Bill Text: FL S1662 | 2011 | Regular Session | Introduced
Bill Title: Pawnbroker and Secondhand Dealer Transactions
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1662 Detail]
Download: Florida-2011-S1662-Introduced.html
Florida Senate - 2011 SB 1662
By Senator Bennett
21-00627-11 20111662__
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
5 dealers from the Department of Revenue to the
6 Department of Agriculture and Consumer Services;
7 amending s. 538.04, F.S.; revising recordkeeping
8 requirements for secondhand dealer transactions;
9 revising requirements for contents and electronic
10 transfer of secondhand dealer transaction forms;
11 requiring secondhand dealers to transfer certain
12 information to a statewide central database within a
13 specified period; authorizing certain electronic
14 records to be used as evidence under certain
15 circumstances; amending s. 538.05, F.S.; conforming
16 provisions; amending s. 538.06, F.S.; revising the
17 period for which secondhand dealers must maintain
18 transaction records; amending s. 538.09, F.S.;
19 revising registration and renewal fees for secondhand
20 dealers; providing for prior notice of fee
21 adjustments; deleting provisions for the transfer of
22 certain funds; conforming provisions; amending s.
23 538.11, F.S.; revising powers and duties of the
24 Department of Agriculture and Consumer Services;
25 conforming provisions; amending s. 539.001, F.S.;
26 dividing the Florida Pawnbroking Act into multiple
27 sections; revising registration and renewal fees for
28 pawnbrokers; providing for prior notice of fee
29 adjustments; revising recordkeeping requirements for
30 pawnbrokers; revising requirements for contents and
31 electronic transfer of pawnbroker transaction forms;
32 requiring pawnbrokers to transfer certain information
33 to a statewide central database within a specified
34 period; conforming provisions; creating s. 539.109,
35 F.S.; establishing a statewide central database of
36 pawnbroker and secondhand dealer transactions;
37 providing for the required elements, design, and
38 infrastructure of the database; requiring the
39 department to contract for the creation and
40 maintenance of the database; limiting the financial
41 and operating interests of certain database
42 contractors; creating an oversight board for the
43 database; providing for membership and duties of the
44 oversight board; prohibiting law enforcement agencies
45 and their agents from being charged fees for accessing
46 or using the database; providing an effective date.
47
48 Be It Enacted by the Legislature of the State of Florida:
49
50 Section 1. Subsection (1) of section 538.03, Florida
51 Statutes, is amended to read:
52 538.03 Definitions; applicability.—
53 (1) As used in this part, the term:
54 (a)(e) “Acquire” means to obtain by purchase, consignment,
55 or trade.
56 (b)(d) “Consignment shop” means a shop engaging in the
57 business of accepting for sale, on consignment, secondhand goods
58 which, having once been used or transferred from the
59 manufacturer to the dealer, are then received into the
60 possession of a third party.
61 (c)(i) “Department” means the Department of Agriculture and
62 Consumer Services Revenue.
63 (d)(h) “Precious metals” means any item containing any
64 gold, silver, or platinum, or any combination thereof, excluding
65 any chemical or any automotive, photographic, electrical,
66 medical, or dental materials or electronic parts.
67 (e)(b) “Precious metals dealer” means a secondhand dealer
68 who normally or regularly engages in the business of buying used
69 precious metals for resale. The term does not include those
70 persons involved in the bulk sale of precious metals from one
71 secondhand or precious metals dealer to another.
72 (f)(a) “Secondhand dealer” means any person, corporation,
73 or other business organization or entity that which is not a
74 secondary metals recycler subject to part II and which is
75 engaged in the business of purchasing, consigning, or trading
76 secondhand goods.
77 (g)(f) “Secondhand goods” means personal property
78 previously owned or used, which is not regulated metals property
79 regulated under part II and which is purchased, consigned, or
80 traded as used property. The term does Such secondhand goods do
81 not include office furniture, pianos, books, clothing, organs,
82 coins, motor vehicles, costume jewelry, cardio and strength
83 training or conditioning equipment designed primarily for indoor
84 use, and secondhand sports equipment that is not permanently
85 labeled with a serial number. For purposes of this paragraph,
86 the term “secondhand sports equipment” does not include golf
87 clubs.
88 (h)(c) “Secondhand store” means the place or premises at
89 which a secondhand dealer is registered to conduct business as a
90 secondhand dealer or conducts business.
91 (i)(g) “Transaction” means any purchase, consignment, or
92 trade of secondhand goods by a secondhand dealer.
93 Section 2. Subsections (1), (6), and (7) of section 538.04,
94 Florida Statutes, are amended to read:
95 538.04 Recordkeeping requirements; penalties.—
96 (1) A secondhand dealer must dealers shall complete a
97 secondhand dealer dealers transaction form at the time of the
98 actual transaction. A secondhand dealer must shall maintain a
99 copy of a completed transaction form for at least 3 years, and
100 maintain such copy on the registered premises for at least 1
101 year, after the date of the transaction. Each transaction form
102 must However, the secondhand dealer shall maintain a copy of the
103 transaction form for not less than 3 years. Unless other
104 arrangements have been agreed upon by the secondhand dealer and
105 the appropriate law enforcement agency, the secondhand dealer
106 shall, within 24 hours after the acquisition of any secondhand
107 goods, deliver to the police department of the municipality
108 where the goods were acquired or, if the goods were acquired
109 outside of a municipality, to the sheriff’s department of the
110 county where the goods were acquired, a record of the
111 transaction on a form approved by the Department of Law
112 Enforcement. Such record shall contain:
113 (a) The time, date, and place of the transaction.
114 (b) A complete and accurate description of the goods
115 acquired, including the following information, if applicable:
116 1. Brand name.
117 2. Model number.
118 3. Manufacturer’s serial number.
119 4. Size.
120 5. Color, as apparent to the untrained eye.
121 6. Precious metal type, weight, and content if known.
122 7. Gemstone description, including the number of stones, if
123 applicable.
