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PAG LIN
1 1 SUBCHAPTER I
1 2 GENERAL PROVISIONS
1 3 Section 1. NEW SECTION. 552B.101 SHORT TITLE.
1 4 This chapter shall be known and may be cited as the "Iowa
1 5 Pawnshop Act".
1 6 Sec. 2. NEW SECTION. 552B.102 PURPOSES.
1 7 The purpose of this chapter is to do all of the following:
1 8 1. Prevent fraud, unfair practices, discrimination,
1 9 imposition, and abuse of state residents.
1 10 2. Exercise the state's police power to ensure a sound
1 11 system for the making of pawn loans and the transfer of
1 12 personal property by and through pawnshops.
1 13 3. Prevent transactions in stolen property and other
1 14 unlawful property transactions by licensing and regulating
1 15 pawnbrokers and pawnshop employees.
1 16 4. Provide for licensing and investigation fees.
1 17 5. Provide minimum capital requirements for pawnbrokers.
1 18 6. Ensure financial responsibility of pawnbrokers to the
1 19 state and its residents and compliance by pawnbrokers and
1 20 pawnshop employees with federal, state, and local law,
1 21 including rules and ordinances.
1 22 7. Assist local governments in the exercise of their
1 23 police power.
1 24 Sec. 3. NEW SECTION. 552B.103 DEFINITIONS.
1 25 As used in this chapter, unless the context otherwise
1 26 requires:
1 27 1. "Applicable liabilities" includes trade or other
1 28 accounts payable, accrued sales, income, or other taxes,
1 29 accrued expenses, and notes or other payables that are
1 30 unsecured or secured in whole or in part by current assets.
1 31 "Applicable liabilities" does not include a liability secured
1 32 by assets other than current assets.
1 33 2. "Current assets" includes an investment made in cash,
1 34 bank deposits, merchandise inventory, and loans due from
1 35 customers, excluding the pawn service charge. "Current
2 1 assets" does not include an investment made in any of the
2 2 following:
2 3 a. Fixed assets of real estate, furniture, fixtures, or
2 4 equipment.
2 5 b. Stocks, bonds, or other securities.
2 6 c. Prepaid expenses or other general intangibles.
2 7 3. "Department" means the department of commerce created
2 8 in section 546.2.
2 9 4. "Director" means the director of the department of
2 10 commerce.
2 11 5. "Goods" means tangible personal property.
2 12 6. "Net assets" means the book value of current assets
2 13 less applicable liabilities.
2 14 7. "Pawn transaction" means the pledging to a pawnbroker
2 15 of a single item of goods as security for a loan of money.
2 16 8. "Pawnbroker" means a person engaged in the business of
2 17 any of the following:
2 18 a. Lending money on the security of pledged goods.
2 19 b. Purchasing goods on condition that the goods may be
2 20 redeemed or repurchased by the seller for a fixed price within
2 21 a fixed period.
2 22 9. "Pawnshop" means a location at which or premises in
2 23 which a pawnbroker regularly conducts business.
2 24 10. "Pledged goods" means goods deposited with or
2 25 otherwise delivered into the possession of a pawnbroker in
2 26 connection with a pawn transaction.
2 27 Sec. 4. NEW SECTION. 552B.104 COMPUTATION OF MONTH.
2 28 1. For the computation of time in this chapter, a month is
2 29 the period from a date in a month to the corresponding date in
2 30 the succeeding month. If the succeeding month does not have a
2 31 corresponding date, the period ends on the last day of the
2 32 succeeding month.
2 33 2. For the computation of a fraction of a month, a day is
2 34 equal to one-thirtieth of a month.
2 35 Sec. 5. NEW SECTION. 552B.105 REGULATORY AUTHORITY.
3 1 The director may regulate a business practice that requires
3 2 a pawnshop license under this chapter.
3 3 Sec. 6. NEW SECTION. 552B.106 RULEMAKING.
3 4 The department shall adopt rules pursuant to chapter 17A
3 5 necessary to administer this chapter.
3 6 Sec. 7. NEW SECTION. 552B.107 STAGGERED RENEWAL OF
3 7 LICENSES.
3 8 The department may adopt a system under which licenses
3 9 issued under this chapter expire on various dates during the
3 10 year.
3 11 SUBCHAPTER II
3 12 PAWNSHOP LICENSE
3 13 Sec. 8. NEW SECTION. 552B.201 PAWNSHOP LICENSE REQUIRED.
3 14 A person shall not engage in business as a pawnbroker
3 15 unless the person holds a pawnshop license issued by the
3 16 director.
3 17 Sec. 9. NEW SECTION. 552B.202 ELIGIBILITY.
3 18 1. To be eligible for a pawnshop license, an applicant
3 19 shall demonstrate all of the following:
3 20 a. Good moral character, as evidenced by demonstration of
3 21 meeting the criteria established in section 724.15, subsection
3 22 1.
3 23 b. Achievement of the net assets requirement of section
3 24 552B.221.
3 25 c. The pawnshop will be operated lawfully and fairly under
3 26 this chapter.
3 27 d. The applicant or the applicant's owners and managers
3 28 have the financial responsibility, experience, character, and
3 29 general fitness to command the confidence of the public in the
3 30 pawnshop's operations.
3 31 2. Subsection 1, paragraph "a", applies to all of the
3 32 following:
3 33 a. The operator and legal or beneficial owner if the
3 34 applicant is a business entity.
3 35 b. The officer, owner of at least five percent of the
4 1 shares outstanding, and a member of the board of directors if
4 2 the applicant is a corporation.
4 3 Sec. 10. NEW SECTION. 552B.203 VERIFICATION OF
4 4 APPLICANT'S NET ASSETS.
4 5 If the director cannot verify that an applicant meets the
4 6 net assets requirement of section 552B.221, the director may
4 7 require proof, including a current balance sheet, to be
4 8 established by an independent certified public accountant of
4 9 both of the following:
4 10 1. The accountant has reviewed the applicant's books and
4 11 records.
4 12 2. The applicant meets the net assets requirement of
4 13 section 552B.221.
4 14 Sec. 11. NEW SECTION. 552B.204 LICENSE APPLICATION.
4 15 1. This section applies to an application for all of the
4 16 following:
4 17 a. A pawnshop license.
4 18 b. Relocation of a pawnshop.
4 19 c. Transfer of a pawnshop license and approval of a change
4 20 in the ownership of a pawnshop.
4 21 2. An application shall be submitted to the director and
4 22 must meet all of the following requirements:
4 23 a. Be under oath.
4 24 b. Provide all of the following information:
4 25 (1) The full name and place of residence of the applicant.
4 26 (2) The full name and address of each partner member if
4 27 the applicant is a partnership.
4 28 (3) Except as provided in subsection 3, the full name and
4 29 address of each officer, shareholder, and member of the board
4 30 of directors if the applicant is a corporation.
4 31 (4) The location where the business is to be conducted.
4 32 (5) Any other relevant information required by the
4 33 director.
4 34 c. Be accompanied by the fees and proof of insurance
4 35 required by section 552B.205.
5 1 3. The full name and address of each shareholder is not
5 2 required if the applicant is owned directly or beneficially by
5 3 a person who satisfies both of the following:
5 4 a. The person is an issuer of securities who meets either
5 5 of the following criteria:
5 6 (1) The person issues a class of securities registered
5 7 under section 12 of the federal Securities Exchange Act of
5 8 1934.
5 9 (2) The person is required to file reports with the
5 10 securities and exchange commission by section 15(d) of the
5 11 federal Securities Exchange Act of 1934.
5 12 b. The person has filed with the director the information,
5 13 documents, and reports that are required by the federal
5 14 Securities Exchange Act of 1934 to be filed by the issuer with
5 15 the securities and exchange commission.
5 16 Sec. 12. NEW SECTION. 552B.205 FEES – PROOF OF
5 17 INSURANCE.
