Agenda Item 7
September 16, 2014
Public Hearing
MEMORANDUM
September 12,2014
TO:
FROM:
County Council
/V'J
\ \
J
Josh Hamlin, Legislative Attomfl
SUBJECT:
Public Hearing:
Bill 38-14, Secondhand Personal Property - Definitions ­
Payment
Bill 38-14, Secondhand Personal Property - Definitions - Payment, sponsored by the
Council President at the request of the County Executive, was introduced on July 29. A Public
Safety Committee worksession is tentatively scheduled for October
2
at 10:00 a.m.
Bill 38-14 would exclude certain items of personal property with resale value below a
certain dollar amount from the definition of secondhand personal property. The threshold
amount would be set by method
(3)
regulation. The bill would also permit a secondhand
personal property dealer to pay to purchase secondhand personal property by store credit.
Current law requires payment by check.
This packet contains:
Bill 38-14
Legislative Request Report
Memo from County Executive
Fiscal and Economic Impact statement
Chief of Police Support Memo
F:\LAW\BILLS\1438 Secondhand Personal Property\PH Memo,Doc
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Bill No.
38-14
Concerning: Secondhand
Personal
Property - Definitions - Payment
Revised:
07/09/2014
Draft No.
Introduced:
July 29, 2014
Expires:
January 29, 2016
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: -:----::-::--_ _ _ _ _ __
Sunset Date: --:..;N=onc.:..::e=---_ _ _ _ __
Ch. _ _, Laws of Mont. Co, _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: COWlcil President at the request of the COWlty Executive
AN ACT to:
(1)
(2)
(3)
exclude certain items of personal property with resale value below a certain dollar
amoWlt from the definition of secondhand personal property;
pennit payment by store credit; and
generally amend the secondhand personal property law
By amending
Montgomery COWlty Code
Chapter 44A, Secondhand Personal Property
Sections 44A-l and 44A-9
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill,
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No. 38-14
1
2
3
4
Section 1. Sections 44A-1 and 44A-9 are amended as follows:
44A-l.
Definitions.
When used in this Chapter:
*
*
*
5
Secondhand personal property
means previously owned personal property
offered for sale or as collateral by any person, other than the manufacturer,
wholesale distributor, or original retail seller, acting in the ordinary course of
business. Secondhand personal property does not
include~
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7
8
9
10
ill
ill
personal property purchased at public sale[.]; or
items of personal property that have
~
resale value below
£!
dollar
threshold specified for that
~
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12
13
14
of personal property in
£!
regulation adopted under method
Q1
*
44A-9.
*
*
Payments by check or store credit.
15
16
A dealer must pay for each item of secondhand personal property by check or
Qy
granting
~
credit toward the purchase of other merchandise from the dealer, except
as permitted by regulation under method (3).
17
18
19
Approved:
20
21
Craig Rice, President, County Council
Date
22
Approved:
23
Isiah Leggett, County Executive
Date
F:\LAW\BILLS\1438 Secondhand Personal Property\BiII2.Doc
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LEGISLATIVE REQUEST REPORT
Bill 38-14
Secondhand Personal Property
DESCRIPTION:
Definitions
-
Payment
Exempts certain items of personal property below a certain dollar
threshold from the definition of secondhand personal property and
allows for payment by check or store credit
Amendments are needed to reflect changes in the marketplace.
Response to changes in the marketplace and address concerns
expressed by retail
thrift
stores and national chain retailers.
Office of Consumer Protection and Police Department
Attached
Attached
To be requested.
To be researched.
Office of Consumer Protection
Police Department
Office of the County Attorney
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
No change
f:\law\bills\1438 secondhand personal property\legislative request report.do
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND 20850
Isiah Leggett
County Executive
MEMORANDUM
June 23, 2014
TO:
Craig Rice, President
Montgomery County Council
~
FROM:
SUBJECT:
Isiah Leggett, County
EXeCUtive..::..--...~:t~~--­
Decision Memorandum - Proposed Legislation to Amend County Code
Chapter 44A, Secondhand Personal Property
Transmitted for your review are proposed amendments to Chapter 44A,
Secondhand Personal Property.
The proposed amendments are intended to allow merchants to:
i)
"pay"
consumers for secondhand personal property with a store credit rather than only by
check; and
ii)
exclude specified secondhand personal property below a certain dollar
threshold from these regulations. There is no additional expected fiscal impact to
Montgomery County associated with these proposed amendments.
If you have any questions or would like any additional information, please
contact Eric Friedman, Director, Office of Consumer Protection, at (240) 777-3636.
ILiesf
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Fiscal Impact Statement
Legislation to Amend County Code Chapter 44A, Secondhand Personal Property
1. Legislation
Summary
The purpose ofthis code amendment
is
to respond to changes
in
the marketplace and to
address concerns expressed by retail
thrift
stores and national chain retailers. The
proposed amendments are intended to allow merchants to: i) "pay" consumers for
secondhand personal property with store credit rather than only by check;
ii)
exclude
certain items ofpersonal property that have a resale value below a certain dollar threshold
from the definition of secondhand personal property.
The proposed changes update the code for changes in the marketplace. The changes do
not affect the current duties or responsibilities ofthe Department ofPolice or Office of
Consumer Protection.
2.
