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| PRIOR PRINTER'S NO. 3749 | PRINTER'S NO. 4281 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY BROWN, PASHINSKI, MANN, PARKER, SIPTROTH, LEVDANSKY, PAYTON, VULAKOVICH, JOSEPHS, THOMAS AND P. COSTA, MAY 19, 2010 |
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| AS REPORTED FROM COMMITTEE ON JUDICIARY, HOUSE OF REPRESENTATIVES, AS AMENDED, SEPTEMBER 21, 2010 |
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| AN ACT |
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1 | Amending the act of April 6, 1937 (P.L.200, No.51), entitled "An |
2 | act licensing and regulating the business of pawnbrokers; |
3 | providing for the issuance of licenses by the Secretary of |
4 | Banking; authorizing the Secretary of Banking to make |
5 | examinations and issue regulations; limiting the interest and |
6 | charges on loans; and prescribing penalties for the violation |
7 | of this act," further providing for definitions, for identity | <-- |
8 | of pledger and for pawn ticket; providing for hold orders and |
9 | related procedures; and further providing for sale of pledge | <-- |
10 | and for penalties. |
11 | The General Assembly of the Commonwealth of Pennsylvania |
12 | hereby enacts as follows: |
13 | Section 1. The act of April 6, 1937 (P.L.200, No.51), known | <-- |
14 | as the Pawnbrokers License Act, is amended by adding a section |
15 | to read: |
16 | Section 1. The definitions of "pawnbroker," "pledge" and | <-- |
17 | "pledger" in section 2 of the act of April 6, 1937 (P.L.200, |
18 | No.51), known as the Pawnbrokers License Act, amended June 20, |
19 | 1947 (P.L.701, No.305), are amended to read: |
20 | Section 2. Definitions.--The following terms shall be |
21 | construed in this act to have the following meanings, except in |
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1 | those instances where the context clearly indicates otherwise. |
2 | "Pawnbroker" includes any person, who--(1) engages in the |
3 | business of lending money on the deposit or pledge of personal |
4 | property, other than choses in action, securities, or written |
5 | evidences of indebtedness; or (2) purchases personal property |
6 | with an expressed or implied agreement or understanding to sell |
7 | it back at a subsequent time at a stipulated price; or (3) lends |
8 | money upon goods, wares or merchandise pledged, stored or |
9 | deposited as collateral security; or (4) purchases items of |
10 | personal property without an agreement to sell the items back if |
11 | the transaction occurs in an establishment where business is |
12 | conducted under paragraph (1), (2) or (3). |
13 | "Pledge" means--(1) an article or articles deposited with a |
14 | pawnbroker as security for a loan in the course of his business |
15 | as defined in [the preceding paragraph] paragraph (3) of the |
16 | definition of "pawnbroker"; or (2) an item of personal property |
17 | purchased by the pawnbroker solely for resale. |
18 | "Pledger" means--(1) the person who obtains a loan from a |
19 | pawnbroker and delivers a pledge into the possession of a |
20 | pawnbroker, unless such person discloses that he is or was |
21 | acting for another in which case a "pledger" means the disclosed |
22 | principal; or (2) the person who sells an item of personal |
23 | property to a pawnbroker solely for the pawnbroker's resale of |
24 | the item. |
25 | * * * |
26 | Section 2. Section 13 of the act, amended December 15, 1969 |
27 | (P.L.364, No.159), is amended to read: |
28 | Section 13. Identity of Pledger.--At the time of granting an |
29 | original loan or purchasing an item of personal property, the |
30 | pawnbroker shall enter upon his records, in the form and manner |
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1 | designated by the Secretary of Banking, a description of the |
2 | pledger so as to identify the pledger, including [the pledger's |
3 | name and address, and either the pledger's motor vehicle |
4 | operator's number, the pledger's Social Security number, or, if |
5 | the pledger does not have this information, such other proof of |
6 | identity as the Secretary of Banking shall provide by |
7 | regulation.]: |
8 | (1) name; |
9 | (2) address; |
10 | (3) age; |
11 | (4) sex; |
12 | (5) race; |
13 | (6) photocopy of a valid photo identification document |
14 | issued by the Federal or State government; and |
15 | (7) digital photograph of the pledger taken at the time of |
16 | the transaction. |
17 | Section 3. Section 14 of the act is amended to read: |
18 | Section 14. Pawn Ticket.--At the time of granting a loan and |
19 | upon the subsequent renewal of any loan or when purchasing |
20 | personal property, the pawnbroker shall furnish to the pledger a |
21 | pawn ticket which is serially numbered and which shall contain |
22 | the following information--name and address of the pawnbroker, |
23 | the name and address of the pledger, name and address of |
24 | disclosed principal, if any, the date of the loan, the amount |
25 | actually loaned, the serial number of the loan, description of |
26 | the pledge, due date of the loan, the total amount of principal, |
27 | interest and charges required to redeem the pledge on the due |
28 | date, a statement setting forth that the pledge may be sold |
29 | after ninety (90) days of the due date of the loan if not |
30 | redeemed. A pawnbroker may insert additional provisions on the |
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1 | pawn ticket not inconsistent with this act, and he shall insert |
2 | such other provisions as may be required by the Secretary of |
3 | Banking. |
4 | A duplicate copy of the pawn ticket shall be retained by the |
5 | pawnbroker for his record. |
6 | The pawnbroker shall require the pledger to surrender the |
7 | original pawn ticket when the pledge is released or the loan is |
8 | renewed. |
9 | Section 4. The act is amended by adding a section to read: |
10 | Section 16.1. Hold Orders and Related Procedures.--(a) When |
11 | an appropriate law enforcement official has probable cause to |
12 | believe that property in the possession of a pawnbroker is |
13 | misappropriated, the official may place a written hold order on |
14 | the property. The written hold order shall impose a holding |
15 | period not to exceed ninety (90) days unless extended by court |
16 | order. The appropriate law enforcement official may rescind, in |
17 | writing, any hold order. An appropriate law enforcement official |
18 | may place only one hold order on property. |
19 | (b) Upon the expiration of the holding period, the |
20 | pawnbroker shall notify, in writing, the appropriate law |
21 | enforcement official by certified mail, return receipt |
22 | requested, that the holding period has expired. If, on the tenth |
23 | day after the written notice has been received by the |
24 | appropriate law enforcement official, the pawnbroker has not |
25 | received from a court an extension of the hold order on the |
26 | property and the property is not the subject of another court |
27 | proceeding, title to the property shall vest in and be deemed |
28 | conveyed by operation of law to the pawnbroker, free of any |
29 | liability for claims but subject to any restrictions contained |
30 | in the pawn transaction contract and subject to the provisions |
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1 | of this section. |
2 | (c) A hold order must specify: |
3 | (1) The name and address of the pawnbroker. |
4 | (2) The name, title and identification number of the |
5 | representative of the appropriate law enforcement official or |
6 | the court placing the hold order. |
7 | (3) If applicable, the name and address of the appropriate |
8 | law enforcement official or court to which such representative |
9 | is attached and the number, if any, assigned to the claim |
10 | regarding the property. |
11 | (4) A complete description of the property to be held, |
12 | including model number and serial number if applicable. |
13 | (5) The name of the person reporting the property to be |
14 | misappropriated unless otherwise prohibited by law. |
15 | (6) The mailing address of the pawnbroker where the property |
16 | is held. |
17 | (7) The expiration date of the holding period. |
18 | (d) The pawnbroker or the pawnbroker's representative must |
19 | sign and date a copy of the hold order as evidence of receipt of |
20 | the hold order and the beginning of the ninety (90) day holding |
21 | period. |
22 | (e) (1) Except as provided in paragraph (2), a pawnbroker |
23 | may not release or dispose of property subject to a hold order |
24 | except pursuant to a court order, a written release from the |
25 | appropriate law enforcement official or the expiration of the |
26 | holding period of the hold order. |
27 | (2) While a hold order is in effect, the pawnbroker must |
