To repeal sections 367.011, 367.021, 367.031, 367.040, 367.043, 367.044, 367.045, 367.047, 367.048, 367.049, and 367.050, RSMo 1994, relating to pawnshops, and to enact in lieu thereof twelve new sections relating to the same subject, with penalty provisions.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

Section A. Sections 367.011, 367.021, 367.031, 367.040, 367.043, 367.044, 367.045, 367.047, 367.048, 367.049, and 367.050, RSMo 1994, are repealed and twelve new sections enacted in lieu thereof, to be known as sections 367.011, 367.021, 367.031, 367.040, 367.043, 367.044, 367.045, 367.046, 367.047, 367.048, 367.049, and 367.050, to read as follows:

367.011. As used in sections 367.011 to [367.060] 367.050, the following [words] terms mean:

(1) "Appropriate law enforcement official", the sheriff of the county in which the pawnbroker's pawnshop is located, or, in the case of a pawnshop located within a municipality, the police chief of the municipality in which the pawnbroker's pawnshop is located, or the designated representative of such sheriff or police chief;

(2) A person of "good moral character" is a person who:

(a) Has not, within the last ten years, been convicted of or entered a plea of guilty or nolo contendere to any state or federal felony offense involving:

a. Drugs or narcotics;

b. Robbery;

c. Burglary;

d. Auto theft;

e. Stealing;

f. Receiving stolen property;

g. Embezzlement;

h. Extortion;

i. Forgery;

j. Gambling;

k. Bribery;

l. Perjury;

m. Any weapons offense; or

n. Any crime of violence;

(b) Is not on probation or parole for any state or federal felony offense listed in paragraph (a) of this subdivision regardless of the date of the conviction;

(c) Is not a fugitive from justice for any state or federal offense listed in paragraph (a) of this subdivision;

(d) Is not acting as a beneficial owner for someone who has been convicted of a state or federal felony offense listed in paragraph (a) of this subdivision within the last ten years; or

(e) Is not acting as a beneficial owner for someone who is on probation or parole for an offense listed in paragraph (a) of this subdivision regardless of the date of the conviction;

(3) "Identification", a state issued license to operate a motor vehicle, a state issued identification card, a military identification card or a passport. Identification shall not include any temporary licenses;

[(1)] (4) "Month", that period of time from one date in a calendar month to the corresponding date in the following calendar month, but if there is no such corresponding date, then the last day of such following month[, and when computations are made for a fraction of a month, a day shall be one-thirtieth of a month];

[(2)] (5) "Net assets", the book value of the current assets of a person or pawnbroker less its applicable liabilities as stated in this subdivision. Current assets include the investment made in cash, bank deposits, merchandise inventory, and loans due from customers excluding the pawn service charge. Current assets do not include the investments made in fixed assets of real estate, furniture, fixtures, or equipment; investments made in stocks, bonds, or other securities; or investments made in prepaid expenses or other general intangibles. Applicable liabilities include trade or other accounts payable; accrued sales, income, or other taxes; accrued expenses; and notes or other payables that are unsecured or secured in whole or part by current assets. Applicable liabilities do not include liabilities secured by assets other than current assets. Net assets [must] shall be represented by a capital investment unencumbered by any liens or other encumbrances to be subject to the claims of general creditors;

(6) "Pawn transaction", any advancement of funds on the security of pledged goods on condition that the pledged goods are left in the possession of the pawnbroker for the duration of the pawn transaction and may be redeemed by the pledgor for a fixed price within a fixed period of time. For the purposes of all state and federal bankruptcy laws, a pledgor's interest in the pledgor's pledged goods during the pendency of a pawn transaction shall be deemed to be that of a right of redemption only;

(7) "Pawn ticket", the instrument on which a pawnbroker records pawn transactions;

[(3)] (8) "Pawnbroker", any person engaged in the business of [lending money on the security of pledged goods or engaged in the business of purchasing tangible personal property on condition that it may be redeemed or repurchased by the seller for a fixed price within a fixed period of time] conducting pawn transactions;

[(4)] (9) "Pawnshop", the location at which or premises in which a pawnbroker regularly conducts business;

[(5)] (10) "Person", an individual, partnership, corporation, joint venture, trust, association or any other legal entity however organized;

[(6)] (11) "Pledged goods", tangible personal property other than choses in action, 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] the pawnbroker's business in connection with a pawn transaction. For the purposes of this subdivision, "tangible personal property" specifically excludes rights and titles to personal property including, but limited to, motor vehicle titles;

[(7) "Secured personal credit loan", every loan of money made in this state, the payment of which is secured by a security interest in tangible personal property which is physically delivered into the hands of the lender at the time of the making of the loan and which is to be retained by the lender while the loan is a subsisting obligation.]

