SENATE BILL No. 116

February 6, 2001, Introduced by Senator SCHUETTE 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 and

3 incorporated villages CERTAIN GOVERNMENTAL UNITS of this state;

4 , having a population of more than 3,000 AND TO PRESCRIBE CER-

5 TAIN POWERS AND DUTIES OF CERTAIN LOCAL GOVERNMENTAL UNITS AND

6 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. A PERSON, CORPORATION,

8 OR FIRM CARRYING ON THE BUSINESS OF PAWNBROKER THAT WAS NOT

9 REQUIRED TO OBTAIN A LICENSE BEFORE THE EFFECTIVE DATE OF THE

10 AMENDATORY ACT THAT ADDED THIS SENTENCE SHALL OBTAIN A LICENSE

11 WITHIN 180 DAYS AFTER THAT EFFECTIVE DATE.

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

13 such village CHIEF EXECUTIVE OFFICER OF THE GOVERNMENTAL UNIT

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

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

16 corporation, or firm , a license authorizing such THAT

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

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

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

20 said city or incorporated village THE GOVERNMENTAL UNIT where

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

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

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

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

25 said THE license. Said

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

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

3 and shall IS not be transferable.

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

5 issued the person applying therefor THE APPLICANT shall pay to

6 the treasurer of the city or incorporated village GOVERNMENTAL

7 UNIT an annual license fee of 250 dollars, IN THE AMOUNT DETER-

8 MINED UNDER SUBSECTION (5) and shall give a bond to the said

9 city or incorporated village GOVERNMENTAL UNIT in its corporate

10 name, in the penal sum of 3,000 dollars $3,000.00, with at

11 least 2 sureties, to be approved by the city or village council

12 conditioned for the faithful performance of the duties and obli-

13 gations pertaining to the said CONDUCT OF THE business and for

14 the payment of all costs and damages incurred by any violation of

15 this act. : Provided, That it shall be within the power of the

16 common council of any city or village to THE GOVERNMENTAL UNIT

17 SHALL APPROVE THE BOND.

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

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

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

21 (6) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, THE

22 AUTHORITY OF A GOVERNMENTAL UNIT TO ISSUE A LICENSE UNDER THIS

23 ACT IS LIMITED AS FOLLOWS:

24 (A) A COUNTY MAY NOT ISSUE A LICENSE FOR A LOCATION WITHIN A

25 CITY OR VILLAGE WITH A POPULATION GREATER THAN 3,000.

26 (B) A COUNTY MAY NOT ISSUE A LICENSE FOR A LOCATION WITHIN A

27 CITY OR VILLAGE WITH A POPULATION OF 3,000 OR LESS OR WITHIN A

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1 TOWNSHIP OR CHARTER TOWNSHIP IF THAT CITY, VILLAGE, TOWNSHIP, OR

2 CHARTER TOWNSHIP HAS ESTABLISHED THE LICENSE FEE PURSUANT TO SUB-

3 SECTION (5).

4 (C) A TOWNSHIP OR CHARTER TOWNSHIP MAY NOT ISSUE A LICENSE

5 FOR A LOCATION WITHIN A VILLAGE WITH A POPULATION OVER 3,000 OR A

6 VILLAGE WITH A POPULATION OF 3,000 OR LESS THAT HAS ESTABLISHED A

7 FEE UNDER SUBSECTION (5).

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

9 (A) "CHIEF EXECUTIVE OFFICER" MEANS ANY OF THE FOLLOWING:

10 (i) FOR A CITY, THE MAYOR.

11 (ii) FOR A VILLAGE, THE VILLAGE PRESIDENT.

12 (iii) FOR A TOWNSHIP OR CHARTER TOWNSHIP, THE TOWNSHIP

13 SUPERVISOR.

14 (iv) FOR A COUNTY, THE COUNTY EXECUTIVE OR, IF THERE IS NO

15 COUNTY EXECUTIVE, THE PERSON DESIGNATED BY A RESOLUTION OF THE

16 COUNTY BOARD OF COMMISSIONERS.

17 (B) "GOVERNMENTAL UNIT" MEANS A CITY, TOWNSHIP, CHARTER

18 TOWNSHIP, COUNTY, OR INCORPORATED VILLAGE.

19 (C) "PAWNBROKER" MEANS A person, corporation, or member, or

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

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

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

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

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

25 , is hereby defined to be a pawnbroker.

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

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

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

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

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

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

5 license number, official state personal identification card

6 number, or government identification number of the person from

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

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

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

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

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

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

13 village GOVERNMENTAL UNIT is situated, or the department of

14 state police.

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

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

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

18 pawnbroker that substantially complies with the form described in

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

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

21 shall contain all applicable information required to complete the

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

23 does not prohibit the use and transmission of the information

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

25 other electronic media as permitted by the local police agency

26 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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