Legislature(2009 - 2010)BELTZ 105 (TSBldg)
03/29/2010 01:30 PM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| SB297 | |
| HB319 | |
| SB63 | |
| SJR28 | |
| SB292 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | SB 292 | TELECONFERENCED | |
| += | HB 101 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 63 | ||
| = | SJR 28 | ||
| = | SB 297 | ||
| = | HB 319 | ||
SB 292-PAWNBROKERS
2:51:56 PM
CHAIR FRENCH announced the consideration of SB 292.
JOSH TEMPEL, Staff, to Senator Huggins, sponsor, said SB 292
would create a statewide standard for regulating pawnbrokers.
Basically, it will codify what good pawnshops are already doing
thereby providing Alaska consumers and businesses with further
protection. This effort started four years ago and has generated
a lot of interest.
MR. TEMPEL explained that pawnshops loan money on items that a
person brings in and leaves as collateral. The person redeems
their collateral item by paying off the loan plus a little
interest. The bill establishes that pawnbrokers would be
licensed under the Department of Commerce, Community and
Economic Development and it places a few restricts on pawnbroker
transactions. For example, a pawnbroker may not enter a
pawnbroker transaction with a person who is 1) under age 18; 2)
under the influence of alcohol or a controlled substance; 3)
without proper identification; and 4) pawning stolen property.
Furthermore, pawnbrokers would be required to maintain a written
or electronic log of each transaction for a period of one year
after the transaction is complete. The pawnbroker must give the
pledgor a receipt for the item and a copy of the transaction
agreement.
SB 292 places restrictions on the interest and fees that a
pawnbroker may charge and requires pawnbrokers to safely store
any items used as collateral. It also offers guidelines for
people who aren't able to repay their loan in the appropriate
amount of time including a 30-day grace period. If a service
member pawns an item and then deploys, the interest on the item
is frozen until the service member returns. At that time the
original agreement becomes active.
MR. TEMPEL said the bill requires that employees of pawnshops
are of good character and it offers guidelines to both police
and property owners when they find stolen property in a
pawnshop. Pawnbrokers are required to conduct a weekly inventory
and report to local law enforcement agencies. Pawnbrokers may be
disciplined if they don't adhere to these requirements.
MR. TEMPEL reiterated that good pawnbrokers already do these
things. The bill has support and it's good for consumers and
businesses in Alaska.
2:56:47 PM
SENATOR WIELECHOWSKI observed that page 1, line 14, removes
current language about a person lending money on secondhand
articles.
MR. TEMPEL explained that the bill aims to exclusively regulate
pawnbrokers so pawnbrokers will no longer be associated with
regulations for secondhand stores and used bookstores.
SENATOR WIELECHOWSKI questioned the impact of this proposed
change.
MR. TEMPEL replied the bill has no impact on individuals who
deal in secondhand articles; it relates specifically to
pawnbrokers He offered to provide information on the separate
regulations governing secondhand stores.
2:58:16 PM
SENATOR WIELECHOWSKI said he'd appreciate that information. He
then asked the impact of removing the phrase "and the electronic
record" from page 2, lines 14-15.
MR. TEMPEL replied it cleans up the language; both the
electronic record and the book in which entries are made are
addressed later in the statute.
SENATOR WIELECHOWSKI asked if there would still be a requirement
to record entries electronically.
MR. TEMPEL replied that's correct; the bill adds sections to
separately regulate pawnbrokers, starting with the new Sec.
08.76.100.
CHAIR FRENCH said he'd like to take public testimony today and
Mr. Tempel would be asked to return to give an in-depth analysis
of the provisions at a future hearing.
3:00:06 PM
FERNANDO PENNIA, Government Affairs Director, Cash America, said
he is pleased to speak in support of SB 292. This bill will
provide a regulatory framework for the operation of pawnshops in
Alaska, five of which are operated by Cash America in Anchorage.
Alaska is the only state that does not have comprehensive,
statewide regulation of pawnshops. The bill addresses this
deficit and will provide protection for consumers and
businesses. SB 292 is proactive and seeks to protect pawnshop
owners and their customers who are currently vulnerable to
unforeseen circumstances that could affect the industry.
CHAIR FRENCH closed public testimony and held SB 292 in
committee.
| Document Name | Date/Time | Subjects |
|---|