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To amend sections 4727.06, 4727.09, 4727.11, 4727.12, | 1 |
and 4727.13 and to enact sections 4727.061, | 2 |
4727.22, 4727.23, 4727.24, 4727.25, 4727.26, | 3 |
4727.27, 4727.28, 4727.29, and 4727.30 of the | 4 |
Revised Code to make changes to the law regulating | 5 |
pawnbrokers, including additional requirements for | 6 |
the recovery of leased property, extension of the | 7 |
property holding period for military service | 8 |
members and on purchased merchandise, and a | 9 |
requirement that pawnbrokers file a biennial | 10 |
report. | 11 |
Section 1. That sections 4727.06, 4727.09, 4727.11, 4727.12, | 12 |
and 4727.13 be amended and sections 4727.061, 4727.22, 4727.23, | 13 |
4727.24, 4727.25, 4727.26, 4727.27, 4727.28, 4727.29, and 4727.30 | 14 |
of the Revised Code be enacted to read as follows: | 15 |
Sec. 4727.06. (A) No pawnbroker shall charge, receive, or | 16 |
demand interest for any loan in excess of five per cent per month | 17 |
or fraction of a month on the unpaid principal. Interest shall be | 18 |
computed on a monthly basis on the amount of the principal | 19 |
remaining unpaid on the first day of the month and shall not be | 20 |
compounded. | 21 |
(B) In addition to the rate of interest limitation imposed | 22 |
pursuant to division (A) of this section, the licensee may charge | 23 |
no more than: | 24 |
(1) Four dollars per month or fraction of a month for all | 25 |
pledged articles held as security or stored for a loan, to be | 26 |
agreed to in writing at the time the loan is made; | 27 |
(2) Four dollars plus the actual cost of shipping, when the | 28 |
licensee is to deliver or forward the pledged article by express | 29 |
or parcel post to the pledgor; | 30 |
(3) Two dollars for the loss of the original statement issued | 31 |
to the pledgor by the licensee pursuant to section 4727.07 of the | 32 |
Revised Code upon redemption of the pledged articles | 33 |
(4) Two dollars for the cost of notifying a pledgor by mail | 34 |
that the pledged articles may be forfeited to the licensee | 35 |
pursuant to section 4727.11 of the Revised Code. | 36 |
(C) A licensee who complies with the requirements or | 37 |
procedures of this state pursuant to the application of the "Brady | 38 |
Handgun Violence Protection Act," 107 Stat. 1536 (1993), 18 | 39 |
U.S.C.A. 922, as amended, may charge any fee the licensee is | 40 |
required by law to pay in order to comply with such requirements | 41 |
or procedures. The licensee may charge no more than two dollars | 42 |
for providing services in compliance with such requirements or | 43 |
procedures. | 44 |
(D) A pledgor may pay a portion of the outstanding principal | 45 |
loan balance at any time. A pledgor may redeem a pawn loan at any | 46 |
time after seventy-two hours have passed since the pledge was | 47 |
made. A pledgor may | 48 |
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Sec. 4727.061. A pawnbroker shall waive any unpaid interest | 50 |
charges imposed under section 4727.06 of the Revised Code and | 51 |
hold, except as provided in sections 4724.12 and 4727.23 to | 52 |
4727.30 of the Revised Code, pledged property that is the subject | 53 |
of a pawn transaction on the pawnbroker's business premises until | 54 |
sixty days after the pledgor or the pledgor's spouse or dependent | 55 |
returns to the United States if the pawnbroker receives a copy of | 56 |
military orders indicating that the pledgor, or pledgor's spouse | 57 |
or dependent, is enlisted in the military service of a state or | 58 |
the United States and, after the pawn transaction was entered | 59 |
into, the person was or is to be deployed abroad for service | 60 |
relating to a military conflict. | 61 |
Sec. 4727.09. (A) | 62 |
investigation of property crime, a person licensed as a pawnbroker | 63 |
shall, every day, furnish the following information to the chief | 64 |
of police of the municipal corporation or township in which the | 65 |
licensee's place of business is located or, if the place of | 66 |
business is not located within a municipal corporation or a | 67 |
township that has a chief of police, to the sheriff of the county | 68 |
in which the place of business is located: | 69 |
