Legislature(2009 - 2010)

04/16/2010 10:47 AM House FIN

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CS FOR SENATE BILL NO. 292(JUD)                                                                                               
     "An Act  relating to the registration  and operation of                                                                    
     pawnbrokers,  to the  exemption  for pawnbrokers  under                                                                    
     the Alaska  Small Loans  Act, and  to the  exclusion of                                                                    
     pawnbrokers  under certain  definitions in  the Uniform                                                                    
     Commercial Code; and providing for an effective date."                                                                     
4:43:01 PM                                                                                                                    
SENATOR  CHARLIE   HUGGINS,  SPONSOR,  explained   that  the                                                                    
legislation  would  create a  method  for  pawnshops in  the                                                                    
state to report and track stolen goods.                                                                                         
Co-Chair  Stoltze said  that the  issue  had been  discussed                                                                    
before.  He  stated  that  regulations  already  existed  to                                                                    
regulate and control  the goods sold to  pawnshops, but that                                                                    
local municipalities had been  noncompliant. He asked if the                                                                    
legislation  would  force  all  pawnshops  into  conformity.                                                                    
Senator Huggins replied in the affirmative.                                                                                     
4:46:35 PM                                                                                                                    
JOSH TEMPEL,  STAFF, SENATOR CHARLIE HUGGINS,  reported that                                                                    
the bill has  had broad support from  ethically managed pawn                                                                    
shops  and law  enforcement.  He directed  attention to  the                                                                    
blank CS, work draft Version "M", of the legislation.                                                                           
4:47:58 PM          AT EASE                                                                                                   
5:09:11 PM          RECONVENED                                                                                                
Vice-Chair  Thomas  MOVED  to  ADOPT  HCS  CS  SB  292,  26-                                                                    
LS1487\M, Bannister, 4/14/10, as a working document.                                                                            
Co-Chair Stoltze OBJECTED for the purpose of discussion.                                                                        
Mr. Tempel relayed that the first  change in the CS could be                                                                    
found  on Page  1, Line  8. The  change separated  pawnshops                                                                    
from second-hand stores.  It raised the limit  that could be                                                                    
received from pawning an item  from $500 to $750. The second                                                                    
change, found on  Page 3, Line 24, again  altered the number                                                                    
from  $500 to  $750. Mr.  Tempel shared  that the  effective                                                                    
date  would be  delayed for  a year  at the  request of  one                                                                    
pawnbroker in Soldotna,  who needed more time  to review the                                                                    
Co-Chair Stoltze  questioned the power of  one pawnbroker to                                                                    
alter the  effective date. Mr.  Tempel replied that  all the                                                                    
other parties involved had been comfortable with the delay.                                                                     
Senator Huggins added that the  delay would allow for a more                                                                    
successful transition.                                                                                                          
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, HCS CS SC 292 was ADOPTED as a working document.                                                                     
JENNIFER   STRICKLER,   OPERATIONS  MANAGER,   DIVISION   OF                                                                    
OCCUPATIONAL  LICENSING, DEPARTMENT  OF COMMERCE,  COMMUNITY                                                                    
AND  ECONOMIC DEVELOPMENT,  explained that  the fiscal  note                                                                    
requested a part-time investigator  position the funding for                                                                    
which would paid  by the licensees. She  emphasized that the                                                                    
program was new under centralized licensing.                                                                                    
5:14:25 PM                                                                                                                    
Co-Chair  Stoltze asked  if the  effective date  delay would                                                                    
result  in  fees  being  collected  earlier.  Ms.  Strickler                                                                    
replied  that  the  fees would  be  collected  starting  the                                                                    
effective date of the bill.                                                                                                     
Representative  Joule  referred  to the  change  in  revenue                                                                    
reflected on  the fiscal note.  He wondered why  the $76,000                                                                    
skipped from year to year.  Ms. Strickler responded that the                                                                    
number sipped from year to  year because licensing was based                                                                    
on the biennial cycle.                                                                                                          
Representative  Gara clarified  that the  revenue would  pay                                                                    
for  the expected  fiscal impact.    Ms. Strickler  answered                                                                    
Representative Gara asked if the  Unfair Trade Practices Act                                                                    
still governed pawnbroker  conduct concerning fraud. Senator                                                                    
Huggins answered yes.                                                                                                           
Co-Chair Stoltze opened public testimony.                                                                                       
FERNANDO  PENA, CASH  AMERICA, testified  in support  of the                                                                    
ALEX  VAUGHN,   CASH  AMERICA,  spoke  in   support  of  the                                                                    
Vice-Chair Thomas MOVED  to report HCS CSSB  292(FIN) out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
HCS CSSB  292(FIN) was  REPORTED out  of Committee  with "no                                                                    
recommendation"  and  attached previously  published  fiscal                                                                    
note: FN1 (CED).                                                                                                                
5:20:13 PM          AT EASE                                                                                                   
5:20:26 PM          RECONVENED                                                                                                

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