As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 192

Representatives McGregor, Slesnick 

Cosponsors: Representatives Hackett, Blair, Ruhl 

---

A BILL

To amend sections 4505.102, 4727.03, 4727.06,

1

4727.07, 4727.08, 4727.09, 4727.11, 4727.12,

2

4727.13, 4727.20, and 4727.99 and to enact

3

sections 4727.061 and 4727.23 of the Revised Code

4

to revise the law governing pawnbrokers.

5

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 4505.102, 4727.03, 4727.06,	6
4727.07, 4727.08, 4727.09, 4727.11, 4727.12, 4727.13, 4727.20, and	7
4727.99 be amended and sections 4727.061 and 4727.23 of the	8
Revised Code be enacted to read as follows:	9

Sec. 4505.102.  (A) If a pawnbroker licensed under Chapter	10
4727. of the Revised Code makes a loan that is secured by a motor	11
vehicle, watercraft, or outboard motor and has taken possession of	12
the motor vehicle, watercraft, or outboard motor and the	13
certificate of title to the motor vehicle, watercraft, or outboard	14
motor, and the owner of the motor vehicle, watercraft, or outboard	15
motor fails to redeem or pay interest on the loan for which the	16
motor vehicle, watercraft, or outboard motor was pledged within	17
two months from the date of the loan or the date on which the last	18
interest payment is due, and the pawnbroker notifies the owner by	19
mail, with proof of mailing, as required by division (A) of	20
section 4727.11 of the Revised Code, or electronically, as	21
permitted by that division, of the possible forfeiture of the	22
motor vehicle, watercraft, or outboard motor, and the owner fails	23
to redeem the motor vehicle, watercraft, or outboard motor within	24
the thirty-day period required by that division to be specified in	25
the notice, the pawnbroker shall proceed to obtain a certificate	26
of title to the motor vehicle, watercraft, or outboard motor in	27
the pawnbroker's name in the manner provided in this section.	28

(B) The pawnbroker shall execute an affidavit stating all of	29
the following:	30

(1) That the pawnbroker is a pawnbroker licensed under	31
Chapter 4727. of the Revised Code;	32

(2) That the pawnbroker has made a loan to the owner of a	33
motor vehicle, watercraft, or outboard motor, and the security for	34
the loan is the motor vehicle, watercraft, or outboard motor;	35

(3) That both the motor vehicle, watercraft, or outboard	36
motor and the certificate of title to the motor vehicle,	37
watercraft, or outboard motor are in the possession of the	38
pawnbroker;	39

(4) That the owner of the motor vehicle, watercraft, or	40
outboard motor has failed to redeem the pledged motor vehicle,	41
watercraft, or outboard motor or pay interest on the loan for	42
which the motor vehicle, watercraft, or outboard motor was pledged	43
within two months from the date of the loan or the date on which	44
the last interest payment was due;	45

(5) That the pawnbroker has notified the owner of the motor	46
vehicle, watercraft, or outboard motor by mail, with proof of	47
mailing, as required by division (A) of section 4727.11 of the	48
Revised Code, or electronically, as permitted by that division,	49
and the owner has failed to redeem the motor vehicle, watercraft,	50
or outboard motor within the thirty-day period required by that	51
division to be specified in the notice.	52

Upon presentation by the pawnbroker of a copy of the	53
affidavit, a copy of the pawn form, a copy of the proof of mailing	54
or that the electronic mail was sent, and the certificate of title	55
to the motor vehicle, watercraft, or outboard motor, a clerk of a	56
court of common pleas shall issue, if the record shows no lien or	57
encumbrances exist, a certificate of title, free and clear of all	58
liens and encumbrances, to the pawnbroker.	59

(C) No person shall execute or present the affidavit required	60
by this section, knowing any entry on the affidavit to be false.	61

(D) Whoever violates this section shall be fined not more	62
than two hundred dollars, imprisoned not more than ninety days, or	63
both.	64

Sec. 4727.03.  (A) As used in this section, "experience and	65
fitness in the capacity involved" means that the applicant for a	66
pawnbroker's license demonstrates sufficient financial	67
responsibility, reputation, and experience in the pawnbroker	68
business, or in a related business, to act as a pawnbroker in	69
compliance with this chapter. "Experience and fitness in the	70
capacity involved" shall be determined by all of the following:	71

