Bill Text: FL H1323 | 2011 | Regular Session | Introduced

Bill Title: Pawnbroker and Secondhand Dealer Transactions

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H1323 Detail]

Download: Florida-2011-H1323-Introduced.html
HB 1323

A bill to be entitled
2An act relating to pawnbroker and secondhand dealer
3transactions; amending s. 538.03, F.S.; revising
4definitions; transferring regulation of secondhand dealers
5from the Department of Revenue to the Department of
6Agriculture and Consumer Services; amending s. 538.04,
7F.S.; revising recordkeeping requirements for secondhand
8dealer transactions; revising requirements for contents
9and electronic transfer of secondhand dealer transaction
10forms; requiring secondhand dealers to transfer certain
11information to a statewide central database within a
12specified period; authorizing certain electronic records
13to be used as evidence under certain circumstances;
14amending s. 538.05, F.S.; conforming provisions; amending
15s. 538.06, F.S.; revising the period for which secondhand
16dealers must maintain transaction records; amending s.
17538.09, F.S.; revising registration and renewal fees for
18secondhand dealers; providing for prior notice of fee
19adjustments; deleting provisions for the transfer of
20certain funds; conforming provisions; amending s. 538.11,
21F.S.; revising powers and duties of the Department of
22Agriculture and Consumer Services; conforming provisions;
23amending s. 539.001, F.S.; dividing the Florida
24Pawnbroking Act into multiple sections; revising
25registration and renewal fees for pawnbrokers; providing
26for prior notice of fee adjustments; revising
27recordkeeping requirements for pawnbrokers; revising
28requirements for contents and electronic transfer of
29pawnbroker transaction forms; requiring pawnbrokers to
30transfer certain information to a statewide central
31database within a specified period; conforming provisions;
32creating s. 539.109, F.S.; establishing a statewide
33central database of pawnbroker and secondhand dealer
34transactions; providing for the required elements, design,
35and infrastructure of the database; requiring the
36department to contract for the creation and maintenance of
37the database; limiting the financial and operating
38interests of certain database contractors; creating an
39oversight board for the database; providing for membership
40and duties of the oversight board; prohibiting law
41enforcement agencies and their agents from being charged
42fees for accessing or using the database; providing an
43effective date.
45Be It Enacted by the Legislature of the State of Florida:
47     Section 1.  Subsection (1) of section 538.03, Florida
48Statutes, is amended to read:
49     538.03  Definitions; applicability.-
50     (1)  As used in this part, the term:
51     (a)(e)  "Acquire" means to obtain by purchase, consignment,
52or trade.
53     (b)(d)  "Consignment shop" means a shop engaging in the
54business of accepting for sale, on consignment, secondhand goods
55which, having once been used or transferred from the
56manufacturer to the dealer, are then received into the
57possession of a third party.
58     (c)(i)  "Department" means the Department of Agriculture
59and Consumer Services Revenue.
60     (d)(h)  "Precious metals" means any item containing any
61gold, silver, or platinum, or any combination thereof, excluding
62any chemical or any automotive, photographic, electrical,
63medical, or dental materials or electronic parts.
64     (e)(b)  "Precious metals dealer" means a secondhand dealer
65who normally or regularly engages in the business of buying used
66precious metals for resale. The term does not include those
67persons involved in the bulk sale of precious metals from one
68secondhand or precious metals dealer to another.
69     (f)(a)  "Secondhand dealer" means any person, corporation,
70or other business organization or entity that which is not a
71secondary metals recycler subject to part II and which is
72engaged in the business of purchasing, consigning, or trading
73secondhand goods.
74     (g)(f)  "Secondhand goods" means personal property
75previously owned or used, which is not regulated metals property
76regulated under part II and which is purchased, consigned, or
77traded as used property. The term does Such secondhand goods do
78not include office furniture, pianos, books, clothing, organs,
79coins, motor vehicles, costume jewelry, cardio and strength
80training or conditioning equipment designed primarily for indoor
81use, and secondhand sports equipment that is not permanently
82labeled with a serial number. For purposes of this paragraph,
83the term "secondhand sports equipment" does not include golf
85     (h)(c)  "Secondhand store" means the place or premises at
86which a secondhand dealer is registered to conduct business as a
87secondhand dealer or conducts business.
88     (i)(g)  "Transaction" means any purchase, consignment, or
89trade of secondhand goods by a secondhand dealer.
90     Section 2.  Subsections (1), (6), and (7) of section
91538.04, Florida Statutes, are amended to read:
92     538.04  Recordkeeping requirements; penalties.-
93     (1)  A secondhand dealer must dealers shall complete a
94secondhand dealer dealers transaction form at the time of the
95actual transaction. A secondhand dealer must shall maintain a
96copy of a completed transaction form for at least 3 years, and
97maintain such copy on the registered premises for at least 1
98year, after the date of the transaction. Each transaction form
99must However, the secondhand dealer shall maintain a copy of the
100transaction form for not less than 3 years. Unless other
101arrangements have been agreed upon by the secondhand dealer and
102the appropriate law enforcement agency, the secondhand dealer
103shall, within 24 hours after the acquisition of any secondhand
104goods, deliver to the police department of the municipality
105where the goods were acquired or, if the goods were acquired
106outside of a municipality, to the sheriff's department of the
107county where the goods were acquired, a record of the
108transaction on a form approved by the Department of Law
109Enforcement. Such record shall contain:
110     (a)  The time, date, and place of the transaction.
111     (b)  A complete and accurate description of the goods
112acquired, including the following information, if applicable:
113     1.  Brand name.
114     2.  Model number.
115     3.  Manufacturer's serial number.
116     4.  Size.
117     5.  Color, as apparent to the untrained eye.
118     6.  Precious metal type, weight, and content if known.
119     7.  Gemstone description, including the number of stones,
120if applicable.
121     8.  In the case of firearms, the type of action, caliber or
122gauge, number of barrels, barrel length, and finish.
123     9.  Any other unique identifying marks, numbers, or
125     10.  A digital color photograph of the goods in the
126condition acquired.
127     (c)  A description of the person from whom the goods are
128were acquired, including:
129     1.  Full name, current residential address, workplace, and
130home and work phone numbers.
131     2.  Height, weight, date of birth, race, gender, hair
132color, eye color, and any other identifying marks.
133     3.  The right thumbprint, free of smudges and smears, of
134the person from whom the goods are were acquired.
135     4.  A digital color photograph of the person from whom the
136goods are acquired. Such photograph must be a full-face, close-
137up in which the person is not wearing a hat, sunglasses,
138eyeglasses, or other article or item that obscures the person's
140     (d)  Any other information required by the form approved by
141the department of Law Enforcement.
142     (6)  If the appropriate law enforcement agency supplies A
143secondhand dealer must, by noon of each business day, with
144appropriate software and the secondhand dealer has computer
145capability, secondhand dealer transactions shall be
146electronically transfer to the statewide central database
147established under s. 539.109 each transaction completed during
148the previous business day transferred. If a secondhand dealer
149does not have computer capability, the appropriate law
150enforcement agency may provide the secondhand dealer with a
151computer and all necessary equipment for the purpose of
152electronically transferring secondhand dealer transactions. The
153appropriate law enforcement agency shall retain ownership of the
154computer, unless otherwise agreed upon. The secondhand dealer
155shall maintain the computer in good working order, ordinary wear
156and tear excepted. If the secondhand dealer transfers secondhand
157dealer transactions electronically, The secondhand dealer is not
158required to also deliver to the appropriate law enforcement
159agency the original or copies of any the secondhand dealer
160transaction form transferred to the statewide central database
161forms. For the purpose of a criminal investigation, the
162appropriate law enforcement agency may request that the
163secondhand dealer produce an original of a transaction form that
164is has been electronically transferred. The secondhand dealer
165must shall deliver this form to the appropriate law enforcement
166agency within 24 hours after the request.