(12) "Pledgor", a person who pledges the pledged goods to the pawnbroker.

367.021. 1. Subject only to constitutional police regulations, not affecting the [loan fee] pawn service charge and the interest rate authorized by this section, in force in any municipality or county wherein [secured personal credit loans are made] pawn transactions are conducted, any person, natural or corporate, may [make secured personal credit loans] conduct pawn transactions, regardless of the nature and character of any business in which the [lender] pawnbroker may at the time [of making any such loan] be engaged, and regardless of whether the [lender] pawnbroker may at the same time be engaged in making loans in other classifications, at the same, or at a higher or lower, loan fee and interest rate than that authorized by this section to be collected and paid to the [lender on secured personal credit loans] pawnbroker in connection with pawn transactions.

2. The maximum rate of interest which may be charged [for making and carrying any secured personal credit loan] in a pawn transaction shall not exceed two percent per month or any portion of a month on the amount of [such loan] the funds advanced. [Lenders] Pawnbrokers may also charge a pawn service charge for the storage and security of such pledged property.

367.031. 1. At the [time of making any secured personal credit loan] commencement of a pawn transaction, the [lender] pawnbroker shall [execute and] deliver to the [borrower] pledgor a [receipt for and describing the tangible personal property subjected to the security interest to secure the payment of the loan. The receipt] pawn ticket, which shall contain the following information:

(1) The name and address of the pawnshop;

(2) The name [and], address and description of the pledgor[, the] and the pledgor's [description, and the driver's license number, military identification number, identification certificate number, or other official number capable of identifying the pledgor] identification;

(3) The date of the transaction;

(4) [An identification and description of the pledged goods, including serial numbers if reasonably available;] A complete and accurate description of the pledged goods, such description to include, if applicable:

(a) Brand name;

(b) Model number;

(c) Serial number, if issued by the manufacturer and not, to the pawnbroker's knowledge, intentionally defaced, altered or removed;

(d) Size;

(e) Color, other than for diamonds;

(f) Gold content, if indicated;

(g) Precious stone description, including the number of stones; and

(h) Any other unique identifiable feature;

(5) The amount of [cash] the funds advanced [or credit extended] to the pledgor, designated as the amount financed;

(6) [The amount of the pawn service charge;] The sum of the interest and the pawn service charge that is charged pursuant to subsection 2 of section 367.021, designated as the finance charge;

(7) The total amount which must be paid to redeem the pledged goods on the maturity date, designated as the total of payments;

(8) The annual percentage rate computed in accordance with the regulations issued by the Federal Reserve Board of the United States pursuant to the Truth-In-Lending Act, Title I, Act of May 29, 1968, Public Law 90-321, 82 Stat. 146, as amended;

(9) The maturity date of the pawn transaction; [and

(9)] (10) A statement [to the effect] from the pledgor that the pledgor has good title to the property, has the right to pledge the property, is not obligated to redeem the pledged goods, and acknowledges that the pledged goods may be forfeited to the pawnbroker sixty days after the [specified] maturity date[.] of the pawn transaction;

(11) The statement that "I, the pledgor, declares under penalty of perjury that I have read the foregoing document and that, to the best of my knowledge and belief, the facts contained in it are true and correct";

(12) A blank line for the pledgor's signature, whereupon the pledgor shall sign the pawn ticket at the time of the pawn transaction.

2. The pawnbroker shall only be required to record information concerning pawn transactions pursuant to subsection 1 of this section, in accordance with local ordinances, rules and regulation requirements and may be only required, in accordance with local ordinances, rules and regulation requirements to furnish [local] the appropriate law enforcement [authorities] official with copies of information contained in subdivisions (1) to (4) of subsection 1 of this section. Upon request of the appropriate law enforcement official to inspect the property described in the information furnished pursuant to subdivisions (1) to (4) of subsection 1 of this section, the law enforcement official may inspect the property described, during regular business hours, in a manner so as to minimize interference with, or delay of, business operations, without prior notice or the necessity of obtaining a search warrant.

