Reference is to the bill as introduced.
Amend the bill, as and if amended, by deleting all after the enacting words and inserting:
/ SECTION 1. Chapter 39, Title 40 of the 1976 Code is amended by adding:
"Section 40-39-25.
No person, other than a holder of a certificate of
authority under this chapter, may:
(1) display a sign or
other device in or about the premises of a business, in an
advertising medium, or in printed matter, electronic media, or
any other media:
(a)
bearing a marking that resembles the emblem or sign
commonly used by pawnbrokers; or
(b)
using the words 'pawnbroker,' 'pawnshop,' or 'pawn';
or
(2) hold himself out to
the public to be a pawnbroker, either through advertising,
soliciting, signs or otherwise."
SECTION 2. Chapter 39, Title 40 of the 1976 Code is amended by adding:
"Section 40-39-55.
(A) Effective July 1, 2021, and each
fifth July first thereafter, the dollar amounts in Section
40-39-40(1) and the dollar amounts concerning loans in Section
40-39-100 must be adjusted by the department to reflect the
percentage change for the five-year period in the Consumer Price
Index for All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor.
(B) The administrator
shall publish a notice in the State Register of the changes in
dollar amounts before May first of each year in which dollar
amounts are to change. A person must not be considered to
violate the provisions of this chapter with respect to a
transaction otherwise complying with those provisions if he
relies on dollar amounts appearing in the last notice of the
administrator announcing the dollar amounts current at that
time.
(C) The dollar amounts
may not change more than ten percent for each adjustment
period.
(D) The dollar amounts
in Section 40-39-50(A)(1) and Section 40-39-100(C) are subject
to change in accordance with this section."
SECTION 3. Chapter 39, Title 40 of the 1976 Code is amended by adding:
"Section 40-39-145.
(A)(1) When an appropriate law
enforcement official has probable cause to believe that property
in the possession of a pawnbroker is misappropriated or stolen,
he may place a written hold order on the property. The written
hold order must impose a holding period not to exceed ninety
days unless extended by court order. The appropriate law
enforcement official may rescind, in writing, any hold order. An
appropriate law enforcement official may place only one hold
order on the property at any given time.
(2)
A hold order must specify:
(a)
the name and address of the pawnbroker;
(b)
the name, title, and identification number of the
representative of the appropriate law enforcement official or
the court placing the hold order;
(c)
the name and address of the appropriate law enforcement
official or court to which such representative is attached and
the number, if any, assigned to the claim regarding the
property;
(d)
a complete description of the property to be held,
including model number and serial number if applicable;
(e)
the name of the person reporting the property to be
misappropriated or stolen, unless otherwise prohibited by
law;
(f)
the mailing address of the pawnbroker where the property
is held; and
(g)
the expiration date of the holding period.
(3)
The pawnbroker or his representative must sign and date a
copy of the hold order as evidence of receipt of the hold order
and the beginning of the ninety-day holding period.
(4)(a)
Except as provided in subitem (b), a pawnbroker may not
release or dispose of property subject to a hold order except
pursuant to a court order, a written release from the
appropriate law enforcement official, or the expiration of the
holding period of the hold order.
(b)
While a hold order is in effect, the pawnbroker shall,
upon request, release the property subject to the hold order to
the custody of the appropriate law enforcement official for use
in a criminal investigation. The release of the property to the
custody of the appropriate law enforcement official is not
considered a waiver or release of the pawnbroker's property
rights or interest in the property. Upon completion of the
criminal proceeding, the property must be returned to the
pawnbroker unless the court orders another disposition, in which
case the court additionally shall order the conveying customer
to pay restitution to the pawnbroker in the amount received by
the conveying customer for the property together with reasonable
attorney's fees and costs.
(B) Upon the expiration
of the holding period, the pawnbroker shall notify, in writing,
the appropriate law enforcement official by certified mail,
return receipt requested, that the holding period has expired.
If, on the tenth day after the written notice has been received
by the appropriate law enforcement official, the pawnbroker has
not received from a court an extension of the hold order on the
property and the property is not the subject of a proceeding
under this subsection, title to the property shall vest in and
be deemed conveyed by operation of law to the pawnbroker, free
of any liability for claims but subject to any restrictions
contained in the pawn transaction contract and subject to this
chapter."
