Pawnbrokers and Secondhand Dealers; Proof of Purchase Required
Prohibits pawnbrokers and secondhand dealers from accepting pledged goods or buying merchandise from a person unable to supply proof of ownership of the goods or merchandise, when the fair market value of the goods or merchandise to be pledged or bought is greater than $100.
HOUSE OF REPRESENTATIVES
TWENTY-SECOND LEGISLATURE, 2003
STATE OF HAWAII
A BILL FOR AN ACT
relating to Pawnbrokers and Secondhand Dealers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 445-134.11, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) The pawn transaction agreement shall include:
(1) The name, address, and telephone number of the pawnbroker;
(2) The name, address, telephone number, and date of birth of the customer;
(3) The type of identification presented by the customer;
(4) The pawn transaction number;
(5) The date on which the pawn transaction agreement is signed;
(6) The net amount paid to, received by, or paid or payable for the account of the customer, expressed as the "amount financed";
(7) The dollar amount of the pawn finance charge, expressed as the "finance charge";
(8) The rate of the pawn finance charge as applied to the amount financed, expressed as the "annual percentage rate";
(9) The total amount that must be paid to redeem the pledged goods on or before the maturity date, expressed as the "total of payments";
(10) An identification of pledged goods, including all serial numbers and model numbers, where available, and any other identifying markings or information;
(11) The maturity date of the pawn transaction;
(12) A statement to the effect that the customer is not obligated to redeem the pledged goods, and the pledged goods shall be forfeited to the pawnbroker upon the expiration of the last holding period[
,]; provided that the pledged goods may be redeemed by the customer within the holding period by making payment of the originally agreed total of payments plus an additional pawn finance charge in accordance with section 445-134.12; [ and]
(13) The date on which the holding period expires[
(14) The proof of ownership presented by the customer."
SECTION 2. Section 445-134.13, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) No pawnbroker shall:
(1) Charge or receive any pawn finance charge exceeding twenty per cent a month;
(2) Contract for or receive any amounts other than the pawn finance charge in connection with a pawn transaction;
(3) Accept a pledge or purchase of property from a person under the age of eighteen years;
(4) Accept any waiver, in writing or otherwise, of any right or protection accorded a customer under this part;
(5) Fail to exercise reasonable care to protect pledged goods from loss or damage;
(6) Fail to return pledged goods to a customer within three business days of payment of the full amount due the pawnbroker on the pawn transaction;
(7) Make any charge for insurance, storage, or handling in connection with a pawn transaction;
(8) Enter into a pawn transaction [
which] that has a maturity date more than one month after the date the pawn transaction agreement is signed;
(9) Accept pledged goods or buy merchandise from a person unable to supply [
(A) Proof of ownership of the goods or merchandise, where the fair market value of the goods or merchandise to be pledged or bought is greater than $100; and
(B) Verification of identity by photo identification card, a state-issued identification card, driver's license, or federal government-issued identification card; provided that in addition to [
such] this verification, the pawnbroker shall take the person's thumbprint, and retain the thumbprint on file;
(10) Make any agreement requiring the personal liability of a customer in connection with a pawn transaction or creating any obligation on the part of the customer to redeem pledged goods or make any payment on a pawn transaction;
(11) Allow a customer's pawn account to exceed $10,000. For purposes of this paragraph, "pawn account" means the total accumulation of unpaid pawn finance charges for any single customer; or
(12) Accept vehicles, vessels, or negotiable instruments as pledged goods[
,] or certificates of title or registration of vehicles or vessels as evidence of possession of pledged goods."
SECTION 3. Section 445-171, Hawaii Revised Statutes, is amended to read as follows:
"§445-171 Fee, conditions. (a) The treasurer may grant licenses to suitable persons to be dealers and traders in secondhand articles[
,] and may revoke such licenses for cause satisfactory to the treasurer. The licensees shall pay to the treasurer an annual fee of $10.
(b) Every license granted under this section shall designate the place where the business is carried on and shall continue for one year unless sooner revoked. Every dealer shall keep a book in which shall be written [
(1) A description of every article received[
(2) The name, residence, and a general description of the person from whom, and the time and hour when, the article was received[
(3) The proof of ownership provided by the person from whom the article was received.
The book, the place where the business is carried on, and the articles of property therein, may be examined at any time by the treasurer, the chief of police, or by any person presenting to [
such] the dealer a written authorization so to do from the treasurer or chief of police."
SECTION 4. Section 445-172, Hawaii Revised Statutes, is amended to read as follows:
"§445-172 Prohibitions; penalty. Every person [
(1) Who engages in the business of buying or selling secondhand articles, or who deals therein, unless licensed therefor according to law, or after notice that the person's license has been revoked[
, or who,];
(2) Who, being licensed, neglects to keep the book and make the entries therein prescribed in section 445-171, or who refuses to allow the inspections in the section prescribed[
, or who];
(3) Who purchases or receives by way of exchange any article from any minor, knowing or having reason to believe that the person is a minor[
(4) Who purchases or receives by way of exchange any article from a person unable to supply proof of ownership of the article, when the fair market value of the article to be purchased or received is greater than $100,
shall be fined not more than $100."
SECTION 5. Section 486M-2, Hawaii Revised Statutes, is amended to read as follows:
"§486M-2 Record of transactions. Every dealer, or the agent, employee, or representative of the dealer [
shall], immediately upon receipt of any article, shall record the following information, on a form authorized by the chief of police in each county:
(1) The name and address of the dealer;
(2) The name, residence address, date of birth, and the age of the person from whom the article was received;
(3) The date and time the article was received by the dealer;
(4) The signature of the person from whom the article was received;
(5) The Hawaii [
driver's[ ]] license number, or if the person does not possess a Hawaii [ driver's[ ]] license, the number of and description of any government issued identification [ which] that bears a photograph of the person from whom the article was received;
(6) A complete and accurate description of the article received, including all markings, names, initials, and inscriptions;
(7) A reasonable estimate of the fineness and weights of the precious and semiprecious metals and precious and semiprecious gems received; [
(8) The price paid by the dealer for each article[
(9) The proof of ownership presented by the person from whom the article was received.
Upon request and at the discretion of the chief of police of each county, copies of all completed forms required by this section shall be surrendered, mailed, or electronically inputted and transmitted via modem or by facsimile transmittal to the chief of police or to the chief of police's authorized representative. The method of submittal to the chief of police shall be at the option of the dealer."
SECTION 6. Section 486M-3, Hawaii Revised Statutes, is amended to read as follows:
"§486M-3 Transactions [
by minors] prohibited. A dealer shall not receive or purchase any article [ from]:
(1) From any person under the age of eighteen[
(2) From any person unable to supply proof of ownership of the article, when the fair market value of the article to be received or purchased is greater than $100."
SECTION 7. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect upon its approval.