Bill Text: NC S144 | 2011-2012 | Regular Session | Amended
Bill Title: Cash Converters Must Keep Purchase Records
Spectrum: Moderate Partisan Bill (Republican 21-6)
Status: (Passed) 2011-06-27 - Ch. SL 2011-325 [S144 Detail]
Download: North_Carolina-2011-S144-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
S 3
SENATE BILL 144
Commerce Committee Substitute Adopted 4/28/11
House Committee Substitute Favorable 6/15/11
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Short Title: Cash Converters Must Keep Purchase Records. |
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Sponsors: |
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Referred to: |
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February 28, 2011
A BILL TO BE ENTITLED
AN ACT to require cash converter businesses to keep records of purchases and to make those records available to local law enforcement agencies, and to exempt certain licensed check cashers from the reporting requirements of the check‑cashing businesses act.
The General Assembly of North Carolina enacts:
SECTION 1. The title of Chapter 91A of the General Statutes reads as rewritten:
"Pawnbrokers and
Cash Converters Modernization Act of 1989.Act."
SECTION 2. G.S. 91A‑1 reads as rewritten:
"§ 91A‑1. Short title.
This Chapter shall be known and may be cited as the
Pawnbrokers and Cash Converters Modernization Act of 1989.Act."
SECTION 3. G.S. 91A‑2 reads as rewritten:
"§ 91A‑2. Purpose.
The making of pawn loans and the acquisition and disposition
of tangible personal property by and through pawnshops and cash converters vitally
affects the general economy of this State and the public interest and welfare
of its citizens. In recognition of these facts, it is the policy of this State
and the purpose of the Pawnbrokers and Cash Converters Modernization Act
of 1989 to:to do all of the following:
(1) Ensure a sound system of making loans and acquiring
and disposing of tangible personal property by and through pawnshops, and to
prevent unlawful property transactions, particularly in stolen property,
through licensing and regulating pawnbrokers; pawnbrokers.
(1a) Ensure a sound system of acquiring and disposing of tangible personal property by and through cash converters and to prevent unlawful property transactions, particularly in stolen property, by requiring record keeping by cash converters.
(2) Provide for pawnbroker licensing fees and
investigation fees of licensees;licensees.
(3) Ensure financial responsibility to the State and
the general public;public.
(4) Ensure compliance with federal and State laws;
andlaws.
(5) Assist local governments in the exercise of their police authority."
SECTION 4. G.S. 91A‑3 reads as rewritten:
"§ 91A‑3. Definitions.
As used in this Article, the following definitions shall
apply:The following definitions apply in this Chapter:
(1) Cash. – Lawful currency of the United States.
(2) Cash converter. – A person engaged in the business of purchasing goods from the public for cash at a permanently located retail store who holds himself or herself out to the public by signs, advertising, or other methods as engaging in that business. The term does not include any of the following:
a. Pawnbrokers.
b. Persons whose goods purchases are made directly from manufacturers or wholesalers for their inventories.
c. Precious metals dealers, to the extent that their transactions are regulated under Article 25 of Chapter 66 of the General Statutes.
d. Purchases by persons primarily in the business of obtaining from the public, either by purchase or exchange, used clothing, children's furniture, and children's products, provided the amount paid for the individual item purchased is less than fifty dollars ($50.00).
e. Purchases by persons primarily in the business of obtaining from the public, either by purchase or exchange, sporting goods and sporting equipment, provided the amount paid for the individual item purchased is less than fifty dollars ($50.00).
(1)(3) "Pawn" or "Pawn
transaction" means a Pawn or pawn transaction. – A written
bailment of personal property as security for a debt, redeemable on certain
terms within 180 days, unless renewed, and with an implied power of sale on
default.
(2)(4) "Pawnbroker" means any Pawnbroker.
– A person engaged in the business of lending money on the security of
pledged goods and who may also purchase merchandise for resale from dealers and
traders.
(3)(5) "Pawnshop" means the Pawnshop.
– The location at which, or premises in which, a pawnbroker regularly
conducts business.
(4)(6) "Person" means any Person.
– Any individual, corporation, joint venture, association, or any other
legal entity, however organized.
(5)(7) "Pledged goods" means
tangible Pledged goods. – Tangible personal property which is
deposited with, or otherwise actually delivered into, the possession of a
pawnbroker in the course of his business in connection with a pawn transaction.
(6)(8) "Purchase" means any Purchase.
– An item purchased from an individual for the purpose of resale whereby
the seller no longer has a vested interest in the item."
SECTION 5. The catch line of G.S. 91A‑7 reads as rewritten:
"§ 91A‑7.
Record keeping requirements. Record‑keeping requirements for
pawnbrokers."
SECTION 6. Chapter 91A of the General Statutes is amended by adding a new section to read:
"§ 91A‑7.1. Record‑keeping requirements for cash converters.
(a) Every cash converter shall keep consecutively numbered records of each cash purchase. The cash converter shall, at the time of making the purchase, enter upon each record all of the following information, which shall be typed or written in ink and in the English language:
(1) A clear and accurate description of the property purchased by the cash converter from the seller, including model and serial number if indicated on the property.
(2) The name, residence address, phone number, and date of birth of the seller.
(3) The date of the purchase.
