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

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Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H1323 Detail]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

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HB 1323

1	A bill to be entitled
2	An act relating to pawnbroker and secondhand dealer
3	transactions; amending s. 538.03, F.S.; revising
4	definitions; transferring regulation of secondhand dealers
5	from the Department of Revenue to the Department of
6	Agriculture and Consumer Services; amending s. 538.04,
7	F.S.; revising recordkeeping requirements for secondhand
8	dealer transactions; revising requirements for contents
9	and electronic transfer of secondhand dealer transaction
10	forms; requiring secondhand dealers to transfer certain
11	information to a statewide central database within a
12	specified period; authorizing certain electronic records
13	to be used as evidence under certain circumstances;
14	amending s. 538.05, F.S.; conforming provisions; amending
15	s. 538.06, F.S.; revising the period for which secondhand
16	dealers must maintain transaction records; amending s.
17	538.09, F.S.; revising registration and renewal fees for
18	secondhand dealers; providing for prior notice of fee
19	adjustments; deleting provisions for the transfer of
20	certain funds; conforming provisions; amending s. 538.11,
21	F.S.; revising powers and duties of the Department of
22	Agriculture and Consumer Services; conforming provisions;
23	amending s. 539.001, F.S.; dividing the Florida
24	Pawnbroking Act into multiple sections; revising
25	registration and renewal fees for pawnbrokers; providing
26	for prior notice of fee adjustments; revising
27	recordkeeping requirements for pawnbrokers; revising
28	requirements for contents and electronic transfer of
29	pawnbroker transaction forms; requiring pawnbrokers to
30	transfer certain information to a statewide central
31	database within a specified period; conforming provisions;
32	creating s. 539.109, F.S.; establishing a statewide
33	central database of pawnbroker and secondhand dealer
34	transactions; providing for the required elements, design,
35	and infrastructure of the database; requiring the
36	department to contract for the creation and maintenance of
37	the database; limiting the financial and operating
38	interests of certain database contractors; creating an
39	oversight board for the database; providing for membership
40	and duties of the oversight board; prohibiting law
41	enforcement agencies and their agents from being charged
42	fees for accessing or using the database; providing an
43	effective date.
44
45	Be It Enacted by the Legislature of the State of Florida:
46
47	Section 1.  Subsection (1) of section 538.03, Florida
48	Statutes, 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,
52	or trade.
53	(b)(d)  "Consignment shop" means a shop engaging in the
54	business of accepting for sale, on consignment, secondhand goods
55	which, having once been used or transferred from the
56	manufacturer to the dealer, are then received into the
57	possession of a third party.
58	(c)(i)  "Department" means the Department of Agriculture
59	and Consumer Services Revenue.
60	(d)(h)  "Precious metals" means any item containing any
61	gold, silver, or platinum, or any combination thereof, excluding
62	any chemical or any automotive, photographic, electrical,
63	medical, or dental materials or electronic parts.
64	(e)(b)  "Precious metals dealer" means a secondhand dealer
65	who normally or regularly engages in the business of buying used
66	precious metals for resale. The term does not include those
67	persons involved in the bulk sale of precious metals from one
68	secondhand or precious metals dealer to another.
69	(f)(a)  "Secondhand dealer" means any person, corporation,
70	or other business organization or entity that which is not a
71	secondary metals recycler subject to part II and which is
72	engaged in the business of purchasing, consigning, or trading
73	secondhand goods.
74	(g)(f)  "Secondhand goods" means personal property
75	previously owned or used, which is not regulated metals property
76	regulated under part II and which is purchased, consigned, or
77	traded as used property. The term does Such secondhand goods do
78	not include office furniture, pianos, books, clothing, organs,
79	coins, motor vehicles, costume jewelry, cardio and strength
80	training or conditioning equipment designed primarily for indoor
81	use, and secondhand sports equipment that is not permanently
82	labeled with a serial number. For purposes of this paragraph,
83	the term "secondhand sports equipment" does not include golf
84	clubs.
85	(h)(c)  "Secondhand store" means the place or premises at
86	which a secondhand dealer is registered to conduct business as a
87	secondhand dealer or conducts business.
88	(i)(g)  "Transaction" means any purchase, consignment, or
89	trade of secondhand goods by a secondhand dealer.
90	Section 2.  Subsections (1), (6), and (7) of section
91	538.04, Florida Statutes, are amended to read:
92	538.04  Recordkeeping requirements; penalties.-
93	(1)  A secondhand dealer must dealers shall complete a
94	secondhand dealer dealers transaction form at the time of the
95	actual transaction. A secondhand dealer must shall maintain a
96	copy of a completed transaction form for at least 3 years, and
97	maintain such copy on the registered premises for at least 1
98	year, after the date of the transaction. Each transaction form
99	must However, the secondhand dealer shall maintain a copy of the
100	transaction form for not less than 3 years. Unless other
101	arrangements have been agreed upon by the secondhand dealer and
102	the appropriate law enforcement agency, the secondhand dealer
103	shall, within 24 hours after the acquisition of any secondhand
104	goods, deliver to the police department of the municipality
105	where the goods were acquired or, if the goods were acquired
106	outside of a municipality, to the sheriff's department of the
107	county where the goods were acquired, a record of the
108	transaction on a form approved by the Department of Law
109	Enforcement. Such record shall contain:
110	(a)  The time, date, and place of the transaction.
111	(b)  A complete and accurate description of the goods
112	acquired, 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,
120	if applicable.
121	8.  In the case of firearms, the type of action, caliber or
122	gauge, number of barrels, barrel length, and finish.
123	9.  Any other unique identifying marks, numbers, or
124	letters.
125	10.  A digital color photograph of the goods in the
126	condition acquired.
127	(c)  A description of the person from whom the goods are
128	were acquired, including:
129	1.  Full name, current residential address, workplace, and
130	home and work phone numbers.
131	2.  Height, weight, date of birth, race, gender, hair
132	color, eye color, and any other identifying marks.
133	3.  The right thumbprint, free of smudges and smears, of
134	the person from whom the goods are were acquired.
135	4.  A digital color photograph of the person from whom the
136	goods are acquired. Such photograph must be a full-face, close-
137	up in which the person is not wearing a hat, sunglasses,
138	eyeglasses, or other article or item that obscures the person's
139	identity.
140	(d)  Any other information required by the form approved by
141	the department of Law Enforcement.
142	(6)  If the appropriate law enforcement agency supplies A
143	secondhand dealer must, by noon of each business day, with
144	appropriate software and the secondhand dealer has computer
145	capability, secondhand dealer transactions shall be
146	electronically transfer to the statewide central database
147	established under s. 539.109 each transaction completed during
148	the previous business day transferred. If a secondhand dealer
149	does not have computer capability, the appropriate law
150	enforcement agency may provide the secondhand dealer with a
151	computer and all necessary equipment for the purpose of
152	electronically transferring secondhand dealer transactions. The
153	appropriate law enforcement agency shall retain ownership of the
154	computer, unless otherwise agreed upon. The secondhand dealer
155	shall maintain the computer in good working order, ordinary wear
156	and tear excepted. If the secondhand dealer transfers secondhand
157	dealer transactions electronically, The secondhand dealer is not
158	required to also deliver to the appropriate law enforcement
159	agency the original or copies of any the secondhand dealer
160	transaction form transferred to the statewide central database
161	forms. For the purpose of a criminal investigation, the
162	appropriate law enforcement agency may request that the
163	secondhand dealer produce an original of a transaction form that
164	is has been electronically transferred. The secondhand dealer
165	must shall deliver this form to the appropriate law enforcement
166	agency within 24 hours after the request.
167	(7)  If the original transaction form is lost or destroyed
168	by the appropriate law enforcement agency, a copy or electronic
169	record of the transaction from the statewide central database
170	may be used by the secondhand dealer as evidence in court. When
171	an electronic image of a customer's identification is accepted
172	for a transaction, the secondhand dealer must maintain the
173	electronic image in order to meet the recordkeeping requirements
174	applicable to the original transaction form. If a criminal
175	investigation occurs, the secondhand dealer shall, upon request,
176	provide a clear and legible copy of the image to the appropriate
177	law enforcement agency.
