1-1 By: Marchant (Senate Sponsor - Armbrister) H.B. No. 1511
1-2 (In the Senate - Received from the House April 22, 1999;
1-3 April 26, 1999, read first time and referred to Committee on
1-4 Economic Development; May 14, 1999, reported adversely, with
1-5 favorable Committee Substitute by the following vote: Yeas 4, Nays
1-6 0; May 14, 1999, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 1511 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the operation and regulation of pawnshops.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 371.005, Finance Code, is amended to read
1-13 as follows:
1-14 Sec. 371.005. REGULATORY AUTHORITY. The legislature has
1-15 exclusive authority regarding the operation of pawnshops, except
1-16 for a matter delegated by this chapter to the commissioner. The
1-17 commissioner has the authority to [under this chapter may] regulate
1-18 only a business practice that requires a pawnshop license.
1-19 SECTION 2. Section 371.006(c), Finance Code, is amended to
1-20 read as follows:
1-21 (c) A copy of a rule shall be mailed to each license holder,
1-22 and the rule may not take effect before the 21st day after the
1-23 earliest date on which all of the copies have been mailed.
1-24 SECTION 3. Section 371.066(a), Finance Code, is amended to
1-25 read as follows:
1-26 (a) The commissioner may issue a temporary pawnshop license
1-27 on receipt of an application:
1-28 (1) to transfer a license from one person to another;
1-29 or
1-30 (2) for a license involving principals and owners that
1-31 are substantially identical to those of a pawnshop in operation at
1-32 the time of receipt of the application.
1-33 SECTION 4. Sections 371.072(d) and (e), Finance Code, are
1-34 amended to read as follows:
1-35 (d) Subject to Subsection (b), a pawnbroker shall maintain
1-36 for each pawnshop net assets, as that term was defined at the time
1-37 the license was issued, that are used or readily available for use
1-38 in the business of the pawnshop of at least the amount required on:
1-39 (1) August 31, 1981, if the pawnbroker held a license
1-40 on that date; or
1-41 (2) June 20, 1987, if the pawnbroker held a license on
1-42 that date but did not hold a license on August 31, 1981.
1-43 (e) Subject to Subsection (d), net [Net] assets must be
1-44 represented by a capital investment unencumbered by a lien or other
1-45 encumbrance and subject to a claim by a general creditor.
1-46 SECTION 5. Section 371.153(a), Finance Code, is amended to
1-47 read as follows:
1-48 (a) A pawnbroker shall notify the commissioner before the
1-49 pawnbroker [conducts or] allows another person to conduct at the
1-50 pawnshop a business other than the business of a pawnbroker or the
1-51 business of buying and selling goods.
1-52 SECTION 6. Section 371.154(b), Finance Code, is amended to
1-53 read as follows:
1-54 (b) A pawnbroker shall secure [maintain] a bond:
1-55 (1) in the amount, not to exceed $5,000, required by
1-56 the commissioner;
1-57 (2) in the form required by the commissioner; and
1-58 (3) conditioned on compliance with this chapter and
1-59 rules adopted under this chapter.
1-60 SECTION 7. Section 371.155, Finance Code, is amended to read
1-61 as follows:
1-62 Sec. 371.155. PAWNSHOP SECURITY. [(a)] A pawnshop shall
1-63 have:
1-64 (1) one or more alarm systems sufficient to detect and
2-1 signal unauthorized entry or the presence of an unauthorized person
2-2 to provide for the security of pledged goods; and
2-3 (2) a safe [of a type approved by the pawnbroker's
2-4 insurance underwriter] to provide for the security of pledged
2-5 jewelry.
2-6 [(b) The commissioner may adopt rules related to the keeping
2-7 of firearms used solely for the security of the pawnshop by the
2-8 pawnbroker.]
2-9 SECTION 8. Section 371.162, Finance Code, is amended to read
2-10 as follows:
2-11 Sec. 371.162. PRESENTATION OF TICKET; PRESUMPTION. Except
2-12 as provided by Section 371.163(a), a [A] person who presents proper
2-13 identification and a pawn ticket to the pawnbroker is presumed to
2-14 be entitled to redeem the pledged goods described by the pawn
2-15 ticket.
2-16 SECTION 9. Section 371.163(c), Finance Code, is amended to
2-17 read as follows:
2-18 (c) The pawnbroker shall record on the written statement:
2-19 (1) [the identifying information required by Section
2-20 371.157(2);]
2-21 [(2)] the date the statement is made; and
2-22 (2) [(3)] the number of the pawn ticket lost,
2-23 destroyed, or stolen.
2-24 SECTION 10. Section 371.175(a), Finance Code, is amended to
2-25 read as follows:
2-26 (a) A pawnshop shall identify by a tag or similar means each
2-27 item of goods located in the pawnshop that:
2-28 (1) has a retail or sale value of more than $25 [$10];
2-29 and
2-30 (2) can be tagged or similarly identified.
2-31 SECTION 11. Section 371.176, Finance Code, is amended to
2-32 read as follows:
2-33 Sec. 371.176. TRANSACTIONS WITH MINORS OR PERSONS UNDER THE
2-34 INFLUENCE OF ALCOHOL OR DRUGS PROHIBITED. A pawnbroker may not:
2-35 (1) accept a pledge [enter a pawn transaction with] or
2-36 purchase property from a person under 18 years of age; or
2-37 (2) transact business with a person believed to be
2-38 under the influence of alcohol or drugs.
2-39 SECTION 12. Section 371.182, Finance Code, is amended to
2-40 read as follows:
2-41 Sec. 371.182. HOLD PERIOD. The commissioner may [shall]
2-42 designate a reasonable hold period during which a pawnbroker may
2-43 not sell or otherwise dispose of an item of goods acquired and
2-44 offered for sale or other disposition by the pawnbroker.
2-45 SECTION 13. Section 371.258(b), Finance Code, is amended to
2-46 read as follows:
2-47 (b) The commissioner may reinstate a suspended pawnshop
2-48 license or pawnshop employee license or issue a new license to the
2-49 person whose license or licenses have been revoked if no fact or
2-50 condition exists that clearly would have justified refusal to issue
2-51 the license originally.
2-52 SECTION 14. Sections 371.184 and 371.185, Finance Code, are
2-53 repealed.
2-54 SECTION 15. (a) This Act takes effect September 1, 1999.
2-55 (b) Any rules adopted by the commissioner relating to the
2-56 use of an outdoor display or sign at a pawnshop or to the
2-57 maintenance of pawnshop premises under Section 371.184 or 371.185,
2-58 Finance Code, repealed by this Act, are void.
2-59 SECTION 16. The importance of this legislation and the
2-60 crowded condition of the calendars in both houses create an
2-61 emergency and an imperative public necessity that the
2-62 constitutional rule requiring bills to be read on three several
2-63 days in each house be suspended, and this rule is hereby suspended.
2-64 * * * * *