124 8. In the case of firearms, the type of action, caliber or
125 gauge, number of barrels, barrel length, and finish.
126 9. Any other unique identifying marks, numbers, or letters.
127 10. A digital color photograph of the goods in the
128 condition acquired.
129 (c) A description of the person from whom the goods are
130 were acquired, including:
131 1. Full name, current residential address, workplace, and
132 home and work phone numbers.
133 2. Height, weight, date of birth, race, gender, hair color,
134 eye color, and any other identifying marks.
135 3. The right thumbprint, free of smudges and smears, of the
136 person from whom the goods are were acquired.
137 4. A digital color photograph of the person from whom the
138 goods are acquired. Such photograph must be a full-face, close
139 up in which the person is not wearing a hat, sunglasses,
140 eyeglasses, or other article or item that obscures the person’s
141 identity.
142 (d) Any other information required by the form approved by
143 the department of Law Enforcement.
144 (6) If the appropriate law enforcement agency supplies A
145 secondhand dealer must, by noon of each business day, with
146 appropriate software and the secondhand dealer has computer
147 capability, secondhand dealer transactions shall be
148 electronically transfer to the statewide central database
149 established under s. 539.109 each transaction completed during
150 the previous business day transferred. If a secondhand dealer
151 does not have computer capability, the appropriate law
152 enforcement agency may provide the secondhand dealer with a
153 computer and all necessary equipment for the purpose of
154 electronically transferring secondhand dealer transactions. The
155 appropriate law enforcement agency shall retain ownership of the
156 computer, unless otherwise agreed upon. The secondhand dealer
157 shall maintain the computer in good working order, ordinary wear
158 and tear excepted. If the secondhand dealer transfers secondhand
159 dealer transactions electronically, The secondhand dealer is not
160 required to also deliver to the appropriate law enforcement
161 agency the original or copies of any the secondhand dealer
162 transaction form transferred to the statewide central database
163 forms. For the purpose of a criminal investigation, the
164 appropriate law enforcement agency may request that the
165 secondhand dealer produce an original of a transaction form that
166 is has been electronically transferred. The secondhand dealer
167 must shall deliver this form to the appropriate law enforcement
168 agency within 24 hours after the request.
169 (7) If the original transaction form is lost or destroyed
170 by the appropriate law enforcement agency, a copy or electronic
171 record of the transaction from the statewide central database
172 may be used by the secondhand dealer as evidence in court. When
173 an electronic image of a customer’s identification is accepted
174 for a transaction, the secondhand dealer must maintain the
175 electronic image in order to meet the recordkeeping requirements
176 applicable to the original transaction form. If a criminal
177 investigation occurs, the secondhand dealer shall, upon request,
178 provide a clear and legible copy of the image to the appropriate
179 law enforcement agency.
180 Section 3. Subsection (1) of section 538.05, Florida
181 Statutes, is amended to read:
182 538.05 Inspection of records and premises of secondhand
183 dealers.—
184 (1) The entire registered premises and required records of
185 each secondhand dealer are subject to inspection during regular
186 business hours by the department or any law enforcement officer
187 having jurisdiction.
188 Section 4. Subsection (5) of section 538.06, Florida
189 Statutes, is amended to read:
190 538.06 Holding period.—
191 (5) All dealers in secondhand property regulated by this
192 chapter shall maintain transaction records for 1 year 3 years.
193 Section 5. Section 538.09, Florida Statutes, is amended to
194 read:
195 538.09 Registration.—
196 (1)(a) A secondhand dealer may shall not engage in the
197 business of purchasing, consigning, or trading secondhand goods
198 from any location without registering with the department of
199 Revenue.
200 (b) A secondhand dealer, upon registering, must pay a
201 registration fee prescribed by the department not to exceed $300
202 per location. The secondhand dealer must also pay on October 1
203 of each year a renewal fee prescribed by the department not to
204 exceed the amount assessed per location according to the
205 following schedule:
206 1. One thousand three hundred dollars for each location
207 that conducts more than 500 transactions per month.
208 2. Eight hundred dollars for each location that conducts at
209 least 101, but not more than 500, transactions per month.
210 3. Three hundred dollars for each location that conducts
211 100 or fewer transactions per month.
212
213 The registration and renewal fees imposed under this paragraph
214 may not exceed the actual costs of processing transactions and
215 the department’s related expenses of administering this part.
216 The department shall annually review the fees and, if necessary,
217 adjust the amount of the fees. The department must notify
218 registered secondhand dealers in writing at least 30 days before
219 any fee adjustment.
220 (c) A fee equal to the federal and state costs for
221 processing required fingerprints must be submitted to the
222 department with each application for registration. One
223 application is required for each dealer. If a secondhand dealer
224 is the owner of more than one secondhand store location, the
225 application must list each location, and the department shall
226 issue a duplicate registration for each location. For purposes
227 of subsections (4) and (5) of this section, these duplicate
228 registrations are shall be deemed individual registrations. A
229 dealer shall pay a fee of $6 per location at the time of
230 registration and an annual renewal fee of $6 per location on
231 October 1 of each year. All fees collected, less costs of
232 administration, shall be transferred into the Operations Trust
233 Fund.
234 (d) The department of Revenue shall forward the full set of
235 fingerprints to the Department of Law Enforcement for state and
236 federal processing, if provided the federal service is
237 available, to be processed for any criminal justice information
238 as defined in s. 943.045. The department shall remit the cost of
239 processing such fingerprints shall be payable to the Department
240 of Law Enforcement by the department of Revenue.
241 (e) The department may issue a temporary registration to
242 each location pending completion of the background check by
243 state and federal law enforcement agencies, but shall revoke
244 such temporary registration if the completed background check
245 reveals a prohibited criminal background.
246 (f)1. An applicant for a secondhand dealer registration
247 must be a natural person who has reached the age of 18 years.
248 2.(a) If the applicant is a partnership, all the partners
249 must apply.