178	Section 3.  Subsection (1) of section 538.05, Florida
179	Statutes, is amended to read:
180	538.05  Inspection of records and premises of secondhand
181	dealers.-
182	(1)  The entire registered premises and required records of
183	each secondhand dealer are subject to inspection during regular
184	business hours by the department or any law enforcement officer
185	having jurisdiction.
186	Section 4.  Subsection (5) of section 538.06, Florida
187	Statutes, is amended to read:
188	538.06  Holding period.-
189	(5)  All dealers in secondhand property regulated by this
190	chapter shall maintain transaction records for 1 year 3 years.
191	Section 5.  Section 538.09, Florida Statutes, is amended to
192	read:
193	538.09  Registration.-
194	(1)(a)  A secondhand dealer may shall not engage in the
195	business of purchasing, consigning, or trading secondhand goods
196	from any location without registering with the department of
197	Revenue.
198	(b)  A secondhand dealer, upon registering, must pay a
199	registration fee prescribed by the department not to exceed $300
200	per location. The secondhand dealer must also pay on October 1
201	of each year a renewal fee prescribed by the department not to
202	exceed the amount assessed per location according to the
203	following schedule:
204	1.  One thousand three hundred dollars for each location
205	that conducts more than 500 transactions per month.
206	2.  Eight hundred dollars for each location that conducts
207	at least 101, but not more than 500, transactions per month.
208	3.  Three hundred dollars for each location that conducts
209	100 or fewer transactions per month.
210
211	The registration and renewal fees imposed under this paragraph
212	may not exceed the actual costs of processing transactions and
213	the department's related expenses of administering this part.
214	The department shall annually review the fees and, if necessary,
215	adjust the amount of the fees. The department must notify
216	registered secondhand dealers in writing at least 30 days before
217	any fee adjustment.
218	(c)  A fee equal to the federal and state costs for
219	processing required fingerprints must be submitted to the
220	department with each application for registration. One
221	application is required for each dealer. If a secondhand dealer
222	is the owner of more than one secondhand store location, the
223	application must list each location, and the department shall
224	issue a duplicate registration for each location. For purposes
225	of subsections (4) and (5) of this section, these duplicate
226	registrations are shall be deemed individual registrations. A
227	dealer shall pay a fee of $6 per location at the time of
228	registration and an annual renewal fee of $6 per location on
229	October 1 of each year. All fees collected, less costs of
230	administration, shall be transferred into the Operations Trust
231	Fund.
232	(d)  The department of Revenue shall forward the full set
233	of fingerprints to the Department of Law Enforcement for state
234	and federal processing, if provided the federal service is
235	available, to be processed for any criminal justice information
236	as defined in s. 943.045. The department shall remit the cost of
237	processing such fingerprints shall be payable to the Department
238	of Law Enforcement by the department of Revenue.
239	(e)  The department may issue a temporary registration to
240	each location pending completion of the background check by
241	state and federal law enforcement agencies, but shall revoke
242	such temporary registration if the completed background check
243	reveals a prohibited criminal background.
244	(f)1.  An applicant for a secondhand dealer registration
245	must be a natural person who has reached the age of 18 years.
246	2.(a)  If the applicant is a partnership, all the partners
247	must apply.
248	3.(b)  If the applicant is a joint venture, association, or
249	other noncorporate entity, all members of such joint venture,
250	association, or other noncorporate entity must make application
251	for registration as natural persons.
252	4.(c)  If the applicant is a corporation, the registration
253	must include the name and address of such corporation's
254	registered agent for service of process in the state and a
255	certified copy of statement from the Secretary of State that the
256	corporation is duly organized in the state or, if the
257	corporation is organized in a state other than Florida, a
258	certified copy of statement from the Secretary of State that the
259	corporation is duly qualified to do business in this state. If
260	the dealer has more than one location, the application must list
261	each location owned by the same legal entity and the department
262	shall issue a duplicate registration for each location.
263	(2)  The secondhand dealer must shall furnish with her or
264	his registration a complete set of her or his fingerprints,
265	certified by an authorized law enforcement officer, and a recent
266	full-face fullface photographic identification card of herself
267	or himself. The Department of Law Enforcement shall report its
268	findings to the department of Revenue within 30 days after the
269	date fingerprint cards are submitted for criminal justice
270	information.
271	(3)  The secondhand dealer's registration must shall be
272	conspicuously displayed at her or his registered location. A
273	secondhand dealer must hold secondhand goods at the registered
274	location until 15 days after the secondhand transaction or until
275	any extension of the holding period has expired, whichever is
276	later.
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
279	transferred into the General Revenue Fund. If the fine is not
280	paid within 60 days, the department may bring a civil action
281	under s. 120.69 to recover the fine.
282	(5)  In addition to the fine provided in subsection (4),
283	registration under this section may be denied or any
284	registration granted may be revoked, restricted, or suspended by
285	the department if the department determines that the applicant
286	or registrant:
287	(a)  Has violated any provision of this chapter or any rule
288	or order made pursuant to this chapter;
289	(b)  Has made a material false statement in the application
290	for registration;
291	(c)  Has been guilty of a fraudulent act in connection with
292	any purchase or sale or has been or is engaged in or is about to
293	engage in any practice, purchase, or sale which is fraudulent or
294	in violation of the law;
295	(d)  Has made a misrepresentation or false statement to, or
296	concealed any essential or material fact from, any person in
297	making any purchase or sale;
298	(e)  Is making purchases or sales through any business
299	associate not registered in compliance with the provisions of
300	this chapter;
301	(f)  Has, within the preceding 10-year period for new
302	registrants who apply for registration on or after October 1,
303	2006, been convicted of, or has entered a plea of guilty or nolo
304	contendere to, or had adjudication withheld for, a crime against
305	the laws of this state or any other state or of the United
306	States which relates to registration as a secondhand dealer or
307	which involves theft, larceny, dealing in stolen property,
308	receiving stolen property, burglary, embezzlement, obtaining
309	property by false pretenses, possession of altered property, any
310	felony drug offense, any violation of s. 812.015, or any
311	fraudulent dealing;
312	(g)  Has had a final judgment entered against her or him in
313	a civil action upon grounds of fraud, embezzlement,
314	misrepresentation, or deceit; or
315	(h)  Has failed to pay any sales tax owed to the Department
316	of Revenue.
317
318	In the event the department determines to deny an application or
319	revoke a registration, it shall enter a final order with its
320	findings on the register of secondhand dealers and their
321	business associates, if any; and denial, suspension, or
322	revocation of the registration of a secondhand dealer shall also
323	deny, suspend, or revoke the registration of such secondhand
324	dealer's business associates.
325	(6)  Upon the request of a law enforcement official, the
326	department of Revenue shall release to the official the name and
327	address of any secondhand dealer registered to do business
328	within the official's jurisdiction.
329	Section 6.  Section 538.11, Florida Statutes, is amended to
330	read:
331	538.11  Powers and duties of department; rules.-The same
332	duties and privileges imposed by chapter 539 212 upon
333	pawnbrokers dealers of tangible personal property respecting the
334	keeping of books and records and accounts and compliance with
335	rules of the department shall apply to and be binding upon all
336	persons who are subject to the provisions of this chapter. The
337	department shall administer, collect, and enforce the
338	registration authorized under this chapter pursuant to the same
339	procedures used in the licensure administration, collection, and
340	enforcement of pawnbrokers the general state sales tax imposed
341	under chapter 539 212, except as provided in this section. The
342	provisions of chapter 212 regarding the keeping of records and
343	books shall apply. The department is authorized to employ
344	persons and incur other expenses for which funds are
345	appropriated by the Legislature. The department is empowered to
346	adopt such rules, and shall prescribe and publish such forms, as
347	may be necessary to effectuate the purposes of this chapter. The
348	Legislature hereby finds that the failure to promptly implement
349	the provisions of this chapter would present an immediate threat
350	to the welfare of the state. Therefore, the executive director
351	of the department is hereby authorized to adopt emergency rules
352	pursuant to s. 120.54(4), for purposes of implementing this
353	chapter. Notwithstanding any other provision of law, such
354	emergency rules shall remain effective for 6 months from the
355	date of adoption. Other rules of the department related to and
356	in furtherance of the orderly implementation of the chapter
357	shall not be subject to a rule challenge under s. 120.56(2) or a
358	drawout proceeding under s. 120.54(3)(c)2. but, once adopted,
359	shall be subject to an invalidity challenge under s. 120.56(3).