167     (7)  If the original transaction form is lost or destroyed
168by the appropriate law enforcement agency, a copy or electronic
169record of the transaction from the statewide central database
170may be used by the secondhand dealer as evidence in court. When
171an electronic image of a customer's identification is accepted
172for a transaction, the secondhand dealer must maintain the
173electronic image in order to meet the recordkeeping requirements
174applicable to the original transaction form. If a criminal
175investigation occurs, the secondhand dealer shall, upon request,
176provide a clear and legible copy of the image to the appropriate
177law enforcement agency.
178     Section 3.  Subsection (1) of section 538.05, Florida
179Statutes, is amended to read:
180     538.05  Inspection of records and premises of secondhand
182     (1)  The entire registered premises and required records of
183each secondhand dealer are subject to inspection during regular
184business hours by the department or any law enforcement officer
185having jurisdiction.
186     Section 4.  Subsection (5) of section 538.06, Florida
187Statutes, is amended to read:
188     538.06  Holding period.-
189     (5)  All dealers in secondhand property regulated by this
190chapter shall maintain transaction records for 1 year 3 years.
191     Section 5.  Section 538.09, Florida Statutes, is amended to
193     538.09  Registration.-
194     (1)(a)  A secondhand dealer may shall not engage in the
195business of purchasing, consigning, or trading secondhand goods
196from any location without registering with the department of
198     (b)  A secondhand dealer, upon registering, must pay a
199registration fee prescribed by the department not to exceed $300
200per location. The secondhand dealer must also pay on October 1
201of each year a renewal fee prescribed by the department not to
202exceed the amount assessed per location according to the
203following schedule:
204     1.  One thousand three hundred dollars for each location
205that conducts more than 500 transactions per month.
206     2.  Eight hundred dollars for each location that conducts
207at least 101, but not more than 500, transactions per month.
208     3.  Three hundred dollars for each location that conducts
209100 or fewer transactions per month.
211The registration and renewal fees imposed under this paragraph
212may not exceed the actual costs of processing transactions and
213the department's related expenses of administering this part.
214The department shall annually review the fees and, if necessary,
215adjust the amount of the fees. The department must notify
216registered secondhand dealers in writing at least 30 days before
217any fee adjustment.
218     (c)  A fee equal to the federal and state costs for
219processing required fingerprints must be submitted to the
220department with each application for registration. One
221application is required for each dealer. If a secondhand dealer
222is the owner of more than one secondhand store location, the
223application must list each location, and the department shall
224issue a duplicate registration for each location. For purposes
225of subsections (4) and (5) of this section, these duplicate
226registrations are shall be deemed individual registrations. A
227dealer shall pay a fee of $6 per location at the time of
228registration and an annual renewal fee of $6 per location on
229October 1 of each year. All fees collected, less costs of
230administration, shall be transferred into the Operations Trust
232     (d)  The department of Revenue shall forward the full set
233of fingerprints to the Department of Law Enforcement for state
234and federal processing, if provided the federal service is
235available, to be processed for any criminal justice information
236as defined in s. 943.045. The department shall remit the cost of
237processing such fingerprints shall be payable to the Department
238of Law Enforcement by the department of Revenue.
239     (e)  The department may issue a temporary registration to
240each location pending completion of the background check by
241state and federal law enforcement agencies, but shall revoke
242such temporary registration if the completed background check
243reveals a prohibited criminal background.
244     (f)1.  An applicant for a secondhand dealer registration
245must be a natural person who has reached the age of 18 years.
246     2.(a)  If the applicant is a partnership, all the partners
247must apply.
248     3.(b)  If the applicant is a joint venture, association, or
249other noncorporate entity, all members of such joint venture,
250association, or other noncorporate entity must make application
251for registration as natural persons.
252     4.(c)  If the applicant is a corporation, the registration
253must include the name and address of such corporation's
254registered agent for service of process in the state and a
255certified copy of statement from the Secretary of State that the
256corporation is duly organized in the state or, if the
257corporation is organized in a state other than Florida, a
258certified copy of statement from the Secretary of State that the
259corporation is duly qualified to do business in this state. If
260the dealer has more than one location, the application must list
261each location owned by the same legal entity and the department
262shall issue a duplicate registration for each location.
263     (2)  The secondhand dealer must shall furnish with her or
264his registration a complete set of her or his fingerprints,
265certified by an authorized law enforcement officer, and a recent
266full-face fullface photographic identification card of herself
267or himself. The Department of Law Enforcement shall report its
268findings to the department of Revenue within 30 days after the
269date fingerprint cards are submitted for criminal justice
271     (3)  The secondhand dealer's registration must shall be
272conspicuously displayed at her or his registered location. A
273secondhand dealer must hold secondhand goods at the registered
274location until 15 days after the secondhand transaction or until
275any extension of the holding period has expired, whichever is
277     (4)  The department may impose a civil fine of up to
278$10,000 for each violation of this section, which fine shall be
279transferred into the General Revenue Fund. If the fine is not
280paid within 60 days, the department may bring a civil action
281under s. 120.69 to recover the fine.
282     (5)  In addition to the fine provided in subsection (4),
283registration under this section may be denied or any
284registration granted may be revoked, restricted, or suspended by
285the department if the department determines that the applicant
286or registrant:
287     (a)  Has violated any provision of this chapter or any rule
288or order made pursuant to this chapter;
289     (b)  Has made a material false statement in the application
290for registration;
291     (c)  Has been guilty of a fraudulent act in connection with
292any purchase or sale or has been or is engaged in or is about to
293engage in any practice, purchase, or sale which is fraudulent or
294in violation of the law;
295     (d)  Has made a misrepresentation or false statement to, or
296concealed any essential or material fact from, any person in
297making any purchase or sale;
298     (e)  Is making purchases or sales through any business
299associate not registered in compliance with the provisions of
300this chapter;
301     (f)  Has, within the preceding 10-year period for new
302registrants who apply for registration on or after October 1,
3032006, been convicted of, or has entered a plea of guilty or nolo
304contendere to, or had adjudication withheld for, a crime against
305the laws of this state or any other state or of the United
306States which relates to registration as a secondhand dealer or
307which involves theft, larceny, dealing in stolen property,
308receiving stolen property, burglary, embezzlement, obtaining
309property by false pretenses, possession of altered property, any
310felony drug offense, any violation of s. 812.015, or any
311fraudulent dealing;
312     (g)  Has had a final judgment entered against her or him in
313a civil action upon grounds of fraud, embezzlement,
314misrepresentation, or deceit; or
315     (h)  Has failed to pay any sales tax owed to the Department
316of Revenue.
318In the event the department determines to deny an application or
319revoke a registration, it shall enter a final order with its
320findings on the register of secondhand dealers and their
321business associates, if any; and denial, suspension, or
322revocation of the registration of a secondhand dealer shall also
323deny, suspend, or revoke the registration of such secondhand
324dealer's business associates.
325     (6)  Upon the request of a law enforcement official, the
326department of Revenue shall release to the official the name and
327address of any secondhand dealer registered to do business
328within the official's jurisdiction.