3. If the pledged goods have not previously been redeemed and the pawn ticket is lost, destroyed, or stolen, the pledgor may [so] notify the pawnbroker in writing, and receipt of such notice shall [invalidate] cancel such pawn ticket[, if the pledged goods have not previously been redeemed]. Before delivering the pledged goods or issuing a new pawn ticket, the pawnbroker shall require the pledgor to make a written [affidavit] statement of the loss, destruction or theft of the ticket. The pawnbroker shall record on the written statement the identifying information required, the date the written statement is given, and the number of the pawn ticket lost, destroyed, or stolen. The [affidavit] statement shall be signed by [a notary public appointed by the secretary of state pursuant to section 486.205, RSMo, to perform notarial acts in this state.] the pledgor. The pawnbroker may charge a reasonable fee, not to exceed three dollars, for the service of accepting the written statement in place of the pawn ticket.

367.040. 1. Every [secured personal credit loan] pawn transaction shall be due and payable in lump sum [thirty days] on the maturity date, which shall be one month after the date of the [loan contract] pawn transaction, [or, if extended, thirty days after the date of the last preceding extension of the loan, and if not so paid when due, it shall, on the next day following, be in default] unless extended by written agreement of both parties. The [lender] pawnbroker shall retain possession of the [tangible personal property subjected to the security interest to secure payment of any secured personal credit loan] pledged goods for a period of sixty days [next] following the maturity date [of default]. If, during the sixty-day period [of sixty days], the [borrower shall pay] pledgor repays to the [lender] pawnbroker the [principal sum of the loan,] amount of funds advanced in the pawn transaction, together with the [loan fee or fees,] pawn charges and the interest due [thereon] to the date of payment, the [lender] pawnbroker shall [thereupon] deliver possession of the [tangible personal property] pledged goods to the [borrower] pledgor. But if the [borrower] pledgor fails, during the sixty- day period [of sixty days], to make payment, then title to the [tangible personal property] pledged goods shall, on the day following the expiration of the sixty-day period [of sixty days], pass to the [lender] pawnbroker, without foreclosure, and the right of redemption by the [borrower] pledgor shall be forever barred.

2. A pledgor shall have no obligation to redeem pledged goods or make any payment on a pawn transaction.

3. Except as otherwise provided by sections 367.011 to [367.060] 367.050, any person [properly identifying himself and presenting] who presents a pawn ticket to the pawnbroker shall be presumed to be entitled to redeem the pledged goods described [therein] on the pawn ticket.

4. A pawnbroker shall not:

(1) Accept a pledge from a person who is under eighteen years of age;

(2) Make any agreement requiring the personal liability of a pledgor in connection with a pawn transaction;

(3) Accept any waiver, in writing or otherwise, of any right or protection accorded a pledgor under sections 367.011 to [367.060] 367.050;

(4) Fail to exercise reasonable care to protect pledged goods from loss or damage;

(5) Fail to return pledged goods to a pledgor upon payment of the full amount due the pawnbroker on the pawn transaction. [In the event] If such pledged goods are lost or damaged as a result of [pawnbroker] the pawnbroker's negligence while in the possession of the pawnbroker it shall be the responsibility of the pawnbroker to replace the lost or damaged goods with [like kind of] merchandise of like kind. [Lenders] Pawnbrokers shall not be responsible for loss of pledged [articles] goods due to acts of God, acts of war, or riots. Each [lender] pawnbroker shall employ, if reasonably available in [his] the pawnbroker's area, a reputable company for the purpose of fire and theft security;

(6) Purchase or take in trade used or secondhand tangible personal property unless a record is established that contains:

[(a) The name, address, physical description, and the driver's license number, military identification number, identification certificate number, or other official number capable of identifying the seller;

(b) A complete description of the property, including the serial number if reasonably available, or other identifying characteristic; and

(c) A signed document from the seller providing that the seller has the right to sell the property.]

(a) The name, address and description of the customer;

(b) The customer's identification;

(c) A complete and accurate description of the property being purchased or traded, including the information required pursuant to paragraphs (a) to (h) of subdivision (4) of subsection 1 of section 367.031, if applicable; and

(d) A signed affidavit from the customer stating that the customer has good title to the property, and has the right to sell the property;

(7) Accept any item for pawn or purchase if, to the pawnbroker's knowledge, the manufacturer's issued serial number has been intentionally defaced, altered or removed from the item.