250 3.(b) If the applicant is a joint venture, association, or
251 other noncorporate entity, all members of such joint venture,
252 association, or other noncorporate entity must make application
253 for registration as natural persons.
254 4.(c) If the applicant is a corporation, the registration
255 must include the name and address of such corporation’s
256 registered agent for service of process in the state and a
257 certified copy of statement from the Secretary of State that the
258 corporation is duly organized in the state or, if the
259 corporation is organized in a state other than Florida, a
260 certified copy of statement from the Secretary of State that the
261 corporation is duly qualified to do business in this state. If
262 the dealer has more than one location, the application must list
263 each location owned by the same legal entity and the department
264 shall issue a duplicate registration for each location.
265 (2) The secondhand dealer must shall furnish with her or
266 his registration a complete set of her or his fingerprints,
267 certified by an authorized law enforcement officer, and a recent
268 full-face fullface photographic identification card of herself
269 or himself. The Department of Law Enforcement shall report its
270 findings to the department of Revenue within 30 days after the
271 date fingerprint cards are submitted for criminal justice
272 information.
273 (3) The secondhand dealer’s registration must shall be
274 conspicuously displayed at her or his registered location. A
275 secondhand dealer must hold secondhand goods at the registered
276 location until 15 days after the secondhand transaction or until
277 any extension of the holding period has expired, whichever is
278 later.
279 (4) The department may impose a civil fine of up to $10,000
280 for each violation of this section, which fine shall be
281 transferred into the General Revenue Fund. If the fine is not
282 paid within 60 days, the department may bring a civil action
283 under s. 120.69 to recover the fine.
284 (5) In addition to the fine provided in subsection (4),
285 registration under this section may be denied or any
286 registration granted may be revoked, restricted, or suspended by
287 the department if the department determines that the applicant
288 or registrant:
289 (a) Has violated any provision of this chapter or any rule
290 or order made pursuant to this chapter;
291 (b) Has made a material false statement in the application
292 for registration;
293 (c) Has been guilty of a fraudulent act in connection with
294 any purchase or sale or has been or is engaged in or is about to
295 engage in any practice, purchase, or sale which is fraudulent or
296 in violation of the law;
297 (d) Has made a misrepresentation or false statement to, or
298 concealed any essential or material fact from, any person in
299 making any purchase or sale;
300 (e) Is making purchases or sales through any business
301 associate not registered in compliance with the provisions of
302 this chapter;
303 (f) Has, within the preceding 10-year period for new
304 registrants who apply for registration on or after October 1,
305 2006, been convicted of, or has entered a plea of guilty or nolo
306 contendere to, or had adjudication withheld for, a crime against
307 the laws of this state or any other state or of the United
308 States which relates to registration as a secondhand dealer or
309 which involves theft, larceny, dealing in stolen property,
310 receiving stolen property, burglary, embezzlement, obtaining
311 property by false pretenses, possession of altered property, any
312 felony drug offense, any violation of s. 812.015, or any
313 fraudulent dealing;
314 (g) Has had a final judgment entered against her or him in
315 a civil action upon grounds of fraud, embezzlement,
316 misrepresentation, or deceit; or
317 (h) Has failed to pay any sales tax owed to the Department
318 of Revenue.
319
320 In the event the department determines to deny an application or
321 revoke a registration, it shall enter a final order with its
322 findings on the register of secondhand dealers and their
323 business associates, if any; and denial, suspension, or
324 revocation of the registration of a secondhand dealer shall also
325 deny, suspend, or revoke the registration of such secondhand
326 dealer’s business associates.
327 (6) Upon the request of a law enforcement official, the
328 department of Revenue shall release to the official the name and
329 address of any secondhand dealer registered to do business
330 within the official’s jurisdiction.
331 Section 6. Section 538.11, Florida Statutes, is amended to
332 read:
333 538.11 Powers and duties of department; rules.—The same
334 duties and privileges imposed by chapter 539 212 upon
335 pawnbrokers dealers of tangible personal property respecting the
336 keeping of books and records and accounts and compliance with
337 rules of the department shall apply to and be binding upon all
338 persons who are subject to the provisions of this chapter. The
339 department shall administer, collect, and enforce the
340 registration authorized under this chapter pursuant to the same
341 procedures used in the licensure administration, collection, and
342 enforcement of pawnbrokers the general state sales tax imposed
343 under chapter 539 212, except as provided in this section. The
344 provisions of chapter 212 regarding the keeping of records and
345 books shall apply. The department is authorized to employ
346 persons and incur other expenses for which funds are
347 appropriated by the Legislature. The department is empowered to
348 adopt such rules, and shall prescribe and publish such forms, as
349 may be necessary to effectuate the purposes of this chapter. The
350 Legislature hereby finds that the failure to promptly implement
351 the provisions of this chapter would present an immediate threat
352 to the welfare of the state. Therefore, the executive director
353 of the department is hereby authorized to adopt emergency rules
354 pursuant to s. 120.54(4), for purposes of implementing this
355 chapter. Notwithstanding any other provision of law, such
356 emergency rules shall remain effective for 6 months from the
357 date of adoption. Other rules of the department related to and
358 in furtherance of the orderly implementation of the chapter
359 shall not be subject to a rule challenge under s. 120.56(2) or a
360 drawout proceeding under s. 120.54(3)(c)2. but, once adopted,
361 shall be subject to an invalidity challenge under s. 120.56(3).
362 Such rules shall be adopted by the department Governor and
363 Cabinet and shall become effective upon filing with the
364 Department of State, notwithstanding the provisions of s.
365 120.54(3)(e)6.
366 Section 7. Section 539.001, Florida Statutes, is amended to
367 read:
368 539.101 539.001 Short title The Florida Pawnbroking Act.—
369 (1) SHORT TITLE.—This chapter section may be cited as the
370 “Florida Pawnbroking Act.”
