senate Bill S4115A

Amended

Relates to collateral loan brokers; repealer

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 08 / Mar / 2013
    • REFERRED TO CONSUMER PROTECTION
  • 14 / Jun / 2013
    • AMEND (T) AND RECOMMIT TO CONSUMER PROTECTION
  • 14 / Jun / 2013
    • PRINT NUMBER 4115A
  • 08 / Jan / 2014
    • REFERRED TO CONSUMER PROTECTION
  • 11 / Apr / 2014
    • AMEND (T) AND RECOMMIT TO CONSUMER PROTECTION
  • 11 / Apr / 2014
    • PRINT NUMBER 4115B

Summary

Relates to collateral loan brokers.

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Bill Details

Versions:
S4115
S4115A
S4115B
Legislative Cycle:
2013-2014
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Amd ยง46, Gen Bus L
Versions Introduced in 2013-2014 Legislative Cycle:
A6093

Sponsor Memo

BILL NUMBER:S4115A

TITLE OF BILL: An act to amend the general business law, in relation
to permitting storage fees in connection with collateral loans

PURPOSE OF BILL: The purpose of the bill is to update New York
statutes currently regulating what are identified as collateral loan
brokers, by enacting a rigorous licensure, regulatory and enforceable
scheme of law applicable to what everyone commonly refers to as
pawnbrokers. By enacting the strict measures contained herein, the
state recognizes its moral responsibility to those who absent the
existence of pawnbrokers, may have no access to credit when absolutely
necessary.

SUMMARY OF PROVISIONS: OF BILL: The New York Pawnbroking Act enacted
by the provisions of this bill provides for an extensive revision of
the provisions of New York law as it relates to the conduct of
business conducted by pawnshop, which in existing law references
collateral loan givers. It requires those conducting such a pawn
business to obtain an annual license, and imposes detailed security
requirements upon those who hold themselves out as pawnbrokers. Each
pawn shop must maintain a net worth of at least $50,000 or file
security in the form of a bond, letter of credit or certificate of
deposit in the amount of $10,000 and further authorizes licensing fees
and imposes penalties for non-compliance with the law. Enforcement of
the law would be under the jurisdiction of the State attorney General,
and the bill permits local law enforcement leeway to also act upon
violations.

Section 1 of the bill repeals the existing antiquated Article 5 of the
General Business Law, and adds a new article 5 relating to pawnbrokers
as commonly identified.

Sections 2, 3, 4 and 5 of the bill amend section 340 of the banking
law, sections 165.45 and 165.55 of the penal law, and section 202-a of
the lien law respectfully to delete old references to "collateral loan
brokers" and update such sections to state they are still applicable
to pawnbrokers.

Section 6 of the bill is the effective date.

JUSTIFICATION: The provisions of the bill are two folded. First by
enacting the strict licensure provisions contained in the new language
added to the general business law, the state can insure to the public
that only responsible and able entities are carrying the business of
pawning; that violations of the duties pawnbrokers owe to the public
with whom the deal are severely dealt with, and that the best
interests of the state are realized by a systematic and dependable
enforcement procedure. Secondly, the statutes as altered in the bill
recognize and address the need to modernize the oversight of the
business of pawnbroking so that the public can be confident with the
business with whom they are partnering.

LEGISLATIVE HISTORY: This is a new bill for the 2013 Session


FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Considerable
revenue will be realized to offset any increase in enforcement and
regulatory requirements to the benefit of the state.

EFFECTIVE DATE: This act shall take effect on the first day of
November next succeeding the date upon which it shall have become a
law, except that any rules and regulations necessary for the operation
and enforcement of this act may be implemented immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4115--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 8, 2013
                               ___________

Introduced  by  Sens.  SAVINO, ADDABBO, AVELLA -- read twice and ordered
  printed, and when printed to be committed to the Committee on Consumer
  Protection -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the general business  law,  in  relation  to  permitting
  storage fees in connection with collateral loans

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 46 of the general business law, as amended by chap-
ter 651 of the laws of 2005, is amended to read as follows:
  S 46. Rate of interest; STORAGE  FEE.    1.  (A)  Notwithstanding  any
general  or special statutes, local laws and ordinances to the contrary,
no collateral loan broker shall ask, demand or receive any greater  rate
of  interest than four per centum per month, or any fraction of a month,
and a notice containing a list of  such  rates  of  interest  as  herein
provided  and  in accordance with the act of congress entitled "Truth in
Lending Act" and the regulations thereunder, as such act and regulations
may from time to time be amended shall be conspicuously displayed within
the premises of such collateral loan broker. A minimum  interest  charge
of twenty-five cents per month may be made on any loan.
  (B)  No  collateral  loan  broker  shall receive or be entitled to any
interest or charges OR STORAGE FEE as provided by this  article  on  any
loan  for  any  period of time exceeding fifteen months from the date of
the making of such loan, provided however that where a loan is  extended
at  the  direct  request  of the pledgor, the collateral loan broker may
receive and be entitled to any interest  or  charges  provided  by  this
article on such loan for any period of time not to exceed fifteen months
from the date of such extension.
  2.  NOTWITHSTANDING ANY GENERAL OR SPECIAL LAW, LOCAL LAW OR ORDINANCE
TO THE CONTRARY, NO COLLATERAL LOAN BROKER SHALL ASK, DEMAND OR  RECEIVE
A  STORAGE  FEE WHICH EXCEEDS AN AMOUNT EQUAL TO THIRTEEN PERCENT OF THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09597-03-3

S. 4115--A                          2

AMOUNT OF THE LOAN FOR THE FIRST THIRTY DAYS, AND SEVENTEEN  PERCENT  OF
THE  AMOUNT  OF THE LOAN FOR EACH THIRTY DAYS OR PORTION THEREOF IF SUCH
LOAN IS EXTENDED BEYOND THIRTY DAYS AT THE SOLE DISCRETION OF THE  PLED-
GOR.
  S 2. This act shall take effect immediately and shall apply to collat-
eral loans made on or after such date.

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