Texas Finance Code Title 4, Chapter 371 - Pawnshops

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 371.001 - Short Title
  This chapter shall be known and may be cited as the "Texas Pawnshop Act." Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1,
• Texas Section 371.002 - Purposes
  The purposes of this chapter are to: (1) prevent fraud, unfair practices, discrimination, imposition, and abuse of state residents; (2) exercise the state's police power...
• Texas Section 371.003 - Definitions
  In this chapter: (1) "Applicable liabilities" include trade or other accounts payable; accrued sales, income, or other taxes; accrued expenses; and notes or other payables...
• Texas Section 371.004 - Computation Of Month
  (a) For the computation of time in this chapter, a month is the period from a date in a month to the corresponding date in...
• Texas Section 371.005 - Regulatory Authority
  The legislature has exclusive authority regarding the operation of pawnshops, except for a matter delegated by this chapter to the commissioner. The commissioner has the...
• Texas Section 371.006 - Rulemaking
  (a) The Finance Commission of Texas may adopt rules to enforce this chapter. (b) A rule shall be entered in a permanent record book. The...

SUBCHAPTER B PAWNSHOP LICENSE

• Texas Section 371.007 - Staggered Renewal Of Licenses
  (a) The Finance Commission of Texas by rule may adopt a system under which licenses issued under this chapter expire on various dates during the...
• Texas Section 371.051 - Pawnshop License Required
  A person may not engage in business as a pawnbroker unless the person holds a pawnshop license. Acts 1997, 75th Leg., ch. 1008, Sec. 1,...
• Texas Section 371.052 - Eligibility
  (a) To be eligible for a pawnshop license, an applicant must: (1) be of good moral character; (2) meet the net assets requirement of Section...
• Texas Section 371.053 - Verification Of Applicant's Net Assets
  If the commissioner cannot verify that an applicant meets the net assets requirement of Section 371.072, the commissioner may require a finding, including a current...
• Texas Section 371.054 - License Application
  (a) This section applies to an application for: (1) an original pawnshop license; (2) relocation of a pawnshop; or (3) transfer of a pawnshop license...
• Texas Section 371.055 - Fees; Proof Of Insurance
  An applicant must submit with the application: (1) an investigation fee of: (A) $500 if the applicant does not hold a license; or (B) $250...
• Texas Section 371.056 - Bond
  (a) The commissioner may require that an applicant file a bond with the application. The bond must be: (1) satisfactory to the commissioner; (2) in...
• Texas Section 371.057 - Investigation; Notice Of Application
  (a) On receipt of an application and the required fees, the commissioner shall: (1) conduct an investigation to determine whether to issue the license; and...
• Texas Section 371.058 - Public Hearing
  (a) On request, the commissioner shall conduct a public hearing before issuing a pawnshop license. (b) The commissioner shall give a pawnbroker that would be...
• Texas Section 371.059 - Approval; Issuance Of License
  (a) Subject to Subsection (b), the commissioner shall approve the application and issue a license if the commissioner finds that the applicant is eligible for...
• Texas Section 371.060 - Notice Of Denial; Hearing
  (a) If the commissioner does not make a finding described by Section 371.059, the commissioner shall notify the applicant. (b) An applicant who requests a...
• Texas Section 371.061 - Period For Final Decision To Approve Or Deny
  Unless the applicant and the commissioner agree in writing to a later date, the commissioner shall approve or deny the application before the 61st day...
• Texas Section 371.062 - Disposition Of Fees On Denial Of Application
  If the commissioner denies the application, the commissioner shall retain the investigation fee and shall return to the applicant the annual license fee submitted with...
• Texas Section 371.063 - License Issued Before October 1, 1981
  A license issued to a pawnshop before October 1, 1981, remains valid as long as the pawnbroker complies with this chapter. Acts 1997, 75th Leg.,...
• Texas Section 371.064 - Annual License Fee; Expiration
  (a) Not later than December 1, a pawnbroker shall pay to the commissioner for each license held an annual fee in an amount determined as...
• Texas Section 371.066 - Temporary License
  (a) The commissioner may issue a temporary pawnshop license on receipt of an application: (1) to transfer a license from one person to another; or...
• Texas Section 371.067 - Contents And Display Of License
  (a) A license must state: (1) the name of the pawnbroker; and (2) the address at which the business is to be conducted. (b) A...
• Texas Section 371.068 - Multiple Places Of Business
  (a) A separate pawnshop license is required for each place of business operated under this chapter. (b) The commissioner may issue more than one license...
• Texas Section 371.069 - Change Of Ownership
  (a) An application for an original pawnshop license or the transfer of a pawnshop license is required if a change in direct or beneficial ownership...
• Texas Section 371.070 - Transfer Or Assignment Of License
  A pawnshop license may be transferred or assigned only with the approval of the commissioner. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept....
• Texas Section 371.071 - Application For Relocation
  A pawnbroker who wishes to move a pawnshop from the location provided on the license must make application to the commissioner before the 30th day...
• Texas Section 371.072 - Net Assets Requirement
  (a) Except as provided by Subsection (b), a pawnbroker shall maintain net assets of at least $150,000 that are used or readily available for use...

