HB 0695 2004
1	A bill to be entitled
2	An act relating to pawnbroking; amending s. 539.001, F.S.;
3	revising provisions relating to the "Florida Pawnbroking
4	Act"; revising definition of the term "permitted vendor"
5	and defining the term "waiver of prosecution"; providing a
6	requirement with respect to application for or renewal of
7	a pawnbroker's license; providing for suspension or
8	revocation of a license for failure to comply; revising
9	requirements for completion and retention of pawnbroker
10	transaction forms; requiring certain labeling of property;
11	prohibiting certain activity with respect to title loan
12	agreements; revising requirements relating to petition for
13	return of misappropriated property; providing a petition
14	form; authorizing criminal proceedings; clarifying
15	provisions relating to hold orders; providing penalties;
16	amending s. 539.002, F.S.; providing that ch. 537, F.S.,
17	relating to title loans, does not apply to pawnbrokers
18	licensed under the Florida Pawnbroking Act; providing an
19	effective date.
20
21	Be It Enacted by the Legislature of the State of Florida:
22
23	Section 1. Section 539.001, Florida Statutes, is amended
24	to read:
25	539.001 The Florida Pawnbroking Act.--
26	(1) SHORT TITLE.--This section may be cited as the
27	"Florida Pawnbroking Act."
28	(2) DEFINITIONS.--As used in this section, the term:
29	(a) "Agency" means the Department of Agriculture and
30	Consumer Services.
31	(b) "Appropriate law enforcement official" means the
32	sheriff of the county in which a pawnshop is located or, in case
33	of a pawnshop located within a municipality, the police chief of
34	the municipality in which the pawnshop is located; however, any
35	sheriff or police chief may designate as the appropriate law
36	enforcement official for the county or municipality, as
37	applicable, any law enforcement officer working within the
38	county or municipality headed by that sheriff or police chief.
39	Nothing in this subsection limits the power and responsibilities
40	of the sheriff.
41	(c) "Claimant" means a person who claims that his or her
42	property was misappropriated.
43	(d) "Conveying customer" means a person who delivers
44	property into the custody of a pawnbroker, either by pawn, sale,
45	consignment, or trade.
46	(e) "Identification" means a government-issued
47	photographic identification or an electronic image taken from a
48	government-issued photographic identification.
49	(f) "Misappropriated" means stolen, embezzled, converted,
50	or otherwise wrongfully appropriated against the will of the
51	rightful owner.
52	(g) "Net worth" means total assets less total liabilities.
53	(h) "Pawn" means any advancement of funds on the security
54	of pledged goods on condition that the pledged goods are left in
55	the possession of the pawnbroker for the duration of the pawn
56	and may be redeemed by the pledgor on the terms and conditions
57	contained in this section.
58	(i) "Pawnbroker" means any person who is engaged in the
59	business of making pawns; who makes a public display containing
60	the term "pawn," "pawnbroker," or "pawnshop" or any derivative
61	thereof; or who publicly displays a sign or symbol historically
62	identified with pawns. A pawnbroker may also engage in the
63	business of purchasing goods which includes consignment and
64	trade.
65	(j) "Pawnbroker transaction form" means the instrument on
66	which a pawnbroker records pawns and purchases as provided in
67	subsection (8).
68	(k) "Pawn service charge" means a charge for investigating
69	the title, storage, and insuring of the security; closing the
70	transaction; making daily reports to appropriate law enforcement
71	officials; expenses and losses; and all other services.
72	(l) "Pawnshop" means the location at which a pawnbroker
73	conducts business.
74	(m) "Permitted vendor" means a vendor who furnishes a
75	pawnbroker with a uniquely numbered aninvoice specifying the
76	vendor's name and address, the date of the sale, a description
77	of the items sold, and the sales price, and who has an
78	established place of business, or, in the case of a secondhand
79	dealer as defined in s. 538.03, has represented in writing that
80	such dealer has complied with all applicable recordkeeping,
81	reporting, and retention requirements pertaining to goods sold
82	or otherwise delivered to a pawnbroker.
83	(n) "Person" means an individual, partnership,
84	corporation, joint venture, trust, association, or other legal
85	entity.
86	(o) "Pledged goods" means tangible personal property that
87	is deposited with, or otherwise delivered into the possession of
88	a pawnbroker in connection with a pawn. "Pledged goods" does not
89	include titles or any other form of written security in tangible
90	property in lieu of actual physical possession, including, but
91	not limited to, choses in action, securities, printed evidence
92	of indebtedness, or certificates of title and other instruments
93	evidencing title to separate items of property, including motor
94	vehicles. For purposes of federal and state bankruptcy laws, a
95	pledgor's interest in his or her pledged goods during the
96	pendency of a pawn is a right of redemption only.
97	(p) "Pledgor" means an individual who delivers pledged
98	goods into the possession of a pawnbroker in connection with a
99	pawn.
100	(q) "Purchase" means the transfer and delivery of goods,
101	by a person other than a permitted vendor, to a pawnbroker by
102	acquisition for value, consignment, or trade for other goods.
103	(r) "Amount financed" is used interchangeably to mean the
104	same as "amount of money advanced" or "principal amount".
105	(s) "Default date" means that date upon which the
106	pledgor's right of redemption expires and absolute right, title,
107	and interest in and to the pledged goods shall vest in and shall
108	be deemed conveyed to the pawnbroker by operation of law.
109	(t) "Beneficial owner" means a person who does not have
110	title to property but has rights in the property which are the
111	normal incident of owning the property.
112	(u) "Operator" means a person who has charge of a
113	corporation or company and has control of its business, or of
114	its branch establishments, divisions, or departments, and who is
115	vested with a certain amount of discretion and independent
116	judgment.
117	(v) “Waiver of prosecution” means a signed instrument by
118	which a claimant knowingly and voluntarily relinquishes a legal
119	right to have continued an official law enforcement
120	investigation by an appropriate law enforcement official or to
121	have a person prosecuted regarding a criminal complaint.
