Legislature(2009 - 2010)BELTZ 105 (TSBldg)
04/02/2010 01:30 PM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| HB101 | |
| SB249 | |
| SB292 | |
| SB241 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 241 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | HB 101 | ||
| = | SB 249 | ||
| = | SB 292 | ||
SB 292-PAWNBROKERS
CHAIR FRENCH announced the consideration of SB 292. It was heard
previously.
1:55:48 PM
JOSH TEMPEL, Staff to Senator Charlie Huggins, sponsor of SB
292, provided a sectional analysis. Sections 1-4 separate
pawnbroker regulations from those that apply to second hand
stores and address electronic record keeping. Responding to a
question, he explained that the Department of Commerce,
Community and Economic Development (DCCED) would provide
regulatory oversight.
Section 5 adds new sections to AS 08.76. Sec. 08.76.100 and Sec.
08.76.110 relate to how pawnbrokers are licensed. Sec. 08.76.130
relates to withdrawal of a pawnbroker application and Sec.
08.76.140 relates to the duration and renewal of a pawnbroker
license, including a penalty for late renewals. Sec. 08.76.160
maintains the current $500 limit on pawn transactions. Sec.
08.76.170 limits pawnbroker transactions to persons who are over
18 years of age, not under the influence of alcohol or a
controlled substance, [and with valid identification.] Sec.
08.76.180 and Sec. 08.76.190 relate to the record requirements
for pawnbroker transactions. Sec. 08.76.200 requires a
pawnbroker to provide the seller with a receipt of the
transaction. Sec. 08.76.210-76.230 relate to interest and fee
restrictions on transactions.
CHAIR FRENCH asked if this would limit the amount of interest a
pawnbroker could charge.
MR. TEMPEL replied the bill maintains the current limit, which
is 20 percent for each 30-day period. The fee structure is
changed slightly. A maximum $5 per transaction processing fee is
allowed as is a $5 firearm processing fee.
1:59:15 PM
CHAIR FRENCH asked if the firearm processing fee is in addition
to the interest charged on the loan.
MR. TEMPEL said that's correct.
SENATOR COGHILL asked why there's also a governmental fee on
firearms.
MR. TEMPEL explained that the state doesn't currently license
firearms but the governmental fee was included to accommodate
that future eventuality.
Continuing with sectional analysis, he said that Sec. 08.76.240
deals with redeeming pledged property. Sec. 08.76.250 deals with
extending pawn agreements if the pledgor isn't able to redeem
their property after the agreed time. This provides an automatic
30-day extension with a negotiated agreement beyond that time.
Sec. 08.76.260 deals with the safe and secure storage of
property left in the pawnshop. Sec. 08.76.270 deals with the
redemption of property and paying the financed amount and the
finance fee. Sec. 08.76.280 deals with the military exemption
and aligns with the Civil Relief Act.
2:02:02 PM
CHAIR FRENCH added that this provision basically freezes the
interest charges for military personnel who are called away to
duty.
MR. TEMPEL agreed; when a service member deploys interest on the
pawned item freezes until [60 days after] he or she returns, at
which time the prior agreement is in effect.
Sec. 08.76.290-76.310 talks about who pawnshops can hire and
prohibits waivers of consumer rights that are granted in
statute. Sec. 08.76.320-76.400 talks about stolen property and
hold orders that police and courts can issue. Sec. 08.76.410
requires pawnshops to report their inventory to local law
enforcement on a weekly basis. Sec. 08.76.430 gives police the
ability to inspect pawnshops and their books when deemed
necessary. Sec. 08.76.440 provides disciplinary measures for
pawnbrokers. Sec. 08.76.460 talks about how to bring municipal
pawnbroker regulations into compliance with the new statutory
requirements. [Sec. 08.76.590] contains definitions.
2:04:31 PM
Section 6 defines pawnbroker for the Uniform Commercial Code.
Section 7 repeals the electronic recording requirements [in AS
08.76.010(b) and 08.76.040.] Section 9 talks about transitioning
municipal licensing the state. Sections 11 and 12 establish an
effective date of July 1, 2011.
CHAIR FRENCH recalled that during the 2007 crime summit the
Wasilla police chief argued for electronic pawn reporting to
help deal with stolen property issues. Noting that a bill
instituting that was passed the next year, he asked what the
feedback had been and why that should be rolled back.
MR. TEMPEL said the sponsor is willing to return to what this
committee passed in 2007, but the bill was written to
accommodate those pawnbrokers who run an honest business but
quite simply don't like using computers and don't want to spend
$7,000-$10,000 for an electronic system. He added that most
pawnbrokers in the state already use electronic reporting and by
most accounts the police are happy with the relationship.
2:07:28 PM
MR. TEMPEL noted that he contacted the Wasilla Police Department
and the current investigator indicated that things are working
fairly well in the Mat-Su Valley. The investigator supports
electronic reporting in the future, but doesn't believe that
it's essential right now.
CHAIR FRENCH asked what's included in an electronic report and
if it's in spreadsheet format.
MR. TEMPEL said the report is a list of everything in the shop
in a format similar to a spreadsheet. The program that tracks
the items is expensive and it's necessary if the pawnbroker does
electronic reporting.
SENATOR EGAN referenced Sec. 08.76.190 on page four and asked if
pawnbrokers could record items electronically.
MR. TEMPEL replied it can be done either way right now.
2:10:06 PM
SENATOR WIELECHOWSKI observed that the language on page 2, lines
7-10, must be very old since it doesn't include any reference to
TVs or computers. He asked if the sponsor had considered
amending that language.
ME.TEMPEL agreed that it's old language, but it isn't exclusive
so anything with an identifying number could be included. He
noted that this section applies to second hand articles rather
than pawned items.
SENATOR WIELECHOWSKI pointed out that there is similar language
in Section 5 on page 4, lines 8-11.
MR. TEMPEL said the sponsor would be happy to add to the list,
but it's difficult to know where to stop list. He reiterated
that the current language isn't exclusionary.
SENATOR WIELECHOWSKI asked if it's common practice for
pawnbrokers to record identifying numbers for the pawned item.
MR. TEMPEL answered yes.
SENATOR WIELECHOWSKI asked if pawnbrokers are legally required
to record identifying numbers on all items because he doesn't
read it that way.
MR. TEMPEL read the language on page 4, lines 8-11, and said it
includes a firearm, a watch, a camera, or optical equipment, but
it's not limited to those items.
2:13:29 PM
SENATOR EGAN agreed with Senator Wielechowski's interpretation.
MR. TEMPEL said the sponsor would be happy to add items if it's
not clear.
CHAIR FRENCH said he sympathetic to people who don't want to
work with computers, but he'd hate to go backwards on electronic
reporting.
SENATOR EGAN asked for confirmation that Sec. 08.76.460 on page
12, line 24, says that municipal regulations can't be more
restrictive than state regulations.
2:16:28 PM
MR. TEMPEL explained that this removes the licensing and
regulating burden from municipalities and provides statewide
uniformity.
SENATOR EGAN asked if municipalities would adopt this under
ordinance.
CHAIR FRENCH said a municipality could elect to adopt an
ordinance but it couldn't be more restrictive than the state
statute.
SENATOR EGAN opined that including the section didn't make much
sense.
SENATOR WIELECHOWSKI agreed that it's a little unusual.
2:19:16 PM
CHAIR FRENCH announced he would hold SB 292 in committee.
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