HB-6029, As Passed Senate, December 2, 2004                                 

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

    SENATE SUBSTITUTE FOR                                                       

                                                                                

    HOUSE BILL NO. 6029                                                         

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1917 PA 273, entitled                                             

                                                                                

    "An act to regulate and license pawnbrokers in certain                      

    governmental units of this state; and to prescribe certain powers           

    and duties of certain local governmental units and state                    

    agencies,"                                                                  

                                                                                

    by amending sections 1, 9, 11, and 13 (MCL 446.201, 446.209,                

                                                                                

    446.211, and 446.213), section 1 as amended by 2002 PA 469 and              

                                                                                

    sections 9 and 11 as amended by 1998 PA 233.                                

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 1.  (1) A person, corporation, or firm shall not  carry                

                                                                                

2   on the  conduct business  of  as a pawnbroker in any of the                 

                                                                                

3   governmental units of this state without having first obtained              

                                                                                

4   from the chief executive officer of  the  that governmental unit            

                                                                                

5   where the business is to be carried on,  a license  subject to             

                                                                                

6   the provisions of  under this act  , authorizing  that authorizes           

                                                                                

7   that person, corporation, or firm to  carry on  conduct that                

                                                                                

8   business.   A person, corporation, or firm carrying on the                  


    House Bill No. 6029 as amended December 2, 2004                             

1   business of pawnbroker that was not required to obtain a license            

                                                                                

2   before the effective date of the amendatory act that added this             

                                                                                

3   sentence shall obtain a license within 180 days after that                  

                                                                                

4   effective date.                                                             

                                                                                

5       (2) Licensure under either or both of the following acts                    

                                                                                

6   does not exempt a person from obtaining a license under this                

                                                                                

7   act:                                                                        

                                                                                

8       (a) The precious metal and gem dealer act, 1981 PA 95, MCL                  

                                                                                

9   445.481 to 445.492.                                                         

                                                                                

10      (b) 1917 PA 350, MCL 445.401 to 445.408.                                    

                                                                                

11      Sec. 9.  (1) A licensed pawnbroker may charge upon any loan                 

                                                                                

12  a rate of interest not to exceed 3% per month and is not required           

                                                                                

13  to accept any interest less than 50 cents on a single loan.                 

                                                                                

14  (2)  A pawnbroker may also charge $1.00 per month or fraction of           

                                                                                

15  a month for the storage of <<unencumbered personal>> property under any single pledge or                                                                       

16  pawn.                                                                       

                                                                                

17      (2) A pawnbroker may charge $1.00 per month or fraction of a                

                                                                                

18  month for a usage fee for <<unencumbered personal>> property pawned or pledged and used by                                                                     

19  the pawner during the term of the pawn or pledge.  A usage fee              

                                                                                

20  charged under this subsection is not considered interest.                   

                                                                                

21      (3) A pawnbroker or the pawnbroker's agent or employee shall                

                                                                                

22  not charge or receive interest on the loan in excess of the                 

                                                                                

23  amounts provided for in this act.                                           

                                                                                

24      (4) Interest on any loan is not payable in advance and shall                

                                                                                

25  be computed on unpaid monthly balances without compounding.                 

                                                                                

26      (5) A pawnbroker is not entitled to any examination fee and                 

                                                                                

27  shall not make any charge in excess of the amounts provided for             


    House Bill No. 6029 as amended December 2, 2004                             

1   in this act.                                                                

                                                                                

2       Sec. 11.  (1) If at any time before the sale of the item                    

                                                                                

3   pledged or pawned the borrower pays or tenders to the pawnbroker            

                                                                                

4   the debt and interest and charges on the item, that payment or              

                                                                                

5   tender reinvests the pawner with the title and right of                     

                                                                                

6   possession to the property pledged.                                         

                                                                                

7       (2) A pawnbroker may agree in writing, after pledged or                     

                                                                                

8   pawned <<unencumbered personal>> property has been deposited with the pawnbroker, to allow                                                            

9   the pawner to maintain possession and use of the pledged or                 

                                                                                

10  pawned <<unencumbered personal>> property during the term of the pawn or pledge    

11  transaction.  The agreement may also include the payment of a               

                                                                                

12  usage fee under section 9.  A pawnbroker may take possession of             

                                                                                

13  the pledged or pawned property pursuant to section 9609 of the              

                                                                                

14  uniform commercial code, 1962 PA 174, MCL 440.9609.                         

                                                                                

15      Sec. 13.  (1)  No  A pawnbroker shall not deface, scratch,                  

                                                                                

16  obliterate, melt, separate, or break into parts any  particle               

                                                                                

17  article or thing received by him or her in pawn, or otherwise  ,            

                                                                                

18  or in any manner do, cause, or suffer to be done by others,                 

                                                                                

19  anything  which shall destroy  that destroys or  tend  tends to             

                                                                                

20  destroy the identity of  such  the article or thing, or tends to            

                                                                                

21  render the identification  thereof  of the thing or article more            

                                                                                

22  difficult.                                                                  

                                                                                

23      (2) A pawnbroker shall not accept by way of pledge, pawn,                   

                                                                                

24  purchase, or exchange any article or thing that customarily bears           

                                                                                

25  a manufacturer's serial number or other identifying insignia                

                                                                                

26  unless the number or insignia is plainly visible on the article             

                                                                                

27  or thing.