By Goolsby, Keel H.B. No. 2338
Substitute the following for H.B. No. 2338:
By Marchant C.S.H.B. No. 2338
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of certain activities by a pawnbroker.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2, Texas Pawnshop Act (Article
1-5 5069-51.02, Vernon's Texas Civil Statutes), is amended by adding
1-6 Subsections (i)-(m) to read as follows:
1-7 (i) "Appropriate law enforcement official"--means the
1-8 sheriff of the county in which a pawnshop is located or, if a
1-9 pawnshop is located in a municipality, the police chief of the
1-10 municipality in which the pawnshop is located or any law
1-11 enforcement officer working for the agency headed by the sheriff or
1-12 police chief who is designated by the sheriff or police chief as
1-13 the appropriate law enforcement official for that agency.
1-14 (j) "Claimant"--means a person who claims that the
1-15 person's property was misappropriated and delivered into the
1-16 possession of a pawnbroker.
1-17 (k) "Conveying customer"--means a person who delivers
1-18 property into the custody of a pawnbroker by pawn, sale, or trade.
1-19 (l) "Misappropriated"--means stolen, embezzled,
1-20 converted, or otherwise wrongfully appropriated against the will of
1-21 the rightful owner.
1-22 (m) "Pledgor"--means an individual who pledges goods
1-23 to a pawnbroker in connection with a pawn transaction.
1-24 SECTION 2. The Texas Pawnshop Act (Article 5069-51.01 et
2-1 seq., Vernon's Texas Civil Statutes) is amended by adding Section
2-2 17A to read as follows:
2-3 Sec. 17A. PROVIDING DATA TO LAW ENFORCEMENT OFFICIALS. (a)
2-4 In this section, "reportable data" means the information required
2-5 to be recorded by pawnbrokers for pawn transactions under Sections
2-6 10(a), (b), (c), (d), and (i) of this Act and the information
2-7 required to be recorded by pawnbrokers for purchase transactions
2-8 under Section 16(a)(9) of this Act.
2-9 (b) This section applies only to a pawnbroker who, at the
2-10 time of receipt of notice from an appropriate law enforcement
2-11 official under Subsection (c) of this section, possesses computer
2-12 hardware and software necessary to comply with the requirements for
2-13 providing reportable data under this section and, for the most
2-14 recent preceding period of January 1 through June 30 or July 1
2-15 through December 31, conducted at least 1,800 pawn transactions. A
2-16 pawnbroker who becomes eligible for application of this section
2-17 remains eligible regardless of the number of pawn transactions
2-18 conducted in subsequent periods.
2-19 (c) An appropriate law enforcement official in a county with
2-20 a population of 500,000 or more shall adopt a policy requiring each
2-21 eligible pawnbroker operating in the county or the municipality, as
2-22 appropriate, to provide reportable data to the official in
2-23 accordance with this section. The official shall take appropriate
2-24 action to facilitate the receipt of that data. An appropriate law
2-25 enforcement official in a county with a population of less than
2-26 500,000 may adopt a policy under this subsection.
2-27 (d) Not later than the 60th day after the date on which a
3-1 pawnbroker receives written notice from an appropriate law
3-2 enforcement official that the official has adopted a policy under
3-3 Subsection (c) of this section, the pawnbroker shall notify the
3-4 official in writing as to whether or not the pawnbroker possesses
3-5 computer hardware and software necessary to comply with the
3-6 requirements of this section for providing reportable data.