An
estimate ofchanges in County revenues and expenditures regardless of whether the
revenues or expenditures are assumed in the recommended or approved budget. Incb.ules
source of information, assumptions,
and
methodologies used.
No impact on revenues or expenditures.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
No impact on revenues or expenditures.
4.
An
actuarial analysis through the entire amortization period for legislation that would
affect retiree pension or group insurance costs.
Not Applicable
5. Later actions that may affect future revenue
and
expenditures
if
the legislation authorizes
future· spending.
Not Applicable
6.
An
estimate of the staff time needed to implement the legisdlation.
The
staff
time for the Department of Police and Office of Consumer Protection to
disseminate information related to the changes to secondhand personal property dealers
would be minimal and can be accomplished online. .
7.
An
explanation ofhow the addition ofnew
staff
responsibilities would affect other duties.
The impact
will
be
minimal
as information related to changes
will
be disseminated online
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8.
An
estimate of costs when
an
additional appropriation is needed.
Not Applicable
9. A description ofany variable that could affect revenue and cost estimates.
Not Applicable
10. Ranges of revenue or expenditures
that
are, uncertain or difficult to project
Not Applicable
11.
If
legislation
is
likely
to
have no fiscal impact, why that, is the case.
Not Applicable
12.
Other fiscal impacts Qr comments.
None
13.
The following contributed to and concurred
with this
analysis (enter
name
and dept.)
Eric Friedman, Director, Office of Consmner Protection
Jahantab Siddiqui, Management
&
Budget Specialist, OMB
JenniferHughes,IDirector
Office
ofManagement and Budget
Date
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Economic Impact Statement
BiU ##-14, Amending The Definition Of Secondhand Personal Property
And Allowing Payment
By
Store Credit .
. Background:
This legislation would amend Sections
44A·l
and
44A·9
of the County Code to allow
merchants to:
'
• Pay consumers for secondhand. personal property with store credit. The current
law only allows payment by check as permitted under current regulation (Section
44A-9);
• Exempt certain items of personal property that have
a
resale va]ue below a certain
dollar threshold from the definition of secondhand personal property (Section
44A-I).
1. The sources of information, assumptions, and methodologies used.
The source of information in preparation of the economic impact statement is the
Office of Consumer Protection (OCP). .
2. A
description of any variable that could affect the economic impact estimates.
Bill ##-14 amends two sections of Chapter 44A - Secondhand Personal Property that
define the value of secondhand personal property under Chapter 44A and allows store
credit as payment to customers. Therefore, there are no economic variables that are
affected by the amendments to Chapter
44A.
3.
The BUI's positive or negative effect, if any on employment, spending, saving,
investment, incomes, and property values in the County.
Bill ##-14 would have no economic impact on employment, spending, saving.
investment, incomes. and property values in the County.
Bill
##-14 allows payment
as
store credit
as well as
the current policy of
payment by check.
Therefore
Bill
##­
14
has no
affect
on business or personal income.
4.
If
a Bill
is
likely to have no economic impact, why is that the case?
Please see paragraph #3.
5. The following contributed to or concurred with this analysis: David Platt and Rob
Hagedoom, Finance; Eric Friedman, Director, Office of Consumer Protection.
Page 1 of
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DEPARTMENT OF POLICE
Isiah Leggett
County Executive
J.
Thomas Manger
ChiefofPolice
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An
MEMORANDUM
August 13,2014
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TO:
FROM:
SUBJECT:
The Honorable Craig Rice, President
Montgomery County Council
J. Thomas Manger
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Chief of Police
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The purpose of this communication is to express my support-and that of Consumer
Protection Director Eric Friedman-for
bill
38-14, "Secondhand Personal Property - Definitions­
Payment."
Bill 38-14 was written in an effort to accommodate the request of the business
community, specifically secondhand-property owners and big-box stores, while still meeting the
enforcement and reporting needs to safely defend the community. The current law's original intent was
to help police stop criminals who were selling stolen merchandise to pawn shops in exchange for cash. In
order to make it harder for the criminal element, Chapter 44A was written so that payments made to the
seller had to be in the form of a check, which would allow the police an opportunity to identity the person
responsible for selling stolen items.
Changing the definition of secondhand personal property would alleviate the burden on
dealers from having to report every single item that they take in. Dealers would have fewer items to enter
into the pawn-tracking software and the police department would be able to expedite the amount of time it
takes to review all transactions and compare them to stolen items.
Nationally, large and small retail stores have policies that allow their customers to bring
in older electronic items and have them applied towards a new item. These stores also have the abil ity for
customers to return items for store credit or a gift card. According to the retail industry, they have the
abiJity
to
track the identity of the person to whom a gift card or store credit is issued, thus providing the
police department with an acceptabJe paper
trail
to be able to launch a criminal investigation should the
need arise.
The laws governing secondhand personal property are over 30 years old. BiB 38-14
would have little to no implication on how the police department is able
to
track these transactions.
Therefore, I urge you and the Montgomery County Council to pass this legislation.
JTM:mam
c: Eric Friedman, Director/Consumer Protection
Office of the Chief of Police
Public Safety Headquarters· 100 Edison Park Drive· Gaithersburg, Maryland 20878
www.montgomerycountymd.gov • www.mymcpnews.com • MCPDCbief@montgomerycountymd.gov
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