(1) Prior or current ownership or management of, or	72
employment in, a pawnshop;	73

(2) Demonstration to the satisfaction of the superintendent	74
of financial institutions of a thorough working knowledge of all	75
pawnbroker laws and rules as they relate to the actual operation	76
of a pawnshop.	77

A demonstration shall include a demonstration of an ability	78
to properly complete forms, knowledge of how to properly calculate	79
interest and storage charges, and knowledge of legal notice and	80
forfeiture procedures. The final determination of whether an	81
applicant's demonstration is adequate rests with the	82
superintendent.	83

(3) A submission by the applicant and any stockholders,	84
owners, managers, directors, or officers of the pawnshop, and	85
employees of the applicant to a police record check; and	86

(4) Liquid assets in a minimum amount of one hundred thousand	87
dollars at the time of applying for initial licensure and	88
demonstration of the ability to maintain the liquid assets at a	89
minimum amount of fiftyone hundred thousand dollars for the	90
duration of holding a valid pawnbroker's license.	91

(B) The superintendent may grant a license to act as a	92
pawnbroker to any person of good character and having experience	93
and fitness in the capacity involved to engage in the business of	94
pawnbroking upon the payment to the superintendent of a license	95
fee determined by the superintendent pursuant to section 1321.20	96
of the Revised Code. A license is not transferable or assignable.	97

(C) The superintendent may consider an application withdrawn	98
and may retain the investigation fee required under division (D)	99
of this section if both of the following are true:	100

(1) An application for a license does not contain all of the	101
information required under division (B) of this section.	102

(2) The information is not submitted to the superintendent	103
within ninety days after the superintendent requests the	104
information from the applicant in writing.	105

(D) The superintendent shall require an applicant for a	106
pawnbroker's license to pay to the superintendent a nonrefundable	107
initial investigation fee of twothree hundred dollars, which is	108
for the exclusive use of the state.	109

(E)(1) Except as otherwise provided in division (E)(2) of	110
this section, a pawnbroker's license issued by the superintendent	111
expires on the thirtieth day of June next following the date of	112
its issuance, and may be renewed annually by the thirtieth day of	113
June in accordance with the standard renewal procedure set forth	114
in Chapter 4745. of the Revised Code. Fifty per cent of the annual	115
license fee shall be for the use of the state, and fifty per cent	116
shall be paid by the state to the municipal corporation, or if	117
outside the limits of any municipal corporation, to the county, in	118
which the office of the licensee is located. All such fees payable	119
to municipal corporations or counties shall be paid annually.	120

(2) A pawnbroker's license issued or renewed by the	121
superintendent on or after January 1, 2006, expires on the	122
thirtieth day of June in the even-numbered year next following the	123
date of its issuance or renewal, as applicable, and may be renewed	124
biennially by the thirtieth day of June in accordance with the	125
standard renewal procedure set forth in Chapter 4745. of the	126
Revised Code. Fifty per cent of the biennial license fee shall be	127
for the use of the state, and fifty per cent shall be paid by the	128
state to the municipal corporation, or if outside the limits of	129
any municipal corporation, to the county, in which the office of	130
the licensee is located. All such fees payable to municipal	131
corporations or counties shall be paid biennially.	132

(F) The fee for renewal of a license shall be equivalent to	133
the fee for an initial license established by the superintendent	134
pursuant to section 1321.20 of the Revised Code. Any licensee who	135
wishes to renew the pawnbroker's license but who fails to do so on	136
or before the date the license expires shall reapply for licensure	137
in the same manner and pursuant to the same requirements as for	138
initial licensure, unless the licensee pays to the superintendent	139
on or before the thirty-first day of August of the year the	140
license expires, a late renewal penalty of one hundred dollars in	141
addition to the regular renewal fee. Any licensee who fails to	142
renew the license on or before the date the license expires is	143
prohibited from acting as a pawnbroker until the license is	144
renewed or a new license is issued under this section. Any	145
licensee who renews a license between the first day of July and	146
the thirty-first day of August of the year the license expires is	147
not relieved from complying with this division. The superintendent	148
may refuse to issue to or renew the license of any licensee who	149
violates this division.	150