3-7 (e) If the pawnbroker possesses the necessary computer
3-8 hardware and software, the pawnbroker, before the 60th day after
3-9 the date of the receipt of the notice from the appropriate law
3-10 enforcement official, shall make available all reportable data to
3-11 the official in ASCII text in a form normally generated by the
3-12 pawnbroker's computer system. The data shall be reported on
3-13 reusable media provided by the law enforcement official, such as a
3-14 secure telephone modem transmission or hosted bulletin board
3-15 system, that is mutually acceptable to the reporting pawnbroker and
3-16 the law enforcement official. Diskettes shall be furnished to the
3-17 pawnbroker by the law enforcement official. The commissioner may
3-18 not require a specific format for electronic data reporting before
3-19 January 1, 2002. A pawnbroker who modifies or updates the
3-20 pawnbroker's software shall attempt to obtain the designated and
3-21 accepted format design. A pawnbroker is not responsible for any
3-22 delay that results from the law enforcement official's delay in
3-23 facilitating the receipt of the data.
3-24 (f) The medium in which a pawnbroker provides data to the
3-25 appropriate law enforcement official must contain the reportable
3-26 data for all transactions during a particular business period of
3-27 not less than one business day and must be made available to be
4-1 picked up by or be electronically transferred to the law
4-2 enforcement official by the end of the second business day after
4-3 the business period to which the data relates.
4-4 (g) During a test period beginning on the date a pawnbroker
4-5 begins to provide reportable data under this section, the
4-6 pawnbroker shall also make available copies of each of the
4-7 underlying pawn or purchase transaction documents to enable the
4-8 appropriate law enforcement official to ensure the proper operation
4-9 of the system for providing the data. The length of the test
4-10 period shall be agreed on by the law enforcement official and the
4-11 pawnbroker and may not exceed 90 days.
4-12 (h) A law enforcement official, by written notice, may
4-13 require reporting pawnbrokers in the jurisdiction of the official
4-14 to provide reportable data to an alternative law enforcement agency
4-15 in lieu of providing reportable data to the law enforcement
4-16 official.
4-17 (i) A pawnbroker is responsible for training the
4-18 pawnbroker's employees in correct data reporting and shall make
4-19 efforts to provide complete and accurate data to the appropriate
4-20 law enforcement official. If a pawnbroker or the appropriate law
4-21 enforcement official discovers an error in the provision of
4-22 reportable data by that pawnbroker, the pawnbroker shall be allowed
4-23 a period of at least 30 days after the date of receipt of notice
4-24 from the law enforcement official to correct the error. If a
4-25 pawnbroker experiences a computer malfunction, the pawnbroker shall
4-26 be allowed a period of at least 30 days in which to correct the
4-27 malfunction. A pawnbroker who makes a reasonable effort to make
5-1 the appropriate system modifications during the periods prescribed
5-2 by this subsection is not in violation of this section during those
5-3 periods. During those periods the pawnbroker and the law
5-4 enforcement official shall arrange a mutually acceptable
5-5 alternative method by which the pawnbroker provides the reportable
5-6 data.
5-7 (j) All reportable data transmitted to an appropriate law
5-8 enforcement official under this section is confidential and may be
5-9 used by that official only for official law enforcement purposes
5-10 relative to official investigations and the enforcement of this
5-11 Act.
5-12 SECTION 3. The Texas Pawnshop Act (Article 5069-51.01 et
5-13 seq., Vernon's Texas Civil Statutes) is amended by adding Section
5-14 17C to read as follows:
5-15 Sec. 17C. POLICE HOLDS. (a) If an appropriate law
5-16 enforcement official has reasonable suspicion to believe that
5-17 property in the possession of a pawnbroker is misappropriated, the
5-18 official may place a written hold order on the property as provided
5-19 by this section.
5-20 (b) The official may place a hold order verbally, but if the
5-21 pawnbroker does not receive a written order within 10 days after
5-22 the date of the verbal order, the verbal hold order automatically
5-23 expires. The term of a written hold order may not exceed 60 days
5-24 from the earlier of the date of the verbal hold order or the date
5-25 of receipt by the pawnbroker of the written hold order. If there
5-26 is an unexpected delay in the investigation relating to the
5-27 property, the law enforcement official may extend the term of the
6-1 hold order for up to an additional 30 days by notifying the
6-2 pawnbroker in writing. On expiration of the holding period, the
6-3 pawnbroker shall notify the law enforcement official by certified
6-4 mail, return receipt requested, that the hold order is no longer in
6-5 effect. If, on the 10th day after the date of delivery of that
6-6 written notice by the pawnbroker, the pawnbroker has not received
6-7 an order to the contrary from an appropriate court or magistrate,
6-8 the hold order shall be released.