371 539.103 Definitions.—
372 (2) DEFINITIONS.—As used in this chapter section, the term:
373 (1)(r) “Amount financed” is used interchangeably to mean
374 the same as “amount of money advanced” or “principal amount”.
375 (2)(b) “Appropriate law enforcement official” means the
376 sheriff of the county in which a pawnshop is located or, in case
377 of a pawnshop located within a municipality, the police chief of
378 the municipality in which the pawnshop is located; however, any
379 sheriff or police chief may designate as the appropriate law
380 enforcement official for the county or municipality, as
381 applicable, any law enforcement officer working within the
382 county or municipality headed by that sheriff or police chief.
383 Nothing in This subsection does not limit limits the power and
384 responsibilities of the sheriff.
385 (3)(t) “Beneficial owner” means a person who does not have
386 title to property but has rights in the property which are the
387 normal incident of owning the property.
388 (4)(c) “Claimant” means a person who claims that his or her
389 property was misappropriated.
390 (5)(d) “Conveying customer” means a person who delivers
391 property into the custody of a pawnbroker, either by pawn, sale,
392 consignment, or trade.
393 (6)(s) “Default date” means that date upon which the
394 pledgor’s right of redemption expires and absolute right, title,
395 and interest in and to the pledged goods shall vest in and shall
396 be deemed conveyed to the pawnbroker by operation of law.
397 (7)(a) “Department” “Agency” means the Department of
398 Agriculture and Consumer Services.
399 (8)(e) “Identification” means a government-issued
400 photographic identification or an electronic image taken from a
401 government-issued photographic identification.
402 (9)(f) “Misappropriated” means stolen, embezzled,
403 converted, or otherwise wrongfully appropriated against the will
404 of the rightful owner.
405 (10)(g) “Net worth” means total assets less total
406 liabilities.
407 (11)(u) “Operator” means a person who has charge of a
408 corporation or company and has control of its business, or of
409 its branch establishments, divisions, or departments, and who is
410 vested with a certain amount of discretion and independent
411 judgment.
412 (12)(h) “Pawn” means any advancement of funds on the
413 security of pledged goods on condition that the pledged goods
414 are left in the possession of the pawnbroker for the duration of
415 the pawn and may be redeemed by the pledgor on the terms and
416 conditions contained in this chapter section.
417 (13)(i) “Pawnbroker” means any person who is engaged in the
418 business of making pawns; who makes a public display containing
419 the term “pawn,” “pawnbroker,” or “pawnshop” or any derivative
420 thereof; or who publicly displays a sign or symbol historically
421 identified with pawns. A pawnbroker may also engage in the
422 business of purchasing goods which includes consignment and
423 trade.
424 (14)(j) “Pawnbroker transaction form” means the instrument
425 on which a pawnbroker records pawns and purchases as provided in
426 s. 539.109 subsection (8).
427 (15)(k) “Pawn service charge” means a charge for
428 investigating the title, storage, and insuring of the security;
429 closing the transaction; making daily reports to appropriate law
430 enforcement officials; expenses and losses; and all other
431 services.
432 (16)(l) “Pawnshop” means the location at which a pawnbroker
433 conducts business.
434 (17)(m) “Permitted vendor” means a vendor who furnishes a
435 pawnbroker with an invoice specifying the vendor’s name and
436 address, the date of the sale, a description of the items sold,
437 and the sales price, and who has an established place of
438 business, or, in the case of a secondhand dealer as defined in
439 s. 538.03, has represented in writing that such dealer has
440 complied with all applicable recordkeeping, reporting, and
441 retention requirements pertaining to goods sold or otherwise
442 delivered to a pawnbroker.
443 (18)(n) “Person” means an individual, partnership,
444 corporation, joint venture, trust, association, or other legal
445 entity.
446 (19)(o) “Pledged goods” means tangible personal property
447 that is deposited with, or otherwise delivered into the
448 possession of a pawnbroker in connection with a pawn. “Pledged
449 goods” does not include titles or any other form of written
450 security in tangible property in lieu of actual physical
451 possession, including, but not limited to, choses in action,
452 securities, printed evidence of indebtedness, or certificates of
453 title and other instruments evidencing title to separate items
454 of property, including motor vehicles. For purposes of federal
455 and state bankruptcy laws, a pledgor’s interest in his or her
456 pledged goods during the pendency of a pawn is a right of
457 redemption only.
458 (20)(p) “Pledgor” means an individual who delivers pledged
459 goods into the possession of a pawnbroker in connection with a
460 pawn.
461 (21)(q) “Purchase” means the transfer and delivery of
462 goods, by a person other than a permitted vendor, to a
463 pawnbroker by acquisition for value, consignment, or trade for
464 other goods.
465 539.105 Pawnbrokers; license required.—
466 (3) LICENSE REQUIRED.—
467 (1)(a) A person may not engage in business as a pawnbroker
468 unless the person has a valid license issued by the department
469 agency. A separate license is required for each pawnshop. The
470 department agency must issue more than one license to a person
471 if that person complies with the requirements for each license.
472 (b) A licensee who seeks to move a pawnshop to another
473 location must give 30 days’ prior written notice to the
474 department agency by certified or registered mail, return
475 receipt requested, upon which and the department agency must
476 then amend the license to indicate the new location. The
477 licensee must also give such written notice to the appropriate
478 law enforcement official.
479 (c) Each license is valid for a period of 1 year unless it
480 is earlier relinquished, suspended, or revoked. Each license
481 must shall be renewed annually.
482 (2) A pawnbroker, upon licensure, must and each licensee
483 shall, initially and annually thereafter, pay to the agency a
484 license fee prescribed by the department not to exceed $500. The
485 pawnbroker must pay an annual renewal fee prescribed by the
486 department not to exceed the amount assessed per location
487 according to the following schedule: of $300 for each license
488 held.
489 (a) One thousand five hundred dollars for each location
490 that conducts more than 1,000 transactions per month.
491 (b) One thousand dollars for each location that conducts at
492 least 151, but not more than 1,000, transactions per month.
