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.