By Goolsby H.B. No. 2338
75R8389 JMM-F
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 person's
1-15 property was misappropriated and delivered into the possession of a
1-16 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, converted,
1-20 or otherwise wrongfully appropriated against the will of the
1-21 rightful owner.
1-22 (m) "Pledgor"--means an individual who pledges goods to a
1-23 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 1,500 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), the pawnbroker shall notify the official in writing
3-4 as to whether or not the pawnbroker possesses computer hardware and
3-5 software necessary to comply with the requirements of this section
3-6 for providing reportable data.
3-7 (e) If the pawnbroker possesses the necessary computer
3-8 hardware and software, the pawnbroker, before the end of the
3-9 six-month period after the date of the receipt of the notice from
3-10 the appropriate law enforcement official, shall make available all
3-11 reportable data to the official in a form prescribed by the
3-12 commissioner or as agreed by the appropriate law enforcement
3-13 official and the pawnbroker. The data shall be reported on
3-14 reusable media provided by the law enforcement official, such as a
3-15 diskette, secure telephone modem transmission, or hosted bulletin
3-16 board system, that is mutually acceptable to the reporting
3-17 pawnbroker and the law enforcement official and furnished by the
3-18 official. A pawnbroker who does not possess the necessary computer
3-19 hardware and software shall comply with the requirements of this
3-20 section before the first anniversary of the date the pawnbroker
3-21 obtains the necessary computer hardware and software. A pawnbroker
3-22 is not responsible for any delay that results from the law
3-23 enforcement official's delay in facilitating the receipt of the
3-24 data.
3-25 (f) The medium in which a pawnbroker provides data to the
3-26 appropriate law enforcement official must contain the reportable
3-27 data for all transactions during a particular business period of
4-1 not less than one business day and must be made available to be
4-2 picked up by the law enforcement official by the end of the second
4-3 business day after 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 entity in lieu of
4-15 providing reportable data to the law enforcement official.
4-16 (i) A pawnbroker is responsible for training the
4-17 pawnbroker's employees in correct data reporting and shall make
4-18 efforts to provide complete and accurate data to the appropriate
4-19 law enforcement official. If a pawnbroker or the appropriate law
4-20 enforcement official discovers an error in the provision of
4-21 reportable data by that pawnbroker, the pawnbroker shall be allowed
4-22 a period of at least 30 days after the date of receipt of notice
4-23 from the law enforcement official to correct the error. If a
4-24 pawnbroker experiences a computer malfunction, the pawnbroker shall
4-25 be allowed a period of at least 30 days in which to correct the
4-26 malfunction. A pawnbroker who makes a bona fide effort to make the
4-27 appropriate system modifications during the periods prescribed by
5-1 this subsection is not in violation of this section during those
5-2 periods. During those periods the pawnbroker and the law
5-3 enforcement official shall arrange a mutually acceptable
5-4 alternative method by which the pawnbroker provides the reportable
5-5 data.
5-6 (j) All reportable data transmitted to an appropriate law
5-7 enforcement official under this section is confidential and may be
5-8 used by that official only for official law enforcement purposes
5-9 relative to the investigation or enforcement of this Act.
5-10 SECTION 3. The Texas Pawnshop Act (Article 5069-51.01 et
5-11 seq., Vernon's Texas Civil Statutes) is amended by adding Section
5-12 17C to read as follows:
5-13 Sec. 17C. POLICE HOLDS. (a) If an appropriate law
5-14 enforcement official has reasonable suspicion to believe that
5-15 property in the possession of a pawnbroker is misappropriated, the
5-16 official may place a written hold order on the property as provided
5-17 by this section.