122	(3) LICENSE REQUIRED.--
123	(a) A person may not engage in business as a pawnbroker
124	unless the person has a valid license issued by the agency. A
125	separate license is required for each pawnshop. The agency must
126	issue more than one license to a person if that person complies
127	with the requirements for each license.
128	(b) A licensee who seeks to move a pawnshop to another
129	location must give 30 days' prior written notice to the agency
130	by certified or registered mail, return receipt requested, and
131	the agency must then amend the license to indicate the new
132	location. The licensee must also give such written notice to the
133	appropriate law enforcement official.
134	(c) Each license is valid for a period of 1 year unless it
135	is earlier relinquished, suspended, or revoked. Each license
136	shall be renewed annually, and each licensee shall, initially
137	and annually thereafter, pay to the agency a license fee of $300
138	for each license held.
139	(d) The agency may issue a temporary pawnbroker's license
140	for the operation of a pawnshop either upon receipt of an
141	application to transfer an existing license from one person to
142	another or upon receipt of an application for a license
143	involving principals and owners that are substantially identical
144	to those of the existing licensee. The temporary license is
145	effective until the permanent license is issued or denied by the
146	agency.
147	(e) A person must apply to the agency for a new license or
148	for a temporary license upon any change, directly or
149	beneficially, in the ownership of any pawnshop. An application
150	for a license or an application to transfer an existing license
151	is not required upon any change, directly or beneficially, in
152	the ownership of a pawnshop if one or more holders of at least
153	90 percent of the outstanding equity interest of the pawnshop
154	before the change in ownership continue to hold at least 90
155	percent of the outstanding equity interest after the change in
156	ownership.
157	(f) Any person applying for or renewing a state
158	pawnbroker's license must first procure a local occupational
159	pawnbroker's license, if applicable, and must supply proof of
160	same to the agency license to engage in business as a pawnbroker
161	must exhibit a current license from the agency before a state
162	pawnbroker's the local occupationallicense may be issued or
163	reissued.
164	(4) ELIGIBILITY FOR LICENSE.--
165	(a) To be eligible for a pawnbroker's license, an
166	applicant must:
167	1. Be of good moral character;
168	2. Have a net worth of at least $50,000 or file with the
169	agency a bond issued by a surety company qualified to do
170	business in this state in the amount of $10,000 for each
171	license. In lieu of the bond required in this section, the
172	applicant may establish a certificate of deposit or an
173	irrevocable letter of credit in a Florida banking institution in
174	the amount of the bond. The original bond, certificate of
175	deposit, or letter of credit shall be filed with the agency, and
176	the agency shall be the beneficiary to said document. The bond,
177	certificate of deposit, or letter of credit shall be in favor of
178	the agency for the use and benefit of any consumer who is
179	injured by the fraud, misrepresentation, breach of contract,
180	financial failure, or violation of any provision of this section
181	by the pawnbroker. Such liability may be enforced either by
182	proceeding in an administrative action or by filing a judicial
183	suit at law in a court of competent jurisdiction. However, in
184	such court suit, the bond, certificate of deposit, or letter of
185	credit posted with the agency shall not be amenable or subject
186	to any judgment or other legal process issuing out of or from
187	such court in connection with such lawsuit, but such bond,
188	certificate of deposit, or letter of credit shall be amenable to
189	and enforceable only by and through administrative proceedings
190	before the agency. It is the intent of the Legislature that such
191	bond, certificate of deposit, or letter of credit shall be
192	applicable and liable only for the payment of claims duly
193	adjudicated by order of the agency. The bond, certificate of
194	deposit, or letter of credit shall be payable on a pro rata
195	basis as determined by the agency, but the aggregate amount may
196	not exceed the amount of the bond, certificate of deposit, or
197	letter of credit;
198	3. Not have been convicted of, or found guilty of, or pled
199	guilty or nolo contendere to, or not have been incarcerated
200	within the last 10 years as a result of having previously been
201	convicted of, or found guilty of, or pled guilty or nolo
202	contendere to, regardless of adjudication, a felony within the
203	last 10 years and not be acting as a beneficial owner for
204	someone who has been convicted of, or found guilty of, or pled
205	guilty or nolo contendere to, regardless of adjudication, a
206	felony within the last 10 years; and
207	4. Not have been convicted of, or found guilty of, or pled
208	guilty or nolo contendere to, or not have been incarcerated
209	within the last 10 years as a result of having previously been
210	convicted of, or found guilty of, or pled guilty or nolo
211	contendere to, regardless of adjudication, a crime that involves
212	theft, larceny, dealing in stolen property, receiving stolen
213	property, burglary, embezzlement, obtaining property by false
214	pretenses, possession of altered property, or any other
215	fraudulent or dishonest dealing within the last 10 years, and
216	not be acting as a beneficial owner for someone who has been
217	convicted, of, or found guilty of, or pled guilty or nolo
218	contendere to, or has been incarcerated within the last 10 years
219	as a result of having previously been convicted of, or found
220	guilty of, or pled guilty or nolo contendere to, regardless of
221	adjudication, a crime that involves theft, larceny, dealing in
222	stolen property, receiving stolen property, burglary,
223	embezzlement, obtaining property by false pretenses, possession
224	of altered property, or any other fraudulent or dishonest
225	dealing within the last 10 years.
226	(b) Any applicant claiming to have a net worth of $50,000
227	or more shall file with the agency, at the time of applying for
228	a license, the following documentation:
229	1. A current financial statement prepared by a Florida
230	certified public accountant; or
231	2. An affidavit stating the applicant's net worth is at
232	least $50,000, accompanied by supporting documentation; or
233	3. If the applicant is a corporation, a copy of the
234	applicant's most recently filed federal tax return.
235
236	If the agency cannot verify that the applicant meets the net
237	worth requirement for a license, the agency may require a
238	finding, including the presentation of a current balance sheet,
239	by an accounting firm or individual holding a permit to practice
240	public accounting in this state, that the accountant has
241	reviewed the books and records of the applicant and that the
242	applicant meets the net worth requirement.