SECTION 4. Chapter 39, Title 40 of the 1976 Code is amended by adding:
"Section 40-39-155. A person aggrieved by the final administrative order may request a contested case hearing before the Administrative Law Court pursuant to the court's rules of procedure. If the person fails to timely request a contested case hearing, the department may bring an action to enforce its order pursuant to Chapter 23, Title 1."
SECTION 5. Section 40-39-10(3) of the 1976 Code is amended to read:
"(3) 'Pledged goods' means tangible personal property other than vehicles as defined in Section 56-3-20(1) required to be registered and licensed pursuant to Title 56, choses in action, title, securities, or printed evidences of indebtedness, which property is deposited with or otherwise actually delivered into the possession of a pawnbroker in the course of his business in connection with a pawn transaction."
SECTION 6. Section 40-39-20 of the 1976 Code is amended to read:
"Section 40-39-20.
(A)(1) All pawnbrokers
conducting business in this State are under the authority of and
regulated by the Department of Consumer Affairs, the
administrator of which has the authority to promulgate
regulations as he considers necessary to carry out the
conditions and intent of this chapter.
(2)
No person may carry on the business of a pawnbroker
in any location, whether or not the person has an office,
facility, agent, or other physical presence in this
State, without first having obtained a Certificate of
Authority for each location from the Department of Consumer
Affairs.
(B) Upon receipt
of the application for the Certificate of Authority, the
Department of Consumer Affairs shall notify the law enforcement
agency having jurisdiction where the applicant intends to do
business. The law enforcement agency shall conduct a
criminal background investigation of the applicant and upon its
completion shall make the results of the investigation known to
the administrator of the Department of Consumer Affairs along
with may make its appropriate
recommendation on the issuance of the Certificate of
Authority.
(C)(1) Before
issuance of a certificate of authority, a criminal history
background check must be conducted for all owners, partners,
members, officers, directors, employees and other persons
occupying a similar status or otherwise directly or indirectly
controlling the pawnshop. The applicant pawnbroker is
responsible for either:
(a)
conducting, documenting,
and attesting that a national criminal records check has been
completed for each person; or
(b)
submitting consent from each person to a
national criminal records check and a set of fingerprints in a
form acceptable to the administrator. Using the information
supplied by the administrator to SLED, the applicant must
undergo a national criminal records check, supported by
fingerprints, by the Federal Bureau of Investigation. The
results of these criminal records check must be reported to the
administrator. The administrator shall keep all information
pursuant to this section privileged, in accordance with
applicable state and federal guidelines.
(2)
A pawnbroker shall comply with the requirements
of item (1) before hiring an employee.
(3)
The applicant pawnbroker shall pay actual costs
associated with the criminal history background checks required
in this section.
(D) Upon
the filing of an application for a certificate of authority, if
the administrator concludes that the financial responsibility
and experience of the applicant and its employees, members,
partners, officers, and directors, if applicable, command the
confidence of the community and warrants belief that the
business may be operated honestly, fairly, and efficiently
according to the purposes of this chapter and in accordance with
all applicable state and federal laws, it shall issue a
certificate of authority. If the administrator does not reach
this conclusion, he shall refuse to issue the certificate of
authority to the applicant and shall notify the applicant of the
denial.
(E) A person
convicted of a felony may not be issued a Certificate of
Authority to carry on the business of a pawnbroker or in any
manner engage in the business of a pawnbroker, except that any
person who is in the business of a pawnbroker on July 1, 1988,
and who has been convicted of a felony before this date may be
issued a Certificate of Authority and upon receiving it may
continue in the business of a pawnbroker but if this person is
convicted of a felony on or after July 1, 1988, he may not
thereafter be issued a Certificate of Authority or carry on the
business of a pawnbroker after the date of this subsequent
felony conviction.
(F)(1) A
pawnbroker may not employ a person convicted of a felony to
carry on the business of a pawnbroker or in any manner engage in
the business of a pawnbroker, unless the person:
(a)
is an employee of a pawnbroker on the effective
date of this section and subsequently has not been convicted of
a felony; or
(b)
is not an employee of a pawnbroker on the
effective date of this section and the felony conviction
occurred more than ten years before the person's application for
employment.
