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S. B. No. 262 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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Cosponsors:
Senators Bacon, Coley, Lehner, Balderson, LaRose, Beagle
A BILL
To amend sections 4727.06, 4727.09, 4727.11, 4727.12,
and 4727.13 and to enact sections 4727.061,
4727.22, 4727.23, 4727.24, 4727.25, 4727.26,
4727.27, 4727.28, 4727.29, and 4727.30 of the
Revised Code to make changes to the law regulating
pawnbrokers, including additional requirements for
the recovery of leased property, extension of the
property holding period for military service
members and on purchased merchandise, and a
requirement that pawnbrokers file a biennial
report.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 4727.06, 4727.09, 4727.11, 4727.12,
and 4727.13 be amended and sections 4727.061, 4727.22, 4727.23,
4727.24, 4727.25, 4727.26, 4727.27, 4727.28, 4727.29, and 4727.30
of the Revised Code be enacted to read as follows:
Sec. 4727.06. (A) No pawnbroker shall charge, receive, or
demand interest for any loan in excess of five per cent per month
or fraction of a month on the unpaid principal. Interest shall be
computed on a monthly basis on the amount of the principal
remaining unpaid on the first day of the month and shall not be
compounded.
(B) In addition to the rate of interest limitation imposed
pursuant to division (A) of this section, the licensee may charge
no more than:
(1) Four dollars per month or fraction of a month for all
pledged articles held as security or stored for a loan, to be
agreed to in writing at the time the loan is made;
(2) Four dollars plus the actual cost of shipping, when the
licensee is to deliver or forward the pledged article by express
or parcel post to the pledgor;
(3) Two dollars for the loss of the original statement issued
to the pledgor by the licensee pursuant to section 4727.07 of the
Revised Code upon redemption of the pledged articles;
(4) Two dollars for the cost of notifying a pledgor by mail
that the pledged articles may be forfeited to the licensee
pursuant to section 4727.11 of the Revised Code.
(C) A licensee who complies with the requirements or
procedures of this state pursuant to the application of the "Brady
Handgun Violence Protection Act," 107 Stat. 1536 (1993), 18
U.S.C.A. 922, as amended, may charge any fee the licensee is
required by law to pay in order to comply with such requirements
or procedures. The licensee may charge no more than two dollars
for providing services in compliance with such requirements or
procedures.
(D) A pledgor may pay a portion of the outstanding principal
loan balance at any time. A pledgor may redeem a pawn loan at any
time after seventy-two hours have passed since the pledge was
made. A pledgor may not prepay interest or storage charges, except
when the pledgor redeems the pledged property.
Sec. 4727.061. A pawnbroker shall waive any unpaid interest
charges imposed under section 4727.06 of the Revised Code and
hold, except as provided in sections 4724.12 and 4727.23 to
4727.30 of the Revised Code, pledged property that is the subject
of a pawn transaction on the pawnbroker's business premises until
sixty days after the pledgor or the pledgor's spouse or dependent
returns to the United States if the pawnbroker receives a copy of
military orders indicating that the pledgor, or pledgor's spouse
or dependent, is enlisted in the military service of a state or
the United States and, after the pawn transaction was entered
into, the person was or is to be deployed abroad for service
relating to a military conflict.
Sec. 4727.09. (A) A For the purpose of a legitimate
investigation of property crime, a person licensed as a pawnbroker
shall, every day, furnish the following information to the chief
of police of the municipal corporation or township in which the
licensee's place of business is located or, if the place of
business is not located within a municipal corporation or a
township that has a chief of police, to the sheriff of the county
in which the place of business is located:
(1) A description of all property pledged with or purchased
by the licensee;
(2) The number of the pawn or purchase form the licensee used
to document the pledge or purchase.
(B) A licensee shall provide the property description and
form number required by division (A) of this section on the form
furnished approved by the law enforcement officer requesting the
information superintendent of financial institutions. The
completed form may be communicated by electronic transfer or be in
a magnetic digital media format.
(C) For the purposes of this section, a licensee need provide
only the information required by division (A) of this section.
(D) No fee shall be assessed to a licensee, pledgor, or
seller for complying with this section.
(E) Information furnished to law enforcement by a person
licensed as a pawnbroker under this chapter is confidential and is
not a public record under section 149.43 of the Revised Code.
