1-1 AN ACT
1-2 relating to the operation and regulation of pawnshops.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 371.005, Finance Code, is amended to read
1-5 as follows:
1-6 Sec. 371.005. REGULATORY AUTHORITY. The legislature has
1-7 exclusive authority regarding the operation of pawnshops, except
1-8 for a matter delegated by this chapter to the commissioner. The
1-9 commissioner has the authority to [under this chapter may] regulate
1-10 only a business practice that requires a pawnshop license.
1-11 SECTION 2. Section 371.006(c), Finance Code, is amended to
1-12 read as follows:
1-13 (c) A copy of a rule shall be mailed to each license holder,
1-14 and the rule may not take effect before the 21st day after the
1-15 earliest date on which all of the copies have been mailed.
1-16 SECTION 3. Section 371.066(a), Finance Code, is amended to
1-17 read as follows:
1-18 (a) The commissioner may issue a temporary pawnshop license
1-19 on receipt of an application:
1-20 (1) to transfer a license from one person to another;
1-21 or
1-22 (2) for a license involving principals and owners that
1-23 are substantially identical to those of a pawnshop in operation at
1-24 the time of receipt of the application.
2-1 SECTION 4. Sections 371.072(d) and (e), Finance Code, are
2-2 amended to read as follows:
2-3 (d) Subject to Subsection (b), a pawnbroker shall maintain
2-4 for each pawnshop net assets, as that term was defined at the time
2-5 the license was issued, that are used or readily available for use
2-6 in the business of the pawnshop of at least the amount required on:
2-7 (1) August 31, 1981, if the pawnbroker held a license
2-8 on that date; or
2-9 (2) June 20, 1987, if the pawnbroker held a license on
2-10 that date but did not hold a license on August 31, 1981.
2-11 (e) Subject to Subsection (d), net [Net] assets must be
2-12 represented by a capital investment unencumbered by a lien or other
2-13 encumbrance and subject to a claim by a general creditor.
2-14 SECTION 5. Section 371.153(a), Finance Code, is amended to
2-15 read as follows:
2-16 (a) A pawnbroker shall notify the commissioner before the
2-17 pawnbroker [conducts or] allows another person to conduct at the
2-18 pawnshop a business other than the business of a pawnbroker or the
2-19 business of buying and selling goods.
2-20 SECTION 6. Section 371.154(b), Finance Code, is amended to
2-21 read as follows:
2-22 (b) A pawnbroker shall secure [maintain] a bond:
2-23 (1) in the amount, not to exceed $5,000, required by
2-24 the commissioner;
2-25 (2) in the form required by the commissioner; and
2-26 (3) conditioned on compliance with this chapter and
2-27 rules adopted under this chapter.
3-1 SECTION 7. Section 371.155, Finance Code, is amended to read
3-2 as follows:
3-3 Sec. 371.155. PAWNSHOP SECURITY. [(a)] A pawnshop shall
3-4 have:
3-5 (1) one or more alarm systems sufficient to detect and
3-6 signal unauthorized entry or the presence of an unauthorized person
3-7 to provide for the security of pledged goods; and
3-8 (2) a safe [of a type approved by the pawnbroker's
3-9 insurance underwriter] to provide for the security of pledged
3-10 jewelry.
3-11 [(b) The commissioner may adopt rules related to the keeping
3-12 of firearms used solely for the security of the pawnshop by the
3-13 pawnbroker.]
3-14 SECTION 8. Section 371.162, Finance Code, is amended to read
3-15 as follows:
3-16 Sec. 371.162. PRESENTATION OF TICKET; PRESUMPTION. Except
3-17 as provided by Section 371.163(a), a [A] person who presents
3-18 proper identification and a pawn ticket to the pawnbroker is
3-19 presumed to be entitled to redeem the pledged goods described by
3-20 the pawn ticket.
3-21 SECTION 9. Section 371.163(c), Finance Code, is amended to
3-22 read as follows:
3-23 (c) The pawnbroker shall record on the written statement:
3-24 (1) [the identifying information required by Section
3-25 371.157(2);]
3-26 [(2)] the date the statement is made; and
3-27 (2) [(3)] the number of the pawn ticket lost,
4-1 destroyed, or stolen.
4-2 SECTION 10. Section 371.175(a), Finance Code, is amended to
4-3 read as follows:
4-4 (a) A pawnshop shall identify by a tag or similar means each
4-5 item of goods located in the pawnshop that:
4-6 (1) has a retail or sale value of more than $25 [$10];
4-7 and
4-8 (2) can be tagged or similarly identified.
4-9 SECTION 11. Section 371.176, Finance Code, is amended to
4-10 read as follows:
4-11 Sec. 371.176. TRANSACTIONS WITH MINORS OR PERSONS UNDER THE
4-12 INFLUENCE OF ALCOHOL OR DRUGS PROHIBITED. A pawnbroker may not:
4-13 (1) accept a pledge [enter a pawn transaction with] or
4-14 purchase property from a person under 18 years of age; or
4-15 (2) transact business with a person believed to be
4-16 under the influence of alcohol or drugs.
4-17 SECTION 12. Section 371.182, Finance Code, is amended to
4-18 read as follows:
4-19 Sec. 371.182. HOLD PERIOD. The commissioner may [shall]
4-20 designate a reasonable hold period during which a pawnbroker may
4-21 not sell or otherwise dispose of an item of goods acquired and
4-22 offered for sale or other disposition by the pawnbroker.
4-23 SECTION 13. Section 371.258(b), Finance Code, is amended to
4-24 read as follows:
4-25 (b) The commissioner may reinstate a suspended pawnshop
4-26 license or pawnshop employee license or issue a new license to the
4-27 person whose license or licenses have been revoked if no fact or
5-1 condition exists that clearly would have justified refusal to issue
5-2 the license originally.
5-3 SECTION 14. Sections 371.184 and 371.185, Finance Code, are
5-4 repealed.
5-5 SECTION 15. (a) This Act takes effect September 1, 1999.
5-6 (b) Any rules adopted by the commissioner relating to the
5-7 use of an outdoor display or sign at a pawnshop or to the
5-8 maintenance of pawnshop premises under Section 371.184 or 371.185,
5-9 Finance Code, repealed by this Act, are void.
5-10 SECTION 16. The importance of this legislation and the
5-11 crowded condition of the calendars in both houses create an
5-12 emergency and an imperative public necessity that the
5-13 constitutional rule requiring bills to be read on three several
5-14 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1511 was passed by the House on April
21, 1999, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1511 on May 26, 1999, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1511 was passed by the Senate, with
amendments, on May 24, 1999, by the following vote: Yeas 30, Nays
0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor