HB 0695

CS

CHAMBER ACTION

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

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