243	(c) If an applicant for a pawnbroker's license is not an
244	individual, the eligibility requirements of this subsection,
245	other than the requirements of subparagraph (a)2., apply to each
246	operator of the pawnshop and to each direct or beneficial owner
247	of at least 10 percent of the outstanding equity interest of the
248	pawnshop and, if the applicant is a corporation, to each officer
249	and director of the corporation.
250	(5) APPLICATION FOR LICENSE.--
251	(a) An application for a pawnbroker's license, for the
252	transfer of an existing pawnbroker's license, or for the
253	approval of a change in the ownership of a licensee's pawnshop
254	must be under oath and must state the full name and place of
255	residence of the applicant, the place where the business is to
256	be conducted, and other relevant information required by the
257	agency.
258	(b)1. If the applicant is not an individual, the applicant
259	must state the full name and address of each direct or
260	beneficial owner of at least a 10-percent equity interest in
261	such person. If the applicant is a corporation, the application
262	must also state the full name and address of each officer and
263	director.
264	2. Notwithstanding the provisions of subparagraph 1., the
265	application need not state the full name and address of each
266	officer, director, and shareholder if the applicant is owned
267	directly or beneficially by a person that as an issuer has a
268	class of securities registered under s. 12 of the Securities
269	Exchange Act of 1934, or under s. 15(d) thereof, and is an
270	issuer of registered securities required to file reports with
271	the Securities and Exchange Commission and if the person files
272	with the agency the information, documents, and reports required
273	to be filed with the Securities and Exchange Commission.
274	(c) Each initial application for a license must be
275	accompanied by a complete set of fingerprints taken by an
276	authorized law enforcement officer, $300 for the first year's
277	license fee, and the actual cost to the agency for fingerprint
278	analysis for each person subject to the eligibility
279	requirements. The agency shall submit the fingerprints to the
280	Department of Law Enforcement for state processing, and the
281	Department of Law Enforcement shall forward the fingerprints to
282	the Federal Bureau of Investigation for a national criminal
283	history check. These fees and costs are not refundable.
284	(d) When the application and the required fees are
285	received, the agency shall investigate the facts, approve the
286	application, and issue a license to the applicant if the agency
287	finds that the eligibility requirements for the license are
288	satisfied. The license must be prominently displayed at the
289	front desk or counter at each pawnshop.
290	(e) Fees and fines collected under this section by the
291	agency shall be deposited into the General Inspection Trust
292	Fund.
293	(6) SUSPENSION, REVOCATION, AND SURRENDER OF LICENSE; NET
294	WORTH REQUIREMENT.--
295	(a) The agency may, after notice and a hearing, suspend or
296	revoke any license upon a finding that:
297	1. The licensee, either knowingly or without the exercise
298	of due care, has violated this section or has aided or conspired
299	with another person to violate this section;
300	2. A condition exists that, had it existed when the
301	license was issued, would have justified the agency's refusal to
302	issue a license;
303	3. The licensee or its applicable agents or employees who
304	are subject to the eligibility requirements no longer meet the
305	eligibility requirements to hold a pawnbroker's license; or
306	4. The licensee has through gross negligence or willful
307	noncompliance failed to comply with a written hold order; or
308	5. The licensee failed to obtain or renew any license that
309	is required by the local government with appropriate
310	jurisdiction.
311	(b) The agency may conditionally license or place on
312	probation a person whose license has been suspended or may
313	reprimand a licensee for a violation of this section.
314	(c) The manner of giving notice and conducting a hearing,
315	as required by paragraph (a), must conform to chapter 120.
316	(d) Any licensee may surrender a license by delivering it,
317	by certified or registered mail, return receipt requested, to
318	the agency with written notice of its surrender. The surrender
319	of a license does not affect the civil or criminal liability of
320	the licensee for acts committed before the surrender of the
321	license.
322	(e) The revocation, suspension, or surrender of a license
323	does not impair or affect the obligation of any preexisting
324	lawful contract between the licensee and any pledgor. Any pawn
325	transaction made by a person without benefit of a license is
326	voidable, in which case the person forfeits the right to collect
327	any moneys, including principal and any charges, from the
328	pledgor in connection with such transaction and is obligated to
329	return to the pledgor the pledged goods in connection with such
330	transaction.
331	(f) The agency may reinstate a suspended license or issue
332	a new license to a person whose license has been revoked, if
333	after a hearing it determines that no fact or condition then
334	exists that would have justified the agency in originally
335	refusing to issue a license.
336	(g) Each licensee must maintain a net worth of $50,000 or
337	the bond specified in subsection (4).
338	(7) ORDERS IMPOSING PENALTIES.--
339	(a) The agency may enter an order imposing one or more of
340	the penalties set forth in paragraph (b) if the agency finds
341	that a pawnbroker:
342	1. Violated or is operating in violation of any of the
343	provisions of this section or of the rules adopted or orders
344	issued thereunder;
345	2. Made a material false statement in any application,
346	document, or record required to be submitted or retained under
347	this section;
348	3. Refused or failed, or any of its principal officers has
349	refused or failed, after notice, to produce any document or
350	records or disclose any information required to be produced or
351	disclosed under this section or the rules of the agency;
352	4. Made a material false statement in response to any
353	request or investigation by the agency, the Department of Legal
354	Affairs, or the state attorney; or
355	5. Has intentionally defrauded the public through
356	dishonest or deceptive means.
357	(b) Upon a finding as set forth in paragraph (a), the
358	agency may enter an order doing one or more of the following:
359	1. Issuing a notice of noncompliance pursuant to s.
360	120.695.
361	2. Imposing an administrative fine not to exceed $5,000
362	for each act which constitutes a violation of this section or a
363	rule or an order.
364	3. Directing that the pawnbroker cease and desist
365	specified activities.
366	4. Refusing to license or revoking or suspending a
367	license.
368	5. Placing the licensee on probation for a period of time,
369	subject to such conditions as the agency may specify.
370	(c) The administrative proceedings which could result in
371	the entry of an order imposing any of the penalties specified in
372	paragraph (b) are governed by chapter 120.
