By Keel H.B. No. 2676
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to law enforcement procedures for electronically obtaining
1-3 data from pawn shops, recording thumbprints on transaction records,
1-4 and holding hearings for recovery of stolen property.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The Texas Pawnshop Act (Chapter 371, of the Texas
1-7 Finance Code), Section 371.003, is amended to read as follows:
1-8 Sec. 371.003. Definitions. In this chapter:
1-9 (1) "Applicable liabilities" include trade or other
1-10 accounts payable; accrued sales, income, or other taxes; accrued
1-11 expenses; and notes or other payables that are unsecured or secured
1-12 in whole or part by current assets. The term does not include a
1-13 liability secured by assets other than current assets.
1-14 (2) "Chief law enforcement official" means the sheriff
1-15 of the county in which a pawnshop is located or, if a pawnshop is
1-16 located in a municipality, the police chief of the municipality in
1-17 which the pawnshop is located.
1-18 (3) "Commissioner" means the consumer credit
1-19 commissioner.
1-20 (4) "Current assets" include an investment made in
1-21 cash, bank deposits, merchandise inventory, and loans due from
2-1 customers, excluding the pawn service charge. The term does not
2-2 include an investment made in:
2-3 (a) fixed assets of real estate, furniture,
2-4 fixtures, or equipment;
2-5 (b) stocks, bonds, or other securities; or
2-6 (c) prepaid expenses or other general
2-7 intangibles.
2-8 (4) "Designated law enforcement official" means any
2-9 law enforcement official or employee working for a recognized law
2-10 enforcement agency, who is designated by the Chief law enforcement
2-11 official over the jurisdiction in which the pawn shop operates, to
2-12 monitor and work with pawn shops.
2-13 (5) "Goods" means tangible personal property.
2-14 (6) "Misappropriated" means stolen, embezzled,
2-15 converted, or otherwise wrongfully appropriated against the will or
2-16 without the effective consent of the rightful owner.
2-17 (7) "Net assets" means the book value of current
2-18 assets less applicable liabilities.
2-19 (8) "Pawnbroker" means a person engaged in the
2-20 business of:
2-21 (a) lending money on the security of pledged
2-22 goods; or
2-23 (b) purchasing goods on condition that the goods
2-24 be redeemed or repurchased by the seller for a fixed price within a
2-25 fixed period.
3-1 (9) "Pawnshop" means a location at which or premises
3-2 in which a pawnbroker regularly conducts business.
3-3 (10) "Pawn transaction" means the pledging with a
3-4 pawnbroker of a single item of goods as security for a loan of
3-5 money.
3-6 (11) "Pledged goods" means goods deposited with or
3-7 otherwise delivered into the possession of a pawnbroker in
3-8 connection with a pawn transaction.
3-9 (12) "Pledgor" means an individual who pledges goods
3-10 to a pawnbroker in connection with a pawn transaction.
3-11 SECTION 2. The Texas Pawnshop Act (Chapter 371, Texas
3-12 Finance Code), is amended by adding Section 371.186 to read as
3-13 follows:
3-14 Sec. 371.186. PROVIDING DATA TO LAW ENFORCEMENT OFFICIALS BY
3-15 ELECTRONIC MEANS. (a) In this section, "reportable data" means
3-16 the information required to be recorded by pawnbrokers for pawn
3-17 transactions under Sections 371.157 of this Act and the
3-18 information required to be recorded by pawnbrokers for purchase
3-19 transactions under Section 371.177 of this Act.
3-20 (b) A Chief law enforcement official may, by formal action
3-21 of the governing body of the county or municipality, require
3-22 reporting pawnbrokers within the jurisdiction of such official to
3-23 provide all reportable data to a designated law enforcement
3-24 official by electronic means, in lieu of the paper documents, as
3-25 described in this section.
4-1 (c) This section applies only to a pawnbroker who, at the
4-2 time of receipt of written notice from a Chief law enforcement
4-3 official under subsection (d) of this section, possesses and uses
4-4 the computer equipment capable of complying with the requirements
4-5 for providing reportable data under this section and, for the most
4-6 recent preceding period of January 1 through December 31, conducted
4-7 at least 1,200 pawn and or purchase transactions. A pawnbroker who
4-8 becomes eligible for application of this section remains eligible
4-9 regardless of the number of pawn and or purchase transactions
4-10 conducted in subsequent periods.
4-11 (d) If the pawnbroker possesses and uses adequate computer
4-12 equipment, the pawnbroker shall, before the end of the six-month
4-13 period after the date of the receipt of the notice from the Chief
4-14 law enforcement official, make available all reportable data to the
4-15 designated law enforcement official in an ASCII text form utilizing
4-16 the Texas uniform reporting format as prescribed by the
4-17 commissioner or a format agreed upon by the Chief law enforcement
4-18 official and the pawnbroker. The data shall be reported on
4-19 reusable diskette media provided by the law enforcement official,
4-20 or on a secure telephone modem transmission, or hosted bulletin
4-21 board system that is mutually acceptable to the reporting
4-22 pawnbroker and the designated law enforcement official. A
4-23 pawnbroker who does not possess and use adequate computer hardware
4-24 and software shall comply with the requirements of this section
4-25 within 180 days from the date the pawnbroker obtains capable
5-1 computer hardware and software. A pawnbroker is not responsible
5-2 for any delay that results from the law enforcement official's
5-3 delay in facilitating the receipt of the data.
5-4 (e) The medium in which a pawnbroker provides data to the
5-5 designated law enforcement official must contain the reportable
5-6 data for all transactions during a particular business period of
5-7 not less than one business day and must be made available to be
5-8 picked up by or transmitted to the designated law enforcement
5-9 official by the end of the second business day after the business
5-10 period to which the data relates.
5-11 (f) During a test period beginning on the date a pawnbroker
5-12 begins to provide reportable data under this section, the
5-13 pawnbroker shall continue to make available copies of each of the
5-14 underlying pawn or purchase transaction documents to enable the
5-15 designated law enforcement official to ensure the proper operation
5-16 of the system for providing the data. The test period shall
5-17 continue until the system is properly operating and transmitting
5-18 data to the satisfaction of the designated law enforcement
5-19 official.
5-20 (g) A pawnbroker is responsible for training the
5-21 pawnbroker's employees in correct data reporting and shall make
5-22 every effort to provide complete and accurate data to the
5-23 designated law enforcement official. If a pawnbroker or the
5-24 designated law enforcement official discovers an error in the
5-25 provision of reportable data by that pawnbroker, the pawnbroker
6-1 shall be allowed a period of 30 days after the date of receipt of
6-2 notice from the law enforcement official to correct the error. If
6-3 a pawnbroker experiences a computer malfunction, the pawnbroker
6-4 shall be allowed a period of 30 days in which to correct the
6-5 malfunction. A pawnbroker who makes a bona fide effort to make the
6-6 appropriate system repairs during the periods prescribed by this
6-7 subsection is not in violation of this section during those
6-8 periods. During those periods of error or malfunction, the
6-9 pawnbroker shall provide paper copies of the transaction tickets to
6-10 the designated law enforcement official and any reduced hold period
6-11 for purchased goods shall revert to the standard hold period for
6-12 property as set out in Section 371.182 of this Act.
6-13 (h) All reportable data transmitted or furnished to any law
6-14 enforcement official under this Act is confidential and may be used
6-15 by that official only for official law enforcement related
6-16 investigations. A pawnbroker may not be held liable for furnishing
6-17 the information required by this Act to a law enforcement agency.
6-18 (i) In order to provide a uniform means of communication
6-19 between the pawnbrokers and law enforcement, a Texas uniform
6-20 reporting format shall be established. A committee shall be formed
6-21 under the direction of the Consumer Credit Commissioner consisting
6-22 of representatives of the pawnbroker industry, law enforcement and
6-23 computer software industry. The committee shall review and
6-24 recommend to the Commissioner, no later than November 1, 1999, a
6-25 format to be designated by the Commissioner as the Texas uniform
7-1 reporting format for use by pawnbrokers transmitting reportable
7-2 data to law enforcement agencies.
