00              HOUSE CS FOR CS FOR SENATE BILL NO. 292(FIN) am H                                                          
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                                                      
08                 (1)  pawnbrokers where separate and individual loans do not exceed                              
09       $750; in this paragraph, "pawnbroker" means a person who is regulated under                                   
10       AS 08.76.100 - 08.76.590; or                                                                                  
11                 (2)  loan shops where separate and individual loans do not exceed $500.                             
12    * Sec. 2. AS 08.01.010 is amended by adding a new paragraph to read:                                               
13                 (39)  regulation of pawnbrokers (AS 08.76.100 - 08.76.590).                                             
14    * Sec. 3. AS 08.76.010(a) is amended to read:                                                                      
01            (a)  A person engaged in the business of buying and selling secondhand                                       
02       articles, [OR LENDING MONEY ON SECONDHAND ARTICLES,] except a bank                                                
03       or a person regulated by AS 08.76.100 - 08.76.590, shall maintain a book, in                                  
04       permanent form, in which the person shall enter in legible English at the time of each                            
05       [LOAN,] purchase [,] or sale                                                                                      
06                 (1)  the date of the transaction;                                                                       
07                 (2)  the name of the person conducting the transaction;                                                 
08                 (3)  the name, age, and address of the customer;                                                    
09                 (4)  a description of the property bought [OR RECEIVED IN                                               
10       PLEDGE], which includes, for any firearm, watch, camera, or optical equipment                                 
11       bought [OR RECEIVED IN PLEDGE], the name of the maker, the serial, model, or                                      
12       other number, and all letters and marks inscribed;                                                                
13                 (5)  the price paid [OR AMOUNT LOANED];                                                                 
14                 (6)  the signature of the customer.                                                                     
15    * Sec. 4. AS 08.76.020 is amended to read:                                                                         
16            Sec. 08.76.020. Manner of recording entry. The entries in the book [AND                                    
17       THE ELECTRONIC RECORD] required by AS 08.76.010 shall appear in                                                   
18       chronological order [AND, WHEN MADE IN A BOOK,] in ink or indelible pencil.                                       
19       Blank lines may not be left between entries. Obliterations, alterations, or erasures may                          
20       not be made. Corrections shall be made by drawing a line through the entry without                                
21       destroying its legibility, and [, WHEN MADE IN A BOOK,] the line shall be drawn in                                
22       ink. The book shall be open to the inspection of a peace officer at reasonable times.                           
23    * Sec. 5. AS 08.76 is amended by adding new sections to read:                                                      
24               Article 2. Licensing and Regulation of Pawnbrokers.                                                     
25            Sec. 08.76.100. Licensing required. (a) A person may not engage in business                                
26       as a pawnbroker without holding a license issued by the department.                                               
27            (b)  A license is not transferable or assignable.                                                            
28            Sec. 08.76.110. Requirements for license. The department may issue a license                               
29       to a person if the person                                                                                         
30                 (1)  has good character;                                                                                
31                 (2)  has the experience to engage in business as a pawnbroker;                                          
01                 (3)  is fit to engage in business as a pawnbroker;                                                      
02                 (4)  submits an application as required by the department under                                         
03       AS 08.01.060; and                                                                                                 
04                 (5)  pays a fee established by the department under AS 08.01.065.                                       
05            Sec. 08.76.130. Withdrawal of application. The department may consider                                     
06       that a person has withdrawn the person's application for a license if                                             
07                 (1)  the application does not contain all of the required information; or                               
08                 (2)  the information required for the application is not submitted to the                               
09       department within 90 days after the department requests in writing that the person                                
10       provide the department with the information.                                                                      
11            Sec. 08.76.140. Duration and renewal of license. (a) A license is valid for                              
12       two years.                                                                                                        
13            (b)  A person may renew a license under AS 08.01.100. The renewal fee must                                   
14       be equal to the fee established under AS 08.76.110(5).                                                            
15            (c)  Notwithstanding AS 08.01.100(b), if a person fails to renew a license                                   
16       before the expiration date of the license, the person shall pay the department a delayed                          
17       renewal penalty of $100 in addition to the regular renewal fee.                                                   
18            (d)  If a person fails to renew the person's license, the person may not engage                              
