California Pawnbrokers want to put Ebay out of Business

The San Francisco Chronicle reports:

California residents who sell goods on eBay could have to pay a $295 fee and be regulated in the same way as pawnbrokers under legislation designed to crack down on the sale of stolen property.

The legislation being pushed by the state's 700 pawnbrokers would replace a cumbersome paper-based system of reporting transactions of secondhand-property sales to local law enforcement with a statewide electronic database paid for by dealers.

Opponents say the bill would impose needless requirements on consignment stores, auctioneers, eBay trading assistants and the drop-off centers sprouting up to help consumers sell items on the Internet.

Creation of the database is backed by the state Department of Justice, which would run the database, as well as several law enforcement agencies, including the California State Sheriffs' Association. This is the third attempt by supporters to pass such a measure, and although both previous efforts had law enforcement support, many backers of the legislation believe a few new provisions this time around could carry the day.

This is a classic attempt to restrain trade.