BILL ANALYSIS H.B. 2544 By: Jones, Jesse April 25, 1995 Committee Report (Amended) BACKGROUND In some urban areas, residents have raised concerns regarding the existence of numerous pawnshops located within or near their neighborhoods. Presently, homeowners are not given notice of a pending application for establishing a pawnshop. Upon receiving an application for a license for a pawnshop, the Texas Consumer Credit Commission notify the Department of Public Safety and all local law enforcement agencies in the county in which the business is to be located. The Commission is required by law to allow those law enforcement agencies a reasonable time to respond with information concerning the individuals submitting the application. In addition, the Commission is required to give notice of the application to each pawnshop licensee in the county in which the pending pawnshop would be located to allow the existing pawnshop an opportunity to present evidence for or against the application. Homeowners should be provided a notice of a pending application for establishing a pawnshop within or near their neighborhood. PURPOSE House Bill 2544 would require the applicant of a pawnshop license to provide property owners within 500 feet of the site for the pawnshop a written notice of the application. The notice would provide the property owner with the names of the applicant(s), location of the pawnshop and a statement that the property owner may request the Consumer Credit Commissioner to hold a public hearing on the application. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1: Amends Article 5069-51.01 of the Civil Statutes by adding Section 3B (NOTICE OF APPLICATION) as follows: (a) requires the applicant for a pawnshop license to mail notice of the application to each owner of property located within 500 feet of the boundary of the property on which the pawnshop is to be located. Under the section, the property on which a pawnshop is to be located includes the property occupied by any other business in the same shopping center with the pawnshop and any parking lot of the pawnshop or shopping center. (b) states that a notice includes: (1) the names and addresses of the persons that are required to be listed in the license application under Subsection (a) of Section 4 of this Act; (2) the street address of the proposed location of the pawnshop; and (3) that any person may request the Consumer Credit Commissioner to hold a public hearing on the application. (c) prohibits the Commissioner from accepting an application that is not accompanied by an affidavit stating that a notice according to Subsection (a) and (b) was mailed. SECTION 2. Amends the Texas Pawnshop Act, Article 5069-51.05(a) et seq., Vernon's Texas Civil Statutes to set forth the procedures for the Commissioner regarding the notification of law enforcement officials and the Department of Public Safety of a pawnshop license application and allows any person within 500 feet of the proposed pawnshop to speak for or against the application at a public hearing to be held by the Commissioner. SECTION 3. Effective date. SECTION 4: Emergency Clause. EXPLANATION OF AMENDMENTS The amendment makes it possible for a person who receives notice of a pawnshop business application within 500 feet of their property boundary to appear, present evidence, and be heard for or against the application at a public hearing held by the Commissioner. And, the amendment sets forth procedures to be followed by the Commissioner regarding the notification of the Department of Public Safety and law enforcement officials. SUMMARY OF COMMITTEE ACTION The committee considered HB 2544 in a public hearing on April 10, 1995. The following person testified neutrally on this bill: Leslie Pettijohn. The committee considered an amendment to the bill which was adopted without objection. The bill was reported favorably as amended, with the recommendation that it do pass and be printed, by a record vote of: 7 Ayes, 1 Nay, 0 PNV, 1 Absent.