19       in business as a pawnbroker until the person's license is renewed or a new license is                             
20       issued.                                                                                                           
21            (e)  The department may refuse to renew a license under this section for                                     
22       reasons that would have prevented the issuance of the license to the person under                                 
23       AS 08.76.110.                                                                                                     
24            Sec. 08.76.160. Limit on pawn transaction amount. A licensee may not enter                                 
25       into a pawn transaction that exceeds $750, excluding the finance fee and any fees                                 
26       charged under AS 08.76.220.                                                                                     
27            Sec. 08.76.170. Customer and transaction limitations. (a) A pawnbroker                                     
28       may not knowingly enter into a pawnbroker transaction with a person who is                                        
29                 (1)  under 18 years of age;                                                                             
30                 (2)  under the influence of alcohol or a controlled substance when the                                  
31       influence is apparent; or                                                                                         
01                 (3)  using the name of another person.                                                                  
02            (b)  A pawnbroker may not knowingly accept or receive misappropriated                                        
03       property from a person in a pawnbroker transaction.                                                               
04            Sec. 08.76.180. Register of pawnbroker transactions. (a) A pawnbroker                                      
05       shall maintain a register in which the pawnbroker shall enter in legible English at the                           
06       time of each pawnbroker transaction                                                                               
07                 (1)  the date of the pawnbroker transaction;                                                            
08                 (2)  the name of the person conducting the pawnbroker transaction;                                      
09                 (3)  the name, age, and address of the pledgor or purchaser;                                            
10                 (4)  a description of the pledged property or purchased property,                                       
11       including the serial number, model number, or other number on the item of 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 register may be contained in a book or in an electronic format, except                                
18       that, subject to (c) of this section, the register for pawn transactions must be in an                            
19       electronic format.                                                                                                
20            (c)  If, on the effective date of this section, a pawnbroker is located in a                                 
21       municipality that has a population of 6,000 or fewer individuals, the pawnbroker's                                
22       register for pawn transactions may be contained in a book.                                                        
23            (d)  A pawnbroker may not falsify or intentionally fail to make an entry of a                                
24       material matter in a register.                                                                                    
25            (e)  A pawnbroker shall maintain in good condition the record in the register of                             
26       a completed pawnbroker transaction for one year after the completion of the                                       
27       pawnbroker transaction.                                                                                           
28            Sec. 08.76.190. Recording requirements. The records required to be                                         
29       maintained in a register by AS 08.76.180 must appear in chronological order and, if                               
30       made in a book, in ink or indelible pencil. Blank lines may not be left between entries.                          
31       A pawnbroker may not change a record in a register by obliteration, alteration, or                                
01       erasure. A pawnbroker may correct a record in a register by drawing a line through the                            
02       entry without destroying its legibility.                                                                          
03            Sec. 08.76.200. Transaction agreement. A pawnbroker shall provide to a                                     
04       pledgor or seller a copy of the transaction agreement between the pawnbroker and the                              
05       pledgor or seller. The agreement must clearly and conspicuously disclose                                          
06                 (1)  the name and address of the pawnbroker and the name and mailing                                    
07       address of the pledgor or seller;                                                                                 
08                 (2)  the date of the transaction;                                                                       
09                 (3)  a description of the item sold or pledged;                                                         
10                 (4)  the amount of each fee charged under AS 08.76.210 and 08.76.220;                                   
11                 (5)  if the transaction is a pawn transaction, the amount financed and                                  
12       the maturity date; and                                                                                            
13                 (6)  if the transaction is a purchase by the pawnbroker, the amount of                                  
14       the purchase price.                                                                                               
15            Sec. 08.76.210. Finance fee. (a) Except as provided in AS 08.76.280, for each                              
16       30-day period of a pawn transaction, including a grace period, a pawnbroker may                                   
17       charge a pledgor a finance fee of $5 or an amount that equals interest at a rate that                             
18       does not exceed 20 percent of the amount financed, whichever amount is greater.                                   
