impetus behind [ch. 538, F.S.] was to confront the problem of property theft and drug-related
BILL: SB 314 Page 2
A secondhand dealer is defined as any person, corporation, or other business organization or
entity that is not a secondary metals recycler and is engaged in the business of purchasing,
consigning, or trading secondhand goods. The term also includes a secondhand dealer engaged in
purchasing secondhand goods by means of an automated kiosk.2
Secondhand goods are previously owned or used personal property that is purchased, consigned,
or traded as used property.3 The term also includes gift certificates and credit memos4 that are
purchased, consigned, or traded by a secondhand dealer. Secondhand goods do not include office
furniture, pianos, books, clothing, organs, coins, motor vehicles, costume jewelry; gold, silver,
platinum, palladium, or rhodium bullion that has been assayed and is properly marked as to its
weight and fineness; cardio and strength training or conditioning equipment designed primarily
for indoor use, and secondhand sports equipment that is not permanently labeled with a serial
number.5
A secondhand dealer must annually register his or her business with the Department of Revenue
(DOR).6
Upon each acquisition of secondhand goods, a secondhand dealer must complete a transaction
form that details the goods purchased and the seller’s identity. The secondhand dealer must
retain this document for at least 3 years and forward a copy to the appropriate law enforcement
agency within 24 hours after the acquisition of the secondhand goods.7 In addition to the
descriptive statements of the secondhand goods and the seller’s identity, the transaction record
must also include:
 A statement of the date, time, and place of the transaction;
 A summary of the goods acquired, including brand name, model number, serial number, and
other unique identifiers;
 Digital photographs of the goods acquired in the report that is submitted to law enforcement;
and
 A description of the person from whom the goods were acquired, including his or her right
thumbprint, name and address, and a physical description.8
If the appropriate law enforcement official supplies a secondhand dealer with appropriate
software and the secondhand dealer has computer capability, the secondhand dealer must
electronically transmit the required transaction records.9 Additionally, if a secondhand dealer
crimes by facilitating recovery of stolen goods and apprehending those criminals who may turn to secondhand dealers for
cash”).
2
Section 538.03(1)(h), F.S.
3
Section 538.03(1)(i), F.S.
4
Section 501.95, F.S., defines “credit memo” as a certificate, card, stored value card, or similar instrument issued in
exchange for returned merchandise when the certificate, card, or similar instrument is redeemable for merchandise, food, or
services regardless of whether any cash may be paid to the owner of the certificate, card, or instrument as part of the
redemption transaction.
5
Section 538.03(1)(i), F.S.
6
See generally s. 538.09, F.S. (providing for registration).
7
Section 538.04(1), F.S.
8
Id.
9
Section 538.04(6), F.S.
BILL: SB 314 Page 3
does not have the computer capability, the appropriate law enforcement official may provide a
computer and all of the equipment necessary to electronically transmit transactions.10
Secondhand dealers are required to hold all secondhand goods for at least 15 days after they
acquire the property. However, secondhand dealers are required to hold a precious metal,11
gemstone, jewelry; antique furnishings, fixtures, or decorative objects; or an item of art as
defined in s. 686.501, F.S.,12 for 30 days after they acquire the property.13 Additionally, a
secondhand good must be held for 30 days if the secondhand dealer uses an automated kiosk.14
If a law enforcement officer has probable cause to believe that the goods held by a secondhand
dealer are stolen, the officer may place a 90-day written hold order on the goods.15 This prevents
the secondhand dealer from selling the goods and preserves them for use as evidence in a
criminal trial. Additionally, this allows for the possibility of the goods to be returned to their
rightful owner.16
Law enforcement agencies having jurisdiction enforce compliance with registration, record
keeping, holding periods, and inspection requirements.17 A person who knowingly violates the
requirements governing secondhand dealers in ch. 538, F.S., commits a first degree
misdemeanor, punishable by up to 1 year in jail and a $10,000 fine.18
Mail-in Secondhand Precious Metals Dealers
A mail-in secondhand precious metals dealer19 must register with the DOR and comply with all
of the regulation requirements provided in s. 538.09, F.S., which is the section that regulates the
registration of secondhand dealers. Additionally, a mail-in secondhand precious metals dealer
may only remit payment to a seller if the seller has provided the following information:
 The seller’s name, address, telephone number, and e-mail address, if available;
10
Id.
