THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY V. BROWN, SHAPIRO, BARBIN, BROWNLEE, D. COSTA, DAVIDSON, GEIST, JOSEPHS, KORTZ, MANN, MIRABITO, MOUL, MUNDY, PARKER, PASHINSKI, VULAKOVICH, DeLUCA AND KIRKLAND, FEBRUARY 16, 2011

AS REPORTED FROM COMMITTEE ON JUDICIARY, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 10, 2011   

AN ACT

Amending the act of April 6, 1937 (P.L.200, No.51), entitled "An

act licensing and regulating the business of pawnbrokers;

providing for the issuance of licenses by the Secretary of

Banking; authorizing the Secretary of Banking to make

examinations and issue regulations; limiting the interest and

charges on loans; and prescribing penalties for the violation

of this act," further providing for definitions, for identity

of pledger and for pawn ticket; providing for hold orders and

related procedures; and further providing for sale of pledge

and for penalties.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definitions of "pawnbroker," "pledge" and

"pledger" in section 2 of the act of April 6, 1937 (P.L.200,

No.51), known as the Pawnbrokers License Act, amended June 20,

1947 (P.L.701, No.305), are amended to read:

Section 2.  Definitions.--The following terms shall be

construed in this act to have the following meanings, except in

those instances where the context clearly indicates otherwise.

"Pawnbroker" includes any person, who--(1) engages in the

business of lending money on the deposit or pledge of personal

property, other than choses in action, securities, or written

evidences of indebtedness; or (2) purchases personal property

with an expressed or implied agreement or understanding to sell

it back at a subsequent time at a stipulated price; or (3) lends

money upon goods, wares or merchandise pledged, stored or

deposited as collateral security; or (4) purchases items of

personal property without an agreement to sell the items back if

the transaction occurs in an establishment where business is

conducted under paragraph (1), (2) or (3).

"Pledge" means--(1) an article or articles deposited with a

pawnbroker as security for a loan in the course of his business

as defined in [the preceding paragraph] paragraph (3) of the

definition of "pawnbroker"; or (2) an item of personal property

purchased by the pawnbroker solely for resale.

"Pledger" means--(1) the person who obtains a loan from a

pawnbroker and delivers a pledge into the possession of a

pawnbroker, unless such person discloses that he is or was

acting for another in which case a "pledger" means the disclosed

principal; or (2) the person who sells an item of personal

property to a pawnbroker solely for the pawnbroker's resale of

the item.

* * *

Section 2.  Section 13 of the act, amended December 15, 1969

(P.L.364, No.159), is amended to read:

Section 13.  Identity of Pledger.--At the time of granting an

original loan or purchasing an item of personal property, the

pawnbroker shall enter upon his records, in the form and manner

designated by the Secretary of Banking, a description of the

pledger so as to identify the pledger, including [the pledger's

name and address, and either the pledger's motor vehicle

operator's number, the pledger's Social Security number, or, if

the pledger does not have this information, such other proof of

identity as the Secretary of Banking shall provide by

regulation.]:

(1)  name;

(2)  address;

(3)  age;

(4)  sex;

(5)  race;

(6)  photocopy of a valid photo identification document

issued by the Federal or State government; and

(7)  digital photograph of the pledger taken at the time of

the transaction.

Section 3.  Section 14 of the act is amended to read:

Section 14.  Pawn Ticket.--At the time of granting a loan and

upon the subsequent renewal of any loan or when purchasing

personal property, the pawnbroker shall furnish to the pledger a

pawn ticket which is serially numbered and which shall contain

the following information--name and address of the pawnbroker,

the name and address of the pledger, name and address of

disclosed principal, if any, the date of the loan, the amount

actually loaned, the serial number of the loan, description of

the pledge, due date of the loan, the total amount of principal,

interest and charges required to redeem the pledge on the due

date, a statement setting forth that the pledge may be sold

after ninety (90) days of the due date of the loan if not

redeemed. A pawnbroker may insert additional provisions on the

pawn ticket not inconsistent with this act, and he shall insert

such other provisions as may be required by the Secretary of

Banking.

A duplicate copy of the pawn ticket shall be retained by the

pawnbroker for his record.

The pawnbroker shall require the pledger to surrender the

original pawn ticket when the pledge is released or the loan is

renewed.

Section 4.  The act is amended by adding a section to read:

Section 16.1.  Hold Orders and Related Procedures.--(a)  When

an appropriate law enforcement official has probable cause to

believe that property in the possession of a pawnbroker is

misappropriated, the official may place a written hold order on

the property. The written hold order shall impose a holding

period not to exceed ninety (90) days unless extended by court

order. The appropriate law enforcement official may rescind, in

writing, any hold order. An appropriate law enforcement official

may place only one hold order on property.

