PRINTER'S NO. 1060
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
865
Session of
2015
INTRODUCED BY HARHAI, THOMAS, HEFFLEY, V. BROWN, O'BRIEN,
DAWKINS, DeLUCA, KIRKLAND, COHEN, McNEILL, MURT AND MAHONEY,
APRIL 1, 2015
REFERRED TO COMMITTEE ON JUDICIARY, APRIL 1, 2015
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 license
required, for application for license; repealing provisions
relating to interest and charges, to identity of pledgor, to
pawn ticket, to negotiability of ticket, to loss of ticket,
seizure of ticket or of property offered as pledge, to
altered ticket, to counterfeit ticket, to payment or renewal
and to pawnbroker's lien on pledge; further providing for
pawnbroker's lien on pledge and for sale of pledge; repealing
provisions relating to business hours and business with
minors; and providing for pawnbroker transaction form, for
recordkeeping and storage, for pledged goods not redeemed,
for pawn service charges, for prohibited acts, for right to
redeem and lost transaction form, for pawnbroker's lien, for
claims against purchased goods or pledged goods held by
pawnbrokers and for hold orders.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. 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) and December 28, 1994 (P.L.1402, No.163),
is amended to read:
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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.
"Pledge" means 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.
"Pledger" means 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.
"Person" includes an individual, partnership, association,
business corporation, nonprofit corporation, common law trust,
joint-stock company or any group of individuals however
organized.
"Pawnbroking" means the business of a pawnbroker as defined
in this act.
"Pawn Ticket" means the card, book, receipt or other record
furnished to the pledger at the time a loan is granted
containing the terms of the contract for a loan.
"Applicant" means any individual, partnership, association,
business corporation, nonprofit corporation, common law trust,
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joint-stock company or any group of individuals however
organized applying for a license under this act and/or any
person appearing as owner, partner, officer, director, trustee
or other official of a partnership, association, business
corporation, nonprofit corporation, common law trust, joint-
stock company or any group of individuals however organized, on
such application for license under this act.
"Municipality" includes a city, town, borough or township.]
"Amount financed." The amount of money loaned or principal
amount.
"Applicant." Any individual, partnership, association,
business corporation, nonprofit corporation, common law trust,
joint-stock company or any group of individuals however
organized applying for a license under this act and/or any
person appearing as owner, partner, officer, director, trustee
or other official of a partnership, association, business
corporation, nonprofit corporation, common law trust, joint-
stock company or any group of individuals however organized, on
such application for license under this act.
"Appropriate law enforcement official." Includes the
following:
(1) the sheriff of the county in which a pawnshop is
located;
(2) the police chief of the municipality in which a pawnshop
is located;
(3) the law enforcement official designated by the sheriff
or police chief if the official is employed by the county or
municipality; or
(4) the Pennsylvania State Police in the case of a pawnshop
located in a municipality which does not have a police
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department and receives law enforcement services from the
Pennsylvania State Police.
"Beneficial owner." A person who does not have title to a
property but has rights in the property which are the normal
incident of owning the property.
"Claimant." A person who claims that his property was
misappropriated.
"Conveying customer." A person who delivers property into
the custody of a pawnbroker by pawn, sale, consignment or trade.
"Default date." That date upon which the pledgor's right of
redemption expires and absolute right, title and interest in the
pledged goods vests and is deemed conveyed to the pawnbroker by
operation of law.
"Identification." A government-issued photographic
identification, an electronic image taken from a government-
issued photographic identification or a government-issued
nonphotographic identification.
"Misappropriated." Stolen, embezzled, converted or otherwise
wrongfully appropriated against the will of the rightful owner.
"Municipality." Includes a city, town, borough or township.
"Net worth." Total assets less total liabilities.
"Pawn." Any loan of funds on the security of pledged goods
on condition that the pledged goods are left in the possession
of the pawnbroker for a specified time period and may be
redeemed by the pledgor on the terms and conditions contained in
this act.
"Pawn service charge." A charge investigating the title,
storage and insuring of the security, closing the transaction,
making daily reports to appropriate law enforcement officials,
expenses and losses and all other services.
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"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.
"Pawnbroker transaction form." The instrument on which a
pawnbroker records a pawn or purchase as provided in section
29.1.
"Pawnbroking." The business of a pawnbroker as defined in
this act.
"Pawnshop." The location at which a pawnbroker conducts
business.
"Permitted vendor." Includes:
(1) a vendor who furnishes a pawnbroker with an invoice
specifying the vendor's name and address, the date of the sale,
a description of the items sold and the sales price and has an
established place of business; or
(2) a secondhand dealer who has represented in writing that
such dealer has complied with all applicable recordkeeping,
reporting and retention requirements pertaining to goods sold or
otherwise delivered to a pawnbroker.
"Person." Includes an individual, partnership, association,
business corporation, nonprofit corporation, common law trust,
joint-stock company or any group of individuals however
organized.