493 (c) Five hundred dollars for each location that conducts
494 150 or fewer transactions per month.
495
496 The license and renewal fees imposed under this subsection may
497 not exceed the actual costs of processing transactions and the
498 department’s related expenses of administering this chapter. The
499 department shall annually review the fees and, if necessary,
500 adjust the amount of the fees. The department must notify
501 licensed pawnbrokers in writing at least 30 days before any fee
502 adjustment.
503 (3)(a)(d) The department agency may issue a temporary
504 pawnbroker’s license for the operation of a pawnshop either upon
505 receipt of an application to transfer an existing license from
506 one person to another or upon receipt of an application for a
507 license involving principals and owners that are substantially
508 identical to those of the existing licensee. The temporary
509 license is effective until the permanent license is issued or
510 denied by the department agency.
511 (b)(e) A person must apply to the department agency for a
512 new license or for a temporary license upon any change, directly
513 or beneficially, in the ownership of any pawnshop. An
514 application for a license or an application to transfer an
515 existing license is not required upon any change, directly or
516 beneficially, in the ownership of a pawnshop if one or more
517 holders of at least 90 percent of the outstanding equity
518 interest of the pawnshop before the change in ownership continue
519 to hold at least 90 percent of the outstanding equity interest
520 after the change in ownership.
521 (c)(f) Any person applying for or renewing a local
522 occupational license to engage in business as a pawnbroker must
523 exhibit a current license from the department agency before the
524 local occupational license may be issued or reissued.
525 (4) ELIGIBILITY FOR LICENSE.—
526 (a) To be eligible for a pawnbroker’s license, an applicant
527 must:
528 1. Be of good moral character;
529 2. Have a net worth of at least $50,000 or file with the
530 department agency a bond issued by a surety company qualified to
531 do business in this state in the amount of $10,000 for each
532 license. In lieu of the bond required in this section, the
533 applicant may establish a certificate of deposit or an
534 irrevocable letter of credit in a Florida banking institution in
535 the amount of the bond. The original bond, certificate of
536 deposit, or letter of credit shall be filed with the department
537 agency, and the department agency shall be the beneficiary to
538 said document. The bond, certificate of deposit, or letter of
539 credit shall be in favor of the department agency for the use
540 and benefit of any consumer who is injured by the fraud,
541 misrepresentation, breach of contract, financial failure, or
542 violation of any provision of this chapter section by the
543 pawnbroker. Such liability may be enforced either by proceeding
544 in an administrative action or by filing a judicial suit at law
545 in a court of competent jurisdiction. However, in such court
546 suit, the bond, certificate of deposit, or letter of credit
547 posted with the department agency shall not be amenable or
548 subject to any judgment or other legal process issuing out of or
549 from such court in connection with such lawsuit, but such bond,
550 certificate of deposit, or letter of credit shall be amenable to
551 and enforceable only by and through administrative proceedings
552 before the department agency. It is the intent of the
553 Legislature that such bond, certificate of deposit, or letter of
554 credit shall be applicable and liable only for the payment of
555 claims duly adjudicated by order of the department agency. The
556 bond, certificate of deposit, or letter of credit shall be
557 payable on a pro rata basis as determined by the department
558 agency, but the aggregate amount may not exceed the amount of
559 the bond, certificate of deposit, or letter of credit;
560 3. Not have been convicted of, or found guilty of, or pled
561 guilty or nolo contendere to, or not have been incarcerated
562 within the last 10 years as a result of having previously been
563 convicted of, or found guilty of, or pled guilty or nolo
564 contendere to, regardless of adjudication, a felony within the
565 last 10 years and not be acting as a beneficial owner for
566 someone who has been convicted of, or found guilty of, or pled
567 guilty or nolo contendere to, regardless of adjudication, a
568 felony within the last 10 years; and
569 4. Not have been convicted of, or found guilty of, or pled
570 guilty or nolo contendere to, or not have been incarcerated
571 within the last 10 years as a result of having previously been
572 convicted of, or found guilty of, or pled guilty or nolo
573 contendere to, regardless of adjudication, a crime that involves
574 theft, larceny, dealing in stolen property, receiving stolen
575 property, burglary, embezzlement, obtaining property by false
576 pretenses, possession of altered property, or any other
577 fraudulent or dishonest dealing within the last 10 years, and
578 not be acting as a beneficial owner for someone who has been
579 convicted, of, or found guilty of, or pled guilty or nolo
580 contendere to, or has been incarcerated within the last 10 years
581 as a result of having previously been convicted of, or found
582 guilty of, or pled guilty or nolo contendere to, regardless of
583 adjudication, a crime that involves theft, larceny, dealing in
584 stolen property, receiving stolen property, burglary,
585 embezzlement, obtaining property by false pretenses, possession
586 of altered property, or any other fraudulent or dishonest
587 dealing within the last 10 years.
588 (b) Any applicant claiming to have a net worth of $50,000
589 or more shall file with the department agency, at the time of
590 applying for a license, the following documentation:
591 1. A current financial statement prepared by a Florida
592 certified public accountant; or
593 2. An affidavit stating the applicant’s net worth is at
594 least $50,000, accompanied by supporting documentation; or
595 3. If the applicant is a corporation, a copy of the
596 applicant’s most recently filed federal tax return.
597
598 If the department agency cannot verify that the applicant meets
599 the net worth requirement for a license, the department agency
600 may require a finding, including the presentation of a current
601 balance sheet, by an accounting firm or individual holding a
602 permit to practice public accounting in this state, that the
603 accountant has reviewed the books and records of the applicant
604 and that the applicant meets the net worth requirement.
605 (c) If an applicant for a pawnbroker’s license is not an
606 individual, the eligibility requirements of this subsection,
607 other than the requirements of subparagraph (a)2., apply to each
608 operator of the pawnshop and to each direct or beneficial owner
609 of at least 10 percent of the outstanding equity interest of the
610 pawnshop and, if the applicant is a corporation, to each officer
611 and director of the corporation.