SUBCHAPTER C PAWNSHOP EMPLOYEE LICENSE

• Texas Section 371.073 - Appointment Of Agent
  (a) A pawnbroker shall maintain on file with the commissioner a written appointment of a resident of this state as the pawnbroker's agent for service...
• Texas Section 371.101 - Pawnshop Employee License Required
  (a) An individual who begins employment at a pawnshop must apply to the commissioner for a pawnshop employee license not later than the 75th day...
• Texas Section 371.102 - Eligibility
  (a) To be eligible for a pawnshop employee license, an individual must: (1) be of good moral character and good business repute; and (2) possess...
• Texas Section 371.103 - License Application; Fees
  (a) An application for a pawnshop employee license must state: (1) the applicant's name and address; (2) the name of the pawnshop at which the...
• Texas Section 371.104 - Approval Or Denial Of Application
  (a) Not later than the 60th day after the date an application is filed, the commissioner shall determine whether the applicant qualifies for a pawnshop...
• Texas Section 371.105 - License Term
  A pawnshop employee license is effective until the license expires or is surrendered, suspended, or revoked. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff....

SUBCHAPTER D OPERATION OF PAWNSHOPS

• Texas Section 371.106 - Annual License Fee; Expiration
  (a) Not later than December 1, a pawnshop employee license holder shall pay to the commissioner an annual fee of $15 for the year beginning...
• Texas Section 371.151 - Hours Of Operation
  (a) A pawnbroker shall maintain normal business hours of at least four hours a day for five days a week. (b) A pawnbroker may not...
• Texas Section 371.152 - Recordkeeping
  (a) A pawnbroker, consistent with accepted accounting practices, shall keep adequate books and records relating to the pawnbroker's pawn transactions and any other business regulated...
• Texas Section 371.153 - Notice Of Operation Of Other Business
  (a) A pawnbroker shall notify the commissioner before the pawnbroker allows another person to conduct at the pawnshop a business other than the business of...
• Texas Section 371.154 - Insurance And Bond
  (a) A pawnbroker shall maintain general liability and fire insurance: (1) in a reasonable amount and form required by the commissioner; and (2) sufficient to...
• Texas Section 371.155 - Pawnshop Security
  A pawnshop shall have: (1) one or more alarm systems sufficient to detect and signal unauthorized entry or the presence of an unauthorized person to...
• Texas Section 371.156 - Pawn Transaction
  (a) Items that are usually sold as a set are considered a single item and must be included in the same pawn transaction. (b) A...
• Texas Section 371.157 - Pawn Ticket
  A pawnbroker, at the time a pawn transaction is entered, shall deliver to the pledgor a pawn ticket or other memorandum that clearly shows: (1)...
• Texas Section 371.158 - Amount Financed
  The amount financed by a pawn transaction may not exceed the amount computed under Subchapter C, Chapter 341, using the reference amount of $2,500. Acts...
• Texas Section 371.159 - Pawn Service Charge
  (a) A pawnbroker may not contract for, charge, or receive an amount, other than a pawn service charge, as a charge for credit in connection...
• Texas Section 371.160 - Maturity Date; Memorandum Of Extension
  (a) A pawnbroker may not enter a pawn transaction that has a maturity date later than one month after the date of the transaction. (b)...
• Texas Section 371.161 - Early Redemption: Reduction Of Pawn Service Charge
  If a pledgor redeems the pledged goods before the maturity date of the pawn transaction, any part of the pawn service charge that exceeds $15...
• Texas Section 371.162 - Presentation Of Ticket; Presumption
  Except as provided by Section 371.163(a), a person who presents proper identification and a pawn ticket to the pawnbroker is presumed to be entitled to...
• Texas Section 371.163 - Lost Or Destroyed Ticket
