CS FOR SENATE BILL NO. 292(JUD) "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." 4:43:01 PM SENATOR CHARLIE HUGGINS, SPONSOR, explained that the legislation would create a method for pawnshops in the state to report and track stolen goods. Co-Chair Stoltze said that the issue had been discussed before. He stated that regulations already existed to regulate and control the goods sold to pawnshops, but that local municipalities had been noncompliant. He asked if the legislation would force all pawnshops into conformity. Senator Huggins replied in the affirmative. 4:46:35 PM JOSH TEMPEL, STAFF, SENATOR CHARLIE HUGGINS, reported that the bill has had broad support from ethically managed pawn shops and law enforcement. He directed attention to the blank CS, work draft Version "M", of the legislation. 4:47:58 PM AT EASE 5:09:11 PM RECONVENED Vice-Chair Thomas MOVED to ADOPT HCS CS SB 292, 26- LS1487\M, Bannister, 4/14/10, as a working document. Co-Chair Stoltze OBJECTED for the purpose of discussion. Mr. Tempel relayed that the first change in the CS could be found on Page 1, Line 8. The change separated pawnshops from second-hand stores. It raised the limit that could be received from pawning an item from $500 to $750. The second change, found on Page 3, Line 24, again altered the number from $500 to $750. Mr. Tempel shared that the effective date would be delayed for a year at the request of one pawnbroker in Soldotna, who needed more time to review the legislation. Co-Chair Stoltze questioned the power of one pawnbroker to alter the effective date. Mr. Tempel replied that all the other parties involved had been comfortable with the delay. Senator Huggins added that the delay would allow for a more successful transition. Co-Chair Stoltze WITHDREW his OBJECTION. There being NO OBJECTION, HCS CS SC 292 was ADOPTED as a working document. JENNIFER STRICKLER, OPERATIONS MANAGER, DIVISION OF OCCUPATIONAL LICENSING, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, explained that the fiscal note requested a part-time investigator position the funding for which would paid by the licensees. She emphasized that the program was new under centralized licensing. 5:14:25 PM Co-Chair Stoltze asked if the effective date delay would result in fees being collected earlier. Ms. Strickler replied that the fees would be collected starting the effective date of the bill. Representative Joule referred to the change in revenue reflected on the fiscal note. He wondered why the $76,000 skipped from year to year. Ms. Strickler responded that the number sipped from year to year because licensing was based on the biennial cycle. Representative Gara clarified that the revenue would pay for the expected fiscal impact. Ms. Strickler answered yes. Representative Gara asked if the Unfair Trade Practices Act still governed pawnbroker conduct concerning fraud. Senator Huggins answered yes. Co-Chair Stoltze opened public testimony. FERNANDO PENA, CASH AMERICA, testified in support of the bill. ALEX VAUGHN, CASH AMERICA, spoke in support of the legislation. Vice-Chair Thomas MOVED to report HCS CSSB 292(FIN) out of Committee with individual recommendations and the accompanying fiscal note. HCS CSSB 292(FIN) was REPORTED out of Committee with "no recommendation" and attached previously published fiscal note: FN1 (CED). 5:20:13 PM AT EASE 5:20:26 PM RECONVENED