612 (5) APPLICATION FOR LICENSE.—
613 (a) An application for a pawnbroker’s license, for the
614 transfer of an existing pawnbroker’s license, or for the
615 approval of a change in the ownership of a licensee’s pawnshop
616 must be under oath and must state the full name and place of
617 residence of the applicant, the place where the business is to
618 be conducted, and other relevant information required by the
619 department agency.
620 (b)1. If the applicant is not an individual, the applicant
621 must state the full name and address of each direct or
622 beneficial owner of at least a 10-percent equity interest in
623 such person. If the applicant is a corporation, the application
624 must also state the full name and address of each officer and
625 director.
626 2. Notwithstanding the provisions of subparagraph 1., the
627 application need not state the full name and address of each
628 officer, director, and shareholder if the applicant is owned
629 directly or beneficially by a person that as an issuer has a
630 class of securities registered under s. 12 of the Securities
631 Exchange Act of 1934, or under s. 15(d) thereof, and is an
632 issuer of registered securities required to file reports with
633 the Securities and Exchange Commission and if the person files
634 with the department agency the information, documents, and
635 reports required to be filed with the Securities and Exchange
636 Commission.
637 (c) Each initial application for a license must be
638 accompanied by a complete set of fingerprints taken by an
639 authorized law enforcement officer, $300 for the first year’s
640 license fee, and the actual cost to the department agency for
641 fingerprint analysis for each person subject to the eligibility
642 requirements. The department agency shall submit the
643 fingerprints to the Department of Law Enforcement for state
644 processing, and the Department of Law Enforcement shall forward
645 the fingerprints to the Federal Bureau of Investigation for a
646 national criminal history check. These fees and costs are not
647 refundable.
648 (d) When the application and the required fees are
649 received, the department agency shall investigate the facts,
650 approve the application, and issue a license to the applicant if
651 the department agency finds that the eligibility requirements
652 for the license are satisfied. The license must be prominently
653 displayed at the front desk or counter at each pawnshop.
654 (e) Fees and fines collected under this chapter section by
655 the department agency shall be deposited into the General
656 Inspection Trust Fund.
657 539.107 Pawnbroker transaction form; recordkeeping.—
658 (8) PAWNBROKER TRANSACTION FORM.—
659 (1)(a) At the time the pawnbroker enters into any pawn or
660 purchase transaction, the pawnbroker shall complete a pawnbroker
661 transaction form for such transaction, including an indication
662 of whether the transaction is a pawn or a purchase, and the
663 pledgor or seller shall sign such completed form.
664 (2) The department agency must approve the design and
665 format of the pawnbroker transaction form, which must be 8 1/2
666 inches x 11 inches in size and elicit the information required
667 under this section. In completing the pawnbroker transaction
668 form, the pawnbroker shall record the following information,
669 which must be typed or written indelibly and legibly in English.
670 (b) The front of the pawnbroker transaction form must
671 include:
672 (a)1. The name and address of the pawnshop.
673 (b)2. A complete and accurate description of the pledged
674 goods or purchased goods, including the following information,
675 if applicable:
676 1.a. Brand name.
677 2.b. Model number.
678 3.c. Manufacturer’s serial number.
679 4.d. Size.
680 5.e. Color, as apparent to the untrained eye.
681 6.f. Precious metal type, weight, and content, if known.
682 7.g. Gemstone description, including the number of stones.
683 8.h. In the case of firearms, the type of action, caliber
684 or gauge, number of barrels, barrel length, and finish.
685 9.i. Any other unique identifying marks, numbers, names, or
686 letters.
687 10. A digital color photograph of the pledged or purchased
688 goods in the condition acquired.
689
690 Notwithstanding subparagraphs 1.-10. sub-subparagraphs a.-i., in
691 the case of multiple items of a similar nature delivered
692 together in one transaction which do not bear serial or model
693 numbers and which do not include precious metal or gemstones,
694 such as musical or video recordings, books, and hand tools, the
695 description of the items is adequate if it contains the quantity
696 of items and a description of the type of items delivered.
697 (c)3. The name, address, home telephone number, place of
698 employment, date of birth, and physical description, and right
699 thumbprint of the pledgor or seller.
700 (d) The right thumbprint, free of smudges or smears, of the
701 pledgor or seller.
702 (e) A digital color photograph of the pledgor or seller.
703 Such photograph must be a full-face, close-up in which the
704 pledgor or seller is not wearing a hat, sunglasses, eyeglasses,
705 or other article or item that obscures the pledgor’s or seller’s
706 identity.
707 (f)4. The date and time of the transaction.
708 (g)5. The type of identification accepted from the pledgor
709 or seller, including the issuing department agency and the
710 identification number.
711 (h)6. In the case of a pawn:
712 1.a. The amount of money advanced, which must be designated
713 as the amount financed;
714 2.b. The maturity date of the pawn, which must be 30 days
715 after the date of the pawn;
716 3.c. The default date of the pawn and the amount due on the
717 default date;
718 4.d. The total pawn service charge payable on the maturity
719 date, which must be designated as the finance charge;
720 5.e. The amount financed plus the finance charge that must
721 be paid to redeem the pledged goods on the maturity date, which
722 must be designated as the total of payments;
723 6.f. The annual percentage rate, computed according to the
724 regulations adopted by the Federal Reserve Board under the
725 federal Truth in Lending Act; and
726 7.g. The front or back of the pawnbroker transaction form
727 must include a statement that:
728 a.(I) Any personal property pledged to a pawnbroker within
729 this state which is not redeemed within 30 days following the
730 maturity date of the pawn, if the 30th day is not a business
731 day, then the following business day, is automatically forfeited
732 to the pawnbroker, and absolute right, title, and interest in
733 and to the property vests in and is deemed conveyed to the
734 pawnbroker by operation of law, and no further notice is
735 necessary;
736 b.(II) The pledgor is not obligated to redeem the pledged
737 goods; and
738 c.(III) If the pawnbroker transaction form is lost,
739 destroyed, or stolen, the pledgor must immediately advise the
740 issuing pawnbroker in writing by certified or registered mail,
741 return receipt requested, or in person evidenced by a signed
742 receipt.
