Substitute House Bill No. 6900
          Substitute House Bill No. 6900

              PUBLIC ACT NO. 97-164


AN ACT CONCERNING THE REGULATION OF PAWNBROKERS.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section  1.  Section   21-39  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    No  person,  corporation,   LIMITED  LIABILITY
COMPANY or partnership  shall, in any city or town
of this state,  engage in or carry on the business
of  loaning money  upon  deposits  or  pledges  of
wearing  apparel,  jewelry,  ornaments,  household
goods or other personal property, or of purchasing
such property on  condition  of  selling  the same
back again at  a  stipulated  price,  unless  such
person, corporation, LIMITED  LIABILITY COMPANY or
partnership is licensed  as  a pawnbroker; but the
provisions of this  chapter  shall  apply  only if
such property is  deposited  with  a  lender,  and
shall not apply  to  loans made upon stock, bonds,
notes or other  written  or  printed  evidence  of
ownership of property  or  of  indebtedness to the
holder or owner of any such securities.
    Sec. 2. Section  21-40 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    The selectmen 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 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 of
such 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 OR
CHIEF  OF  POLICE  TO  ANY  PERSON  WHO  HAS  BEEN
CONVICTED OF A  FELONY.  THE SELECTMEN OR CHIEF OF
POLICE MAY TAKE  THE FINGERPRINTS OF ANY APPLICANT
FOR SUCH LICENSE  AND,  IF  SUCH  FINGERPRINTS ARE
TAKEN,  SHALL  SUBMIT  SUCH  FINGERPRINTS  TO  THE
FEDERAL BUREAU OF  INVESTIGATION  FOR  A  NATIONAL
CRIMINAL HISTORY RECORDS CHECK.
    Sec. 3. Section  21-41 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) No pawnbroker  [or  loan broker] 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  [sell]  PURCHASE  such
property     without    receiving     proof     of
[identification]  THE  IDENTITY   of   the  person
depositing, pledging or  [purchasing]  SELLING the
property.  Such [proof  of]  identification  shall
include  a  photograph,   [and]   AN  address,  IF
AVAILABLE   ON   THE    IDENTIFICATION,   AND   AN
IDENTIFYING  NUMBER.  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 [keep a  book,  to  be furnished] MAINTAIN A
RECORD-KEEPING SYSTEM DEEMED  APPROPRIATE  by  the
chief of police  in cities and by the selectmen in
towns, in which  shall  be  [written]  ENTERED  in
English, at the  time  he  receives any article of
personal property by  way  of pledge, [or] pawn OR
PURCHASE, a description of such article, the name,
residence, proof of  [identification]  IDENTITY as
required  in  subsection   (a)   and   a   general
description of the  person  from whom, and the day
and hour when,  such  property  was received. Such
[book] 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  policeman,  BY  ANY  MUNICIPAL  POLICE
OFFICER, by the  selectmen  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. ANY
STATE POLICEMAN 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
IDENTITY.
    Sec. 4. Section  21-42 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    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,  [or]  pledges  [any goods,
article  or  thing]   OR  SELLS  SUCH  PROPERTY  a
memorandum or note  containing  the entry required
to be made  in his [book] RECORD-KEEPING SYSTEM by
the provisions of  section  21-41,  AS  AMENDED BY
SECTION 3 OF THIS ACT. [No charge shall be made or
required  by  any   pawnbroker   for  such  entry,
memorandum or note.]  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  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
SECTION 3 OF  THIS  ACT.  ANY  PERSON WHO WILFULLY
VIOLATES ANY PROVISION  OF  THIS  SECTION SHALL BE
GUILTY OF A CLASS A MISDEMEANOR.
    Sec. 5. Section  21-44 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    No pawnbroker [or  loan  broker] or person who
loans money on  the  DEPOSIT OR pledge of personal
property  shall  take  or  receive,  [directly  or
indirectly,]  for  the  use  of  money  loaned  on
personal property, any  more  than  the  following
rates: For the  use  of money amounting to fifteen