367.043. 1. No person shall operate a pawnshop unless such person obtains a municipal or county pawnshop license issued pursuant to this section. Each municipality or county may issue a pawnshop license to any person who meets the qualifications of this section. To be eligible for a pawnshop license, an applicant shall:

(1) Be of good moral character;

(2) Have net assets of at least fifty thousand dollars readily available for use in conducting business as a pawnshop for each licensed pawnshop; and

(3) Show that the pawnshop will be operated lawfully and fairly within the purposes of sections 367.011 to [367.060] 367.050. In addition to the qualifications specified in subdivisions (1) [to (3)] and (2) of this subsection, a municipality or county may also refuse to issue a pawnshop license to any applicant who has a felony or misdemeanor conviction which directly relates to the duties and responsibilities of the occupation of pawnbroker [or otherwise] and makes the applicant [presently] unfit for a pawnshop license.

2. If the municipality or county is unable to verify that the applicant meets the net assets requirement for a licensed pawnshop, the municipality or county may require a finding, including the presentation of a current balance sheet, by an independent certified public accountant that the accountant has reviewed the books and records of the applicant and that the applicant meets the net assets requirement of this section.

3. An application for a new pawnshop license, the transfer of an existing pawnshop license or the approval of a change in the ownership of a licensed pawnshop shall be under oath and shall state the full name and place of residence of the applicant, the place where the business is to be conducted, and other relevant information required by the municipality or county[.] as such information relates to the decision to approve such license or change in ownership. Except as specifically provided in sections 367.011 to 367.050, no municipality or county shall restrict the ability of an existing license holder to sell, convey, transfer or otherwise dispose of an existing pawnshop license, when as the person obtaining the existing license has complied with the requirements to be licensed to operate such pawnshop contained in subsection 1 of this section to the satisfaction of the municipality or county. If the applicant is a partnership, the municipality or county may require that the application state the full name and address of each [member] partner. If the applicant is a corporation, the application shall state the full name and address of each officer, shareholder, and director actively involved in the business in the municipality or county in which the pawnshop is located. The application shall be accompanied by:

(1) An investigation fee of five hundred dollars if the applicant is unlicensed at the time of applying for the pawnshop license or two hundred fifty dollars if the application involves a second or additional license to an applicant previously licensed for a separate location or involves substantially identical principals and owners of a licensed pawnshop at a separate location; [and]

(2) Proof of general liability insurance if required by the municipality or county[,]; and

(3) An annual fee of five hundred dollars.

4. Each applicant for a pawnshop license at the time of filing an application shall file with the municipality or county, if the municipality or county so requires, evidence that the applicant has obtained a bond with a surety company qualified to do business in this state, satisfactory to [him] the county or municipality and in an amount not to exceed five thousand dollars for each license [with a surety company qualified to do business in this state]. The aggregate liability of such surety shall not exceed the amount stated in the bond. The bond shall run [to the state for the use of the state] in favor of the municipality or county and the state, referred to in this section as "governmental entities", for the use of the governmental entities and of any person or persons who may have a cause of action against the [obligor of such bond] licensee under the provisions of sections 367.011 to [367.060] 367.050. Such bond shall be conditioned [that] on the [obligor will comply] licensee's compliance with the provisions of sections 367.011 to [367.060 and of all rules and regulations lawfully made by the municipality or county] 367.050, and will pay to the [state] governmental entities and to any such person or persons any and all amounts of money that may become due or owing to the [state] governmental entities or to such person or persons from [such obligor] the licensee under and by virtue of the provisions of sections 367.011 to [367.060] 367.050 during the time such bond is in effect.

5. Each licensee shall keep, consistent with accepted accounting practices, adequate books and records relating to the licensee's pawn transactions, which books and records shall be preserved for a period of at least two years from the date of the last transaction recorded therein.

6. No person who is lawfully operating a pawnshop on August 28, 1990, shall be required to obtain a license under this section in order to continue operating such pawnshop, so long as such person does not violate any other provision of sections 367.011 to [367.060] 367.050, except that, if such person is required by the municipality or county to have an occupational license, such person shall be required to pay the five-hundred-dollar annual fee prescribed in subdivision [(2)] (3) of subsection 3 of this section in lieu of any municipal or county occupational license fee.