"Pledge." An article or articles deposited with a pawnbroker
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as security for a loan in the course of his business under this
act.
"Pledged goods." Tangible personal property that is
deposited or delivered into the possession of a pawnbroker in
connection with a pawn. The term does not include a title or any
other form of written security in tangible property in lieu of
actual physical possession, including, but not limited to,
choses in action, securities, printed evidence of indebtedness
or certificate of titles and other instruments evidencing title
to separate items of property, including motor vehicles. For the
purpose of Federal and State law, the term includes only a
pledgor's right of redemption interest in the tangible personal
property for the duration of the pawn.
"Pledgor." 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 "pledgor" means the disclosed principal.
"Purchase." The transfer and delivery of goods, by a person
other than a permitted vendor, to a pawnbroker by acquisition
for value, consignment or trade for other goods.
"Secretary of Banking" or "secretary" [includes] The
Secretary of Banking and Securities and includes a designee of
the [Secretary of Banking] secretary.
Section 2. Section 3 of the act is amended to read:
Section 3. License Required.--(a) No person, partnership,
association, business corporation, nonprofit corporation, common
law trust, joint-stock company or any group of individuals
however organized shall, on and after the effective date of this
act, engage or continue to engage in business as a pawnbroker in
this Commonwealth except as authorized by this act and without
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first obtaining a license from the [Secretary of Banking]
secretary.
(b) No person shall engage in the business of pawnbroking in
this Commonwealth unless the person has a valid license issued
by the secretary. A separate license is required for each
pawnshop. The secretary shall issue a license for each pawnshop
which meets the requirements for licensure.
(c) A licensee who seeks to move a pawnshop to another
location in this Commonwealth shall give written notice to the
secretary and the appropriate law enforcement official at least
thirty (30) days before the move. The secretary shall amend the
license to indicate the new location.
(d) A license issued under this section is valid for a
period of one year unless it is earlier relinquished, suspended
or revoked. The license shall be renewed annually, and each
licensee shall, initially and annually thereafter, pay to the
secretary a license fee of three hundred dollars ($300) for each
license held.
(e) The secretary may issue a temporary license for the
operation of a pawnshop upon receipt of any of the following:
(1) An application to transfer an existing license from one
person to another.
(2) An application for a license which has an owner or
principal that the secretary, in his discretion, determines is
substantially similar to the existing licensee.
The temporary license is effective until a permanent license is
issued or denied by the secretary.
(f) A person shall apply to the secretary for a new license
or for a temporary license upon any change, directly or
beneficially, in the ownership of any pawnshop. An application
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for a license or an application to transfer an existing license
is not required upon any change, directly or beneficially, in
the ownership of a pawnshop if one or more holders of at least
ninety per cent (90%) of the outstanding equity interest of the
pawnshop before the change in ownership continue to hold at
least ninety per cent (90%) of the outstanding equity interest
after the change in ownership.
(g) Any person applying for or renewing a local occupational
license to engage in the business of pawnbroking shall obtain a
valid license to engage in the business of pawnbroking before
the local business tax receipt may be issued or reissued.
Section 3. Section 4 of the act, amended December 28, 1994
(P.L.1402, No.163), is amended to read:
Section 4. Application for License.--(a) The application
for such license shall be in writing, under oath and in the form
prescribed by the [Secretary of Banking] secretary and shall
contain the name and address of the residence of the applicant,
and if the applicant is a partnership, association, joint-stock
company or common law trust of every member thereof, and if the
applicant is a business corporation or nonprofit corporation of
each officer and director thereof; also the county and
municipality with street and number, if any, office building and
room number, if any, where the business is to be conducted and
such further information as the [Secretary of Banking] secretary
may require. The application shall be signed by the individual
owner if the applicant is an individual, by all the partners if
the applicant is a partnership, by two officers if the applicant
is an association, joint-stock company or common law trust, and
by the president and secretary if the applicant is a business
corporation or a nonprofit corporation.
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(b) Every applicant for a new license shall post, for a
period of at least thirty (30) days beginning with the day the
application is filed with the [Secretary of Banking] secretary,
in a conspicuous place on the outside of the premises or at the
proposed new location for which the licensee applies a notice of
the application in the form, of the size and containing
provisions as the [Secretary of Banking] secretary may require
by its regulations. Proof of the posting of the notice shall be
filed with the [Secretary of Banking] secretary.
(c) An applicant shall not be eligible for a license who,
within ten (10) years of receipt of the application by the
secretary:
(1) has been convicted or found guilty of or pled guilty or
nolo contendere to a felony;
(2) has been convicted or found guilty of or pled guilty or
nolo contendere to a crime of theft, larceny, dealing in stolen
property, receiving stolen property, burglary, embezzlement,
obtaining property by false pretenses, possession of altered
property or any other fraudulent or dishonest dealing within ten
(10) years;
(3) acts as a beneficial owner for someone who has been
convicted or found guilty of or pled guilty or nolo contendere
to a felony or a crime listed under paragraph (2).
