Committee advances state penalty for title-pawn transactions with service members

The Georgia House Defense and Veteran Affairs Committee voted to advance House Bill 110, a measure that would create a state-level penalty for title-pawn lenders who do business with service members.

John Bonner, the bill presenter, told the committee the proposal “creates a state level penalty, for any, members of the title pawn industry in Georgia that do business with service members.” He said the language mirrors a substitute used last year for Senate Bill 451.

The bill aims to backstop the federal Military Lending Act, which Bonner described as already making such conduct illegal under federal law. “Currently, according to federal law, the Military Lending Act, it is illegal for, that industry to do business with, members of the military. And so what we're doing is just bringing that, and and instituting a state penalty, in the event that occurs,” Bonner said.

Under the draft bill, a civil penalty would be calculated as four times the principal amount advanced in the title-pawn transaction. Bonner noted prior federal enforcement actions, saying “one of the larger fines a couple years ago against one of these companies was in excess of $10,000,000.” The legislation names state authorities — the attorney general or a district attorney — as enforcement agents rather than leaving enforcement solely to federal authorities.

Committee members asked about possible duplication of penalties between federal and state enforcement. Representative Brian Prince asked whether the bill would result in “double dipping.” Bonner replied, “Well, we're not, we're not double dipping, but what we are doing is we are allowing, state authorities to, enforce this law. And then, you know, in the event there is a penalty, it goes to the state versus the federal government.”

Representatives pressed for the bill’s scope. Representative Holcomb confirmed the measure targets title pawns for motor vehicles only: “It's the title pawn. Yes. That's correct.” Bonner clarified the bill does not alter ordinary pawnshop transactions for consumer goods such as tools or jewelry.

Representative Davis asked whether enforcement by the attorney general or district attorneys would impose additional costs on those offices; Bonner said the bill does not include a specific fiscal note requiring a physical appropriation and that it would fit within existing civil enforcement frameworks.

Supporters framed the measure as consumer protection for service members. Representative Floyd Griffin, speaking from his military experience, said he “totally support[s] this.” After brief discussion the committee approved a motion to advance House Bill 110 to the Rules Committee by voice vote; the committee record states “motion carries” and the bill will move forward for further consideration.

House Bill 110 will next be considered by the Rules Committee; the draft bill text specifies a civil penalty equal to four times the principal advanced on a motor vehicle title pawn and names the attorney general and district attorneys as enforcement authorities.