329     Section 6.  Section 538.11, Florida Statutes, is amended to
331     538.11  Powers and duties of department; rules.-The same
332duties and privileges imposed by chapter 539 212 upon  
333pawnbrokers dealers of tangible personal property respecting the
334keeping of books and records and accounts and compliance with
335rules of the department shall apply to and be binding upon all
336persons who are subject to the provisions of this chapter. The
337department shall administer, collect, and enforce the
338registration authorized under this chapter pursuant to the same
339procedures used in the licensure administration, collection, and
340enforcement of pawnbrokers the general state sales tax imposed
341under chapter 539 212, except as provided in this section. The
342provisions of chapter 212 regarding the keeping of records and
343books shall apply. The department is authorized to employ
344persons and incur other expenses for which funds are
345appropriated by the Legislature. The department is empowered to
346adopt such rules, and shall prescribe and publish such forms, as
347may be necessary to effectuate the purposes of this chapter. The
348Legislature hereby finds that the failure to promptly implement
349the provisions of this chapter would present an immediate threat
350to the welfare of the state. Therefore, the executive director
351of the department is hereby authorized to adopt emergency rules
352pursuant to s. 120.54(4), for purposes of implementing this
353chapter. Notwithstanding any other provision of law, such
354emergency rules shall remain effective for 6 months from the
355date of adoption. Other rules of the department related to and
356in furtherance of the orderly implementation of the chapter
357shall not be subject to a rule challenge under s. 120.56(2) or a
358drawout proceeding under s. 120.54(3)(c)2. but, once adopted,
359shall be subject to an invalidity challenge under s. 120.56(3).
360Such rules shall be adopted by the department Governor and
361Cabinet and shall become effective upon filing with the
362Department of State, notwithstanding the provisions of s.
364     Section 7.  Section 539.001, Florida Statutes, is amended
365to read:
366     539.101 539.001  Short title The Florida Pawnbroking Act.-
367     (1)  SHORT TITLE.-This chapter section may be cited as the
368"Florida Pawnbroking Act."
369     539.103  Definitions.-
370     (2)  DEFINITIONS.-As used in this chapter section, the
372     (1)(r)  "Amount financed" is used interchangeably to mean
373the same as "amount of money advanced" or "principal amount".
374     (2)(b)  "Appropriate law enforcement official" means the
375sheriff of the county in which a pawnshop is located or, in case
376of a pawnshop located within a municipality, the police chief of
377the municipality in which the pawnshop is located; however, any
378sheriff or police chief may designate as the appropriate law
379enforcement official for the county or municipality, as
380applicable, any law enforcement officer working within the
381county or municipality headed by that sheriff or police chief.
382Nothing in This subsection does not limit limits the power and
383responsibilities of the sheriff.
384     (3)(t)  "Beneficial owner" means a person who does not have
385title to property but has rights in the property which are the
386normal incident of owning the property.
387     (4)(c)  "Claimant" means a person who claims that his or
388her property was misappropriated.
389     (5)(d)  "Conveying customer" means a person who delivers
390property into the custody of a pawnbroker, either by pawn, sale,
391consignment, or trade.
392     (6)(s)  "Default date" means that date upon which the
393pledgor's right of redemption expires and absolute right, title,
394and interest in and to the pledged goods shall vest in and shall
395be deemed conveyed to the pawnbroker by operation of law.
396     (7)(a)  "Department" "Agency" means the Department of
397Agriculture and Consumer Services.
398     (8)(e)  "Identification" means a government-issued
399photographic identification or an electronic image taken from a
400government-issued photographic identification.
401     (9)(f)  "Misappropriated" means stolen, embezzled,
402converted, or otherwise wrongfully appropriated against the will
403of the rightful owner.
404     (10)(g)  "Net worth" means total assets less total
406     (11)(u)  "Operator" means a person who has charge of a
407corporation or company and has control of its business, or of
408its branch establishments, divisions, or departments, and who is
409vested with a certain amount of discretion and independent
411     (12)(h)  "Pawn" means any advancement of funds on the
412security of pledged goods on condition that the pledged goods
413are left in the possession of the pawnbroker for the duration of
414the pawn and may be redeemed by the pledgor on the terms and
415conditions contained in this chapter section.
416     (13)(i)  "Pawnbroker" means any person who is engaged in
417the business of making pawns; who makes a public display
418containing the term "pawn," "pawnbroker," or "pawnshop" or any
419derivative thereof; or who publicly displays a sign or symbol
420historically identified with pawns. A pawnbroker may also engage
421in the business of purchasing goods which includes consignment
422and trade.
423     (14)(j)  "Pawnbroker transaction form" means the instrument
424on which a pawnbroker records pawns and purchases as provided in
425s. 539.109 subsection (8).
426     (15)(k)  "Pawn service charge" means a charge for
427investigating the title, storage, and insuring of the security;
428closing the transaction; making daily reports to appropriate law
429enforcement officials; expenses and losses; and all other
431     (16)(l)  "Pawnshop" means the location at which a
432pawnbroker conducts business.
433     (17)(m)  "Permitted vendor" means a vendor who furnishes a
434pawnbroker with an invoice specifying the vendor's name and
435address, the date of the sale, a description of the items sold,
436and the sales price, and who has an established place of
437business, or, in the case of a secondhand dealer as defined in
438s. 538.03, has represented in writing that such dealer has
439complied with all applicable recordkeeping, reporting, and
440retention requirements pertaining to goods sold or otherwise
441delivered to a pawnbroker.
442     (18)(n)  "Person" means an individual, partnership,
443corporation, joint venture, trust, association, or other legal
445     (19)(o)  "Pledged goods" means tangible personal property
446that is deposited with, or otherwise delivered into the
447possession of a pawnbroker in connection with a pawn. "Pledged
448goods" does not include titles or any other form of written
449security in tangible property in lieu of actual physical
450possession, including, but not limited to, choses in action,
451securities, printed evidence of indebtedness, or certificates of
452title and other instruments evidencing title to separate items
453of property, including motor vehicles. For purposes of federal
454and state bankruptcy laws, a pledgor's interest in his or her
455pledged goods during the pendency of a pawn is a right of
456redemption only.
457     (20)(p)  "Pledgor" means an individual who delivers pledged
458goods into the possession of a pawnbroker in connection with a
460     (21)(q)  "Purchase" means the transfer and delivery of
461goods, by a person other than a permitted vendor, to a
462pawnbroker by acquisition for value, consignment, or trade for
463other goods.
464     539.105  Pawnbrokers; license required.-
465     (3)  LICENSE REQUIRED.-
466     (1)(a)  A person may not engage in business as a pawnbroker
467unless the person has a valid license issued by the department
468agency. A separate license is required for each pawnshop. The
469department agency must issue more than one license to a person
470if that person complies with the requirements for each license.
471     (b)  A licensee who seeks to move a pawnshop to another
472location must give 30 days' prior written notice to the
473department agency by certified or registered mail, return
474receipt requested, upon which and the department agency must
475then amend the license to indicate the new location. The
476licensee must also give such written notice to the appropriate
477law enforcement official.
478     (c)  Each license is valid for a period of 1 year unless it
479is earlier relinquished, suspended, or revoked. Each license
480must shall be renewed annually.
481     (2)  A pawnbroker, upon licensure, must and each licensee
482shall, initially and annually thereafter, pay to the agency a
483license fee prescribed by the department not to exceed $500. The
484pawnbroker must pay an annual renewal fee prescribed by the
485department not to exceed the amount assessed per location
486according to the following schedule: of $300 for each license
488     (a)  One thousand five hundred dollars for each location
489that conducts more than 1,000 transactions per month.
490     (b)  One thousand dollars for each location that conducts
491at least 151, but not more than 1,000, transactions per month.
492     (c)  Five hundred dollars for each location that conducts
493150 or fewer transactions per month.
495The license and renewal fees imposed under this subsection may
496not exceed the actual costs of processing transactions and the
497department's related expenses of administering this chapter. The
498department shall annually review the fees and, if necessary,
499adjust the amount of the fees. The department must notify
500licensed pawnbrokers in writing at least 30 days before any fee
502     (3)(a)(d)  The department agency may issue a temporary
503pawnbroker's license for the operation of a pawnshop either upon
504receipt of an application to transfer an existing license from
505one person to another or upon receipt of an application for a
506license involving principals and owners that are substantially
507identical to those of the existing licensee. The temporary
508license is effective until the permanent license is issued or
509denied by the department agency.