28 | upon request release the property subject to the hold order to |
29 | the custody of the appropriate law enforcement official for use |
30 | in a criminal investigation. The release of the property to the |
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1 | custody of the appropriate law enforcement official is not |
2 | considered a waiver or release of the pawnbroker's property |
3 | rights or interest in the property. Upon completion of the |
4 | criminal proceeding, the property must be returned to the |
5 | pawnbroker unless the court orders other disposition. When |
6 | another disposition is ordered, the court shall additionally |
7 | order the conveying customer to pay restitution to the |
8 | pawnbroker in the amount received by the conveying customer for |
9 | the property together with reasonable attorney fees and costs. |
10 | Section 5. Sections 23 and 31 of the act are amended to | <-- |
11 | read: |
12 | Section 23. Sale of Pledge.--Upon default in the payment of |
13 | any loan, a pawnbroker may sell the pledge upon the conditions |
14 | contained in this section. |
15 | A pawnbroker may sell a pledge at private sale for an amount |
16 | not less than that agreed to by the pledger, which amount shall |
17 | be stipulated on the pawn ticket and shall not be less than one |
18 | hundred twenty-five per cent (125%) of the amount of the loan. A |
19 | pledge which cannot be sold at private sale at the minimum price |
20 | agreed to by the pledger must be sold at public auction. |
21 | No unredeemed pledge may be sold before the expiration of |
22 | ninety (90) days after the due date of the loan unless otherwise |
23 | specifically authorized in writing by the pledger. This |
24 | authority to sell an unredeemed pledge prior to the expiration |
25 | of ninety (90) days after the due date of the loan must be given |
26 | by the pledger on a date subsequent to the due date of the loan. |
27 | An unredeemed pledge shall be sold within twelve months of |
28 | the due date of a loan. No interest or charges permitted under |
29 | this act may be collected on a loan after the expiration of |
30 | twelve months of the due date of a loan, whether the loan is |
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1 | renewed, or the loan is paid and the pledge redeemed. Where the |
2 | pawnbroker has failed to sell the pledge within six months of |
3 | the due date of the loan, no such interest or charges may be |
4 | computed for the period after six months of the due date of a |
5 | loan in determining the surplus due the pledger if a pledge is |
6 | sold subsequent to six months after the due date of a loan. |
7 | A pawnbroker shall keep an article of personal property it |
8 | received as a pledge for not less than ninety (90) days. |
9 | Section 31. Penalties.--Any person, partnership, association |
10 | or corporation, or any partner, director, officer, agent or |
11 | member thereof who shall engage in the business of pawnbroking |
12 | in this Commonwealth without first obtaining a license under |
13 | this act, shall be guilty of a misdemeanor, and, upon conviction |
14 | thereof, shall be sentenced to pay a fine of not less than five |
15 | hundred ($500.00) dollars nor more than five thousand |
16 | ($5,000.00) dollars, and/or suffer imprisonment not less than |
17 | six months nor more than three years, in the discretion of the |
18 | court. |
19 | A pawnbroker licensed under the provisions of this act who |
20 | shall violate any provision of this act, or shall direct or |
21 | consent to such violation, shall be guilty of a misdemeanor, |
22 | and, upon conviction thereof, shall be sentenced to pay a fine |
23 | of not more than one thousand ($1,000.00) dollars for the first |
24 | offense, and for each subsequent offense a like fine, and/or |
25 | suffer imprisonment not to exceed one year, in the discretion of |
26 | the court. |
27 | An individual, partnership, association, corporation or |
28 | business entity that commits a violation of this act shall, upon |
29 | conviction, in addition to the other penalties set forth in this |
30 | section, have its license issued under the act revoked and be |
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1 | ineligible to apply for a pawnbroker's license under this act |
2 | for five (5) years after the violation. |
3 | Section 2 6. This act shall take effect in 60 days. | <-- |
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