Section 4. Section 12 of the act, amended March 10, 1949
(P.L.305, No.16), May 20, 1949 (P.L.1485, No.442), July 31, 1963
(P.L.423, No.220) and December 28, 1994 (P.L.1402, No.163), is
repealed:
[Section 12. Interest and Charges.--(A) A pawnbroker shall
not charge, contract for or receive interest in excess of six
per cent (6%) per year on any loan.
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In addition to interest at the rate of six per cent (6%) per
year, a pawnbroker may charge and collect from the pledger fees
for storage, insurance, investigation, and other services which
shall be--
Not more than two and one-half per cent (2 1/2%) per month on
that part of the unpaid principal balance of any loan: Provided,
however, That a pawnbroker may charge an additional fee of up to
one dollar ($1.00) to cover reporting relating to any pledge
required by any governmental unit.
(B) The interest and charges authorized by this act shall be
computed at the rates specified on the actual principal balance
of the loan due for the actual time which has elapsed from the
date of the loan to the date of payment. For the purpose of
calculation of interest and charges permitted under this act, a
year shall be twelve (12) calendar months, and a month shall be
one calendar month, or any fractional part thereof. A calendar
month shall be any period from a certain date in one month to
the same date in the next succeeding month.
(C) A minimum of twenty-five cents ($.25) on loans of three
dollars and ninety-nine cents ($3.99), or less, a minimum of
fifty cents ($.50) on loans of more than three dollars and
ninety-nine cents ($3.99) and not in excess of six dollars and
ninety-nine cents ($6.99), a minimum of seventy-five cents
($.75) on loans of more than six dollars and ninety-nine cents
($6.99) and not in excess of nine dollars and ninety-nine cents
($9.99), and a minimum of one dollar ($1.00) on loans in excess
of ten dollars ($10) and not exceeding fourteen dollars and
ninety-nine cents ($14.99), and a minimum of one dollar and
fifty cents ($1.50) on loans in excess of fifteen dollars ($15),
may be collected on any loan for interest and charges.
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(D) No greater interest nor other fees, fines, charges or
costs shall be charged, contracted for or received, directly or
indirectly, under any pretext whatsoever. Interest and charges
permitted under this act shall not be collected or deducted in
advance.
(E) A pawnbroker who charges, contracts for or receives
interest or charges greater than permitted under this act shall
forfeit both principal and interest, and shall return the pledge
upon demand of the pledger, and surrender of the pawn ticket
without tender or payment of principal or interest. A pledger,
borrowing money from a pawnbroker licensed under this act, who
shall have paid any interest and charges in excess of those
prescribed and allowed by the provisions of this act, shall be
entitled to recover back from the pawnbroker, by action at law
commenced within six months from the date of the last payment,
any and all interest and charges paid in excess of those
permitted under this act, and in addition fifty dollars ($50.00)
as a penalty to be paid to the pledger: Provided, nothing in
this section shall be construed as prohibiting the pawnbroker
from charging the pledger for actual expenses incurred for
mailing when a pledge is redeemed by mail.
A pawnbroker shall at the time of payment furnish to the
person paying a receipt showing the number of the pawn ticket on
which the payment is made, the date of payment, the amount paid
on principal of the loan, the amount paid for interest, and fees
for storage, insurance, investigation and other services
contemplated by this section, and the amount, if any, paid to
the pawnbroker for cleaning, pressing, repairing or other
similar services to the pledged personal property, which have
been requested by the pledger. A duplicate copy of every receipt
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issued shall be retained by the pawnbroker for his record.]
Section 5. Section 13 of the act, amended December 15, 1969
(P.L.364, No.159), is repealed:
[Section 13. Identity of Pledger.--At the time of granting
an original loan, 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.]
Section 6. Sections 14 and 15 of the act are repealed:
[Section 14. Pawn Ticket.--At the time of granting a loan
and upon the subsequent renewal of any loan, 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.
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The pawnbroker shall require the pledger to surrender the
original pawn ticket when the pledge is released or the loan is
renewed.
Section 15. Negotiability of Ticket.--The pledger may by
delivery of the pawn ticket, assign all his right, title, and
interest in a pawn ticket and the pledge described therein.
Except as otherwise provided in this act, the person presenting
a pawn ticket to the pawnbroker shall be presumed to be the
pledger and shall be entitled to redeem the pledge, and the
pawnbroker shall deliver the pledge to the person presenting
such pawn ticket upon payment of principal, interest, and
charges on the loan and upon surrender of the pawn ticket.]
Section 7. Section 16 of the act, amended July 31, 1963
(P.L.423, No.220), is repealed:
[Section 16. Loss of Ticket; Seizure of Ticket or of
Property Offered as Pledge.--Notice of a pawn ticket which has
been lost, destroyed or stolen shall be furnished to the
pawnbroker by the pledger in person or by registered mail. The
receipt of notice by registered mail of a lost, destroyed or
stolen ticket or the issuance of a stop ticket by the pawnbroker
after personal notice by the pledger of a lost, destroyed or
stolen ticket shall be treated by the pawnbroker as a stop
against the loan. The pawnbroker shall require the alleged
pledger to furnish an affidavit or written statement as to the
loss, destruction or theft of the pawn ticket. The pawnbroker,
upon receipt of such affidavit or written statement, shall
permit the pledger to redeem the loan or shall furnish the
pledger with a duplicate pawn ticket, and the pawnbroker shall
not be liable for any pledge released on such affidavit or
written statement, unless previous written notice by registered
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mail of an adverse claim was received by the pawnbroker or a
stop ticket was issued by the pawnbroker.
Whenever a pawn ticket is presented to a pawnbroker, which
pawn ticket has previously been reported to such pawnbroker as
lost or stolen, the pawnbroker may seize and retain such pawn
ticket on behalf of the rightful owner without incurring any
liability whatsoever to the person presenting such pawn ticket.
Whenever any property is offered to a pawnbroker as a pledge
which is stolen property or which the pawnbroker has reason to
believe is stolen property, he may seize such property without
incurring any liability whatsoever, either civil or criminal.
Upon such seizure of property, a seizure receipt therefor shall
be issued by the pawnbroker to the person from whom the property
was seized. Such property and a copy of the seizure receipt
shall be delivered immediately by the pawnbroker to the police
authorities.]
Section 8. Sections 17 and 18 of the act are repealed:
[Section 17. Altered Ticket.--Whenever a pawn ticket has
been altered, the pawnbroker's records shall govern, and the
pawnbroker shall deliver the pledge according to the terms of
the pawn ticket as originally issued, and shall be relieved of
any other liability to the pledgor or holder of the ticket.
Section 18. Counterfeit Ticket.--Whenever a pawn ticket is
presented to a pawnbroker which is found to be counterfeit, the
pawnbroker may seize and retain such counterfeit pawn ticket on
behalf of the rightful owner of the pawn ticket without
incurring any liability whatsoever to the person presenting such
pawn ticket.]
Section 9. Section 19 of the act, amended July 31, 1963
(P.L.423, No.220), is repealed:
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[Section 19. Payment or Renewal.--A loan granted under the
provisions of this act shall not be repayable in installments.
A pledge taken as security on a loan granted under the
provisions of this act may be retained by the pawnbroker until a
period of forty-eight (48) hours has elapsed since such pledge
was received by the pawnbroker.
A pawnbroker shall, upon receipt of interest and charges,
renew a loan for the original amount for a period of eight (8)
months after the date of the original loan. Interest and charges
on a loan shall not be compounded, nor may the interest or
charges be added to the principal balance, when a loan is
renewed for an amount greater than the principal amount due at
the time of renewal. The pledger shall, however, have the
privilege of paying the loan in full at any time subsequent to
forty-eight hours after the granting of the loan by payment of
principal, interest, and charges authorized under the provisions
of this act.
Whenever a loan is renewed, a new pawn ticket shall be
furnished to the pledger as required under this act.]
Section 10. Sections 21 and 23 of the act are amended to
read:
Section 21. Pawnbroker's Lien on Pledge.--The pawnbroker
shall have first lien on all pledges for the amount of his loan,
interest, and charges in all cases, except where the pledging or
possession thereof by the pledger constituted larceny at common
law, or except where a prior lien exists by virtue of any other
statute.
Except as otherwise provided in this act, a pawnbroker shall
not be required by legal process, or otherwise, to deliver a
pledge without surrender of [the pawn ticket] an exact copy of
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the completed pawnbroker transaction form unless the [pawn
ticket] pawnbroker transaction form has been impounded or its
negotiation enjoined by a court of competent jurisdiction.
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] pledgor, 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] pledgor 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.]
Section 11. Section 28 of the act is repealed:
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[Section 28. Business Hours.--A pawnbroker shall not
transact any business on Sunday, nor shall he accept a pledge on
any other day between the hours of nine o'clock in the evening
and seven o'clock in the morning, unless further restricted by
municipal ordinance.]
Section 12. Section 29 of the act, amended October 10, 1974
(P.L.709, No.236), is repealed:
[Section 29. Business with Minors.--A pawnbroker shall not
accept a pledge from any person under the age of eighteen
years.]
Section 13. The act is amended by adding sections to read:
Section 29.1. Pawnbroker Transaction Form.-- (a) When a
pawnbroker enters into any pawn or purchase transaction, the
pawnbroker shall complete a pawnbroker transaction form for such
transaction. The form shall include whether the transaction is a
pawn or a purchase. The pledgor or seller shall sign such
completed form. The pawnbroker transaction form shall not be
used if the design and format of the pawnbroker transaction form
does not meet the requirements of this section. The pawnbroking
transaction form shall be eight and one-half inches by eleven
inches in size and contain the information required under this
section, which must be typed or written indelibly and legibly in
English.