373	(d)1. When the agency, if a violation of this section
374	occurs, has reasonable cause to believe that a person is
375	operating in violation of this section, the agency may bring a
376	civil action in the appropriate court for temporary or permanent
377	injunctive relief and may seek other appropriate civil relief,
378	including a civil penalty not to exceed $5,000 for each
379	violation, restitution and damages for injured customers, court
380	costs, and reasonable attorney's fees.
381	2. The agency may terminate any investigation or action
382	upon agreement by the offender to pay a stipulated civil
383	penalty, to make restitution or pay damages to customers, or to
384	satisfy any other relief authorized herein and requested by the
385	agency.
386	(e) The remedies provided for in this subsection shall be
387	in addition to any other remedy provided by law.
388	(8) PAWNBROKER TRANSACTION FORM.--
389	(a) At the time the pawnbroker enters into any pawn or
390	purchase transaction, the pawnbroker shall complete a pawnbroker
391	transaction form for such transaction, including an indication
392	of whether the transaction is a pawn or a purchase, unless the
393	conveying customer is a permitted vendor. andThe pledgor or
394	seller shall sign such completed form. The agency must approve
395	the design and format of the pawnbroker transaction form, which
396	must be 81/2 inches x 11 inches in size and elicit the
397	information required under this section. In completing the
398	pawnbroker transaction form, the pawnbroker shall record the
399	following information, which must be typed or written indelibly
400	and legibly in English.
401	(b) The front of the pawnbroker transaction form must
402	include:
403	1. The name and address of the pawnshop and a unique
404	transaction form number which shall also be used for inventory
405	tracking purposes.
406	2. A complete and accurate description of the pledged
407	goods or purchased goods, including the following information,
408	if applicable:
409	a. Brand name.
410	b. Model number.
411	c. Manufacturer's serial number.
412	d. Size.
413	e. Color, as apparent to the untrained eye.
414	f. Precious metal type, weight, and content, if known.
415	g. Gemstone description, including the number of stones.
416	h. In the case of firearms, the type of action, caliber or
417	gauge, number of barrels, barrel length, and finish.
418	i. Any other unique identifying marks, numbers, names, or
419	letters.
420
421	Notwithstanding sub-subparagraphs a.-i., in the case of multiple
422	items of a similar nature delivered together in one transaction
423	which do not bear serial or model numbers and which do not
424	include precious metal or gemstones, such as musical or video
425	recordings, books, and hand tools, the description of the items
426	is adequate if it contains the quantity of items and a
427	description of the type of items delivered.
428	3. The name, current local residentialaddress, home
429	telephone number, place of employment, place of employment
430	telephone number, date of birth, physical description, and a
431	legibleright thumbprint of the pledgor or seller.
432	4. The date and time of the transaction.
433	5. The type of identification accepted from the pledgor or
434	seller, including the issuing agency and the identification
435	number.
436	6. In the case of a pawn:
437	a. The amount of money advanced, which must be designated
438	as the amount financed;
439	b. The maturity date of the pawn, which must be 30 days
440	after the date of the pawn;
441	c. The default date of the pawn and the amount due on the
442	default date;
443	d. The total pawn service charge payable on the maturity
444	date, which must be designated as the finance charge;
445	e. The amount financed plus the finance charge that must
446	be paid to redeem the pledged goods on the maturity date, which
447	must be designated as the total of payments;
448	f. The annual percentage rate, computed according to the
449	regulations adopted by the Federal Reserve Board under the
450	federal Truth in Lending Act; and
451	g. The front or back of the pawnbroker transaction form
452	must include a statement that:
453	(I) Any personal property pledged to a pawnbroker within
454	this state which is not redeemed within 30 days following the
455	maturity date of the pawn, if the 30th day is not a business
456	day, then the following business day, is automatically forfeited
457	to the pawnbroker, and absolute right, title, and interest in
458	and to the property vests in and is deemed conveyed to the
459	pawnbroker by operation of law, and no further notice is
460	necessary;
461	(II) The pledgor is not obligated to redeem the pledged
462	goods; and
463	(III) If the pawnbroker transaction form is lost,
464	destroyed, or stolen, the pledgor must immediately advise the
465	issuing pawnbroker in writing by certified or registered mail,
466	return receipt requested, or in person evidenced by a signed
467	receipt.
468	(IV) A pawn may be extended upon mutual agreement of the
469	parties.
470	7. In the case of a purchase, the amount of money paid for
471	the goods or the monetary value assigned to the goods in
472	connection with the transaction.
473	8. A statement that the pledgor or seller of the item
474	represents and warrants that it is not stolen, that it has no
475	liens or encumbrances against it, and that the pledgor or seller
476	is the rightful owner of the goods and has the right to enter
477	into the transaction.
478
479	Any person who knowingly gives false verification of ownership
480	or gives a false or altered identification and who receives
481	money from a pawnbroker for goods sold or pledged commits:
482	a. If the value of the money received is less than $300, a
483	felony of the third degree, punishable as provided in s.
484	775.082, s. 775.083, or s. 775.084.
485	b. If the value of the money received is $300 or more, a
486	felony of the second degree, punishable as provided in s.
487	775.082, s. 775.083, or s. 775.084.
488	(c) A pawnbroker transaction form must provide a space for
489	the imprint of the right thumbprint of the pledgor or seller and
490	a blank line for the signature of the pledgor or seller.
491	(d) At the time of the pawn or purchase transaction, the
492	pawnbroker shall deliver to the pledgor or seller an exact copy
493	of the completed pawnbroker transaction form.
