CHAPTER
4. Pawnbroker Education Act
21400.
This chapter shall be known, and may be cited, as the Pawnbroker Education Act. 21401.
The Legislature finds and declares all of the following:(a) Pawnbroker businesses provide a valuable source of short-term credit for economically vulnerable consumers and the state’s unbanked population, as everyone who seeks a pawn loan can borrow money regardless of creditworthiness.
(b) Individuals who use pawnbroker loans in this state use those loans for, among other things, paying for the necessities of life.
(c) The Legislature recognizes that education for licensed pawnbrokers, as defined in this chapter, will ensure the highest standards of conduct and compliance with state and federal laws applicable to pawnbroker
businesses.
(d) In order to continuously improve the competence of licensed pawnbrokers, the Legislature encourages all licensees to regularly engage in continuing education related to the profession, as defined in this chapter.
21403.
(a) The California Pawnbroker Education Council is hereby established to carry out the responsibilities and duties described in this chapter.(b) The council shall be governed by a board of directors composed of, but not limited to, members who shall be chosen in the following manner:
(1) One member shall be a representative of the California Police Chiefs Association or California State Sheriffs’ Association, unless those entities choose not to appoint a member to the council.
(2) One member shall be appointed by the Secondhand Dealer and Pawnbroker Unit of the Department of Justice, unless the department chooses
not to appoint a member to the council.
(3) Four members shall be licensed pawnbrokers who are California residents selected by a professional society, association, or other entity, the membership of which is composed of licensed pawnbrokers. The professional society, association, or other entity shall have a dues-paying membership in California of at least 200 individuals, have been established in or before 2000, and have bylaws that require its members to comply with a code of ethics.
(4) One member shall be a licensed attorney who is a California resident selected by a professional society, association, or other entity described in paragraph (3).
(c) Each member of the board of directors shall serve a term of two years.
(d) The council may take any
reasonable actions necessary to carry out the responsibilities and duties set forth in this chapter, including, but not limited to, hiring staff, entering into contracts, and developing policies, procedures, rules, and bylaws to implement this chapter.
(e) The council may establish fees sufficient to support the functions of the council and to cover the reasonable regulatory cost of administering this chapter.
21405.
(a) The council shall develop and establish a standard course and curriculum in pawnbroker transactions that shall include at least eight hours of prelicensing education, and eight hours of continuing education to be taken by an applicant for licensure or a licensee, or their designated representative.(b) The curriculum established by the council shall meet minimum standards for education in the following areas:
(1) Compliance with federal laws applicable to the pawnbroker business, including, but not limited to, bankruptcy, search and seizure, anti-money laundering, and lending laws.
(2) Compliance with state laws
applicable to the pawnbroker business (Division 8 (commencing with Section 21000)) and the reporting requirements imposed upon secondhand dealers pursuant to Article 4 (commencing with Section 21625) of Chapter 9 of Division 8 of the Business and Professions Code.
(c) The curriculum may include any other training that the council deems to be relevant to the efficient and lawful operation of a pawnbroker business.
21407.
(a) Individuals, entities, agencies, and associations that propose to offer educational courses that satisfy the prelicensing or continuing education requirements of this chapter shall apply for and obtain the approval of the council.(b) The council shall develop policies, procedures, rules, or bylaws governing the requirements described in this chapter and the process for applying to become, approving, denying the approval of, imposing correction action upon, or withdrawing the approval of, an educational course provider. These policies, procedures, rules, or bylaws shall address topics including, but not limited to, what constitutes an acceptable curriculum and facility requirements.
21409.
(a) The council shall issue a certificate to an applicant for a pawnbroker license, or a licensee applying for renewal of a pawnbroker license, who has satisfied the educational requirements of this chapter.(b) The council shall maintain records verifying completion of the initial prelicensing education and continuing education for a period of not less than two years.