| 1 | 1 | | 85R1731 GRM-D |
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| 2 | 2 | | By: Davis of Harris H.B. No. 1157 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the hold period for the disposition of and payment for |
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| 8 | 8 | | items of goods acquired by pawnbrokers. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 371.182, Finance Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 371.182. HOLD PERIOD FOR ACQUIRED GOODS; WITHHOLDING |
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| 13 | 13 | | OF PAYMENT. (a) Subject to Subsections (b) and (c), a [The |
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| 14 | 14 | | commissioner may designate a reasonable hold period during which a] |
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| 15 | 15 | | pawnbroker may not modify, sell, or otherwise dispose of an item of |
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| 16 | 16 | | goods acquired [and offered for sale or other disposition] by the |
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| 17 | 17 | | pawnbroker for a period of at least 20 days after the date the item |
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| 18 | 18 | | of goods is acquired. |
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| 19 | 19 | | (b) A pawnbroker may modify, sell, or otherwise dispose of |
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| 20 | 20 | | an item of goods acquired by the pawnbroker for a period of less |
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| 21 | 21 | | than 20 days if the municipality in which the pawnshop is located |
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| 22 | 22 | | has enacted an ordinance that specifies the hold period. |
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| 23 | 23 | | (c) A pawnbroker and a local law enforcement agency of the |
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| 24 | 24 | | municipality in which the pawnshop is located may agree to |
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| 25 | 25 | | establish a reduced hold period of seven days or less if: |
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| 26 | 26 | | (1) the ticket information for acquired goods is |
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| 27 | 27 | | exchanged electronically; |
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| 28 | 28 | | (2) the agreement for a reduced hold period does not |
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| 29 | 29 | | conflict with an ordinance of the municipality; and |
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| 30 | 30 | | (3) the agreement is submitted in writing to the |
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| 31 | 31 | | commissioner by the chief local law enforcement officer of the |
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| 32 | 32 | | municipality. |
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| 33 | 33 | | (d) A pawnbroker shall hold an item of goods for the |
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| 34 | 34 | | applicable hold period required by this section at the pawnshop |
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| 35 | 35 | | location at which the item of goods was acquired by the pawnbroker. |
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| 36 | 36 | | (e) A pawnbroker shall withhold payment from the seller for |
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| 37 | 37 | | each item of goods acquired by the pawnbroker until the day the |
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| 38 | 38 | | applicable hold period prescribed by this section ends. |
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| 39 | 39 | | (f) A pawnbroker shall hold in escrow for six months any |
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| 40 | 40 | | money withheld under Subsection (e) that remains unclaimed by a |
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| 41 | 41 | | seller after the date the hold period for the goods expires. At the |
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| 42 | 42 | | end of the six-month period, the money is presumed abandoned for the |
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| 43 | 43 | | purposes of Title 6, Property Code. |
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| 44 | 44 | | SECTION 2. Section 371.182, Finance Code, as amended by |
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| 45 | 45 | | this Act, applies only to a transaction involving the purchase of |
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| 46 | 46 | | goods by a pawnbroker on or after the effective date of this Act. A |
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| 47 | 47 | | transaction involving the purchase of goods by a pawnbroker before |
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| 48 | 48 | | the effective date of this Act is governed by the law in effect |
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| 49 | 49 | | immediately before the effective date of this Act, and the former |
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| 50 | 50 | | law is continued in effect for that purpose. |
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| 51 | 51 | | SECTION 3. This Act takes effect September 1, 2017. |
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