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.

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.