19            (b)  A finance fee is considered to be earned on the day that the pawn                                       
20       transaction is entered into and on the first day of each subsequent 30-day period of the                          
21       pawn transaction.                                                                                                 
22            Sec. 08.76.220. Other charges allowed. (a) Except as provided in                                           
23       AS 08.76.280, a pawnbroker may charge a processing fee of not more than $5 for each                               
24       pawn transaction for preparing and processing the pawn transaction documentation,                                 
25       providing law enforcement reports, paying expenses, providing other services, and for                             
26       losses.                                                                                                           
27            (b)  A pawnbroker may charge a pledgor who places a firearm with the                                         
28       pawnbroker as pledged property                                                                                    
29                 (1)  a firearm processing fee of not more than $5; and                                                  
30                 (2)  a governmental fee.                                                                                
31            Sec. 08.76.230. Insurance. A pawnbroker may not sell to a pledgor or                                       
01       otherwise charge a pledgor for insurance in connection with a pawn transaction,                                   
02       except to cover the shipment of pledged property that is redeemed by mail.                                        
03            Sec. 08.76.240. Return of pledged property. A pawnbroker shall return                                      
04       pledged property to a pledgor when the pledgor redeems the pledged property. The                                  
05       pawnbroker shall provide the pledgor with a receipt showing the redemption. The                                   
06       receipt must be on a form approved by the department.                                                             
07            Sec. 08.76.250. Extension of grace period. A pawnbroker and a pledgor may                                  
08       agree to extend the 30-day grace period allowed under AS 08.76.270(b), but each                                   
09       extension may not exceed 30 days. An extension must be in writing, and the                                        
10       pawnbroker shall give the pledgor a copy of the extension agreement. The agreement                                
11       must clearly state the last day of the extension and the finance fee charged for the                              
12       extension.                                                                                                        
13            Sec. 08.76.260. Retention, storage, and lease. A pawnbroker shall store                                    
14       pledged property in a secure area and maintain the pledged property in an unaltered                               
15       condition. A pawnbroker may not lease pledged property.                                                           
16            Sec. 08.76.270. Redemption. (a) Unless there is a hold order on the pledged                                
17       property, the pledged property is subject to a claim under AS 08.76.370 or 08.76.380,                             
18       or the property is returned to a lessor under AS 08.76.400, a pledgor may redeem                                  
19       pledged property by paying the amount financed and the finance fee in full before the                             
20       pawnbroker's scheduled closing time on the maturity date.                                                         
21            (b)  If a pledgor does not pay the amount financed and the finance fee in full                               
22       before the pawnbroker's scheduled closing time on the maturity date, the pawnbroker                               
23       shall hold the pledged property on the pawnbroker's business premises for a grace                                 
24       period of 30 days plus any extension allowed under AS 08.76.250. A pledgor may                                    
25       redeem the pledged property during the actual grace period by paying the amount                                   
26       financed and the finance fee, but a pledgor may not redeem pledged property after the                             
27       pawnbroker's scheduled closing time on the last day of the actual grace period. In this                           
28       subsection, "actual grace period" means the grace period plus any extension allowed                               
29       under AS 08.76.250.                                                                                               
30            (c)  If there is a hold order on pledged property, the pledgor may redeem the                                
31       pledged property only when the hold order is released.                                                            
01            (d)  If pledged property is subject to a claim under AS 08.76.370 or 08.76.380,                              
02       the pledgor may redeem the pledged property only when the pledged property                                        
03       becomes available under AS 08.76.370 or 08.76.380 for redemption.                                                 
04            (e)  If a pledgor does not redeem pledged property under (a) - (d) of this                                   
05       section, the title and all interest in the pledged property transfer to the pawnbroker.                           
