STAND. COM. REP. NO.  556-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2553

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2553 entitled:

"A BILL FOR AN ACT RELATING TO PAWNBROKERS AND SECONDHAND DEALERS,"

begs leave to report as follows:

     The purpose of this bill is to ensure the timely reporting of pawnbroker and secondhand dealer transactions to law enforcement by requiring daily electronic reporting of these activities.

     The Honolulu Police Department testified in support of this bill.  The Hawaii Pawnbrokers Association and Secondhand Dealers supported the intent of this measure.  Kaneohe Pawn, Kamaaina Loan, and the Jewel Masters opposed this bill.  Paradise Loan & Jewelry, LLC, and a concerned individual submitted comments.

     Your Committee has amended this bill by:

(1)  Providing that the administrative fee to offset the costs of the electronic reporting system applies to each pawn transaction, except for pawn transactions of less than $20 that may be reported manually to the police through the delivery of paper tickets twice a week;

(2)  For pawnbrokers and secondhand dealers who are unable to afford the equipment necessary for daily electronic reporting:

          (A)  Allowing these persons to manually record pawn transactions and report them to the police through the delivery of paper tickets twice a week; and

          (B)  Requiring these persons to pay the administrative fee on pawn transactions of at least $20 to help offset the administrative costs of the electronic reporting system;

and

(3)  Making technical, nonsubstantive amendments for clarity and style.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2553, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2553, H.D. 1, and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair