1400: FLOOR ANALYSIS - REGULATION OF PAWNBROKERS

REGULATION OF PAWNBROKERS - S.B. 1400: FLOOR ANALYSIS

Senate Bill 1400 (as reported without amendment)

Committee: Economic Development, International Trade and Regulatory Affairs

CONTENT

The bill would amend Public Act 273 of 1917, which requires the licensure of pawnbrokers in cities and incorporated villages with a population over 3,000, to provide for regulation and licensure by townships, charter townships, counties, cities, and villages (without regard to population).

Currently, a person, corporation, or firm may not carry on the business of pawnbroker in a city or incorporated village having a population over 3,000 without having obtained a license from the mayor of the city or the president of the village where the business is to be carried on. The bill would delete references to cities and incorporated villages and refer, instead, to a "governmental unit". The bill also would delete references to the mayor of a city or president of a village and refer, instead, to the chief executive officer of the governmental unit. ("Governmental unit" would mean a city, township, charter township, county, or incorporated village.)

Before a license is issued, the Act requires the applicant to pay an annual license fee of $250 and to give a $3,000 bond. The Act also permits a city or village council to fix the annual license fee at any amount that is at least $50 but not more than $500. The bill would delete reference to the $250 license fee and permit a governmental unit to fix the license fee at an amount that was at least $50 but not more than $500. In addition, the bill would require a governmental unit to approve the bond.

MCL 446.201 et al. - Legislative Analyst: L. Arasim

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed: 11-20-00 - Fiscal Analyst: D. ZinFloor\sb1400 - Bill Analysis @ http://www.state.mi.us/sfa

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.