Bill Text: MS SB2586 | 2013 | Regular Session | Introduced
Bill Title: Mississippi Pawnbroker Act; revise several provisions of.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-02-05 - Died In Committee [SB2586 Detail]
Download: Mississippi-2013-SB2586-Introduced.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Business and Financial Institutions; Accountability, Efficiency, Transparency
By: Senator(s) Jackson (15th)
Senate Bill 2586
AN ACT TO REVISE SEVERAL PROVISIONS OF THE MISSISSIPPI PAWNSHOP ACT; TO AMEND SECTION 75-67-321, MISSISSIPPI CODE OF 1972, TO REMOVE THE REFERENCES TO THE TRANSFER OF AN EXISTING LICENSE; TO DELETE THE PROVISIONS THAT THE AMOUNT OF THE LICENSE FEE AND RENEWAL FEE INCLUDE PREMIUMS FOR EXAMINATIONS; TO AMEND SECTION 75-67-323, MISSISSIPPI CODE OF 1972, TO DELETE THE PROVISION THAT REQUIRES THE COMMISSIONER OF BANKING TO FORWARD THE SET OF FINGERPRINTS SUBMITTED WITH AN APPLICATION FOR A LICENSE TO THE DEPARTMENT OF PUBLIC SAFETY; TO AMEND SECTION 75-67-325, MISSISSIPPI CODE OF 1972, TO UPDATE THE STATUTORY REFERENCE TO THE ADMINISTRATIVE PROCEDURES ACT; TO AMEND SECTION 75-67-327, MISSISSIPPI CODE OF 1972, TO REMOVE THE REFERENCE TO THE TRANSFER OF AN EXISTING LICENSE; TO AMEND SECTION 75-67-333, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE CIVIL PENALTIES IMPOSED BY THE COMMISSIONER FOR VIOLATIONS OF THE PAWNSHOP ACT WILL BE DEPOSITED INTO THE CONSUMER FINANCE FUND OF THE DEPARTMENT OF BANKING INSTEAD OF INTO THE STATE GENERAL FUND; TO AMEND SECTION 75-67-341, MISSISSIPPI CODE OF 1972, TO DELETE THE PROVISION THAT THE EXPENSES INCURRED FOR EXAMINATIONS OF PAWNSHOPS ARE INCLUDED IN THE LICENSEE'S APPLICATION FEE; TO AUTHORIZE THE COMMISSIONER TO CHARGE THE LICENSEE AN EXAMINATION FEE FOR EACH OFFICE OR LOCATION PLUS ANY ACTUAL EXPENSES; TO PROVIDE THAT A LICENSEE MAY NOT BE EXAMINED MORE THAN ONCE IN A TWO-YEAR PERIOD UNLESS FOR CAUSE SHOWN AND/OR OTHER EXIGENT REASONS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-67-321, Mississippi Code of 1972, is amended as follows:
75-67-321. (1) A person
may not engage in business as a pawnbroker or otherwise portray himself as a
pawnbroker unless the person has a valid license authorizing engagement in the
business. A separate license is required for each place of business under this
article. The commissioner may issue more than one (1) license to a person if
that person complies with this article for each license. A new license * * *
is required upon a change, directly or beneficially, in the ownership of any
licensed pawnshop and an application shall be made to the commissioner in
accordance with this article.
(2) When a licensee wishes to move a pawnshop to another location, the licensee shall give thirty (30) days' prior written notice to the commissioner who shall amend the license accordingly.
(3) Each license shall
remain in full force and effect until relinquished, suspended, revoked or
expired. With each initial application for a license, the applicant shall pay
the commissioner a license fee * * * of
Five Hundred Dollars ($500.00), and on or before December 1 of each year
thereafter, an annual renewal fee * * * of
Three Hundred Fifty Dollars ($350.00). However, when more than one (1) license
to an applicant is issued, the commissioner, for each subsequent license, may
only impose a fee * * * of Three Hundred Fifty
Dollars ($350.00) at the time of application, and an annual renewal fee * * * of
Three Hundred Fifty Dollars ($350.00) on or before December 1 of each year
thereafter. If the annual fee remains unpaid thirty (30) days after December
1, the license shall thereupon expire, but not before December 31 of any year
for which the annual fee has been paid. If any person engages in business as
provided for in this article without paying the license fee provided for in
this article commencing business or before the expiration of the person's
current license, as the case may be, then the person shall be liable for the
full amount of the license fee, plus a penalty in an amount not to exceed
Twenty-five Dollars ($25.00) for each day that the person has engaged in such
business without a license or after the expiration of a license. All licensing
fees and penalties authorized in this section shall be paid into the Consumer
Finance Fund of the Department of Banking and Consumer Finance.