  (a) If a pawn ticket is lost, destroyed, or stolen, the pledgor may notify the pawnbroker of that fact in writing. Receipt of this notice...
• Texas Section 371.164 - Duty Of Reasonable Care
  A pawnbroker shall exercise reasonable care to protect pledged goods from loss or damage. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1,
• Texas Section 371.165 - Return Of Pledged Goods
  A pawnbroker shall return pledged goods to the pledgor on payment of the total amount due the pawnbroker in connection with the pawn transaction. Acts...
• Texas Section 371.166 - Redemption By Mail
  A pawnbroker shall permit a pledgor to redeem pledged goods by mail. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
• Texas Section 371.167 - Lost Or Damaged Goods
  (a) A pawnbroker shall replace pledged goods that are lost or damaged while in the pawnbroker's possession with like kind merchandise. The replacement is subject...
• Texas Section 371.168 - Exemption From Criminal Liability
  A pawnbroker is not criminally liable for damages or loss due to an act of God or circumstances beyond the pawnbroker's control. Acts 1997, 75th...
• Texas Section 371.169 - Unredeemed Pledged Goods; Forfeiture
  (a) A pawnbroker shall hold pledged goods not redeemed by the pledgor on or before the maturity date stated in the pawn ticket issued in...
• Texas Section 371.170 - Redemption Or Payment By Pledgor Not Required
  A pledgor is not obligated to redeem pledged goods or to make a payment on a pawn transaction. Acts 1997, 75th Leg., ch. 1008, Sec....
• Texas Section 371.171 - Agreement Requiring Pledgor's Personal Liability Prohibited
  A pawnbroker may not enter an agreement requiring the personal liability of the pledgor in connection with a pawn transaction. Acts 1997, 75th Leg., ch....
• Texas Section 371.172 - Waiver Of Pledgor's Rights Prohibited
  A pawnbroker may not accept a waiver of a right or protection of a pledgor under this chapter. Acts 1997, 75th Leg., ch. 1008, Sec....
• Texas Section 371.173 - Insurance Charge Limited
  A pawnbroker may not impose a charge for insurance in connection with a pawn transaction, except that a pawnbroker may impose a charge in the...
• Texas Section 371.174 - Identification Of Pledgor Or Seller Required
  (a) A pawnbroker shall require identification of: (1) the pledgor if a transaction is a pawn transaction; or (2) the seller if a transaction is...
• Texas Section 371.175 - Property Identification Tags Required
  (a) A pawnshop shall identify by a tag or similar means each item of goods located in the pawnshop that: (1) has a retail or...
• Texas Section 371.176 - Transactions With Minors Or Persons Under The Influence Of Alcohol Or Drugs Prohibited
  A pawnbroker may not: (1) accept a pledge or purchase property from a person under 18 years of age; or (2) transact business with a...
• Texas Section 371.177 - Purchase Of Used Personal Property
  A pawnbroker may not purchase used personal property from a person other than another pawnbroker unless a record is established that contains: (1) the seller's...
• Texas Section 371.178 - Acceptance Of Building Construction Materials
  (a) A pawnbroker may not accept the pledge of building construction materials unless a record is established that contains the information required by Section 371.177....
• Texas Section 371.179 - Displays Of Certain Weapons Prohibited
  A pawnbroker may not display for sale in a storefront window or sidewalk display case or depict on a sign or advertisement in such a...
• Texas Section 371.180 - Advertisements
  (a) A person who does not hold a pawnshop license may not: (1) advertise or cause to be advertised the making, arranging, or negotiating of...
• Texas Section 371.181 - Stolen Goods
  (a) A pawnbroker shall monitor goods purchased, accepted in pawn, or otherwise acquired by the pawnbroker in order to identify and prohibit transactions involving stolen...
• Texas Section 371.182 - Hold Period
  The commissioner may designate a reasonable hold period during which a pawnbroker may not sell or otherwise dispose of an item of goods acquired and...