(G) No license shall be granted to any person not a resident	151
of or the principal office of which is not located in the	152
municipal corporation or county designated in such license unless	153
that applicant, in writing and in due form approved by and filed	154
with the superintendent, first appoints an agent, a resident of	155
the state, and city or county where the office is to be located,	156
upon whom all judicial and other process, or legal notice,	157
directed to the applicant may be served. In case of the death,	158
removal from the state, or any legal disability or any	159
disqualification of any such agent, service of such process or	160
notice may be made upon the superintendent.	161

The superintendent may, upon notice to the licensee and	162
reasonable opportunity to be heard, suspend or revoke any license	163
or assess a penalty against the licensee if the licensee, or the	164
licensee's officers, agents, or employees, has violated this	165
chapter. Any penalty shall be appropriate to the violation but in	166
no case shall the penalty be less than two hundred nor more than	167
two thousand dollars. Whenever, for any cause, a license is	168
suspended or revoked, the superintendent shall not issue another	169
license to the licensee nor to the legal spouse of the licensee,	170
nor to any business entity of which the licensee is an officer or	171
member or partner, nor to any person employed by the licensee,	172
until the expiration of at least two years from the date of	173
revocation or suspension of the license. The superintendent shall	174
deposit all penalties allocated pursuant to this section into the	175
state treasury to the credit of the consumer finance fund.	176

Any proceedings for the revocation or suspension of a license	177
or to assess a penalty against a licensee are subject to Chapter	178
119. of the Revised Code.	179

(H) If a licensee surrenders or chooses not to renew the	180
pawnbroker's license, the licensee shall notify the superintendent	181
thirty days prior to the date on which the licensee intends to	182
close the licensee's business as a pawnbroker. Prior to the date,	183
the licensee shall do either of the following with respect to all	184
active loans:	185

(1) Dispose of an active loan by selling the loan to another	186
person holding a valid pawnbroker's license issued under this	187
section;	188

(2) Reduce the rate of interest on pledged articles held as	189
security for a loan to eight per cent per annum or less effective	190
on the date that the pawnbroker's license is no longer valid.	191

Sec. 4727.06.  (A) No pawnbroker shall charge, receive, or	192
demand interest for any loan in excess of fivethree per cent per	193
month or fraction of a month on the unpaid principal. Interest	194
shall be computed on a monthly basis on the amount of the	195
principal remaining unpaid on the first day of the month and shall	196
not be compounded.	197

(B) In addition to the rate of interest limitation imposed	198
pursuant to division (A) of this section, thea licensee may	199
charge no more than:	200

(1) Four dollars per month or fraction of a month for all	201
pledged articles held as security or stored for a loan, to be	202
agreed to in writing at the time the loan is made;	203

(2) Four dollars plus the actual cost of shipping, when the	204
licensee is to deliver or forward the pledged article by express	205
or parcel post to the pledgor;	206

(3) Two dollars for the loss of the original statement issued	207
to the pledgor by the licensee pursuant to section 4727.07 of the	208
Revised Code upon redemption of the pledged articles;	209

(4) Two dollars for the cost of notifying a pledgor by mail	210
that the pledged articles may be forfeited to the licensee	211
pursuant to section 4727.11 of the Revised Code, contract for, or	212
receive a reasonable fee, not to exceed one-tenth of the value of	213
the loan per month for investigating a title, appraising pledged	214
or purchased items, storing and insuring property, closing a loan,	215
and other expenses, losses, and incidental costs associated with	216
servicing loans. Such a fee when made and collected shall not be	217
considered interest for any purpose.	218

(C) A licensee who complies with the requirements or	219
procedures of this state pursuant to the application of the "Brady	220
Handgun Violence Protection Act," 107 Stat. 1536 (1993), 18	221
U.S.C.A. 922, as amended, may charge any fee the licensee is	222
required by law to pay in order to comply with such requirements	223
or procedures. The licensee may charge no more than two dollars	224
for providing services in compliance with such requirements or	225
procedures.	226

(D) No licensee shall directly or indirectly charge, receive,	227
or contract for any interest or fees greater than that allowed by	228
divisions (A), (B), and (C) of this section.	229

(E) A pledgor may pay a portion of the outstanding principal	230
loan balance at any time. A pledgor may redeem a pawn loan at any	231
time after seventy-two hours have passed since the pledge was	232
made. A pledgor may not prepay interest or storage charges, except	233
when the pledgor redeems the pledged property.	234