(b) The front of the pawnbroker transaction form for a pawn
or purchase, as applicable, shall include all of the following:
(1) The name and address of the pawnshop.
(2) A complete and accurate description of the pledged goods
or purchased goods, including all of the following information:
(i) Brand name.
(ii) Model number.
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(iii) Manufacturer's serial number.
(iv) Size.
(v) Color, as apparent to the untrained eye.
(vi) Precious metal type, weight and content, if known.
(vii) Gemstone description, including the number of stones.
(viii) In the case of firearms, the type of action, caliber
or gauge, number of barrels, barrel length and finish.
(ix) Any other unique identifying marks, numbers, names or
letters.
Notwithstanding subparagraphs (ii), (iii) and (vii), a pawn or
purchase of items of a similar nature delivered together in one
transaction which do not bear serial or model numbers or do not
include precious metal or gemstones, such as musical or video
recordings, books or hand tools, shall not require more than the
amount of items and a description of the type of items
delivered.
(3) The name, address, home telephone number, place of
employment, date of birth, physical description and right
thumbprint of the pledgor or seller.
(4) The date and time of the transaction.
(5) The type of identification accepted from the pledgor or
seller, including the issuing agency and the identification
number.
(c) The front or back of the pawnbroker transaction form for
a pawn or purchase shall include all of the following:
(1) The amount of money advanced, which shall be designated
as the amount financed.
(2) The maturity date of the pawn, which shall be thirty
(30) days after the date of the pawn.
(3) The default date of the pawn and the amount due on the
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default date.
(4) The total pawn service charge payable on the maturity
date, which shall be designated as the finance charge.
(5) The amount financed plus the finance charge that shall
be paid to redeem the pledged goods on the maturity date, which
shall be designated as the total of payments.
(6) The annual percentage rate, computed according to the
regulations adopted by the Federal Reserve Board under the Truth
in Lending Act (Public Law 90-321, 15 U.S.C. § 1601 et seq.).
(7) The amount of money paid for the goods or the monetary
value assigned to the goods in connection with the transaction.
(8) A statement that the pledgor or seller of the item
represents and warrants that it is not stolen, that it has no
liens or encumbrances against it and that the pledgor or seller
is the rightful owner of the goods and has the right to enter
into the transaction.
(d) The front of the pawnbroker transaction form for a pawn
shall include a statement of all of the following:
(1) Any personal property pledged to a pawnbroker within
this Commonwealth which is not redeemed within thirty (30) days
after the maturity date of the pawn shall be automatically
forfeited to the pawnbroker on the next business day after the
thirty (30) day period, and absolute right, title and interest
in the property vests and is deemed conveyed to the pawnbroker
by operation of law and no further notice is necessary.
(2) The pledgor is not obligated to redeem the pledged
goods.
(3) If the pawnbroker transaction form is lost, destroyed or
stolen, the pledgor shall immediately advise the issuing
pawnbroker in writing by certified or registered mail, return
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receipt requested or in person evidenced by a signed receipt.
(4) A pawn may be extended upon mutual agreement of the
parties.
(e) A pawnbroker transaction form shall provide a space for
the imprint of the right thumbprint of the pledgor or seller and
a blank line for the signature of the pledgor or seller.
(f) At the time of the pawn or purchase transaction, the
pawnbroker shall obtain a right thumbprint and signature of the
pledgor or seller on the correct space and line of the
pawnbroker transaction form and shall deliver to the pledgor or
seller an exact copy of the completed pawnbroker transaction
form.
(g) Any person who knowingly provides false verification of
ownership or identification to a pawnbroker in the course of
pawn or purchase and receives compensation in exchange for
personal property commits:
(1) if the value of the money received is less than three
hundred dollars ($300), a felony of the third degree; or
(2) if the value of the money received is three hundred
dollars ($300) or more, a felony of the second degree.
Section 29.2. Recordkeeping and Storage.-- (a) (1) Before
the end of each business day, a pawnbroker shall deliver, unless
subsection (d) applies, the original pawnbroker transaction form
to the appropriate law enforcement official for each transaction
during the previous business day, unless other arrangements have
been agreed upon between the pawnbroker and the appropriate law
enforcement official.
(2) A pawnbroker shall maintain the original or a copy of
each completed pawnbroker transaction form on the pawnshop
premises for at least one year after the date of the
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transaction.
(3) If the original transaction form is lost or destroyed by
the appropriate law enforcement official, the copy retained by
the pawnbroker shall be admissible in court in the same manner
as an original pawnbroker transaction form.