743 d.(IV) A pawn may be extended upon mutual agreement of the
744 parties.
745 (i)7. In the case of a purchase, the amount of money paid
746 for the goods or the monetary value assigned to the goods in
747 connection with the transaction.
748 (j)8. A statement that the pledgor or seller of the item
749 represents and warrants that it is not stolen, that it has no
750 liens or encumbrances against it, and that the pledgor or seller
751 is the rightful owner of the goods and has the right to enter
752 into the transaction.
753 (3) Any person who knowingly gives false verification of
754 ownership or gives a false or altered identification and who
755 receives money from a pawnbroker for goods sold or pledged
756 commits:
757 (a)a. If the value of the money received is less than $300,
758 a felony of the third degree, punishable as provided in s.
759 775.082, s. 775.083, or s. 775.084.
760 (b)b. If the value of the money received is $300 or more, a
761 felony of the second degree, punishable as provided in s.
762 775.082, s. 775.083, or s. 775.084.
763 (4)(c) A pawnbroker transaction form must provide a space
764 for the imprint of the right thumbprint of the pledgor or seller
765 and a blank line for the signature of the pledgor or seller.
766 (5)(d) At the time of the pawn or purchase transaction, the
767 pawnbroker shall deliver to the pledgor or seller an exact copy
768 of the completed pawnbroker transaction form.
769 (9) RECORDKEEPING; REPORTING; HOLD PERIOD.—
770 (6)(a) A pawnbroker must maintain a copy of each completed
771 pawnbroker transaction form on the pawnshop premises for at
772 least 1 year after the date of the transaction. On or before the
773 end of each business day, the pawnbroker must deliver to the
774 appropriate law enforcement official the original pawnbroker
775 transaction forms for each of the transactions occurring during
776 the previous business day, unless other arrangements have been
777 agreed upon between the pawnbroker and the appropriate law
778 enforcement official. If the original transaction form is lost
779 or destroyed by the appropriate law enforcement official, a copy
780 may be used by the pawnbroker as evidence in court. When an
781 electronic image of a pledgor or seller identification is
782 accepted for a transaction, the pawnbroker must maintain the
783 electronic image in order to meet the same recordkeeping
784 requirements as for the original transaction form. If a criminal
785 investigation occurs, the pawnbroker shall, upon request,
786 provide a clear and legible copy of the image to the appropriate
787 law enforcement official.
788 (7)(b) A If the appropriate law enforcement agency supplies
789 the appropriate software and the pawnbroker must, by noon of
790 each business day, presently has the computer ability, pawn
791 transactions shall be electronically transfer to the statewide
792 central database established under s. 539.109 each transaction
793 completed during the previous business day transferred. If a
794 pawnbroker does not presently have the computer ability, the
795 appropriate law enforcement agency may provide the pawnbroker
796 with a computer and all necessary equipment for the purpose of
797 electronically transferring pawn transactions. The appropriate
798 law enforcement agency shall retain ownership of the computer,
799 unless otherwise agreed upon. The pawnbroker shall maintain the
800 computer in good working order, ordinary wear and tear excepted.
801 In the event the pawnbroker transfers pawn transactions
802 electronically, The pawnbroker is not required to also deliver
803 to the appropriate law enforcement official the original or
804 copies of any the pawnbroker transaction form transferred to the
805 statewide central database forms. The appropriate law
806 enforcement official may, for the purposes of a criminal
807 investigation, request that the pawnbroker produce an original
808 of a transaction form that is has been electronically
809 transferred. The pawnbroker must shall deliver this form to the
810 appropriate law enforcement official within 24 hours of the
811 request.
812 (8)(c) All goods delivered to a pawnbroker in a pawn or
813 purchase transaction must be securely stored and maintained in
814 an unaltered condition within the jurisdiction of the
815 appropriate law enforcement official for a period of 30 calendar
816 days after the transaction. Those goods delivered to a
817 pawnbroker in a purchase transaction may not be sold or
818 otherwise disposed of before the expiration of such period. The
819 pawnbroker shall make all pledged and purchased goods and all
820 records relating to such goods available for inspection by the
821 appropriate law enforcement official during normal business
822 hours throughout such period. The pawnbroker must store and
823 maintain pledged goods for the period prescribed in s. 539.111
824 subsection (10) unless the pledged goods are redeemed earlier.;
825 provided, However, that within the first 30 days after the
826 original pawn, the pledged goods may be redeemed only by the
827 pledgor or the pledgor’s attorney in fact.
828 539.111 Pledged goods not redeemed.—
829 (10) PLEDGED GOODS NOT REDEEMED.—Pledged goods not redeemed
830 by the pledgor on or before the maturity date of a pawn must be
831 held by the pawnbroker for at least 30 days following such date
832 or until the next business day, if the 30th day is not a
833 business day. Pledged goods not redeemed within the 30-day
834 period following the maturity date of a pawn are automatically
835 forfeited to the pawnbroker; absolute right, title, and interest
836 in and to the goods shall vest in and shall be deemed conveyed
837 to the pawnbroker by operation of law; and no further notice is
838 necessary. A pledgor does not have an has no obligation to
839 redeem pledged goods or make any payment on a pawn.
840 539.113 Right to redeem; lost pawnbroker transaction 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 for
890 and receive a pawn service charge. The interest component of the
891 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 that
989 the property was misappropriated and orders the return of the
990 property to the claimant:
991 (a)1. The claimant may recover from the pawnbroker the cost
992 of the action, including the claimant’s reasonable attorney’s
993 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 pay
1003 all attorney’s fees and taxable costs incurred by the pawnbroker
1004 in defending a replevin action or any other civil matter wherein
1005 it is found that the conveying customer violated was in
1006 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 license
1155 was issued, would have justified the department’s agency’s
1156 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 license
1184 or issue a new license to a person whose license has been
1185 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 dishonest
1209 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 for
1216 each act which constitutes a violation of this chapter section
1217 or a rule or an order.