dollars  or less,  five  per  cent  per  month  or
fraction thereof; for  the  use of money exceeding
fifteen dollars in  amount and not exceeding fifty
dollars in amount,  three  per  cent  per month or
fraction thereof; for  the  use of money exceeding
fifty dollars in amount, two per cent per month or
fraction thereof.
    Sec. 6. Section  21-45 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    No  [such lender]  PAWNBROKER  shall  sell  or
dispose of any  personal property left with him in
pledge for money  loaned  in  less  than [six] TWO
months from the  day  when  the  same  is  left in
pledge as aforesaid. All such property [shall] MAY
be sold or disposed of [,] AT THE PREMISES OF SUCH
PAWNBROKER OR at public [or private] sale [, only]
after advertisement in a daily newspaper published
in the town  in  which  such  [lender]  PAWNBROKER
carries on business, at least once two days before
the date of the sale or sales, which advertisement
shall state the  numbers  of  the  pledge  tickets
representing the property  offered  for  sale, and
the date or dates when such tickets were issued.
    Sec. 7. Section  21-47 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) Any person, corporation, LIMITED LIABILITY
COMPANY  or  partnership   which  engages  in  the
business  of a  pawnbroker,  or  in  any  business
described in section  21-39, AS AMENDED BY SECTION
1 OF THIS  ACT,  unless licensed according to law,
or after notice that its license has been revoked,
[or which violates  any  of the provisions of this
chapter or neglects  to keep a book in the English
language  or  to   make  the  entries  therein  as
provided by law or refuses to allow the same to be
inspected by the  proper  officers  or receives an
article of personal  property  by  way  of pawn or
pledge from any minor, knowing or having reason to
believe him to be a minor, shall be fined not more
than fifty dollars  for  the first offense and not
more  than one  hundred  dollars  for  the  second
offense, and, for  the  third  offense,  shall  be
fined  not  more  than  five  hundred  dollars  or
imprisoned not more than six months or both] SHALL
BE GUILTY OF  A  CLASS  D  FELONY,  and also shall
forfeit treble the  amount  loaned on the property
so pledged to  any person injured thereby who sues
therefor.
    (b) ANY PERSON, CORPORATION, LIMITED LIABILITY
COMPANY OR PARTNERSHIP WHICH WILFULLY VIOLATES ANY
OF THE PROVISIONS  OF  THIS  CHAPTER  FOR WHICH NO
OTHER PENALTY IS  PROVIDED  OR  NEGLECTS TO KEEP A
RECORD-KEEPING SYSTEM IN  THE  ENGLISH LANGUAGE OR
TO MAKE THE  ENTRIES THEREIN AS PROVIDED BY LAW OR
REFUSES TO ALLOW  THE  SAME TO BE INSPECTED BY THE
PROPER OFFICERS OR RECEIVES AN ARTICLE OF PERSONAL
PROPERTY BY WAY  OF  PAWN, PLEDGE OR PURCHASE FROM
ANY MINOR, KNOWING OR HAVING REASON TO BELIEVE HIM
TO BE A  MINOR,  SHALL  BE  GUILTY  OF  A  CLASS A
MISDEMEANOR.
    Sec. 8. (NEW) Whenever property is seized from
the premises of  a pawnbroker by a law enforcement
officer, such officer  shall give the pawnbroker a
duly signed receipt  for the property containing a
case number, a  description  of  the property, the
reason for the  seizure,  the  name and address of
the officer, the  name  and  address of the person
claiming a right  to  the  property  prior  to the
pawnbroker and the  name of the pawnbroker. If the
pawnbroker claims an  ownership  interest  in such
property  he  may   request  the  return  of  such
property by filing a request therefor with the law
enforcement   agency  in   accordance   with   the
provisions  of  section   54-36a  of  the  general
statutes.
    Sec. 9. Subsection  (a)  of  section 21-100 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (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 of the  municipality in which he 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 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
may take the fingerprints of an applicant for such
license AND, IF SUCH FINGERPRINTS ARE TAKEN, SHALL
SUBMIT SUCH FINGERPRINTS  TO THE FEDERAL BUREAU OF
INVESTIGATION  FOR  A  NATIONAL  CRIMINAL  HISTORY
RECORDS CHECK. 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.

Approved June 24, 1997