Bill Text: CA SB212 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Pawnbrokers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB212 Detail]

Download: California-2011-SB212-Introduced.html

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BILL NUMBER: SB 212	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator De León

                        FEBRUARY 8, 2011

   An act to add Section 21201.6 to the Business and Professions
Code, relating to pawnbrokers.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 212, as introduced, De León. Pawnbrokers.
   Existing law regulates the sale and redemption of pledged property
by pawnbrokers. Existing law requires every loan made by a
pawnbroker, for which goods are received in pledge as security, to be
evidenced by a written contract and requires a copy of the contract
to be furnished to the pledgor. Existing law authorizes a pledgor and
a pawnbroker to agree to a new loan to take effect upon or at any
time after the expiration of the loan period stated in the original
contract furnished to the pledgor, requires the pledgor to pay in
cash or another form acceptable to the pawnbroker all of the charges
and interest due under the original loan, and requires the remaining
unpaid balance of the actual amount borrowed under the original loan
to be debited to the new loan on which the same article or articles
are pledged. A violation of these provisions under circumstances
where a person knows or should have known that a violation was being
committed is a crime.
   This bill would provide that the signature of the pledgor is not
required for these new loans if the pledgor remits payment of fees
and charges due under the original loan contract by mail or proxy and
certain other conditions are satisfied. The bill would require a
pawnbroker to return a pledgor's proposed payment in the same manner
it was provided to the pawnbroker if the pawnbroker rejects the
payment made by mail or other method.
   Because a knowing violation of these provisions would be a crime,
this bill would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 21201.6 is added to the Financial Code, to
read:
   21201.6.  (a) Notwithstanding any other provision of law to the
contrary, the signature of a pledgor shall not be required for any
new loan contract entered into pursuant to Section 21201.5 if the
pledgor remits payment of the fees and charges due under the original
loan contract by mail or by proxy, and all of the following are
satisfied:
   (1) The pawnbroker accepts the payment and issues a new loan
consistent with Section 21201.5 and this section.
   (2) The pawnbroker issues a receipt, as set forth in Section
21204, to the pledgor either in the same manner in which the pledgor
transmitted the payment to the pawnbroker or as otherwise provided
under the terms of the original contract.
   (3) The new loan contract is in writing.
   (4) The new loan and its fees and charges satisfy the requirements
of Sections 21200 to 21201.4, inclusive, excepting Section 21200.7.
   (5) For a loan of a bona fide principal amount of two thousand
five hundred dollars ($2,500) or more, the formula for calculating
the compensation due under the new loan is set forth in the original
loan contract or, if none is stated, the compensation for the new
loan shall be calculated by the same formula stated in the original
loan contract.
   (b) An original loan contract may be renewed under Section 21201.5
as many times as the pawnbroker and pledgor may agree, except that
all new loans issued as a result of the pledgor's payment by mail or
by proxy shall comply with the requirements of subdivision (a).
   (c) If a pawnbroker rejects a pledgor's proposed payment made by
mail or other method, the pawnbroker shall promptly return the
pledgor's proposed payment in the same manner it was made to the
pawnbroker by the pledgor.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.