(b) When an electronic image of a pledgor or seller
identification is accepted for a transaction, the pawnbroker
shall maintain the electronic image in order to meet the same
recordkeeping requirements as for the original transaction form.
If a criminal investigation occurs, the pawnbroker shall, upon
request, provide a clear and legible copy of the image to the
appropriate law enforcement official .
(c) If the appropriate law enforcement agency supplies the
appropriate software and the pawnbroker presently has the
computer ability, pawn transactions shall be electronically
transferred. If a pawnbroker does not presently have the
computer ability, the appropriate law enforcement agency may
provide the pawnbroker with a computer and all necessary
equipment for the purpose of electronically transferring pawn
transaction forms. The appropriate law enforcement agency shall
retain ownership of the computer, unless otherwise agreed upon.
Notwithstanding ordinary wear and tear, the pawnbroker shall
maintain the computer in good working order.
(d) A pawnbroker may transfer pawnbroker transaction forms
electronically to the appropriate law enforcement official. If
the pawnbroker elects to do so, the pawnbroker shall not be
required to deliver the original of the pawnbroker transaction
forms to the appropriate law enforcement official under
subsection (a)(1), but must retain the original form for a
period of at least one year from the date of the transaction.
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The appropriate law enforcement official may, for the purposes
of a criminal investigation, request that the pawnbroker produce
the original of a transaction form that has been electronically
transferred. The pawnbroker shall deliver the form to the
appropriate law enforcement official within twenty-four (24)
hours of the request.
(e) All goods delivered to a pawnbroker in a pawn or
purchase transaction shall be securely stored and maintained in
an unaltered condition within the jurisdiction of the
appropriate law enforcement official for a period of thirty (30)
calendar days after the transaction. The goods delivered to a
pawnbroker in a purchase transaction shall not be sold or
otherwise disposed of before the expiration of such period. The
pawnbroker shall make all pledged and purchased goods and all
records relating to such goods available for inspection by the
appropriate law enforcement official during normal business
hours throughout such period. The pawnbroker may relinquish the
goods before the end of such period if the pledged goods are
redeemed by the pledgor or the pledgor's authorized
representative.
Section 29.3. Pledged Goods Not Redeemed.--Pledged goods not
redeemed by the pledgor on or before the maturity date of a pawn
shall be held by the pawnbroker for at least thirty (30) days
after the date until the next business day. Pledged goods not
redeemed within the period following the maturity date of a pawn
are automatically forfeited to the pawnbroker and absolute
right, title and interest in the goods shall vest and be deemed
conveyed to the pawnbroker by operation of law and no further
notice shall be necessary. A pledgor has no obligation to redeem
pledged goods or make any payment on a pawn.
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Section 29.4. Pawn Service Charges.--(a) In a pawn
transaction, a pawnbroker may contract for and receive a pawn
service charge, including an interest component. The interest
component of the pawn service charge shall be deemed to be two
per cent (2%) of the amount financed for each thirty (30) day
period in a pawn transaction. The pawnbroker may charge any
amount of pawn service charge, so long as the total amount,
inclusive of the interest component, does not exceed twenty-five
per cent (25%) of the amount financed for the thirty (30) day
period in a pawn transaction, except that the pawnbroker is
entitled to receive a minimum pawn service charge of five
dollars ($5) for such thirty (30) day period.
(b) The default date of any pawn may be extended to a
subsequent date by mutual agreement between the pledgor and the
pawnbroker, except the pawnbroker shall not impose a minimum
duration of more than thirty (30) days. The new default date
shall be evidenced by a written memorandum, a copy of which
shall be supplied to the pledgor. The written memorandum shall
clearly specify the new default date and the pawn service
charges owed on the new default date. The daily pawn service
charge for the extension shall be eight per cent (8%) of the
original total pawn service charge. There shall be no limit on
the number of extensions that the parties may agree to.
(c) The total amount of pawn service charges that a
pawnbroker may collect in the case of pledged goods redeemed at
any time within thirty (30) days after the date of the pawn
shall be the amount provided in subsection (a). The total amount
of pawn service charges that a pawnbroker may collect in the
case of redemptions occurring at any time after thirty (30) days
from the date of the pawn is twice the amount provided in
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subsection (a). For redemptions occurring more than sixty (60)
days after the date of the pawn, pawn service charges shall
continue to accrue after the sixty (60) day period at the daily
rate as provided in subsection (b). Any unused pawn service
charge paid in advance by the pledgor shall be refunded by the
pawnbroker.
(d) Pledged goods may be redeemed by mail by agreement
between the pledgor and the pawnbroker. The pledgor shall pay in
advance all moneys due and a reasonable charge assessed by the
pawnbroker to recover its cost and expenses involved in the
packaging, insuring and shipping of the pledged goods. The
pawnbroker shall insure the pledged goods in an amount
acceptable to the pledgor. The pawnbroker's liability for loss
or damage in connection with the shipment of such pledged goods
is limited to the amount of the insurance coverage obtained.