360	Such rules shall be adopted by the department Governor and
361	Cabinet and shall become effective upon filing with the
362	Department of State, notwithstanding the provisions of s.
363	120.54(3)(e)6.
364	Section 7.  Section 539.001, Florida Statutes, is amended
365	to 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
371	term:
372	(1)(r)  "Amount financed" is used interchangeably to mean
373	the same as "amount of money advanced" or "principal amount".
374	(2)(b)  "Appropriate law enforcement official" means the
375	sheriff of the county in which a pawnshop is located or, in case
376	of a pawnshop located within a municipality, the police chief of
377	the municipality in which the pawnshop is located; however, any
378	sheriff or police chief may designate as the appropriate law
379	enforcement official for the county or municipality, as
380	applicable, any law enforcement officer working within the
381	county or municipality headed by that sheriff or police chief.
382	Nothing in This subsection does not limit limits the power and
383	responsibilities of the sheriff.
384	(3)(t)  "Beneficial owner" means a person who does not have
385	title to property but has rights in the property which are the
386	normal incident of owning the property.
387	(4)(c)  "Claimant" means a person who claims that his or
388	her property was misappropriated.
389	(5)(d)  "Conveying customer" means a person who delivers
390	property into the custody of a pawnbroker, either by pawn, sale,
391	consignment, or trade.
392	(6)(s)  "Default date" means that date upon which the
393	pledgor's right of redemption expires and absolute right, title,
394	and interest in and to the pledged goods shall vest in and shall
395	be deemed conveyed to the pawnbroker by operation of law.
396	(7)(a)  "Department" "Agency" means the Department of
397	Agriculture and Consumer Services.
398	(8)(e)  "Identification" means a government-issued
399	photographic identification or an electronic image taken from a
400	government-issued photographic identification.
401	(9)(f)  "Misappropriated" means stolen, embezzled,
402	converted, or otherwise wrongfully appropriated against the will
403	of the rightful owner.
404	(10)(g)  "Net worth" means total assets less total
405	liabilities.
406	(11)(u)  "Operator" means a person who has charge of a
407	corporation or company and has control of its business, or of
408	its branch establishments, divisions, or departments, and who is
409	vested with a certain amount of discretion and independent
410	judgment.
411	(12)(h)  "Pawn" means any advancement of funds on the
412	security of pledged goods on condition that the pledged goods
413	are left in the possession of the pawnbroker for the duration of
414	the pawn and may be redeemed by the pledgor on the terms and
415	conditions contained in this chapter section.
416	(13)(i)  "Pawnbroker" means any person who is engaged in
417	the business of making pawns; who makes a public display
418	containing the term "pawn," "pawnbroker," or "pawnshop" or any
419	derivative thereof; or who publicly displays a sign or symbol
420	historically identified with pawns. A pawnbroker may also engage
421	in the business of purchasing goods which includes consignment
422	and trade.
423	(14)(j)  "Pawnbroker transaction form" means the instrument
424	on which a pawnbroker records pawns and purchases as provided in
425	s. 539.109 subsection (8).
426	(15)(k)  "Pawn service charge" means a charge for
427	investigating the title, storage, and insuring of the security;
428	closing the transaction; making daily reports to appropriate law
429	enforcement officials; expenses and losses; and all other
430	services.
431	(16)(l)  "Pawnshop" means the location at which a
432	pawnbroker conducts business.
433	(17)(m)  "Permitted vendor" means a vendor who furnishes a
434	pawnbroker with an invoice specifying the vendor's name and
435	address, the date of the sale, a description of the items sold,
436	and the sales price, and who has an established place of
437	business, or, in the case of a secondhand dealer as defined in
438	s. 538.03, has represented in writing that such dealer has
439	complied with all applicable recordkeeping, reporting, and
440	retention requirements pertaining to goods sold or otherwise
441	delivered to a pawnbroker.
442	(18)(n)  "Person" means an individual, partnership,
443	corporation, joint venture, trust, association, or other legal
444	entity.
445	(19)(o)  "Pledged goods" means tangible personal property
446	that is deposited with, or otherwise delivered into the
447	possession of a pawnbroker in connection with a pawn. "Pledged
448	goods" does not include titles or any other form of written
449	security in tangible property in lieu of actual physical
450	possession, including, but not limited to, choses in action,
451	securities, printed evidence of indebtedness, or certificates of
452	title and other instruments evidencing title to separate items
453	of property, including motor vehicles. For purposes of federal
454	and state bankruptcy laws, a pledgor's interest in his or her
455	pledged goods during the pendency of a pawn is a right of
456	redemption only.
457	(20)(p)  "Pledgor" means an individual who delivers pledged
458	goods into the possession of a pawnbroker in connection with a
459	pawn.
460	(21)(q)  "Purchase" means the transfer and delivery of
461	goods, by a person other than a permitted vendor, to a
462	pawnbroker by acquisition for value, consignment, or trade for
463	other goods.
464	539.105  Pawnbrokers; license required.-
465	(3)  LICENSE REQUIRED.-
466	(1)(a)  A person may not engage in business as a pawnbroker
467	unless the person has a valid license issued by the department
468	agency. A separate license is required for each pawnshop. The
469	department agency must issue more than one license to a person
470	if that person complies with the requirements for each license.
471	(b)  A licensee who seeks to move a pawnshop to another
472	location must give 30 days' prior written notice to the
473	department agency by certified or registered mail, return
474	receipt requested, upon which and the department agency must
475	then amend the license to indicate the new location. The
476	licensee must also give such written notice to the appropriate
477	law enforcement official.
478	(c)  Each license is valid for a period of 1 year unless it
479	is earlier relinquished, suspended, or revoked. Each license
480	must shall be renewed annually.
481	(2)  A pawnbroker, upon licensure, must and each licensee
482	shall, initially and annually thereafter, pay to the agency a
483	license fee prescribed by the department not to exceed $500. The
484	pawnbroker must pay an annual renewal fee prescribed by the
485	department not to exceed the amount assessed per location
486	according to the following schedule: of $300 for each license
487	held.
488	(a)  One thousand five hundred dollars for each location
489	that conducts more than 1,000 transactions per month.
490	(b)  One thousand dollars for each location that conducts
491	at least 151, but not more than 1,000, transactions per month.
492	(c)  Five hundred dollars for each location that conducts
493	150 or fewer transactions per month.
494
495	The license and renewal fees imposed under this subsection may
496	not exceed the actual costs of processing transactions and the
497	department's related expenses of administering this chapter. The
498	department shall annually review the fees and, if necessary,
499	adjust the amount of the fees. The department must notify
500	licensed pawnbrokers in writing at least 30 days before any fee
501	adjustment.
502	(3)(a)(d)  The department agency may issue a temporary
503	pawnbroker's license for the operation of a pawnshop either upon
504	receipt of an application to transfer an existing license from
505	one person to another or upon receipt of an application for a
506	license involving principals and owners that are substantially
507	identical to those of the existing licensee. The temporary
508	license is effective until the permanent license is issued or
509	denied by the department agency.
510	(b)(e)  A person must apply to the department agency for a
511	new license or for a temporary license upon any change, directly
512	or beneficially, in the ownership of any pawnshop. An
513	application for a license or an application to transfer an
514	existing license is not required upon any change, directly or
515	beneficially, in the ownership of a pawnshop if one or more
516	holders of at least 90 percent of the outstanding equity
517	interest of the pawnshop before the change in ownership continue
518	to hold at least 90 percent of the outstanding equity interest
519	after the change in ownership.
520	(c)(f)  Any person applying for or renewing a local
521	occupational license to engage in business as a pawnbroker must
522	exhibit a current license from the department agency before the
523	local occupational license may be issued or reissued.
