Pawnshop bill sent to House

March 27, 2008

As an economic recession forces some Kentuckians to scramble for cash, lawmakers are poised to help pawnbrokers sell the items hocked for 30-day loans.

The House Banking and Insurance Committee on Wednesday approved Senate Bill 195, which would cut the length of time pawnbrokers must hold items prior to selling them from 120 to 90 days, if loans are not repaid.

The bill's sponsor, Sen. Tom Buford, R-Nicholasville, did not attend the hearing, so lobbyist Russ Woodward, representing pawnbroker Cash America International Inc., stepped in to present the bill to the panel.

Pawnbrokers don't want to sell hocked items such as jewelry, electronics and musical instruments, industry advocates told lawmakers. In fact, eight of every 10 pawn customers repay their loans, which makes lending the chief business of such stores, not retail.

'We're the safety net for the citizens who live in our communities,' said Ramona Thompson of Louisville, president of the Kentucky Pawnbrokers Association. 'We're there to help them get started in the morning, get their prescriptions filled, get to their jobs, get gas money, whatever.'

However, when stores do sell merchandise, it's unreasonable to make them wait 120 days, particularly with electronic items that can become obsolete and less valuable in the interim, Thompson said.

The committee approved the bill with little comment and sent it to the full House, the final step in the legislative process.

Rep. Dennis Keene, D-Wilder, praised lobbyist Woodward for skillfully presenting his clients' bill, as did Rep. John Tilley, D-Hopkinsville.

'I like Russ,' Tilley declared to the committee as he voted 'Aye.'

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