5 18 An applicant must submit all of the following with the
5 19 application:
5 20 1. An investigation fee equal to one of the following:
5 21 a. Five hundred dollars if the applicant does not hold a
5 22 license.
5 23 b. Two hundred fifty dollars if the application is for any
5 24 of the following:
5 25 (1) An additional license for a separate location.
5 26 (2) A license which involves substantially identical
5 27 principals and owners of a licensed pawnshop at a separate
5 28 location.
5 29 (3) A renewal of a license.
5 30 2. An annual fee of one hundred dollars.
5 31 3. Proof of general liability and fire insurance in a
5 32 reasonable amount and form required by the director.
5 33 Sec. 13. NEW SECTION. 552B.206 BOND.
5 34 1. The director may require that an applicant file a bond
5 35 with the application. The bond shall meet all of the
6 1 following criteria:
6 2 a. The bond must be satisfactory to the director.
6 3 b. The bond must be in the amount set by the director not
6 4 to exceed five thousand dollars for each license.
6 5 c. The bond must be issued by a surety qualified to do
6 6 business in this state.
6 7 2. The aggregate liability of the surety may not exceed
6 8 the amount of the bond.
6 9 3. The bond must be for the use and benefit of the state
6 10 and a person who is injured or who sustains a loss by the
6 11 actions of the licensed pawnbroker, with a right of action in
6 12 the name of the state for the state's or the person's use.
6 13 4. The bond must be conditioned on both of the following:
6 14 a. The pawnbroker's compliance with this chapter and rules
6 15 adopted under this chapter.
6 16 b. The payment of all obligations that are due the state
6 17 or another person under this chapter.
6 18 Sec. 14. NEW SECTION. 552B.207 INVESTIGATION – NOTICE
6 19 OF APPLICATION.
6 20 1. On receipt of an application and the required fees, the
6 21 director shall do both of the following:
6 22 a. Conduct an investigation to determine whether to issue
6 23 the license.
6 24 b. Give notice of the application to all of the following:
6 25 (1) The department of public safety.
6 26 (2) Each local law enforcement agency in the county in
6 27 which the business is to be conducted.
6 28 (3) Each pawnbroker in the county in which the applicant
6 29 pawnshop is to be located.
6 30 2. The notice to the department of public safety and local
6 31 law enforcement agencies shall state the name and address of
6 32 each person required by section 552B.204, to be listed on the
6 33 license application.
6 34 3. The director shall give the department of public safety
6 35 and local law enforcement agencies a reasonable time to
7 1 respond with information concerning the listed persons or with
7 2 any other relevant information.
7 3 Sec. 15. NEW SECTION. 552B.208 PUBLIC HEARING.
7 4 1. On request, the director shall conduct a public hearing
7 5 before issuing a pawnshop license.
7 6 2. The director shall give a pawnbroker that would be
7 7 affected by the granting of an application for a pawnshop
7 8 license an opportunity to appear, present evidence, and be
7 9 heard for or against the application.
7 10 Sec. 16. NEW SECTION. 552B.209 APPROVAL – ISSUANCE OF
7 11 LICENSE.
7 12 1. Except as provided in subsection 2, the director shall
7 13 approve an application and issue a pawnshop license if the
7 14 director finds the applicant is eligible for the license.
7 15 2. If an application is for an original license in or the
7 16 relocation of a pawnshop to a county with a population of at
7 17 least two hundred fifty thousand, the director must find both
7 18 of the following apply before an application can be approved
7 19 and a license can be issued:
7 20 a. There is a public need for the proposed pawnshop.
7 21 b. The volume of business in the community in which the
7 22 pawnshop will conduct its business indicates a profitable
7 23 operation is probable.
7 24 Sec. 17. NEW SECTION. 552B.210 NOTICE OF DENIAL –
7 25 HEARING.
7 26 1. If the director finds that the application does not
7 27 meet the criteria described in section 552B.209, the director
7 28 shall notify the applicant.
7 29 2. An applicant may request a hearing on an application
7 30 not later than the thirtieth day after the date of
7 31 notification under subsection 1, and shall be entitled to a
7 32 hearing within sixty days after the date of the request.
7 33 Sec. 18. NEW SECTION. 552B.211 PERIOD FOR FINAL DECISION
7 34 TO APPROVE OR DENY.
7 35 Unless the applicant and the director agree in writing to a
8 1 later date, the director shall approve or deny an application
8 2 before the sixty-first day after the later of the date on
8 3 which either of the following occurs:
8 4 1. The application is filed and the required fees are
8 5 paid.
8 6 2. A hearing on the application is completed.
8 7 Sec. 19. NEW SECTION. 552B.212 DISPOSITION OF FEES ON
8 8 DENIAL OF APPLICATION.
8 9 If the director denies an application, the director shall
8 10 retain the investigation fee and shall return to the applicant
8 11 the annual license fee submitted with the application.
8 12 Sec. 20. NEW SECTION. 552B.213 ANNUAL LICENSE FEE –
8 13 EXPIRATION.
8 14 1. Not later than December 1 of each year, a pawnbroker
8 15 shall pay the annual fee specified in section 552B.205 to the
8 16 director for each license held for the next calendar year.
8 17 2. If the annual fee for a license is not paid before the
8 18 sixteenth day after the date on which written notice of
8 19 delinquency of payment has been given to the pawnbroker by the
8 20 director, the license expires on the later of that day or
8 21 December 31 of the last year for which an annual fee was paid.
8 22 Sec. 21. NEW SECTION. 552B.214 REDUCTION IN ANNUAL
8 23 LICENSE FEE.
8 24 If a pawnshop license is issued on an application which was
8 25 filed after June 30, both of the following shall occur:
8 26 1. The annual license fee for the remainder of the year is
8 27 fifty dollars.
8 28 2. The director shall return to the applicant the
8 29 difference between the fee specified in this section and the
8 30 annual fee paid with the application if the applicant paid the
8 31 fee amount specified in section 552B.205.
8 32 Sec. 22. NEW SECTION. 552B.215 TEMPORARY LICENSE.
8 33 1. The director may issue a temporary pawnshop license on
8 34 receipt of an application for either of the following:
8 35 a. An application to transfer a license from one person to
9 1 another.
9 2 b. An application for a license involving principals and
9 3 owners that are substantially identical to those of an
9 4 existing licensed pawnshop.
9 5 2. A temporary pawnshop license is effective until a
9 6 permanent pawnshop license is issued or denied.
9 7 Sec. 23. NEW SECTION. 552B.216 CONTENTS AND DISPLAY OF
9 8 LICENSE.
9 9 1. At a minimum, a pawnshop license shall state all of the
9 10 following:
9 11 a. The name of the pawnbroker.
9 12 b. The address at which the business is conducted.
9 13 2. A pawnbroker shall display a pawnshop license at the
9 14 place of business listed on the license.
9 15 Sec. 24. NEW SECTION. 552B.217 MULTIPLE PLACES OF
9 16 BUSINESS.
9 17 1. A separate pawnshop license is required for each place
9 18 of business operated under this chapter.
9 19 2. The director may issue more than one license to a
9 20 person if the person complies with this chapter for each
9 21 license.
9 22 Sec. 25. NEW SECTION. 552B.218 CHANGE OF OWNERSHIP.
9 23 1. An application for an original pawnshop license or the
9 24 transfer of a pawnshop license is required if a change in
9 25 direct or beneficial ownership of a licensed pawnshop occurs.
9 26 2. This section does not apply to a change in direct or
9 27 beneficial ownership of a licensed pawnshop if the pawnshop is
9 28 owned directly or beneficially by a person who meets all of
9 29 the following criteria:
9 30 a. The person is an issuer of securities who is described
9 31 by section 552B.204, subsection 3, paragraph "a".