Sec. 4727.11. (A) If a pledgor fails to pay interest to a
person licensed as a pawnbroker on a pawn loan for two months from
the date of the loan or the date on which the last interest
payment is due, the licensee shall notify the pledgor by mail or
electronically, if the pledgor agrees to such electronic
communication at the time the loan is made,
with proof of mailing,
to the last place of address or electronic mail address given by
the pledgor, that unless the pledgor redeems the pledged property
or pays all interest due and storage charges within thirty days
from the date the notice is mailed, the pledged property shall be
forfeited to the licensee. If the pledgor fails to redeem or pay
all interest due and storage charges within the period specified
in the notice, the licensee becomes the owner of the pledged
property.
(B) In the event that any article or property is redeemed by
a person other than the pledgor, the pledgor shall sign the
pledgor's copy of the statement required under section 4727.07 of
the Revised Code, which copy shall be presented by the person to
the licensee. The licensee shall verify the name of the person
redeeming the article or property, and shall record the person's
name and driver's license number, or other personal identification
number, on the licensee's copy of the statement, and shall require
the person to sign this copy.
(C) In the event that any articles or property pledged are
lost or rendered inoperable due to negligence of the licensee, the
licensee shall replace the articles or property with identical
articles or property, except that if the licensee cannot
reasonably obtain identical articles or property, the licensee
shall replace the articles or property with like articles or
property.
(D) When an account is paid in full, the licensee shall
return the pledged article immediately to the pledgor. In the
event the pledgor sells, transfers, or assigns the pledge, the
licensee shall verify the name of the person redeeming the pledge
and record that person's name, driver's license number, and
signature on the permanent copy of the statement of pledge
required pursuant to section 4727.07 of the Revised Code. The
licensee also shall obtain the signature of the pledgor, or other
person redeeming the pledge, upon a separate record of the
transaction, that acknowledges the total dollar amount paid for
redemption and the date of redemption. All records shall be kept
in the licensee's place of business.
Sec. 4727.12. (A) A person licensed as a pawnbroker shall
retain any and all goods or articles pledged with the licensee
until the expiration of seventy-two hours after the pledge is
made, and shall retain any goods or articles purchased by the
licensee until the expiration of
fifteen twenty-five days after
the purchase is made. The licensee may dispose of such goods or
articles sooner with the written permission of the chief of police
of the municipal corporation or township in which the licensee's
place of business is located or, if the place of business is not
located within a municipal corporation or township that has a
chief of police, with the written permission of the sheriff of the
county in which the business is located.
(B) If the chief of police or sheriff to whom the licensee
makes available the information required by section 4727.09 of the
Revised Code has probable cause to believe that the article
described therein is stolen property, the chief or sheriff shall
notify the licensee in writing. Upon receipt of such a notice, the
licensee shall retain the article until the expiration of thirty
days after the day on which the licensee is first required to make
available the information required by section 4727.09 of the
Revised Code, unless the chief or sheriff notifies the licensee in
writing that the licensee is not required to retain the article
until such expiration.
(C) If the chief or sheriff receives a report that property
has been stolen and determines the identity of the true owner of
the allegedly stolen property that has been purchased or pawned
and is held by a licensee, and informs the licensee of the true
owner's identity, the licensee may restore the allegedly stolen
property to the true owner directly.
If a licensee fails to restore the allegedly stolen property,
the true owner may recover the property from the licensee in an
action at law.
(D) If the licensee returns the allegedly stolen property to
the true owner, the licensee may charge the person who pledged or
sold the allegedly stolen property to the licensee, and any person
who acted in consort with the pledgor or the seller to defraud the
licensee, the amount the licensee paid or loaned for the allegedly
stolen property, plus interest and storage charges provided for in
section 4727.06 of the Revised Code.
Sec. 4727.13. (A) The superintendent of financial
institutions shall adopt rules in accordance with Chapter 119. of
the Revised Code for the administration and enforcement of this
chapter.
(B) The superintendent shall enforce this chapter, make all
reasonable effort to discover alleged violators, notify the proper
prosecuting officer whenever the superintendent has reasonable
grounds to believe that a violation has occurred, act as
complainant in the prosecution thereof, and aid such officers to
the best of the superintendent's ability in such prosecutions. The
superintendent shall employ such deputies as may be necessary to
make the investigations and inspections, and otherwise perform the
duties imposed by such sections.
