HB 0695

CS

CHAMBER ACTION

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

CODING: Words stricken are deletions; words underlined are additions.