494	(9) RECORDKEEPING; REPORTING; HOLD PERIOD.--
495	(a) A pawnbroker must maintain a copy of each completed
496	pawnbroker transaction form on the pawnshop premises for at
497	least 1 year after the date of the transaction. However, the
498	pawnbroker transaction form for any property that is still on or
499	within the pawnshop premises after 1 year must remain on or
500	within the pawnshop premises until such time as all property
501	listed on the pawnbroker transaction form is removed from the
502	pawnshop premises.On or before the end of each business day,
503	the pawnbroker must deliver to the appropriate law enforcement
504	official the original pawnbroker transaction forms for each of
505	the transactions occurring during the previous business day,
506	unless other arrangements have been agreed upon between the
507	pawnbroker and the appropriate law enforcement official. If the
508	original transaction form is lost or destroyed by the
509	appropriate law enforcement official, a copy may be used by the
510	pawnbroker as evidence in court. When an electronic image of a
511	pledgor or seller identification is accepted for a transaction,
512	the pawnbroker must maintain the electronic image in order to
513	meet the same recordkeeping requirements as for the original
514	transaction form. If a criminal investigation occurs, the
515	pawnbroker shall, upon request, provide a clear and legible copy
516	of the image to the appropriate law enforcement official.
517	(b) If the appropriate law enforcement agency supplies the
518	appropriate software and the pawnbroker presently has the
519	computer ability, pawn transactions shall be electronically
520	transferred. If a pawnbroker does not presently have the
521	computer ability, the appropriate law enforcement agency may
522	provide the pawnbroker with a computer and all necessary
523	equipment for the purpose of electronically transferring pawn
524	transactions. The appropriate law enforcement agency shall
525	retain ownership of the computer, unless otherwise agreed upon.
526	The pawnbroker shall maintain the computer in good working
527	order, ordinary wear and tear excepted. In the event the
528	pawnbroker transfers pawn transactions electronically, the
529	pawnbroker is not required to also deliver to the appropriate
530	law enforcement official the original or copies of the
531	pawnbroker transaction forms. The appropriate law enforcement
532	official may, for the purposes of a criminal investigation,
533	request that the pawnbroker produce an original of a transaction
534	form that has been electronically transferred. The pawnbroker
535	shall deliver this form to the appropriate law enforcement
536	official within 24 hours of the request.
537	(c) All goods delivered to a pawnbroker in a pawn or
538	purchase transaction must be securely stored and maintained in
539	an unaltered condition within the jurisdiction of the
540	appropriate law enforcement official for a period of 30 calendar
541	days after the transaction. Those goods delivered to a
542	pawnbroker in a purchase transaction may not be sold or
543	otherwise disposed of before the expiration of such period. The
544	pawnbroker shall make all pledged and purchased goods and all
545	records relating to such goods available for inspection by the
546	appropriate law enforcement official during normal business
547	hours throughout such period. The pawnbroker must store and
548	maintain pledged goods for the period prescribed in subsection
549	(10) unless the pledged goods are redeemed earlier; provided,
550	however, that within the first 30 days after the original pawn,
551	the pledged goods may be redeemed only by the pledgor or the
552	pledgor's attorney in fact.
553	(d) All property on or within the pawnshop premises shall
554	be labeled with the pawnbroker transaction form number that was
555	assigned by the pawnbroker at the time the property was obtained
556	by the pawnbroker through a pawn or purchase transaction or an
557	inventory number from the invoice of goods acquired from a
558	permitted vendor.
559	(10) PLEDGED GOODS NOT REDEEMED.--Pledged goods not
560	redeemed by the pledgor on or before the maturity date of a pawn
561	must be held by the pawnbroker for at least 30 days following
562	such date or until the next business day, if the 30th day is not
563	a business day. Pledged goods not redeemed within the 30-day
564	period following the maturity date of a pawn are automatically
565	forfeited to the pawnbroker; absolute right, title, and interest
566	in and to the goods shall vest in and shall be deemed conveyed
567	to the pawnbroker by operation of law; and no further notice is
568	necessary. A pledgor has no obligation to redeem pledged goods
569	or make any payment on a pawn.
570	(11) PAWN SERVICE CHARGES.--
571	(a) In a pawn transaction, a pawnbroker may contract for
572	and receive a pawn service charge. The interest component of the
573	pawn service charge shall be deemed to be 2 percent of the
574	amount financed for each 30-day period in a pawn transaction.
575	The pawnbroker may charge any amount of pawn service charge, so
576	long as the total amount, inclusive of the interest component,
577	does not exceed 25 percent of the amount financed for each 30-
578	day period in a pawn transaction, except that the pawnbroker is
579	entitled to receive a minimum pawn service charge of $5 for each
580	such 30-day period.
581	(b) The default date of any pawn may be extended to a
582	subsequent date by mutual agreement, between the pledgor and the
583	pawnbroker except the pawnbroker may not impose a minimum
584	duration of more than 30 days, evidenced by a written
585	memorandum, a copy of which must be supplied to the pledgor,
586	which must clearly specify the new default date, and the pawn
587	service charges owed on the new default date. In this event, the
588	daily pawn service charge for the extension shall be equal to
589	the pawn service charge for the original 30-day period divided
590	by 30 days (i.e., one-thirtieth of the original total pawn
591	service charge). There is no limit on the number of extensions
592	that the parties may agree to.
593	(c) The total amount of pawn service charges that a
594	pawnbroker may collect in the case of pledged goods redeemed at
595	any time within 30 days after the date of the pawn is the amount
596	provided in paragraph (a). The total amount of pawn service
597	charges that a pawnbroker may collect in the case of redemptions
598	occurring at any time more than 30 days after the date of the
599	pawn is twice the amount provided in paragraph (a), except that,
600	for redemptions occurring more than 60 days after the date of
601	the pawn, pawn service charges continue to accrue from and after
602	the 60th day at the daily rate determined as provided in
603	paragraph (b). Any unused pawn service charge paid in advance by
604	the pledgor shall be refunded by the pawnbroker.
605	(d) Pledged goods may be redeemed by mail by agreement
606	between the pledgor and the pawnbroker. The pledgor must pay in
607	advance all moneys due and a reasonable charge assessed by the
608	pawnbroker to recover its cost and expenses involved in the
609	packaging, insuring, and shipping of the pledged goods. The
610	pawnbroker shall insure the pledged goods in an amount
611	acceptable to the pledgor. The pawnbroker's liability for loss
612	or damage in connection with the shipment of such pledged goods
613	is limited to the amount of the insurance coverage obtained.
