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CSSB 292(L&C): "An Act relating to the registration and operation of pawnbrokers, to the exemption for pawnbrokers under the Alaska Small Loans Act, and to the exclusion of pawnbrokers under certain definitions in the Uniform Commercial Code; and providing for an effective date."

00 CS FOR SENATE BILL NO. 292(L&C) 01 "An Act relating to the registration and operation of pawnbrokers, to the exemption for 02 pawnbrokers under the Alaska Small Loans Act, and to the exclusion of pawnbrokers 03 under certain definitions in the Uniform Commercial Code; and providing for an 04 effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 06.20.330(b) is amended to read: 07 (b) This chapter does not apply to individual loans by pawnbrokers or loan 08 shops where separate and individual loans do not exceed $500. In this subsection, 09 "pawnbroker" means a person who is regulated under AS 08.76.100 - 08.76.590. 10 * Sec. 2. AS 08.01.010 is amended by adding a new paragraph to read: 11 (39) regulation of pawnbrokers (AS 08.76.100 - 08.76.590). 12 * Sec. 3. AS 08.76.010(a) is amended to read: 13 (a) A person engaged in the business of buying and selling secondhand 14 articles, [OR LENDING MONEY ON SECONDHAND ARTICLES,] except a bank

01 or a person regulated by AS 08.76.100 - 08.76.590, shall maintain a book, in 02 permanent form, in which the person shall enter in legible English at the time of each 03 [LOAN,] purchase [,] or sale 04 (1) the date of the transaction; 05 (2) the name of the person conducting the transaction; 06 (3) the name, age, and address of the customer; 07 (4) a description of the property bought [OR RECEIVED IN 08 PLEDGE], which includes, for any firearm, watch, camera, or optical equipment 09 bought [OR RECEIVED IN PLEDGE], the name of the maker, the serial, model, or 10 other number, and all letters and marks inscribed; 11 (5) the price paid [OR AMOUNT LOANED]; 12 (6) the signature of the customer. 13 * Sec. 4. AS 08.76.020 is amended to read: 14 Sec. 08.76.020. Manner of recording entry. The entries in the book [AND 15 THE ELECTRONIC RECORD] required by AS 08.76.010 shall appear in 16 chronological order [AND, WHEN MADE IN A BOOK,] in ink or indelible pencil. 17 Blank lines may not be left between entries. Obliterations, alterations, or erasures may 18 not be made. Corrections shall be made by drawing a line through the entry without 19 destroying its legibility, and [, WHEN MADE IN A BOOK,] the line shall be drawn in 20 ink. The book shall be open to the inspection of a peace officer at reasonable times. 21 * Sec. 5. AS 08.76 is amended by adding new sections to read: 22 Article 2. Licensing and Regulation of Pawnbrokers. 23 Sec. 08.76.100. Licensing required. (a) A person may not engage in business 24 as a pawnbroker without holding a license issued by the department. 25 (b) A license is not transferable or assignable. 26 Sec. 08.76.110. Requirements for license. The department may issue a license 27 to a person if the person 28 (1) has good character; 29 (2) has the experience to engage in business as a pawnbroker; 30 (3) is fit to engage in business as a pawnbroker; 31 (4) submits an application as required by the department under

01 AS 08.01.060; and 02 (5) pays a fee established by the department under AS 08.01.065. 03 Sec. 08.76.130. Withdrawal of application. The department may consider 04 that a person has withdrawn the person's application for a license if 05 (1) the application does not contain all of the required information; or 06 (2) the information required for the application is not submitted to the 07 department within 90 days after the department requests in writing that the person 08 provide the department with the information. 09 Sec. 08.76.140. Duration and renewal of license. (a) A license is valid for 10 two years. 11 (b) A person may renew a license under AS 08.01.100. The renewal fee must 12 be equal to the fee established under AS 08.76.110(5). 13 (c) Notwithstanding AS 08.01.100(b), if a person fails to renew a license 14 before the expiration date of the license, the person shall pay the department a delayed 15 renewal penalty of $100 in addition to the regular renewal fee. 16 (d) If a person fails to renew the person's license, the person may not engage 17 in business as a pawnbroker until the person's license is renewed or a new license is 18 issued. 19 (e) The department may refuse to renew a license under this section for 20 reasons that would have prevented the issuance of the license to the person under 21 AS 08.76.110. 22 Sec. 08.76.160. Limit on pawn transaction amount. A licensee may not enter 23 into a pawn transaction that exceeds $500, excluding the finance fee and any fees 24 charged under AS 08.76.220. 25 Sec. 08.76.170. Customer and transaction limitations. (a) A pawnbroker 26 may not knowingly enter into a pawnbroker transaction with a person who is 27 (1) under 18 years of age; 28 (2) under the influence of alcohol or a controlled substance when the 29 influence is apparent; or 30 (3) using the name of another person. 31 (b) A pawnbroker may not knowingly accept or receive misappropriated

