HB 906 -- PAWNBROKERS

SPONSOR:  Rizzo

COMMITTEE ACTION:  Voted "do pass" by the Committee on Consumer
Protection by a vote of 9 to 2.

This bill revises the laws regulating pawnshop licensing and
operating procedures.  In its main provisions it:

(1)  Increases the maximum penalty a person faces for
misdemeanor violations of pawnbroker statutes from $1,000 to
$5,000, 6 months imprisonment, or both.  The person's pawnshop
license will be permanently revoked upon a second conviction.
The bill also denies pawnshop licenses to an applicant who has
been convicted of any of specified criminal offenses during the
past 10 years;

(2)  Requires that a complete and accurate description of all
property exchanged must be recorded on the receipt.  A person
who sells or pledges property to a pawnbroker must sign a
statement acknowledging that the seller has good title to the
property, the right to sell the property, and recognizes that
the sold goods may be forfeited to the pawnbroker if not
redeemed or repurchased within 60 days of specified maturity
dates;

(3)  Prohibits pawnbrokers from accepting any item for pawn or
purchase if it is evident that the manufacturer issued serial
number has been altered or removed.  Local law enforcement
officers do not need a search warrant to inspect property held
by a pawnbroker, if they make a request of the pawnbroker and
proceed in a manner that minimizes interference with regular
business operations.  Law enforcement officers may place a
renewable  written hold order, not to exceed one month, on any
property they believe to be stolen that is held by a pawnbroker;

(4)  Makes a person guilty of the crime of fraudulently pledging
stolen goods, if the person fails to repay the pawnbroker within
10 days of formal notification that stolen property was involved
in the transaction.  The crime is a class B misdemeanor, a class
A misdemeanor, or a class C felony depending on the amount of
money involved in the transaction.  An additional court fee of
$5 to $25, depending on the value of contested property, is
authorized to support the operations of the court;

(5)  Establishes procedures for restoring stolen property to the
rightful owner.  A person may recover stolen property held by a
pawnbroker by first notifying the pawnbroker of the claim and,
if unresolved after 10 days, filing a petition in court.  The
pawnbroker may simultaneously bring an action against the person
who pledged or sold the stolen property.  If the property is
found to be stolen, the court will restore it to the original
owner who may recover legal costs from the pawnbroker who may,
in turn, recover all costs associated with the action from the
person who brought the property to the pawnbroker.  If the court
finds that the claimant is not entitled to the property, that
person is liable for costs associated with the action incurred
by all parties to the action.  The bill establishes a similar
procedure for reimbursing customers who unknowingly purchase
stolen merchandise from a pawnbroker;

(6)  Prohibits municipalities and counties from restricting the
ability of an existing pawnshop license holder to renew the
license or transfer the license to another eligible person; and

(7)  Prohibits any county or municipality from enacting any
ordinances which are inconsistent with the provisions of this
bill.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this bill is the result of
meetings with the State Highway Patrol to correct flaws in the
pawnbroker law.

Testifying for the bill were Representative Rizzo; the Missouri
Pawnbrokers Association; Cash America Association; and the
Missouri Deputy's Association.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Research Analyst

HB 906 -- Pawnbrokers

Co-Sponsors:  Rizzo, Skaggs

This bill revises the laws regulating pawnshop licensing and
operating procedures.  In its main provisions it:

(1)  Increases the maximum penalty a person faces for
misdemeanor violations of pawnbroker statutes from $1,000 to
$5,000, 6 months imprisonment, or both.  The person's pawnshop
license will be permanently revoked upon a second conviction.

The bill also denies pawnshop licenses to an applicant who has
been convicted of any of specified criminal offenses during the
past 10 years;

(2)  Requires that a complete and accurate description of all
property exchanged must be recorded on the receipt.  A person
who sells or pledges property to a pawnbroker must sign a
statement acknowledging that the seller has good title to the
property, the right to sell the property, and recognizes that
the sold goods may be forfeited to the pawnbroker if not
redeemed or repurchased within 60 days of specified maturity
dates;

(3)  Prohibits pawnbrokers from accepting any item for pawn or
purchase if it is evident that the manufacturer issued serial
number has been altered or removed.  Local law enforcement
officers do not need a search warrant to inspect property held
by a pawnbroker, if they make a request of the pawnbroker and
proceed in a manner that minimizes interference with regular
business operations.  Law enforcement officers may place a
renewable  written hold order, not to exceed one month, on any
property they believe to be stolen that is held by a pawnbroker;

(4)  Makes a person guilty of the crime of fraudulently pledging
stolen goods, if the person fails to repay the pawnbroker within
10 days of formal notification that stolen property was involved
in the transaction.  The crime is a class B misdemeanor, a class
A misdemeanor, or a class C felony depending on the amount of
money involved in the transaction.  An additional court fee of
$5 to $25, depending on the value of contested property, is
authorized to support the operations of the court;

(5)  Establishes procedures for restoring stolen property to the
rightful owner.  A person may recover stolen property held by a
pawnbroker by first notifying the pawnbroker of the claim and,
if unresolved after 10 days, filing a petition in court.  The
pawnbroker may simultaneously bring an action against the person
who pledged or sold the stolen property.  If the property is
found to be stolen, the court will restore it to the original
owner who may recover legal costs from the pawnbroker who may,
in turn, recover all costs associated with the action from the
person who brought the property to the pawnbroker.  If the court
finds that the claimant is not entitled to the property, that
person is liable for costs associated with the action incurred
by all parties to the action.  The bill establishes a similar
procedure for reimbursing customers who unknowingly purchase
stolen merchandise from a pawnbroker; and

(6)  Prohibits municipalities and counties from restricting the
ability of an existing pawnshop license holder to renew the
license or transfer the license to another eligible person.

This bill prohibits any county or municipality from enacting any
ordinances which are inconsistent with the provisions of this
bill.