614	(e) Any interest, charge, or fees contracted for or
615	received, directly or indirectly, in excess of the amounts
616	authorized under this section are prohibited, may not be
617	collected, and render the pawn transaction voidable, in which
618	case the pawnbroker shall forfeit the right to collect twice the
619	amount of the pawn service charge contracted for in the pawn
620	and, upon the pledgor's written request received by the
621	pawnbroker within 30 days after the maturity date, shall be
622	obligated to return to the pledgor the pledged goods delivered
623	to the pawnbroker in connection with the pawn upon payment of
624	the balance remaining due, provided that there shall be no
625	penalty for a violation resulting from an accidental and bona
626	fide error that is corrected upon discovery. Any action to
627	circumvent the limitation on pawn service charges collectible
628	under this section is voidable. In the event a pledgor makes a
629	partial payment on a pawn that reduces the amount financed, any
630	additional pawn service charges shall be calculated on the
631	remaining balance of the original amount financed.
632	(12) PROHIBITED ACTS.--A pawnbroker, or an employee or
633	agent of a pawnbroker, may not:
634	(a) Falsify or intentionally fail to make an entry of any
635	material matter in a pawnbroker transaction form.
636	(b) Refuse to allow the agency, the appropriate law
637	enforcement official, or the state attorney, or any of their
638	designated representatives having jurisdiction, to inspect
639	completed pawnbroker transaction forms or pledged or purchased
640	goods during the ordinary hours of the pawnbroker's business or
641	other time acceptable to both parties. The appropriate law
642	enforcement official shall disclose to a claimant the name and
643	address of the pawnbroker, the name and address of the conveying
644	customer, and a description of pawned, purchased, or consigned
645	goods that the claimant claims to be misappropriated.
646	(c) Obliterate, discard, or destroy a completed pawnbroker
647	transaction form sooner than 3 years after the date of the
648	transaction.
649	(d) Accept a pledge or purchase property from a person
650	under the age of 18 years.
651	(e) Make any agreement requiring or allowing the personal
652	liability of a pledgor or the waiver of any of the provisions of
653	this section.
654	(f) Knowingly enter into a pawn or purchase transaction
655	with any person who is under the influence of alcohol or
656	controlled substances when such condition is apparent, or with
657	any person using the name of another or the registered name of
658	another's business.
659	(g) Conduct any pawn or purchase transaction at a drive-
660	through window or similar device in which the customer remains
661	in a vehicle while conducting the transaction.
662	(h) Fail to return or replace pledged goods to a pledgor
663	upon payment of the full amount due the pawnbroker, unless the
664	pledged goods have been placed under a hold order under
665	subsection (16), or taken into custody by a court or otherwise
666	disposed of by court order.
667	(i) Sell or otherwise charge for insurance in connection
668	with a pawn transaction, except in connection with the shipment
669	of pledged goods redeemed by mail as provided in subsection
670	(11).
671	(j) Engage in title loan agreements, as defined in s.
672	537.003, or title loantransactions at, within, or adjoining a
673	licensed pawnshop location.
674	(k) Lease pledged goods to the pledgor or any other party.
675	(l) Operate a pawnshop between the hours of 10 p.m. and 7
676	a.m.
677	(m) Knowingly hire anyone to work in a pawnshop who has
678	been convicted of, or entered a plea of guilty or nolo
679	contendere to, or had adjudication withheld for a felony within
680	the last 5 years, or been convicted of, or entered a plea of
681	guilty or nolo contendere to, or had adjudication withheld for a
682	crime within the last 5 years which involves theft, larceny,
683	dealing in stolen property, receiving stolen property, burglary,
684	embezzlement, obtaining property by false pretenses, possession
685	of altered property, or any fraudulent, or dishonest dealing.
686	(n) Knowingly accept or receive misappropriated property
687	from a conveying customer in a pawn or purchase transaction.
688	(13) RIGHT TO REDEEM; LOST PAWNBROKER TRANSACTION FORM.--
689	(a) Only a pledgor or a pledgor's authorized
690	representative is entitled to redeem the pledged goods described
691	in the pawnbroker transaction form; however, if the pawnbroker
692	determines that the person is not the original pledgor, or the
693	pledgor's authorized representative, the pawnbroker is not
694	required to allow the redemption of the pledged goods by such
695	person. The person redeeming the pledged goods must sign the
696	pledgor's copy of the pawnbroker transaction form, which the
697	pawnbroker may retain as evidence of the person's receipt of the
698	pledged goods. If the person redeeming the pledged goods is the
699	pledgor's authorized representative, that person must present
700	notarized authorization from the original pledgor and show
701	identification to the pawnbroker and the pawnbroker shall record
702	that person's name and address on the pawnbroker transaction
703	form retained by the pawnshop. It is the pawnbroker's
704	responsibility to verify that the person redeeming the pledged
705	goods is either the pledgor or the pledgor's authorized
706	representative.
707	(b) If a pledgor's copy of the pawnbroker transaction form
708	is lost, destroyed, or stolen, the pledgor must notify the
709	pawnbroker in writing by certified or registered mail, return
710	receipt requested, or in person evidenced by a signed receipt,
711	and receipt of this notice invalidates the pawnbroker
712	transaction form if the pledged goods have not previously been
713	redeemed. Before delivering the pledged goods or issuing a new
714	pawnbroker transaction form, the pawnbroker must require the
715	pledgor to make a written statement of the loss, destruction, or
716	theft of the pledgor's copy of the pawnbroker transaction form.
717	The pawnbroker must record on the written statement the type of
718	identification and the identification number accepted from the
719	pledgor, the date the statement is given, and the number of the
720	pawnbroker transaction form that was lost, destroyed, or stolen.
721	The statement must be signed by the pawnbroker or the pawnshop
722	employee who accepts the statement from the pledgor. A
723	pawnbroker is entitled to a fee not to exceed $2 in connection
724	with each lost, destroyed, or stolen pawnbroker transaction form
725	and the taking of a properly prepared written statement.
726	(c) Sales tax is not due or collectible in connection with
727	the redemption of pledged goods.