6-9 (c) A hold order must specify:
6-10 (1) the name and address of the pawnbroker;
6-11 (2) the name, title, and identification number of the
6-12 representative of the law enforcement official placing the hold
6-13 order;
6-14 (3) a complete description of the property to be held,
6-15 including model number and serial number, if applicable, and the
6-16 number assigned to the claim regarding the property;
6-17 (4) the name of the person reporting the property to
6-18 be misappropriated;
6-19 (5) the expiration date of the holding period; and
6-20 (6) the name of the law enforcement agency that
6-21 prepared the offense report on the claim regarding the property and
6-22 the number of the offense report.
6-23 (d) The pawnbroker shall sign and date a copy of the hold
6-24 order as evidence of receipt of the hold order and the beginning of
6-25 the holding period. A written hold order may be transmitted to the
6-26 pawnbroker by facsimile machine. The pawnbroker shall sign and
6-27 date a hold order sent by facsimile machine and may return by
7-1 facsimile machine the copy to the appropriate law enforcement
7-2 official.
7-3 (e) Except as provided by this subsection, the pawnbroker
7-4 may not release or dispose of property subject to a hold order
7-5 except under a court order, a written release from or seizure by
7-6 the appropriate law enforcement official, or the expiration of the
7-7 hold period. A pawnbroker shall release property to the custody of
7-8 the law enforcement official on the official's request for use in a
7-9 criminal investigation if the official has furnished the pawnbroker
7-10 with a written receipt for the property. The release of the
7-11 property to the custody of the official is not considered to be a
7-12 waiver or release of the pawnbroker's rights or interest in the
7-13 property. On the earlier of the completion of the criminal
7-14 investigation or the expiration of the hold period, the property
7-15 shall be returned to the pawnbroker who released it unless a court
7-16 order provides for other disposition. If other disposition is
7-17 ordered, the court may order the conveying customer to pay
7-18 restitution to the pawnbroker in the amount received by the
7-19 conveying customer for the property, plus accrued pawn service
7-20 charges, in the case of pawn transactions, and reasonable
7-21 attorney's fees and costs.
7-22 SECTION 4. Section 17B(m), Texas Pawnshop Act (Article
7-23 5069-51.17B, Vernon's Texas Civil Statutes), is amended to read as
7-24 follows:
7-25 (m) A pawnbroker [The commissioner] shall [designate a
7-26 reasonable] hold for not less than 7 days [period before a sale or
7-27 other disposition of] an item of tangible personal property
8-1 purchased or otherwise acquired from the general public before the
8-2 property may be modified, changed, sold, or disposed of in any
8-3 manner [by a pawnbroker and offered for sale or other disposition
8-4 by the pawnbroker]. The commissioner may provide for a shorter
8-5 hold period on written application by a pawnbroker. A reduction in
8-6 the hold period may be granted only if the pawnbroker and the
8-7 appropriate law enforcement agency have implemented a procedure for
8-8 transmitting reportable electronic data under Section 17A of this
8-9 Act. An application for a shorter hold period must be approved by
8-10 the appropriate law enforcement official before the application is
8-11 submitted to the commissioner by the pawnbroker.
8-12 SECTION 5. This Act takes effect September 1, 1997.
8-13 SECTION 6. The importance of this legislation and the
8-14 crowded condition of the calendars in both houses create an
8-15 emergency and an imperative public necessity that the
8-16 constitutional rule requiring bills to be read on three several
8-17 days in each house be suspended, and this rule is hereby suspended.