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Committee advances modest pawn-broker fee changes in voice vote
Summary
After staff briefing and brief discussion, the committee voted unanimously to report HB 1269 (pawnbroker fee and term adjustments) out of committee with a due-pass recommendation; the bill shortens loan terms and modestly raises interest and storage fees.
The Consumer Protection and Business Committee reported House Bill 1269 out of committee with a due-pass recommendation following a voice vote on Jan. 14.
Staff described the bill as updating statutory terms for pawnbrokers: reducing maximum loan term from 90 days to 60 days; raising the interest rate on loans of $100 or more from 4% to 5% per 30-day period; setting a document preparation fee at 15% for loans of $50 or more; increasing storage fees for general items and firearms from $5 to $10 per 30-day period; and allowing pawnbrokers to accept online payment when rewriting a loan. Staff noted no amendments were in the books.
Supporters, including Representatives Hackney and McClintock, said the changes are modest and intended to help small pawnbroker businesses that provide short-term cash services to unbanked communities and have not had an increase since 2015. Representative Hackney emphasized the role of pawnbrokers in providing accessible short-term credit in some communities.
The committee moved and seconded a motion to report the bill with a due-pass recommendation and conducted a voice vote. The clerk reported 15 members present, all voting in the affirmative; HB 1269 was therefore reported out of committee with a due-pass recommendation.
Ending: HB 1269 advances from committee; sponsors indicated it is a modest update to fees and terms last updated in 2015.