728	(d) If pledged goods are lost or damaged while in the
729	possession of the pawnbroker, the pawnbroker may satisfy the
730	pledgor's claim by replacing the lost or damaged goods with like
731	kinds of merchandise of equal value, with which the pledgor can
732	reasonably replace the goods. Such replacement is a defense to
733	any civil action based upon the loss or damage of the goods.
734	(14) PAWNBROKER'S LIEN.--A pawnbroker has a possessory
735	lien on the pledged goods pawned as security for the funds
736	advanced, the pawn service charge owed, and the other charges
737	authorized under this section, but not for other debts due to
738	the pawnbroker. A pawnbroker has no recourse against a pledgor
739	for payment on a pawn transaction except for the pledged goods
740	themselves. Except as otherwise provided in this section, the
741	pawnbroker must retain possession of the pledged goods until the
742	lien is satisfied or until the default date. The pawnbroker may
743	be compelled to relinquish possession of the pledged goods only
744	after receipt of the applicable funds advanced plus the accrued
745	service charge and other authorized charges, upon court order,
746	or as otherwise provided by law.
747	(15) MISAPPROPRIATED PROPERTY; PETITION FOR RETURN.--
748	(a) If a pawnbroker contests the identification or
749	ownership of property, the person alleging ownership of the
750	property may bring an action for replevin in the county or
751	circuit court by petition in substantially the following form
752	provided that a timely report of the misappropriation of
753	property was made to the proper authorities:
754
755	Plaintiff A. B., sues defendant C. D., and alleges:
756	1. This is an action to recover possession of personal
757	property in _______________ County, Florida.
758	2. The description of the property is: ... (list
759	property) .... To the best of plaintiff's knowledge,
760	information, and belief, the value of the property is
761	$_______________.
762	3. Plaintiff is entitled to the possession of the property
763	under a security agreement dated __________, ... (year) ..., a
764	copy of which is attached.
765	4. To plaintiff's best knowledge, information, and belief,
766	the property is located at ____________________.
767	5. The property is wrongfully detained by defendant.
768	Defendant came into possession of the property by ... (describe
769	method of possession) .... To plaintiff's best knowledge,
770	information, and belief, defendant detains the property because
771	... (give reasons) ....
772	6. The property has not been taken under an execution or
773	attachment against plaintiff's property.
774
775	(b) The filing fees shall be waived by the clerk of the
776	court, and the service fees shall be waived by the sheriff. The
777	court shall award the prevailing party attorney's fees and
778	costs. In addition, when the filing party prevails in the
779	replevin action, the court shall order payment of filing fees to
780	the clerk and service fees to the sheriff.
781	(c) Upon the filing of the petition, the court shall set a
782	hearing to be held at the earliest possible time. Upon the
783	receipt of a petition for a writ by a pawnbroker, the pawnbroker
784	shall hold the property at issue until the court determines the
785	respective interests of the parties.
786	(d) In addition to the civil petition for return remedy,
787	the state may file a motion as part of a pending criminal case
788	related to the property. The criminal court has jurisdiction to
789	determine ownership, to order return or other disposition of the
790	property, and to order any appropriate restitution to any
791	person. Such order shall be entered upon hearing after proper
792	notice has been given to the pawnbroker, the victim, and the
793	defendant in the criminal case.
794	(e) If the pawnbroker does not contest the identification
795	or ownership of the misappropriated property and the claimant of
796	the misappropriated property has not signed a waiver of
797	prosecution with the appropriate law enforcement official for
798	the misappropriation of the property, the pawnbroker shall
799	return the misappropriated property to the claimant of the
800	misappropriated property without monetary compensation from the
801	claimant. The pawnbroker may provide the criminal court of
802	competent jurisdiction a copy of the pawnbroker transaction form
803	and request restitution from the defendant in the criminal
804	proceeding.
805	(15) CLAIMS AGAINST PURCHASED GOODS OR PLEDGED GOODS HELD
806	BY PAWNBROKERS.--
807	(a) To obtain possession of purchased or pledged goods
808	held by a pawnbroker which a claimant claims to be
809	misappropriated, the claimant must notify the pawnbroker by
810	certified mail, return receipt requested, or in person evidenced
811	by signed receipt, of the claimant's claim to the purchased or
812	pledged goods. The notice must contain a complete and accurate
813	description of the purchased or pledged goods and must be
814	accompanied by a legible copy of the applicable law enforcement
815	agency's report on the misappropriation of such property. If the
816	claimant and the pawnbroker do not resolve the matter within 10
817	days after the pawnbroker's receipt of the notice, the claimant
818	may petition the court to order the return of the property,
819	naming the pawnbroker as a defendant, and must serve the
820	pawnbroker with a copy of the petition. The pawnbroker shall
821	hold the property described in the petition until the right to
822	possession is resolved by the parties or by a court of competent
823	jurisdiction. The court shall waive any filing fee for the
824	petition to recover the property, and the sheriff shall waive
825	the service fees.
826	(b) If, after notice and a hearing, the court finds that
827	the property was misappropriated and orders the return of the
828	property to the claimant:
829	1. The claimant may recover from the pawnbroker the cost
830	of the action, including the claimant's reasonable attorney's
831	fees; and
832	2. If the conveying customer is convicted of theft, a
833	violation of this section, or dealing in stolen property, the
834	court shall order the conveying customer to repay the pawnbroker
835	the full amount the conveying customer received from the
836	pawnbroker for the property, plus all applicable pawn service
837	charges. As used in this paragraph, the term "convicted of"
838	includes a plea of nolo contendere to the charges or any
839	agreement in which adjudication is withheld; and
840	3. The conveying customer shall be responsible to pay all
841	attorney's fees and taxable costs incurred by the pawnbroker in
842	defending a replevin action or any other civil matter wherein it
843	is found that the conveying customer was in violation of this
844	paragraph.
845	(c) If the court finds that the claimant failed to comply
846	with the requirements in paragraph (a) or otherwise finds
847	against the claimant, the claimant is liable for the defendants'
848	costs, including reasonable attorney's fees.