7. In addition to the other requirements of this section for licensure, no license shall be issued under this section on or after May 20, 1994, for the initial operation of a pawnshop if such pawnshop is to be located within one-half mile of a site where an excursion gambling boat dock or facility is located or within one-half mile of a site where an application for such an excursion gambling boat dock or facility is on file with the gaming commission prior to the date the application for the pawnshop license is filed. The provisions of this subsection shall not prohibit a pawnshop from being located within one-half mile of a dock or facility or proposed dock or facility described in this subsection and shall not prohibit the renewal or transfer of such license if the initial license for such pawnshop has been issued prior to May 20, 1994, or if the initial application for the pawnshop license was filed prior to an application being filed with the gaming commission as described in this subsection.

8. A county or municipality may enact ordinances to license or regulate the operations of pawnbrokers which are not inconsistent or more restrictive than the provisions of sections 367.011 to 367.050.

367.044. 1. As used in sections 367.044 to 367.048, the following terms mean:

(1) "Claimant", a person who claims that the person's property was misappropriated and then delivered into the possession of a pawnbroker;

(2) "Defendant", a person who delivers property into the possession of a pawnbroker, either through a pawn transaction, a sale or a trade, which property is later claimed to be misappropriated;

(3) "Misappropriated", stolen, embezzled, converted or otherwise wrongfully appropriated against the will of the rightful owner; and

(4) "Purchaser", a person who purchases property from a pawnbroker.

2. A pawnbroker shall have no recourse [when a customer has pledged goods for the receipt of money] against the pledgor for payment on a pawn transaction except the pledged goods themselves, unless the pledged goods are found to [be stolen, embezzled, mortgaged or otherwise pledged or encumbered.] have been misappropriated. If the pledged goods are found by a court of competent jurisdiction to have been misappropriated, the pawnbroker shall deliver the pledged goods as the court directs.

[2. When a customer is officially notified by a peace officer that the goods he pledged or sold to a pawnbroker were stolen or embezzled, the customer shall be liable to repay the pawnbroker the full amount the customer received from the pawn or buy transaction.]

3. To obtain possession of tangible personal property held by a pawnbroker which a claimant claims to be misappropriated, the claimant shall file a petition in a court of competent jurisdiction requesting return of the property, naming the pawnbroker as a defendant and serving the pawnbroker with the petition. At least ten days prior to filing a petition requesting return of the property, the claimant shall give actual notice to the pawnbroker of the claimant's claim to the property and shall provide the pawnbroker the opportunity to investigate and resolve the claim. Failure to give notice shall prohibit the claimant from recovering attorneys' fees as the prevailing party in the lawsuit to recover the property. The pawnbroker shall hold the property claimed by the claimant until the right to possession is resolved by the parties or by a court of competent jurisdiction. The filing of a petition to recover allegedly misappropriated property shall be accepted as a criminal complaint by the prosecuting attorney or circuit attorney of any county or any city not within a county of this state. A judgment in favor of a claimant to recover property shall constitute the claimant's sworn testimony and shall be accepted as evidence in any criminal prosecution.

4. The sale or pledge of tangible personal property by any person in this state shall be deemed:

(1) An agreement by the person who sells or pledges that the person shall be subject to the jurisdiction of the courts of this state in all civil actions and proceedings, arising out of the pledge or sale transaction, filed by either a resident or nonresident plaintiff;

(2) An appointment by any nonresident of the secretary of state of Missouri as the person's lawful attorney and agent upon whom may be served all process in suits pertaining to the actions and proceedings arising out of the pledge or sale; and

(3) An agreement by any nonresident that any process in any suit so served shall be of the same legal force and validity as if personally served in this state.

5. When a claimant files a petition alleging that certain property held by a pawnbroker was misappropriated, the pawnbroker has the right to bring the defendant into that action. If after notice to the pawnbroker and an opportunity to add the defendant, the property is found by a court of competent jurisdiction to be pledged or encumbered and is awarded to the claimant by the court, then:

(1) The prevailing claimant may recover from the pawnbroker the cost of the action, including the claimant's attorneys' fees;

(2) The defendant shall be liable to repay the pawnbroker the full amount the suspect received from the pawnbroker for the property, all applicable interest and service fees;

(3) The defendant shall be liable to indemnify the pawnbroker for the costs paid by the pawnbroker that were incurred by the claimant including, but not limited to, the attorneys' fees; and

(4) The defendant shall be liable to pay the pawnbroker the costs the pawnbroker incurred in pursuing the procedure described in this section including, but not limited to, the attorneys' fees of the pawnbroker.

