By Marchant H.B. No. 1511
76R3845 WP-D
A BILL TO BE ENTITLED
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.
1-9 Notwithstanding any other provision of this chapter, the
1-10 commissioner has the authority to [under this chapter may] regulate
1-11 only a business practice that requires a pawnshop license.
1-12 SECTION 2. Section 371.066(a), Finance Code, is amended to
1-13 read as follows:
1-14 (a) The commissioner may issue a temporary pawnshop license
1-15 on receipt of an application:
1-16 (1) to transfer a license from one person to another;
1-17 or
1-18 (2) for a license involving principals and owners that
1-19 are substantially identical to those of a pawnshop in operation at
1-20 the time of receipt of the application.
1-21 SECTION 3. Section 371.072, Finance Code, is amended by
1-22 amending Subsections (d) and (e) to read as follows:
1-23 (d) Subject to Subsection (b), a pawnbroker shall maintain
1-24 for each pawnshop net assets, as that term was defined at the time
2-1 the license was issued, that are used or readily available for use
2-2 in the business of the pawnshop of at least the amount required on:
2-3 (1) August 31, 1981, if the pawnbroker held a license
2-4 on that date; or
2-5 (2) June 20, 1987, if the pawnbroker held a license on
2-6 that date but did not hold a license on August 31, 1981.
2-7 (e) Subject to Subsection (d), net [Net] assets must be
2-8 represented by a capital investment unencumbered by a lien or other
2-9 encumbrance and subject to a claim by a general creditor.
2-10 SECTION 4. Section 371.154(b), Finance Code, is amended to
2-11 read as follows:
2-12 (b) A pawnbroker shall secure [maintain] a bond:
2-13 (1) in the amount, not to exceed $5,000, required by
2-14 the commissioner;
2-15 (2) in the form required by the commissioner; and
2-16 (3) conditioned on compliance with this chapter and
2-17 rules adopted under this chapter.
2-18 SECTION 5. Section 371.162, Finance Code, is amended to read
2-19 as follows:
2-20 Sec. 371.162. PRESENTATION OF TICKET; PRESUMPTION. Except
2-21 as provided by Section 371.163(a), a [A] person who presents proper
2-22 identification and a pawn ticket to the pawnbroker is presumed to
2-23 be entitled to redeem the pledged goods described by the pawn
2-24 ticket.
2-25 SECTION 6. Section 371.176, Finance Code, is amended to read
2-26 as follows:
2-27 Sec. 371.176. TRANSACTIONS WITH MINORS OR PERSONS UNDER THE
3-1 INFLUENCE OF ALCOHOL OR DRUGS PROHIBITED. A pawnbroker may not:
3-2 (1) accept a pledge [enter a pawn transaction with] or
3-3 purchase property from a person under 18 years of age; or
3-4 (2) transact business with a person believed to be
3-5 under the influence of alcohol or drugs.
3-6 SECTION 7. Section 371.258(b), Finance Code, is amended to
3-7 read as follows:
3-8 (b) The commissioner may reinstate a suspended pawnshop
3-9 license or pawnshop employee license or issue a new license to the
3-10 person whose license or licenses have been revoked if no fact or
3-11 condition exists that clearly would have justified refusal to
3-12 originally issue the license.
3-13 SECTION 8. Section 371.306(a), Finance Code, is amended to
3-14 read as follows:
3-15 (a) A pawnbroker who contracts for, charges, or collects a
3-16 pawn service charge that is greater than the amount authorized by
3-17 this chapter or otherwise violates this chapter shall:
3-18 (1) forfeit the right to collect [is liable for] twice
3-19 the amount of the pawn service charge contracted for; and
3-20 (2) [shall] return the goods pledged in connection
3-21 with the pawn transaction on request of the pledgor and payment of
3-22 the balance due.
3-23 SECTION 9. This Act takes effect September 1, 1999.
3-24 SECTION 10. The importance of this legislation and the
3-25 crowded condition of the calendars in both houses create an
3-26 emergency and an imperative public necessity that the
3-27 constitutional rule requiring bills to be read on three several
4-1 days in each house be suspended, and this rule is hereby suspended.