524	(4)  ELIGIBILITY FOR LICENSE.-
525	(a)  To be eligible for a pawnbroker's license, an
526	applicant must:
527	1.  Be of good moral character;
528	2.  Have a net worth of at least $50,000 or file with the
529	department agency a bond issued by a surety company qualified to
530	do business in this state in the amount of $10,000 for each
531	license. In lieu of the bond required in this section, the
532	applicant may establish a certificate of deposit or an
533	irrevocable letter of credit in a Florida banking institution in
534	the amount of the bond. The original bond, certificate of
535	deposit, or letter of credit shall be filed with the department
536	agency, and the department agency shall be the beneficiary to
537	said document. The bond, certificate of deposit, or letter of
538	credit shall be in favor of the department agency for the use
539	and benefit of any consumer who is injured by the fraud,
540	misrepresentation, breach of contract, financial failure, or
541	violation of any provision of this chapter section by the
542	pawnbroker. Such liability may be enforced either by proceeding
543	in an administrative action or by filing a judicial suit at law
544	in a court of competent jurisdiction. However, in such court
545	suit, the bond, certificate of deposit, or letter of credit
546	posted with the department agency shall not be amenable or
547	subject to any judgment or other legal process issuing out of or
548	from such court in connection with such lawsuit, but such bond,
549	certificate of deposit, or letter of credit shall be amenable to
550	and enforceable only by and through administrative proceedings
551	before the department agency. It is the intent of the
552	Legislature that such bond, certificate of deposit, or letter of
553	credit shall be applicable and liable only for the payment of
554	claims duly adjudicated by order of the department agency. The
555	bond, certificate of deposit, or letter of credit shall be
556	payable on a pro rata basis as determined by the department
557	agency, but the aggregate amount may not exceed the amount of
558	the bond, certificate of deposit, or letter of credit;
559	3.  Not have been convicted of, or found guilty of, or pled
560	guilty or nolo contendere to, or not have been incarcerated
561	within the last 10 years as a result of having previously been
562	convicted of, or found guilty of, or pled guilty or nolo
563	contendere to, regardless of adjudication, a felony within the
564	last 10 years and not be acting as a beneficial owner for
565	someone who has been convicted of, or found guilty of, or pled
566	guilty or nolo contendere to, regardless of adjudication, a
567	felony within the last 10 years; and
568	4.  Not have been convicted of, or found guilty of, or pled
569	guilty or nolo contendere to, or not have been incarcerated
570	within the last 10 years as a result of having previously been
571	convicted of, or found guilty of, or pled guilty or nolo
572	contendere to, regardless of adjudication, a crime that involves
573	theft, larceny, dealing in stolen property, receiving stolen
574	property, burglary, embezzlement, obtaining property by false
575	pretenses, possession of altered property, or any other
576	fraudulent or dishonest dealing within the last 10 years, and
577	not be acting as a beneficial owner for someone who has been
578	convicted, of, or found guilty of, or pled guilty or nolo
579	contendere to, or has been incarcerated within the last 10 years
580	as a result of having previously been convicted of, or found
581	guilty of, or pled guilty or nolo contendere to, regardless of
582	adjudication, a crime that involves theft, larceny, dealing in
583	stolen property, receiving stolen property, burglary,
584	embezzlement, obtaining property by false pretenses, possession
585	of altered property, or any other fraudulent or dishonest
586	dealing within the last 10 years.
587	(b)  Any applicant claiming to have a net worth of $50,000
588	or more shall file with the department agency, at the time of
589	applying for a license, the following documentation:
590	1.  A current financial statement prepared by a Florida
591	certified public accountant; or
592	2.  An affidavit stating the applicant's net worth is at
593	least $50,000, accompanied by supporting documentation; or
594	3.  If the applicant is a corporation, a copy of the
595	applicant's most recently filed federal tax return.
596
597	If the department agency cannot verify that the applicant meets
598	the net worth requirement for a license, the department agency
599	may require a finding, including the presentation of a current
600	balance sheet, by an accounting firm or individual holding a
601	permit to practice public accounting in this state, that the
602	accountant has reviewed the books and records of the applicant
603	and that the applicant meets the net worth requirement.
604	(c)  If an applicant for a pawnbroker's license is not an
605	individual, the eligibility requirements of this subsection,
606	other than the requirements of subparagraph (a)2., apply to each
607	operator of the pawnshop and to each direct or beneficial owner
608	of at least 10 percent of the outstanding equity interest of the
609	pawnshop and, if the applicant is a corporation, to each officer
610	and director of the corporation.
611	(5)  APPLICATION FOR LICENSE.-
612	(a)  An application for a pawnbroker's license, for the
613	transfer of an existing pawnbroker's license, or for the
614	approval of a change in the ownership of a licensee's pawnshop
615	must be under oath and must state the full name and place of
616	residence of the applicant, the place where the business is to
617	be conducted, and other relevant information required by the
618	department agency.
619	(b)1.  If the applicant is not an individual, the applicant
620	must state the full name and address of each direct or
621	beneficial owner of at least a 10-percent equity interest in
622	such person. If the applicant is a corporation, the application
623	must also state the full name and address of each officer and
624	director.
625	2.  Notwithstanding the provisions of subparagraph 1., the
626	application need not state the full name and address of each
627	officer, director, and shareholder if the applicant is owned
628	directly or beneficially by a person that as an issuer has a
629	class of securities registered under s. 12 of the Securities
630	Exchange Act of 1934, or under s. 15(d) thereof, and is an
631	issuer of registered securities required to file reports with
632	the Securities and Exchange Commission and if the person files
633	with the department agency the information, documents, and
634	reports required to be filed with the Securities and Exchange
635	Commission.
636	(c)  Each initial application for a license must be
637	accompanied by a complete set of fingerprints taken by an
638	authorized law enforcement officer, $300 for the first year's
639	license fee, and the actual cost to the department agency for
640	fingerprint analysis for each person subject to the eligibility
641	requirements. The department agency shall submit the
642	fingerprints to the Department of Law Enforcement for state
643	processing, and the Department of Law Enforcement shall forward
644	the fingerprints to the Federal Bureau of Investigation for a
645	national criminal history check. These fees and costs are not
646	refundable.
647	(d)  When the application and the required fees are
648	received, the department agency shall investigate the facts,
649	approve the application, and issue a license to the applicant if
650	the department agency finds that the eligibility requirements
651	for the license are satisfied. The license must be prominently
652	displayed at the front desk or counter at each pawnshop.
653	(e)  Fees and fines collected under this chapter section by
654	the department agency shall be deposited into the General
655	Inspection Trust Fund.
656	539.107  Pawnbroker transaction form; recordkeeping.-
657	(8)  PAWNBROKER TRANSACTION FORM.-
658	(1)(a)  At the time the pawnbroker enters into any pawn or
659	purchase transaction, the pawnbroker shall complete a pawnbroker
660	transaction form for such transaction, including an indication
661	of whether the transaction is a pawn or a purchase, and the
662	pledgor or seller shall sign such completed form.
663	(2)  The department agency must approve the design and
664	format of the pawnbroker transaction form, which must be 8 1/2
665	inches x 11 inches in size and elicit the information required
666	under this section. In completing the pawnbroker transaction
667	form, the pawnbroker shall record the following information,
668	which must be typed or written indelibly and legibly in English.
669	(b)  The front of the pawnbroker transaction form must
670	include:
671	(a)1.  The name and address of the pawnshop.
672	(b)2.  A complete and accurate description of the pledged
673	goods or purchased goods, including the following information,
674	if 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
683	or gauge, number of barrels, barrel length, and finish.
684	9.i.  Any other unique identifying marks, numbers, names,
685	or letters.
686	10.  A digital color photograph of the pledged or purchased
687	goods in the condition acquired.
688
689	Notwithstanding subparagraphs 1.-10. sub-subparagraphs a.-i., in
690	the case of multiple items of a similar nature delivered
691	together in one transaction which do not bear serial or model
692	numbers and which do not include precious metal or gemstones,
693	such as musical or video recordings, books, and hand tools, the
694	description of the items is adequate if it contains the quantity
695	of items and a description of the type of items delivered.
696	(c)3.  The name, address, home telephone number, place of
697	employment, date of birth, and physical description, and right
698	thumbprint of the pledgor or seller.
699	(d)  The right thumbprint, free of smudges or smears, of
700	the pledgor or seller.
701	(e)  A digital color photograph of the pledgor or seller.
702	Such photograph must be a full-face, close-up in which the
703	pledgor or seller is not wearing a hat, sunglasses, eyeglasses,
704	or other article or item that obscures the pledgor's or seller's
705	identity.
706	(f)4.  The date and time of the transaction.
707	(g)5.  The type of identification accepted from the pledgor
708	or seller, including the issuing department agency and the
709	identification number.
710	(h)6.  In the case of a pawn:
711	1.a.  The amount of money advanced, which must be
712	designated as the amount financed;
713	2.b.  The maturity date of the pawn, which must be 30 days
714	after the date of the pawn;
715	3.c.  The default date of the pawn and the amount due on
716	the default date;
717	4.d.  The total pawn service charge payable on the maturity
718	date, which must be designated as the finance charge;
719	5.e.  The amount financed plus the finance charge that must
720	be paid to redeem the pledged goods on the maturity date, which
721	must be designated as the total of payments;
722	6.f.  The annual percentage rate, computed according to the
723	regulations adopted by the Federal Reserve Board under the
724	federal Truth in Lending Act; and
725	7.g.  The front or back of the pawnbroker transaction form
726	must include a statement that:
727	a.(I)  Any personal property pledged to a pawnbroker within
728	this state which is not redeemed within 30 days following the
729	maturity date of the pawn, if the 30th day is not a business
730	day, then the following business day, is automatically forfeited
731	to the pawnbroker, and absolute right, title, and interest in
732	and to the property vests in and is deemed conveyed to the
733	pawnbroker by operation of law, and no further notice is
734	necessary;
735	b.(II)  The pledgor is not obligated to redeem the pledged
736	goods; and
737	c.(III)  If the pawnbroker transaction form is lost,
738	destroyed, or stolen, the pledgor must immediately advise the
739	issuing pawnbroker in writing by certified or registered mail,
740	return receipt requested, or in person evidenced by a signed
741	receipt.
742	d.(IV)  A pawn may be extended upon mutual agreement of the
743	parties.
744	(i)7.  In the case of a purchase, the amount of money paid
745	for the goods or the monetary value assigned to the goods in
746	connection with the transaction.
747	(j)8.  A statement that the pledgor or seller of the item
748	represents and warrants that it is not stolen, that it has no
749	liens or encumbrances against it, and that the pledgor or seller
750	is the rightful owner of the goods and has the right to enter
751	into the transaction.
752	(3)  Any person who knowingly gives false verification of
753	ownership or gives a false or altered identification and who
754	receives money from a pawnbroker for goods sold or pledged
755	commits:
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.
758	775.082, s. 775.083, or s. 775.084.
759	(b)b.  If the value of the money received is $300 or more,
760	a felony of the second degree, punishable as provided in s.
761	775.082, s. 775.083, or s. 775.084.
762	(4)(c)  A pawnbroker transaction form must provide a space
763	for the imprint of the right thumbprint of the pledgor or seller
764	and a blank line for the signature of the pledgor or seller.
765	(5)(d)  At the time of the pawn or purchase transaction,
766	the pawnbroker shall deliver to the pledgor or seller an exact
767	copy of the completed pawnbroker transaction form.
768	(9)  RECORDKEEPING; REPORTING; HOLD PERIOD.-
769	(6)(a)  A pawnbroker must maintain a copy of each completed
770	pawnbroker transaction form on the pawnshop premises for at
771	least 1 year after the date of the transaction. On or before the
772	end of each business day, the pawnbroker must deliver to the
773	appropriate law enforcement official the original pawnbroker
774	transaction forms for each of the transactions occurring during
775	the previous business day, unless other arrangements have been
776	agreed upon between the pawnbroker and the appropriate law
777	enforcement official. If the original transaction form is lost
778	or destroyed by the appropriate law enforcement official, a copy
779	may be used by the pawnbroker as evidence in court. When an
780	electronic image of a pledgor or seller identification is
781	accepted for a transaction, the pawnbroker must maintain the
782	electronic image in order to meet the same recordkeeping
783	requirements as for the original transaction form. If a criminal
784	investigation occurs, the pawnbroker shall, upon request,
785	provide a clear and legible copy of the image to the appropriate
786	law enforcement official.
787	(7)(b)  A If the appropriate law enforcement agency
788	supplies the appropriate software and the pawnbroker must, by
789	noon of each business day, presently has the computer ability,
790	pawn transactions shall be electronically transfer to the
791	statewide central database established under s. 539.109 each
792	transaction completed during the previous business day
793	transferred. If a pawnbroker does not presently have the
794	computer ability, the appropriate law enforcement agency may
795	provide the pawnbroker with a computer and all necessary
796	equipment for the purpose of electronically transferring pawn
797	transactions. The appropriate law enforcement agency shall
798	retain ownership of the computer, unless otherwise agreed upon.
799	The pawnbroker shall maintain the computer in good working
800	order, ordinary wear and tear excepted. In the event the
801	pawnbroker transfers pawn transactions electronically, The
802	pawnbroker is not required to also deliver to the appropriate
803	law enforcement official the original or copies of any the
804	pawnbroker transaction form transferred to the statewide central
805	database forms. The appropriate law enforcement official may,
806	for the purposes of a criminal investigation, request that the
807	pawnbroker produce an original of a transaction form that is has
808	been electronically transferred. The pawnbroker must shall
809	deliver this form to the appropriate law enforcement official
810	within 24 hours of the request.
811	(8)(c)  All goods delivered to a pawnbroker in a pawn or
812	purchase transaction must be securely stored and maintained in
813	an unaltered condition within the jurisdiction of the
814	appropriate law enforcement official for a period of 30 calendar
815	days after the transaction. Those goods delivered to a
816	pawnbroker in a purchase transaction may not be sold or
817	otherwise disposed of before the expiration of such period. The
818	pawnbroker shall make all pledged and purchased goods and all
819	records relating to such goods available for inspection by the
820	appropriate law enforcement official during normal business
821	hours throughout such period. The pawnbroker must store and
822	maintain pledged goods for the period prescribed in s. 539.111
823	subsection (10) unless the pledged goods are redeemed earlier.;
824	provided, However, that within the first 30 days after the
825	original pawn, the pledged goods may be redeemed only by the
826	pledgor or the pledgor's attorney in fact.
827	539.111  Pledged goods not redeemed.-
828	(10)  PLEDGED GOODS NOT REDEEMED.-Pledged goods not
829	redeemed by the pledgor on or before the maturity date of a pawn
830	must be held by the pawnbroker for at least 30 days following
831	such date or until the next business day, if the 30th day is not
832	a business day. Pledged goods not redeemed within the 30-day
833	period following the maturity date of a pawn are automatically
834	forfeited to the pawnbroker; absolute right, title, and interest
835	in and to the goods shall vest in and shall be deemed conveyed
836	to the pawnbroker by operation of law; and no further notice is
837	necessary. A pledgor does not have an has no obligation to
838	redeem pledged goods or make any payment on a pawn.
839	539.113  Right to redeem; lost pawnbroker transaction
840	form.-
841	(13)  RIGHT TO REDEEM; LOST PAWNBROKER TRANSACTION FORM.-
842	(1)(a)  Only a pledgor or a pledgor's authorized
843	representative is entitled to redeem the pledged goods described
844	in the pawnbroker transaction form; however, if the pawnbroker
845	determines that the person is not the original pledgor, or the
846	pledgor's authorized representative, the pawnbroker is not
847	required to allow the redemption of the pledged goods by such
848	person. The person redeeming the pledged goods must sign the
849	pledgor's copy of the pawnbroker transaction form, which the
850	pawnbroker may retain as evidence of the person's receipt of the
851	pledged goods. If the person redeeming the pledged goods is the
852	pledgor's authorized representative, that person must present
853	notarized authorization from the original pledgor and show
854	identification to the pawnbroker and the pawnbroker shall record
855	that person's name and address on the pawnbroker transaction
856	form retained by the pawnshop. It is the pawnbroker's
857	responsibility to verify that the person redeeming the pledged
858	goods is either the pledgor or the pledgor's authorized
859	representative.