(4) Notwithstanding other
provisions of this article, the commissioner may issue a temporary license
authorizing the * * * licensee to operate a pawnshop on the receipt of an
application * * * for a license
involving principals and owners that are substantially identical to those of an
existing licensed pawnshop. The temporary license is effective until the
permanent license is issued or denied.
(5) Notwithstanding other provisions of this article, neither a new license nor an application to transfer an existing license shall be required upon any change, directly or beneficially, in the ownership of any licensed pawnshop incorporated under the laws of this state or any other state so long as the licensee continues to operate as a corporation doing a pawnshop business under the license. The commissioner may, however, require the licensee to provide such information as he deems reasonable and appropriate concerning the officer and directors of the corporation and persons owning in excess of twenty-five percent (25%) of the outstanding shares of the corporation.
SECTION 2. Section 75-67-323, Mississippi Code of 1972, is amended as follows:
75-67-323. (1) To be eligible for a pawnbroker license, an applicant shall:
(a) Operate lawfully and fairly within the purposes of this article;
(b) Not have been convicted of a felony in the last ten (10) years or be active as a beneficial owner for someone who has been convicted of a felony in the last ten (10) years;
(c) File with the commissioner a bond with good security in the penal sum of Ten Thousand Dollars ($10,000.00), payable to the State of Mississippi for the faithful performance by the licensee of the duties and obligations pertaining to the business so licensed and the prompt payment of any judgment which may be recovered against such licensee on account of damages or other claim arising directly or collaterally from any violation of the provisions of this article; such bond shall not be valid until it is approved by the commissioner; such applicant may file, in lieu thereof, cash, a certificate of deposit, or government bonds in the amount of Ten Thousand Dollars ($10,000.00); such deposit shall be filed with the commissioner and is subject to the same terms and conditions as are provided for in the surety bond required herein; any interest or earnings on such deposits are payable to the depositor;
(d) File with the commissioner an application accompanied by the initial license fee required in this article;
(e) Submit a set of
fingerprints from any local law enforcement agency. In order to determine the
applicant's suitability for license, the commissioner shall forward the
fingerprints to the * * * Federal Bureau of Investigation, and any
governmental agency or entity authorized to receive that information for a state,
national and international criminal history record check.
(2) Every licensee shall post his license in a conspicuous place at each place of business.
(3) Every licensee shall post and display a sign which measures at least twenty (20) inches by twenty (20) inches in a conspicuous place and in easy view of all persons who enter the place of business. The sign shall display bold, blocked letters, easily readable, with the following information: "This pawnshop is licensed and regulated by the Mississippi Department of Banking and Consumer Finance. If you encounter any unresolved problem with a transaction at this location, you are entitled to assistance. Please call or write: Mississippi Department of Banking and Consumer Finance, Post Office Drawer 23729, Jackson, MS 39225-3729; Phone 1-800-844-2499."
(4) From and after December 1, 2010, each application for an initial license shall include evidence of the satisfactory completion of at least six (6) hours of approved prelicensing education, and each application for renewal shall include evidence of the satisfactory completion of at least six (6) hours of approved continuing education, by the owners or designated representative in pawnbroker transactions. Two (2) of the six (6) hours shall consist of instruction on the Mississippi Pawnshop Act and shall be approved by the department once the course is approved by the Mississippi Pawnbrokers Association or the National Pawnbrokers Association.
SECTION 3. Section 75-67-325, Mississippi Code of 1972, is amended as follows:
75-67-325. (1) The commissioner may, after notice and hearing, suspend or revoke any license if it finds that:
(a) The licensee, either knowingly, or without the exercise of due care to prevent the same, has violated any provision of this article;
(b) Any fact or condition exists which, if it had existed or had been known to exist at the time of the original application for such license, clearly would have justified the commissioner in refusing such license;
(c) The licensee has aided, abetted or conspired with an individual or person to circumvent or violate the requirement of this article;
(d) The licensee, or a legal or beneficial owner of the license, has been convicted of a crime that the commissioner finds directly relates to the duties and responsibilities of the occupation of pawnbroker.
(2) The commissioner may conditionally license or place on probation a person whose license has been suspended or may reprimand a licensee for a violation of this article.
(3) The manner of giving
notice and conducting a hearing as required by subsection (1) of this section
shall be performed in accordance with Mississippi Administrative Procedures
Law, Section * * *
25-43-1.101 et seq. * * *.
(4) Any licensee may surrender any license by delivering it to the commissioner with written notice of its surrender, but such surrender shall not affect the licensee's civil or criminal liability for acts committed prior thereto.
(5) No revocation, suspension or surrender of any license shall impair or affect the obligation of any pre-existing lawful contract between the licensee and any pledgor. Any pawn transaction made without benefit of license is void.