Sec. 4727.061.  A person licensed as a pawnbroker shall waive	235
any unpaid interest charges imposed under section 4727.06 of the	236
Revised Code and hold, except as provided in section 4727.12 of	237
the Revised Code, pledged property that is the subject of a pawn	238
transaction on the licensee's business premises until sixty days	239
after the pledgor or the pledgor's spouse or dependent returns to	240
the United States if the licensee receives a copy of military	241
orders indicating that the pledgor, or pledgor's spouse or	242
dependent, is a member of the United States armed forces or in the	243
military service of a state and, after the pawn transaction was	244
entered into, the person was or is to be deployed for service	245
relating to a military conflict.	246

Sec. 4727.07.  Every pawnbroker shall give to the pledgor or	247
seller a statement upon which shall be legibly written in ink,	248
printed, or typed, the name and address of the licensee making the	249
loan or purchase, the amount of the loan or purchase price, the	250
rate of interest, the time and date when the loan is made, or	251
goods sold, and the date when payable; and also shall give the	252
pledgor a receipt for each payment of principal, storage charge,	253
or interest. All moneys received for any loan shall first be	254
applied to any interest and storage charge on a loan, and any	255
remaining moneys shall then be applied to the amount of unpaid	256
principal of the loan existing on the date on which the moneys are	257
received. The statement also shall contain a full and accurate	258
description of the articles pledged or sold, including any serial	259
and model numbers or identifying marks thereon. In the case of	260
pawn loans, the statement shall contain a full disclosure of all	261
charges for storage, and on the back of the receipt shall be	262
printed in type a copy of section 4727.06 of the Revised Code. The	263
licensee shall retain a copy of the statement for two years from	264
the date of the last entry of the loan or purchase account. Every	265
statement shall be numbered and maintained consecutively,	266
commencing with the number "one," but the licensee may maintain	267
statements in an active and inactive fileseparate files.	268

Sec. 4727.08.  (A) Every person licensed as a pawnbroker	269
shall keep and use separate pawn forms and purchase forms to be	270
approved by the superintendent of financial institutions.	271

(B)(1) The licensee shall record on the appropriate form for	272
each pawn or purchase all of the following information:	273

(1)(a) The date and time of the pledging or purchasing;

274

(2)(b) The amount of the loan or the purchase price;

275

(3)(c) The rate of interest and the charges to be paid on the	276
loan;	277

(4)(d) The time within which the pledgor is to redeem the	278
pledged property;	279

(5)(e) The name, age, and address of the pledgor or seller;

280

(6)(f) A driver's license number, military identification	281
number, or other personal identification number;	282

(7)(g) A physical description of the pledgor or seller;

283

(8)(h) An accurate description of the pledged or purchased	284
property, including the name of the manufacturer, any serial and	285
model numbers, any identifying features, and any identifying	286
letters or marks;	287

(9)(i) Any other disclosures required by federal law;

288

(j) The name of the licensee, and if applicable, the employee	289
identification number of the employee involved in the transaction.	290

(2) A licensee shall include with or attach to the	291
appropriate form a photocopy or scanned image of the pledgor's or	292
seller's personal identification card. As used in division (B)(2)	293
of this section, "personal identification card" means a current	294
and valid driver's license, military identification card, state	295
identification card issued under sections 4507.50 to 4507.52 of	296
the Revised Code, or a state identification card issued by another	297
state on the condition that that card contains information	298
substantially similar to the information contained on a state	299
identification card issued under sections 4507.50 to 4507.52 of	300
the Revised Code and also contains a photograph of the person to	301
whom the card is issued.	302

(C) The licensee may record information on forms specific to	303
the following circumstances:	304

(1) New loans;

305

(2) Loan redemptions;

306

(3) Loan extensions;

307

(4) Partial payments on loans;

308

(5) Forfeited loans;

309

(6) Merchandise purchase receipts;

310

(7) Merchandise sales receipts;

311

(8) Lost ticket affidavits;

312

(9) Requested police copies not picked up by the appropriate	313
law enforcement agency;	314

(10) Other circumstances the licensee encounters.