(2)
Subject to the provisions of item (1), a person
who is convicted of a felony is not be eligible for employment
with a pawnbroker or to engage in the business of a pawnbroker
until a period of ten years after the conviction elapses without
another felony conviction."
SECTION 7. Section 40-39-30 of the 1976 Code is amended to read:
"Section 40-39-30.
(A) No person may carry on the
business of a pawnbroker in any location other than the one
designated in his Certificate of Authority, under penalty of
administrative fine, revocation of his Certificate of Authority,
or other action by the administrator pursuant to regulation or
criminal prosecution as set out in this chapter.
(B) No
pawnbroker may retain pledged goods in a location other than the
location designated in the certificate of authority without
first filing a notification with the department. A request made
pursuant to this subsection must be on a form prescribed by the
department.
(C) A
pawnbroker conspicuously shall post the hours of operation and
any closure at each location."
SECTION 8. Section 40-39-40 of the 1976 Code is amended to read:
"Section 40-39-40.
(A) No pawnbroker may charge or
collect any fees, costs, or assessments of any kind or nature
other than those specifically allowed under this chapter.
(B) A person
who makes a pawn transaction in violation of this chapter:
(1)
may not collect, receive, or retain any interest
or charges on the loan in violation of this chapter; and
(2)
has no right to possess the pledged
goods."
SECTION 9. Section 40-39-50 of the 1976 Code is amended to read:
"Section 40-39-50.
(A) Every
A person seeking a certificate of authority to carry on
the business of a pawnbroker shall at the time of application
for his certificate file with the Department of Consumer
Affairs:
(1)
a bond in favor of the department to be executed by
the person granted the certificate and by two
responsible sureties or by a surety company
licensed to do business in this State in the penal sum of
five fifteen thousand dollars to be
approved by the administrator. The bond must be conditioned for
the faithful performance of the duties and obligations
pertaining to the business so authorized. In lieu of the
above, other evidence of financial responsibility approved by
the administrator must be submitted, including, but not limited
to, letters of credit or certificates of deposit. Each applicant
shall also file proof of his net worth which must be a minimum
of thirty-five thousand dollars until that time as liability
insurance covering the contents of the pawn location is secured
by the pawnbroker. The amount of the liability insurance
required must be set by regulations promulgated by the
administrator.; and
(2)
proof of adequate insurance coverage for all
pledged goods in the event of loss by fire, theft, burglary or
otherwise, or liability to the pledgor.
(B)
Within twenty-one calendar days after the occurrence of
an event that may affect pledged goods, including, but not
limited to, fire, theft, or judicial proceedings, a pawnbroker
shall file a written notice on a form prescribed by the
department describing the event and its expected impact upon the
business."
SECTION 10. Section 40-39-70 of the 1976 Code is amended to read:
"Section 40-39-70.
(A) Every
A pawnbroker shall keep a record, at the time of any loan
or purchase, containing an account and description of the
goods, articles, or things pawned, pledged, or purchased, the
amount of money loaned thereon, the time of pledging them, the
charges, or the rate of interest to be paid on the loan, and the
name and residence of the person selling, pawning,
or pledging the goods, articles, or things.
(B) Before a
pledge or purchase, the pawnbroker shall verify the identity of
the pledgor or seller by reviewing a state-issued or federally
issued photographic identification card, including a United
States military identification card, or a passport issued by the
United States.
(C) A
pawn or purchase transaction must be performed by the owner of
the property, or his authorized agent, whose identity and agency
relationship must be verified by the pawnbroker."
SECTION 11. Section
40-39-80 of the 1976 Code is amended to read:
"Section 40-39-80.
(A) Every
A pawnbroker, at the time of each loan or
purchase, shall deliver to the person selling,
pawning, or pledging any articles, at no charge, a
memorandum signed by the pawnbroker and the person pawning or
pledging any articles containing the substance of the entry
required by Section 40-39-70. If the memorandum is lost, the
pledgor may receive a duplicate upon payment of a fee not
exceeding three dollars. The administrator may prescribe the
form to be used.
