How Do Pawn Shops Deal with Stolen Goods?

Governor Signs AB 391: Statewide Digital Database
California Assemblymember Dr. Richard Pan (D-Sacramento), Law Enforcement,
California Pawnbrokers Association Join to Solve Crimes

SACRAMENTO – Governor Jerry Brown has signed into law AB 391, a bill authored by Dr. Richard Pan (D-Sacramento) that will create a statewide partnership to build an online reporting system allowing law enforcement, pawnbrokers and secondhand dealers to work together to follow items sold or used as collateral. The California Pawnbrokers Association (CAPA), in cooperation with various state and local law enforcement agencies, acknowledges the legislative accomplishment of Assemblyman Pan for working to make AB 391 law.

AB 391 mandates that the single Online Statewide Digital Database be funded through pawnbroker and secondhand dealer licensing fees. The California Department of Justice will be responsible for creating and administering the online database. Rather than providing paper transaction reports as is now the practice, the new system will report transactions electronically the same day that they occur.

“This has been a very difficult 12-year legislative effort that has finally been enacted,” said CAPA Board Member, Stan Lukowicz, owner of Capitol City Loan pawn shops in Sacramento. “Pawnbrokers and secondhand dealers will now be able to report our transactions in an electronic format that saves our industry the unnecessary costs associated with the paper reporting, while at the same time providing law enforcement with an efficient means to combat property crime.” Lukowicz added, “Even in these difficult economic times, CAPA is pleased to do our part in this effort.”

Currently, all secondhand dealers, pawnbrokers and coin and antique dealers are required to report transactions to law enforcement in an effort to dissuade any type of illegal activity. However, reduced funding to law enforcement has created transaction backlogs making it difficult for agencies to enforce laws already on the books. The single Statewide Digital Database will provide multi-jurisdictional law enforcement agencies with a vital tool to combat transaction paperwork backlogs as well as pinpoint any illegal transactions that may have occurred.

For more information about CAPA, visit

This Is How We Do It

The pawn industry has a very looooong history, believed to have originated in China over 3000 years ago. Over time, a somewhat negative view has been held by the public, although the television show “Pawn Stars” has helped in trying to change the perception (thank you!).

Many people don’t understand the way that the pawn industry works, and most are fascinated when we explain how we operate. Our business is really 3-fold – we provide an easy way for people to get quick cash that they need, we are willing to buy items that people want to get rid of, and we are a retail establishment where customers can purchase quality items (both new and slightly used) at a fraction of the price of other retailers. Which means that we get some REALLY cool stuff in our stores at some fantastic prices!

Keep tuning in to our blog as we answer more questions to give you a better idea of what we provide, and why when you are looking to make a big purchase, Capital City Loan & Jewelry is the first place you should look.