(6) The commissioner may reinstate suspended licenses or issue new licenses to a person whose license or licenses have been revoked if no fact or condition then exists which clearly would have justified the commissioner in refusing originally to issue a license under this article.
(7) The appropriate local law enforcement agency shall be notified of any licensee who has his license suspended or revoked as provided by this article.
(8) The Commissioner of Banking shall enforce the provisions of this section.
SECTION 4. Section 75-67-327, Mississippi Code of 1972, is amended as follows:
75-67-327. (1) An
application for a new pawnshop license * * *
or the approval of a change in the ownership of a licensed pawnshop shall be
under oath and shall state the full name and place of residence of the
applicant, the place where the business is to be conducted and other relevant
information required by the commissioner. If the applicant is a partnership,
the application shall state the full name of each partner. If the applicant is
a corporation, the application shall state the full name and address of each
officer, shareholder and director.
(2) Notwithstanding the * * * provisions of this article,
the application need not state the full name and address of each shareholder,
if the applicant is owned directly or beneficially by a person which as an issuer
has a class of securities registered pursuant to Section 12 of the Securities
Exchange Act of 1934 or is an issuer of securities which is required to file
reports with the Securities and Exchange Commission pursuant to Section 15(d)
of the Securities Exchange Act, provided that such person files with the
commissioner such information, documents and reports as are required by the
provision of the Securities Exchange Act to be filed by such issuer with the
Securities and Exchange Commission.
SECTION 5. Section 75-67-333, Mississippi Code of 1972, is amended as follows:
75-67-333. (1) In addition to any other penalty which may be applicable, any licensee or employee who willfully violates any provision of this article, or who willfully makes a false entry in any record specifically required by this article, shall be guilty of a misdemeanor and upon conviction thereof, shall be punishable by a fine not in excess of One Thousand Dollars ($1,000.00) per violation or false entry.
(2) (a) In addition to any other penalty which may be applicable, any licensee or employee who fails to make a record of a pawnshop transaction and subsequently sells or disposes of the pledged goods from such transaction shall be punished as follows:
(i) For a first offense, the licensee or employee shall be guilty of a misdemeanor and upon conviction thereof, shall be punishable by a fine not in excess of One Thousand Dollars ($1,000.00) or by imprisonment in the county jail for not more than one (1) year, or both fine and imprisonment;
(ii) For a second offense, the licensee or employee shall be guilty of a felony and upon conviction thereof, shall be punishable by a fine not in excess of Five Thousand Dollars ($5,000.00) or by imprisonment in the custody of the State Department of Corrections for a term not less than one (1) year nor more than five (5) years, or by both fine and imprisonment.
(b) Any licensee convicted in the manner provided in this subsection (2) shall forfeit the surety bond or deposit required in Section 75-67-323 and the amount of such bond or deposit shall be credited to the budget of the state or local agency, which directly participated in the prosecution of such licensee, for the specific purpose of increasing law enforcement resources for that specific state or local agency. Such bond or deposit shall be used to augment existing state and local law enforcement budgets and not to supplant them.
(3) Compliance with the criminal provisions of this article shall be enforced by the appropriate law enforcement agency who may exercise for such purpose any authority conferred upon such agency by law.
(4) When the commissioner has reasonable cause to believe that a person is violating any provision of this article, the commissioner, in addition to and without prejudice to the authority provided elsewhere in this article, may enter an order requiring the person to stop or to refrain from the violation. The commissioner may sue in any circuit court of the state having jurisdiction and venue to enjoin the person from engaging in or continuing the violation or from doing any act in furtherance of the violation. In such an action, the court may enter an order or judgment awarding a preliminary or permanent injunction.
(5) The commissioner may,
after notice and a hearing, impose a civil penalty against any licensee
adjudged by the commissioner to be in violation of the provisions of this
article. Such civil penalty shall not exceed Five Hundred Dollars ($500.00)
per violation and shall be deposited into the * * * Consumer Finance Fund of
the Department of Banking and Consumer Finance.
SECTION 6. Section 75-67-341, Mississippi Code of 1972, is amended as follows:
75-67-341. (1) The Commissioner of Banking shall develop and provide any necessary forms to carry out the provisions of this article.
(2) To assure compliance with the provisions of this article, the commissioner may examine the pawn books and records of any licensee without notice during normal business hours.
(3) * * * The commissioner may
charge the licensee an examination fee in an amount not less than Three
Hundred Dollars ($300.00) nor more than Six Hundred Dollars ($600.00) for each
office or location, plus any actual expenses incurred while examining the
licensee's * * *
records or books * * *
that are located outside of the State of Mississippi. However, in no
event shall a licensee be examined more than once in a two-year period unless
for cause shown based upon a complaint and/or other exigent reasons as
determined by the commissioner.
SECTION 7. This act shall take effect and be in force from and after July 1, 2013.
