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statutes is repealed and the following is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is repealed and the following is substituted in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