(b)  Upon the expiration of the holding period, the

pawnbroker shall notify, in writing, the appropriate law

enforcement official by certified mail, return receipt

requested, that the holding period has expired. If, on the tenth

day after the written notice has been received by the

appropriate law enforcement official, the pawnbroker has not

received from a court an extension of the hold order on the

property and the property is not the subject of another court

proceeding, title to the property shall vest in and be deemed

conveyed by operation of law to the pawnbroker, free of any

liability for claims but subject to any restrictions contained

in the pawn transaction contract and subject to the provisions

of this section.

(c)  A hold order must specify:

(1)  The name and address of the pawnbroker.

(2)  The name, title and identification number of the

representative of the appropriate law enforcement official or

the court placing the hold order.

(3)  If applicable, the name and address of the appropriate

law enforcement official or court to which such representative

is attached and the number, if any, assigned to the claim

regarding the property.

(4)  A complete description of the property to be held,

including model number and serial number if applicable.

(5)  The name of the person reporting the property to be

misappropriated unless otherwise prohibited by law.

(6)  The mailing address of the pawnbroker where the property

is held.

(7)  The expiration date of the holding period.

(d)  The pawnbroker or the pawnbroker's representative must

sign and date a copy of the hold order as evidence of receipt of

the hold order and the beginning of the ninety (90) day holding

period.

(e)  (1)  Except as provided in paragraph (2), a pawnbroker

may not release or dispose of property subject to a hold order

except pursuant to a court order, a written release from the

appropriate law enforcement official or the expiration of the

holding period of the hold order.

(2)  While a hold order is in effect, the pawnbroker must

upon request release the property subject to the hold order to

the custody of the appropriate law enforcement official for use

in a criminal investigation. The release of the property to the

custody of the appropriate law enforcement official is not

considered a waiver or release of the pawnbroker's property

rights or interest in the property. Upon completion of the

criminal proceeding, the property must be returned to the

pawnbroker unless the court orders other disposition. When

another disposition is ordered, the court shall additionally

order the conveying customer to pay restitution to the

pawnbroker in the amount received by the conveying customer for

the property together with reasonable attorney fees and costs.

Section 5.  Sections 23 and 31 of the act are amended to

read:

Section 23.  Sale of Pledge.--Upon default in the payment of

any loan, a pawnbroker may sell the pledge upon the conditions

contained in this section.

A pawnbroker may sell a pledge at private sale for an amount

not less than that agreed to by the pledger, which amount shall

be stipulated on the pawn ticket and shall not be less than one

hundred twenty-five per cent (125%) of the amount of the loan. A

pledge which cannot be sold at private sale at the minimum price

agreed to by the pledger must be sold at public auction.

No unredeemed pledge may be sold before the expiration of

ninety (90) days after the due date of the loan unless otherwise

specifically authorized in writing by the pledger. This

authority to sell an unredeemed pledge prior to the expiration

of ninety (90) days after the due date of the loan must be given

by the pledger on a date subsequent to the due date of the loan.

An unredeemed pledge shall be sold within twelve months of

the due date of a loan. No interest or charges permitted under

this act may be collected on a loan after the expiration of

twelve months of the due date of a loan, whether the loan is

renewed, or the loan is paid and the pledge redeemed. Where the

pawnbroker has failed to sell the pledge within six months of

the due date of the loan, no such interest or charges may be

computed for the period after six months of the due date of a

loan in determining the surplus due the pledger if a pledge is

sold subsequent to six months after the due date of a loan.

A pawnbroker shall keep an article of personal property it

received as a pledge for not less than ninety (90) days.

Section 31.  Penalties.--Any person, partnership, association

or corporation, or any partner, director, officer, agent or

member thereof who shall engage in the business of pawnbroking

in this Commonwealth without first obtaining a license under

this act, shall be guilty of a misdemeanor, and, upon conviction

thereof, shall be sentenced to pay a fine of not less than five

hundred ($500.00) dollars nor more than five thousand

($5,000.00) dollars, and/or suffer imprisonment not less than

six months nor more than three years, in the discretion of the

court.

A pawnbroker licensed under the provisions of this act who

shall violate any provision of this act, or shall direct or

consent to such violation, shall be guilty of a misdemeanor,

and, upon conviction thereof, shall be sentenced to pay a fine

of not more than one thousand ($1,000.00) dollars for the first

offense, and for each subsequent offense a like fine, and/or

suffer imprisonment not to exceed one year, in the discretion of

the court.

An individual, partnership, association, corporation or

business entity that commits a violation of this act shall, upon

conviction, in addition to the other penalties set forth in this

section, have its license issued under the act revoked and be

ineligible to apply for a pawnbroker's license under this act

for five (5) years after the violation from the date of

<--

conviction.

Section 6.  This act shall take effect in 60 days.