General Assembly |
File No. 183 |
February Session, 2010 |
House of Representatives, March 29, 2010
The Committee on Public Safety and Security reported through REP. DARGAN of the 115th Dist., Chairperson of the Committee on the part of the House, that the bill ought to pass.
AN ACT CONCERNING THE LICENSING AND RECORD KEEPING OF PAWNBROKERS AND PRECIOUS METAL AND STONE DEALERS, THE RETENTION OF CERTAIN GOODS AND CERTAIN FEES CHARGED BY PAWNBROKERS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 21-40 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) The [selectmen] chief executive officer of any town and the chief of police of any city may grant licenses to suitable persons to be pawnbrokers and to carry on the business of lending money on the deposit or pledge of personal property, or of purchasing such property on condition of selling it back again at a stipulated price, or of purchasing such property from a person who is not a wholesaler, in such town or city respectively, and may revoke such licenses for cause, [; but the selectmen] which shall include, but not be limited to, failure to comply with any requirements for licensure specified by the licensing authority at the time of issuance. The chief executive officer shall not grant such licenses for the carrying on of such business within the limits of any city. The person so licensed shall pay, for the benefit of any such city or town, respectively, to the authority granting such license a license fee of fifty dollars, and twenty-five dollars per year thereafter for renewal of such license, and shall, at the time of receiving such license, file, with the [mayor of such city or the first selectman] chief executive officer of such city or town, a bond to such city or town, with competent surety, in the penal sum of two thousand dollars, to be approved by such licensing authority, and conditioned for the faithful performance of the duties and obligations pertaining to the business so licensed. Each such license shall designate the place where such business is to be carried on and shall continue one year unless sooner revoked. No license shall be issued under this section by the [selectmen] chief executive officer or chief of police to any person who has been convicted of a felony. The [selectmen] chief executive officer or chief of police may require any applicant for a license under this section to submit to state and national criminal history records checks. If the [selectmen] chief executive officer or chief of police require such criminal history records checks, such checks shall be conducted in accordance with section 29-17a.
(b) If, in the judgment of the licensing authority, the licensee has violated the requirements for licensure specified by the licensing authority at the time of issuance, the licensing authority shall send notice by registered or certified mail to the licensee, who shall be given a hearing and, if violation is proven, the licensing authority shall revoke such license.
Sec. 2. Section 21-41 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) No pawnbroker or person who loans money on the deposit or pledge of wearing apparel, jewelry, ornaments, household goods or other personal property or purchases such property on condition of selling the same back again at a stipulated price or purchases such property from a person who is not a wholesaler shall take, receive or purchase such property without receiving proof of the identity of the person depositing, pledging or selling the property. Such identification shall include a photograph, an address, if available on the identification, and an identifying number, including, but not limited to, a date of birth. Any person who wilfully violates any provision of this subsection shall, for a first violation, have committed an infraction and, for a second or subsequent violation committed within two years of a prior violation, be guilty of a class A misdemeanor.
(b) Each such pawnbroker or person carrying on such business of loaning money on the deposit or pledge of personal property or of purchasing such property on condition of selling the same back again at a stipulated price or of purchasing such property from a person who is not a wholesaler shall maintain a computerized record-keeping system deemed appropriate by the chief of police in cities and by the [selectmen] chief executive officer in towns, in which shall be entered in English, at the time [he] the pawnbroker or person carrying on such business receives any article of personal property by way of pledge, pawn or purchase, a description of such article, the name, residence, proof of identity as required in subsection (a) of this section and a general description of the person from whom, and the day and hour when, such property was received. If the article of personal property consists of jewelry, the pawnbroker or person carrying on such business shall take a photograph of the article and maintain such photograph in the computerized record-keeping system for not less than sixty days after obtaining possession of such article. Such computerized record-keeping system and the place where such business is carried on and all articles of property therein may be examined at all times by any state police officer, by any municipal police officer, by the [selectmen] chief executive officer of the town or any person by them designated or, if such business is carried on in a city, by the chief of police of such city or [any person by him designated] a designee. Any state police officer or municipal police officer of the town or city where the business is carried on who performs such an examination may require any employee on the premises to provide proof of [his] the employee's identity.
Sec. 3. Section 21-42 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
Each such pawnbroker shall, at the time of making any loan on a pawn or pledge of personal property or of purchasing such property on condition of selling the same back again at a stipulated price or of purchasing such property from a person who is not a wholesaler, deliver to the person who pawns, pledges or sells such property a memorandum or note containing the entry required to be made in [his] such pawnbroker's record-keeping system by the provisions of section 21-41, as amended by this act. Each such pawnbroker may charge the person who pawns, pledges or sells such property a reasonable fee for such memorandum or note, the storage of such property, any insurance for the property and any appraisal of the property. Each such pawnbroker shall pay for any property received by pawn, pledge or purchase only by check, draft or money order and shall not pay cash for any such property except when the pawnbroker cashes a check, draft or money order for the person who is pawning, pledging or selling the property. When the pawnbroker cashes a check, draft or money order, [he] the pawnbroker shall require proof of the identity of the person presenting the check, draft or money order in accordance with subsection (a) of section 21-41, as amended by this act. Any person who wilfully violates any provision of this section shall be guilty of a class A misdemeanor.