510     (b)(e)  A person must apply to the department agency for a
511new license or for a temporary license upon any change, directly
512or beneficially, in the ownership of any pawnshop. An
513application for a license or an application to transfer an
514existing license is not required upon any change, directly or
515beneficially, in the ownership of a pawnshop if one or more
516holders of at least 90 percent of the outstanding equity
517interest of the pawnshop before the change in ownership continue
518to hold at least 90 percent of the outstanding equity interest
519after the change in ownership.
520     (c)(f)  Any person applying for or renewing a local
521occupational license to engage in business as a pawnbroker must
522exhibit a current license from the department agency before the
523local occupational license may be issued or reissued.
525     (a)  To be eligible for a pawnbroker's license, an
526applicant must:
527     1.  Be of good moral character;
528     2.  Have a net worth of at least $50,000 or file with the
529department agency a bond issued by a surety company qualified to
530do business in this state in the amount of $10,000 for each
531license. In lieu of the bond required in this section, the
532applicant may establish a certificate of deposit or an
533irrevocable letter of credit in a Florida banking institution in
534the amount of the bond. The original bond, certificate of
535deposit, or letter of credit shall be filed with the department
536agency, and the department agency shall be the beneficiary to
537said document. The bond, certificate of deposit, or letter of
538credit shall be in favor of the department agency for the use
539and benefit of any consumer who is injured by the fraud,
540misrepresentation, breach of contract, financial failure, or
541violation of any provision of this chapter section by the
542pawnbroker. Such liability may be enforced either by proceeding
543in an administrative action or by filing a judicial suit at law
544in a court of competent jurisdiction. However, in such court
545suit, the bond, certificate of deposit, or letter of credit
546posted with the department agency shall not be amenable or
547subject to any judgment or other legal process issuing out of or
548from such court in connection with such lawsuit, but such bond,
549certificate of deposit, or letter of credit shall be amenable to
550and enforceable only by and through administrative proceedings
551before the department agency. It is the intent of the
552Legislature that such bond, certificate of deposit, or letter of
553credit shall be applicable and liable only for the payment of
554claims duly adjudicated by order of the department agency. The
555bond, certificate of deposit, or letter of credit shall be
556payable on a pro rata basis as determined by the department
557agency, but the aggregate amount may not exceed the amount of
558the bond, certificate of deposit, or letter of credit;
559     3.  Not have been convicted of, or found guilty of, or pled
560guilty or nolo contendere to, or not have been incarcerated
561within the last 10 years as a result of having previously been
562convicted of, or found guilty of, or pled guilty or nolo
563contendere to, regardless of adjudication, a felony within the
564last 10 years and not be acting as a beneficial owner for
565someone who has been convicted of, or found guilty of, or pled
566guilty or nolo contendere to, regardless of adjudication, a
567felony within the last 10 years; and
568     4.  Not have been convicted of, or found guilty of, or pled
569guilty or nolo contendere to, or not have been incarcerated
570within the last 10 years as a result of having previously been
571convicted of, or found guilty of, or pled guilty or nolo
572contendere to, regardless of adjudication, a crime that involves
573theft, larceny, dealing in stolen property, receiving stolen
574property, burglary, embezzlement, obtaining property by false
575pretenses, possession of altered property, or any other
576fraudulent or dishonest dealing within the last 10 years, and
577not be acting as a beneficial owner for someone who has been
578convicted, of, or found guilty of, or pled guilty or nolo
579contendere to, or has been incarcerated within the last 10 years
580as a result of having previously been convicted of, or found
581guilty of, or pled guilty or nolo contendere to, regardless of
582adjudication, a crime that involves theft, larceny, dealing in
583stolen property, receiving stolen property, burglary,
584embezzlement, obtaining property by false pretenses, possession
585of altered property, or any other fraudulent or dishonest
586dealing within the last 10 years.
587     (b)  Any applicant claiming to have a net worth of $50,000
588or more shall file with the department agency, at the time of
589applying for a license, the following documentation:
590     1.  A current financial statement prepared by a Florida
591certified public accountant; or
592     2.  An affidavit stating the applicant's net worth is at
593least $50,000, accompanied by supporting documentation; or
594     3.  If the applicant is a corporation, a copy of the
595applicant's most recently filed federal tax return.
597If the department agency cannot verify that the applicant meets
598the net worth requirement for a license, the department agency
599may require a finding, including the presentation of a current
600balance sheet, by an accounting firm or individual holding a
601permit to practice public accounting in this state, that the
602accountant has reviewed the books and records of the applicant
603and that the applicant meets the net worth requirement.
604     (c)  If an applicant for a pawnbroker's license is not an
605individual, the eligibility requirements of this subsection,
606other than the requirements of subparagraph (a)2., apply to each
607operator of the pawnshop and to each direct or beneficial owner
608of at least 10 percent of the outstanding equity interest of the
609pawnshop and, if the applicant is a corporation, to each officer
610and director of the corporation.
612     (a)  An application for a pawnbroker's license, for the
613transfer of an existing pawnbroker's license, or for the
614approval of a change in the ownership of a licensee's pawnshop
615must be under oath and must state the full name and place of
616residence of the applicant, the place where the business is to
617be conducted, and other relevant information required by the
618department agency.
619     (b)1.  If the applicant is not an individual, the applicant
620must state the full name and address of each direct or
621beneficial owner of at least a 10-percent equity interest in
622such person. If the applicant is a corporation, the application
623must also state the full name and address of each officer and
625     2.  Notwithstanding the provisions of subparagraph 1., the
626application need not state the full name and address of each
627officer, director, and shareholder if the applicant is owned
628directly or beneficially by a person that as an issuer has a
629class of securities registered under s. 12 of the Securities
630Exchange Act of 1934, or under s. 15(d) thereof, and is an
631issuer of registered securities required to file reports with
632the Securities and Exchange Commission and if the person files
633with the department agency the information, documents, and
634reports required to be filed with the Securities and Exchange
636     (c)  Each initial application for a license must be
637accompanied by a complete set of fingerprints taken by an
638authorized law enforcement officer, $300 for the first year's
639license fee, and the actual cost to the department agency for
640fingerprint analysis for each person subject to the eligibility
641requirements. The department agency shall submit the
642fingerprints to the Department of Law Enforcement for state
643processing, and the Department of Law Enforcement shall forward
644the fingerprints to the Federal Bureau of Investigation for a
645national criminal history check. These fees and costs are not
647     (d)  When the application and the required fees are
648received, the department agency shall investigate the facts,
649approve the application, and issue a license to the applicant if
650the department agency finds that the eligibility requirements
651for the license are satisfied. The license must be prominently
652displayed at the front desk or counter at each pawnshop.
653     (e)  Fees and fines collected under this chapter section by
654the department agency shall be deposited into the General
655Inspection Trust Fund.
656     539.107  Pawnbroker transaction form; recordkeeping.-
658     (1)(a)  At the time the pawnbroker enters into any pawn or
659purchase transaction, the pawnbroker shall complete a pawnbroker
660transaction form for such transaction, including an indication
661of whether the transaction is a pawn or a purchase, and the
662pledgor or seller shall sign such completed form.
663     (2)  The department agency must approve the design and
664format of the pawnbroker transaction form, which must be 8 1/2
665inches x 11 inches in size and elicit the information required
666under this section. In completing the pawnbroker transaction
667form, the pawnbroker shall record the following information,
668which must be typed or written indelibly and legibly in English.
669     (b)  The front of the pawnbroker transaction form must
671     (a)1.  The name and address of the pawnshop.
672     (b)2.  A complete and accurate description of the pledged
673goods or purchased goods, including the following information,
674if applicable:
675     1.a.  Brand name.
676     2.b.  Model number.
677     3.c.  Manufacturer's serial number.
678     4.d.  Size.
679     5.e.  Color, as apparent to the untrained eye.
680     6.f.  Precious metal type, weight, and content, if known.
681     7.g.  Gemstone description, including the number of stones.