(1) A description of all property pledged with or purchased | 70 |
by the licensee; | 71 |
(2) The number of the pawn or purchase form the licensee used | 72 |
to document the pledge or purchase. | 73 |
(B) A licensee shall provide the property description and | 74 |
form number required by division (A) of this section on the form | 75 |
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completed form may be communicated by electronic transfer or be in | 78 |
a | 79 |
(C) For the purposes of this section, a licensee need provide | 80 |
only the information required by division (A) of this section. | 81 |
(D) No fee shall be assessed to a licensee, pledgor, or | 82 |
seller for complying with this section. | 83 |
(E) Information furnished to law enforcement by a person | 84 |
licensed as a pawnbroker under this chapter is confidential and is | 85 |
not a public record under section 149.43 of the Revised Code. | 86 |
Sec. 4727.11. (A) If a pledgor fails to pay interest to a | 87 |
person licensed as a pawnbroker on a pawn loan for two months from | 88 |
the date of the loan or the date on which the last interest | 89 |
payment is due, the licensee shall notify the pledgor by mail or | 90 |
electronically, if the pledgor agrees to such electronic | 91 |
communication at the time the loan is made,
| 92 |
to the last place of address or electronic mail address given by | 93 |
the pledgor, that unless the pledgor redeems the pledged property | 94 |
or pays all interest due and storage charges within thirty days | 95 |
from the date the notice is mailed, the pledged property shall be | 96 |
forfeited to the licensee. If the pledgor fails to redeem or pay | 97 |
all interest due and storage charges within the period specified | 98 |
in the notice, the licensee becomes the owner of the pledged | 99 |
property. | 100 |
(B) In the event that any article or property is redeemed by | 101 |
a person other than the pledgor, the pledgor shall sign the | 102 |
pledgor's copy of the statement required under section 4727.07 of | 103 |
the Revised Code, which copy shall be presented by the person to | 104 |
the licensee. The licensee shall verify the name of the person | 105 |
redeeming the article or property, and shall record the person's | 106 |
name and driver's license number, or other personal identification | 107 |
number, on the licensee's copy of the statement, and shall require | 108 |
the person to sign this copy. | 109 |
(C) In the event that any articles or property pledged are | 110 |
lost or rendered inoperable due to negligence of the licensee, the | 111 |
licensee shall replace the articles or property with identical | 112 |
articles or property, except that if the licensee cannot | 113 |
reasonably obtain identical articles or property, the licensee | 114 |
shall replace the articles or property with like articles or | 115 |
property. | 116 |
(D) When an account is paid in full, the licensee shall | 117 |
return the pledged article immediately to the pledgor. In the | 118 |
event the pledgor sells, transfers, or assigns the pledge, the | 119 |
licensee shall verify the name of the person redeeming the pledge | 120 |
and record that person's name, driver's license number, and | 121 |
signature on the permanent copy of the statement of pledge | 122 |
required pursuant to section 4727.07 of the Revised Code. The | 123 |
licensee also shall obtain the signature of the pledgor, or other | 124 |
person redeeming the pledge | 125 |
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redemption and the date of redemption. All records shall be kept | 127 |
in the licensee's place of business. | 128 |
Sec. 4727.12. | 129 |
retain any and all goods or articles pledged with the licensee | 130 |
until the expiration of seventy-two hours after the pledge is | 131 |
made, and shall retain any goods or articles purchased by the | 132 |
licensee until the expiration of
| 133 |
the purchase is made. The licensee may dispose of such goods or | 134 |
articles sooner with the written permission of the chief of police | 135 |
of the municipal corporation or township in which the licensee's | 136 |
place of business is located or, if the place of business is not | 137 |
