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Senate committee pulls repeal of 2017 pawnbroker licensing law for more review
Summary
The Senate Insurance & Commerce Committee postponed action on a bill that would repeal the 2017 pawnbroker licensing provisions after members requested legal review of interest-rate caps, sponsor intent, and which agency would handle complaints if the commission is dissolved.
The Senate Insurance & Commerce Committee paused consideration of Senate Bill 184, a proposal to repeal the 2017 law establishing a licensure scheme for pawnbrokers, after members raised questions about oversight and consumer protections.
Senator Irvin introduced the bill and turned questions to the Department of Labor and Licensing. Department staff member Steve Guntharp told the committee that the 2017 act created a commission but "no appropriation was ever passed," and "no license has ever been issued and no rules have ever been adopted." Guntharp said the department had met with the commission chair about repeal and that no industry members had contacted the secretary regarding the commission since that meeting.
Several senators expressed concern about the practical effects of repeal. Senator Elliott and Senator Teague asked whether pawnbrokers have been regulated in practice and who would enforce laws if the commission were dissolved. Senator Hammer pointed to language on page 4 that appeared to cap interest rates and asked whether repealing the statute would remove that cap. "If that's not covered somewhere else, we're fixing to pull the lid off something," Hammer said, urging caution and legal review.
Senator Ingram asked for additional research into the original sponsor and intent of the 2017 measure and requested information about how many other states have similar regulatory structures. Hammer also asked the department to check whether the attorney general's complaint division would assume responsibility for pawnbroker complaints and whether any appropriation or staff adjustments would be necessary.
After compiling those follow-up questions, Senator Irvin agreed to "pull it down" so the committee can get answers and rehear the bill later. No formal vote was taken on SB 184 during the meeting.
The committee asked staff to consult with legal counsel about the page-4 interest-rate language (lines cited in committee discussion), to confirm who would handle complaints if the commission is repealed, to collect sponsor history and intent from 2017, and to survey industry stakeholders and interstate regulatory practices before the bill returns to committee.
