By Elkins                                             H.B. No. 3170
         76R6623 KEL-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of the offense of the fraudulent pledge or
 1-3     sale of property to a licensed pawnbroker.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter D, Chapter 32, Penal Code, is amended
 1-6     by adding Section 32.51 to read as follows:
 1-7           Sec. 32.51.  FRAUDULENT PLEDGE OR SALE OF PROPERTY TO
 1-8     LICENSED PAWNBROKER.  (a)  In this section:
 1-9                 (1)  "Licensed pawnbroker" means a pawnbroker who holds
1-10     a pawnshop license issued under Chapter 371, Finance Code.
1-11                 (2)  "Pawn transaction" has the meaning assigned by
1-12     Section 371.003, Finance Code.
1-13                 (3)  "Payment in full" means the amount advanced by a
1-14     licensed pawnbroker for property plus, for a pawn transaction, the
1-15     accrued service charge on the amount advanced.
1-16           (b)  A person commits an offense if the person pledges or
1-17     sells property to a licensed pawnbroker knowing that the person is
1-18     not entitled to pledge or sell the property.
1-19           (c)  A person commits an offense if, with intent to defraud
1-20     or harm another, the person uses a false, altered, or stolen
1-21     identification to effect a pawn transaction or a sale of property
1-22     to a licensed pawnbroker.
1-23           (d)  For purposes of Subsection (b), a person is presumed to
1-24     have known that the person was not entitled to sell or pledge
 2-1     property if the person fails to make payment in full on the
 2-2     property to a licensed pawnbroker within 10 days of receiving
 2-3     notice from the pawnbroker that the property has been reported
 2-4     stolen to a law enforcement agency.
 2-5           (e)  For purposes of Subsection (d), notice may be  given
 2-6     orally or in a written form that:
 2-7                 (1)  is sent by registered or certified mail with
 2-8     return receipt requested;
 2-9                 (2)  is addressed to the person at the person's address
2-10     shown on the pawn ticket or sales receipt; and
2-11                 (3)  contains the following statement:
2-12           "This is a demand for payment in full for property that was
2-13     pledged or sold to this pawnbroker in a transaction in which,
2-14     according to a report received by a law enforcement agency, you
2-15     were not entitled to pledge or sell the property.  If you fail to
2-16     make payment in full within 10 days after the date of receipt of
2-17     this notice, the failure to pay creates a presumption for
2-18     committing an offense, and this matter may be referred for criminal
2-19     prosecution."
2-20           (f)  Subsection (d) does not prevent the prosecution from
2-21     establishing the knowledge requirement of Subsection (b) by direct
2-22     evidence.
2-23           (g)  An offense under Subsection (b) is a state jail felony,
2-24     unless it is shown on the trial of the offense that the person has
2-25     been previously convicted of an offense under Subsection (b), in
2-26     which event the offense is a felony of the third degree.
2-27           (h)  An offense under Subsection (c) is a Class A
 3-1     misdemeanor.
 3-2           SECTION 2.  This Act takes effect September 1, 1999.
 3-3           SECTION 3.  The importance of this legislation and the
 3-4     crowded condition of the calendars in both houses create an
 3-5     emergency and an imperative public necessity that the
 3-6     constitutional rule requiring bills to be read on three several
 3-7     days in each house be suspended, and this rule is hereby suspended.