Committee advances bill adding state penalty for title-pawn lenders dealing with service members

Chairman Bonner presented House Bill 110 as a carryover aimed at strengthening consumer protections for active-duty service members.

"This simply adds an additional state level protection for our active component service members," Chairman Bonner said, describing a civil penalty provision tied to title-pawn transactions.

The bill, presented under legislative file LC 461000, targets title-pawn lenders (not pawn shops) and adds a state enforcement mechanism to backstop federal protections under the Military Lending Act. The measure specifies a civil penalty equal to four times the principal amount advanced in such transactions.

Chairman Thomas opened the committee to questions; none were offered. Representative Hitchens moved to pass the bill and a second was recorded. The committee adopted the motion by voice vote and the measure passed unanimously; the transcript records a voice vote without a roll-call tally.

The bill is a carryover from the prior session, and sponsors said the language is intended to complement federal law rather than replace it. Committee discussion clarified that the industry affected is title-pawn lending and that companies typically rely on customer disclosure and periodic audits to avoid doing business with protected service members.

The committee recorded no dissent on the floor. Next steps are committee transmittal to the full chamber and any required engrossing steps before a final vote by the full House or transmission to the governor.