located within a municipal corporation or township that has a | 138 |
chief of police, with the written permission of the sheriff of the | 139 |
county in which the business is located. | 140 |
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Sec. 4727.13. (A) The superintendent of financial | 168 |
institutions shall adopt rules in accordance with Chapter 119. of | 169 |
the Revised Code for the administration and enforcement of this | 170 |
chapter. | 171 |
(B) The superintendent shall enforce this chapter, make all | 172 |
reasonable effort to discover alleged violators, notify the proper | 173 |
prosecuting officer whenever the superintendent has reasonable | 174 |
grounds to believe that a violation has occurred, act as | 175 |
complainant in the prosecution thereof, and aid such officers to | 176 |
the best of the superintendent's ability in such prosecutions. The | 177 |
superintendent shall employ such deputies as may be necessary to | 178 |
make the investigations and inspections, and otherwise perform the | 179 |
duties imposed by such sections. | 180 |
(C) The superintendent may issue a cease and desist order | 181 |
against any person the superintendent reasonably suspects has | 182 |
violated, is currently violating, or is about to violate this | 183 |
chapter. The superintendent may apply to a court of common pleas | 184 |
for an order compelling a person to comply with any cease and | 185 |
desist order or any subpoena issued by the superintendent. | 186 |
(D) The superintendent may obtain from the court of common | 187 |
pleas any form of injunctive relief against any person that has | 188 |
violated, is currently violating, or is about to violate this | 189 |
chapter. | 190 |
(E) To enforce this chapter, the superintendent may issue a | 191 |
subpoena to any person to compel the production of any item, | 192 |
record, or writing, including an electronic writing, and may issue | 193 |
a subpoena to any person to compel the appearance and rendering of | 194 |
testimony. | 195 |
(F) The superintendent may examine and investigate the | 196 |
business, including the business location and any books, records, | 197 |
writings, including electronic writings, safes, files, or storage | 198 |
areas located in or utilized by the business location, of any | 199 |
person the superintendent reasonably suspects to be advertising, | 200 |
transacting, or soliciting business as a pawnbroker. The | 201 |
superintendent may request the attendance and assistance of the | 202 |
appropriate chief of police of a municipal corporation or | 203 |
township, the county sheriff, or the state highway patrol during | 204 |
the examination and investigation of the business. | 205 |
(G) The superintendent may adopt rules that allow for remote | 206 |
examinations of electronic data held by licensees under this | 207 |
chapter. | 208 |
(H) The superintendent shall approve a secure law enforcement | 209 |
database reporting system for use by a licensee to make records | 210 |
available to law enforcement officers as described in division (B) | 211 |
of section 4727.09 of the Revised Code. | 212 |
Sec. 4727.22. (A) A licensee shall file a biennial report | 213 |
with the superintendent of financial institutions before the first | 214 |
day of March of the filing year disclosing all relevant pawn | 215 |
transaction activity occurring during the previous two calendar | 216 |
years. A licensee who receives an initial license during an | 217 |
even-numbered year shall file the biennial report each | 218 |
even-numbered year. A licensee who receives an initial license | 219 |
during an odd-numbered year shall file the biennial report each | 220 |
odd-numbered year. A biennial report is delinquent if the licensee | 221 |
does not file the report before the first day of April of the | 222 |
licensee's filing year. | 223 |
(B) The biennial report must provide all of the following: | 224 |
(1) The number of pawn transactions made by the licensee | 225 |
during the previous calendar year and the aggregate amount | 226 |
financed on the pawn transactions; | 227 |
(2) The number of pledged property items redeemed during the | 228 |
previous calendar year and the amount financed on the redeemed | 229 |