9 32 b. The person is described by section 552B.204, subsection
9 33 3, paragraph "b", and has submitted to the director each
9 34 filing required by section 15(d) of the federal Securities
9 35 Exchange Act of 1934 and paid a filing fee of one hundred
10 1 dollars with each filing.
10 2 c. The person has filed information on officers and
10 3 members of the board of directors of the issuer or any
10 4 licensed or intermediate subsidiary as required by section
10 5 552B.204 for officers and members of boards of directors of a
10 6 corporation.
10 7 Sec. 26. NEW SECTION. 552B.219 TRANSFER OR ASSIGNMENT OF
10 8 LICENSE.
10 9 A pawnshop license may be transferred or assigned only with
10 10 the approval of the director.
10 11 Sec. 27. NEW SECTION. 552B.220 NOTICE OF RELOCATION.
10 12 1. A pawnbroker who wishes to move a pawnshop from the
10 13 location provided on the license must do one of the following:
10 14 a. Give notice to the director before the thirtieth day
10 15 preceding the date the pawnbroker moves if the new location
10 16 does not meet the criteria contained in section 552B.209,
10 17 subsection 2.
10 18 b. Make application to the director before the sixtieth
10 19 day proceeding the date the pawnbroker moves if the new
10 20 location does not meet the criteria contained in section
10 21 552B.209, subsection 2.
10 22 2. When the director receives a notice under subsection 1,
10 23 paragraph "a", the director shall amend the pawnshop license
10 24 accordingly.
10 25 Sec. 28. NEW SECTION. 552B.221 NET ASSETS REQUIREMENT.
10 26 1. Except as provided by this section, a pawnbroker shall
10 27 maintain net assets of at least one hundred fifty thousand
10 28 dollars that may be used or are readily available for use in
10 29 the business of each pawnshop.
10 30 2. If a change in ownership or a relocation from a
10 31 municipality occurs, the net assets requirement for a
10 32 pawnbroker is an amount equal to the sum, rounded up to the
10 33 nearest multiple of five thousand dollars of all of the
10 34 following:
10 35 a. The pawnbroker's outstanding loans on the date of the
11 1 change of ownership or relocation.
11 2 b. The value of the pawnbroker's inventory on the date of
11 3 the change of ownership or relocation.
11 4 c. An amount equal to five percent of the sum of the
11 5 amounts described by paragraphs "a" and "b".
11 6 3. The net assets requirement of subsection 2 shall not be
11 7 either of the following:
11 8 a. Less than the amount of net assets required immediately
11 9 before the date of the change of ownership or relocation.
11 10 b. More than one hundred fifty thousand dollars.
11 11 4. Net assets shall be represented by a capital investment
11 12 unencumbered by a lien or other encumbrance and subject to a
11 13 claim by a general creditor.
11 14 5. This section does not apply to a change in ownership
11 15 that is any of the following:
11 16 a. A transaction involving a different owner who had a
11 17 family or significant business relationship with a prior owner
11 18 before the transaction.
11 19 b. A transaction which meets both of the following
11 20 criteria:
11 21 (1) Only the number or proportionate ownership interest of
11 22 the owners of the business changes.
11 23 (2) An individual who was not an owner before the
11 24 transaction is not an owner after the transaction.
11 25 c. A change in ownership that occurs by testate or
11 26 intestate disposition.
11 27 Sec. 29. NEW SECTION. 552B.222 APPOINTMENT OF AGENT.
11 28 1. A pawnbroker shall maintain on file with the director a
11 29 written appointment of a resident of this state as the
11 30 pawnbroker's agent for service of all judicial or other
11 31 process or legal notice.
11 32 2. If a pawnbroker fails to file a written appointment of
11 33 an agent, service of all judicial or other process or legal
11 34 notice may be made on the director.
11 35 SUBCHAPTER III
12 1 PAWNSHOP EMPLOYEE LICENSE
12 2 Sec. 30. NEW SECTION. 552B.301 PAWNSHOP EMPLOYEE LICENSE
12 3 REQUIRED.
12 4 1. An individual who begins employment at a pawnshop shall
12 5 apply to the director for a pawnshop employee license not
12 6 later than the thirtieth day after the date employment begins.
12 7 2. The individual may continue employment until the
12 8 license is issued or denied.
12 9 3. A pawnbroker shall not employ an individual to write a
12 10 pawn transaction, buy or sell merchandise, or supervise
12 11 another employee who writes pawn transactions or buys or sells
12 12 merchandise unless one of the following criteria is met:
12 13 a. The individual complies with subsection 1, but has not
12 14 been issued or denied a license.
12 15 b. The individual holds a pawnshop employee license.
12 16 4. Subsection 3 does not apply to an individual who has an
12 17 ownership interest in the pawnshop license or who is named in
12 18 the pawnshop license application.
12 19 Sec. 31. NEW SECTION. 552B.302 ELIGIBILITY.
12 20 1. To be eligible for a pawnshop employee license, an
12 21 individual must be both of the following:
12 22 a. Of good moral character and good business repute.
12 23 b. Possess the character and general fitness necessary to
12 24 warrant belief that the individual will operate the business
12 25 lawfully and fairly under this chapter.
12 26 2. The director is the licensing authority and shall
12 27 determine if eligibility criteria are met.
12 28 Sec. 32. NEW SECTION. 552B.303 LICENSE APPLICATION –
12 29 FEES.
12 30 1. An application for a pawnshop employee license must
12 31 state all of the following:
12 32 a. The applicant's name and address.
12 33 b. The name of the pawnshop at which the applicant is
12 34 employed.
12 35 c. Whether any of the following are true of the applicant:
13 1 (1) The applicant has been convicted of or is under
13 2 indictment for a crime.
13 3 (2) The applicant has had a license to engage in an
13 4 occupation, business, or profession revoked or suspended.
13 5 (3) The applicant has been denied an occupational,
13 6 business, or professional license, including a pawnshop
13 7 employee license, in this or another state.
13 8 d. If the applicant has had a license described by
13 9 paragraph "c", subparagraphs (2) and (3), revoked, suspended,
13 10 or denied, the reason for the action.
13 11 e. Each business or occupation in which the applicant
13 12 engaged for the five years preceding the date of application.
13 13 f. Other relevant information the director requires.
13 14 2. An investigation and annual fee of twenty-five dollars
13 15 shall accompany the application.
13 16 Sec. 33. NEW SECTION. 552B.304 APPROVAL OR DENIAL OF
13 17 APPLICATION.
13 18 1. Not later than sixty days after the date an application
13 19 is filed, the director shall determine whether the applicant
13 20 qualifies for a pawnshop employee license.
13 21 2. The director shall approve the application and issue a
13 22 license if the director finds that the applicant qualifies for
13 23 a license.
13 24 3. If the director does not make the finding required by
13 25 subsection 2, the director shall notify the applicant and the
13 26 employing pawnbroker in writing that the application will be
13 27 denied unless the applicant, in writing and not later than
13 28 thirty days after the date of the notice, requests a hearing
13 29 on the application.
13 30 4. An application shall be deemed denied on the thirty-
13 31 first day after the date of the notice of denial if the
13 32 applicant does not request a hearing in the time allowed.
13 33 5. If an applicant requests a hearing in the time allowed,
13 34 the director shall conduct a hearing on the application. Upon
13 35 the conclusion of the hearing, the director shall approve or
14 1 deny the application.
14 2 Sec. 34. NEW SECTION. 552B.305 LICENSE TERM.
14 3 A pawnshop employee license is effective until the license
14 4 expires or is surrendered, suspended, or revoked.
14 5 Sec. 35. NEW SECTION. 552B.306 ANNUAL LICENSE FEE –
14 6 EXPIRATION.
14 7 1. Not later than December 1 of each year, a pawnshop
14 8 employee license holder shall pay to the director an annual
14 9 fee of ten dollars for the next following calendar year.
14 10 2. By December 8 of each year, the director shall send a
14 11 written notice of delinquency to a license holder who does not
14 12 pay the fee on or before December 1.
14 13 3. If the annual fee for a license is not paid before the
14 14 sixteenth day after the date the delinquency notice was sent,
14 15 the license expires on the later of that day or January 1 of
14 16 the calendar year for which the annual fee was not paid.
14 17 SUBCHAPTER IV
14 18 OPERATION OF PAWNSHOPS
14 19 Sec. 36. NEW SECTION. 552B.401 HOURS OF OPERATION.
14 20 1. A pawnbroker shall maintain business hours of at least
14 21 four hours a day for five days a week.
14 22 2. A pawnbroker shall not do business before 7 a.m. or
14 23 after 9 p.m.
14 24 Sec. 37. NEW SECTION. 552B.402 RECORDKEEPING.
14 25 1. A pawnbroker, consistent with accepted accounting
14 26 practices, shall keep adequate books and records relating to
14 27 the pawnbroker's pawn transactions and any other business
14 28 regulated by this chapter.
14 29 2. Books and records shall be preserved at least until the
14 30 second anniversary of the date of the last transaction
14 31 recorded in the particular book or record.
14 32 Sec. 38. NEW SECTION. 552B.403 NOTICE OF OPERATION OF
14 33 OTHER BUSINESS.
14 34 1. A pawnbroker shall notify the director before the
14 35 pawnbroker conducts or allows another person to conduct at the
15 1 pawnshop a business other than the business of a pawnbroker or
15 2 the business of buying and selling goods.
15 3 2. The director may refuse to permit a person other than
15 4 the pawnbroker to operate the other business on the pawnshop
15 5 premises if the director finds that the operation is
15 6 inconsistent with this chapter.
15 7 3. A pawnbroker shall notify the director of any location
15 8 at which the pawnbroker or an applicant for a pawnshop license
15 9 operates a buy shop, secondhand merchandise store, retail
15 10 outlet, or similar business or any business to which the
15 11 pawnbroker regularly transfers goods from the pawnshop.
15 12 Sec. 39. NEW SECTION. 552B.404 INSURANCE AND BOND.
15 13 1. A pawnbroker shall maintain general liability and fire
15 14 insurance in a reasonable amount and form as required by the
15 15 director which shall be sufficient to protect pledged goods,
15 16 including jewelry, at the pawnshop.
15 17 2. A pawnbroker shall maintain a bond meeting all of the
15 18 following requirements:
15 19 a. In the amount, not to exceed five thousand dollars, as
15 20 required by the director.
15 21 b. In the form required by the director.
15 22 c. Conditioned on compliance with this chapter and rules
15 23 adopted under this chapter.
15 24 Sec. 40. NEW SECTION. 552B.405 PAWNSHOP SECURITY.
15 25 1. A pawnshop shall have both of the following:
15 26 a. One or more alarm systems sufficient to detect and
15 27 signal unauthorized entry or the presence of an unauthorized
15 28 person, to provide for the security of pledged goods.
15 29 b. A safe of a type approved by the pawnbroker's insurance
15 30 underwriter, to provide for the security of pledged jewelry.
15 31 2. The director may adopt rules related to the keeping of
15 32 firearms used solely for the security of the pawnshop by the
15 33 pawnbroker.
15 34 Sec. 41. NEW SECTION. 552B.406 PAWN TRANSACTION.
15 35 1. Items that are usually sold as a set are considered a
16 1 single item and must be included in the same pawn transaction.
16 2 2. A pledged item together with items that are accessories
16 3 to the pledged item are considered a single item and must be
16 4 included in the same pawn transaction.
16 5 3. Each pawn transaction retains its separate character
16 6 when it is renewed, unless the parties agree otherwise.
16 7 4. A pawnbroker shall not divide a pawn transaction into
16 8 more than one transaction to obtain, or with the effect of
16 9 obtaining, a total pawn service charge that exceeds the charge
16 10 authorized for an amount equal to the total of the amounts
16 11 financed in the resulting transactions.
16 12 Sec. 42. NEW SECTION. 552B.407 PAWN TICKET.
16 13 A pawnbroker, at the time of entering into a pawn
16 14 transaction, shall deliver to the pledgor a pawn ticket or
16 15 other memorandum that clearly shows all of the following:
16 16 1. The name and address of the pawnshop.
16 17 2. The pledgor's name, address, and physical description
16 18 and a driver's license number, military identification number,
16 19 identification certificate number, or other official number
16 20 that can identify the pledgor.
16 21 3. The date of the transaction.
16 22 4. An identification and description of the pledged goods,
16 23 including serial numbers if reasonably available.
16 24 5. The amount of cash advanced or credit extended to the
16 25 pledgor, designated as "amount financed".
16 26 6. The amount of the pawn service charge, designated as
16 27 "finance charge".
16 28 7. The total amount, consisting of the amount financed
16 29 plus the finance charge, that must be paid to redeem the
16 30 pledged goods on the maturity date, designated as "total of
16 31 payments".
16 32 8. The annual percentage rate computed according to
16 33 regulations issued by the federal reserve board under the
16 34 Truth in Lending Act, 15 U.S.C. } 1601 et seq., as amended.
16 35 9. The maturity date of the pawn transaction.
17 1 10. A statement that the pledgor is not obligated to
17 2 redeem the pledged goods and that the pledged goods may be
17 3 forfeited to the pawnbroker on the sixty-first day after the
17 4 maturity date.
17 5 Sec. 43. NEW SECTION. 552B.408 AMOUNT FINANCED.
17 6 The director shall adopt rules limiting the amount that may
17 7 be financed by a pawn transaction.
17 8 Sec. 44. NEW SECTION. 552B.409 PAWN SERVICE CHARGE.
17 9 1. A pawnbroker shall not contract for, charge, or receive
17 10 an amount, other than a pawn service charge, as a charge for
17 11 credit in connection with a pawn transaction.
17 12 2. A pawn service charge shall not exceed the charge
17 13 disclosed in the pawn ticket or other memorandum delivered to
17 14 the pledgor.
17 15 3. The director shall adopt rules to establish limits on
17 16 the amount that may be charged as a pawn service charge.
17 17 Sec. 45. NEW SECTION. 552B.410 MATURITY DATE –
17 18 MEMORANDUM OF EXTENSION.
17 19 1. A pawnbroker shall not enter into a pawn transaction
17 20 that has a maturity date which is later than one month from
17 21 the date of the transaction.
17 22 2. The pledgor and the pawnbroker, by written agreement,
17 23 may change the maturity date of a pawn transaction to a date
17 24 which is later than the date specified on the pawn ticket.
17 25 3. The written agreement under subsection 2 shall clearly
17 26 set out the new redemption date and the amount of any
17 27 additional pawn service charge.
17 28 4. A pawnbroker shall provide a copy of the written
17 29 agreement to the pledgor.
17 30 Sec. 46. NEW SECTION. 552B.411 EARLY REDEMPTION –
17 31 REDUCTION OF PAWN SERVICE CHARGE.
17 32 If a pledgor redeems the pledged goods before the maturity
17 33 date of the pawn transaction, any part of the pawn service
17 34 charge that exceeds fifteen dollars shall be reduced by an
17 35 amount equal to one-thirtieth of the total pawn service charge
18 1 for each day between the date on which redemption occurs and
18 2 the original maturity date.
18 3 Sec. 47. NEW SECTION. 552B.412 PRESENTATION OF TICKET –
18 4 PRESUMPTION.
18 5 A person who presents proper identification and a pawn
18 6 ticket to the pawnbroker is presumed to be entitled to redeem
18 7 the pledged goods described by the pawn ticket.
18 8 Sec. 48. NEW SECTION. 552B.413 LOST OR DESTROYED TICKET.