11
Section 538.03(1)(f), F.S., defines “precious metals” as any item containing any gold, silver, or platinum, or any
combination thereof, excluding any chemical or any automotive, photographic, electrical, medical, or dental materials or
electronic parts.
12
Section 686.501(1), F.S., defines “art” as a painting, sculpture, drawing, work of graphic art, pottery, weaving, batik,
macramé, quilt, print, photograph, or craft work executed in materials including, but not limited to, clay, textile, paper, fiber,
wood, tile, metal, plastic, or glass. The term includes a rare map which is offered as a limited edition or a map 80 years old or
older; or a rare document or rare print which includes, a print, engraving, etching, woodcut, lithograph, or serigraph which is
offered as a limited edition, or one 80 years old or older.
13
Section 538.06(1), F.S.
14
Id. An “automated kiosk” is an interactive device that is permanently installed within a secure retail space and that has the
following technological functions: remotely monitored by a live representative during all business hours; verification of a
seller’s identity by government-issued photographic identification card; automated reading and recording of item serial
numbers; ability to compare item serial numbers against databases of stolen items; secure storage of goods accepted by the
kiosk; and capture and storage of images during the transaction. Section 538.03(1)(c), F.S.
15
Section 538.06(3), F.S.
16
Id.
17
Section 538.05, F.S.
18
Section 538.07(1), F.S.
19
Section 538.31(c), F.S., defines a “mail-in secondhand precious metals dealer” as any person or entity that: (1) conducts
business within this state and that contracts with other persons or entities to buy precious metals or jewelry through an
Internet website, the United States mail, or telemarketing; or (2) conducts business within this state and regularly engages in
the business of purchasing jewelry or precious metals through the mail or Internet-based transactions.
BILL: SB 314 Page 4
 The seller’s driver license number and issuing state or other government-issued identification
number; and
 A sworn statement made by the seller that the seller is of lawful age and that the driver
license number or other government-issued identification number, as well as other
identifying information provided by the seller is true and correct and that the seller is the
lawful owner of the goods with absolute authority to sell the goods.20
The Department of Agriculture and Consumer Services
In addition to regulating agriculture in Florida, the Department of Agriculture and Consumer
Services (DACS) protects consumers from unfair and deceptive business practices and provides
consumer information.
The DACS achieves this, in part, through licensing and registering various professionals,
including:
 Professional Surveyors and Mappers (ch. 472, F.S.);
 Private Investigative, Private Security, and Repossession Services (ch. 493, F.S.);
 Health Studios (ch. 501, pt. I, F.S.);
 Telemarketing Services (ch. 501, pt. IV, F.S.);
 Intrastate Movers and Brokers (ch. 507, F.S.);
 Sellers of Liquefied Petroleum Gas (ch. 527, F.S.);
 Pawnbroking (ch. 539, F.S.);
 Motor Vehicle Repair Shops (ch. 559, pt. IX, F.S.); and
 Sellers of Travel (ch. 559, pt. XI, F.S.).
The DACS provides licenses and regulates each of the above professionals in accordance with
that profession’s practice act. Generally, applicants must meet specific statutory requirements
and must pay all applicable fees.
Pawnbroking
The Florida Pawnbroking Act requires pawnshops to obtain an annual license with the DACS.21
To be eligible for a pawnbroker’s license, an applicant must:
 Be of good moral character;
 Maintain a net worth of at least $50,000 or file security in the form of a bond, letter of credit,
or certificate of deposit in the amount of $10,000 with the DACS; and
 Not have been convicted of, or found guilty of, or pled guilty or nolo contendere to, or not
have been incarcerated within the last 10 years as a result of having previously been
convicted of, or found guilty of, or pled guilty or nolo contendere to, regardless of
adjudication, a crime that involves theft, larceny, dealing in stolen property, receiving stolen
property, burglary, embezzlement, obtaining property by false pretenses, possession of
altered property, or any other fraudulent or dishonest dealing within the last 10 years.22
20
Section 538.32(2), F.S.