860	(2)(b)  If a pledgor's copy of the pawnbroker transaction
861	form is lost, destroyed, or stolen, the pledgor must notify the
862	pawnbroker in writing by certified or registered mail, return
863	receipt requested, or in person evidenced by a signed receipt,
864	and receipt of this notice invalidates the pawnbroker
865	transaction form if the pledged goods have not previously been
866	redeemed. Before delivering the pledged goods or issuing a new
867	pawnbroker transaction form, the pawnbroker must require the
868	pledgor to make a written statement of the loss, destruction, or
869	theft of the pledgor's copy of the pawnbroker transaction form.
870	The pawnbroker must record on the written statement the type of
871	identification and the identification number accepted from the
872	pledgor, the date the statement is given, and the number of the
873	pawnbroker transaction form that was lost, destroyed, or stolen.
874	The statement must be signed by the pawnbroker or the pawnshop
875	employee who accepts the statement from the pledgor. A
876	pawnbroker is entitled to a fee not to exceed $2 in connection
877	with each lost, destroyed, or stolen pawnbroker transaction form
878	and the taking of a properly prepared written statement.
879	(3)(c)  Sales tax is not due or collectible in connection
880	with the redemption of pledged goods.
881	(4)(d)  If pledged goods are lost or damaged while in the
882	possession of the pawnbroker, the pawnbroker may satisfy the
883	pledgor's claim by replacing the lost or damaged goods with like
884	kinds of merchandise of equal value, with which the pledgor can
885	reasonably replace the goods. Such replacement is a defense to
886	any 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
890	for and receive a pawn service charge. The interest component of
891	the pawn service charge shall be deemed to be 2 percent of the
892	amount financed for each 30-day period in a pawn transaction.
893	The pawnbroker may charge any amount of pawn service charge, so
894	long as the total amount, inclusive of the interest component,
895	does not exceed 25 percent of the amount financed for each 30-
896	day period in a pawn transaction, except that the pawnbroker is
897	entitled to receive a minimum pawn service charge of $5 for each
898	such 30-day period.
899	(2)(b)  The default date of any pawn may be extended to a
900	subsequent date by mutual agreement, between the pledgor and the
901	pawnbroker except the pawnbroker may not impose a minimum
902	duration of more than 30 days, evidenced by a written
903	memorandum, a copy of which must be supplied to the pledgor,
904	which must clearly specify the new default date, and the pawn
905	service charges owed on the new default date. In this event, the
906	daily pawn service charge for the extension shall be equal to
907	the pawn service charge for the original 30-day period divided
908	by 30 days (i.e., one-thirtieth of the original total pawn
909	service charge). There is no limit on the number of extensions
910	that the parties may agree to.
911	(3)(c)  The total amount of pawn service charges that a
912	pawnbroker may collect in the case of pledged goods redeemed at
913	any time within 30 days after the date of the pawn is the amount
914	provided in subsection (1) paragraph (a). The total amount of
915	pawn service charges that a pawnbroker may collect in the case
916	of redemptions occurring at any time more than 30 days after the
917	date of the pawn is twice the amount provided in subsection (1)
918	paragraph (a), except that, for redemptions occurring more than
919	60 days after the date of the pawn, pawn service charges
920	continue to accrue from and after the 60th day at the daily rate
921	determined as provided in subsection (2) paragraph (b). Any
922	unused pawn service charge paid in advance by the pledgor must
923	shall be refunded by the pawnbroker.
924	(4)(d)  Pledged goods may be redeemed by mail by agreement
925	between the pledgor and the pawnbroker. The pledgor must pay in
926	advance all moneys due and a reasonable charge assessed by the
927	pawnbroker to recover its cost and expenses involved in the
928	packaging, insuring, and shipping of the pledged goods. The
929	pawnbroker shall insure the pledged goods in an amount
930	acceptable to the pledgor. The pawnbroker's liability for loss
931	or damage in connection with the shipment of such pledged goods
932	is limited to the amount of the insurance coverage obtained.
933	(5)(e)  Any interest, charge, or fees contracted for or
934	received, directly or indirectly, in excess of the amounts
935	authorized under this chapter section are prohibited, may not be
936	collected, and render the pawn transaction voidable, in which
937	case the pawnbroker shall forfeit the right to collect twice the
938	amount of the pawn service charge contracted for in the pawn
939	and, upon the pledgor's written request received by the
940	pawnbroker within 30 days after the maturity date, shall be
941	obligated to return to the pledgor the pledged goods delivered
942	to the pawnbroker in connection with the pawn upon payment of
943	the balance remaining due, provided that there shall be no
944	penalty for a violation resulting from an accidental and bona
945	fide error that is corrected upon discovery. Any action to
946	circumvent the limitation on pawn service charges collectible
947	under this section is voidable. If In the event a pledgor makes
948	a partial payment on a pawn that reduces the amount financed,
949	any additional pawn service charges shall be calculated on the
950	remaining balance of the original amount financed.
951	539.117  Pawnbroker's lien.-
952	(14)  PAWNBROKER'S LIEN.-A pawnbroker has a possessory lien
953	on the pledged goods pawned as security for the funds advanced,
954	the pawn service charge owed, and the other charges authorized
955	under this chapter section, but not for other debts due to the
956	pawnbroker. A pawnbroker has no recourse against a pledgor for
957	payment on a pawn transaction except for the pledged goods
958	themselves. Except as otherwise provided in this chapter
959	section, the pawnbroker must retain possession of the pledged
960	goods until the lien is satisfied or until the default date. The
961	pawnbroker may be compelled to relinquish possession of the
962	pledged goods only after receipt of the applicable funds
963	advanced plus the accrued service charge and other authorized
964	charges, upon court order, or as otherwise provided by law.
965	539.119  Claims against purchased goods or pledged goods
966	held by pawnbrokers.-
967	(15)  CLAIMS AGAINST PURCHASED GOODS OR PLEDGED GOODS HELD
968	BY PAWNBROKERS.-
969	(1)(a)  To obtain possession of purchased or pledged goods
970	held by a pawnbroker which a claimant claims to be
971	misappropriated, the claimant must notify the pawnbroker by
972	certified mail, return receipt requested, or in person evidenced
973	by signed receipt, of the claimant's claim to the purchased or
974	pledged goods. The notice must contain a complete and accurate
975	description of the purchased or pledged goods and must be
976	accompanied by a legible copy of the applicable law enforcement
977	agency's report on the misappropriation of such property. If the
978	claimant and the pawnbroker do not resolve the matter within 10
979	days after the pawnbroker's receipt of the notice, the claimant
980	may petition the court to order the return of the property,
981	naming the pawnbroker as a defendant, and must serve the
982	pawnbroker with a copy of the petition. The pawnbroker shall
983	hold the property described in the petition until the right to
984	possession is resolved by the parties or by a court of competent
985	jurisdiction. The court shall waive any filing fee for the
986	petition to recover the property, and the sheriff shall waive
987	the service fees.
988	(2)(b)  If, after notice and a hearing, the court finds
989	that the property was misappropriated and orders the return of
990	the property to the claimant:
991	(a)1.  The claimant may recover from the pawnbroker the
992	cost of the action, including the claimant's reasonable
993	attorney's fees; and
994	(b)2.  If the conveying customer is convicted of theft, a
995	violation of this chapter section, or dealing in stolen
996	property, the court shall order the conveying customer to repay
997	the pawnbroker the full amount the conveying customer received
998	from the pawnbroker for the property, plus all applicable pawn
999	service charges. As used in this subsection paragraph, the term
1000	"convicted of" includes a plea of nolo contendere to the charges
1001	or any agreement in which adjudication is withheld; and
1002	(c)3.  The conveying customer is shall be responsible to
1003	pay all attorney's fees and taxable costs incurred by the
1004	pawnbroker in defending a replevin action or any other civil
1005	matter wherein it is found that the conveying customer violated
1006	was in violation of this subsection paragraph.