(B)(1) The
pawn ticket for a pledge or purchase transaction must satisfy
the requirements of the Truth in Lending Act and Regulation Z,
must identify whether the transaction is a pawn or purchase, and
at a minimum must include:
(a)
the name and address of the pledgor or
seller;
(b)
the date of birth of the pledgor or seller;
(c)
the driver's license number or other state or
federal government-issued photographic identification number of
the pledgor or seller;
(d)
the transaction date;
(e)
the transaction maturity date;
(f)
the amount financed or purchase price;
(g)
the finance charge;
(h)
the total of payments;
(i)
the annual percentage
rate;
(j)
a statement of the pledgor
or seller that the pledgor or seller is the lawful owner of the
pledged or sold property;
(k)
the name and business address of the pawnbroker;
and
(l)
a complete and accurate
description of the pledged or purchased goods including any
applicable:
(i)
brand name;
(ii)
model number;
(iii)
manufacturer's
serial number, if issued by the manufacturer and not
intentionally defaced, altered or removed;
(iv)
size;
(v)
color, as apparent to the
untrained eye, not applicable to diamonds;
(vi)
precious metal type,
weight, and content, if known or indicated;
(vii)
gemstone color and
shape, as apparent to the untrained eye, and number of
stones;
(viii)
type of action, caliber or gauge, number
of barrels, barrel length and finish if the item is a firearm;
and
(ix)
any other unique markings,
numbers, names, or letters.
(2)
In addition to the requirements of item (1), the
pledgor or seller shall sign the form after the pawnbroker
confirms positive identification of the pledgor or seller.
(3)
Notwithstanding the provisions of subsection
(B)(1)(i) through (ix), in the case of multiple items of a
similar nature delivered together in one transaction which do
not bear serial or model numbers and which do not include
precious metals or gemstones, such as musical or video
recordings, books, and hand tools, the description of the items
is adequate if it contains the quantity of items and a
description of the type of items delivered."
SECTION 12. Section 40-39-100 of the 1976 Code is amended to read:
"Section 40-39-100.
(A)
Pawnbrokers A pawnbroker may
charge interest on loans not exceeding the following
amounts:
(1) at the rate of two
dollars and fifty cents per thirty-day period for each ten
dollars loaned for the first fifty dollars loaned;
(2) at the rate of two
dollars per thirty-day period for each ten dollars loaned on
that portion of the loan exceeding fifty dollars but not
exceeding one hundred dollars;
(3) at the rate of one
dollar and fifty cents per thirty-day period for each ten
dollars loaned on that portion of the loan exceeding one hundred
dollars but not exceeding two hundred dollars;
(4) at the rate of one
dollar per thirty-day period for each ten dollars loaned on that
portion of the loan exceeding two hundred dollars but not
exceeding one thousand dollars;
(5) at the rate of
fifty cents per thirty-day period for each ten dollars loaned on
that portion of the loan exceeding one thousand dollars but not
exceeding two thousand dollars the maximum
amount in subsection (C).
(B) No
pawnbroker may separate or divide a pawn transaction into two or
more transactions for the purpose or with the effect of
obtaining a total pawn interest rate in excess of that
authorized for an amount financed equal to the total of the
amounts financed in the resulting transactions.
(C) No
pawnbroker may make a loan in excess of two
fifteen thousand dollars. Every pawnbroker shall post
these the rates in a form which is
prescribed by the administrator. The following statement must be
included in the posted rate schedule:
'Consumers: All pawnbrokers operating in
South Carolina are required by law to post a schedule showing
the maximum rate of LOAN FINANCE CHARGES stated as dollars for
each ten dollars for each thirty-day period that the pawnbroker
intends to charge for various types of pawn transactions. The
purpose of this requirement is to assist you in comparing the
maximum rates that pawnbrokers charge, thereby furthering your
understanding of the terms of pawn transactions and helping you
to avoid the uninformed use of credit.
NOTE: Pawnbrokers are prohibited only from
granting credit at rates higher than those specified above. A
pawnbroker may be willing to grant you credit at rates that are
lower than those specified, depending on the amount, terms,
collateral, and your credit worthiness.'"
SECTION 13. Section 40-39-120 of the 1976 Code is amended to read:
"Section 40-39-120.
