SENATE BILL No. 1400

September 28, 2000, Introduced by Senators SHUGARS, SCHUETTE, HAMMERSTROM, SIKKEMA and GOUGEON and referred to the Committee on Economic Development, International Trade and Regulatory Affairs.

A bill to amend 1917 PA 273, entitled

"An act to regulate and license pawnbrokers in cities and incor-

porated villages of this state, having a population of more than

3,000,"

by amending the title and sections 1, 2, 3, 5, 6, 8, and 19

(MCL 446.201, 446.202, 446.203, 446.205, 446.206, 446.208, and

446.219), section 5 as amended by 1998 PA 233.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 TITLE

2 An act to regulate and license pawnbrokers in cities, TOWN-

3 SHIPS, CHARTER TOWNSHIPS, COUNTIES, and incorporated villages of

4 this state; , having a population of more than 3,000 AND TO

5 PRESCRIBE CERTAIN POWERS AND DUTIES OF CERTAIN LOCAL GOVERNMENTAL

6 UNITS AND STATE AGENCIES.

7 Sec. 1. No A person, corporation, or firm shall

8 hereafter NOT carry on the business of pawnbroker in any of the

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1 cities or incorporated villages GOVERNMENTAL UNITS of this

2 state , having a population of more than 3,000, without having

3 first obtained from the mayor of the city or president of the

4 village CHIEF EXECUTIVE OFFICER OF THE GOVERNMENTAL UNIT where

5 the business is to be carried on, a license subject to the provi-

6 sions of this act, authorizing such THAT person, corporation,

7 or firm to carry on such THAT business.

8 Sec. 2. (1) The mayor of any such city or president of

9 such village CHIEF EXECUTIVE OFFICER OF THE GOVERNMENTAL UNIT

10 may from time to time grant under his OR HER hand, and the

11 official seal of his OR HER office, to any suitable person,

12 corporation, or firm , a license authorizing such THAT

13 person, corporation, or firm to carry on CONDUCT the business

14 of a pawnbroker subject to the provisions of this act. Said

15 (2) THE license shall designate the particular place in

16 said city or incorporated village THE GOVERNMENTAL UNIT where

17 such THAT person, corporation, or firm shall carry on said

18 CONDUCT THE business. , and no A person, corporation, or firm

19 receiving said A license shall carry on said NOT CONDUCT THE

20 business in any other place than the one PLACE designated in

21 said THE license. Said

22 (3) THE TERM OF license shall be for the period of IS 1

23 year from date of issuance, unless sooner revoked for cause,

24 and shall IS not be transferable.

25 (4) Before any such ISSUANCE OF THE license, shall be

26 issued the person applying therefor THE APPLICANT shall pay to

27 the treasurer of the city or incorporated village GOVERNMENTAL

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1 UNIT an annual license fee of 250 dollars, IN THE AMOUNT

2 DETERMINED UNDER SUBSECTION (5) and shall give a bond to the

3 said city or incorporated village GOVERNMENTAL UNIT in its cor-

4 porate name, in the penal sum of 3,000 dollars $3,000.00, with

5 at least 2 sureties, to be approved by the city or village

6 council conditioned for the faithful performance of the duties

7 and obligations pertaining to the said CONDUCT OF THE business

8 and for the payment of all costs and damages incurred by any vio-

9 lation of this act. : Provided, That it shall be within the

10 power of the common council of any city or village to THE GOV-

11 ERNMENTAL UNIT SHALL APPROVE THE BOND.

12 (5) THE GOVERNMENTAL UNIT MAY fix the amount to be paid as

13 such THE annual license fee at any amount not less than 50

14 dollars, nor $50.00 OR more than 500 dollars $500.00.

15 Sec. 3. Any AS USED IN THIS ACT:

16 (A) "GOVERNMENTAL UNIT" MEANS A CITY, TOWNSHIP, CHARTER

17 TOWNSHIP, COUNTY, OR INCORPORATED VILLAGE.

18 (B) "PAWNBROKER" MEANS A person, corporation, or member, or

19 members of a copartnership or firm, who loans money on deposit,

20 or pledge of personal property, or other valuable thing, other

21 than securities or printed evidence of indebtedness, or who deals

22 in the purchasing of personal property or other valuable thing on

23 condition of selling the same back again at a stipulated price.

24 , is hereby defined to be a pawnbroker.

25 Sec. 5. (1) A pawnbroker shall keep a record in which is

26 written in English, at the time the pawnbroker receives any

27 article of personal property or other valuable thing by way of

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1 pawn, THAT INCLUDES a description of the article, a sequential

2 transaction number, any amount of money loaned thereon ON THE

3 ARTICLE, the name, residence, general description, and driver

4 license number, official state personal identification card

5 number, or government identification number of the person from

6 whom the article was received, and the day and hour when the

7 article was received. The record, the place where the business

8 is carried on, and all articles of property in that place of

9 business are subject to examination at any time by the city

10 attorney OF THE GOVERNMENTAL UNIT, local police agency, the

11 county prosecuting attorney of the county in which the city or

12 village GOVERNMENTAL UNIT is situated, or the department of

13 state police.