Sec. 4. Section 21-100 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) No person may engage in or carry on the business of purchasing gold or gold-plated ware, silver or silver-plated ware, platinum ware, watches, jewelry, precious stones or coins unless such person is licensed by the chief of police or, if there is no chief of police, the [first selectman] chief executive officer of the municipality in which such person intends to carry on such business; except that the provisions of this subsection shall not apply to the purchase of such items from a wholesaler by a manufacturer or retail seller whose primary place of business is located in this state. Such person shall pay an annual fee of ten dollars for such license. The license may be revocable for cause, which shall include, but not be limited to, failure to comply with any requirements for licensure specified by the licensing authority at the time of issuance. A chief of police or [first selectman] chief executive officer shall refuse to issue a license under this subsection to a person who has been convicted of a felony. A chief of police or [first selectman] chief executive officer may require any applicant for a license to submit to state and national criminal history records checks. If the chief of police or [first selectman] chief executive officer requires such criminal history records checks, such checks shall be conducted in accordance with section 29-17a. For the purposes of this subsection "wholesaler" means a person in the business of selling tangible personal property to be resold at retail or raw materials to be manufactured into suitable forms for use by consumers.
(b) Each such [licensed person] licensee shall keep a record in which [he] the licensee shall note at the time of each transaction a description of the goods purchased and the price paid for them, the name and address of the person selling the goods and the date and hour any such goods were received. Each such [licensed person] licensee shall demand positive identification from the person selling the article and the type or form of identification received shall be noted in the record. Any state police officer or municipal police officer shall have access to the record required to be kept under this section and may inspect the place where the business is carried on as well as any goods purchased or received.
(c) No such [licensed person] licensee may purchase any goods from a minor unless such minor is accompanied by a parent or guardian. Each such [licensed person] licensee may only pay for goods received by check, draft or money order and no cash shall be transferred to either party in the course of a transaction subject to the provisions of this section.
(d) At the time of making any purchase each [licensed person] licensee shall deliver to the person selling goods a receipt containing the information required to be recorded in subsection (b) of this section, the amount paid for any goods sold and the name and address of the purchaser.
(e) Each such licensee shall retain any goods purchased by such licensee for not less than ten days before the resale or transfer of such goods.
[(e)] (f) Upon request of the licensing authority each such [licensed person] licensee shall make a weekly sworn statement, describing the goods received and setting forth the name and address of each person from whom goods were purchased, to the chief of police or [first selectman] chief executive officer of each municipality in which [he] the licensee transacted business that week. Such sworn statement shall not be deemed public records for the purposes of the Freedom of Information Act, as defined in section 1-200.
[(f)] (g) Any person who violates any provision of this section shall be fined not more than one thousand dollars.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
October 1, 2010 |
21-40 |
Sec. 2 |
October 1, 2010 |
21-41 |
Sec. 3 |
October 1, 2010 |
21-42 |
Sec. 4 |
October 1, 2010 |
21-100 |
PS |
Joint Favorable |
The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note
Explanation
The bill revises the local licensing authority for pawnbrokers and results in no fiscal impact.
The Out Years
OLR Bill Analysis
AN ACT CONCERNING THE LICENSING AND RECORD KEEPING OF PAWNBROKERS AND PRECIOUS METAL AND STONE DEALERS, THE RETENTION OF CERTAIN GOODS AND CERTAIN FEES CHARGED BY PAWNBROKERS.
This bill makes changes in the laws regulating pawnbrokers and dealers in precious metal and stones and names the municipal chief executive officer, rather than selectmen, as one of the licensing authorities for people in these businesses. It:
1. specifies that failure to comply with requirements for licensure specified by a licensing authority when a license is issued is cause for revoking a pawnbroker's license and requires a hearing prior to revocation;
2. requires pawnbrokers (a) to keep computerized records of property they receive and (b) take photographs of jewelry they receive and retain them in their records for at least 60 days;
3. allows pawnbrokers to charge a reasonable fee for issuing a memorandum or note for storing, insuring, or appraising an item; and
4. requires dealers in precious metal and stones to keep goods they buy for at least 10 days before reselling or transferring them.
The bill also makes technical, conforming, and other minor changes.
EFFECTIVE DATE: October 1, 2010
Licensing Authority
Under current law, the licensing authorities for (1) pawnbrokers are city police chiefs and town selectmen and (2) dealers in precious metals and stones are the first selectman and city police chiefs. The bill replaces town selectmen and first selectman with the municipal chief executive officer and makes corresponding changes throughout the law.
PAWNBROKERS
License Revocation
Under current law, a pawnbroker's license is revocable for cause. The bill specifies that cause includes failure to comply with any requirements for licensure the licensing authority specifies at the time of issuance. This conforms the law to the current standard for dealers in precious metal and stones.
Before revoking a license for violation of terms specified when it was issued, the issuing authority must notify the licensee by registered or certified mail and give him or her a hearing. If the violation is proven, the official must revoke the license.
Record Keeping Requirements
The bill requires that pawnbrokers (1) keep computerized records of property they receive and (2) take a photograph of any jewelry they receive and keep the photograph in the computerized system for at least 60 days.
By law, when pawnbrokers receive property, they must record in English its description; the customer's name, residence, proof of identity, and general description; and the day and hour the property was received. Any state or municipal police officer, selectmen in the towns where the business is located, and city police chiefs may examine pawnbrokers' records, business establishments, and property at all times.
Charges
By law, pawnbrokers must give customers who leave property with them a memorandum or note containing the entry and they must keep this as a record. The bill allows them to charge for the memorandum or note; storing the property; and any insurance for, or appraisal of, the property.
Proof of Identity
By law, pawnbrokers must obtain proof of identity from people leaving property with them. This includes a photograph, an address, and an identification number. The bill specifies that an identification number includes the customer's date of birth.
PRECIOUS METALS AND STONES PURCHASERS
The bill requires licensees dealing in precious stones and metal to retain goods they purchase for at least 10 days before reselling or transferring them.
COMMITTEE ACTION
Public Safety and Security Committee
Joint Favorable
Yea |
16 |
Nay |
4 |
(03/11/2010) |