06            (f)  The holder of a transaction agreement is presumed to be the person who is                               
07       entitled to redeem the pledged property that is the subject of the transaction                                    
08       agreement, and a pawnbroker shall deliver the pledged property to the person who                                  
09       presents the transaction agreement and pays the amount financed and the finance fee                               
10       for the pawn transaction.                                                                                         
11            Sec. 08.76.280. Military personnel. A pawnbroker shall waive the unpaid                                    
12       amount financed and the finance fee due on a pawn transaction and hold, except as                                 
13       provided in AS 08.76.320 - 08.76.380, the pledged property that is the subject of the                             
14       pawn transaction on the pawnbroker's business premises until 60 days after the                                    
15       pledgor, the pledgor's spouse, or the pledgor's dependent returns to the United States,                           
16       if the pawnbroker receives a copy of military orders indicating that                                              
17                 (1)  the pledgor, or the pledgor's spouse or dependent, is enlisted in the                              
18       military service of a state or the federal government; and                                                        
19                 (2)  after the pawn transaction was entered into, the person was or is to                               
20       be deployed abroad for service relating to a military conflict.                                                   
21            Sec. 08.76.290. Business operation method and hours. A pawnbroker may                                      
22       not engage in the business of being a pawnbroker                                                                  
23                 (1)  by using a method, including a drive-through window, in which a                                    
24       person remains in a motor vehicle while conducting the pawnbroker transaction; or                                 
25                 (2)  between the hours of 12 midnight and 6:00 a.m.                                                     
26            Sec. 08.76.300. Waiver prohibited. A pawnbroker may not require or allow a                                 
27       person to waive a provision of AS 08.76.100 - 08.76.590.                                                          
28            Sec. 08.76.310. Employees. A pawnbroker may not knowingly employ a                                         
29       person to work in a pawnshop if, within five years before the employment begins, the                              
30       person was convicted of, entered a plea of guilty to, entered a plea of no contest to, or                         
31       had adjudication withheld for a felony, or for a misdemeanor involving dishonesty.                                
01            Sec. 08.76.320. Issuance of police hold order. (a) When a law enforcement                                  
02       officer has probable cause to believe that property in the possession of a pawnbroker                             
03       at a pawnshop in the law enforcement officer's jurisdiction has been misappropriated,                             
04       the law enforcement officer may issue a police hold order that directs the pawnbroker                             
05       not to release or dispose of the property until the police hold order terminates or a                             
06       court orders the release or disposal.                                                                             
07            (b)  Unless a pawnbroker or the pawnbroker's designee refuses to sign the                                    
08       police hold order, a police hold order begins when the pawnbroker or the pawnbroker's                             
09       designee receives the police hold order. If the pawnbroker or the pawnbroker's                                    
10       designee refuses to sign the police hold order, the police hold order begins when the                             
11       refusal occurs.                                                                                                   
12            Sec. 08.76.330. Evidentiary hold order. (a) When property in the possession                                
13       of the pawnbroker may be needed as evidence in a filed court action involving a                                   
14       criminal charge, a law enforcement agency may issue an evidentiary hold order to a                                
15       pawnbroker that directs the pawnbroker not to release or dispose of the property until                            
16       the evidentiary hold order terminates or a court orders the release or disposal.                                  
17            (b)  A pawnbroker who receives an evidentiary hold order under (a) of this                                   
18       section shall hold the property until the attorney general notifies the pawnbroker in                             
19       writing of the disposition of the filed court action. The attorney general shall notify the                       
20       pawnbroker within 15 days after the disposition of the filed court action for which the                           
21       property may be needed as evidence.                                                                               
22            Sec. 08.76.340. Contents and form of hold order. A hold order must be in                                   
23       writing and contain                                                                                               
24                 (1)  the name of the pawnbroker;                                                                        
25                 (2)  if a police hold order, the name, title, and identification number of                              
26       the law enforcement officer issuing the police hold order, and the name and address of                            
27       the law enforcement agency for which the law enforcement officer is acting;                                       
28                 (3)  if an evidentiary hold order, the name and address of the law                                      
29       enforcement agency issuing the evidentiary hold order;                                                            
30                 (4)  the number, if any, assigned by the law enforcement agency to the                                  
31       case, and, for an evidentiary hold order, the number and caption of the filed court                               
01       action;                                                                                                           
02                 (5)  a complete description of the property being held, including the                                   
03       model number and serial number, if any;                                                                           
04                 (6)  if a police hold order, the name of the person, if any, who reported                               
05       the property as misappropriated;                                                                                  
06                 (7)  the mailing address of the pawnshop where the property is being                                    
07       held; and                                                                                                         
08                 (8)  the expiration date of the hold order.                                                             
09            Sec. 08.76.350. Duration of police hold order. (a) A police hold order may                                 
10       not exceed 30 days. However, a law enforcement officer may extend the police hold                                 
11       order for two additional successive 30-day periods by giving written notification to the                          
12       pawnbroker before the expiration of each 30-day period.                                                           
13            (b)  A law enforcement agency may not issue a new police hold order for the                                  
14       same property after the second additional 30-day period allowed under this section.                               
