BILL NUMBER: AB 1297	CHAPTERED  10/04/01

	CHAPTER  505
	FILED WITH SECRETARY OF STATE  OCTOBER 4, 2001
	APPROVED BY GOVERNOR  OCTOBER 4, 2001
	PASSED THE SENATE  AUGUST 28, 2001
	PASSED THE ASSEMBLY  MAY 24, 2001
	AMENDED IN ASSEMBLY  APRIL 25, 2001
	AMENDED IN ASSEMBLY  APRIL 5, 2001

INTRODUCED BY   Assembly Member Papan

                        FEBRUARY 23, 2001

   An act to amend Sections 21200.1, 21200.6, and 21201.2 of the
Financial Code, relating to pawnbrokers.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1297, Papan.  Pawnbrokers.
   Existing law limits pawnbroker loan setup fees, handling and
storage charges, and fees for certain notices to specified amounts.
Existing law provides that a pawnbroker may collect a handling and
storage charge for each article pawned and that an item smaller than
one cubic foot is not subject to an additional storage charge.
Furthermore, existing law provides that a broker may charge an
additional fee for a vehicle larger than 6 cubic feet.
   This bill would increase the amounts that may be charged for these
services.  The bill would also authorize an additional storage
charge on all items larger than 6 cubic feet.
   Because a knowing violation of the provisions of the bill would be
a misdemeanor, the bill would impose a state-mandated local program
by creating new crimes.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 21200.1 of the Financial Code is amended to
read:
   21200.1.  A loan setup fee not to exceed three dollars ($3) may be
charged for each loan, up to and including fifty dollars ($50).  A
loan setup fee of five dollars ($5) may be charged for loans in
excess of fifty dollars ($50).  Loan setup fees are in addition to
any other allowed charges.
  SEC. 2.  Section 21200.6 of the Financial Code is amended to read:

   21200.6.  (a) In addition to other allowed charges, at the time
property is redeemed a pawnbroker may collect a handling and storage
charge for certain pawned articles.  Irrespective of the duration of
the loan, the maximum amount that may be charged pursuant to this
section is in accordance with the following schedule:
   (1) Five dollars ($5) for any article that cannot be contained
within one cubic foot.
   (2) Ten dollars ($10) for any article that cannot be contained
within three cubic feet.
   (3) Twenty dollars ($20) for any article that cannot be contained
within six cubic feet and one dollar ($1) for each additional cubic
foot in excess of six cubic feet.
   (b) No storage charge is allowed for any article that can be
contained within one cubic foot.
   (c) For purposes of this section, cubic feet shall be determined
by multiplying the width of an article, at its greatest width, by the
depth of an article, at its greatest depth, by the height of an
article, at its greatest height.
  SEC. 3.  Section 21201.2 of the Financial Code is amended to read:

   21201.2.  If the pledgor fails to redeem any pawned item during
the loan period, thereby obliging the pawnbroker to mail the notice
required under Section 21201, the pawnbroker may charge a fee of up
to three dollars ($3) for services and costs pertaining to the
preparation of the notice, in addition to any other allowed charges.

  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.