Bill Text: PA HB720 | 2011-2012 | Regular Session | Introduced

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

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Bill Title: Further providing for definitions, for identity of pledger and for pawn ticket; providing for hold orders and related procedures; and further providing for sale of pledge and for penalties.

Spectrum: Moderate Partisan Bill (Democrat 15-3)

Status: (Engrossed - Dead) 2011-06-29 - Referred to BANKING AND INSURANCE [HB720 Detail]

Download: Pennsylvania-2011-HB720-Introduced.html

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PRINTER'S NO. 734
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 720 Session of2011
INTRODUCED BY V. BROWN, SHAPIRO, BARBIN, BROWNLEE, D. COSTA, DAVIDSON, GEIST, JOSEPHS, KORTZ, MANN, MIRABITO, MOUL, MUNDY, PARKER, PASHINSKI, VULAKOVICH AND DeLUCA, FEBRUARY 16, 2011
REFERRED TO COMMITTEE ON JUDICIARY, FEBRUARY 16, 2011
AN ACT
Amending the act of April 6, 1937 (P.L.200, No.51), entitled "An
act licensing and regulating the business of pawnbrokers;
providing for the issuance of licenses by the Secretary of
Banking; authorizing the Secretary of Banking to make
examinations and issue regulations; limiting the interest and
charges on loans; and prescribing penalties for the violation
of this act," further providing for definitions, for identity
of pledger and for pawn ticket; providing for hold orders and
related procedures; and further providing for sale of pledge
and for penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "pawnbroker," "pledge" and
"pledger" in section 2 of the act of April 6, 1937 (P.L.200,
No.51), known as the Pawnbrokers License Act, amended June 20,
1947 (P.L.701, No.305), are amended to read:
Section 2. Definitions.--The following terms shall be
construed in this act to have the following meanings, except in
those instances where the context clearly indicates otherwise.
"Pawnbroker" includes any person, who--(1) engages in the
business of lending money on the deposit or pledge of personal
property, other than choses in action, securities, or written
evidences of indebtedness; or (2) purchases personal property
with an expressed or implied agreement or understanding to sell
it back at a subsequent time at a stipulated price; or (3) lends
money upon goods, wares or merchandise pledged, stored or
deposited as collateral security; or (4) purchases items of
personal property without an agreement to sell the items back if
the transaction occurs in an establishment where business is
conducted under paragraph (1), (2) or (3).
"Pledge" means--(1) an article or articles deposited with a
pawnbroker as security for a loan in the course of his business
as defined in [the preceding paragraph] paragraph (3) of the
definition of "pawnbroker"; or (2) an item of personal property
purchased by the pawnbroker solely for resale.
"Pledger" means--(1) the person who obtains a loan from a
pawnbroker and delivers a pledge into the possession of a
pawnbroker, unless such person discloses that he is or was
acting for another in which case a "pledger" means the disclosed
principal; or (2) the person who sells an item of personal
property to a pawnbroker solely for the pawnbroker's resale of
the item.
* * *
Section 2. Section 13 of the act, amended December 15, 1969
(P.L.364, No.159), is amended to read:
Section 13. Identity of Pledger.--At the time of granting an
original loan or purchasing an item of personal property, the
pawnbroker shall enter upon his records, in the form and manner
designated by the Secretary of Banking, a description of the
pledger so as to identify the pledger, including [the pledger's
name and address, and either the pledger's motor vehicle
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operator's number, the pledger's Social Security number, or, if
the pledger does not have this information, such other proof of
identity as the Secretary of Banking shall provide by
regulation.]:
(1) name;
(2) address;
(3) age;
(4) sex;
(5) race;
(6) photocopy of a valid photo identification document
issued by the Federal or State government; and
(7) digital photograph of the pledger taken at the time of
the transaction.
Section 3. Section 14 of the act is amended to read:
Section 14. Pawn Ticket.--At the time of granting a loan and
upon the subsequent renewal of any loan or when purchasing
personal property, the pawnbroker shall furnish to the pledger a
pawn ticket which is serially numbered and which shall contain
the following information--name and address of the pawnbroker,
the name and address of the pledger, name and address of
disclosed principal, if any, the date of the loan, the amount
actually loaned, the serial number of the loan, description of
the pledge, due date of the loan, the total amount of principal,
interest and charges required to redeem the pledge on the due
date, a statement setting forth that the pledge may be sold
after ninety (90) days of the due date of the loan if not
redeemed. A pawnbroker may insert additional provisions on the
pawn ticket not inconsistent with this act, and he shall insert
such other provisions as may be required by the Secretary of
Banking.
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A duplicate copy of the pawn ticket shall be retained by the
pawnbroker for his record.
The pawnbroker shall require the pledger to surrender the
original pawn ticket when the pledge is released or the loan is
renewed.
Section 4. The act is amended by adding a section to read:
Section 16.1. Hold Orders and Related Procedures.--(a) When
an appropriate law enforcement official has probable cause to
believe that property in the possession of a pawnbroker is
misappropriated, the official may place a written hold order on
the property. The written hold order shall impose a holding
period not to exceed ninety (90) days unless extended by court
order. The appropriate law enforcement official may rescind, in
writing, any hold order. An appropriate law enforcement official
may place only one hold order on property.
