SCS/HCS/HB 1526 - PAWNBROKERS - The maximum penalty for misdemeanor violations of pawnbroker statutes is increased from $1,000 to $5,000 or 6 months imprisonment, or both. The pawnshop license will be permanently revoked upon a second conviction.

Law enforcement officers may search property held by a pawnbroker, without a warrant, if they make a request of the pawnbroker and proceed in a manner that minimizes interference with regular business operations.

Pawnbrokers shall release property to law enforcement, upon written request, that is needed in furtherance of a criminal investigation. At the close of the criminal investigation or 120 days, the property will be returned to the pawnbroker.

The act establishes procedures for law enforcement to obtain a hold order on property held by a pawnbroker that an officer has probable cause to believe has been stolen. Law enforcement officers may place a renewable written hold order, not to exceed 2 months, but the hold order may be extended 2 additional one month periods.

A person who fails to repay the pawnbroker within 10 days of formal notification that stolen property was involved in the transaction shall be guilty of the crime of fraudulently pledging stolen goods. The crime is a Class B misdemeanor, a Class A misdemeanor, or a Class C felony depending on the amount of money involved in the transaction

The act establishes procedures for restoring stolen property to the rightful owner. A person may recover stolen property held by a pawnbroker by filing a petition in a circuit or small claims court. The pawnbroker may simultaneously bring an action against the person who pledged or sold the stolen property. If the property is found to be stolen, the court will restore it to the original owner who may recover legal costs from the pawnbroker who may, in turn, recover all costs associated with the action from the person who brought the property to the pawnbroker.

Rent-to-own companies shall affix permanent identification labels to their rented property.

Counties and municipalities may not enact any ordinances which are inconsistent with or more restrictive than these provisions.

TITLE LOANS - Lenders making loans on the security of titled personal property shall obtain a certificate of registration from the Division of Finance and to pay an investigation fee of $5,000 at the time of filing for a certificate. Lenders shall pay to the Division an annual fee of $1,000 and post the certificate on their business premises. Lenders shall file with the Division an annual report which must include a profit and loss statement, a detailed statement of expenses, taxes paid, and the number and amounts of loans made. Lenders must be Missouri citizens, Missouri corporations or corporations qualified to do business in Missouri. Lenders must have a net worth of at least $75,000.

Title loans shall be evidenced by a title loan agreement stating the terms of the loan. The maximum interest rate for title loans shall not exceed 1.5% per month, and the loan shall disclose the interest rate and interest charges. Lenders are allowed to charge a fee to cover operational costs such as investigating the title. Title loans shall not exceed $5000.

Lenders shall comply with Section 301.215 (concerning repossession) and Sections 400.9-101 to 400.9-508 (relating to the perfection of security interests). The lender is not allowed to take possession of the titled personal property prior to the expiration of the original term of the title loan agreement or any renewal of that agreement. The lender shall hold defaulted property for at least 20 days, during which time the borrower may cure the default.

Lenders who violate the title loan provisions of this act are subject to penalties of up to $5000 per day of violation. The first violation shall be a Class C misdemeanor and any subsequent violations shall be a Class A misdemeanor. Any lender who intentionally violates a title loan licensing provision shall be barred from applying for title loan licensure for five years.

No title loan business may use the terms "pawn" or "pawnbroker" in its title, business name, or advertising.

The act contains penalty provisions.
OTTO FAJEN