(4) The type of identification and the identification number accepted from the seller.
(5) A description of the seller, including approximate height, weight, sex, and race.
(6) The purchase price.
(7) The statement that 'THE SELLER OF THIS ITEM ATTESTS THAT IT IS NOT STOLEN, HAS NO LIENS OR ENCUMBRANCES, AND IS THE SELLER'S TO SELL.'
(b) The seller shall sign the record and shall receive an exact copy of the record, which shall be signed or initialed by the cash converter or any employee of the cash converter. These records shall be available for inspection and pickup each regular workday by the sheriff of the county or the sheriff's designee or the chief of police or the chief's designee of the municipality in which the cash converter is located. These records may be electronically reported to the sheriff of the county or the chief of police of the municipality in which the cash converter is located by transmission over the Internet or by facsimile transmission in a manner authorized by the applicable sheriff or chief of police. These records shall be a correct copy of the entries made of the purchase transaction, shall be carefully preserved without alteration, and shall be available during regular business hours.
(c) This section does not apply to purchases directly from a manufacturer or wholesaler for a cash converter's inventory."
SECTION 7. G.S. 91A‑10 reads as rewritten:
"§ 91A‑10. Prohibitions.
(a) A pawnbroker shall not:
(1) Accept a pledge from a person under the age of 18 years;years.
(2) Make any agreement requiring the personal liability
of a pledgor in connection with a pawn transaction;transaction.
(3) Accept any waiver, in writing or otherwise, of any
right or protection accorded a pledgor under this Chapter; Chapter.
(4) Fail to exercise reasonable care to protect pledged
goods from loss or damage; damage.
(5) Fail to return pledged goods to a pledgor upon
payment of the full amount due the pawnbroker on the pawn transaction. In the
event such pledged goods are lost or damaged while in the possession of the
pawnbroker, it shall be the responsibility of the pawnbroker to replace the
lost or damaged goods with merchandise of like kind and equivalent value. In
the event the pledgor and pawnbroker cannot agree as to replacement, the
pawnbroker shall reimburse the pledgor in the amount of the value agreed upon
pursuant to G.S. 91A‑7(b); G.S. 91A‑7(b).
(6) Take any article in pawn, pledge, or as security
from any person, which is known to such pawnbroker to be stolen, unless there
is a written agreement with local or State police;police.
(7) Sell, exchange, barter, or remove from the pawnshop
any goods pledged, pawned, or purchased before the earlier of seven days after
the date the pawn ticket record is electronically reported in accordance with G.S. 91A‑7(d)
or 30 days after the transaction, except in case of redemption by pledgor or
items purchased for resale from wholesalers;wholesalers.
(8) Operate more than one pawnshop under one license,
and such shop must be at a permanent place of business; or business.
(9) Take as pledged goods any manufactured mobile home, recreational vehicle, or motor vehicle other than a motorcycle.
(b) A cash converter shall not purchase from any person property which is known to the cash converter to be stolen, unless there is a written agreement with local or State police."
SECTION 8. G.S. 91A‑11 reads as rewritten:
"§ 91A‑11. Penalties.
(a) Every person, firm, or corporation, their guests or employees, who shall knowingly violate any of the provisions of this Chapter, shall, on conviction thereof, be deemed guilty of a Class 2 misdemeanor. If the violation is by an owner or major stockholder or managing partner of the pawnshop and the violation is knowingly committed by the owner, major stockholder, or managing partner of the pawnshop, then the license of the pawnshop may be suspended at the discretion of the court.
(b) The provision of subsection (a) shall not apply to
violations of G.S. 91A‑10(6) G.S. 91A‑10(a)(6)
or (b) which shall be prosecuted under the North Carolina criminal
statutes.
(c) Any contract of pawn the making or collecting of which violates any provision of this Chapter, except as a result of accidental or bona fide error of computation, shall be void, and the licensee shall have no right to collect, receive or retain any interest or fee whatsoever with respect to such pawn."
SECTION 9. G.S. 25‑9‑201(b) reads as rewritten:
"(b) Applicable consumer laws and other law. – A
transaction subject to this Article is subject to any applicable rule of law
which establishes a different rule for consumers, to any other statute, rule,
or regulation of this State that regulates the rates, charges, agreements, and
practices for loans, credit sales, or other extensions of credit, and to any
consumer‑protection statute, rule, or regulation of this State, including
Chapter 24 of the General Statutes, the Retail Installment Sales Act (Chapter
25A of the General Statutes), the North Carolina Consumer Finance Act (Article
15 of Chapter 53 of the General Statutes), and the Pawnbrokers and Cash
Converters Modernization Act of 1989 (Chapter 91A of the General
Statutes)."
SECTION 10. G.S. 53‑282(a) reads as rewritten:
"(a) Every person required to be licensed under this Article shall maintain in its offices such books, accounts, and records as the Commissioner may reasonably require. The books, accounts, and records shall be maintained separate from any other business in which the person is engaged, and shall be retained for a period prescribed by the Commissioner. A person required to be licensed under this Article that derives less than twenty percent (20%) of the person's annual gross revenues from check cashing shall not be required to maintain separate accounts and records."
SECTION 11. This act becomes effective December 1, 2011, and applies to purchases by cash converters on or after that date.