315

(D) A copy of each form used in a pawn or purchase, including	316
statements retained pursuant to section 4727.07 of the Revised	317
Code, and all forms recorded and maintained in accordance with	318
this section, shall be kept at all times in numerical order by	319
transaction number in an active or inactive fileseparate files,	320
as appropriate, and the licensee shall account for all form	321
numbers.	322

(D)(E) The records and forms, at all times, shall be kept at	323
the licensed location and available for inspection by the	324
superintendent and by the chief of police of the municipal	325
corporation or township in which the licensee's place of business	326
is located or, if the place of business is not located within a	327
municipal corporation or a township that has a chief of police, by	328
the sheriff of the county in which the place of business is	329
located. Upon demand of any of them, the licensee shall produce	330
and show any records, forms, pledges, or purchases which are in	331
the licensee's possession.	332

(E)(F) Except in the case of a pledged motor vehicle,	333
watercraft, or outboard motor, the licensee shall keep all pledges	334
and purchases at the licensee's place of business unless a	335
pledgor, in writing, agrees otherwise at the time the pledge is	336
made. If the item pledged for the pawn loan is a motor vehicle,	337
watercraft, or outboard motor, the licensee shall take possession	338
of both the motor vehicle, watercraft, or outboard motor and the	339
certificate of title to the motor vehicle, watercraft, or outboard	340
motor and shall keep the certificate at the licensee's place of	341
business but, upon notification to the pledgor, may keep the motor	342
vehicle, watercraft, or outboard motor at a location other than	343
the licensee's place of business. No pledge shall be removed from	344
the place of business for the licensee's personal use or gain.	345

(F)(G) Every person licensed as a pawnbroker under this	346
chapter shall keep and use an intelligible set of books and	347
records in the English language in complying with this chapter	348
with respect to recording the details of each purchase or loan.	349
Except as provided in division (J)(K) of this section, all	350
information required to be recorded by this chapter shall be	351
entered in a bound book or on loose-leaf, permanent forms used	352
exclusively for that purpose. Forms shall be identical and	353
consecutively numbered, and each shall contain two or more pages.	354
One part of each form shall be detachable and, when completed,	355
shall serve as the statement to be given by the licensee to the	356
pledgor or seller as provided by section 4727.07 of the Revised	357
Code, the. The remaining part of the form shall be retained in the	358
licensee's permanent records. All forms shall be accounted for.	359

(G)(H) No licensee shall require a borrower to affix the	360
borrower's signature to a blank or partially filled out pawn form	361
or other record.	362

(H)(I) Every licensee shall preserve the licensee's books,	363
forms, accounts, and records for at least two years after making	364
the final entry regarding any purchase or pledge of property	365
recorded therein.	366

(I)(J) All pawn and purchase forms, legal notices, and	367
payment receipt forms shall reflect the name under which the	368
licensee is registered with the superintendent and the complete	369
address of the place of business.	370

(J)(K) Notwithstanding any other provision of this chapter, a	371
licensee may use other methods of recording data, keeping records,	372
and keeping books, such as electronic or computerized methods, in	373
lieu of the methods described in this section, provided written	374
printouts or hard copies of the required data are readily	375
available in a form approved, in advance, by the superintendent.	376

Sec. 4727.09.  (A) A person licensed as a pawnbroker shall,	377
every day, furnish the following information to the chief of	378
police of the municipal corporation or township in which the	379
licensee's place of business is located or, if the place of	380
business is not located within a municipal corporation or a	381
township that has a chief of police, to the sheriff of the county	382
in which the place of business is located:	383

(1) A description of all property pledged with or purchased	384
by the licensee;	385

(2) The number of the pawn or purchase form the licensee used	386
to document the pledge or purchase;	387

(3) The name of the licensee, and if applicable, the employee	388
identification number of the employee involved in the transaction.	389

(B) A licensee shall provide the property description and	390
form number required by division (A) of this section on thea form	391
furnished by the law enforcement officer requesting the	392
informationapproved by the superintendent of financial	393
institutions for the database reporting system described in	394
division (C) of this section. The completed form mayshall be	395
communicated by electronic transfer or be in a magneticdigital	396
media format, unless the chief of police or sheriff requests a	397
paper copy of the approved form.	398

(1) No fee shall be assessed to a licensee, a pledgor, or a	399
seller for compliance with this division.	400

(2) If the form is communicated electronically pursuant to	401
this division, a licensee may notify a pledgor regarding	402
redemption of property as described in division (E) of section	403
4727.11 of the Revised Code.	404

(C) The superintendent shall approve a secure law enforcement	405
database reporting system for use by a licensee to make records	406
available to law enforcement officers as required under division	407
(B) of this section. All information submitted to the database	408
shall be purged two years from the date of the transaction.	409