(b) Upon the expiration of the holding period, the
pawnbroker shall notify, in writing, the appropriate law
enforcement official by certified mail, return receipt
requested, that the holding period has expired. If, on the tenth
day after the written notice has been received by the
appropriate law enforcement official, the pawnbroker has not
received from a court an extension of the hold order on the
property and the property is not the subject of another court
proceeding, title to the property shall vest in and be deemed
conveyed by operation of law to the pawnbroker, free of any
liability for claims but subject to any restrictions contained
in the pawn transaction contract and subject to the provisions
of this section.
(c) A hold order must specify:
(1) The name and address of the pawnbroker.
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(2) The name, title and identification number of the
representative of the appropriate law enforcement official or
the court placing the hold order.
(3) If applicable, the name and address of the appropriate
law enforcement official or court to which such representative
is attached and the number, if any, assigned to the claim
regarding the property.
(4) A complete description of the property to be held,
including model number and serial number if applicable.
(5) The name of the person reporting the property to be
misappropriated unless otherwise prohibited by law.
(6) The mailing address of the pawnbroker where the property
is held.
(7) The expiration date of the holding period.
(d) The pawnbroker or the pawnbroker's representative must
sign and date a copy of the hold order as evidence of receipt of
the hold order and the beginning of the ninety (90) day holding
period.
(e) (1) Except as provided in paragraph (2), a pawnbroker
may not release or dispose of property subject to a hold order
except pursuant to a court order, a written release from the
appropriate law enforcement official or the expiration of the
holding period of the hold order.
(2) While a hold order is in effect, the pawnbroker must
upon request release the property subject to the hold order to
the custody of the appropriate law enforcement official for use
in a criminal investigation. The release of the property to the
custody of the appropriate law enforcement official is not
considered a waiver or release of the pawnbroker's property
rights or interest in the property. Upon completion of the
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criminal proceeding, the property must be returned to the
pawnbroker unless the court orders other disposition. When
another disposition is ordered, the court shall additionally
order the conveying customer to pay restitution to the
pawnbroker in the amount received by the conveying customer for
the property together with reasonable attorney fees and costs.
Section 5. Sections 23 and 31 of the act are amended to
read:
Section 23. Sale of Pledge.--Upon default in the payment of
any loan, a pawnbroker may sell the pledge upon the conditions
contained in this section.
A pawnbroker may sell a pledge at private sale for an amount
not less than that agreed to by the pledger, which amount shall
be stipulated on the pawn ticket and shall not be less than one
hundred twenty-five per cent (125%) of the amount of the loan. A
pledge which cannot be sold at private sale at the minimum price
agreed to by the pledger must be sold at public auction.
No unredeemed pledge may be sold before the expiration of
ninety (90) days after the due date of the loan unless otherwise
specifically authorized in writing by the pledger. This
authority to sell an unredeemed pledge prior to the expiration
of ninety (90) days after the due date of the loan must be given
by the pledger on a date subsequent to the due date of the loan.
An unredeemed pledge shall be sold within twelve months of
the due date of a loan. No interest or charges permitted under
this act may be collected on a loan after the expiration of
twelve months of the due date of a loan, whether the loan is
renewed, or the loan is paid and the pledge redeemed. Where the
pawnbroker has failed to sell the pledge within six months of
the due date of the loan, no such interest or charges may be
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computed for the period after six months of the due date of a
loan in determining the surplus due the pledger if a pledge is
sold subsequent to six months after the due date of a loan.
A pawnbroker shall keep an article of personal property it
received as a pledge for not less than ninety (90) days.
Section 31. Penalties.--Any person, partnership, association
or corporation, or any partner, director, officer, agent or
member thereof who shall engage in the business of pawnbroking
in this Commonwealth without first obtaining a license under
this act, shall be guilty of a misdemeanor, and, upon conviction
thereof, shall be sentenced to pay a fine of not less than five
hundred ($500.00) dollars nor more than five thousand
($5,000.00) dollars, and/or suffer imprisonment not less than
six months nor more than three years, in the discretion of the
court.
A pawnbroker licensed under the provisions of this act who
shall violate any provision of this act, or shall direct or
consent to such violation, shall be guilty of a misdemeanor,
and, upon conviction thereof, shall be sentenced to pay a fine
of not more than one thousand ($1,000.00) dollars for the first
offense, and for each subsequent offense a like fine, and/or
suffer imprisonment not to exceed one year, in the discretion of
the court.
An individual, partnership, association, corporation or
business entity that commits a violation of this act shall, upon
conviction, in addition to the other penalties set forth in this
section, have its license issued under the act revoked and be
ineligible to apply for a pawnbroker's license under this act
for five (5) years after the violation.
Section 6. This act shall take effect in 60 days.
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