01 property from a person in a pawnbroker transaction. 02 Sec. 08.76.180. Record of pawnbroker transactions. (a) A pawnbroker shall 03 maintain a pawn book in which the pawnbroker shall enter in legible English at the 04 time of each pawnbroker transaction 05 (1) the date of the pawnbroker transaction; 06 (2) the name of the person conducting the pawnbroker transaction; 07 (3) the name, age, and address of the pledgor or purchaser; 08 (4) a description of the pledged property or purchased property, 09 including, with regard to a firearm, a watch, a camera, or optical equipment, the name 10 of the maker, and the serial number, model number, or other number on the item of 11 property; 12 (5) the price paid or amount loaned; 13 (6) the signature of the pledgor or seller; and 14 (7) the type of identification used by the pledgor or seller, the name of 15 the government agency that issued the identification, and the number written on the 16 identification. 17 (b) A pawn book may be contained in a book or in an electronic format. 18 (c) A pawnbroker may not falsify or intentionally fail to make an entry of a 19 material matter in a pawn book. 20 (d) A pawnbroker shall maintain in good condition the pawn book record of a 21 completed pawnbroker transaction for one year after the completion of the pawnbroker 22 transaction. 23 Sec. 08.76.190. Recording requirements. The records required to be 24 maintained in a pawn book by AS 08.76.180 must appear in chronological order and, 25 if made in a book, in ink or indelible pencil. Blank lines may not be left between 26 entries. A pawnbroker may not change a record in a pawn book by obliteration, 27 alteration, or erasure. A pawnbroker may correct a record in a pawn book by drawing 28 a line through the entry without destroying its legibility. 29 Sec. 08.76.200. Transaction agreement. A pawnbroker shall provide to a 30 pledgor or seller a copy of the transaction agreement between the pawnbroker and the 31 pledgor or seller. The agreement must clearly and conspicuously disclose

01 (1) the name and address of the pawnbroker and the name and mailing 02 address of the pledgor or seller; 03 (2) the date of the transaction; 04 (3) a description of the item sold or pledged; 05 (4) the amount of each fee charged under AS 08.76.210 and 08.76.220; 06 (5) if the transaction is a pawn transaction, the amount financed and 07 the maturity date; and 08 (6) if the transaction is a purchase by the pawnbroker, the amount of 09 the purchase price. 10 Sec. 08.76.210. Finance fee. (a) Except as provided in AS 08.76.280, for each 11 30-day period of a pawn transaction, including a grace period, a pawnbroker may 12 charge a pledgor a finance fee of $5 or an amount that equals interest at a rate that 13 does not exceed 20 percent of the amount financed, whichever amount is greater. 14 (b) A finance fee is considered to be earned on the day that the pawn 15 transaction is entered into and on the first day of each subsequent 30-day period of the 16 pawn transaction. 17 Sec. 08.76.220. Other charges allowed. (a) Except as provided in 18 AS 08.76.280, a pawnbroker may charge a processing fee of not more than $5 for each 19 pawn transaction for preparing and processing the pawn transaction documentation, 20 providing law enforcement reports, paying expenses, providing other services, and for 21 losses. 22 (b) A pawnbroker may charge a pledgor who places a firearm with the 23 pawnbroker as pledged property 24 (1) a firearm processing fee of not more than $5; and 25 (2) a governmental fee. 26 Sec. 08.76.230. Insurance. A pawnbroker may not sell to a pledgor or 27 otherwise charge a pledgor for insurance in connection with a pawn transaction, 28 except to cover the shipment of pledged property that is redeemed by mail. 29 Sec. 08.76.240. Return of pledged property. A pawnbroker shall return 30 pledged property to a pledgor when the pledgor redeems the pledged property. The 31 pawnbroker shall provide the pledgor with a receipt showing the redemption. The

01 receipt must be on a form approved by the department. 02 Sec. 08.76.250. Extension of grace period. A pawnbroker and a pledgor may 03 agree to extend the 30-day grace period allowed under AS 08.76.270(b), but each 04 extension may not exceed 30 days. An extension must be in writing, and the 05 pawnbroker shall give the pledgor a copy of the extension agreement. The agreement 06 must clearly state the last day of the extension and the finance fee charged for the 07 extension. 08 Sec. 08.76.260. Retention, storage, and lease. A pawnbroker shall store 09 pledged property in a secure area and maintain the pledged property in an unaltered 10 condition. A pawnbroker may not lease pledged property. 11 Sec. 08.76.270. Redemption. (a) Unless there is a hold order on the pledged 12 property, the pledged property is subject to a claim under AS 08.76.370 or 08.76.380, 13 or the property is returned to a lessor under AS 08.76.400, a pledgor may redeem 14 pledged property by paying the amount financed and the finance fee in full before the 15 pawnbroker's scheduled closing time on the maturity date. 16 (b) If a pledgor does not pay the amount financed and the finance fee in full 17 before the pawnbroker's scheduled closing time on the maturity date, the pawnbroker 18 shall hold the pledged property on the pawnbroker's business premises for a grace 19 period of 30 days plus any extension allowed under AS 08.76.250. A pledgor may 20 redeem the pledged property during the actual grace period by paying the amount 21 financed and the finance fee, but a pledgor may not redeem pledged property after the 22 pawnbroker's scheduled closing time on the last day of the actual grace period. In this 23 subsection, "actual grace period" means the grace period plus any extension allowed 24 under AS 08.76.250. 25 (c) If there is a hold order on pledged property, the pledgor may redeem the 26 pledged property only when the hold order is released. 27 (d) If pledged property is subject to a claim under AS 08.76.370 or 08.76.380, 28 the pledgor may redeem the pledged property only when the pledged property 29 becomes available under AS 08.76.370 or 08.76.380 for redemption. 30 (e) If a pledgor does not redeem pledged property under (a) - (d) of this 31 section, the title and all interest in the pledged property transfer to the pawnbroker.

01 (f) The holder of a transaction agreement is presumed to be the person who is 02 entitled to redeem the pledged property that is the subject of the transaction 03 agreement, and a pawnbroker shall deliver the pledged property to the person who 04 presents the transaction agreement and pays the amount financed and the finance fee 05 for the pawn transaction. 06 Sec. 08.76.280. Military personnel. A pawnbroker shall waive the unpaid 07 amount financed and the finance fee due on a pawn transaction and hold, except as 08 provided in AS 08.76.320 - 08.76.380, the pledged property that is the subject of the 09 pawn transaction on the pawnbroker's business premises until 60 days after the 10 pledgor, the pledgor's spouse, or the pledgor's dependent returns to the United States, 11 if the pawnbroker receives a copy of military orders indicating that 12 (1) the pledgor, or the pledgor's spouse or dependent, is enlisted in the 13 military service of a state or the federal government; and 14 (2) after the pawn transaction was entered into, the person was or is to 15 be deployed abroad for service relating to a military conflict. 16 Sec. 08.76.290. Business operation method and hours. A pawnbroker may 17 not engage in the business of being a pawnbroker 18 (1) by using a method, including a drive-through window, in which a 19 person remains in a motor vehicle while conducting the pawnbroker transaction; or 20 (2) between the hours of 12 midnight and 6:00 a.m. 21 Sec. 08.76.300. Waiver prohibited. A pawnbroker may not require or allow a 22 person to waive a provision of AS 08.76.100 - 08.76.590. 23 Sec. 08.76.310. Employees. A pawnbroker may not knowingly employ a 24 person to work in a pawnshop if, within five years before the employment begins, the 25 person was convicted of, entered a plea of guilty to, entered a plea of no contest to, or 26 had adjudication withheld for a felony, or for a misdemeanor involving dishonesty. 27 Sec. 08.76.320. Issuance of police hold order. (a) When a law enforcement 28 officer has probable cause to believe that property in the possession of a pawnbroker 29 at a pawnshop in the law enforcement officer's jurisdiction has been misappropriated, 30 the law enforcement officer may issue a police hold order that directs the pawnbroker 31 not to release or dispose of the property until the police hold order terminates or a

01 court orders the release or disposal. 02 (b) Unless a pawnbroker or the pawnbroker's designee refuses to sign the 03 police hold order, a police hold order begins when the pawnbroker or the pawnbroker's 04 designee receives the police hold order. If the pawnbroker or the pawnbroker's 05 designee refuses to sign the police hold order, the police hold order begins when the 06 refusal occurs. 07 Sec. 08.76.330. Evidentiary hold order. (a) When property in the possession 08 of the pawnbroker may be needed as evidence in a filed court action involving a 09 criminal charge, a law enforcement agency may issue an evidentiary hold order to a 10 pawnbroker that directs the pawnbroker not to release or dispose of the property until 11 the evidentiary hold order terminates or a court orders the release or disposal. 12 (b) A pawnbroker who receives an evidentiary hold order under (a) of this 13 section shall hold the property until the attorney general notifies the pawnbroker in 14 writing of the disposition of the filed court action. The attorney general shall notify the 15 pawnbroker within 15 days after the disposition of the filed court action for which the 16 property may be needed as evidence. 17 Sec. 08.76.340. Contents and form of hold order. A hold order must be in 18 writing and contain 19 (1) the name of the pawnbroker; 20 (2) if a police hold order, the name, title, and identification number of 21 the law enforcement officer issuing the police hold order, and the name and address of 22 the law enforcement agency for which the law enforcement officer is acting; 23 (3) if an evidentiary hold order, the name and address of the law 24 enforcement agency issuing the evidentiary hold order; 25 (4) the number, if any, assigned by the law enforcement agency to the 26 case, and, for an evidentiary hold order, the number and caption of the filed court 27 action; 28 (5) a complete description of the property being held, including the 29 model number and serial number, if any; 30 (6) if a police hold order, the name of the person, if any, who reported 31 the property as misappropriated;

01 (7) the mailing address of the pawnshop where the property is being 02 held; and 03 (8) the expiration date of the hold order. 04 Sec. 08.76.350. Duration of police hold order. (a) A police hold order may 05 not exceed 30 days. However, a law enforcement officer may extend the police hold 06 order for two additional successive 30-day periods by giving written notification to the 07 pawnbroker before the expiration of each 30-day period. 08 (b) A law enforcement agency may not issue a new police hold order for the 09 same property after the second additional 30-day period allowed under this section. 10 However, the termination of the police hold order does not affect an existing 11 evidentiary hold order on the same property or prevent the issuance of an evidentiary 12 hold order for the same property. 13 (c) A law enforcement agency may release a police hold order before the end 14 of a 30-day period by issuing a written release to the pawnbroker. 15 Sec. 08.76.360. Noncompliance with hold order. The department may 16 suspend or revoke a pawnbroker's license if the pawnbroker knowingly fails to comply 17 with a hold order. 18 Sec. 08.76.370. Claim notification. (a) If a person believes that property in the 19 possession of a pawnbroker was misappropriated from the person, and if the person 20 wants to obtain possession of the property from the pawnbroker, the person shall first 21 notify the pawnbroker by certified mail, return receipt requested, of the person's claim. 22 (b) A notice under (a) of this section must contain a complete and accurate 23 description of the property and must be accompanied by proof that the claimant owns 24 the property and, if the claimant alleges that the property was stolen, a legible copy of 25 a law enforcement agency's report indicating that the property was stolen. 26 (c) Except as provided in AS 08.76.380, a pawnbroker may not, for 30 days 27 after the pawnbroker receives notice of the claim under this section, dispose of 28 property that is the subject of a claim. 29 Sec. 08.76.380. Court action on claim. If a claimant and a pawnbroker do not 30 resolve a claim within 10 days after the pawnbroker's receipt of a notice of the claim 31 under AS 08.76.370, the claimant may bring an action in superior court to require the

01 pawnbroker to return the property to the claimant. After a pawnbroker is notified that a 02 court action has been filed, the pawnbroker may not dispose of the property until the 03 court disposes of the court action, disposes of the property, or allows the pawnbroker 04 to dispose of the property. 05 Sec. 08.76.390. Liability of pledgor. A pledgor or seller of property to a 06 pawnbroker is liable to the pawnbroker for the full amount that the pledgor or seller 07 received from the pawnbroker, all charges owed by the pledgor for the pawnbroker 08 transaction, and attorney fees and other costs as allowed by the rules of court if, in an 09 action under AS 08.76.380, 10 (1) the superior court determines that the pledgor or seller 11 misappropriated the property from the claimant; and 12 (2) the superior court orders the pawnbroker to return the property to 13 the claimant. 14 Sec. 08.76.400. Recovery of leased property. (a) If property in the possession 15 of a pawnbroker was leased to a pledgor or seller when the pledgor or seller pledged 16 or sold the property to the pawnbroker, but the property did not have a permanent 17 label or other conspicuous mark identifying it as the lessor's property, the pawnbroker 18 shall return the property to the lessor if the lessor 19 (1) provides the pawnbroker with evidence that the property was the 20 lessor's property and was leased to the pledgor or seller at the time the property was 21 pledged or sold to the pawnbroker; and 22 (2) pays the pawnbroker 23 (A) the amount financed and the finance fee for the pawn 24 transaction, if the property was pledged to the pawnbroker; or 25 (B) the amount that the pawnbroker paid the seller if the 26 property was sold to the pawnbroker. 27 (b) A pawnbroker is not liable to the pledgor or seller of property that is 28 recovered by a lessor under (a) of this section for returning the property to a lessor 29 under (a) of this section. 30 Sec. 08.76.410. Law enforcement reports. (a) A pawnbroker shall provide a 31 law enforcement officer with a law enforcement report in paper or in an electronic

01 format on a weekly basis. 02 (b) A law enforcement report is confidential under AS 40.25.100 - 40.25.220, 03 and a law enforcement officer and a law enforcement agency may only use a law 04 enforcement report to investigate a crime involving the property that is the subject of 05 the pawnbroker transactions of the pawnbroker. 06 Sec. 08.76.420. Contents of law enforcement reports. (a) A law enforcement 07 report must contain 08 (1) a complete and accurate description of all property pledged to or 09 purchased by the pawnbroker, including, as applicable, the property's 10 (A) brand name, model number, and manufacturer's serial 11 number; and 12 (B) type of action and caliber or gauge, if the property is a 13 firearm; and 14 (2) the number of the pawnbroker transaction document that the 15 pawnbroker used to document the pawnbroker transaction. 16 (b) Notwithstanding (a) of this section, the description of the items under 17 (a)(1) of this section is adequate if the description gives the quantity of the items and 18 describes the type of the items if the pawnbroker transaction consists solely of 19 multiple items that are of a similar type, do not have serial or model numbers, and do 20 not contain precious metals or gemstones. 21 Sec. 08.76.430. Inspection by law enforcement entities. If a law enforcement 22 agency provides the case number assigned to the investigation for which the 23 inspection is being made, a pawnbroker may not refuse to allow the law enforcement 24 agency to inspect during normal business hours the pawnbroker's pawn book and the 25 purchased property involved in the investigation or the unredeemed pledged property 26 involved in the investigation. 27 Sec. 08.76.440. Discipline. (a) The department may, after notice to the licensee 28 and reasonable opportunity to be heard, take the following disciplinary action against a 29 licensee if the licensee or an officer, agent, or employee of the licensee violates 30 AS 08.76.100 - 08.76.590: 31 (1) permanently revoke a license;

01 (2) suspend a license for a specified period; 02 (3) censure or reprimand a licensee; 03 (4) impose limitations or conditions on the licensee; 04 (5) impose probation requiring a licensee to report regularly to the 05 department on matters related to the grounds for probation; 06 (6) order the licensee to make restitution. 07 (b) If the department takes disciplinary action under (a) of this section, the 08 department may not, for one year after the date of the disciplinary action, issue another 09 license to the licensee or a license to 10 (1) the spouse of the licensee; 11 (2) a partnership if the licensee is a partner of the partnership; 12 (3) a corporation if the licensee is an officer of the corporation, 13 including a member of the board of directors of the corporation; 14 (4) a limited liability company if the licensee is a member or manager 15 of the limited liability company; or 16 (5) an employee of the licensee. 17 (c) Before taking disciplinary action under (a) of this section, the department 18 shall allow a licensee 30 days to correct the violation. 19 Sec. 08.76.450. Civil penalty. If a licensee, or an officer, agent, or employee 20 of a licensee violates AS 08.76.100 - 08.76.590, the licensee is liable to the state for a 21 civil penalty. Notwithstanding AS 08.01.075(a)(8), the penalty may not be less than 22 $200 or more than $2,000. The amount of the civil penalty must be adjusted to the 23 seriousness of the violation. 24 Sec. 08.76.460. Municipal regulation. (a) Subject to (b) of this section, a 25 municipality with the authority under AS 29 to enact ordinances regulating 26 pawnbrokers and pawnbroker transactions may adopt an ordinance regulating 27 pawnbrokers and pawnbroker transactions if the ordinance complies with 28 AS 08.76.100 - 08.76.590. However, the ordinance may not be more restrictive than 29 AS 08.76.100 - 08.76.590. 30 (b) A municipality may not enact an ordinance that 31 (1) requires the payment of a fee or tax related to a pawnbroker

01 transaction; or 02 (2) restricts the hours of operation of a pawnbroker, except that an 03 ordinance may prohibit pawnbrokers from operating as provided under 04 AS 08.76.290(2). 05 (c) An ordinance that violates this section is void. 06 Sec. 08.76.470. Regulations. (a) The department may adopt regulations to 07 implement AS 08.76.100 - 08.76.590. 08 (b) Before the department adopts a regulation to implement AS 08.76.100 - 09 08.76.590, the department shall, in addition to any other requirements under AS 44.62 10 (Administrative Procedure Act), notify licensees of the proposed regulation. After the 11 regulation is adopted, the department shall send each licensee a copy of the regulation 12 adopted. 13 Sec. 08.76.500. Exemptions. This chapter does not apply to 14 (1) a financial institution that is subject to the regulation of the 15 department under AS 06, including a commercial bank, savings bank, credit union, 16 premium finance company, small loan company, bank holding company, financial 17 holding company, trust company, savings and loan association, and deferred deposit 18 advance licensee under AS 06.50; or 19 (2) a financial institution organized under federal law. 20 Sec. 08.76.590. Definitions. In AS 08.76.100 - 08.76.590, 21 (1) "amount financed" means the amount of money, excluding a 22 finance fee, charged by a pawnbroker for a pawn transaction; 23 (2) "business" includes advertising; 24 (3) "claim" means a claim under AS 08.76.370; 25 (4) "claimant" means a person who makes a claim; 26 (5) "department" means the Department of Commerce, Community, 27 and Economic Development; 28 (6) "evidentiary hold order" means an evidentiary hold order 29 authorized under AS 08.76.330; 30 (7) "finance fee" means all the amounts that a pawnbroker may charge 31 under AS 08.76.210;

01 (8) "governmental fee" means a fee imposed by a governmental 02 agency on a pawnbroker to hold or transfer a firearm or conduct a background check 03 required by the governmental agency; 04 (9) "grace period" means the 30-day period after a maturity date during 05 which a pawnbroker is required by AS 08.76.270(b) to retain possession of pledged 06 property; 07 (10) "hold order" means a police hold order or an evidentiary hold 08 order; 09 (11) "identification" means 10 (A) a government-issued identification document that contains 11 a photograph; or 12 (B) an electronic image of a document identified under (A) of 13 this paragraph; 14 (12) "knowingly" has the meaning given in AS 11.81.900; 15 (13) "law enforcement agency" means 16 (A) the police department of a municipality where a pawnshop 17 is located; 18 (B) the Department of Law; 19 (C) the Department of Public Safety; 20 (14) "law enforcement officer" means 21 (A) a police officer of the municipality where a pawnshop is 22 located; or 23 (B) a state trooper if a pawnshop is located in the unorganized 24 borough or if a pawnshop is located in a municipality that does not provide 25 police protection services; 26 (15) "law enforcement report" means a report required by 27 AS 08.76.410; 28 (16) "lease" means any form of rental; 29 (17) "license" means a license to engage in business as a pawnbroker 30 issued under AS 08.76.110; 31 (18) "licensee" means a person who holds a license;

01 (19) "maturity date" means the date by which a pledgor is required to 02 pay a pawnbroker the amount financed and the finance fee for a pawn transaction, but 03 does not include a grace period; 04 (20) "misappropriated" means pledged or sold to a pawnbroker 05 (A) after being stolen; or 06 (B) while being leased to the pledgor or seller by another 07 person if the property has a permanent label or other conspicuous mark 08 identifying it as another person's property; 09 (21) "pawn book" means the book required to be maintained by 10 AS 08.76.180; 11 (22) "pawnbroker" means a person who lends money in exchange for a 12 pledge of property; 13 (23) "pawnbroker transaction" means a pawn transaction or purchase; 14 (24) "pawn transaction" means a pledge given in exchange for a loan 15 by a pawnbroker; 16 (25) "personal property" means tangible personal property, but does 17 not include a security, a title to property, a deed, a bill of sale, or printed evidence of 18 indebtedness; 19 (26) "pledge" means a deposit of property as security for payment of 20 financial obligations to a pawnbroker in a pawn transaction; 21 (27) "pledged property" means the property that is pledged in a pawn 22 transaction; 23 (28) "pledgor" means 24 (A) a person who delivers property to a pawnbroker for a pawn 25 transaction; or 26 (B) the principal, if the person who delivers property to a 27 pawnbroker for a pawn transaction discloses that the delivery person is acting 28 for a principal; 29 (29) "police hold order" means a hold order authorized under 30 AS 08.76.320; 31 (30) "property" means personal property;

01 (31) "purchase" means a purchase of property by a pawnbroker that is 02 not a pawn transaction; 03 (32) "redeem" means to obtain the return of pledged property under 04 AS 08.76.270; 05 (33) "registration fee" means a fee for registering a firearm; 06 (34) "seller" means a person who sells property to a pawnbroker, but 07 does not include a pledgor; 08 (35) "transaction agreement" means the transaction agreement required 09 by AS 08.76.200. 10 * Sec. 6. AS 45.01.211(b) is amended by adding a new paragraph to read: 11 (47) "pawnbroker" has the meaning given in AS 08.76.590. 12 * Sec. 7. AS 08.76.010(b) and 08.76.040 are repealed. 13 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 16 Economic Development may proceed to adopt regulations under AS 08.01.080 and 17 AS 08.76.470, enacted by sec. 5 of this Act, necessary to implement this Act. The regulations 18 take effect under AS 44.62 (Administrative Procedure Act), but not before July 1, 2011. 19 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 TRANSITION: CURRENT MUNICIPAL LICENSEES. (a) Notwithstanding 22 AS 08.76.100, enacted by sec. 5 of this Act, a person who holds a current municipal license 23 on July 1, 2011, may continue to engage in business as a pawnbroker through June 30, 2014, 24 without having a license issued by the Department of Commerce, Community, and Economic 25 Development. 26 (b) Notwithstanding AS 08.76.110, enacted by sec. 5 of this Act, the department shall 27 issue a license to a person who holds a municipal license if the person 28 (1) submits, before July 1, 2014, an application as required by the department 29 under AS 08.01.060; and 30 (2) pays a fee established by the department under AS 08.01.065. 31 (c) In this section,

01 (1) "license" has the meaning given in AS 08.76.590, enacted by sec. 5 of this 02 Act; 03 (2) "municipal license" means a license that is issued by a municipality to 04 authorize a person to engage in business as a pawnbroker; in this paragraph, "business" has 05 the meaning given in AS 08.76.590, enacted by sec. 5 of this Act; 06 (3) "pawnbroker" has the meaning given in AS 08.76.590, enacted by sec. 5 of 07 this Act. 08 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 TRANSITION: EXISTING ORDINANCES. An ordinance of a municipality that is in 11 effect on July 1, 2011, and that violates AS 08.76.460, enacted by sec. 5 of this Act, is void. 12 * Sec. 11. Section 8 of this Act takes effect immediately under AS 01.10.070(c). 13 * Sec. 12. Except as provided in sec. 11 of this Act, this Act takes effect July 1, 2011.