21
Section 539.001(3), F.S. See also The Florida Department of Agriculture and Consumer Services, Pawnbroking, available
at https://www.fdacs.gov/Business-Services/Pawnbroking (last visited Jan. 12, 2024).
22
Section 539.001(4), F.S.
BILL: SB 314 Page 5
Pawnbroker Transaction Forms
At the time a pawnbroker enters into any pawn or purchase transaction, the pawnbroker is
required to complete a pawnbroker transaction form.23 The form must include an indication of
whether the transaction is a pawn or a purchase, and the seller must also sign the form.24
A pawnbroker is required to maintain a copy of each completed pawnbroker transaction form on
the pawnshop premises for at least 1 year after the date of the transaction.25 On or before the end
of each business day, the pawnbroker must deliver the original pawnbroker transaction forms for
each of the transactions occurring during the previous business day to the appropriate law
enforcement official.26 Additionally, an electronic image that is accepted for a transaction, must
be maintained electronically in order to meet the same recordkeeping requirements.27
If the appropriate law enforcement agency supplies adequate software and the pawnbroker
presently has the computer capability, pawn transactions are required to be electronically
transferred.28
All goods delivered to a pawnbroker in a pawn or purchase transaction must be securely stored
and maintained in an unaltered condition within the jurisdiction of the appropriate law
enforcement official for a period of 30 calendar days after the transaction.29
III. Effect of Proposed Changes:
Secondhand Dealers
The bill amends s. 538.03, F.S., to provide that “automated kiosk,” means an interactive device
that is permanently installed within a secure retail space and that has the following technological
functions:
 Remotely monitored by a live representative during all business operating hours;
 Verification of a seller’s identity by a United States Government-issued photographic
identification card or an electronic image taken from a United States Government-issued
photographic identification or other verifiable government-issued identification;
 Automated reading and recording of item serial numbers;
 Ability to compare item serial numbers against databases of stolen items;
23
Section 593.001(8)(a), F.S.
24
Id.
25
Section 593.001(9)(a), F.S.
26
Id.
27
Id.
28
Section 593.001(9)(b), F.S. If a pawnbroker does not presently have the computer ability, the appropriate law enforcement
agency may provide the pawnbroker with a computer and all necessary equipment for the purpose of electronically
transferring pawn transactions. The appropriate law enforcement agency must retain ownership of the computer, unless
otherwise agreed upon. Additionally, the pawnbroker must maintain the computer in good working order. If the pawnbroker
transfers pawn transactions electronically, the pawnbroker is not required to also deliver to the appropriate law enforcement
official the original or copies of the pawnbroker transaction forms. The appropriate law enforcement official may, for the
purposes of a criminal investigation, request that the pawnbroker produce an original of a transaction form that has been
electronically transferred. The pawnbroker shall deliver this form to the appropriate law enforcement official within 24 hours
of the request.
29
Section 593.001(9)(c), F.S.
BILL: SB 314 Page 6
 Secure storage of goods accepted by the kiosk, and
 Capture and storage of images during the transaction.
The bill defines “statewide reporting system” as software that the Department of Law
Enforcement shares with law enforcement agencies in Florida for all pawnbrokers, secondhand
dealers, and secondary metals recyclers in Florida to use to report transactions to law
enforcement and for law enforcement agencies to use for investigations.
The bill amends s. 538.04(6), F.S., to require the Department of Law Enforcement to supply a
statewide reporting system to law enforcement agencies on or before July 1, 2027. The system
must be developed and maintained pursuant to s. 790.335(5), F.S.,30 through a department
contract with a third-party private provider that is exclusively incorporated, owned, and operated
in the United States and that restricts access to such transaction information to appropriate law
enforcement agencies for legitimate law enforcement purposes only. The system must have the
abi