If the court finds that the claimant was not entitled to the property, then the claimant shall be liable for the costs incurred in pursuing the procedure described in this section including, but not limited to, the attorneys' fees of the pawnbroker and the defendant. If the claimant fails to give the ten-day notice to the pawnbroker as provided in subsection 3 of this section, then the claimant waives the right to recover attorneys' fees as a prevailing claimant.

6. When a purchaser purchases tangible personal property from a pawnbroker and the tangible personal property is later claimed to have been misappropriated and a petition for return of the property is filed in a court of competent jurisdiction and served on the purchaser, the purchaser shall notify the pawnbroker and give the pawnbroker the opportunity to defend against the petition including the opportunity to bring the defendant into that action. If, after notice to the pawnbroker and an opportunity to add the defendant, the property is found by a court of competent jurisdiction to have been misappropriated then:

(1) The purchaser may be reimbursed by the pawnbroker for the money paid to the pawnbroker for the property;

(2) The prevailing purchaser may recover from the pawnbroker the costs of the action including the purchaser's attorneys' fees;

(3) The defendant shall be liable to repay the pawnbroker the full amount the defendant owed to the pawnbroker including the amount of funds received by the defendant from the pawnbroker and all applicable interest and pawn service charges;

(4) The defendant shall be liable to indemnify the pawnbroker for the costs incurred by the purchaser including, but not limited to, the attorneys' fees of the purchaser; and

(5) The defendant shall be liable to pay to the pawnbroker the costs incurred by the pawnbroker in pursuing the procedure described in this section including, but not limited to, the attorneys' fees of the pawnbroker.

If the purchaser fails to give the pawnbroker notice and an opportunity to defend against the petition, then the purchaser waives the right to recover attorneys' fees from the pawnbroker.

367.045. 1. A defendant is guilty of the crime of fraudulently pledging or selling misappropriated property if the defendant fails to repay the pawnbroker the full amount owed to the pawnbroker within ten days after a written demand for payment and notice, that the tangible personal property in the transaction was misappropriated, is deposited by the pawnbroker as certified or registered mail in the United States mail and addressed to the defendant. Fraudulently pledging or selling misappropriated property is a class B misdemeanor if the amount received from the pawnbroker was less than fifty dollars. Fraudulently pledging or selling misappropriated property is a class A misdemeanor if the amount received from the pawnbroker was at least fifty dollars but less than one hundred fifty dollars. Fraudulently pledging or selling misappropriated property is a class C felony if the amount received from the pawnbroker was one hundred fifty dollars or more.

2. In addition to all other costs and fees allowed by law, each prosecuting attorney or circuit attorney who files criminal charges regarding tangible personal property described in this section shall collect from the violator in such action an administrative handling cost. The fee shall be five dollars where the property involved is valued at less than ten dollars, ten dollars where the property involved is valued from ten dollars to one hundred dollars and twenty-five dollars where the property involved is valued at more than one hundred dollars. Notwithstanding the provisions of sections 50.525 to 50.745, RSMo, the costs provided for in this subsection shall be deposited by the county treasurer into a separate interest- bearing fund to be expended by the prosecuting attorney or circuit attorney. The funds shall be expended, upon warrants issued by the prosecuting attorney or circuit attorney directing the treasurer to issue checks thereon, only for the purposes authorized in subsection 5 of section 570.120, RSMo. Any revenues that are not required for the purpose of this section may be placed in the general revenue fund of the county or of a city not within a county. The fund may be audited by the state auditor's office or the appropriate auditing agency. If the moneys collected and deposited into such fund are not totally expended annually, then the unexpended balance shall remain in the fund and the balance shall be kept in the fund to accumulate from year to year.

[367.045. A customer is guilty of a class B misdemeanor if such customer fails to repay the pawnbroker the full amount received from the pawn or buy transaction after being officially notified by a peace officer that the goods the customer pledged or sold in the transaction were stolen or embezzled.]

367.046. 1. Whenever a law enforcement officer has probable cause to believe that misappropriated property is in possession of a licensed pawnbroker, the appropriate law enforcement official of the municipality or county in which the pawnshop is located may place a written hold order on the property. The initial term of the written hold order shall not exceed two months, except that, the holding period may be extended in successive one month increments upon written notification prior to the expiration of the immediately preceding holding period. If the holding period has expired and has not been extended as provided in this subsection, the hold order shall be considered expired, and the pawnbroker shall notify the appropriate law enforcement official that the hold order is no longer in effect. If, on the tenth business day after written notice is delivered to the appropriate law enforcement official stating that the hold order is no longer in effect, the official has not notified the pawnbroker to extend the hold order, then title shall vest in the pawnbroker subject to any restrictions contained in the pawn contract and subject to the provisions of section 367.044.