(C) The superintendent may issue a cease and desist order
against any person the superintendent reasonably suspects has
violated, is currently violating, or is about to violate this
chapter. The superintendent may apply to a court of common pleas
for an order compelling a person to comply with any cease and
desist order or any subpoena issued by the superintendent.
(D) The superintendent may obtain from the court of common
pleas any form of injunctive relief against any person that has
violated, is currently violating, or is about to violate this
chapter.
(E) To enforce this chapter, the superintendent may issue a
subpoena to any person to compel the production of any item,
record, or writing, including an electronic writing, and may issue
a subpoena to any person to compel the appearance and rendering of
testimony.
(F) The superintendent may examine and investigate the
business, including the business location and any books, records,
writings, including electronic writings, safes, files, or storage
areas located in or utilized by the business location, of any
person the superintendent reasonably suspects to be advertising,
transacting, or soliciting business as a pawnbroker. The
superintendent may request the attendance and assistance of the
appropriate chief of police of a municipal corporation or
township, the county sheriff, or the state highway patrol during
the examination and investigation of the business.
(G) The superintendent may adopt rules that allow for remote
examinations of electronic data held by licensees under this
chapter.
(H) The superintendent shall approve a secure law enforcement
database reporting system for use by a licensee to make records
available to law enforcement officers as described in division (B)
of section 4727.09 of the Revised Code.
Sec. 4727.22. (A) A licensee shall file a biennial report
with the superintendent of financial institutions before the first
day of March of the filing year disclosing all relevant pawn
transaction activity occurring during the previous two calendar
years. A licensee who receives an initial license during an
even-numbered year shall file the biennial report each
even-numbered year. A licensee who receives an initial license
during an odd-numbered year shall file the biennial report each
odd-numbered year. A biennial report is delinquent if the licensee
does not file the report before the first day of April of the
licensee's filing year.
(B) The biennial report must provide all of the following:
(1) The number of pawn transactions made by the licensee
during the previous calendar year and the aggregate amount
financed on the pawn transactions;
(2) The number of pledged property items redeemed during the
previous calendar year and the amount financed on the redeemed
property;
(3) The number of items surrendered to law enforcement;
(4) The total dollar amount of pawn loans surrendered to law
enforcement;
(5) The number of pawn loans that were not redeemed;
(6) The total dollar amount of pawn loans not redeemed;
(7) The total number of full-time equivalent employees at the
pawnshop as of the last day of December of the preceding year.
(C) Information furnished to the superintendent in accordance
with this section is confidential and is not a public record under
section 149.43 of the Revised Code.
Sec. 4727.23. (A) When a law enforcement officer has
reasonable suspicion that property in the possession of a
pawnbroker at a pawnshop in the law enforcement officer's
jurisdiction has been misappropriated, the law enforcement officer
may issue a police hold order that directs the pawnbroker not to
release or dispose of the property until the police hold order
terminates or a court orders the release or disposal of the
property. The law enforcement officer shall request the pawnbroker
or the pawnbroker's designee to sign the police hold order.
(B) If a pawnbroker or pawnbroker's designee signs the police
hold order described in division (A) of this section, the hold
order takes effect when the pawnbroker or the pawnbroker's
designee receives the police hold order.
(C) If a pawnbroker or pawnbroker's designee refuses to sign
the police hold order described in division (A) of this section,
the hold order begins when the refusal occurs.
Sec. 4727.24. (A) When property in the possession of a
pawnbroker may be needed as evidence in a pending court action
involving a criminal or civil charge, a law enforcement agency may
issue an evidentiary hold order to a pawnbroker that directs the
pawnbroker not to release or dispose of the property until the
evidentiary hold order terminates or a court orders the release or
disposal of the property.
(B) A pawnbroker who receives an evidentiary hold order under
division (A) of this section shall hold the property until the
court notifies the pawnbroker in writing of the disposition of the
action. The court shall notify the pawnbroker within fifteen days
after the disposition of the action for which the property may be
needed as evidence.