(e) Any interest, charge or fees contracted for or received,
directly or indirectly, in excess of the amounts authorized
under this section shall be prohibited. The amounts in excess
shall not be collected and shall render the pawn transaction
voidable. Any pawnbroker who violates this subsection shall:
(1) forfeit the right to collect twice the amount of the
pawn service charge contracted for in the pawn; and
(2) upon the pledgor's written request received by the
pawnbroker within thirty (30) days after the maturity date, be
obligated to return to the pledgor the pledged goods delivered
to the pawnbroker in connection with the pawn upon payment of
the balance remaining due.
There shall not be a penalty for an accidental and bona fide
error that is corrected upon discovery. Any action to circumvent
the limitation on pawn service charges collectible under this
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section is voidable. If the pledgor makes a partial payment on a
pawn that reduces the amount financed, any additional pawn
service charges shall be calculated on the remaining balance of
the original amount financed.
Section 29.5. Prohibited Acts.--(a) A pawnbroker, or an
employee or agent of a pawnbroker, shall not do any of the
following:
(1) Falsify or intentionally fail to make an entry of any
material matter in a pawnbroker transaction form.
(2) Refuse to allow the secretary, the appropriate law
enforcement official or any of their designated representatives
having jurisdiction, to inspect completed pawnbroker transaction
forms or pledged or purchased goods during the ordinary hours of
the pawnbroker's business or other time acceptable to both
parties. The appropriate law enforcement official shall disclose
to a claimant the name and address of the pawnbroker, the name
and address of the conveying customer and a description of
pawned, purchased or consigned goods that the claimant claims to
be misappropriated.
(3) Obliterate, discard or destroy a completed pawnbroker
transaction form before three years after the date of the
transaction.
(4) Accept a pledge or purchase property from an individual
under eighteen (18) years of age.
(5) Make any agreement requiring or allowing the personal
liability of a pledgor or the waiver of any of the provisions of
this section.
(6) Knowingly enter into a pawn or purchase transaction with
any person who is under the influence of alcohol or controlled
substances when such condition is apparent or with any person
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using the name of another or the registered name of another's
business.
(7) Conduct any pawn or purchase transaction at a drive-
through window or similar device in which the customer remains
in a vehicle while conducting the transaction.
(8) Fail to return or replace pledged goods to a pledgor
upon payment of the full amount due the pawnbroker, unless the
pledged goods have been placed under a hold order or taken into
custody by a court or otherwise disposed of by court order.
(9) Sell or otherwise charge for insurance in connection
with a pawn transaction, except in connection with the shipment
of pledged goods redeemed by mail.
(10) Engage in title loan transactions.
(11) Lease pledged goods to the pledgor or any other party.
(12) Operate a pawnshop between the hours of ten o'clock at
night and nine o'clock in the morning.
(13) Knowingly hire anyone to work in a pawnshop who has
been convicted of, entered a plea of guilty or nolo contendere
to or had adjudication withheld for a felony or a crime
involving theft, larceny, dealing in stolen property, receiving
stolen property, burglary, embezzlement, obtaining property by
false pretenses, possession of altered property or any
fraudulent or dishonest dealing within the last five (5) years.
(14) Knowingly accept or receive misappropriated property
from a conveying customer in a pawn or purchase transaction.
(15) Knowingly violate any provision of section 29.4, 29.6,
29.7, 29.8 or 29.9.
(b) A violation of this section shall constitute an unfair
or deceptive act or practice under the act of December 17, 1968
(P.L.1224, No.387), known as the "Unfair Trade Practices and
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Consumer Protection Law," and shall be subject to the right of
the attorney to bring an action to seek appropriate relief as
provided by that act.
Section 29.6. Right to Redeem and Lost Transaction Form.--
(a) Only a pledgor or a pledgor's authorized representative
shall be entitled to redeem the pledged goods described in the
pawnbroker transaction form. If the pawnbroker determines that
the person is not the original pledgor or the pledgor's
authorized representative, the pawnbroker shall not be required
to allow the redemption of the pledged goods by such person. The
person redeeming the pledged goods shall sign the pledgor's copy
of the pawnbroker transaction form, which the pawnbroker may
retain as evidence of the person's receipt of the pledged goods.
If the person redeeming the pledged goods is the pledgor's
authorized representative, the person shall present notarized
authorization from the original pledgor and show identification
to the pawnbroker. The pawnbroker shall record the person's name
and address on the pawnbroker transaction form retained by the
pawnshop. It is the pawnbroker's responsibility to verify that
the person redeeming the pledged goods is either the pledgor or
the pledgor's authorized representative.