682     8.h.  In the case of firearms, the type of action, caliber
683or gauge, number of barrels, barrel length, and finish.
684     9.i.  Any other unique identifying marks, numbers, names,
685or letters.
686     10.  A digital color photograph of the pledged or purchased
687goods in the condition acquired.
689Notwithstanding subparagraphs 1.-10. sub-subparagraphs a.-i., in
690the case of multiple items of a similar nature delivered
691together in one transaction which do not bear serial or model
692numbers and which do not include precious metal or gemstones,
693such as musical or video recordings, books, and hand tools, the
694description of the items is adequate if it contains the quantity
695of items and a description of the type of items delivered.
696     (c)3.  The name, address, home telephone number, place of
697employment, date of birth, and physical description, and right
698thumbprint of the pledgor or seller.
699     (d)  The right thumbprint, free of smudges or smears, of
700the pledgor or seller.
701     (e)  A digital color photograph of the pledgor or seller.
702Such photograph must be a full-face, close-up in which the
703pledgor or seller is not wearing a hat, sunglasses, eyeglasses,
704or other article or item that obscures the pledgor's or seller's
706     (f)4.  The date and time of the transaction.
707     (g)5.  The type of identification accepted from the pledgor
708or seller, including the issuing department agency and the
709identification number.
710     (h)6.  In the case of a pawn:
711     1.a.  The amount of money advanced, which must be
712designated as the amount financed;
713     2.b.  The maturity date of the pawn, which must be 30 days
714after the date of the pawn;
715     3.c.  The default date of the pawn and the amount due on
716the default date;
717     4.d.  The total pawn service charge payable on the maturity
718date, which must be designated as the finance charge;
719     5.e.  The amount financed plus the finance charge that must
720be paid to redeem the pledged goods on the maturity date, which
721must be designated as the total of payments;
722     6.f.  The annual percentage rate, computed according to the
723regulations adopted by the Federal Reserve Board under the
724federal Truth in Lending Act; and
725     7.g.  The front or back of the pawnbroker transaction form
726must include a statement that:
727     a.(I)  Any personal property pledged to a pawnbroker within
728this state which is not redeemed within 30 days following the
729maturity date of the pawn, if the 30th day is not a business
730day, then the following business day, is automatically forfeited
731to the pawnbroker, and absolute right, title, and interest in
732and to the property vests in and is deemed conveyed to the
733pawnbroker by operation of law, and no further notice is
735     b.(II)  The pledgor is not obligated to redeem the pledged
736goods; and
737     c.(III)  If the pawnbroker transaction form is lost,
738destroyed, or stolen, the pledgor must immediately advise the
739issuing pawnbroker in writing by certified or registered mail,
740return receipt requested, or in person evidenced by a signed
742     d.(IV)  A pawn may be extended upon mutual agreement of the
744     (i)7.  In the case of a purchase, the amount of money paid
745for the goods or the monetary value assigned to the goods in
746connection with the transaction.
747     (j)8.  A statement that the pledgor or seller of the item
748represents and warrants that it is not stolen, that it has no
749liens or encumbrances against it, and that the pledgor or seller
750is the rightful owner of the goods and has the right to enter
751into the transaction.
752     (3)  Any person who knowingly gives false verification of
753ownership or gives a false or altered identification and who
754receives money from a pawnbroker for goods sold or pledged
756     (a)a.  If the value of the money received is less than
757$300, a felony of the third degree, punishable as provided in s.
758775.082, s. 775.083, or s. 775.084.
759     (b)b.  If the value of the money received is $300 or more,
760a felony of the second degree, punishable as provided in s.
761775.082, s. 775.083, or s. 775.084.
762     (4)(c)  A pawnbroker transaction form must provide a space
763for the imprint of the right thumbprint of the pledgor or seller
764and a blank line for the signature of the pledgor or seller.
765     (5)(d)  At the time of the pawn or purchase transaction,
766the pawnbroker shall deliver to the pledgor or seller an exact
767copy of the completed pawnbroker transaction form.
769     (6)(a)  A pawnbroker must maintain a copy of each completed
770pawnbroker transaction form on the pawnshop premises for at
771least 1 year after the date of the transaction. On or before the
772end of each business day, the pawnbroker must deliver to the
773appropriate law enforcement official the original pawnbroker
774transaction forms for each of the transactions occurring during
775the previous business day, unless other arrangements have been
776agreed upon between the pawnbroker and the appropriate law
777enforcement official. If the original transaction form is lost
778or destroyed by the appropriate law enforcement official, a copy
779may be used by the pawnbroker as evidence in court. When an
780electronic image of a pledgor or seller identification is
781accepted for a transaction, the pawnbroker must maintain the
782electronic image in order to meet the same recordkeeping
783requirements as for the original transaction form. If a criminal
784investigation occurs, the pawnbroker shall, upon request,
785provide a clear and legible copy of the image to the appropriate
786law enforcement official.
787     (7)(b)  A If the appropriate law enforcement agency
788supplies the appropriate software and the pawnbroker must, by
789noon of each business day, presently has the computer ability,
790pawn transactions shall be electronically transfer to the
791statewide central database established under s. 539.109 each
792transaction completed during the previous business day
793transferred. If a pawnbroker does not presently have the
794computer ability, the appropriate law enforcement agency may
795provide the pawnbroker with a computer and all necessary
796equipment for the purpose of electronically transferring pawn
797transactions. The appropriate law enforcement agency shall
798retain ownership of the computer, unless otherwise agreed upon.
799The pawnbroker shall maintain the computer in good working
800order, ordinary wear and tear excepted. In the event the
801pawnbroker transfers pawn transactions electronically, The
802pawnbroker is not required to also deliver to the appropriate
803law enforcement official the original or copies of any the
804pawnbroker transaction form transferred to the statewide central
805database forms. The appropriate law enforcement official may,
806for the purposes of a criminal investigation, request that the
807pawnbroker produce an original of a transaction form that is has
808been electronically transferred. The pawnbroker must shall
809deliver this form to the appropriate law enforcement official
810within 24 hours of the request.
811     (8)(c)  All goods delivered to a pawnbroker in a pawn or
812purchase transaction must be securely stored and maintained in
813an unaltered condition within the jurisdiction of the
814appropriate law enforcement official for a period of 30 calendar
815days after the transaction. Those goods delivered to a
816pawnbroker in a purchase transaction may not be sold or
817otherwise disposed of before the expiration of such period. The
818pawnbroker shall make all pledged and purchased goods and all
819records relating to such goods available for inspection by the
820appropriate law enforcement official during normal business
821hours throughout such period. The pawnbroker must store and
822maintain pledged goods for the period prescribed in s. 539.111
823subsection (10) unless the pledged goods are redeemed earlier.;
824provided, However, that within the first 30 days after the
825original pawn, the pledged goods may be redeemed only by the
826pledgor or the pledgor's attorney in fact.
827     539.111  Pledged goods not redeemed.-
828     (10)  PLEDGED GOODS NOT REDEEMED.-Pledged goods not
829redeemed by the pledgor on or before the maturity date of a pawn
830must be held by the pawnbroker for at least 30 days following
831such date or until the next business day, if the 30th day is not
832a business day. Pledged goods not redeemed within the 30-day
833period following the maturity date of a pawn are automatically
834forfeited to the pawnbroker; absolute right, title, and interest
835in and to the goods shall vest in and shall be deemed conveyed
836to the pawnbroker by operation of law; and no further notice is
837necessary. A pledgor does not have an has no obligation to
838redeem pledged goods or make any payment on a pawn.
