BWM C.S.H.B. 1833 75(R)BILL ANALYSIS


FINANCIAL INSTITUTIONS
C.S.H.B. 1833
By: Jones, Jesse
4-19-97
Committee Report (Substituted)



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 citizens 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

To require notice of applications to open a pawnshop be given to certain
elected officials before the license can be granted. 

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 et seq., Vernon's Texas Civil
Statutes (The Texas Pawnshop Act), by adding Sections 4A. 

 Section 4A:  NOTICE OF 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 state representative and the
state senator. 

SECTION 2.  Effective Date and Applicability.

SECTION 3.  Emergency Clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The Committee substitute to HB 1833 removes the requirement to publish
notice of application of a pawnshop license in the newspaper where the
business is to be located.  The Substitute also removes the requirement on
the commissioner to notify the county judge and the mayor where the
business is to be located.  Finally, the Substitute removes the
requirement of a public hearing to any person where the business is to be
located, and the requirement of the commissioner to consider the public
safety, health and welfare of the community that would be affected by the
granting of the license.