(a) When any person sells property to a buyer or dealer subject to § 38-1-201, the buyer or dealer shall obtain and record the information provided for in § 38-1-203 and obtain a statement of the seller that the seller is the lawful owner of the item, and shall have the record signed by the seller. This record shall be made available to any law enforcement agency or officer upon request.

(b)

(1) The party asserting ownership of any property that the party alleges is stolen and that is in the possession of a buyer or dealer subject to § 38-1-201 may recover the property by making a report to any law enforcement agency in the county or municipality in which the property is located and providing the law enforcement agency with proof of ownership of the property; provided, that a report of the theft of the property was made to the proper authorities within twenty (20) days after obtaining knowledge of the theft or loss; and provided, further, that the party asserting ownership will assist in the prosecution of the seller of the item. Upon the receipt of proof of ownership, an officer of a law enforcement agency in the county or municipality in which the property is located shall recover the property from the buyer or dealer, without expense to the rightful owner of the property, unless the buyer or dealer presents evidence of having received proof of ownership of the property by the seller. Any property recovered from a buyer or dealer subject to § 38-1-201 shall be returned to the rightful owner of the property, subject to evidence in any criminal proceeding.

(2) In the event that the party asserting ownership of the property has provided a timely report of the theft or loss of the property, and the buyer or dealer presents acceptable evidence to the law enforcement agency of having received proper proof of ownership from the seller of the property, then and only then shall the law enforcement agency have satisfied its processes, duties and responsibilities. It shall then inform the party alleging ownership that it will be necessary for that person to commence an appropriate civil action for the return of the property within thirty (30) days of receiving the notice. If the buyer or dealer is ordered to return the property pursuant to such civil action, then the court shall also order that the buyer or dealer pay all litigation costs and reasonable attorneys' fees. The buyer or dealer shall not be required to surrender the property to any law enforcement officer or agency or any other person absent an appropriate warrant.

(3) If for any reason after the local authorities have seized certain property and are unable to locate the rightful owner of the property after due diligence, then the property may be returned to the buyer or dealer upon the buyer or dealer executing a hold-harmless agreement to the local authorities pursuant to title 40, chapter 33.