839     539.113  Right to redeem; lost pawnbroker transaction
842     (1)(a)  Only a pledgor or a pledgor's authorized
843representative is entitled to redeem the pledged goods described
844in the pawnbroker transaction form; however, if the pawnbroker
845determines that the person is not the original pledgor, or the
846pledgor's authorized representative, the pawnbroker is not
847required to allow the redemption of the pledged goods by such
848person. The person redeeming the pledged goods must sign the
849pledgor's copy of the pawnbroker transaction form, which the
850pawnbroker may retain as evidence of the person's receipt of the
851pledged goods. If the person redeeming the pledged goods is the
852pledgor's authorized representative, that person must present
853notarized authorization from the original pledgor and show
854identification to the pawnbroker and the pawnbroker shall record
855that person's name and address on the pawnbroker transaction
856form retained by the pawnshop. It is the pawnbroker's
857responsibility to verify that the person redeeming the pledged
858goods is either the pledgor or the pledgor's authorized
860     (2)(b)  If a pledgor's copy of the pawnbroker transaction
861form is lost, destroyed, or stolen, the pledgor must notify the
862pawnbroker in writing by certified or registered mail, return
863receipt requested, or in person evidenced by a signed receipt,
864and receipt of this notice invalidates the pawnbroker
865transaction form if the pledged goods have not previously been
866redeemed. Before delivering the pledged goods or issuing a new
867pawnbroker transaction form, the pawnbroker must require the
868pledgor to make a written statement of the loss, destruction, or
869theft of the pledgor's copy of the pawnbroker transaction form.
870The pawnbroker must record on the written statement the type of
871identification and the identification number accepted from the
872pledgor, the date the statement is given, and the number of the
873pawnbroker transaction form that was lost, destroyed, or stolen.
874The statement must be signed by the pawnbroker or the pawnshop
875employee who accepts the statement from the pledgor. A
876pawnbroker is entitled to a fee not to exceed $2 in connection
877with each lost, destroyed, or stolen pawnbroker transaction form
878and the taking of a properly prepared written statement.
879     (3)(c)  Sales tax is not due or collectible in connection
880with the redemption of pledged goods.
881     (4)(d)  If pledged goods are lost or damaged while in the
882possession of the pawnbroker, the pawnbroker may satisfy the
883pledgor's claim by replacing the lost or damaged goods with like
884kinds of merchandise of equal value, with which the pledgor can
885reasonably replace the goods. Such replacement is a defense to
886any civil action based upon the loss or damage of the goods.
887     539.115  Pawn service charges.-
888     (11)  PAWN SERVICE CHARGES.-
889     (1)(a)  In a pawn transaction, a pawnbroker may contract
890for and receive a pawn service charge. The interest component of
891the pawn service charge shall be deemed to be 2 percent of the
892amount financed for each 30-day period in a pawn transaction.
893The pawnbroker may charge any amount of pawn service charge, so
894long as the total amount, inclusive of the interest component,
895does not exceed 25 percent of the amount financed for each 30-
896day period in a pawn transaction, except that the pawnbroker is
897entitled to receive a minimum pawn service charge of $5 for each
898such 30-day period.
899     (2)(b)  The default date of any pawn may be extended to a
900subsequent date by mutual agreement, between the pledgor and the
901pawnbroker except the pawnbroker may not impose a minimum
902duration of more than 30 days, evidenced by a written
903memorandum, a copy of which must be supplied to the pledgor,
904which must clearly specify the new default date, and the pawn
905service charges owed on the new default date. In this event, the
906daily pawn service charge for the extension shall be equal to
907the pawn service charge for the original 30-day period divided
908by 30 days (i.e., one-thirtieth of the original total pawn
909service charge). There is no limit on the number of extensions
910that the parties may agree to.
911     (3)(c)  The total amount of pawn service charges that a
912pawnbroker may collect in the case of pledged goods redeemed at
913any time within 30 days after the date of the pawn is the amount
914provided in subsection (1) paragraph (a). The total amount of
915pawn service charges that a pawnbroker may collect in the case
916of redemptions occurring at any time more than 30 days after the
917date of the pawn is twice the amount provided in subsection (1)
918paragraph (a), except that, for redemptions occurring more than
91960 days after the date of the pawn, pawn service charges
920continue to accrue from and after the 60th day at the daily rate
921determined as provided in subsection (2) paragraph (b). Any
922unused pawn service charge paid in advance by the pledgor must
923shall be refunded by the pawnbroker.
924     (4)(d)  Pledged goods may be redeemed by mail by agreement
925between the pledgor and the pawnbroker. The pledgor must pay in
926advance all moneys due and a reasonable charge assessed by the
927pawnbroker to recover its cost and expenses involved in the
928packaging, insuring, and shipping of the pledged goods. The
929pawnbroker shall insure the pledged goods in an amount
930acceptable to the pledgor. The pawnbroker's liability for loss
931or damage in connection with the shipment of such pledged goods
932is limited to the amount of the insurance coverage obtained.
933     (5)(e)  Any interest, charge, or fees contracted for or
934received, directly or indirectly, in excess of the amounts
935authorized under this chapter section are prohibited, may not be
936collected, and render the pawn transaction voidable, in which
937case the pawnbroker shall forfeit the right to collect twice the
938amount of the pawn service charge contracted for in the pawn
939and, upon the pledgor's written request received by the
940pawnbroker within 30 days after the maturity date, shall be
941obligated to return to the pledgor the pledged goods delivered
942to the pawnbroker in connection with the pawn upon payment of
943the balance remaining due, provided that there shall be no
944penalty for a violation resulting from an accidental and bona
945fide error that is corrected upon discovery. Any action to
946circumvent the limitation on pawn service charges collectible
947under this section is voidable. If In the event a pledgor makes
948a partial payment on a pawn that reduces the amount financed,
949any additional pawn service charges shall be calculated on the
950remaining balance of the original amount financed.
951     539.117  Pawnbroker's lien.-
952     (14)  PAWNBROKER'S LIEN.-A pawnbroker has a possessory lien
953on the pledged goods pawned as security for the funds advanced,
954the pawn service charge owed, and the other charges authorized
955under this chapter section, but not for other debts due to the
956pawnbroker. A pawnbroker has no recourse against a pledgor for
957payment on a pawn transaction except for the pledged goods
958themselves. Except as otherwise provided in this chapter
959section, the pawnbroker must retain possession of the pledged
960goods until the lien is satisfied or until the default date. The
961pawnbroker may be compelled to relinquish possession of the
962pledged goods only after receipt of the applicable funds
963advanced plus the accrued service charge and other authorized
964charges, upon court order, or as otherwise provided by law.
965     539.119  Claims against purchased goods or pledged goods
966held by pawnbrokers.-
969     (1)(a)  To obtain possession of purchased or pledged goods
970held by a pawnbroker which a claimant claims to be
971misappropriated, the claimant must notify the pawnbroker by
972certified mail, return receipt requested, or in person evidenced
973by signed receipt, of the claimant's claim to the purchased or
974pledged goods. The notice must contain a complete and accurate
975description of the purchased or pledged goods and must be
976accompanied by a legible copy of the applicable law enforcement
977agency's report on the misappropriation of such property. If the
978claimant and the pawnbroker do not resolve the matter within 10
979days after the pawnbroker's receipt of the notice, the claimant
980may petition the court to order the return of the property,
981naming the pawnbroker as a defendant, and must serve the
982pawnbroker with a copy of the petition. The pawnbroker shall
983hold the property described in the petition until the right to
984possession is resolved by the parties or by a court of competent
985jurisdiction. The court shall waive any filing fee for the
986petition to recover the property, and the sheriff shall waive
987the service fees.
988     (2)(b)  If, after notice and a hearing, the court finds
989that the property was misappropriated and orders the return of
990the property to the claimant:
991     (a)1.  The claimant may recover from the pawnbroker the
992cost of the action, including the claimant's reasonable
993attorney's fees; and
994     (b)2.  If the conveying customer is convicted of theft, a
995violation of this chapter section, or dealing in stolen
996property, the court shall order the conveying customer to repay
997the pawnbroker the full amount the conveying customer received
998from the pawnbroker for the property, plus all applicable pawn
999service charges. As used in this subsection paragraph, the term
1000"convicted of" includes a plea of nolo contendere to the charges
1001or any agreement in which adjudication is withheld; and
1002     (c)3.  The conveying customer is shall be responsible to
1003pay all attorney's fees and taxable costs incurred by the
1004pawnbroker in defending a replevin action or any other civil
1005matter wherein it is found that the conveying customer violated
1006was in violation of this subsection paragraph.