7-3 SECTION 3. The Texas Pawnshop Act (Chapter 371, Texas
7-4 Finance Code), is amended by adding Section 371.187 to read as
7-5 follows:
7-6 Sec. 371.187. ALTERNATIVE RECIPIENTS OF ELECTRONIC DATA. A
7-7 Chief law enforcement official may, by formal action of the
7-8 governing body of the county or municipality, require pawnbrokers
7-9 within the jurisdiction of such official to provide all reportable
7-10 data, pursuant to Section 351.186, to an alternative law
7-11 enforcement agency (but not more than one such alternative
7-12 recipient) in lieu of transmitting reportable data to that Chief
7-13 law enforcement official, for the purpose of operating a regional
7-14 clearinghouse of the reportable data. That alternative recipient
7-15 shall be known as the designated law enforcement official for that
7-16 jurisdiction for reporting purposes only.
7-17 SECTION 4. The Texas Pawnshop Act (Chapter 371, Texas
7-18 Finance Code), is amended by adding Section 371.188 to read as
7-19 follows:
7-20 Sec. 371.188. POLICE HOLDS. (a) If any law enforcement
7-21 official has reasonable suspicion to believe that property in the
7-22 possession of a pawnbroker has been misappropriated, the official
7-23 may place a hold order on the property as provided by this section.
7-24 (b) Any law enforcement official may place a hold order
7-25 verbally, but if the pawnbroker does not receive a written order
8-1 within 10 days after the date of the verbal order, the verbal hold
8-2 order automatically expires. The term of a written hold order may
8-3 not exceed 60 days from the earlier of the date of the verbal hold
8-4 order or the date of receipt by the pawnbroker of the written hold
8-5 order. If there is an unexpected delay in the investigation
8-6 relating to the property, the law enforcement official may extend
8-7 the term of the hold order for up to an additional 30 days by
8-8 notifying the pawnbroker in writing. The hold order shall
8-9 automatically expire upon expiration of the hold period and/or
8-10 extension.
8-11 (c) A hold order must specify:
8-12 (1) the name and address of the pawnbroker;
8-13 (2) the name, title, identification number and phone
8-14 number of the law enforcement official placing the hold order;
8-15 (3) a complete description of the property to be held,
8-16 including model number and serial number, if applicable, and the
8-17 ticket number assigned to the property;
8-18 (4) the name of the person reporting the property to
8-19 be misappropriated, if known;
8-20 (5) the expiration date of the holding period; and
8-21 (6) the name of the law enforcement agency that
8-22 prepared the investigative report and the number of the report the
8-23 investigation is being based upon.
8-24 (d) A written hold order may be transmitted to the
8-25 pawnbroker by facsimile machine, mail, or personally delivered.
9-1 (e) Except as provided by this subsection, the pawnbroker
9-2 may not release or dispose of property subject to a hold order
9-3 except under a search warrant, court order, release authorization
9-4 from the official placing the item on hold, seizure by a law
9-5 enforcement official, or the expiration of the hold period. A
9-6 pawnbroker shall release property to the custody of a law
9-7 enforcement official on the official's request for use in a
9-8 criminal investigation if the official has furnished the pawnbroker
9-9 with a written receipt for the property. The release of the
9-10 property to the custody of the official is not considered to be a
9-11 waiver or release of the pawnbroker's rights or interest in the
9-12 property. On the earlier of the completion of the criminal
9-13 investigation or the expiration of the hold period, the property
9-14 shall be returned to the pawnbroker who released it unless a court
9-15 order provides for other disposition. If other disposition is
9-16 ordered, the court may order the pledgor or seller to pay
9-17 restitution to the pawnbroker in the amount received by the pledgor
9-18 or seller for the property, plus accrued pawn service charges to
9-19 the date of seizure, in the case of pawn transactions, and
9-20 reasonable attorney's fees and costs.
9-21 SECTION 5. The Texas Pawnshop Act (Chapter 371, Texas
9-22 Finance Code), Section 371.182 is amended to read as follows:
9-23 Sec. 371.182. HOLD PERIOD. A pawnbroker [The commissioner]
9-24 shall [designate a reasonable] hold for not less than 20 calendar
9-25 days [period before a sale or other disposition of] an item of
10-1 tangible personal property purchased or otherwise acquired from the
10-2 general public before the property may be modified, changed, sold,
10-3 or disposed of in any manner [by a pawnbroker and offered for sale
10-4 or other disposition by the pawnbroker]. The Commissioner may
10-5 provide for a hold period of 10 days upon written application by a
10-6 pawnbroker. A reduction in the hold period may be granted only if
10-7 the pawnbroker and the chief law enforcement officer have
10-8 implemented a procedure for transmitting reportable electronic data
10-9 under Sections 371.186 or 371.187 of this Act. An application for
10-10 a shorter hold period must be approved by the Chief law enforcement
10-11 official before the application is submitted to the Commissioner by
10-12 the pawnbroker.