15       However, the termination of the police hold order does not affect an existing                                     
16       evidentiary hold order on the same property or prevent the issuance of an evidentiary                             
17       hold order for the same property.                                                                                 
18            (c)  A law enforcement agency may release a police hold order before the end                                 
19       of a 30-day period by issuing a written release to the pawnbroker.                                                
20            Sec. 08.76.360. Noncompliance with hold order. The department may                                          
21       suspend or revoke a pawnbroker's license if the pawnbroker knowingly fails to comply                              
22       with a hold order.                                                                                                
23            Sec. 08.76.370. Claim notification. (a) If a person believes that property in the                          
24       possession of a pawnbroker was misappropriated from the person, and if the person                                 
25       wants to obtain possession of the property from the pawnbroker, the person shall first                            
26       notify the pawnbroker by certified mail, return receipt requested, of the person's claim.                         
27            (b)  A notice under (a) of this section must contain a complete and accurate                                 
28       description of the property and must be accompanied by proof that the claimant owns                               
29       the property and, if the claimant alleges that the property was stolen, a legible copy of                         
30       a law enforcement agency's report indicating that the property was stolen.                                        
31            (c)  Except as provided in AS 08.76.380, a pawnbroker may not, for 30 days                                   
01       after the pawnbroker receives notice of the claim under this section, dispose of                                  
02       property that is the subject of a claim.                                                                          
03            Sec. 08.76.380. Court action on claim. If a claimant and a pawnbroker do not                               
04       resolve a claim within 10 days after the pawnbroker's receipt of a notice of the claim                            
05       under AS 08.76.370, the claimant may bring an action in superior court to require the                             
06       pawnbroker to return the property to the claimant. After a pawnbroker is notified that a                          
07       court action has been filed, the pawnbroker may not dispose of the property until the                             
08       court disposes of the court action, disposes of the property, or allows the pawnbroker                            
09       to dispose of the property.                                                                                       
10            Sec. 08.76.390. Liability of pledgor. A pledgor or seller of property to a                                 
11       pawnbroker is liable to the pawnbroker for the full amount that the pledgor or seller                             
12       received from the pawnbroker, all charges owed by the pledgor for the pawnbroker                                  
13       transaction, and attorney fees and other costs as allowed by the rules of court if, in an                         
14       action under AS 08.76.380,                                                                                        
15                 (1)  the superior court determines that the pledgor or seller                                           
16       misappropriated the property from the claimant; and                                                               
17                 (2)  the superior court orders the pawnbroker to return the property to                                 
18       the claimant.                                                                                                     
19            Sec. 08.76.400. Recovery of leased property. (a) If property in the possession                             
20       of a pawnbroker was leased to a pledgor or seller when the pledgor or seller pledged                              
21       or sold the property to the pawnbroker, but the property did not have a permanent                                 
22       label or other conspicuous mark identifying it as the lessor's property, the pawnbroker                           
23       shall return the property to the lessor if the lessor                                                             
24                 (1)  provides the pawnbroker with evidence that the property was the                                    
25       lessor's property and was leased to the pledgor or seller at the time the property was                            
26       pledged or sold to the pawnbroker; and                                                                            
27                 (2)  pays the pawnbroker                                                                                
28                      (A)  the amount financed and the finance fee for the pawn                                          
29            transaction, if the property was pledged to the pawnbroker; or                                               
30                      (B)  the amount that the pawnbroker paid the seller if the                                         
31            property was sold to the pawnbroker.                                                                         
01            (b)  A pawnbroker is not liable to the pledgor or seller of property that is                                 
02       recovered by a lessor under (a) of this section for returning the property to a lessor                            
03       under (a) of this section.                                                                                        
04            Sec. 08.76.410. Law enforcement reports. (a) A pawnbroker shall provide a                                  
05       law enforcement officer with a law enforcement report in paper or in an electronic                                
06       format on a weekly basis.                                                                                         
07            (b)  A law enforcement report is confidential under AS 40.25.100 - 40.25.220,                                
08       and a law enforcement officer and a law enforcement agency may only use a law                                     
09       enforcement report to investigate a crime involving the property that is the subject of                           
10       the pawnbroker transactions of the pawnbroker.                                                                    
11            Sec. 08.76.420. Contents of law enforcement reports. (a) A law enforcement                                 
12       report must contain                                                                                               
13                 (1)  a complete and accurate description of all property pledged to or                                  
14       purchased by the pawnbroker, including, as applicable, the property's                                             
15                      (A)  brand name, model number, and manufacturer's serial                                           
