Bill Text: CA SB1198 | 2023-2024 | Regular Session | Enrolled
Bill Title: Pawnbrokers: fees and charges.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Enrolled) 2024-08-13 - Enrolled and presented to the Governor at 2 p.m. [SB1198 Detail]
Download: California-2023-SB1198-Enrolled.html
|
Enrolled
August 09, 2024 |
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Passed
IN
Senate
May 02, 2024 |
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Passed
IN
Assembly
August 08, 2024 |
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Amended
IN
Senate
April 08, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1198
| Introduced by Senator Roth |
February 15, 2024 |
An act to amend Sections 21200.6 and 21201.2 of, and to amend and renumber Section 21200.9 of, and to add Section 21200.9 to, the Financial Code, relating to pawnbrokers.
LEGISLATIVE COUNSEL'S DIGEST
SB 1198, Roth.
Pawnbrokers: fees and charges.
Existing law regulates the activities of pawnbrokers and makes a violation of these provisions a misdemeanor, as specified. Existing law authorizes the district attorney or the Attorney General, in the name of the people of the State of California, to bring an action to enjoin the violation or the threatened violation of a regulation made pertaining to certain provisions regulating pawnbrokers. Existing law authorizes a pawnbroker to collect a handling and storage charge for pawned articles at the time property is redeemed or a replacement loan is issued. Existing law establishes the maximum amount that may be charged based on the size of pawned articles, as specified.
This bill would additionally authorize a pawnbroker to collect a
security charge and would increase the permitted handling, storage, and security charges depending on the size of the pawned articles, as specified. The bill would authorize a pawnbroker, in addition to other allowed charges, to collect a remote transaction fee, as specified.
Existing law permits a pawnbroker to charge a fee in the amount of up to $5 for services and costs pertaining to preparation of a 10-day notice when a pledged item is not redeemed during the loan period.
This bill would expand the services and costs for which the above-described noticing fee may be charged to include the mailing or electronic transmission of the notice, and would increase the maximum amount of the fee to $7.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 21200.6 of the Financial Code is amended to read:21200.6.
(a) In addition to other allowed charges, at the time property is redeemed or a replacement loan is issued pursuant to Section 21201.5, the pawnbroker may collect a handling, storage, and security charge for pawned articles. The maximum amount that may be charged pursuant to this section is in accordance with the following schedule:(1) Five dollars ($5) or 2.5 percent of the loan amount for any article that can be contained within one cubic foot.
(2) Ten dollars ($10) or 2.5 percent of the loan amount for any article that cannot be contained within one cubic foot, but can be contained within three cubic feet.
(3) Twenty dollars ($20) or 2.5 percent of the loan amount for any article that cannot be contained within three cubic feet, but can be contained within six cubic feet.
(4) Thirty dollars ($30) or 2.5 percent of the loan amount for any article that cannot be contained within six cubic feet and five dollars ($5) for each additional cubic foot in excess of six cubic feet.
(b) For purposes of this section, cubic feet shall be determined by multiplying the width of an article, at its greatest width, by the depth of an article, at its greatest depth, by the height of an article, at its greatest height.