10-13 SECTION 6. The Texas Pawnshop Act (Chapter 371, Texas
10-14 Finance Code), Section 371.157, is amended to read as follows:
10-15 Sec. 371.157. Pawn Ticket. (a) A pawnbroker, at the time a
10-16 pawn transaction is entered, shall deliver to the pledgor a pawn
10-17 ticket or other memorandum that clearly shows:
10-18 (1) the name and address of the pawnshop;
10-19 (2) the pledgor's name, address, telephone number, and
10-20 physical description and [a driver's license number, military
10-21 identification number, identification certificate number, or other
10-22 official number that can identify the pledgor] the number of the
10-23 unexpired identification of the pledgor as required in section
10-24 371.174;
10-25 (3) the date of the transaction;
11-1 (4) an identification and complete description of the
11-2 pledged goods, including serial numbers if reasonably available;
11-3 (5) the amount of cash advanced or credit extended to
11-4 the pledgor, designated as "Amount Financed";
11-5 (6) the amount of the pawn service charge, designated
11-6 as "Finance Charge";
11-7 (7) the total amount, consisting of the amount
11-8 financed plus the finance charge, that must be paid to redeem the
11-9 pledged goods on the maturity date, designated as "Total of
11-10 Payments";
11-11 (8) the "Annual Percentage Rate," computed according
11-12 to regulations issued by the Federal Reserve Board under the Truth
11-13 in lending Act (15 U.S.C. Section 1601 et seq.), as amended;
11-14 (9) the maturity date of the pawn transaction; and
11-15 (10) a statement that:
11-16 (A) the pledgor is not obligated to redeem the
11-17 pledged goods; and
11-18 (B) the pledged goods may be forfeited to the
11-19 pawnbroker on the 61st day after the maturity date.
11-20 (b) The pawnbroker shall record a legible thumbprint of the
11-21 pledgor on the forth part of the pawn ticket or that part
11-22 numerically filed and retained by the pawnbroker.
11-23 SECTION 7. The Texas Pawnshop Act (Chapter 371, Texas
11-24 Finance Code), Section 371.177, is amended to read as follows:
11-25 Sec. 371.177. Purchase of Used Personal Property. (a) A
12-1 pawnbroker may not purchase property from a person other than
12-2 another pawnbroker or authorized vendor unless a record is
12-3 established that contains:
12-4 (1) the seller's name, address, telephone number, and
12-5 physical description and [a driver's license number, military
12-6 identification number, identification certificate number, or other
12-7 official number that can identify the seller] the number of the
12-8 unexpired identification of the seller as required in section
12-9 371.174;
12-10 (2) a complete description of the property, including
12-11 the serial number, if reasonably available, or other identifying
12-12 characteristics;
12-13 (3) the seller's signed statement that the seller has
12-14 the right to sell the property.
12-15 (b) The pawnbroker shall record a legible thumbprint of the
12-16 seller on the part of the purchase ticket numerically filed and
12-17 retained by the pawnbroker.
12-18 SECTION 8. Chapter 47, Texas Code of Criminal Procedure,
12-19 Article 47.01a is amended to read as follows:
12-20 Art. 47.01a. Restoring [When No Trial is Pending] Property
12-21 to Owner (a) [If a criminal action relating to stolen property is
12-22 not pending, a] A district judge, county court judge, statutory
12-23 county court judge, or justice of the peace having jurisdiction in
12-24 the county in which the property is being held or a municipal judge
12-25 having jurisdiction in the municipality in which the property is
13-1 being held may hold a hearing to determine the right to possession
13-2 of the property, upon the petition of an interested person, a
13-3 county, a city, or the state.
13-4 SECTION 9. This Act takes effect September 1, 1999.
13-5 SECTION 10. The importance of this legislation and the
13-6 crowded condition of the calendars in both houses create an
13-7 emergency and an imperative public necessity that the
13-8 constitutional rule requiring bills to be read on three several
13-9 days in each house be suspended, and this rule is hereby suspended.