14 (2) Upon the receipt of any article of personal property or

15 other valuable thing by way of pawn, the pawnbroker shall make a

16 permanent record of the transaction on a form provided by the

17 pawnbroker that substantially complies with the form described in

18 subsection (4). Each record of transaction shall be completed in

19 duplicate by the pawnbroker, legibly in the English language, and

20 shall contain all applicable information required to complete the

21 record of transaction form under subsection (4). This subsection

22 does not prohibit the use and transmission of the information

23 required in the record of the transaction by means of computer or

24 other electronic media as permitted by the local police agency

25 within the applicable local GOVERNMENTAL unit. of government.

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1 (3) The pawnbroker shall retain a record of each transaction

2 and, within 48 hours after the property is received, shall send 1

3 copy of the record of transaction to the local police agency.

4 (4) The record of transaction form shall be 8-1/2 inches by

5 11 inches in size and shall be as follows:

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1 RECORD OF TRANSACTION

2 FRONT

3 Article | Serial No.

4 ________________________________ |______________________________

5 Model No. or Case No. | Lens No. or Move. No.

6 ________________________________ |______________________________

7 Trade Name | Color | Size | No. Jewels

8 ________________________________ |_________|_______|____________

9 Material | Stone Set Design

10 ____________________________|___________________________________

11 Description | No. | Kind of Stone | Size

12 ____________________________|______|_______________|____________

13 ____________________________|______|_______________|____________

14 Inscription or Initials | | |

15 ____________________________|______|_______________|____________

16 Purchase Price | Amt. Loaned| | |

17 ____________________________

18 Dealer | | |

19 ____________________________|______|_______________|____________

20 City | Date | Ticket No.

21 ____________________________|______________|____________________

22 Lady's [] Gent's [] Wrist [] Pocket [] Lapel []

23 BACK

24 Operator's License # or Other I.D. #

25 _______________________________________________________________

26 Customer's Name (PRINT)

27 _______________________________________________________________

28 Street No. or RFD

29 _______________________________________________________________

30 City and State

31 _______________________________________________________________

32 Employed By: | Rolled print of right thumb|

33 _________________________________| (If impossible then some |

34 Age Height | other fingerprint. |

35 _________________________________| Designate which.) |

36 Weight Race W [] B [] O [] | |

37 _________________________________| |

38 Time Received: AM PM | |

39 _________________________________| |

40 Mail reports within 48 hours to | |

41 local officers |[] Male [] Female|

42 _________________________________| ||

43 Signature of person taking print | |

44 _________________________________| ||

45

46 Sec. 6. Every such A pawnbroker shall make daily, except

47 Sunday, a sworn statement of his OR HER transactions, describing

48 the goods or pledge ARTICLES received, and setting forth the

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1 name, residence, and description of the person from whom the

2 goods or pledge ARTICLES were received, to the chief of police

3 or chief police LAW ENFORCEMENT officer of such city or

4 village THE GOVERNMENTAL UNIT.

5 Sec. 8. A pawnbroker, at the time of such A loan, shall

6 deliver to the person pawning or pledging any goods, article

7 or thing, a memorandum or note signed by him OR HER, containing

8 the substance of the entry required to be made by him OR HER in

9 his OR HER book by section 6. No A charge shall NOT be made or

10 received by any THE pawnbroker for any such THE entry,

11 memorandum, or note. The memorandum or note shall be consecu-

12 tively numbered and upon its back shall be printed in English in

13 12-POINT type as large as that in which the public acts of this

14 state are printed, the following: words: "If interest or

15 charges in excess of 3% per month, plus storage charges

16 hereinafter provided IN THIS DOCUMENT, are asked or received,

17 this loan is void and of no effect; and the borrower cannot be

18 made to pay back the money loaned, or any interest ON THE LOAN,

19 or any charges or any part thereof OF THE CHARGES, and the

20 pawnbroker loses all right to the possession of the goods,

21 article, or thing pawned, and shall surrender the same ITEM to

22 the borrower or pawner upon due demand therefor FOR THE

23 ITEM.".

24 Sec. 19. Upon any such A conviction of any person doing

25 CONDUCTING business as a pawnbroker under the provisions of

26 this act, or on conviction of any clerk, agent, servant, or

27 employe EMPLOYEE of any such THE person, the license of such

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1 person shall forthwith be revoked by the mayor of the city or

2 president of the village, CHIEF EXECUTIVE OFFICER OF THE GOVERN-

3 MENTAL UNIT SHALL REVOKE THE LICENSE OF THE PERSON and no part of

4 the license fee of such party shall be returned to him OR HER.

5 , and no further THE GOVERNMENTAL UNIT SHALL NOT ISSUE A

6 license as a pawnbroker shall be granted to such THAT person

7 for the period of 1 year from the date of such THE revocation.

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