849	(d) The sale, pledge, or delivery of tangible personal
850	property to a pawnbroker by any person in this state is
851	considered to be:
852	1. An agreement by the person who sells, pledges, or
853	delivers the tangible personal property that the person is
854	subject to the jurisdiction of the court in all civil actions
855	and proceedings arising out of the pledge or sale transaction
856	filed by either a resident or nonresident plaintiff;
857	2. An appointment of the Secretary of State by any
858	nonresident of this state as that person's lawful attorney and
859	agent upon whom may be served all process in suits pertaining to
860	the actions and proceedings arising out of the sale, pledge, or
861	delivery; and
862	3. An agreement by any nonresident that any process in any
863	suit so served has the same legal force and validity as if
864	personally served in this state.
865	(16) HOLD ORDERS; ISSUANCE; REQUIRED INFORMATION;
866	PROCEDURES.--
867	(a) When an appropriate law enforcement official has
868	probable cause to believe that property in the possession of a
869	pawnbroker is misappropriated, the official may place a written
870	hold order on the property. The written hold order shall impose
871	a holding period not to exceed 90 days unless extended by court
872	order. The appropriate law enforcement official may rescind, in
873	writing, any hold order. An appropriate law enforcement official
874	may place only one hold order on property.
875	(b) Upon the expiration of the holding period, the
876	pawnbroker shall notify, in writing, the appropriatelaw
877	enforcement official who placed the hold orderby certified
878	mail, return receipt requested, that the holding period has
879	expired. If, on the 10th day after the written notice has been
880	received by the appropriate law enforcement official who placed
881	the hold order, the pawnbroker has not received from a court an
882	extension of the hold order on the property and the property is
883	not the subject of a proceeding under subsection (15), title to
884	the property shall vest in and be deemed conveyed by operation
885	of law to the pawnbroker, free of any liability for claims but
886	subject to any restrictions contained in the pawn transaction
887	contract and subject to the provisions of this section.
888	(c) A hold order must specify:
889	1. The name and address of the pawnbroker.
890	2. The name, title, and identification number of the
891	representative of the appropriate law enforcement official or
892	the court placing the hold order.
893	3. If applicable, the name and address of the appropriate
894	law enforcement official or court to which such representative
895	is attached and the number, if any, assigned to the claim
896	regarding the property.
897	4. A complete description of the property to be held,
898	including model number and serial number if applicable.
899	5. The name of the person reporting the property to be
900	misappropriated unless otherwise prohibited by law.
901	6. The mailing address of the pawnbroker where the
902	property is held.
903	7. The expiration date of the holding period.
904	(d) The pawnbroker or the pawnbroker's representative must
905	sign and date a copy of the hold order as evidence of receipt of
906	the hold order and the beginning of the 90-day holding period.
907	(e)1. Except as provided in subparagraph 2., a pawnbroker
908	may not release or dispose of property subject to a hold order
909	except pursuant to a court order, a written release from the
910	appropriate law enforcement official, or the expiration of the
911	holding period of the hold order.
912	2. While a hold order is in effect, the pawnbroker must
913	upon request release the property subject to the hold order to
914	the custody of the appropriate law enforcement official for use
915	in a criminal investigation. The release of the property to the
916	custody of the appropriate law enforcement official is not
917	considered a waiver or release of the pawnbroker's property
918	rights or interest in the property. Upon completion of the
919	criminal proceeding, the property must be returned to the
920	pawnbroker unless the court orders other disposition. When such
921	other disposition is ordered, the court shall additionally order
922	the conveying customer to pay restitution to the pawnbroker in
923	the amount received by the conveying customer for the property
924	together with reasonable attorney's fees and costs.
925	(17) CRIMINAL PENALTIES.--
926	(a) Any person who engages in business as a pawnbroker
927	without first securing a license commits a felony of the third
928	degree, punishable as provided in s. 775.082, s. 775.083, or s.
929	775.084.
930	(b) In addition to any other penalty, any person, who
931	willfully violates this section or who willfully makes a false
932	entry in any record specifically required by this section
933	commits a misdemeanor of the first degree, punishable as
934	provided in s. 775.082 or s. 775.083. Clerical or recordkeeping
935	errors, such as typographical errors or scrivener's errors,
936	regarding any document or record required by this section do not
937	constitute a willful violation of this section, and are not
938	subject to criminal penalties. Clerical or recordkeeping errors
939	are subject to the administrative remedies, as provided in this
940	act.
941	(18) INJUNCTIONS.--When the agency has reasonable cause to
942	believe that a person is violating this section, the agency may
943	enter an order requiring the person to stop the violation. The
944	agency may petition the court to enjoin the person from engaging
945	in the violation, continuing the violation, or doing any act in
946	furtherance of the violation. The court may order a preliminary
947	or permanent injunction.
948	(19) RECORDS OF THE FLORIDA DEPARTMENT OF LAW
949	ENFORCEMENT.--The Department of Law Enforcement, on request,
950	must supply to the agency any arrest and conviction records in
951	its possession of an individual applying for or holding a
952	license under this section.
953	(20) CONFLICTING ORDINANCES.--Any county or municipality
954	may enact ordinances that are in compliance with, but not more
955	restrictive than this section, except that local ordinances may
956	not restrict hours of operations other than between midnight and
957	6 a.m. Any ordinance that conflicts with this subsection is
958	void. Nothing in this section shall affect the authority of a
959	county or municipality to establish land use controls or require
960	a pawnbroker to obtain a local occupational license.
961	(21) RULEMAKING AUTHORITY.--The agency has authority to
962	adopt rules pursuant to chapter 120 to implement the provisions
963	of this section.
964	Section 2. Section 539.002, Florida Statutes, is amended
965	to read:
966	539.002 Applicability.--Chapters 537 and Chapter 538 do
967	doesnot apply to pawnbrokers licensed under the Florida
968	Pawnbroking Act. This act does not abrogate any provision of
969	chapters 671-680.
970	Section 3. This act shall take effect July 1, 2004.