16            number; and                                                                                                  
17                      (B)  type of action and caliber or gauge, if the property is a                                     
18            firearm; and                                                                                                 
19                 (2)  the number of the pawnbroker transaction document that the                                         
20       pawnbroker used to document the pawnbroker transaction.                                                           
21            (b)  Notwithstanding (a) of this section, the description of the items under                                 
22       (a)(1) of this section is adequate if the description gives the quantity of the items and                         
23       describes the type of the items if the pawnbroker transaction consists solely of                                  
24       multiple items that are of a similar type, do not have serial or model numbers, and do                            
25       not contain precious metals or gemstones.                                                                         
26            Sec. 08.76.430. Inspection by law enforcement entities. If a law enforcement                               
27       agency provides the case number assigned to the investigation for which the                                       
28       inspection is being made, a pawnbroker may not refuse to allow the law enforcement                                
29       agency to inspect during normal business hours the pawnbroker's register and the                                  
30       purchased property involved in the investigation or the unredeemed pledged property                               
31       involved in the investigation.                                                                                  
01            Sec. 08.76.440. Discipline. (a) The department may, after notice to the licensee                           
02       and reasonable opportunity to be heard, take the following disciplinary action against a                          
03       licensee if the licensee or an officer, agent, or employee of the licensee violates                               
04       AS 08.76.100 - 08.76.590:                                                                                         
05                 (1)  permanently revoke a license;                                                                      
06                 (2)  suspend a license for a specified period;                                                          
07                 (3)  censure or reprimand a licensee;                                                                   
08                 (4)  impose limitations or conditions on the licensee;                                                  
09                 (5)  impose probation requiring a licensee to report regularly to the                                   
10       department on matters related to the grounds for probation;                                                       
11                 (6)  order the licensee to make restitution.                                                            
12            (b)  If the department takes disciplinary action under (a) of this section, the                              
13       department may not, for one year after the date of the disciplinary action, issue another                         
14       license to the licensee or a license to                                                                           
15                 (1)  the spouse of the licensee;                                                                        
16                 (2)  a partnership if the licensee is a partner of the partnership;                                     
17                 (3)  a corporation if the licensee is an officer of the corporation,                                    
18       including a member of the board of directors of the corporation;                                                  
19                 (4)  a limited liability company if the licensee is a member or manager                                 
20       of the limited liability company; or                                                                              
21                 (5)  an employee of the licensee.                                                                       
22            (c)  Before taking disciplinary action under (a) of this section, the department                             
23       shall allow a licensee 30 days to correct the violation.                                                          
24            Sec. 08.76.450. Civil penalty. If a licensee, or an officer, agent, or employee                            
25       of a licensee violates AS 08.76.100 - 08.76.590, the licensee is liable to the state for a                        
26       civil penalty. Notwithstanding AS 08.01.075(a)(8), the penalty may not be less than                               
27       $200 or more than $2,000. The amount of the civil penalty must be adjusted to the                                 
28       seriousness of the violation.                                                                                     
29            Sec. 08.76.460. Municipal regulation. (a) Subject to (b) of this section, a                                
30       municipality with the authority under AS 29 to enact ordinances regulating                                        
31       pawnbrokers and pawnbroker transactions may adopt an ordinance regulating                                         
01       pawnbrokers and pawnbroker transactions if at a minimum the ordinance complies                                    
02       with AS 08.76.100 - 08.76.590.                                                                                    
03            (b)  A municipality may not enact an ordinance that                                                          
04                 (1)  requires the payment of a fee or tax related to a pawnbroker                                       
05       transaction; or                                                                                                   
06                 (2)  restricts the hours of operation of a pawnbroker, except that an                                   
07       ordinance may prohibit pawnbrokers from operating as provided under                                               
08       AS 08.76.290(2).                                                                                                  
09            (c)  An ordinance that violates this section is void.                                                        
10            Sec. 08.76.470. Regulations. (a) The department may adopt regulations to                                 
11       implement AS 08.76.100 - 08.76.590.                                                                               
12            (b)  Before the department adopts a regulation to implement AS 08.76.100 -                                   
13       08.76.590, the department shall, in addition to any other requirements under AS 44.62                             
14       (Administrative Procedure Act), notify licensees of the proposed regulation. After the                            
15       regulation is adopted, the department shall send each licensee a copy of the regulation                           
16       adopted.                                                                                                          
