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.