property; | 230 |
(3) The number of items surrendered to law enforcement; | 231 |
(4) The total dollar amount of pawn loans surrendered to law | 232 |
enforcement; | 233 |
(5) The number of pawn loans that were not redeemed; | 234 |
(6) The total dollar amount of pawn loans not redeemed; | 235 |
(7) The total number of full-time equivalent employees at the | 236 |
pawnshop as of the last day of December of the preceding year. | 237 |
(C) Information furnished to the superintendent in accordance | 238 |
with this section is confidential and is not a public record under | 239 |
section 149.43 of the Revised Code. | 240 |
Sec. 4727.23. (A) When a law enforcement officer has | 241 |
reasonable suspicion that property in the possession of a | 242 |
pawnbroker at a pawnshop in the law enforcement officer's | 243 |
jurisdiction has been misappropriated, the law enforcement officer | 244 |
may issue a police hold order that directs the pawnbroker not to | 245 |
release or dispose of the property until the police hold order | 246 |
terminates or a court orders the release or disposal of the | 247 |
property. The law enforcement officer shall request the pawnbroker | 248 |
or the pawnbroker's designee to sign the police hold order. | 249 |
(B) If a pawnbroker or pawnbroker's designee signs the police | 250 |
hold order described in division (A) of this section, the hold | 251 |
order takes effect when the pawnbroker or the pawnbroker's | 252 |
designee receives the police hold order. | 253 |
(C) If a pawnbroker or pawnbroker's designee refuses to sign | 254 |
the police hold order described in division (A) of this section, | 255 |
the hold order begins when the refusal occurs. | 256 |
Sec. 4727.24. (A) When property in the possession of a | 257 |
pawnbroker may be needed as evidence in a pending court action | 258 |
involving a criminal or civil charge, a law enforcement agency may | 259 |
issue an evidentiary hold order to a pawnbroker that directs the | 260 |
pawnbroker not to release or dispose of the property until the | 261 |
evidentiary hold order terminates or a court orders the release or | 262 |
disposal of the property. | 263 |
(B) A pawnbroker who receives an evidentiary hold order under | 264 |
division (A) of this section shall hold the property until the | 265 |
court notifies the pawnbroker in writing of the disposition of the | 266 |
action. The court shall notify the pawnbroker within fifteen days | 267 |
after the disposition of the action for which the property may be | 268 |
needed as evidence. | 269 |
Sec. 4727.25. (A) A hold order described in section 4727.23 | 270 |
or 4727.24 of the Revised Code shall be in writing and contain all | 271 |
of the following: | 272 |
(1) The name of the pawnbroker; | 273 |
(2) A complete description of the property being held, | 274 |
including the model number and serial number, if any; | 275 |
(3) The mailing address of the pawnshop where the property is | 276 |
being held. | 277 |
(B) In addition to the information required by division (A) | 278 |
of this section, if the hold order is a police hold order as | 279 |
described in section 4727.23 of the Revised Code, the order must | 280 |
contain all of the following: | 281 |
(1) The name, title, and identification number of the law | 282 |
enforcement officer issuing the police hold order, and the name | 283 |
and address of the law enforcement agency for which the law | 284 |
enforcement officer is acting; | 285 |
(2) The number, if any, assigned by the law enforcement | 286 |
agency to the case; | 287 |
(3) The expiration date of the hold order. | 288 |
(C) In addition to the information required by division (A) | 289 |
of this section, if the hold order is an evidentiary hold order as | 290 |
described in section 4727.24 of the Revised Code, the order must | 291 |
contain both of the following: | 292 |
(1) The name and address of the law enforcement agency | 293 |
issuing the evidentiary hold order; | 294 |
(2) The number and caption of the court action. | 295 |
Sec. 4727.26. (A) An initial police hold order as described | 296 |
in section 4727.23 of the Revised Code may not exceed sixty days. | 297 |
However, a law enforcement officer may extend the police hold | 298 |
