Bill Text: CA AB1357 | 2009-2010 | Regular Session | Enrolled
Bill Title: Pawnbrokers.
Spectrum: Bipartisan Bill
Status: (Vetoed) 2010-01-14 - Consideration of Governor's veto stricken from file. [AB1357 Detail]
Download: California-2009-AB1357-Enrolled.html
BILL NUMBER: AB 1357 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 2, 2009
PASSED THE ASSEMBLY MAY 11, 2009
INTRODUCED BY Assembly Member Coto
(Coauthor: Assembly Member Torres)
(Coauthors: Senators Harman and Walters)
FEBRUARY 27, 2009
An act to amend Section 21200 of the Financial Code, relating to
pawnbrokers.
LEGISLATIVE COUNSEL'S DIGEST
AB 1357, Coto. Pawnbrokers.
Existing law prohibits a pawnbroker from charging or receiving
compensation at a rate exceeding 2.5% per month on that portion of
the unpaid principal balance of any loan up to, including, but not in
excess of $225. For other loan amounts, existing law prohibits a
pawnbroker from charging or receiving compensation at a rate
exceeding specified amounts based upon the unpaid principal balance
of the loan. A knowing violation of the laws regulating pawnbrokers
is a crime.
This bill would revise these limits on pawnbroker compensation and
would instead prohibit a pawnbroker from charging or receiving
compensation at a rate exceeding 2.5% per month on the unpaid
principal balance of any loan.
Because a knowing violation of this bill's provisions would be a
crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 21200 of the Financial Code is amended to read:
21200. (a) Except as otherwise provided in this chapter, no
pawnbroker shall charge or receive compensation at a rate exceeding
the sum of the following:
(1) Two and one-half percent per month on the unpaid principal
balance of any loan.
(2) A charge not exceeding three dollars ($3) a month on any loan
when the monthly charge permitted by this section would otherwise be
less than that minimum charge.
(b) One month's interest may be charged for any part of the month
in which pawned property is redeemed.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