18 9 1. If a pawn ticket is lost, destroyed, or stolen, the
18 10 pledgor may notify the pawnbroker of that fact in writing.
18 11 Receipt of this notice invalidates the pawn ticket if the
18 12 pledged goods have not been redeemed.
18 13 2. The pawnbroker shall require the pledgor to make a
18 14 written statement of the loss, destruction, or theft before
18 15 the pawnbroker permits the goods to be redeemed or issues a
18 16 new pawn ticket.
18 17 3. The pawnbroker shall include on the written statement
18 18 all of the following:
18 19 a. The identifying information required by section
18 20 552B.407, subsection 2.
18 21 b. The date the statement is made.
18 22 c. The number of the pawn ticket which was lost,
18 23 destroyed, or stolen.
18 24 4. The statement shall be signed by the pawnbroker or the
18 25 pawnshop employee who accepts the statement from the pledgor.
18 26 5. A pawnbroker is entitled to a fee of not more than one
18 27 dollar in connection with the accepting of a written statement
18 28 under this section.
18 29 Sec. 49. NEW SECTION. 552B.414 DUTY OF REASONABLE CARE.
18 30 A pawnbroker shall exercise reasonable care to protect
18 31 pledged goods from loss or damage.
18 32 Sec. 50. NEW SECTION. 552B.415 RETURN OF PLEDGED GOODS.
18 33 A pawnbroker shall return pledged goods to the pledgor on
18 34 payment of the total amount due the pawnbroker in connection
18 35 with the pawn transaction.
19 1 Sec. 51. NEW SECTION. 552B.416 REDEMPTION BY MAIL.
19 2 A pawnbroker shall permit a pledgor to redeem pledged goods
19 3 by mail.
19 4 Sec. 52. NEW SECTION. 552B.417 LOST OR DAMAGED GOODS.
19 5 1. A pawnbroker shall replace pledged goods that are lost
19 6 or damaged while in the pawnbroker's possession with like kind
19 7 merchandise. The replacement is subject to approval by the
19 8 director.
19 9 2. For purposes of this section, goods are considered lost
19 10 if the goods are destroyed, stolen, or have disappeared and
19 11 are unavailable for return to the pledgor prior to the time
19 12 specified in section 552B.419 of forfeiture of the goods to
19 13 the pawnbroker.
19 14 Sec. 53. NEW SECTION. 552B.418 EXEMPTION FROM CRIMINAL
19 15 LIABILITY.
19 16 A pawnbroker is not criminally liable for damages or loss
19 17 due to an act of God or circumstances beyond the pawnbroker's
19 18 control.
19 19 Sec. 54. NEW SECTION. 552B.419 UNREDEEMED PLEDGED GOODS
19 20 – FORFEITURE.
19 21 1. A pawnbroker shall hold pledged goods not redeemed by
19 22 the pledgor for at least sixty days after the maturity date
19 23 specified in the pawn ticket issued in connection with the
19 24 pawn transaction.
19 25 2. On or before the sixtieth day after the original
19 26 maturity date, the pledgor may redeem the pledged goods by
19 27 paying both of the following:
19 28 a. The originally agreed redemption price.
19 29 b. An additional pawn service charge equal to one-
19 30 thirtieth of the original monthly pawn service charge for each
19 31 day after the original maturity date, including the day on
19 32 which the pledged goods are finally redeemed.
19 33 3. Pledged goods which are not redeemed on or before the
19 34 sixtieth day after the original maturity date may, unless the
19 35 maturity date has been extended pursuant to section 552B.410,
20 1 subsection 2, at the option of the pawnbroker, be forfeited to
20 2 the pawnbroker.
20 3 Sec. 55. NEW SECTION. 552B.420 REDEMPTION OR PAYMENT BY
20 4 PLEDGOR NOT REQUIRED.
20 5 A pledgor is not obligated to redeem pledged goods or to
20 6 make a payment on a pawn transaction.
20 7 Sec. 56. NEW SECTION. 552B.421 AGREEMENT REQUIRING
20 8 PLEDGOR'S PERSONAL LIABILITY PROHIBITED.
20 9 A pawnbroker shall not enter into an agreement requiring
20 10 the personal liability of the pledgor in connection with a
20 11 pawn transaction.
20 12 Sec. 57. NEW SECTION. 552B.422 WAIVER OF PLEDGOR'S
20 13 RIGHTS PROHIBITED.
20 14 A pawnbroker shall not accept a waiver of a right or
20 15 protection by a pledgor under this chapter.
20 16 Sec. 58. NEW SECTION. 552B.423 INSURANCE CHARGE LIMITED.
20 17 A pawnbroker shall not impose a charge for insurance in
20 18 connection with a pawn transaction, except that a pawnbroker
20 19 may impose a charge in the amount of the actual cost to insure
20 20 pledged goods being shipped to a pledgor who redeems the goods
20 21 by mail.
20 22 Sec. 59. NEW SECTION. 552B.424 IDENTIFICATION OF PLEDGOR
20 23 OR SELLER REQUIRED.
20 24 1. A pawnbroker shall require identification of either of
20 25 the following:
20 26 a. The pledgor if a transaction is a pawn transaction.
20 27 b. The seller if a transaction is a purchase of goods by
20 28 the pawnbroker.
20 29 2. Identification is acceptable only if it contains a
20 30 photograph of the pledgor or seller and is one of the
20 31 following:
20 32 a. A state driver's license.
20 33 b. A nonoperator's identification card.
20 34 c. A passport.
20 35 d. A military identification card or document.
21 1 e. A nonresident alien border crossing card.
21 2 f. A resident alien border crossing card.
21 3 g. A United States immigration and naturalization service
21 4 identification card or document.
21 5 3. A pawnbroker shall make the pawnbroker's best effort to
21 6 determine whether the identification is genuine and unaltered
21 7 and properly identifies the pledgor or seller.
21 8 Sec. 60. NEW SECTION. 552B.425 PROPERTY IDENTIFICATION
21 9 TAGS REQUIRED.
21 10 1. A pawnshop shall identify by a tag or similar means
21 11 each item of goods located in the pawnshop that has a retail
21 12 or sale value of more than ten dollars and can be tagged or
21 13 similarly identified.
21 14 2. This section does not apply to the personal effects of
21 15 a person in the pawnshop or the furniture, fixtures, or
21 16 equipment of the pawnshop.
21 17 Sec. 61. NEW SECTION. 552B.426 TRANSACTIONS WITH MINORS
21 18 OR PERSONS UNDER THE INFLUENCE OF ALCOHOL OR DRUGS PROHIBITED.
21 19 A pawnbroker shall not do either of the following:
21 20 1. Enter into a pawn transaction with or purchase property
21 21 from a person who is under eighteen years of age.
21 22 2. Transact business with a person that the pawnbroker or
21 23 employee of the pawnshop believes to be under the influence of
21 24 alcohol or drugs.
21 25 Sec. 62. NEW SECTION. 552B.427 PURCHASE OF USED PERSONAL
21 26 PROPERTY.
21 27 A pawnbroker shall not purchase used personal property from
21 28 a person other than another pawnbroker unless a record is
21 29 established that contains all of the following:
21 30 1. The seller's name, address, and physical description
21 31 and a driver's license number, military identification number,
21 32 identification certificate number, or other official number
21 33 that can identify the seller.
21 34 2. A complete description of the property, including the
21 35 serial number, if reasonably available, or other identifying
22 1 characteristics.
22 2 3. The seller's signed statement that the seller has the
22 3 right to sell the property.
22 4 Sec. 63. NEW SECTION. 552B.428 ACCEPTANCE OF BUILDING
22 5 CONSTRUCTION MATERIALS.
22 6 1. A pawnbroker shall not accept the pledge of building
22 7 construction materials unless a record is established that
22 8 contains the information required by section 552B.427.
22 9 2. In this section, "building construction materials"
22 10 includes:
22 11 a. Copper pipe, tubing, or wiring.
