House committee advances state penalty for title-pawn transactions involving service members

The House Defense and Veterans Affairs Committee voted to advance House Bill 110, a measure that would create a state-level civil penalty for title-pawn transactions involving service members.

The bill’s sponsor told the committee the measure uses language previously adopted in a substitute for Senate Bill 451 and is intended to mirror the federal Military Lending Act. "This is actually the same language that we used when we did a substitute for Senate Bill 451 last year," the presenter said. He described the penalty in the bill as "a civil penalty of 4 times the principal amount, advanced in that pawn transaction." He also noted that a prior enforcement action produced a fine "in excess of $10,000,000."

The measure would allow state authorities to enforce the prohibition when it occurs in Georgia. Committee members sought clarification about enforcement and potential duplication with federal penalties. "So there it is a federal law, but there's not — we don't know what the federal penalty is," one member said. The presenter replied that the federal Military Lending Act is enforceable under federal law but that the bill would give state prosecutors a parallel remedy so any penalty could be pursued by the state rather than only under federal enforcement.

Committee members raised several practical questions. Representative Davis asked whether creating a state enforcement mechanism would impose additional costs on district attorneys or the attorney general; the presenter said no one-time physical notice is required and he was not aware of a need for special filing procedures tied to a new civil penalty. Representative Holcomb asked whether the bill would bar ordinary pawn transactions; the presenter said the bill is limited to title pawns involving vehicle titles and "does not in any way affect" normal pawn-shop transactions.

Supporters, including a retired military officer on the committee, spoke in favor of the measure as a protection for service members who may be targeted by high-cost title loans.

A motion to move House Bill 110 forward passed in voice vote; the committee did not record a roll-call tally. The bill was reported out to the Rules Committee.

If enacted, the bill would create a new state civil penalty and enable state prosecutors to seek damages specified in the bill. The committee did not set an implementation date; enforcement pathways were described as available to the attorney general or local district attorneys.