(A) Each
A pawnbroker applying for a Certificate of Authority
shall tender to the department a fee of two hundred seventy-five
dollars plus all other applicable fees required by other
agencies to process the application. The administrator may
revoke any Certificate of Authority if the pawnbroker has
violated this chapter or any regulation or order lawfully made
pursuant to this chapter, or if facts or conditions exist which
would clearly have justified the administrator in refusing to
grant a Certificate of Authority had these facts or conditions
been known to exist at the time the application for Certificate
of Authority was made. The administrator may promulgate
regulations for obtaining and revoking the Certificate of
Authority. Certificates of Authority must be renewed on a yearly
basis. Applications for renewal must be accompanied by a renewal
fee of two hundred seventy-five dollars.
(B) If a
pawnbroker's certificate of authority is not renewed before June
thirtieth, the administrator shall assess the pawnbroker in
addition to the renewal in subsection (A). If a pawnbroker
fails to renew his certificate of authority within thirty days
after the date the certificate of authority expires or otherwise
maintain a valid certificate of authority, the administrator
shall require the pawnbroker to comply with the requirements for
the initial issuance of a certificate of authority pursuant to
this chapter, in addition to any assessment that has
accrued.
(C) In
the event of closure because of surrender or revocation of a
certificate of authority, a pawnbroker shall, for the sole
purpose of allowing a pledgor to redeem pledged goods, maintain
usual business hours at the pawnshop for ninety days after the
latest maturity date of a pawn transaction made at that pawnshop
or transfer of pledged goods to a pawnbroker with a valid
certificate of authority."
SECTION 14. Section 40-39-140 of the 1976 Code is amended to read:
"Section 40-39-140.
(A) No pawnbroker shall accept
property from a pledgor or seller upon which there is
evidence of ownership by a third party without first taking
reasonable steps to ascertain its true ownership. Any such item
accepted for pawn or purchased by a pawnbroker must be
returned on demand without fee to the third party owner.
(B)(1) If
property in the possession of a pawnbroker was leased to a
pledgor or seller when the pledgor or seller pledged or sold the
property to the pawnbroker and the property did not have a
permanent label or other conspicuous mark identifying it as the
lessor's property, the pawnbroker shall return the property to
the lessor if the lessor:
(a)
provides the pawnbroker with evidence that the
property was the lessor's property and was leased to the pledgor
or seller at the time the property was pledged or sold to the
pawnbroker; and
(b)
pays the pawnbroker:
(i)
the amount financed and the
finance fee for the pawn transaction, if the property was
pledged to the pawnbroker; or
(ii)
the amount that the pawnbroker paid the seller
if the property was sold to the pawnbroker.
(2)
A pawnbroker is not liable to the pledgor or
seller of property that is recovered by a lessor under item (1)
for returning the property to a lessor."
SECTION 15. Section 40-39-150 of the 1976 Code is amended to read:
"Section 40-39-150.
(A) Upon finding that an action of a pawnbroker is in
violation of the provisions of this chapter or of a law or
regulation of this State or of the federal government or an
agency of the state or federal government, the administrator
may file a request with the Administrative Law Court for
a contested case hearing in which the administrator may
seek issue an administrative order
requiring the pawnbroker to cease and desist from the action
and may suspend, revoke, or refuse to issue a certificate of
authority by order.
(B) The administrative law
judge administrator also may
impose issue an administrative order
imposing administrative fines
penalties of up to seven hundred fifty dollars for each
offense upon persons violating any of the provisions of this
chapter up to a maximum of fifteen thousand dollars for the same
set of transactions or occurrences. Each violation constitutes a
separate offense. In addition, a person violating the provisions
of Sections 40-39-20 and 40-39-30 is guilty of a misdemeanor
and, upon conviction, must be punished by a fine not exceeding
one thousand dollars or by imprisonment for a term not exceeding
sixty days, or both. The administrative law judge may
revoke or suspend a pawnbroker's certificate of authority in
addition to the penalties provided in this section.
A determination by the administrator in this subsection is
subject to the appellate process in the Administrative
Procedures Act."
SECTION 16. A county or municipality may enact ordinances that are in compliance with, but not more restrictive than the provisions of this act, except that local ordinances may not require the payment of a fee or tax related to a pawn transaction or purchase unless authorized pursuant to this chapter or restrict hours of operation other than between midnight and 6:00 a.m. An ordinance that conflicts with this act is void. This act does not affect the authority of a county or municipality to establish land use controls or require a pawnbroker to obtain a local occupational license.
SECTION 17. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.