1.1                          A bill for an act
  1.2             relating to consumer protection; providing for maximum 
  1.3             permitted charges by pawnbrokers; prohibiting the 
  1.4             pledge or sale of property to a pawnbroker by a person 
  1.5             under 21 years of age; amending Minnesota Statutes 
  1.6             1996, sections 325J.07; and 325J.08. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 325J.07, is 
  1.9   amended to read: 
  1.10     325J.07 [PERMITTED CHARGES.] 
  1.11     (a) Notwithstanding any other statute, ordinance, rule, 
  1.12  regulation, or section 325J.13, a pawnbroker may contract for 
  1.13  and receive a pawnshop charge not to exceed three two percent 
  1.14  per month of the principal amount advanced in the pawn 
  1.15  transaction plus a reasonable fee for storage and services.  A 
  1.16  fee for storage and services may not exceed $20 if the property 
  1.17  is not in the possession of the pawnbroker.  
  1.18     (b) The pawnshop charge allowed under paragraph (a) shall 
  1.19  be deemed earned, due, and owing as of the date of the pawn 
  1.20  transaction and a like sum shall be deemed earned, due, and 
  1.21  owing on the same day of the succeeding month.  However, if full 
  1.22  payment is made more than two weeks before the next succeeding 
  1.23  date, the pawnbroker shall remit one-half of the pawnshop charge 
  1.24  for that month to the pledgor. 
  1.25     (c) Interest shall not be deducted in advance, nor shall 
  1.26  any loan be divided or split so as to yield greater interest or 
  2.1   fees than would be permitted upon a single, consolidated loan or 
  2.2   for otherwise evading any provisions of this section. 
  2.3      (d) Any interest, charge, or fees contracted for or 
  2.4   received, directly or indirectly, in excess of the amount 
  2.5   permitted under this section, shall be uncollectible and the 
  2.6   pawn transaction shall be void. 
  2.7      (e) A schedule of charges permitted by this section shall 
  2.8   be posted on the pawnshop premises in a place clearly visible to 
  2.9   the general public. 
  2.10     Sec. 2.  Minnesota Statutes 1996, section 325J.08, is 
  2.11  amended to read: 
  2.12     325J.08 [RECORDS; PROHIBITIONS.] 
  2.13     A pawnbroker and any clerk, agent, or employee of a 
  2.14  pawnbroker shall not: 
  2.15     (1) make any false entry in the records of pawn 
  2.16  transactions; 
  2.17     (2) falsify, obliterate, destroy, or remove from the place 
  2.18  of business the records, books, or accounts relating to the 
  2.19  licensee's pawn transactions; 
  2.20     (3) refuse to allow the appropriate law enforcement agency, 
  2.21  the attorney general, or any other duly authorized state or 
  2.22  federal law enforcement officer to inspect the pawn records or 
  2.23  any pawn goods in the person's possession during the ordinary 
  2.24  hours of business or other times acceptable to both parties; 
  2.25     (4) fail to maintain a record of each pawn transaction for 
  2.26  three years; 
  2.27     (5) accept a pledge or purchase property from a person 
  2.28  under the age of 18 21 years; 
  2.29     (6) make any agreement requiring the personal liability of 
  2.30  a pledgor or seller, or waiving any provision of this section, 
  2.31  or providing for a maturity date less than one month after the 
  2.32  date of the pawn transaction; 
  2.33     (7) fail to return pledged goods to a pledgor or seller, or 
  2.34  provide compensation as set forth in section 325J.09, upon 
  2.35  payment of the full amount due the pawnbroker unless either the 
  2.36  date of redemption is more than 60 days past the date of the 
  3.1   pawn transaction, renewal, or extension and the pawnbroker has 
  3.2   sold the pledged goods pursuant to section 325J.06, or the 
  3.3   pledged goods have been taken into custody by a court or a law 
  3.4   enforcement officer or agency; 
  3.5      (8) sell or lease, or agree to sell or lease, pledged or 
  3.6   purchased goods back to the pledgor or seller in the same, or a 
  3.7   related, transaction; 
  3.8      (9) sell or otherwise charge for insurance in connection 
  3.9   with a pawn transaction; or 
  3.10     (10) remove pledged goods from the pawnshop premises or 
  3.11  other storage place approved by a municipality at any time 
  3.12  before unredeemed, pledged goods are sold pursuant to section 
  3.13  325J.06.