1007     (3)(c)  If the court finds that the claimant failed to
1008comply with subsection (1) the requirements in paragraph (a) or
1009otherwise finds against the claimant, the claimant is liable for
1010the defendants' costs, including reasonable attorney's fees.
1011     (4)(d)  The sale, pledge, or delivery of tangible personal
1012property to a pawnbroker by any person in this state is
1013considered to be:
1014     (a)1.  An agreement by the person who sells, pledges, or
1015delivers the tangible personal property that the person is
1016subject to the jurisdiction of the court in all civil actions
1017and proceedings arising out of the pledge or sale transaction
1018filed by either a resident or nonresident plaintiff;
1019     (b)2.  An appointment of the Secretary of State by any
1020nonresident of this state as that person's lawful attorney and
1021agent upon whom may be served all process in suits pertaining to
1022the actions and proceedings arising out of the sale, pledge, or
1023delivery; and
1024     (c)3.  An agreement by any nonresident that any process in
1025any suit so served has the same legal force and validity as if
1026personally served in this state.
1027     539.121  Hold orders.-
1030     (1)(a)  When an appropriate law enforcement official has
1031probable cause to believe that property in the possession of a
1032pawnbroker is misappropriated, the official may place a written
1033hold order on the property. The written hold order shall impose
1034a holding period not to exceed 90 days unless extended by court
1035order. The appropriate law enforcement official may rescind, in
1036writing, any hold order. An appropriate law enforcement official
1037may place only one hold order on property.
1038     (2)(b)  Upon the expiration of the holding period, the
1039pawnbroker shall notify, in writing, the appropriate law
1040enforcement official by certified mail, return receipt
1041requested, that the holding period has expired. If, on the 10th
1042day after the written notice has been received by the
1043appropriate law enforcement official, the pawnbroker has not
1044received from a court an extension of the hold order on the
1045property and the property is not the subject of a proceeding
1046under s. 539.119 subsection (15), title to the property shall
1047vest in and be deemed conveyed by operation of law to the
1048pawnbroker, free of any liability for claims but subject to any
1049restrictions contained in the pawn transaction contract and
1050subject to the provisions of this chapter section.
1051     (3)(c)  A hold order must specify:
1052     (a)1.  The name and address of the pawnbroker.
1053     (b)2.  The name, title, and identification number of the
1054representative of the appropriate law enforcement official or
1055the court placing the hold order.
1056     (c)3.  If applicable, the name and address of the
1057appropriate law enforcement official or court to which such
1058representative is attached and the number, if any, assigned to
1059the claim regarding the property.
1060     (d)4.  A complete description of the property to be held,
1061including model number and serial number if applicable.
1062     (e)5.  The name of the person reporting the property to be
1063misappropriated unless otherwise prohibited by law.
1064     (f)6.  The mailing address of the pawnbroker where the
1065property is held.
1066     (g)7.  The expiration date of the holding period.
1067     (4)(d)  The pawnbroker or the pawnbroker's representative
1068must sign and date a copy of the hold order as evidence of
1069receipt of the hold order and the beginning of the 90-day
1070holding period.
1071     (5)(a)(e)1.  Except as provided in paragraph (b)
1072subparagraph 2., a pawnbroker may not release or dispose of
1073property subject to a hold order except pursuant to a court
1074order, a written release from the appropriate law enforcement
1075official, or the expiration of the holding period of the hold
1077     (b)2.  While a hold order is in effect, the pawnbroker must
1078upon request release the property subject to the hold order to
1079the custody of the appropriate law enforcement official for use
1080in a criminal investigation. The release of the property to the
1081custody of the appropriate law enforcement official is not
1082considered a waiver or release of the pawnbroker's property
1083rights or interest in the property. Upon completion of the
1084criminal proceeding, the property must be returned to the
1085pawnbroker unless the court orders other disposition. When such
1086other disposition is ordered, the court shall additionally order
1087the conveying customer to pay restitution to the pawnbroker in
1088the amount received by the conveying customer for the property
1089together with reasonable attorney's fees and costs.
1090     539.123  Prohibited acts; penalties.-
1091     (12)  PROHIBITED ACTS.-
1092     (1)  A pawnbroker, or an employee or agent of a pawnbroker,
1093may not:
1094     (a)  Falsify or intentionally fail to make an entry of any
1095material matter in a pawnbroker transaction form.
1096     (b)  Refuse to allow the department agency, the appropriate
1097law enforcement official, or the state attorney, or any of their
1098designated representatives having jurisdiction, to inspect
1099completed pawnbroker transaction forms or pledged or purchased
1100goods during the ordinary hours of the pawnbroker's business or
1101other time acceptable to both parties. The appropriate law
1102enforcement official shall disclose to a claimant the name and
1103address of the pawnbroker, the name and address of the conveying
1104customer, and a description of pawned, purchased, or consigned
1105goods that the claimant claims to be misappropriated.
1106     (c)  Obliterate, discard, or destroy a completed pawnbroker
1107transaction form sooner than 3 years after the date of the
1109     (d)  Accept a pledge or purchase property from a person
1110under the age of 18 years.
1111     (e)  Make any agreement requiring or allowing the personal
1112liability of a pledgor or the waiver of any of the provisions of
1113this chapter section.
1114     (f)  Knowingly enter into a pawn or purchase transaction
1115with any person who is under the influence of alcohol or
1116controlled substances when such condition is apparent, or with
1117any person using the name of another or the registered name of
1118another's business.
1119     (g)  Conduct any pawn or purchase transaction at a drive-
1120through window or similar device in which the customer remains
1121in a vehicle while conducting the transaction.
1122     (h)  Fail to return or replace pledged goods to a pledgor
1123upon payment of the full amount due the pawnbroker, unless the
1124pledged goods have been placed under a hold order under s.
1125539.121 subsection (16), or taken into custody by a court or
1126otherwise disposed of by court order.
1127     (i)  Sell or otherwise charge for insurance in connection
1128with a pawn transaction, except in connection with the shipment
1129of pledged goods redeemed by mail as provided in s. 539.115
1130subsection (11).
1131     (j)  Engage in title loan transactions at, within, or
1132adjoining a licensed pawnshop location.
1133     (k)  Lease pledged goods to the pledgor or any other party.
1134     (l)  Operate a pawnshop between the hours of 10 p.m. and 7
1136     (m)  Knowingly hire anyone to work in a pawnshop who has
1137been convicted of, or entered a plea of guilty or nolo
1138contendere to, or had adjudication withheld for a felony within
1139the last 5 years, or been convicted of, or entered a plea of
1140guilty or nolo contendere to, or had adjudication withheld for a
1141crime within the last 5 years which involves theft, larceny,
1142dealing in stolen property, receiving stolen property, burglary,
1143embezzlement, obtaining property by false pretenses, possession
1144of altered property, or any fraudulent, or dishonest dealing.
1145     (n)  Knowingly accept or receive misappropriated property
1146from a conveying customer in a pawn or purchase transaction.
1149     (a)  The department agency may, after notice and a hearing,
1150suspend or revoke any license upon a finding that:
1151     1.  The licensee, either knowingly or without the exercise
1152of due care, has violated this chapter section or has aided or
1153conspired with another person to violate this chapter section;
1154     2.  A condition exists that, had it existed when the
1155license was issued, would have justified the department's
1156agency's refusal to issue a license;
1157     3.  The licensee or its applicable agents or employees who
1158are subject to the eligibility requirements no longer meet the
1159eligibility requirements to hold a pawnbroker's license; or
1160     4.  The licensee has through gross negligence or willful
1161noncompliance failed to comply with a written hold order.
