BILL ANALYSIS S.B. 132 By: West (Jones, Jesse) 05-12-95 Committee Report (Unamended) BACKGROUND The Texas Pawn Shop Act (TPA) provides for the regulation and licensing of pawnshops, as well as pawnshop employees. In 1991, the legislature amended the TPA to require new pawnshops in the 11 largest counties to demonstrate public need in order to obtain a license. This requirement was in direct response to citizen input and local government request to slow down and spread out the pawnshop growth in various communities. Currently, the Consumer Credit Commissioner is required to conduct a public hearing before issuing a pawnshop license. The TPA does not provide for public notification of pawnshop license applications. Currently, community residents do not have adequate opportunities to participate in the public hearing process. PURPOSE As proposed, S.B. 132 requires applicants for a pawnshop license to post notice of the intention to open a pawnshop to the general community before the license can be granted. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the Consumer Credit Commissioner in SECTION 3 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 5069-51.01 et seq., V.T.C.S. (Texas Pawnshop Act), by adding Sections 4A, 4B, and 4C, as follows: Sec. 4A. APPLICANT TO PUBLISH NOTICE. (a) Requires applicants for a pawnshop license for a location in a county with a population of 1.5 million or more to give notice of the application by publication at the applicant's own expense in two consecutive issues of a newspaper of general circulation published in the city, town, county or qualified newspaper in the closest neighboring county in which the place of business is to be located. (b) Requires the notice to be printed in 10-point bold face type and establishes the required contents of the notice. Sec. 4B. NOTICE BY SIGN. (a) Requires an applicant for a location in a county with a population of 1.5 million or more not previously licensed to post an outdoor sign, at the applicant's own expense, at the location stating that a pawnshop is intended to be operated on the premises and the name and business address of the applicant. (b) Requires the sign to be written in a manner prescribed by the Consumer Credit Commissioner (commissioner). (c) Prohibits an application from being denied for failure to post the notice if the commissioner determines the general public in the area is adequately aware of the nature of the application. Sec. 4C. NOTICE TO PUBLIC OFFICIALS. Requires the commissioner to give notice of all pawnshop applications for locations in counties with a population of 1.5 million or more to the county judge, the mayor of the municipality, state representative, and state senator. SECTION 2. Amends Section 5(a), Article 5069-51.05, V.T.C.S., to make conforming changes and adds (h) to require the Commissioner to consider the public safety, health and general welfare of the community that would be affected by the granting of a proposed pawnshop license. SECTION 3. Amends Section 17B, Article 5069-51.17B, V.T.C.S., by adding Subsection (s) to authorize the commissioner to adopt rules related to the notice by publication and by sign required under Sections 4A and 4B of this Act. SECTION 4. Effective date: September 1, 1995. SECTION 5. Emergency clause. SUMMARY OF COMMITTEE ACTION SB 132 was posted for public hearing on April 24, 1995. No action was taken on the bill by the committee. The committee considered SB 132 in a formal meeting on May 12, 1995. The bill was reported favorably without amendments, with the recommendation that it do pass and be printed, by the following record vote: 5 Ayes, 0 Nays, 1 PNV, 3 Absent.