5-18 (b) The official may place a hold order verbally, but if the
5-19 pawnbroker does not receive a written order within 10 days after
5-20 the date of the verbal order, the verbal hold order automatically
5-21 expires. The term of a written hold order may not exceed 60 days
5-22 from the earlier of the date of the verbal hold order or the date
5-23 of receipt by the pawnbroker of the written hold order. If there
5-24 is an unexpected delay in the investigation relating to the
5-25 property, the law enforcement official may extend the term of the
5-26 hold order for up to an additional 30 days by notifying the
5-27 pawnbroker in writing. On expiration of the holding period, the
6-1 pawnbroker shall notify the law enforcement official by certified
6-2 mail, return receipt requested, that the hold order is no longer in
6-3 effect. If, on the 10th day after the date of delivery of that
6-4 written notice by the pawnbroker, the pawnbroker has not received
6-5 an order to the contrary from an appropriate court or magistrate,
6-6 the hold order shall be released.
6-7 (c) A hold order must specify:
6-8 (1) the name and address of the pawnbroker;
6-9 (2) the name, title, and identification number of the
6-10 representative of the law enforcement official placing the hold
6-11 order;
6-12 (3) a complete description of the property to be held,
6-13 including model number and serial number, if applicable, and the
6-14 number assigned to the claim regarding the property;
6-15 (4) the name of the person reporting the property to
6-16 be misappropriated;
6-17 (5) the expiration date of the holding period; and
6-18 (6) the name of the law enforcement agency that
6-19 prepared the offense report on the claim regarding the property and
6-20 the number of the offense report.
6-21 (d) The pawnbroker shall sign and date a copy of the hold
6-22 order as evidence of receipt of the hold order and the beginning of
6-23 the holding period. A written hold order may be transmitted to the
6-24 pawnbroker by facsimile machine. The pawnbroker shall sign and
6-25 date a hold order sent by facsimile machine and return the copy to
6-26 the appropriate law enforcement official.
6-27 (e) Except as provided by this subsection, the pawnbroker
7-1 may not release or dispose of property subject to a hold order
7-2 except under a court order, a written release from or seizure by
7-3 the appropriate law enforcement official, or the expiration of the
7-4 hold period. A pawnbroker shall release property to the custody of
7-5 the law enforcement official on the official's request for use in a
7-6 criminal investigation if the official has furnished the pawnbroker
7-7 with a written receipt for the property. The release of the
7-8 property to the custody of the official is not considered to be a
7-9 waiver or release of the pawnbroker's rights or interest in the
7-10 property. On the earlier of the completion of the criminal
7-11 investigation or the expiration of the hold period, the property
7-12 shall be returned to the pawnbroker who released it unless a court
7-13 order provides for other disposition. If other disposition is
7-14 ordered, the court may order the conveying customer to pay
7-15 restitution to the pawnbroker in the amount received by the
7-16 conveying customer for the property, plus accrued pawn service
7-17 charges, in the case of pawn transactions, and reasonable
7-18 attorney's fees and costs.
7-19 SECTION 4. Section 17B(m), Texas Pawnshop Act (Article
7-20 5069-51.17B, Vernon's Texas Civil Statutes), is amended to read as
7-21 follows:
7-22 (m) A pawnbroker [The commissioner] shall [designate a
7-23 reasonable] hold for not less than 20 days [period before a sale or
7-24 other disposition of] an item of tangible personal property
7-25 purchased or otherwise acquired from the general public before the
7-26 property may be modified, changed, sold, or disposed of in any
7-27 manner [by a pawnbroker and offered for sale or other disposition
8-1 by the pawnbroker]. The commissioner may provide for a shorter
8-2 hold period on written application by a pawnbroker. A reduction in
8-3 the hold period may be granted only if the pawnbroker and the
8-4 appropriate law enforcement agency have implemented a procedure for
8-5 transmitting reportable electronic data under Section 17A of this
8-6 Act. An application for a shorter hold period must be approved by
8-7 the appropriate law enforcement official before the application is
8-8 submitted to the commissioner by the pawnbroker.
8-9 SECTION 5. This Act takes effect September 1, 1997.
8-10 SECTION 6. The importance of this legislation and the
8-11 crowded condition of the calendars in both houses create an
8-12 emergency and an imperative public necessity that the
8-13 constitutional rule requiring bills to be read on three several
8-14 days in each house be suspended, and this rule is hereby suspended.