1162     (b)  The department agency may conditionally license or
1163place on probation a person whose license is has been suspended
1164or may reprimand a licensee for a violation of this chapter
1166     (c)  The manner of giving notice and conducting a hearing,
1167as required by paragraph (a), must conform to chapter 120.
1168     (d)  Any licensee may surrender a license by delivering it,
1169by certified or registered mail, return receipt requested, to
1170the department agency with written notice of its surrender. The
1171surrender of a license does not affect the civil or criminal
1172liability of the licensee for acts committed before the
1173surrender of the license.
1174     (e)  The revocation, suspension, or surrender of a license
1175does not impair or affect the obligation of any preexisting
1176lawful contract between the licensee and any pledgor. Any pawn
1177transaction made by a person without benefit of a license is
1178voidable, in which case the person forfeits the right to collect
1179any moneys, including principal and any charges, from the
1180pledgor in connection with such transaction and is obligated to
1181return to the pledgor the pledged goods in connection with such
1183     (f)  The department agency may reinstate a suspended
1184license or issue a new license to a person whose license has
1185been revoked, if after a hearing it determines that no fact or
1186condition then exists that would have justified the department
1187agency in originally refusing to issue a license.
1188     (g)  Each licensee must maintain a net worth of $50,000 or
1189the bond specified in s. 539.105(4) subsection (4).
1191     (a)  The department agency may enter an order imposing one
1192or more of the penalties set forth in paragraph (b) if the
1193department agency finds that a pawnbroker:
1194     1.  Violated or is operating in violation of any of the
1195provisions of this chapter section or of the rules adopted or
1196orders issued under this chapter thereunder;
1197     2.  Made a material false statement in any application,
1198document, or record required to be submitted or retained under
1199this chapter section;
1200     3.  Refused or failed, or any of its principal officers has
1201refused or failed, after notice, to produce any document or
1202records or disclose any information required to be produced or
1203disclosed under this chapter section or the rules adopted by of
1204the department agency;
1205     4.  Made a material false statement in response to any
1206request or investigation by the department agency, the
1207Department of Legal Affairs, or the state attorney; or
1208     5.  Has intentionally defrauded the public through
1209dishonest or deceptive means.
1210     (b)  Upon a finding as set forth in paragraph (a), the
1211department agency may enter an order doing one or more of the
1213     1.  Issuing a notice of noncompliance pursuant to s.
1215     2.  Imposing an administrative fine not to exceed $5,000
1216for each act which constitutes a violation of this chapter
1217section or a rule or an order.
1218     3.  Directing that the pawnbroker cease and desist
1219specified activities.
1220     4.  Refusing to license or revoking or suspending a
1222     5.  Placing the licensee on probation for a period of time,
1223subject to such conditions as the department agency may specify.
1224     (c)  The administrative proceedings which could result in
1225the entry of an order imposing any of the penalties specified in
1226paragraph (b) are governed by chapter 120.
1227     (d)1.  When the department agency, if a violation of this
1228chapter section occurs, has reasonable cause to believe that a
1229person is operating in violation of this chapter section, the
1230department agency may bring a civil action in the appropriate
1231court for temporary or permanent injunctive relief and may seek
1232other appropriate civil relief, including a civil penalty not to
1233exceed $5,000 for each violation, restitution and damages for
1234injured customers, court costs, and reasonable attorney's fees.
1235     2.  The department agency may terminate any investigation
1236or action upon agreement by the offender to pay a stipulated
1237civil penalty, to make restitution or pay damages to customers,
1238or to satisfy any other relief authorized herein and requested
1239by the department agency.
1240     (e)  The remedies provided for in this subsection shall be
1241in addition to any other remedy provided by law.
1242     539.125  Injunctions.-
1243     (18)  INJUNCTIONS.-When the department agency has
1244reasonable cause to believe that a person is violating this
1245chapter section, the department agency may enter an order
1246requiring the person to stop the violation. The department
1247agency may petition the court to enjoin the person from engaging
1248in the violation, continuing the violation, or doing any act in
1249furtherance of the violation. The court may order a preliminary
1250or permanent injunction.
1251     539.127  Criminal penalties.-
1252     (17)  CRIMINAL PENALTIES.-
1253     (1)(a)  Any person who engages in business as a pawnbroker
1254without first securing a license commits a felony of the third
1255degree, punishable as provided in s. 775.082, s. 775.083, or s.
1257     (2)(b)  In addition to any other penalty, any person, who
1258willfully violates this chapter section or who willfully makes a
1259false entry in any record specifically required by this chapter
1260section commits a misdemeanor of the first degree, punishable as
1261provided in s. 775.082 or s. 775.083. Clerical or recordkeeping
1262errors, such as typographical errors or scrivener's errors,
1263regarding any document or record required by this chapter are
1264section do not constitute a willful violation of this section,
1265and are not subject to criminal penalties. Clerical or
1266recordkeeping errors are subject to the administrative remedies,
1267as provided in this chapter act.
1268     539.131  Department of Law Enforcement; records.-
1270ENFORCEMENT.-The Department of Law Enforcement, on request, must
1271supply to the department agency any arrest and conviction
1272records in its possession of an individual applying for or
1273holding a license under this chapter section.
1274     539.133  Local ordinances.-
1275     (20)  CONFLICTING ORDINANCES.-Any county or municipality
1276may enact ordinances that are in compliance with, but not more
1277restrictive than this chapter section, except that local
1278ordinances shall not require the payment of any fee or tax
1279related to a pawn transaction or purchase unless authorized
1280under this chapter or restrict hours of operations other than
1281between midnight and 6 a.m. Any ordinance that conflicts with
1282this chapter subsection is void. This section does not affect
1283the authority of a county or municipality to establish land use
1284controls or require a pawnbroker to obtain a local occupational
1286     539.135  Rulemaking authority.-
1287     (21)  RULEMAKING AUTHORITY.-The department may agency has
1288authority to adopt rules pursuant to chapter 120 to administer
1289implement the provisions of this chapter section.
1290     Section 8.  Section 539.109, Florida Statutes, is created
1291to read:
1292     539.109  Statewide central database of pawnbroker and
1293secondhand dealer transactions; oversight board.-
1294     (1)  The department shall establish and administer a
1295statewide central database of pawnbroker and secondhand dealer
1296transactions that are electronically transferred under ss.
1297538.04 and 539.107.
1298     (2)(a)  There is created within the department an oversight
1299board for the database. The board shall consist of eight
1300members, including:
1301     1.  One member who is a licensed pawnbroker and one member
1302who is a registered secondhand dealer, each of whom shall be
1303appointed by the Commissioner of Agriculture.
1304     2.  Two members appointed by the Florida Police Chiefs
1305Association, two members appointed by the Florida Sheriffs
1306Association, and two members appointed by Florida Law
1307Enforcement Property Recovery Unit, Inc., each of whom shall
1308serve ex officio as voting members of the board.
1309     (b)  Members appointed by the commissioner shall be
1310appointed to terms of 4 years, except that, to establish
1311staggered terms, the commissioner may appoint initial members to
1312terms shorter than 4 years.
1313     (3)(a)  The oversight board shall determine the required
1314elements, design, and infrastructure of the database. The
1315department shall contract for the creation and maintenance of
1316the database according to the required elements, design, and
1317infrastructure determined by the oversight board.
1318     (b)  The database must be maintained on a computer server
1319that is housed or otherwise under the control of a law
1320enforcement agency.
1321     (c)  A law enforcement agency or any agent thereof may not
1322be charged any fee to access or use the database.
1323     (d)  An entity awarded a contract for the creation or
1324maintenance of the database must not have any financial or
1325operating interest in a pawnbroker or secondhand dealer in any
1327     Section 9.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.