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HCS CSSB 292(FIN): "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 HOUSE CS FOR CS FOR SENATE BILL NO. 292(FIN) 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 the register for pawn transactions must be in an electronic format if the 19 pawnbroker is located in a municipality that has a population of more than 5,000. 20 (c) A pawnbroker may not falsify or intentionally fail to make an entry of a 21 material matter in a register. 22 (d) A pawnbroker shall maintain in good condition the record in the register of 23 a completed pawnbroker transaction for one year after the completion of the 24 pawnbroker transaction. 25 Sec. 08.76.190. Recording requirements. The records required to be 26 maintained in a register by AS 08.76.180 must appear in chronological order and, if 27 made in a book, in ink or indelible pencil. Blank lines may not be left between entries. 28 A pawnbroker may not change a record in a register by obliteration, alteration, or 29 erasure. A pawnbroker may correct a record in a register by drawing a line through the 30 entry without destroying its legibility. 31 Sec. 08.76.200. Transaction agreement. A pawnbroker shall provide to a

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

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

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

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

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

01 resolve a claim within 10 days after the pawnbroker's receipt of a notice of the claim 02 under AS 08.76.370, the claimant may bring an action in superior court to require the 03 pawnbroker to return the property to the claimant. After a pawnbroker is notified that a 04 court action has been filed, the pawnbroker may not dispose of the property until the 05 court disposes of the court action, disposes of the property, or allows the pawnbroker 06 to dispose of the property. 07 Sec. 08.76.390. Liability of pledgor. A pledgor or seller of property to a 08 pawnbroker is liable to the pawnbroker for the full amount that the pledgor or seller 09 received from the pawnbroker, all charges owed by the pledgor for the pawnbroker 10 transaction, and attorney fees and other costs as allowed by the rules of court if, in an 11 action under AS 08.76.380, 12 (1) the superior court determines that the pledgor or seller 13 misappropriated the property from the claimant; and 14 (2) the superior court orders the pawnbroker to return the property to 15 the claimant. 16 Sec. 08.76.400. Recovery of leased property. (a) If property in the possession 17 of a pawnbroker was leased to a pledgor or seller when the pledgor or seller pledged 18 or sold the property to the pawnbroker, but the property did not have a permanent 19 label or other conspicuous mark identifying it as the lessor's property, the pawnbroker 20 shall return the property to the lessor if the lessor 21 (1) provides the pawnbroker with evidence that the property was the 22 lessor's property and was leased to the pledgor or seller at the time the property was 23 pledged or sold to the pawnbroker; and 24 (2) pays the pawnbroker 25 (A) the amount financed and the finance fee for the pawn 26 transaction, if the property was pledged to the pawnbroker; or 27 (B) the amount that the pawnbroker paid the seller if the 28 property was sold to the pawnbroker. 29 (b) A pawnbroker is not liable to the pledgor or seller of property that is 30 recovered by a lessor under (a) of this section for returning the property to a lessor 31 under (a) of this section.

01 Sec. 08.76.410. Law enforcement reports. (a) A pawnbroker shall provide a 02 law enforcement officer with a law enforcement report in paper or in an electronic 03 format on a weekly basis. 04 (b) A law enforcement report is confidential under AS 40.25.100 - 40.25.220, 05 and a law enforcement officer and a law enforcement agency may only use a law 06 enforcement report to investigate a crime involving the property that is the subject of 07 the pawnbroker transactions of the pawnbroker. 08 Sec. 08.76.420. Contents of law enforcement reports. (a) A law enforcement 09 report must contain 10 (1) a complete and accurate description of all property pledged to or 11 purchased by the pawnbroker, including, as applicable, the property's 12 (A) brand name, model number, and manufacturer's serial 13 number; and 14 (B) type of action and caliber or gauge, if the property is a 15 firearm; and 16 (2) the number of the pawnbroker transaction document that the 17 pawnbroker used to document the pawnbroker transaction. 18 (b) Notwithstanding (a) of this section, the description of the items under 19 (a)(1) of this section is adequate if the description gives the quantity of the items and 20 describes the type of the items if the pawnbroker transaction consists solely of 21 multiple items that are of a similar type, do not have serial or model numbers, and do 22 not contain precious metals or gemstones. 23 Sec. 08.76.430. Inspection by law enforcement entities. If a law enforcement 24 agency provides the case number assigned to the investigation for which the 25 inspection is being made, a pawnbroker may not refuse to allow the law enforcement 26 agency to inspect during normal business hours the pawnbroker's register and the 27 purchased property involved in the investigation or the unredeemed pledged property 28 involved in the investigation. 29 Sec. 08.76.440. Discipline. (a) The department may, after notice to the licensee 30 and reasonable opportunity to be heard, take the following disciplinary action against a 31 licensee if the licensee or an officer, agent, or employee of the licensee violates