(D) Except for the information collected pursuant to	410
divisions (A)(1) and (2) of this section, information furnished to	411
law enforcement officers by a licensee pursuant to division (B) of	412
this section is confidential and is not a public record under	413
section 149.43 of the Revised Code.	414

(C)(E) For the purposes of this section, a licensee need	415
provide only the information required by division (A) of this	416
section.	417

Sec. 4727.11.  (A) IfExcept as provided in division (E) of	418
this section, if a pledgor fails to pay interest to a person	419
licensed as a pawnbroker on a pawn loan for two months from the	420
date of the loan or the date on which the last interest payment is	421
due, the licensee shall notify the pledgor by mail, with proof of	422
mailing, to the last place of address given by the pledgor, or by	423
electronic communication, if the pledgor agrees to such	424
communication at the time the loan is made, to the electronic mail	425
address given by the pledgor, that unless the pledgor redeems the	426
pledged property or pays all interest and fees due and storage	427
charges within thirty days from the date the notice is mailed or	428
electronically mailed, the pledged property shall be forfeited to	429
the licensee. If the pledgor fails to redeem or pay all interest	430
and fees due and storage charges within the period specified in	431
the notice, the licensee becomes the owner of the pledged	432
property.	433

(B) In the event that any article or property is redeemed by	434
a person other than the pledgor, the pledgor shall sign the	435
pledgor's copy of the statement required under section 4727.07 of	436
the Revised Code, which copy shall be presented by the person to	437
the licensee. The licensee shall verify the name of the person	438
redeeming the article or property, and shall record the person's	439
name and driver's license number, or other personal identification	440
number, on the licensee's copy of the statement, and shall require	441
the person to sign this copy.	442

(C) In the event that any articles or property pledged are	443
lost or rendered inoperable due to negligence of the licensee, the	444
licensee shall replace the articles or property with identical	445
articles or property, except that if the licensee cannot	446
reasonably obtain identical articles or property, the licensee	447
shall replace the articles or property with like articles or	448
property.	449

(D) When an account is paid in full, the licensee shall	450
return the pledged article immediately to the pledgor. In the	451
event the pledgor sells, transfers, or assigns the pledge, the	452
licensee shall verify the name of the person redeeming the pledge	453
and record that person's name, driver's license number, and	454
signature on the permanent copy of the statement of pledge	455
required pursuant to section 4727.07 of the Revised Code. The	456
licensee also shall obtain the signature of the pledgor, or other	457
person redeeming the pledge, upon a separate record of the	458
transaction, that acknowledges the total dollar amount paid for	459
redemption and the date of redemption. All records shall be kept	460
in the licensee's place of business.	461

(E) If a licensee electronically files the information	462
required by division (A) of section 4727.09 of the Revised Code	463
pursuant to division (B) of that section, the licensee may notify,	464
in accordance with division (A) of this section, a pledgor who	465
fails to pay interest on a pawn loan for one month from the date	466
of the loan or the date on which the last interest payment is due.	467

Sec. 4727.12.  (A) A person licensed as a pawnbroker shall	468
retain any and all goods or articles pledged with the licensee	469
until the expiration of seventy-two hours after the pledge is	470
made, and shall retain any goods or articles purchased by the	471
licensee until the expiration of fifteenthirty days after the	472
purchase is made. The licensee may dispose of such goods or	473
articles sooner with the written permission of the chief of police	474
of the municipal corporation or township in which the licensee's	475
place of business is located or, if the place of business is not	476
located within a municipal corporation or township that has a	477
chief of police, with the written permission of the sheriff of the	478
county in which the business is located.	479

(B) If the chief of police or sheriff to whom the licensee	480
makes available the information required by section 4727.09 of the	481
Revised Code has probable cause to believe that the article	482
described therein is stolen property, the chief or sheriff shall	483
notify the licensee in writing. Upon receipt of such a notice, the	484
licensee shall retain the article until the expiration of thirty	485
sixty days after the day on which the licensee is first required	486
to make available the information required by section 4727.09 of	487
the Revised Code, unless the chief or sheriff notifies the	488
licensee in writing that the licensee is not required to retain	489
the article until such expiration.	490