Sec. 4727.25. (A) A hold order described in section 4727.23
or 4727.24 of the Revised Code shall be in writing and contain all
of the following:
(1) The name of the pawnbroker;
(2) A complete description of the property being held,
including the model number and serial number, if any;
(3) The mailing address of the pawnshop where the property is
being held.
(B) In addition to the information required by division (A)
of this section, if the hold order is a police hold order as
described in section 4727.23 of the Revised Code, the order must
contain all of the following:
(1) The name, title, and identification number of the law
enforcement officer issuing the police hold order, and the name
and address of the law enforcement agency for which the law
enforcement officer is acting;
(2) The number, if any, assigned by the law enforcement
agency to the case;
(3) The expiration date of the hold order.
(C) In addition to the information required by division (A)
of this section, if the hold order is an evidentiary hold order as
described in section 4727.24 of the Revised Code, the order must
contain both of the following:
(1) The name and address of the law enforcement agency
issuing the evidentiary hold order;
(2) The number and caption of the court action.
Sec. 4727.26. (A) An initial police hold order as described
in section 4727.23 of the Revised Code may not exceed sixty days.
However, a law enforcement officer may extend the police hold
order for one additional successive sixty-day period by giving
written notification to the pawnbroker before the expiration of
the first sixty-day period.
(B) A law enforcement agency may not issue a new police hold
order for the same property after the additional sixty-day period
allowed under this section. However, the termination of the police
hold order does not affect an existing evidentiary hold order as
described in section 4727.24 of the Revised Code on the same
property or prevent the issuance of an evidentiary hold order for
the same property.
(C) A law enforcement agency may release a police hold order
before the end of a sixty-day period by issuing a written release
to the pawnbroker.
Sec. 4727.27. (A) If a person believes that property in the
possession of a pawnbroker was misappropriated from the person,
and if the person wants to obtain possession of the property from
the pawnbroker, the person shall notify the pawnbroker in writing.
(B) A notice under division (A) of this section must contain
a complete and accurate description of the property and must be
accompanied by proof that the claimant owns the property and, if
the claimant alleges that the property was stolen, a legible copy
of a law enforcement agency's report indicating that the property
was stolen.
(C) Except as provided in section 4727.28 of the Revised
Code, a pawnbroker shall not, for thirty days after the pawnbroker
receives notice of a claim under this section, dispose of property
that is the subject of a claim.
Sec. 4727.28. If a claimant and a pawnbroker do not resolve
a claim within ten days after the pawnbroker's receipt of a notice
of the claim under section 4727.27 of the Revised Code, the
claimant may bring an action in court to require the pawnbroker to
return the property to the claimant. After a pawnbroker is
notified that court action has been filed, the pawnbroker may not
dispose of the property until the court disposes of the action,
disposes of the property, or allows the pawnbroker to dispose of
the property.
Sec. 4727.29. A pledgor or seller of property to a
pawnbroker is liable to the pawnbroker for the full amount that
the pledgor or seller received from the pawnbroker, all charges
owed by the pledgor for the pawnbroker transaction, and attorney's
fees and other costs as allowed by the rules of court if, in an
action brought under section 4727.28 of the Revised Code, the
court determines that the pledgor or seller misappropriated the
property from the claimant and the court orders the pawnbroker to
return the property to the claimant.
Sec. 4727.30. (A) If property in the possession of a
pawnbroker was leased from a lessor to a pledgor or seller when
the pledgor or seller pledged or sold the property to the
pawnbroker, but the property did not have a permanent label or
other conspicuous mark identifying it as the lessor's property,
the pawnbroker may return the property to the lessor if the lessor
does both of the following:
(1) Provides the pawnbroker with evidence that the property
is the lessor's property and was leased to the pledgor or seller
at the time the property was pledged or sold to the pawnbroker;
(2) Pays the pawnbroker either of the following:
(a) The amount financed and the finance fee for the pawn
transaction, if the property was pledged to the pawnbroker;
(b) The amount that the pawnbroker paid the seller if the
property was sold to the pawnbroker.
(B) A pawnbroker is not liable to the pledgor or seller of
property that is recovered by a lessor under division (A) of this
section for returning the property to a lessor.
Section 2. That existing sections 4727.06, 4727.09, 4727.11,
4727.12, and 4727.13 of the Revised Code are hereby repealed.
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