17            Sec. 08.76.500. Exemptions. This chapter does not apply to                                                 
18                 (1)  a financial institution that is subject to the regulation of the                                   
19       department under AS 06, including a commercial bank, savings bank, credit union,                                  
20       premium finance company, small loan company, bank holding company, financial                                      
21       holding company, trust company, savings and loan association, and deferred deposit                                
22       advance licensee under AS 06.50; or                                                                               
23                 (2)  a financial institution organized under federal law.                                               
24            Sec. 08.76.590. Definitions. In AS 08.76.100 - 08.76.590,                                                  
25                 (1)  "amount financed" means the amount of money, excluding a                                           
26       finance fee, charged by a pawnbroker for a pawn transaction;                                                      
27                 (2)  "business" includes advertising;                                                                   
28                 (3)  "claim" means a claim under AS 08.76.370;                                                          
29                 (4)  "claimant" means a person who makes a claim;                                                       
30                 (5)  "department" means the Department of Commerce, Community,                                          
31       and Economic Development;                                                                                         
01                 (6)  "evidentiary hold order" means an evidentiary hold order                                           
02       authorized under AS 08.76.330;                                                                                    
03                 (7)  "finance fee" means all the amounts that a pawnbroker may charge                                   
04       under AS 08.76.210;                                                                                               
05                 (8)  "governmental fee" means a fee imposed by a governmental                                           
06       agency on a pawnbroker to hold or transfer a firearm or conduct a background check                                
07       required by the governmental agency;                                                                              
08                 (9)  "grace period" means the 30-day period after a maturity date during                                
09       which a pawnbroker is required by AS 08.76.270(b) to retain possession of pledged                                 
10       property;                                                                                                         
11                 (10)  "hold order" means a police hold order or an evidentiary hold                                     
12       order;                                                                                                            
13                 (11)  "identification" means                                                                            
14                      (A)  a government-issued identification document that contains                                     
15            a photograph; or                                                                                             
16                      (B)  an electronic image of a document identified under (A) of                                     
17            this paragraph;                                                                                              
18                 (12)  "knowingly" has the meaning given in AS 11.81.900;                                                
19                 (13)  "law enforcement agency" means                                                                    
20                      (A)  the police department of a municipality where a pawnshop                                      
21            is located;                                                                                                  
22                      (B)  the Department of Law;                                                                        
23                      (C)  the Department of Public Safety;                                                              
24                 (14)  "law enforcement officer" means                                                                   
25                      (A)  a police officer of the municipality where a pawnshop is                                      
26            located; or                                                                                                  
27                      (B)  a state trooper if a pawnshop is located in the unorganized                                   
28            borough or if a pawnshop is located in a municipality that does not provide                                  
29            police protection services;                                                                                  
30                 (15)  "law enforcement report" means a report required by                                               
31       AS 08.76.410;                                                                                                     
01                 (16)  "lease" means any form of rental;                                                                 
02                 (17)  "license" means a license to engage in business as a pawnbroker                                   
03       issued under AS 08.76.110;                                                                                        
04                 (18)  "licensee" means a person who holds a license;                                                    
05                 (19)  "maturity date" means the date by which a pledgor is required to                                  
06       pay a pawnbroker the amount financed and the finance fee for a pawn transaction, but                              
07       does not include a grace period;                                                                                  
08                 (20)  "misappropriated" means pledged or sold to a pawnbroker                                           
09                      (A)  after being stolen; or                                                                        
10                      (B)  while being leased to the pledgor or seller by another                                        
11            person if the property has a permanent label or other conspicuous mark                                       
12            identifying it as another person's property;                                                                 
13                 (21)  "pawnbroker" means a person who lends money in exchange for a                                     
14       pledge of property;                                                                                               
15                 (22)  "pawnbroker transaction" means a pawn transaction or purchase;                                    
16                 (23)  "pawn transaction" means a pledge given in exchange for a loan                                    
