MISSISSIPPI LEGISLATURE
2004 Regular Session
To: Banking and Financial Services
By: Representative Shows, Staples
AN ACT TO AMEND SECTIONS 75-67-305 AND 75-67-309, MISSISSIPPI CODE OF 1972, TO REQUIRE PAWNBROKERS TO MAINTAIN RECORDS OF PAWN TRANSACTIONS IN ELECTRONIC FORMAT, TO OBTAIN A THUMBPRINT OF THE PLEDGOR OR SELLER OF PLEDGED OR SOLD ITEMS AND TO PHOTOCOPY THE PLEDGOR OR SELLER'S PHOTOGRAPHIC IDENTIFICATION; TO AMEND SECTIONS 75-67-333 AND 75-67-325, MISSISSIPPI CODE OF 1972, TO REVISE THE PENALTIES PROVIDED FOR OFFENSES COMMITTED BY PAWNBROKERS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-67-305, Mississippi Code of 1972, is amended as follows:
75-67-305. (1) At the time of making the pawn or purchase transaction, the pawnbroker shall enter upon the pawn ticket a record of the following information which shall be typed or written in ink and in the English language:
(a) A clear and accurate description of the property, including the following:
(i) Brand name;
(ii) Model number;
(iii) Serial number;
(iv) Size;
(v) Color, as apparent to the untrained eye;
(vi) Precious metal type, weight and content, if known;
(vii) Gemstone description, including the number of stones;
(viii) In the case of firearms, the type of action, caliber or gauge, number of barrels, barrel length and finish; and
(ix) Any other unique identifying marks, numbers, names or letters;
(b) The name, residence address and date of birth of pledgor or seller;
(c) Date of pawn or purchase transaction;
(d) Driver's license number or social security number or Mississippi identification card number, as defined in Section 45-35-1, Mississippi Code of 1972, of the pledgor or seller or identification information verified by at least two (2) forms of identification, one (1) of which shall be a photographic identification;
(e) Description of the pledgor including approximate height, sex and race;
(f) Amount of cash advanced;
(g) The maturity date of the pawn transaction and the amount due; and
(h) The monthly rate and pawn charge. Such rates and charges shall be disclosed using the requirements prescribed in Regulation Z (Truth in Lending) of the rules and regulations of the Board of Governors of the Federal Reserve.
(2) Each pawn or purchase transaction document shall be consecutively numbered and entered in a corresponding log or record book. Separate logs or record books for pawn and purchase transactions shall be kept.
(3) Records may be maintained by licensees in the form of traditional hard copies; however, every licensee shall store all of the information required by this section in a format commonly described as electronic, imaged, magnetic, microphotographic or otherwise which is readily accessible for viewing on a screen with the capability of being promptly printed upon request.
(4) At the time of making the pawn or purchase transaction, the pawnbroker shall obtain a thumbprint of the pledgor or seller and shall make a photocopy or electronic image of the pledgor or seller's photographic identification. The licensee shall keep and maintain these items as part of the records of the pawn or purchase transaction and make them available to law enforcement agencies upon request.
(5) Every licensee shall maintain a record which indicates the total number of accounts and the total dollar value of all pawn transactions outstanding as of December 31 of each year.
SECTION 2. Section 75-67-309, Mississippi Code of 1972, is amended as follows:
75-67-309. (1) The pledgor or seller shall sign a statement verifying that the pledgor or seller is the rightful owner of the goods or is entitled to sell or pledge the goods and shall receive an exact copy of the pawn ticket which shall be signed or initialed by the pawnbroker or any employee of the pawnbroker.
(2) The pawnbroker shall maintain a record of all transactions of pledged or purchased goods on the premises in a format of storage commonly described as electronic, imaged, magnetic, microphotographic or otherwise which is readily accessible for viewing on a screen with the capability of being promptly printed upon request. A pawnbroker shall upon request provide to the appropriate law enforcement agency a complete record of all transactions, including the thumbprint of the pledgor or seller and a photocopy or electronic image of the pledgor or seller's photographic identification. These records shall be a correct copy of the entries made of the pawn or purchase transaction, except as to the amount of cash advanced or paid for the goods and monthly pawnshop charge. * * * All transactions shall be made available by means of electronic transmission through a modem or similar device or by providing a computer disc to the law enforcement agency within seventy-two (72) hours of the transaction. * * *
(3) All goods purchased across the counter by the pawnbroker shall be maintained on the premises by the pawnbroker for at least fourteen (14) calendar days * * *.
SECTION 3. Section 75-67-333, Mississippi Code of 1972, is amended as follows:
75-67-333. (1) Except for an offense as described in subsection (2) or (3) of this section, any licensee or employee who willfully violates any provision of this article, in addition to any other penalty which may be applicable, shall be guilty of a misdemeanor and upon conviction thereof, shall be punishable by a fine not in excess of One Thousand Dollars ($1,000.00) per violation * * *.