SUBCHAPTER E INSPECTIONS AND EXAMINATIONS

• Texas Section 371.183 - Consumer Information
  The Finance Commission of Texas by rule may require a pawnshop to display, in an area in the pawnshop accessible to a consumer, materials provided...
• Texas Section 371.201 - Examination By Commissioner
  At any time the commissioner considers necessary, the commissioner or the commissioner's representative may: (1) examine a pawnbroker's place of business; (2) inquire into and...
• Texas Section 371.202 - Access To Records; Copies
  (a) During an examination the pawnbroker shall give the commissioner or the commissioner's representative free access to the pawnbroker's office, place of business, files, safe,...
• Texas Section 371.203 - Oaths
  During an examination the commissioner or the commissioner's representative may administer an oath and examine a person under oath on a subject relating to a...
• Texas Section 371.204 - Inspection By Peace Officer
  A pawnbroker shall allow a peace officer to inspect the pawnbroker's books, accounts, papers, correspondence, or other records that relate to the business of the...
• Texas Section 371.205 - Refusal To Allow Examination Or Inspection
  A pawnbroker who fails or refuses to permit an examination or copying of books or other documents or an examination or inspection of goods authorized...
• Texas Section 371.206 - Confidentiality
  Information obtained during an examination or inspection authorized by this subchapter is confidential and privileged except for use by the commissioner or in a criminal...
• Texas Section 371.207 - Fee
  A pawnbroker shall pay to the commissioner an amount assessed by the commissioner to cover the direct and indirect costs of an examination and a...

SUBCHAPTER F LICENSE REVOCATION, SUSPENSION, AND SURRENDER

• Texas Section 371.208 - Verification Of Net Assets
  If the commissioner questions the amount of a pawnbroker's net assets, the commissioner may require certification by an independent certified public accountant that: (1) the...
• Texas Section 371.251 - Revocation Or Suspension Of Pawnshop License
  (a) After notice and hearing, the commissioner may revoke or suspend a pawnshop license if the commissioner finds that: (1) the pawnbroker has not paid...
• Texas Section 371.252 - Effect Of Revocation, Suspension, Or Surrender Of Pawnshop License
  Revocation, suspension, or surrender of a pawnshop license does not affect a preexisting contract between the pawnbroker and a pledgor. Acts 1997, 75th Leg., ch....
• Texas Section 371.253 - Notice Of Revocation
  (a) On revocation of a pawnshop license by the commissioner, the pawnbroker shall send notice of the revocation to each pledgor with goods in the...
• Texas Section 371.254 - Redemption Of Goods After License Revocation Or Suspension
  (a) After revocation of a pawnshop license, the pawnbroker, for the sole purpose of allowing a pledgor to redeem pledged goods, shall maintain usual business...
• Texas Section 371.255 - Revocation Or Suspension Of Pawnshop Employee License
  After notice and hearing, the commissioner may revoke or suspend a pawnshop employee license if the commissioner finds that: (1) the license holder knowingly or...
• Texas Section 371.256 - Hearing
  (a) The commissioner shall send written notice of a pawnshop employee license revocation or suspension hearing to: (1) the license holder; and (2) the employing...
• Texas Section 371.257 - Surrender Of License
  (a) The holder of a pawnshop license or a pawnshop employee license may surrender the license by delivering it to the commissioner with written notice...
• Texas Section 371.258 - Reinstatement Of License
  (a) This section applies to a pawnshop license or a pawnshop employee license. (b) The commissioner may reinstate a suspended pawnshop license or pawnshop employee...

SUBCHAPTER G ENFORCEMENT; PENALTIES

• Texas Section 371.259 - Certificate Of Standing; Copies
  The commissioner, under the commissioner's seal and signature, shall provide a certificate of good standing or a certified copy of a pawnshop license or a...
• Texas Section 371.301 - Commissioner's Enforcement Powers
  For purposes of enforcing this chapter, the commissioner: (1) has the powers granted to the commissioner under Chapter 14; (2) may exercise those powers in...
• Texas Section 371.302 - Order To End Violation; Injunction; Damages
  (a) If the commissioner has reasonable cause to believe that a person is violating this chapter, the commissioner, in addition to and without prejudice to...
• Texas Section 371.303 - Administrative Penalty
  (a) The commissioner may assess an administrative penalty against a person who violates this chapter or a rule adopted under this chapter. (b) The commissioner...
• Texas Section 371.304 - Acting Without A License; Offenses
  (a) A person who violates Section 371.051 commits an offense. (b) A person commits an offense if the person: (1) accepts employment at a pawnshop...
• Texas Section 371.305 - Wilful Violation Of Chapter; Offense
  (a) A person commits an offense if the person holds a license under this chapter and: (1) wilfully violates this chapter; or (2) wilfully makes...
• Texas Section 371.306 - Penalty For Certain Violations
  (a) A pawnbroker who contracts for, charges, or collects a pawn service charge that is greater than the amount authorized by this chapter or otherwise...

Last modified: September 28, 2016