17       by a pawnbroker;                                                                                                  
18                 (24)  "personal property" means tangible personal property, but does                                    
19       not include a security, a title to property, a deed, a bill of sale, or printed evidence of                       
20       indebtedness;                                                                                                     
21                 (25)  "pledge" means a deposit of property as security for payment of                                   
22       financial obligations to a pawnbroker in a pawn transaction;                                                      
23                 (26)  "pledged property" means the property that is pledged in a pawn                                   
24       transaction;                                                                                                      
25                 (27)  "pledgor" means                                                                                   
26                      (A)  a person who delivers property to a pawnbroker for a pawn                                     
27            transaction; or                                                                                              
28                      (B)  the principal, if the person who delivers property to a                                       
29            pawnbroker for a pawn transaction discloses that the delivery person is acting                               
30            for a principal;                                                                                             
31                 (28)  "police hold order" means a hold order authorized under                                           
01       AS 08.76.320;                                                                                                     
02                 (29)  "property" means personal property;                                                               
03                 (30)  "purchase" means a purchase of property by a pawnbroker that is                                   
04       not a pawn transaction;                                                                                           
05                 (31)  "redeem" means to obtain the return of pledged property under                                     
06       AS 08.76.270;                                                                                                     
07                 (32)  "register" means the register required to be maintained by                                        
08       AS 08.76.180;                                                                                                     
09                 (33)  "registration fee" means a fee for registering a firearm;                                         
10                 (34)  "seller" means a person who sells property to a pawnbroker, but                                   
11       does not include a pledgor;                                                                                       
12                 (35)  "transaction agreement" means the transaction agreement required                                  
13       by AS 08.76.200.                                                                                                  
14    * Sec. 6. AS 45.01.211(b) is amended by adding a new paragraph to read:                                            
15                 (47)  "pawnbroker" has the meaning given in AS 08.76.590.                                             
16    * Sec. 7. AS 08.76.010(b) and 08.76.040 are repealed.                                                              
17    * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to                          
18 read:                                                                                                                   
19       TRANSITION: REGULATIONS. The Department of Commerce, Community, and                                               
20 Economic Development may proceed to adopt regulations under AS 08.01.080 and                                            
21 AS 08.76.470, enacted by sec. 5 of this Act, necessary to implement this Act. The regulations                           
22 take effect under AS 44.62 (Administrative Procedure Act), but not before July 1, 2011.                                 
23    * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to                          
24 read:                                                                                                                   
25       TRANSITION: CURRENT MUNICIPAL LICENSEES. (a) Notwithstanding                                                      
26 AS 08.76.100, enacted by sec. 5 of this Act, a person who holds a current municipal license                             
27 on July 1, 2011, may continue to engage in business as a pawnbroker through June 30, 2014,                              
28 without having a license issued by the Department of Commerce, Community, and Economic                                  
29 Development.                                                                                                            
30       (b)  Notwithstanding AS 08.76.110, enacted by sec. 5 of this Act, the department shall                            
31 issue a license to a person who holds a municipal license if the person                                                 
01            (1)  submits, before July 1, 2014, an application as required by the department                              
02 under AS 08.01.060; and                                                                                                 
03            (2)  pays a fee established by the department under AS 08.01.065.                                            
04       (c)  In this section,                                                                                             
05            (1)  "license" has the meaning given in AS 08.76.590, enacted by sec. 5 of this                              
06 Act;                                                                                                                    
07            (2)  "municipal license" means a license that is issued by a municipality to                                 
08 authorize a person to engage in business as a pawnbroker; in this paragraph, "business" has                             
09 the meaning given in AS 08.76.590, enacted by sec. 5 of this Act;                                                       
10            (3)  "pawnbroker" has the meaning given in AS 08.76.590, enacted by sec. 5 of                                
11 this Act.                                                                                                               
12    * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to                         
13 read:                                                                                                                   
14       TRANSITION: EXISTING ORDINANCES. An ordinance of a municipality that is in                                        
15 effect on July 1, 2011, and that does not comply with AS 08.76.100 - 08.76.590, enacted by                              
16 sec. 5 of this Act, is void.                                                                                            
17    * Sec. 11. Section 8 of this Act takes effect immediately under AS 01.10.070(c).                                   
18    * Sec. 12. Except as provided in sec. 11 of this Act, this Act takes effect July 1, 2011.