2. A hold order required by this section shall contain the following:

(1) Name of the pawnbroker;

(2) Name, title and identification number of the appropriate law enforcement official placing the hold order;

(3) Name and address of the agency to which the law enforcement officer is attached and the number, if any, assigned by the agency to the claim regarding the property;

(4) Complete description of the property to be held, including model number and serial number;

(5) Name of agency reporting the property to be misappropriated;

(6) Mailing address of the pawnshop where the property is held;

(7) Expiration date of the holding period.

3. The pawnbroker or the pawnbroker's designee shall sign and date a copy of the hold order as evidence of receipt of the hold order and the beginning of the initial one-month holding period.

367.047. 1. [While] Upon written receipt from the appropriate law enforcement official, indicating that property in the possession of a pawnbroker and subject to a hold order is [in effect] needed for the purpose of furthering a criminal investigation and prosecution, the pawnbroker [may consent to] shall release[, upon written receipt, the stolen or embezzled property] the property subject to the hold order to the custody of the [local] appropriate law enforcement [agency to which the peace officer placing the hold order is attached] official for such purposes. The [consent to] release of the [stolen or embezzled] property to the custody of the appropriate law enforcement [officer] official shall not be considered a waiver or release of the pawnbroker's property rights or interest in the property. Upon completion of the criminal investigation, the property shall be returned to the pawnbroker who consented to its release; provided, however, that if the appropriate law enforcement official has not completed the criminal investigation and returned the property to the pawnbroker within one hundred twenty days after its release, the official shall immediately either return the property to the pawnbroker or obtain and furnish to the pawnbroker a warrant for the continued custody of the property.

2. Except as provided in subsection 1 of this section, the pawnbroker shall not release or dispose of the property except pursuant to a court order or the expiration of the holding period of the hold order, including all extensions.

367.048. 1. The prosecuting [attorney's office] attorney or the circuit attorney shall notify the pawnbroker in writing in cases where criminal charges have been filed and the property may be needed as evidence. The notice shall contain the case number, the style of the case and a description of the property.

2. The pawnbroker shall hold such property until receiving notice of the disposition of the case from the prosecuting [attorney's office] attorney or circuit attorney. The prosecuting [attorney's office] attorney or circuit attorney shall notify the pawnbroker and claimant in writing within fifteen days of the disposition of the case.

3. Gross negligence or willful noncompliance by a pawnbroker [to] with a written hold order shall be cause for the [pawnbroker's license] licensing authority to either [be suspended or revoked] suspend or revoke a pawnbroker's license. A hold order may be released prior to the expiration of any [thirty-day] holding period or extension of such holding period by written release from the agency placing the initial hold order.

367.049. A licensed pawnbroker, or agent or employee of the licensed pawnbroker, who acts, pursuant to the provisions of sections 367.011 to [367.060] 367.050, in good faith, exercises due care and follows the provisions of the law, shall not be subject to criminal or civil liability for any such act.

367.050. 1. In addition to any other penalty which may be applicable, any person who is required to be licensed pursuant to section 367.043 who willfully violates any provision of sections 367.011 to [367.060] 367.050 or who willfully makes a false entry in any records specifically required by sections 367.011 to [367.060 shall be] 367.050 is guilty of a misdemeanor and upon conviction thereof shall be punishable by a fine not in excess of [one] five thousand dollars, or by confinement in the county jail for not more than six months, or by both such fine and imprisonment. Upon the second conviction of the offense described in this section, in addition to being punishable by fine or imprisonment or both fine and imprisonment, the person shall also have the person's pawnshop license permanently revoked. Except that there shall be no penalty for a violation resulting from an accidental and bona fide error, where such error is corrected upon discovery.

2. Except as provided in subsection 6 of section 367.043, any person who engages in the business of operating a pawnshop without first securing a license [shall be] is guilty of a misdemeanor and upon conviction thereof shall be punishable by a fine not in excess of ten thousand dollars or by confinement in the county jail for not more than one year, or by both such fine and imprisonment. Any person who violates the provisions of this subsection shall be permanently prohibited from securing or holding a valid pawnshop license.