1007	(3)(c)  If the court finds that the claimant failed to
1008	comply with subsection (1) the requirements in paragraph (a) or
1009	otherwise finds against the claimant, the claimant is liable for
1010	the defendants' costs, including reasonable attorney's fees.
1011	(4)(d)  The sale, pledge, or delivery of tangible personal
1012	property to a pawnbroker by any person in this state is
1013	considered to be:
1014	(a)1.  An agreement by the person who sells, pledges, or
1015	delivers the tangible personal property that the person is
1016	subject to the jurisdiction of the court in all civil actions
1017	and proceedings arising out of the pledge or sale transaction
1018	filed by either a resident or nonresident plaintiff;
1019	(b)2.  An appointment of the Secretary of State by any
1020	nonresident of this state as that person's lawful attorney and
1021	agent upon whom may be served all process in suits pertaining to
1022	the actions and proceedings arising out of the sale, pledge, or
1023	delivery; and
1024	(c)3.  An agreement by any nonresident that any process in
1025	any suit so served has the same legal force and validity as if
1026	personally served in this state.
1027	539.121  Hold orders.-
1028	(16)  HOLD ORDERS; ISSUANCE; REQUIRED INFORMATION;
1029	PROCEDURES.-
1030	(1)(a)  When an appropriate law enforcement official has
1031	probable cause to believe that property in the possession of a
1032	pawnbroker is misappropriated, the official may place a written
1033	hold order on the property. The written hold order shall impose
1034	a holding period not to exceed 90 days unless extended by court
1035	order. The appropriate law enforcement official may rescind, in
1036	writing, any hold order. An appropriate law enforcement official
1037	may place only one hold order on property.
1038	(2)(b)  Upon the expiration of the holding period, the
1039	pawnbroker shall notify, in writing, the appropriate law
1040	enforcement official by certified mail, return receipt
1041	requested, that the holding period has expired. If, on the 10th
1042	day after the written notice has been received by the
1043	appropriate law enforcement official, the pawnbroker has not
1044	received from a court an extension of the hold order on the
1045	property and the property is not the subject of a proceeding
1046	under s. 539.119 subsection (15), title to the property shall
1047	vest in and be deemed conveyed by operation of law to the
1048	pawnbroker, free of any liability for claims but subject to any
1049	restrictions contained in the pawn transaction contract and
1050	subject 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
1054	representative of the appropriate law enforcement official or
1055	the court placing the hold order.
1056	(c)3.  If applicable, the name and address of the
1057	appropriate law enforcement official or court to which such
1058	representative is attached and the number, if any, assigned to
1059	the claim regarding the property.
1060	(d)4.  A complete description of the property to be held,
1061	including model number and serial number if applicable.
1062	(e)5.  The name of the person reporting the property to be
1063	misappropriated unless otherwise prohibited by law.
1064	(f)6.  The mailing address of the pawnbroker where the
1065	property is held.
1066	(g)7.  The expiration date of the holding period.
1067	(4)(d)  The pawnbroker or the pawnbroker's representative
1068	must sign and date a copy of the hold order as evidence of
1069	receipt of the hold order and the beginning of the 90-day
1070	holding period.
1071	(5)(a)(e)1.  Except as provided in paragraph (b)
1072	subparagraph 2., a pawnbroker may not release or dispose of
1073	property subject to a hold order except pursuant to a court
1074	order, a written release from the appropriate law enforcement
1075	official, or the expiration of the holding period of the hold
1076	order.
1077	(b)2.  While a hold order is in effect, the pawnbroker must
1078	upon request release the property subject to the hold order to
1079	the custody of the appropriate law enforcement official for use
1080	in a criminal investigation. The release of the property to the
1081	custody of the appropriate law enforcement official is not
1082	considered a waiver or release of the pawnbroker's property
1083	rights or interest in the property. Upon completion of the
1084	criminal proceeding, the property must be returned to the
1085	pawnbroker unless the court orders other disposition. When such
1086	other disposition is ordered, the court shall additionally order
1087	the conveying customer to pay restitution to the pawnbroker in
1088	the amount received by the conveying customer for the property
1089	together 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,
1093	may not:
1094	(a)  Falsify or intentionally fail to make an entry of any
1095	material matter in a pawnbroker transaction form.
1096	(b)  Refuse to allow the department agency, the appropriate
1097	law enforcement official, or the state attorney, or any of their
1098	designated representatives having jurisdiction, to inspect
1099	completed pawnbroker transaction forms or pledged or purchased
1100	goods during the ordinary hours of the pawnbroker's business or
1101	other time acceptable to both parties. The appropriate law
1102	enforcement official shall disclose to a claimant the name and
1103	address of the pawnbroker, the name and address of the conveying
1104	customer, and a description of pawned, purchased, or consigned
1105	goods that the claimant claims to be misappropriated.
1106	(c)  Obliterate, discard, or destroy a completed pawnbroker
1107	transaction form sooner than 3 years after the date of the
1108	transaction.
1109	(d)  Accept a pledge or purchase property from a person
1110	under the age of 18 years.
1111	(e)  Make any agreement requiring or allowing the personal
1112	liability of a pledgor or the waiver of any of the provisions of
1113	this chapter section.
1114	(f)  Knowingly enter into a pawn or purchase transaction
1115	with any person who is under the influence of alcohol or
1116	controlled substances when such condition is apparent, or with
1117	any person using the name of another or the registered name of
1118	another's business.
1119	(g)  Conduct any pawn or purchase transaction at a drive-
1120	through window or similar device in which the customer remains
1121	in a vehicle while conducting the transaction.
1122	(h)  Fail to return or replace pledged goods to a pledgor
1123	upon payment of the full amount due the pawnbroker, unless the
1124	pledged goods have been placed under a hold order under s.
1125	539.121 subsection (16), or taken into custody by a court or
1126	otherwise disposed of by court order.
1127	(i)  Sell or otherwise charge for insurance in connection
1128	with a pawn transaction, except in connection with the shipment
1129	of pledged goods redeemed by mail as provided in s. 539.115
1130	subsection (11).
1131	(j)  Engage in title loan transactions at, within, or
1132	adjoining 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
1135	a.m.
1136	(m)  Knowingly hire anyone to work in a pawnshop who has
1137	been convicted of, or entered a plea of guilty or nolo
1138	contendere to, or had adjudication withheld for a felony within
1139	the last 5 years, or been convicted of, or entered a plea of
1140	guilty or nolo contendere to, or had adjudication withheld for a
1141	crime within the last 5 years which involves theft, larceny,
1142	dealing in stolen property, receiving stolen property, burglary,
1143	embezzlement, obtaining property by false pretenses, possession
1144	of altered property, or any fraudulent, or dishonest dealing.
1145	(n)  Knowingly accept or receive misappropriated property
1146	from a conveying customer in a pawn or purchase transaction.
1147	(2)(6)  SUSPENSION, REVOCATION, AND SURRENDER OF LICENSE;
1148	NET WORTH REQUIREMENT.-
1149	(a)  The department agency may, after notice and a hearing,
1150	suspend or revoke any license upon a finding that:
1151	1.  The licensee, either knowingly or without the exercise
1152	of due care, has violated this chapter section or has aided or
1153	conspired with another person to violate this chapter section;
1154	2.  A condition exists that, had it existed when the
1155	license was issued, would have justified the department's
1156	agency's refusal to issue a license;
1157	3.  The licensee or its applicable agents or employees who
1158	are subject to the eligibility requirements no longer meet the
1159	eligibility requirements to hold a pawnbroker's license; or
1160	4.  The licensee has through gross negligence or willful
1161	noncompliance failed to comply with a written hold order.
1162	(b)  The department agency may conditionally license or
1163	place on probation a person whose license is has been suspended
1164	or may reprimand a licensee for a violation of this chapter
1165	section.
1166	(c)  The manner of giving notice and conducting a hearing,
1167	as required by paragraph (a), must conform to chapter 120.
