2016 -- H 7027

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LC003259

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO FINANCIAL INSTITUTIONS - PAWNBROKERS LIABILITY FOR

SELLING STOLEN GOODS

     

     Introduced By: Representatives Bennett, McNamara, Hull, Carnevale, and Williams

     Date Introduced: January 07, 2016

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 19-26 of the General Laws entitled "Pawnbrokers" is hereby

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amended by adding thereto the following section:

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     19-26-20. Pawn shop owner liability. – (a) The sale of a chattel by the owner of a pawn

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shop, or their agent, shall be accompanied by an absolute warranty that the pawn shop owner was

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lawfully in possession of the item sold and as such the item could lawfully be resold. A purchaser

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finding otherwise shall be entitled to a full refund of the purchase price and interest at the rate of

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twelve percent (12%) per year from the date of sale.

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     (b) A pawn shop owner failing to provide a refund of the purchase price and interest upon

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demand and proof provided by the purchaser which references a law enforcement report shall be

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subject to a civil action for return of the purchase price, interest, and costs, including, but not

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limited to, reasonable attorney's fees, and a criminal action for sale of stolen property, the penalty

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for which shall be a fine of two thousand dollars ($2,000) and/or imprisonment for a period of

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one year, and their license shall become void.

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     SECTION 2. This act shall take effect upon passage.

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LC003259

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO FINANCIAL INSTITUTIONS - PAWNBROKERS LIABILITY FOR

SELLING STOLEN GOODS

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     This act would impose upon pawnbrokers the requirement to refund, with interest, to the

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buyer the purchase price of any item sold which is determined to be stolen property.

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     This act would take effect upon passage.

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LC003259

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