22 12 b. Aluminum wire.
22 13 c. Plumbing supplies.
22 14 d. Electrical supplies.
22 15 e. Window glass.
22 16 f. Lumber.
22 17 g. Other similar materials.
22 18 Sec. 64. NEW SECTION. 552B.429 DISPLAYS OF CERTAIN
22 19 WEAPONS PROHIBITED.
22 20 A pawnbroker shall not display any of the following for
22 21 sale in a storefront window or sidewalk display case or depict
22 22 any of the following on a sign or advertisement in such a way
22 23 that the item, sign, or advertisement may be viewed from a
22 24 street:
22 25 1. A pistol.
22 26 2. A dirk.
22 27 3. A dagger.
22 28 4. A blackjack.
22 29 5. A hand chain.
22 30 6. A sword cane.
22 31 7. Knuckles made of metal or any other hard substance.
22 32 8. A switchblade, springblade, or throwblade knife.
22 33 Sec. 65. NEW SECTION. 552B.430 ADVERTISEMENTS.
22 34 1. A person who does not hold a pawnshop license shall not
22 35 do either of the following:
23 1 a. Advertise or cause to be advertised the making,
23 2 arranging, or negotiating of credit or a loan secured by a
23 3 pledge of goods which is subject to the requirements of this
23 4 chapter.
23 5 b. Use in an advertisement a word, symbol, or statement
23 6 that states or suggests that the person is a pawnbroker.
23 7 2. In each advertisement that purports to offer credit or
23 8 a loan subject to this chapter, the advertiser shall disclose
23 9 the legal or registered name of the advertiser and the street
23 10 address of the advertiser's place of business. This
23 11 subsection does not apply to an advertisement located on the
23 12 premises of the advertiser's place of business.
23 13 Sec. 66. NEW SECTION. 552B.431 STOLEN GOODS.
23 14 1. A pawnbroker shall monitor goods purchased, accepted in
23 15 pawn, or otherwise acquired by the pawnbroker in order to
23 16 identify and avoid transactions involving stolen goods.
23 17 2. The director shall adopt rules that allow both of the
23 18 following:
23 19 a. A consumer who has filed an offense report with a local
23 20 law enforcement agency to request that a pawnbroker search the
23 21 records of the pawnshop.
23 22 b. The pawnbroker to assist the consumer and the local law
23 23 enforcement agency in locating and recovering stolen property.
23 24 Sec. 67. NEW SECTION. 552B.432 HOLD PERIOD.
23 25 The director shall establish a reasonable hold period
23 26 during which a pawnbroker shall not sell or otherwise dispose
23 27 of an item of goods acquired and offered for sale or other
23 28 disposition by the pawnbroker.
23 29 Sec. 68. NEW SECTION. 552B.433 CONSUMER INFORMATION.
23 30 The director may require a pawnshop to display, in an area
23 31 in the pawnshop accessible to a consumer, materials provided
23 32 by the director that are designed to do both of the following:
23 33 1. Inform a consumer of the duties, rights, and
23 34 responsibilities of parties to a transaction regulated by the
23 35 director.
24 1 2. Inform and assist a robbery, burglary, or theft victim
24 2 in determining whether pawnshop goods are goods which belonged
24 3 to the victim.
24 4 Sec. 69. NEW SECTION. 552B.434 DISPLAYS AND SIGNS.
24 5 The director may adopt rules related to the use of an
24 6 outdoor display or sign at a pawnshop.
24 7 Sec. 70. NEW SECTION. 552B.435 MAINTENANCE OF PREMISES.
24 8 The director may adopt rules related to the maintenance of
24 9 pawnshop premises.
24 10 SUBCHAPTER V
24 11 INSPECTIONS AND EXAMINATIONS
24 12 Sec. 71. NEW SECTION. 552B.501 EXAMINATION BY DIRECTOR.
24 13 At any time the director considers necessary, the director
24 14 or the director's representative may do any of the following:
24 15 1. Enter and examine a pawnbroker's place of business.
24 16 2. Inspect and audit a pawnbroker's transactions, books,
24 17 accounts, papers, correspondence, or other records that relate
24 18 to the business of the pawnbroker.
24 19 3. Examine or inspect purchased or pledged goods and goods
24 20 required to be identified by section 552B.427.
24 21 Sec. 72. NEW SECTION. 552B.502 ACCESS TO RECORDS –
24 22 COPIES.
24 23 1. During an inspection or examination, the pawnbroker
24 24 shall give the director or the director's representative free
24 25 access to the pawnbroker's office, place of business, files,
24 26 safe, and any vault.
24 27 2. The director or the representative is entitled to copy
24 28 any book, account, paper, correspondence, or other record that
24 29 relates to the business of the pawnbroker.
24 30 Sec. 73. NEW SECTION. 552B.503 OATHS.
24 31 During an examination the director or the director's
24 32 representative may administer an oath and examine a person
24 33 under oath on a subject relating to a matter regarding which
24 34 the director is authorized or required by this chapter to
24 35 consider, investigate, or secure information.
25 1 Sec. 74. NEW SECTION. 552B.504 INSPECTION BY PEACE
25 2 OFFICER.
25 3 A pawnbroker shall allow a peace officer to inspect the
25 4 pawnbroker's books, accounts, papers, correspondence, or other
25 5 records that relate to the business of the pawnbroker at any
25 6 reasonable time without judicial writ or other process.
25 7 Sec. 75. NEW SECTION. 552B.505 REFUSAL TO ALLOW
25 8 EXAMINATION OR INSPECTION.
25 9 A pawnbroker who fails or refuses to permit an examination
25 10 or copying of books or other documents or an examination or
25 11 inspection of goods authorized by this subchapter violates
25 12 this chapter. The failure or refusal is grounds for the
25 13 suspension or revocation of the pawnbroker's license.
25 14 Sec. 76. NEW SECTION. 552B.506 CONFIDENTIALITY.
25 15 Information obtained during an examination or inspection
25 16 authorized by this subchapter is confidential and privileged
25 17 except when used by the director or in a criminal
25 18 investigation or prosecution.
25 19 Sec. 77. NEW SECTION. 552B.507 FEE.
25 20 A pawnbroker shall pay to the director an amount assessed
25 21 by the director to cover the direct and indirect costs of any
25 22 examination and a proportionate share of general
25 23 administrative expenses.
25 24 Sec. 78. NEW SECTION. 552B.508 VERIFICATION OF NET
25 25 ASSETS.
25 26 If the director questions the amount of a pawnbroker's net
25 27 assets, the director may require audit of the net assets and
25 28 certification by an independent certified public accountant
25 29 regarding all of the following:
25 30 1. The accountant has reviewed the pawnbroker's books,
25 31 other records, and transactions during the reporting year.
25 32 2. The books and other records are maintained using
25 33 generally accepted accounting principles.
25 34 3. The pawnbroker meets the net assets requirement of
25 35 section 552B.221.
26 1 SUBCHAPTER VI
26 2 LICENSE REVOCATION, SUSPENSION, AND SURRENDER
26 3 Sec. 79. NEW SECTION. 552B.601 REVOCATION OR SUSPENSION
26 4 OF PAWNSHOP LICENSE.
26 5 1. After notice and hearing, the director may revoke or
26 6 suspend a pawnshop license if the director finds any of the
26 7 following:
26 8 a. The pawnbroker has not paid a fee or charge imposed by
26 9 the director under this chapter.
26 10 b. The pawnbroker, knowingly or without exercising due
26 11 care to prevent the violation, has violated this chapter or a
26 12 rule adopted or an order issued under this chapter.
26 13 c. A fact or condition exists that, if it had existed or
26 14 had been known to exist at the time of the original license
26 15 application, would have resulted in a refusal to issue the
26 16 license.
