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.