A bill to amend 1917 PA 273, entitled “An act to regulate and license pawnbrokers that conduct business in this state; to provide for the disposition of allegedly misappropriated property in the possession of pawnbrokers; to provide remedies and prescribe penalties; and to provide for the powers and duties of certain local governmental units and state agencies,” by amending sections 8 and 9 (MCL 446.208 and 446.209), section 8 as amended by 2002 PA 469 and section 9 as amended by 2018 PA 345.
House Bill No. 5536 seeks to amend the 1917 PA 273, which governs the regulation and licensing of pawnbrokers in Michigan. The bill specifically targets sections 8 and 9, proposing changes to the documentation required for pawnbroker transactions and the charges that can be applied. Key provisions include:
Pawnbrokers must provide a free memorandum at the time of a loan, detailing the transaction and stating that any interest or charges over 5% per month, plus specified storage charges, will render the loan void. The allowable interest rate is capped at 5% per month, with a storage fee of $3.00 per month for each item pawned. The bill prohibits charging interest in advance or any fees beyond those established in the act. The bill's enactment is contingent upon the passage of either Senate Bill No. ____ or House Bill No. 5535 of the 102nd Legislature.
Co-sponsored by Reps.
Referred to the Committee on Regulatory Reform
Reported without amendment
Passed in the House 90 to 20 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
Referred to the Committee on Regulatory Affairs
