Connecticut House Bill HB05328

Connecticut 2012 Regular Session

• Introduced: 2/28/12
• Refer: 2/28/12
• Report Pass: 3/13/12
• Refer: 3/16/12
• Report Pass: 3/22/12
• Refer: 5/1/12
• Report Pass: 5/3/12
• Engrossed: 5/4/12
• Report Pass: 5/5/12
• Chaptered: 5/29/12
• Enrolled: 5/31/12
• Passed: 6/15/12

Caption

An Act Establishing A Fine Art Secured Lending License.

Impact

The enactment of HB 05328 will significantly impact various statutes concerning local business practices within the fine art sector. It will create a standardized approach to art secured lending, promoting transparency and mitigating the risks of fraud by instituting identity verification procedures for parties involved in transactions. Furthermore, it mandates fine art secured lenders to maintain detailed records of their transactions and submit regular reports to licensing authorities, enhancing oversight in this domain.

Summary

House Bill 05328 establishes a formal regulatory framework for fine art secured lending in the state, requiring individuals engaging in this business to obtain a license. The bill defines 'fine art' broadly, covering various artistic mediums and created works with a market value of at least $2,500. To operate as a fine art secured lender, individuals must pay a licensing fee and adhere to strict guidelines regarding the transaction of fine art. The licensing authority holds the power to suspend or revoke licenses based on compliance with the defined regulations.

Sentiment

Overall, the sentiment surrounding HB 05328 has been mixed. Supporters argue that the bill enhances consumer protections and professionalizes the lending process in the fine art community, thereby increasing trust in transactions. Conversely, some opponents express concerns regarding the potential bureaucratic burden on small lenders and fear that stringent regulations may deter new entrants into the fine art lending market. There were calls for a more balanced approach that considers the unique challenges faced by small businesses in this sector.

Contention

Notable points of contention include the licensing requirements and the structure of penalties for violations under the bill. Some legislators raised apprehensions about the potential for excessive licensing fees and regulatory burdens that might hinder smaller art dealers and lenders. Another point of debate centers on the criminal history background checks mandated by the bill, which some feel could disproportionately affect those with past convictions, limiting their ability to enter the fine art lending industry.