(2) Except for an offense as described in subsection (3) of this section, any licensee or employee who willfully makes a false entry in any record specifically required by this article, in addition to any other penalty which may be applicable, shall be punished, upon conviction, as follows:
(a) For a first offense, by a fine not in excess of One Thousand Dollars ($1,000.00) for each offense;
(b) For a second offense, the offenses being committed within a period of five (5) years, by a fine not in excess of Five Thousand Dollars ($5,000.00), by imprisonment in the county jail for not more than thirty (30) days, or by both such fine and imprisonment;
(c) For a third or subsequent offense, the offenses being committed within a period of five (5) years, by a fine not in excess of Ten Thousand Dollars ($10,000.00), by imprisonment in the custody of the State Department of Corrections for a term of not more than five (5) years, or by both such fine and imprisonment.
(3) * * * In addition to any other penalty which may be applicable, any licensee or employee who fails to make a record of a pawnshop transaction and subsequently sells or disposes of the pledged goods from such transaction shall be punished as follows:
(a) For a first offense, the licensee or employee shall be guilty of a misdemeanor and upon conviction thereof, shall be punishable by a fine not in excess of One Thousand Dollars ($1,000.00) or by imprisonment in the county jail for not more than one (1) year, or both fine and imprisonment;
(b) For a second offense, the offenses being committed within a period of five (5) years, the licensee or employee shall be guilty of a felony and upon conviction thereof, shall be punishable by a fine not in excess of Five Thousand Dollars ($5,000.00) or by imprisonment in the custody of the State Department of Corrections for a term not less than one (1) year nor more than five (5) years, or by both fine and imprisonment. (4) (a) Any licensee convicted in the manner provided in * * * subsection (2) or (3) of this section shall forfeit the surety bond or deposit required in Section 75-67-323 and the amount of such bond or deposit shall be credited to the budget of the state or local agency, which directly participated in the prosecution of such licensee, for the specific purpose of increasing law enforcement resources for that specific state or local agency. Such bond or deposit shall be used to augment existing state and local law enforcement budgets and not to supplant them.
(b) In addition to forfeiting the surety bond or deposit as provided under paragraph (a) of this subsection, any licensee convicted of a second, third or subsequent offense under subsection (2) or (3) of this section shall have his license suspended for a period of three (3) years.
(5) Compliance with the criminal provisions of this article shall be enforced by the appropriate law enforcement agency who may exercise for such purpose any authority conferred upon such agency by law.
(6) When the commissioner has reasonable cause to believe that a person is violating any provision of this article, the commissioner, in addition to and without prejudice to the authority provided elsewhere in this article, may enter an order requiring the person to stop or to refrain from the violation. The commissioner may sue in any circuit court of the state having jurisdiction and venue to enjoin the person from engaging in or continuing the violation or from doing any act in furtherance of the violation. In such an action, the court may enter an order or judgment awarding a preliminary or permanent injunction.
(7) The commissioner may, after notice and a hearing, impose a civil penalty against any licensee adjudged by the commissioner to be in violation of the provisions of this article. Such civil penalty shall not exceed Five Hundred Dollars ($500.00) per violation and shall be deposited into the State General Fund.
SECTION 4. Section 75-67-325, Mississippi Code of 1972, is amended as follows:
75-67-325. (1) The commissioner may, after notice and hearing, suspend or revoke any license if it finds that:
(a) The licensee, either knowingly, or without the exercise of due care to prevent the same, has violated any provision of this article;
(b) Any fact or condition exists which, if it had existed or had been known to exist at the time of the original application for such license, clearly would have justified the commissioner in refusing such license;
(c) The licensee has aided, abetted or conspired with an individual or person to circumvent or violate the requirement of the article;
(d) The licensee, or a legal or beneficial owner of the license, has been convicted of a crime that the commissioner finds directly relates to the duties and responsibilities of the occupation of pawnbroker.
(2) The commissioner shall, after notice and hearing, suspend the license of any licensee who is convicted of a second, third or subsequent offense under subsection (2) or (3) of Section 75-67-333.
(3) The commissioner may conditionally license or place on probation a person whose license has been suspended or may reprimand a licensee for a violation of this article.
(4) The manner of giving notice and conducting a hearing as required by subsection (1) of this section shall be performed in accordance with Mississippi Administrative Procedures Law, Section 25-43-1, et seq., Mississippi Code of 1972.
(5) Any licensee may surrender any license by delivering it to the commissioner with written notice of its surrender, but such surrender shall not affect the licensee's civil or criminal liability for acts committed prior thereto.
(6) No revocation, suspension or surrender of any license shall impair or affect the obligation of any preexisting lawful contract between the licensee and any pledgor. Any pawn transaction made without benefit of license is void.
(7) The commissioner may reinstate suspended licenses or issue new licenses to a person whose license or licenses have been revoked if no fact or condition then exists which clearly would have justified the commissioner in refusing originally to issue a license under this article.
(8) The appropriate local law enforcement agency shall be notified of any licensee who has his license suspended or revoked as provided by this article.
(9) The Commissioner of Banking shall enforce the provisions of this section.
SECTION 5. This act shall take effect and be in force from and after July 1, 2004.