(b) If a pledgor's copy of the pawnbroker transaction form
is lost, destroyed or stolen, the pledgor shall notify the
pawnbroker in writing by certified or registered mail, return
receipt requested or in person evidenced by a signed receipt,
and receipt of this notice invalidates the pawnbroker
transaction form if the pledged goods have not previously been
redeemed. Before delivering the pledged goods or issuing a new
pawnbroker transaction form, the pawnbroker shall require the
pledgor to make a written statement of the loss, destruction or
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theft of the pledgor's copy of the pawnbroker transaction form.
The pawnbroker shall record on the written statement the type of
identification and the identification number accepted from the
pledgor, the date the statement is given and the number of the
pawnbroker transaction form that was lost, destroyed or stolen.
The statement shall be signed by the pawnbroker or the pawnshop
employee who accepts the statement from the pledgor.
(c) A pawnbroker is entitled to a fee not to exceed two
dollars ($2) in connection with each lost, destroyed or stolen
pawnbroker transaction form and the taking of a properly
prepared written statement. Sales tax shall not be due or
collectible in connection with the redemption of pledged goods.
(d) If pledged goods are lost or damaged while in the
possession of the pawnbroker, the pawnbroker may satisfy the
pledgor's claim by replacing the lost or damaged goods with like
kinds of merchandise of equal value with which the pledgor can
reasonably replace the goods. Such replacement is a defense to
any civil action based upon the loss or damage of the goods.
Section 29.7. Pawnbroker's Lien.--A pawnbroker shall have a
possessory lien on the pledged goods pawned as security for the
funds advanced, the pawn service charge owed and the other
charges authorized under this section, but not for other debts
due to the pawnbroker. A pawnbroker shall not have recourse
against a pledgor for payment on a pawn transaction except for
the pledged goods themselves. Except as otherwise provided in
this section, the pawnbroker shall retain possession of the
pledged goods until the lien is satisfied or until the default
date. The pawnbroker may be compelled to relinquish possession
of the pledged goods only after receipt of the applicable funds
advanced plus the accrued service charge and other authorized
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charges, upon court order or as otherwise provided by law.
Section 29.8. Claims Against Purchased Goods or Pledged
Goods Held by Pawnbrokers.--(a) To obtain possession of
purchased or pledged goods held by a pawnbroker which a claimant
claims to be misappropriated, the claimant shall notify the
pawnbroker by certified mail, return receipt requested or in
person evidenced by signed receipt of the claimant's claim to
the purchased or pledged goods. The notice shall contain a
complete and accurate description of the purchased or pledged
goods and shall be accompanied by a legible copy of the
applicable law enforcement agency's report on the
misappropriation of such property. If the claimant and the
pawnbroker fail to resolve the matter within ten (10) days after
the pawnbroker's receipt of the notice, the claimant may
petition the court to order the return of the property, naming
the pawnbroker as a defendant, and shall serve the pawnbroker
with a copy of the petition. The pawnbroker shall hold the
property described in the petition until the right to possession
is resolved by the parties or by a court of competent
jurisdiction. The court shall waive any filing fee for the
petition to recover the property and the sheriff shall waive the
service fees.
(b) If, after notice and a hearing, the court finds that the
property was misappropriated and orders the return of the
property to the claimant, all of the following apply:
(1) The claimant may recover from the pawnbroker the costs
of the action, including the claimant's reasonable attorney
fees.
(2) If the conveying customer is convicted of theft or
dealing in stolen property relating to this misappropriation,
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the court shall order the conveying customer to repay the
pawnbroker the full amount the conveying customer received from
the pawnbroker for the property, plus all applicable pawn
service charges. As used in this paragraph, the term "convicted
of" includes a plea of nolo contendere to the charges or any
agreement in which adjudication is withheld.
(3) The conveying customer shall be responsible to pay all
attorney fees and taxable costs incurred by the pawnbroker.
(c) The sale, pledge or delivery of tangible personal
property to a pawnbroker by any person in this Commonwealth
shall be considered to be all of the following:
(1) An agreement by the person who sells, pledges or
delivers the tangible personal property that the person is
subject to the jurisdiction of the court in all civil actions
and proceedings arising out of the pledge or sale transaction
filed by either a resident or nonresident plaintiff.
(2) An agreement by any nonresident that any process in any
suit so served has the same legal force and validity as if
personally served in this Commonwealth.
Section 29.9. Hold Orders.-- (a) When the 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. The 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
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enforcement official by certified mail, return receipt
requested, that the holding period has expired. If ten (10) days
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 a proceeding for relating to
misappropriation, 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 shall specify all of the following:
(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 shall
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
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period.
(e) Except as provided under subsection (f), a pawnbroker
shall 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.
(f) While a hold order is in effect, the pawnbroker shall
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 shall not be
considered a waiver or release of the pawnbroker's property
rights or interest in the property. Upon completion of the
criminal proceeding, the property shall be returned to the
pawnbroker unless the court orders other disposition. When such
other 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 14. This act shall take effect in 60 days.
20150HB0865PN1060 - 32 -
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