HF 84 (LSB 1125YH (1) 85)

HOUSE FILE 84

BY  BRANDENBURG

A BILL FOR

An Act relating to and requiring the return of stolen merchandise in the possession of a pawn shop owner or operator, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  714.28  Pawn shops —— stolen merchandise —— return to rightful owner.
   1.  The governing body of a political subdivision which has adopted an ordinance regulating the operation of pawn shops shall include within the ordinance a provision requiring the owner or operator of a pawn shop to return merchandise held or offered for sale by the owner or operator which local, state, or federal law enforcement officials have determined to be stolen to the rightful owner of the merchandise. The merchandise shall be returned by the owner or operator of the pawn shop, or local law enforcement officials, to the owner of the merchandise at no charge or cost to the owner. The ordinance shall specify procedures and requirements regarding verifying the identity of the owner of the stolen merchandise, and that the merchandise was in fact reported as stolen pursuant to a police report, national electronic database, or other applicable means of notification. 
   2.  In addition to any other penalty imposed for violation of an ordinance described in subsection 1, if the political subdivision issues a license or permit for the operation of a pawn shop, the ordinance shall provide for the suspension, revocation, or nonrenewal of the license or permit in the event the ordinance is violated by an owner or operator. A suspension, revocation, or nonrenewal shall not take effect without notice and hearing.
   a.  Notice shall be delivered to the licensee or permittee by regular mail addressed to the licensee or permittee at the licensed premises a minimum of ten days prior to a date set for hearing before a magistrate or district associate judge. The notice shall inform the licensee or permittee of the time, date, and place of hearing and the purpose of the hearing, and shall set out briefly the reasons for the hearing.
   b.  A decision regarding whether to suspend or revoke a license or permit, or deny its renewal, shall be at the discretion of the magistrate or district associate judge, based upon the circumstances surrounding the violation and its severity.
   c.  A licensee or permittee whose license or permit or renewal has been revoked or denied because of a violation of this section shall not be eligible for another such license or permit for a period of one hundred eighty days after the revocation or denial.
EXPLANATION
   This bill requires the governing body of a political subdivision in which an ordinance has been adopted regulating the operation of pawn shops to include within the ordinance a provision requiring the owner or operator of a pawn shop to return merchandise held or offered for sale which local, state, or federal law enforcement officials have determined to be stolen. The bill requires the merchandise to be returned to the owner of the merchandise without charge or cost to the owner. The bill states that the ordinance shall specify procedures and requirements regarding verifying the identity of the owner of the stolen merchandise, and verifying that the merchandise was in fact reported as stolen pursuant to a police report, national electronic database, or other applicable means of notification.
   The bill provides that, in addition to any other penalty imposed for violation of such an ordinance, if the political subdivision issues a license or permit for the operation of a pawn shop, the ordinance shall provide for the suspension, revocation, or nonrenewal of the license or permit in the event of a violation.