Bill Summary: HB 192 - Pawnbroker Regulation Revisions

• Reduces maximum interest rate for pawnbroker loans from 5% to 3% per month on unpaid principal.

• Increases minimum liquid asset requirements from $50,000 to $100,000 for initial licensure and ongoing operation of pawnshops.

• Allows pawnbrokers to notify pledgors of forfeiture via electronic communication (email) in addition to mail, and allows early notice after one month of non-payment if electronic filing is used.

• Extends holding period for purchased goods from 15 days to 30 days before disposal, and extends stolen property hold period from 30 days to 60 days when law enforcement requests retention.

• Replaces "active and inactive files" terminology with "separate files" for record-keeping and adds new provisions allowing pawnbrokers to charge reasonable service fees up to one-tenth of loan value per month for appraisals, title investigations, storage, and loan servicing costs.

• Creates new military servicemember protection requiring pawnbrokers to waive unpaid interest and hold pledged property for 60 days after return from deployment if military orders are provided.

• Establishes secure law enforcement database reporting system for daily pledge and purchase information and requires biennial reporting to superintendent on transaction activity.