Legislature(2009 - 2010)BELTZ 105 (TSBldg)
04/02/2010 01:30 PM Senate JUDICIARY
Audio | Topic |
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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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