Legislature(2009 - 2010)BELTZ 105 (TSBldg)
03/18/2010 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB300 | |
| SB292 | |
| SB304 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 300 | TELECONFERENCED | |
| *+ | SB 292 | TELECONFERENCED | |
| *+ | SB 304 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 292-PAWNBROKERS
2:51:57 PM
CHAIR PASKVAN called the meeting back to order and announced SB
292 to be up for consideration.
SENATOR BUNDE moved to bring CSSB 292(), 26-LS1487\S, before the
committee. There were no objections and it was so ordered.
2:52:17 PM
JOSH TEMPLE, Staff to Senator Huggins, sponsor of SB 292, said
it is 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. He explained that currently in Alaska
statute only a few paragraphs deal with pawnbrokers and from
city to city and borough to borough pawnbroker regulation would
create an even standard across Alaska. It would protect
consumers and businesses in Alaska.
MR. TEMPLE said this effort started four years ago and has had a
lot of input. It basically codifies what good pawnshops are
currently doing and good pawnshops support it.
He explained that basically pawnshops loan people money on items
they bring in for collateral. When people get some money, they
pay off their loan with a little interest and get their
collateral item back. That licensing would now fall to the
Division of Community and Economic Development. This bill
restricts who pawnbrokers can work with. They must be 18 years
or older, they have to be sober and have a valid form of I.D.,
and they can't be pawning stolen items. The pawnbroker must keep
a written or electronic log of these transactions for a period
of one year and they must give receipts, called transaction
agreements, for their transactions. SB 292 includes restrictions
on interest and fees and requires pawnbrokers to safely store
any items they use as collateral. It offers guidelines for
people who come in and aren't able to pay for their item in the
appropriate amount of time including a 30-day grace period. If a
service member pawns an item and gets deployed, that item and
any interest in it gets frozen in the pawnshop until he gets
back from deployment when it goes back to the original
agreement.
MR. TEMPLE said this bill limits employees that can be hired in
a pawnshop. A person with a felony or a misdemeanor dealing with
dishonesty can't be hired. It offers guidelines to both police
and to the property owners that find their property in a
pawnshop. It requires pawnshops to give weekly inventory
reporting to local law enforcement agencies. It also allows for
the department to discipline pawnbrokers who end up going
against these regulations. He said the thing to remember is that
good pawn shops already do these things. This bill would
eliminate a lot of confusion and offer protection from the
unethical few that will always be out there and protect
consumers of those businesses in Alaska.
SENATOR BUNDE asked if records have to be kept for one year
after redemption or from the time something is pawned.
MR. TEMPLE answered that the record has to be maintained well
for one year from the date it was pawned in case the police need
to come back and check for stolen property.
SENATOR BUNDE asked if there was any discussion of raising the
$500 maximum loan amount for articles that are worth more.
MR. TEMPLE answered yes. Independent pawn brokers have agreed
that the best thing for them is to keep it at $500, but they are
in discussion with the bigger pawn brokers that might be able to
afford more.
SENATOR BUNDE reflected that AIDEA is increasing the amount of
their loans in the previous bill because the world has changed
and things cost more. He encouraged the sponsor to look at that
number.
3:01:01 PM
NOEL LOWE, Alaska Fast Cash, Wasilla, supported SB 292. They
also supported raising the loan maximum amount from $500 to
$750.{
JOHN MINNICK, A-1 Pawn Shop, Wasilla, supported SB 292.
3:02:50 PM
FERNANDO PENA, Director, Government Affairs, Cash America,
supported SB 292. He said they operate five pawnshops in
Anchorage. He reminded them that this bill had been introduced
in 2008 and the original spirit and intent had been preserved.
He said that Alaska is the only state in the U.S. that doesn't
have comprehensive pawn shop regulations. They are trying to be
proactive for both consumers and operators. People will know
what to expect. This mirrors the best practices of the Lower 48
states. It also provides for due process for stolen property and
honors the military by not having them lose their property while
they are deployed overseas.
3:06:38 PM
ALEX VAUGHN, Cash America, supported SB 292 and said he would
answer questions.
3:07:35 PM
CHAIR PASKVAN closed public testimony.
SENATOR BUNDE moved to report CSSB 292(L&C), version S, from
committee with individual recommendations and attached fiscal
note(s). There were no objections and it was so ordered.
3:08:07 PM
CHAIR PASKVAN announced an at ease from 3:08 p.m. to 3:09 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 304 Back-Up.pdf |
SL&C 3/18/2010 1:30:00 PM |
SB 304 |
| SB 304 Bill.pdf |
SL&C 3/18/2010 1:30:00 PM |
SB 304 |