(C) If the chief or sheriff receives a report that property	491
has been stolen and determines the identity of the true owner of	492
the allegedly stolen property that has been purchased or pawned	493
and is held by a licensee, and informs the licensee of the true	494
owner's identity, and if the true owner fully cooperates with the	495
prosecution of an action against the pledgor or seller, the	496
licensee mayshall restore the allegedly stolen property to the	497
true owner directly. If the true owner does not wish to cooperate	498
with the prosecution of the pledgor or seller, the licensee shall	499
be required to restore the allegedly stolen property to the true	500
owner only upon receipt from the true owner of an amount equal to	501
the amount the licensee paid for or loaned on the allegedly stolen	502
property plus interest and fees provided in section 4727.06 of the	503
Revised Code.	504

If a licensee fails to restore the allegedly stolen property,	505
the true owner may recover the property from the licensee in an	506
action at law.	507

(D) If the licensee returns the allegedly stolen property to	508
the true owner, and if the licensee does not receive payment from	509
the true owner as described in division (C) of this section, the	510
licensee may charge the person who pledged or sold the allegedly	511
stolen property to the licensee, and any person who acted in	512
consort with the pledgor or the seller to defraud the licensee,	513
the amount the licensee paid or loaned for the allegedly stolen	514
property, plus interest and storage charges provided for in	515
section 4727.06 of the Revised Code.	516

Sec. 4727.13.  (A)(1) The superintendent of financial	517
institutions shall adopt rules in accordance with Chapter 119. of	518
the Revised Code for the administration and enforcement of this	519
chapter.	520

(2) The superintendent may adopt rules that allow for remote	521
examinations of electronic data held by a person licensed as a	522
pawnbroker under this chapter.	523

(3) The superintendent may adopt rules describing the data to	524
be used in a secure law enforcement database reporting system for	525
use by a licensee to make records available to law enforcement	526
officers as required under division (B) of section 4727.09 of the	527
Revised Code.	528

(B) The superintendent shall enforce this chapter, make all	529
reasonable effort to discover alleged violators, notify the proper	530
prosecuting officer whenever the superintendent has reasonable	531
grounds to believe that a violation has occurred, act as	532
complainant in the prosecution thereof, and aid such officers to	533
the best of the superintendent's ability in such prosecutions. The	534
superintendent shall employ such deputies as may be necessary to	535
make the investigations and inspections, and otherwise perform the	536
duties imposed by such sections.	537

(C) The superintendent may issue a cease and desist order	538
against any person the superintendent reasonably suspects has	539
violated, is currently violating, or is about to violate this	540
chapter. The superintendent may apply to a court of common pleas	541
for an order compelling a person to comply with any cease and	542
desist order or any subpoena issued by the superintendent.	543

(D) The superintendent may obtain from the court of common	544
pleas any form of injunctive relief against any person that has	545
violated, is currently violating, or is about to violate this	546
chapter.	547

(E) To enforce this chapter, the superintendent may issue a	548
subpoena to any person to compel the production of any item,	549
record, or writing, including an electronic writing, and may issue	550
a subpoena to any person to compel the appearance and rendering of	551
testimony.	552

(F) The superintendent may examine and investigate the	553
business, including the business location and any books, records,	554
writings, including electronic writings, safes, files, or storage	555
areas located in or utilized by the business location, of any	556
person the superintendent reasonably suspects to be advertising,	557
transacting, or soliciting business as a pawnbroker. The	558
superintendent may request the attendance and assistance of the	559
appropriate chief of police of a municipal corporation or	560
township, the county sheriff, or the state highway patrol during	561
the examination and investigation of the business.	562

(G) The superintendent may adopt rules that require a	563
licensee to file a biennial report with the superintendent before	564
the first day of March of the filing year disclosing all relevant	565
pawn transaction activity occurring during the previous two	566
calendar years.	567

(1) If the superintendent requires a licensee to file a	568
biennial report, the biennial report must provide all of the	569
following:	570

(a) The number of pawn transactions made by the licensee	571
during the previous calendar year and the aggregate amount	572
financed on the pawn transactions;	573

(b) The number of pledged property items redeemed during the	574
previous calendar year and the amount financed on the redeemed	575
property;	576

(c) The number of items surrendered to law enforcement;

577

(d) The total dollar amount of pawn loans surrendered to law	578
enforcement;	579

(e) The number of pawn loans that were not redeemed;

580

(f) The total dollar amount of pawn loans not redeemed;

581

(g) The total number of full-time equivalent employees at the	582
pawnshop as of the last day of December of the preceding year.	583