1168	(d)  Any licensee may surrender a license by delivering it,
1169	by certified or registered mail, return receipt requested, to
1170	the department agency with written notice of its surrender. The
1171	surrender of a license does not affect the civil or criminal
1172	liability of the licensee for acts committed before the
1173	surrender of the license.
1174	(e)  The revocation, suspension, or surrender of a license
1175	does not impair or affect the obligation of any preexisting
1176	lawful contract between the licensee and any pledgor. Any pawn
1177	transaction made by a person without benefit of a license is
1178	voidable, in which case the person forfeits the right to collect
1179	any moneys, including principal and any charges, from the
1180	pledgor in connection with such transaction and is obligated to
1181	return to the pledgor the pledged goods in connection with such
1182	transaction.
1183	(f)  The department agency may reinstate a suspended
1184	license or issue a new license to a person whose license has
1185	been revoked, if after a hearing it determines that no fact or
1186	condition then exists that would have justified the department
1187	agency in originally refusing to issue a license.
1188	(g)  Each licensee must maintain a net worth of $50,000 or
1189	the bond specified in s. 539.105(4) subsection (4).
1190	(3)(7)  ORDERS IMPOSING PENALTIES.-
1191	(a)  The department agency may enter an order imposing one
1192	or more of the penalties set forth in paragraph (b) if the
1193	department agency finds that a pawnbroker:
1194	1.  Violated or is operating in violation of any of the
1195	provisions of this chapter section or of the rules adopted or
1196	orders issued under this chapter thereunder;
1197	2.  Made a material false statement in any application,
1198	document, or record required to be submitted or retained under
1199	this chapter section;
1200	3.  Refused or failed, or any of its principal officers has
1201	refused or failed, after notice, to produce any document or
1202	records or disclose any information required to be produced or
1203	disclosed under this chapter section or the rules adopted by of
1204	the department agency;
1205	4.  Made a material false statement in response to any
1206	request or investigation by the department agency, the
1207	Department of Legal Affairs, or the state attorney; or
1208	5.  Has intentionally defrauded the public through
1209	dishonest or deceptive means.
1210	(b)  Upon a finding as set forth in paragraph (a), the
1211	department agency may enter an order doing one or more of the
1212	following:
1213	1.  Issuing a notice of noncompliance pursuant to s.
1214	120.695.
1215	2.  Imposing an administrative fine not to exceed $5,000
1216	for each act which constitutes a violation of this chapter
1217	section or a rule or an order.
1218	3.  Directing that the pawnbroker cease and desist
1219	specified activities.
1220	4.  Refusing to license or revoking or suspending a
1221	license.
1222	5.  Placing the licensee on probation for a period of time,
1223	subject to such conditions as the department agency may specify.
1224	(c)  The administrative proceedings which could result in
1225	the entry of an order imposing any of the penalties specified in
1226	paragraph (b) are governed by chapter 120.
1227	(d)1.  When the department agency, if a violation of this
1228	chapter section occurs, has reasonable cause to believe that a
1229	person is operating in violation of this chapter section, the
1230	department agency may bring a civil action in the appropriate
1231	court for temporary or permanent injunctive relief and may seek
1232	other appropriate civil relief, including a civil penalty not to
1233	exceed $5,000 for each violation, restitution and damages for
1234	injured customers, court costs, and reasonable attorney's fees.
1235	2.  The department agency may terminate any investigation
1236	or action upon agreement by the offender to pay a stipulated
1237	civil penalty, to make restitution or pay damages to customers,
1238	or to satisfy any other relief authorized herein and requested
1239	by the department agency.
1240	(e)  The remedies provided for in this subsection shall be
1241	in addition to any other remedy provided by law.
1242	539.125  Injunctions.-
1243	(18)  INJUNCTIONS.-When the department agency has
1244	reasonable cause to believe that a person is violating this
1245	chapter section, the department agency may enter an order
1246	requiring the person to stop the violation. The department
1247	agency may petition the court to enjoin the person from engaging
1248	in the violation, continuing the violation, or doing any act in
1249	furtherance of the violation. The court may order a preliminary
1250	or permanent injunction.
1251	539.127  Criminal penalties.-
1252	(17)  CRIMINAL PENALTIES.-
1253	(1)(a)  Any person who engages in business as a pawnbroker
1254	without first securing a license commits a felony of the third
1255	degree, punishable as provided in s. 775.082, s. 775.083, or s.
1256	775.084.
1257	(2)(b)  In addition to any other penalty, any person, who
1258	willfully violates this chapter section or who willfully makes a
1259	false entry in any record specifically required by this chapter
1260	section commits a misdemeanor of the first degree, punishable as
1261	provided in s. 775.082 or s. 775.083. Clerical or recordkeeping
1262	errors, such as typographical errors or scrivener's errors,
1263	regarding any document or record required by this chapter are
1264	section do not constitute a willful violation of this section,
1265	and are not subject to criminal penalties. Clerical or
1266	recordkeeping errors are subject to the administrative remedies,
1267	as provided in this chapter act.
1268	539.131  Department of Law Enforcement; records.-
1269	(19)  RECORDS OF THE FLORIDA DEPARTMENT OF LAW
1270	ENFORCEMENT.-The Department of Law Enforcement, on request, must
1271	supply to the department agency any arrest and conviction
1272	records in its possession of an individual applying for or
1273	holding a license under this chapter section.
1274	539.133  Local ordinances.-
1275	(20)  CONFLICTING ORDINANCES.-Any county or municipality
1276	may enact ordinances that are in compliance with, but not more
1277	restrictive than this chapter section, except that local
1278	ordinances shall not require the payment of any fee or tax
1279	related to a pawn transaction or purchase unless authorized
1280	under this chapter or restrict hours of operations other than
1281	between midnight and 6 a.m. Any ordinance that conflicts with
1282	this chapter subsection is void. This section does not affect
1283	the authority of a county or municipality to establish land use
1284	controls or require a pawnbroker to obtain a local occupational
1285	license.
1286	539.135  Rulemaking authority.-
1287	(21)  RULEMAKING AUTHORITY.-The department may agency has
1288	authority to adopt rules pursuant to chapter 120 to administer
1289	implement the provisions of this chapter section.
1290	Section 8.  Section 539.109, Florida Statutes, is created
1291	to read:
1292	539.109  Statewide central database of pawnbroker and
1293	secondhand dealer transactions; oversight board.-
1294	(1)  The department shall establish and administer a
1295	statewide central database of pawnbroker and secondhand dealer
1296	transactions that are electronically transferred under ss.
1297	538.04 and 539.107.
1298	(2)(a)  There is created within the department an oversight
1299	board for the database. The board shall consist of eight
1300	members, including:
1301	1.  One member who is a licensed pawnbroker and one member
1302	who is a registered secondhand dealer, each of whom shall be
1303	appointed by the Commissioner of Agriculture.
1304	2.  Two members appointed by the Florida Police Chiefs
1305	Association, two members appointed by the Florida Sheriffs
1306	Association, and two members appointed by Florida Law
1307	Enforcement Property Recovery Unit, Inc., each of whom shall
1308	serve ex officio as voting members of the board.
1309	(b)  Members appointed by the commissioner shall be
1310	appointed to terms of 4 years, except that, to establish
1311	staggered terms, the commissioner may appoint initial members to
1312	terms shorter than 4 years.
1313	(3)(a)  The oversight board shall determine the required
1314	elements, design, and infrastructure of the database. The
1315	department shall contract for the creation and maintenance of
1316	the database according to the required elements, design, and
1317	infrastructure determined by the oversight board.
1318	(b)  The database must be maintained on a computer server
1319	that is housed or otherwise under the control of a law
1320	enforcement agency.
1321	(c)  A law enforcement agency or any agent thereof may not
1322	be charged any fee to access or use the database.
1323	(d)  An entity awarded a contract for the creation or
1324	maintenance of the database must not have any financial or
1325	operating interest in a pawnbroker or secondhand dealer in any
1326	state.
1327	Section 9.  This act shall take effect July 1, 2011.

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