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

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

01 under AS 08.76.210; 02 (8) "governmental fee" means a fee imposed by a governmental 03 agency on a pawnbroker to hold or transfer a firearm or conduct a background check 04 required by the governmental agency; 05 (9) "grace period" means the 30-day period after a maturity date during 06 which a pawnbroker is required by AS 08.76.270(b) to retain possession of pledged 07 property; 08 (10) "hold order" means a police hold order or an evidentiary hold 09 order; 10 (11) "identification" means 11 (A) a government-issued identification document that contains 12 a photograph; or 13 (B) an electronic image of a document identified under (A) of 14 this paragraph; 15 (12) "knowingly" has the meaning given in AS 11.81.900; 16 (13) "law enforcement agency" means 17 (A) the police department of a municipality where a pawnshop 18 is located; 19 (B) the Department of Law; 20 (C) the Department of Public Safety; 21 (14) "law enforcement officer" means 22 (A) a police officer of the municipality where a pawnshop is 23 located; or 24 (B) a state trooper if a pawnshop is located in the unorganized 25 borough or if a pawnshop is located in a municipality that does not provide 26 police protection services; 27 (15) "law enforcement report" means a report required by 28 AS 08.76.410; 29 (16) "lease" means any form of rental; 30 (17) "license" means a license to engage in business as a pawnbroker 31 issued under AS 08.76.110;

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

01 not a pawn transaction; 02 (31) "redeem" means to obtain the return of pledged property under 03 AS 08.76.270; 04 (32) "register" means the register required to be maintained by 05 AS 08.76.180; 06 (33) "registration fee" means a fee for registering a firearm; 07 (34) "seller" means a person who sells property to a pawnbroker, but 08 does not include a pledgor; 09 (35) "transaction agreement" means the transaction agreement required 10 by AS 08.76.200. 11 * Sec. 6. AS 45.01.211(b) is amended by adding a new paragraph to read: 12 (47) "pawnbroker" has the meaning given in AS 08.76.590. 13 * Sec. 7. AS 08.76.010(b) and 08.76.040 are repealed. 14 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 17 Economic Development may proceed to adopt regulations under AS 08.01.080 and 18 AS 08.76.470, enacted by sec. 5 of this Act, necessary to implement this Act. The regulations 19 take effect under AS 44.62 (Administrative Procedure Act), but not before July 1, 2011. 20 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 TRANSITION: CURRENT MUNICIPAL LICENSEES. (a) Notwithstanding 23 AS 08.76.100, enacted by sec. 5 of this Act, a person who holds a current municipal license 24 on July 1, 2011, may continue to engage in business as a pawnbroker through June 30, 2014, 25 without having a license issued by the Department of Commerce, Community, and Economic 26 Development. 27 (b) Notwithstanding AS 08.76.110, enacted by sec. 5 of this Act, the department shall 28 issue a license to a person who holds a municipal license if the person 29 (1) submits, before July 1, 2014, an application as required by the department 30 under AS 08.01.060; and 31 (2) pays a fee established by the department under AS 08.01.065.

01 (c) In this section, 02 (1) "license" has the meaning given in AS 08.76.590, enacted by sec. 5 of this 03 Act; 04 (2) "municipal license" means a license that is issued by a municipality to 05 authorize a person to engage in business as a pawnbroker; in this paragraph, "business" has 06 the meaning given in AS 08.76.590, enacted by sec. 5 of this Act; 07 (3) "pawnbroker" has the meaning given in AS 08.76.590, enacted by sec. 5 of 08 this Act. 09 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 TRANSITION: EXISTING ORDINANCES. An ordinance of a municipality that is in 12 effect on July 1, 2011, and that does not comply with AS 08.76.100 - 08.76.590, enacted by 13 sec. 5 of this Act, is void. 14 * Sec. 11. Section 8 of this Act takes effect immediately under AS 01.10.070(c). 15 * Sec. 12. Except as provided in sec. 11 of this Act, this Act takes effect July 1, 2011.