order for one additional successive sixty-day period by giving | 299 |
written notification to the pawnbroker before the expiration of | 300 |
the first sixty-day period. | 301 |
(B) A law enforcement agency may not issue a new police hold | 302 |
order for the same property after the additional sixty-day period | 303 |
allowed under this section. However, the termination of the police | 304 |
hold order does not affect an existing evidentiary hold order as | 305 |
described in section 4727.24 of the Revised Code on the same | 306 |
property or prevent the issuance of an evidentiary hold order for | 307 |
the same property. | 308 |
(C) A law enforcement agency may release a police hold order | 309 |
before the end of a sixty-day period by issuing a written release | 310 |
to the pawnbroker. | 311 |
Sec. 4727.27. (A) If a person believes that property in the | 312 |
possession of a pawnbroker was misappropriated from the person, | 313 |
and if the person wants to obtain possession of the property from | 314 |
the pawnbroker, the person shall notify the pawnbroker in writing. | 315 |
(B) A notice under division (A) of this section must contain | 316 |
a complete and accurate description of the property and must be | 317 |
accompanied by proof that the claimant owns the property and, if | 318 |
the claimant alleges that the property was stolen, a legible copy | 319 |
of a law enforcement agency's report indicating that the property | 320 |
was stolen. | 321 |
(C) Except as provided in section 4727.28 of the Revised | 322 |
Code, a pawnbroker shall not, for thirty days after the pawnbroker | 323 |
receives notice of a claim under this section, dispose of property | 324 |
that is the subject of a claim. | 325 |
Sec. 4727.28. If a claimant and a pawnbroker do not resolve | 326 |
a claim within ten days after the pawnbroker's receipt of a notice | 327 |
of the claim under section 4727.27 of the Revised Code, the | 328 |
claimant may bring an action in court to require the pawnbroker to | 329 |
return the property to the claimant. After a pawnbroker is | 330 |
notified that court action has been filed, the pawnbroker may not | 331 |
dispose of the property until the court disposes of the action, | 332 |
disposes of the property, or allows the pawnbroker to dispose of | 333 |
the property. | 334 |
Sec. 4727.29. A pledgor or seller of property to a | 335 |
pawnbroker is liable to the pawnbroker for the full amount that | 336 |
the pledgor or seller received from the pawnbroker, all charges | 337 |
owed by the pledgor for the pawnbroker transaction, and attorney's | 338 |
fees and other costs as allowed by the rules of court if, in an | 339 |
action brought under section 4727.28 of the Revised Code, the | 340 |
court determines that the pledgor or seller misappropriated the | 341 |
property from the claimant and the court orders the pawnbroker to | 342 |
return the property to the claimant. | 343 |
Sec. 4727.30. (A) If property in the possession of a | 344 |
pawnbroker was leased from a lessor to a pledgor or seller when | 345 |
the pledgor or seller pledged or sold the property to the | 346 |
pawnbroker, but the property did not have a permanent label or | 347 |
other conspicuous mark identifying it as the lessor's property, | 348 |
the pawnbroker may return the property to the lessor if the lessor | 349 |
does both of the following: | 350 |
(1) Provides the pawnbroker with evidence that the property | 351 |
is the lessor's property and was leased to the pledgor or seller | 352 |
at the time the property was pledged or sold to the pawnbroker; | 353 |
(2) Pays the pawnbroker either of the following: | 354 |
(a) The amount financed and the finance fee for the pawn | 355 |
transaction, if the property was pledged to the pawnbroker; | 356 |
(b) The amount that the pawnbroker paid the seller if the | 357 |
property was sold to the pawnbroker. | 358 |
(B) A pawnbroker is not liable to the pledgor or seller of | 359 |
property that is recovered by a lessor under division (A) of this | 360 |
section for returning the property to a lessor. | 361 |
Section 2. That existing sections 4727.06, 4727.09, 4727.11, | 362 |
4727.12, and 4727.13 of the Revised Code are hereby repealed. | 363 |