26 17 d. The pawnbroker has established a business association
26 18 with an unlicensed person who, with the knowledge of the
26 19 pawnbroker, has violated this chapter.
26 20 e. The pawnbroker has aided or conspired with a person to
26 21 circumvent this chapter.
26 22 f. The pawnbroker or a legal or beneficial owner of the
26 23 pawnbroker is not of good moral character or has been
26 24 convicted of a crime that the director finds directly relates
26 25 to the duties and responsibilities of the occupation of
26 26 pawnbroker or would otherwise make the person unfit for a
26 27 pawnshop license under section 552B.202.
26 28 g. The financial responsibility, experience, character, or
26 29 general fitness of the pawnbroker or the owners and managers
26 30 of the pawnshop do not command the confidence of the public or
26 31 warrant the belief that the business will be operated
26 32 lawfully, fairly, and within the purposes of this chapter.
26 33 h. The pawnbroker has not maintained the minimum net
26 34 assets required by section 552B.221.
26 35 2. In addition to revoking or suspending a license, the
27 1 director may do either of the following:
27 2 a. Place on probation a person whose license is suspended.
27 3 b. Reprimand a pawnbroker for violating this chapter or a
27 4 rule adopted under this chapter.
27 5 Sec. 80. NEW SECTION. 552B.602 EFFECT OF REVOCATION,
27 6 SUSPENSION, OR SURRENDER OF PAWNSHOP LICENSE.
27 7 Revocation, suspension, or surrender of a pawnshop license
27 8 does not affect a preexisting contract between the pawnbroker
27 9 and a pledgor.
27 10 Sec. 81. NEW SECTION. 552B.603 NOTICE OF REVOCATION.
27 11 1. Upon revocation or surrender of a pawnshop license by
27 12 the director, the pawnbroker shall send notice of the
27 13 revocation or surrender to each pledgor with goods in the
27 14 possession of, but not forfeited to, the pawnbroker on the
27 15 revocation or surrender date.
27 16 2. The notice must be in a form prescribed by the director
27 17 and mailed not later than the fifth day after the revocation
27 18 or surrender date to the pledgor at the address recorded on
27 19 the pawn ticket.
27 20 Sec. 82. NEW SECTION. 552B.604 REDEMPTION OF GOODS AFTER
27 21 LICENSE REVOCATION, SUSPENSION, OR SURRENDER.
27 22 1. After revocation of a pawnshop license, the pawnbroker,
27 23 for the sole purpose of allowing a pledgor to redeem pledged
27 24 goods, shall maintain usual business hours at the pawnshop for
27 25 sixty days after the latest maturity date of any pawn
27 26 transaction made at that pawnshop.
27 27 2. If after the revocation of a license and within the
27 28 period provided by section 552B.419 a pledgor requests an
27 29 extension of that period, the pawnbroker shall grant an
27 30 extension not to exceed thirty days.
27 31 3. The director may exercise any authority conferred on
27 32 the director to protect the interest of a pledgor of goods in
27 33 the possession of a pawnbroker, whose license has been
27 34 revoked, including assessment of a penalty or administrative
27 35 enforcement under this chapter.
28 1 4. On suspension or surrender of a pawnshop license by the
28 2 director, the pawnbroker shall maintain the pawnshop's usual
28 3 business hours during the suspension for the sole purpose of
28 4 allowing a pledgor to redeem goods or to renew a pawn
28 5 transaction that matures during the suspension.
28 6 5. A pawnbroker shall renew a pawn transaction that
28 7 matures during a suspension if, not later than the sixtieth
28 8 day after the maturity date, the pledgor requests a renewal.
28 9 Sec. 83. NEW SECTION. 552B.605 REVOCATION OR SUSPENSION
28 10 OF PAWNSHOP EMPLOYEE LICENSE.
28 11 After notice and hearing, the director may revoke or
28 12 suspend a pawnshop employee license if the director finds any
28 13 of the following:
28 14 1. The license holder knowingly or recklessly violated
28 15 this chapter or a rule adopted or order issued under this
28 16 chapter.
28 17 2. A fact or condition exists that, if it had existed or
28 18 had been known to exist at the time of the original pawnshop
28 19 employee license application, would have resulted in a refusal
28 20 to issue the license.
28 21 3. The moral character, business repute, and general
28 22 fitness of the license holder do not warrant belief that the
28 23 license holder will operate the business lawfully and fairly
28 24 within the provisions of this chapter.
28 25 Sec. 84. NEW SECTION. 552B.606 HEARING.
28 26 1. The director shall send written notice of a pawnshop
28 27 employee license revocation or suspension hearing to the
28 28 license holder and the employing pawnbroker.
28 29 2. The director shall hold the hearing not earlier than
28 30 twenty-one days after the date the notice was sent.
28 31 Sec. 85. NEW SECTION. 552B.607 SURRENDER OF LICENSE.
28 32 1. The holder of a pawnshop license or a pawnshop employee
28 33 license may surrender the license by delivering it to the
28 34 director with written notice of surrender.
28 35 2. Surrender shall not affect a license holder's civil or
29 1 criminal liability for an act committed before the surrender.
29 2 Sec. 86. NEW SECTION. 552B.608 REINSTATEMENT OF LICENSE.
29 3 1. This section applies to a pawnshop license or a
29 4 pawnshop employee license.
29 5 2. The director may reinstate a suspended pawnshop license
29 6 or pawnshop employee license or issue a new license to the
29 7 person whose license or licenses have been revoked if no fact
29 8 or condition exists that would warrant refusal to issue the
29 9 license.
29 10 Sec. 87. NEW SECTION. 552B.609 CERTIFICATE OF STANDING
29 11 – COPIES.
29 12 The director, under the director's seal and signature,
29 13 shall provide a certificate of good standing or a certified
29 14 copy of a pawnshop license or a pawnshop employee license to a
29 15 person who applies and pays for the certificate or copy.
29 16 SUBCHAPTER VII
29 17 ENFORCEMENT – PENALTIES
29 18 Sec. 88. NEW SECTION. 552B.701 DIRECTOR'S ENFORCEMENT
29 19 POWERS.
29 20 For purposes of enforcing this chapter, the director may
29 21 exercise any power or any authority granted the director by
29 22 law.
29 23 Sec. 89. NEW SECTION. 552B.702 ORDER TO END VIOLATION –
29 24 INJUNCTION – DAMAGES.
29 25 1. If the director has reasonable cause to believe that a
29 26 person is violating this chapter, the director may enter an
29 27 administrative order requiring the person to stop or to
29 28 refrain from the violation. The order may be in addition to
29 29 and shall not prevent any other action by the director under
29 30 this chapter.
29 31 2. At the director's request, the attorney general shall
29 32 sue to enjoin a person from violating or continuing a
29 33 violation of this chapter or from acting to further a
29 34 violation. The court may enter an order or judgment awarding
29 35 a preliminary or permanent injunction. The court may issue an
30 1 additional order or judgment for actual damages suffered by a
30 2 person as a result of the violation.
30 3 Sec. 90. NEW SECTION. 552B.703 ADMINISTRATIVE PENALTY.
30 4 1. The director may assess an administrative penalty
30 5 against a person who violates this chapter or a rule adopted
30 6 under this chapter.
30 7 2. The director may assess the administrative penalty in
30 8 an amount equal to either of the following:
30 9 a. The average profit made by the pawnshop on a business
30 10 day in the six months before the date the violation occurred,
30 11 not to exceed one thousand dollars.
30 12 b. For a violation of section 552B.704, an amount not to
30 13 exceed one thousand dollars.
30 14 3. Each day a violation continues or occurs may be
30 15 considered a separate violation for purposes of this section.
30 16 The aggregate amount of penalties that may be assessed under
30 17 this section against a person during one calendar year shall
30 18 not exceed ten thousand dollars for violations which occurred
30 19 at the same business location.