1218 3. Directing that the pawnbroker cease and desist specified
1219 activities.
1220 4. Refusing to license or revoking or suspending a license.
1221 5. Placing the licensee on probation for a period of time,
1222 subject to such conditions as the department agency may specify.
1223 (c) The administrative proceedings which could result in
1224 the entry of an order imposing any of the penalties specified in
1225 paragraph (b) are governed by chapter 120.
1226 (d)1. When the department agency, if a violation of this
1227 chapter section occurs, has reasonable cause to believe that a
1228 person is operating in violation of this chapter section, the
1229 department agency may bring a civil action in the appropriate
1230 court for temporary or permanent injunctive relief and may seek
1231 other appropriate civil relief, including a civil penalty not to
1232 exceed $5,000 for each violation, restitution and damages for
1233 injured customers, court costs, and reasonable attorney’s fees.
1234 2. The department agency may terminate any investigation or
1235 action upon agreement by the offender to pay a stipulated civil
1236 penalty, to make restitution or pay damages to customers, or to
1237 satisfy any other relief authorized herein and requested by the
1238 department agency.
1239 (e) The remedies provided for in this subsection shall be
1240 in addition to any other remedy provided by law.
1241 539.125 Injunctions.—
1242 (18) INJUNCTIONS.—When the department agency has reasonable
1243 cause to believe that a person is violating this chapter
1244 section, the department agency may enter an order requiring the
1245 person to stop the violation. The department agency may petition
1246 the court to enjoin the person from engaging in the violation,
1247 continuing the violation, or doing any act in furtherance of the
1248 violation. The court may order a preliminary or permanent
1249 injunction.
1250 539.127 Criminal penalties.—
1251 (17) CRIMINAL PENALTIES.—
1252 (1)(a) Any person who engages in business as a pawnbroker
1253 without first securing a license commits a felony of the third
1254 degree, punishable as provided in s. 775.082, s. 775.083, or s.
1255 775.084.
1256 (2)(b) In addition to any other penalty, any person, who
1257 willfully violates this chapter section or who willfully makes a
1258 false entry in any record specifically required by this chapter
1259 section commits a misdemeanor of the first degree, punishable as
1260 provided in s. 775.082 or s. 775.083. Clerical or recordkeeping
1261 errors, such as typographical errors or scrivener’s errors,
1262 regarding any document or record required by this chapter are
1263 section do not constitute a willful violation of this section,
1264 and are not subject to criminal penalties. Clerical or
1265 recordkeeping errors are subject to the administrative remedies,
1266 as provided in this chapter act.
1267 539.131 Department of Law Enforcement; records.—
1268 (19) RECORDS OF THE FLORIDA DEPARTMENT OF LAW ENFORCEMENT.
1269 The Department of Law Enforcement, on request, must supply to
1270 the department agency any arrest and conviction records in its
1271 possession of an individual applying for or holding a license
1272 under this chapter section.
1273 539.133 Local ordinances.—
1274 (20) CONFLICTING ORDINANCES.—Any county or municipality may
1275 enact ordinances that are in compliance with, but not more
1276 restrictive than this chapter section, except that local
1277 ordinances shall not require the payment of any fee or tax
1278 related to a pawn transaction or purchase unless authorized
1279 under this chapter or restrict hours of operations other than
1280 between midnight and 6 a.m. Any ordinance that conflicts with
1281 this chapter subsection is void. This section does not affect
1282 the authority of a county or municipality to establish land use
1283 controls or require a pawnbroker to obtain a local occupational
1284 license.
1285 539.135 Rulemaking authority.—
1286 (21) RULEMAKING AUTHORITY.—The department may agency has
1287 authority to adopt rules pursuant to chapter 120 to administer
1288 implement the provisions of this chapter section.
1289 Section 8. Section 539.109, Florida Statutes, is created to
1290 read:
1291 539.109 Statewide central database of pawnbroker and
1292 secondhand dealer transactions; oversight board.—
1293 (1) The department shall establish and administer a
1294 statewide central database of pawnbroker and secondhand dealer
1295 transactions that are electronically transferred under ss.
1296 538.04 and 539.107.
1297 (2)(a) There is created within the department an oversight
1298 board for the database. The board shall consist of eight
1299 members, including:
1300 1. One member who is a licensed pawnbroker and one member
1301 who is a registered secondhand dealer, each of whom shall be
1302 appointed by the Commissioner of Agriculture.
1303 2. Two members appointed by the Florida Police Chiefs
1304 Association, two members appointed by the Florida Sheriffs
1305 Association, and two members appointed by the Florida Law
1306 Enforcement Property Recovery Unit, Inc., each of whom shall
1307 serve ex officio as voting members of the board.
1308 (b) Members appointed by the commissioner shall be
1309 appointed to terms of 4 years, except that, to establish
1310 staggered terms, the commissioner may appoint initial members to
1311 terms shorter than 4 years.
1312 (3)(a) The oversight board shall determine the required
1313 elements, design, and infrastructure of the database. The
1314 department shall contract for the creation and maintenance of
1315 the database according to the required elements, design, and
1316 infrastructure determined by the oversight board.
1317 (b) The database must be maintained on a computer server
1318 that is housed or otherwise under the control of a law
1319 enforcement agency.
1320 (c) A law enforcement agency or any agent thereof may not
1321 be charged any fee to access or use the database.
1322 (d) An entity awarded a contract for the creation or
1323 maintenance of the database must not have any financial or
1324 operating interest in a pawnbroker or secondhand dealer in any
1325 state.
1326 Section 9. This act shall take effect July 1, 2011.
