Legislature(2005 - 2006)SENATE FINANCE 532
04/27/2006 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SR6 | |
| SB291 | |
| SB315 | |
| SB274 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 231 | TELECONFERENCED | |
| + | SB 291 | TELECONFERENCED | |
| + | SB 315 | TELECONFERENCED | |
| + | SB 274 | TELECONFERENCED | |
| *+ | SR 6 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR SENATE BILL NO. 315(L&C)
"An Act relating to the disposition of unredeemed property;
and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
ANNETTE SKIBINSKI, Staff to Senator John Cowdery, Chair, Rules
Committee, which sponsored the bill, explained that this
legislation would amend current State Statute, AS 08.76.040
Disposition of unredeemed property. This Statute addresses how
property left at a pawnshop after the unredeemed property
deadline could be valued and sold. The provisions in question
were established in 1981, and some of them, specifically the
pawn loan limit, were revised overtime. Unfortunately, due to an
oversight, when the pawn loan limit was increased, the ratio
mechanism for determining the sale price of unclaimed property
was not adjusted. Thus, the purpose of this bill would be to
restore the original ratio between the pawn loan limit and the
value of the unredeemed property. She stressed that the proposed
change is specific to the sale price of the property and would
not alter pawn loan limit language.
Co-Chair Green asked for an example of how the ratio formula
would work.
Ms. Skibinski exampled a wedding ring valued at $2,000. Under
current law, the maximum amount a pawnshop could loan an
individual for that item would be $500. The individual would
have 60 days to repay the $500 loan, plus interest, and reclaim
the ring. Otherwise, after 60 days, the pawnshop could sell it.
Current ratio provisions would require the pawnshop to split any
profit above a sale price of $400 with the individual.
Therefore, in order to recoup the $500 the pawnshop paid for the
ring, a sale price of $600 would be required. This bill would
restore the price terms to the original two to one pawn loan
limit/unredeemed property value ratio. Thus, the trigger point
at which the proceeds must be split between the pawnshop and the
individual for a ring pawned for $500 would be $1,000.
9:57:53 AM
Senator Bunde understood that while the amount a pawnshop could
loan had been increased, the point at which the money generated
from the sale of an unredeemed item must be split had not been
addressed. Thus, this bill would restore the original ratio
limit.
9:58:43 AM
Co-Chair Green asked whether there was any opposition to the
bill.
Ms. Skibinski replied in the negative. The bill was drafted with
the assistance of the Commercial/Fair Business Section of the
Department of Law and the Department of Commerce, Community and
Economic Development (DCED). DCED suggested the bill contain a
provision that would require a pawnshop to disclose the
information about unredeemed property to an individual. The
Senate Labor & Commerce Committee included this language in
their bill.
Co-Chair Green acknowledged.
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, CS SB 315(L&C) was REPORTED from
Committee with previous zero fiscal note #1 dated April 14, 2006
from the Department of Commerce, Community and Economic
Development.
9:59:55 AM
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