30 20 4. In determining the amount of an administrative penalty,
30 21 the director shall consider all of the following:
30 22 a. The seriousness of the violation, including the nature,
30 23 circumstances, extent, and damages caused by the prohibited
30 24 act.
30 25 b. Any history of previous violations.
30 26 c. The amount necessary to deter future violations.
30 27 d. Efforts made to correct the violation.
30 28 e. Any other matter that justice may require.
30 29 5. If, after investigation of a possible violation and the
30 30 facts relating to that possible violation, the director
30 31 determines that a violation has occurred, the director shall
30 32 issue a preliminary report that states the facts on which the
30 33 conclusion is based, that an administrative penalty is to be
30 34 imposed, and the amount to be assessed.
30 35 6. Not later than the tenth day after the date on which
31 1 the director issues the preliminary report, the director shall
31 2 send to the person charged with the violation a copy of the
31 3 preliminary report and a statement that the person has a right
31 4 to a hearing on the alleged violation and the amount of the
31 5 penalty.
31 6 7. Not later than the twentieth day after the date on
31 7 which the preliminary report is sent, the person charged may
31 8 make a written request for a hearing or may pay to the
31 9 director the amount of the administrative penalty. A person
31 10 who does not request a hearing or pay the amount of the
31 11 penalty within the prescribed time waives the right to a
31 12 hearing.
31 13 8. If the person charged accepts the director's
31 14 preliminary report, the director shall issue an order
31 15 approving the preliminary report and ordering payment of any
31 16 recommended penalty.
31 17 9. If after a hearing it is determined that the person has
31 18 committed the alleged violation, the director shall give
31 19 written notice to the person of each finding established at
31 20 the hearing and the amount of the penalty and shall enter an
31 21 order requiring the person to pay the penalty.
31 22 10. Not later than the thirtieth day after the date on
31 23 which the notice is received, the person charged shall pay the
31 24 administrative penalty in full.
31 25 Sec. 91. NEW SECTION. 552B.704 ACTING WITHOUT A LICENSE;
31 26 OFFENSES.
31 27 1. A person who violates section 552B.201 is guilty of an
31 28 aggravated misdemeanor.
31 29 2. A person commits an offense if the person accepts
31 30 employment at a pawnshop writing pawn transactions and does
31 31 not comply with section 552B.301, subsection 1.
31 32 3. A person commits an offense if the person continues
31 33 employment at a pawnshop after the person's application for a
31 34 pawnshop employee license is denied or the person's pawnshop
31 35 employee license has expired or has been revoked, suspended,
32 1 or surrendered.
32 2 4. Except as provided by subsection 1, a person committing
32 3 an offense under this section is guilty of a serious
32 4 misdemeanor.
32 5 Sec. 92. NEW SECTION. 552B.705 WILLFUL VIOLATION OF
32 6 CHAPTER – OFFENSE.
32 7 Except as otherwise provided in section 552B.704, a person
32 8 is guilty of a simple misdemeanor if the person holds a
32 9 license under this chapter and willfully violates a
32 10 requirement of this chapter or willfully makes a false entry
32 11 in a record specifically required by this chapter.
32 12 Sec. 93. NEW SECTION. 552B.706 PENALTY FOR CERTAIN
32 13 VIOLATIONS.
32 14 1. Except as otherwise provided in subsection 2, a
32 15 pawnbroker who contracts for, charges, or collects a pawn
32 16 service charge that is greater than the amount authorized by
32 17 this chapter or otherwise violates this chapter is liable to
32 18 the person paying the service charge in an amount of damages
32 19 equal to twice the amount of the pawn service charge
32 20 contracted for and shall also return the goods pledged in
32 21 connection with the pawn transaction on request of the pledgor
32 22 and payment of the balance due.
32 23 2. A pawnbroker who contracts for, charges, or collects a
32 24 pawn service charge that is greater than twice the amount
32 25 authorized by this chapter is not entitled to collect any
32 26 amount on the pawn transaction and shall return the goods
32 27 pledged in connection with the pawn transaction on request of
32 28 the pledgor.
32 29 3. Subsection 1 or 2 does not apply to a violation that
32 30 results from an accidental and bona fide error which is
32 31 corrected upon discovery.
32 32 EXPLANATION
32 33 This bill creates new Code chapter 522B, which provides for
32 34 the licensure of pawnshops, the licensure of pawnshop
32 35 employees, the regulation of the operation of pawnshops, and
33 1 the inspection and examination of pawnshops. The bill
33 2 provides that the department of commerce shall regulate
33 3 pawnshops under new Code chapter 552B.
33 4 The bill provides that a person shall not engage in
33 5 business as a pawnbroker unless the person holds a pawnshop
33 6 license. The bill provides for eligibility requirements for a
33 7 pawnshop license, the verification of an applicant's net
33 8 assets, license applications, application fees and proof of
33 9 insurance, bonding requirements, application investigations,
33 10 public hearings, issuance of licenses, notices of the denial
33 11 of a license, annual license fees, temporary licenses,
33 12 contents and display of licenses, multiple places of business,
33 13 change of ownership, notices of relocation, net asset
33 14 requirements, appointment of an agent, and certain other
33 15 related matters.
33 16 The bill provides for the licensure of an individual
33 17 employed at a licensed pawnshop. The bill provides for
33 18 eligibility requirements, license applications and fees,
33 19 license approval and denial process, the term of licenses, and
33 20 annual license fees, and certain other related matters.
33 21 The bill provides for the regulation of the operation of
33 22 licensed pawnshops. The bill provides for regulations
33 23 relating to hours of operation, recordkeeping, notice of
33 24 conducting of other businesses, insurance and bonding
33 25 requirements, pawnshop security, pawn transactions, pawn
33 26 tickets, amounts financed by a pawn transaction, maturity
33 27 dates of pawn transactions, early redemption of a pawn
33 28 transaction, reduction of pawn service charges, presentation
33 29 of pawn tickets, lost or destroyed pawn tickets, duty of
33 30 reasonable care to protect pledged goods, return of pledged
33 31 goods, redemption by mail, lost or damaged goods, exemption
33 32 from criminal liability under certain circumstances,
33 33 unredeemed pledged goods and forfeiture, redemption or payment
33 34 by a pledgor, prohibition against requiring a pledgor's
33 35 personal liability, prohibition against a waiver of a
34 1 pledgor's rights, limitations of insurance charges,
34 2 identification of a pledgor or seller, property identification
34 3 tags, transactions with minors or persons under the influence
34 4 of alcohol or drugs, purchase of used personal property,
34 5 acceptance of building construction materials, display of
34 6 certain weapons, advertisements, transactions involving stolen
34 7 goods, hold periods, consumer information, displays and signs,
34 8 maintenance of premises, and certain related other matters.
34 9 The bill provides for the inspection and examination of
34 10 licensed pawnshops. The bill provides for examinations by the
34 11 director of the department of commerce, access to records of
34 12 the pawnshop, oaths, inspections by a peace officer,
34 13 consequences for the refusal to allow an examination or
34 14 inspection, confidentiality, fees, the verification of net
34 15 assets, and certain related other matters.
34 16 The bill provides for a pawnshop owner or pawnshop employee
34 17 license revocation, suspension, and surrender, notice of
34 18 revocation, the redemption of goods after license revocation
34 19 or suspension, hearings on the revocation or suspension of a
34 20 license, reinstatement of a license, certificates of standing,
34 21 and certain related other matters.
34 22 The bill provides for the enforcement of new Code chapter
34 23 552B and penalties for violations of new Code chapter 552B.
34 24 The bill provides for administrative penalties and criminal
34 25 penalties. The criminal penalties involve simple, serious,
34 26 and aggravated misdemeanors for various violations of new Code
34 27 chapter 552B.
34 28 LSB 2368HH 78
34 29 tm/sc/14
Text: HF00669 Text: HF00671 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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