(2) Information furnished to the superintendent by a licensee	584
pursuant to this section is confidential and is not a public	585
record under section 149.43 of the Revised Code, except that the	586
superintendent may furnish a report containing aggregate numbers	587
from all licensees. The aggregate report shall be a public record.	588

Sec. 4727.20.  (A) No person licensed as a pawnbroker under	589
this chapter shall conduct business in this state, unless the	590
licensee does either of the following:	591

(1) Maintains liquid assets in a minimum amount of fiftyone	592
hundred thousand dollars;	593

(2) Obtains a surety bond issued by a bonding company or	594
insurance company authorized to do business in this state. The	595
bond shall be in favor of the superintendent of financial	596
institutions and in the penal sum of at least twenty-fiveone	597
hundred thousand dollars. The licensee shall file a copy of the	598
bond with the superintendent. The bond shall be for the exclusive	599
benefit of any person injured by a licensee's violation of this	600
chapter. The aggregate liability of the surety for any and all	601
breaches of the conditions of the bond shall not exceed the penal	602
sum of the bond.	603

(B) The licensee shall give notice to the superintendent by	604
certified mail, return receipt requested, of any action that is	605
brought against the licensee and of any judgment that is entered	606
against the licensee by a person injured by a violation of this	607
chapter. The notice shall provide details sufficient to identify	608
the action or judgment and shall be filed with the superintendent	609
within ten days after the commencement of the action or notice to	610
the licensee of entry of a judgment. The surety, within ten days	611
after it pays any claim or judgment, shall give notice to the	612
superintendent by certified mail, return receipt requested, of the	613
payment, with details sufficient to identify the person and the	614
claim or judgment paid.	615

(C) Whenever the penal sum of the surety bond is reduced by	616
one or more recoveries or payments, the licensee shall furnish a	617
new or additional bond under this section, so that the total or	618
aggregate penal sum of the bond or bonds equals the sum required	619
by this section, or shall furnish an endorsement executed by the	620
surety reinstating the bond to the required penal sum of the bond.	621

(D) The liability of the surety on the bond to the	622
superintendent and to any person injured by a violation of this	623
chapter is not affected in any way by any misrepresentation,	624
breach of warranty, or failure to pay the premium, by any act or	625
omission upon the part of the licensee, by the insolvency or	626
bankruptcy of the licensee, or by the insolvency of the licensee's	627
estate. The liability for any act or omission that occurs during	628
the term of the surety bond shall be maintained and in effect for	629
at least two years after the date on which the surety bond is	630
terminated or canceled.	631

(E) The licensee shall not cancel the surety bond except upon	632
notice to the superintendent by certified mail, return receipt	633
requested. The cancellation is not effective prior to thirty days	634
after the superintendent receives the notice.	635

(F) No licensee shall fail to comply with this section.

636

Sec. 4727.23.  (A) If property in the possession of a person	637
licensed as a pawnbroker was leased from a lessor to a pledgor or	638
seller when the pledgor or seller pledged or sold the property to	639
the licensee, but the property did not have a permanent label or	640
other conspicuous mark identifying it as the lessor's property,	641
the licensee shall return the property to the lessor if the lessor	642
does both of the following:	643

(1) Provides the licensee with evidence that the property is	644
the lessor's property and was leased to the pledgor or seller at	645
the time the property was pledged or sold to the licensee;	646

(2) Pays the licensee either of the following:

647

(a) The amount financed and the finance fee for the pawn	648
transaction, if the property was pledged to the licensee;	649

(b) The amount that the licensee paid the seller if the	650
property was sold to the licensee.	651

(B) A licensee is not liable to the pledgor or seller of	652
property that is recovered by a lessor under division (A) of this	653
section for returning the property to a lessor.	654

Sec. 4727.99.  (A) Whoever violates sections 4727.03 to	655
4727.214727.23 of the Revised Code is guilty of a misdemeanor of	656
the third degree on a first offense and a misdemeanor of the	657
second degree on each subsequent offense.	658

(B) Whoever violates section 4727.02 of the Revised Code is	659
guilty of a felony of the fifth degree.	660

Section 2.  That existing sections 4505.102, 4727.03,	661
4727.06, 4727.07, 4727.08, 4727.09, 4727.11, 4727.12, 4727.13,	662
4727.20, and 4727.99 of the Revised Code are hereby repealed.	663