Senate Bill No. 242

Senate Bill No. 242-Committee on Commerce and Labor

CHAPTER

539

AN ACT relating to businesses; authorizing a pawnbroker who receives a motor vehicle in pledge as security for a loan to store the motor vehicle; allowing property received in pledge by a pawnbroker to be removed from his place of business pursuant to a search warrant; increasing the interest rate a pawnbroker may charge and receive for money loaned on certain personal property; prohibiting a junk dealer or secondhand dealer from selling a motor vehicle to the person from whom the motor vehicle was bought; clarifying that a person who buys and sells antiques and collectibles is a secondhand dealer; revising the provisions relating to the period for the retention of certain types of property by secondhand dealers; providing a penalty; and providing other matters properly relating thereto.

[Approved July 16, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 646 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 646.010 and section 3 of this act have the meanings ascribed to them in those sections.
Sec. 3. "Motor vehicle" means any self-propelled vehicle that is used upon a highway, but not operated on rails, for the purpose of transporting persons or property.
Sec. 4. 1. A pawnbroker who receives a motor vehicle in pledge as security for a loan pursuant to NRS 646.050 may remove the motor vehicle from his place of business to a place used by the pawnbroker for the storage of motor vehicles received in pledge.
2. The pawnbroker:
(a) Shall hold the motor vehicle at the place of storage for the same period that personal property must be held at his place of business pursuant to this chapter; and
(b) May only remove the motor vehicle from the place of storage under the same conditions that personal property may be removed from his place of business pursuant to this chapter.
Sec. 5. NRS 646.010 is hereby amended to read as follows:
646.010 [Every] "Pawnbroker" means every person engaged, in whole or in part, in the business of loaning money on the security of pledges, deposits or other secured transactions in personal property . [, shall be deemed to be a pawnbroker.]
Sec. 6. NRS 646.040 is hereby amended to read as follows:
646.040No property received in pledge by a pawnbroker may be removed from his place of business [, except when redeemed by the owner thereof,] within 30 days after the receipt [thereof] of the property is reported to the sheriff or the chief of police as provided in this chapter [.] , unless the property is:
1. Redeemed by the owner thereof; or
2. Seized pursuant to a search warrant.
Sec. 7. NRS 646.050 is hereby amended to read as follows:
646.050 1. A pawnbroker may charge and receive interest at the rate of [8] 10 percent a month for money loaned on the security of personal property actually received in pledge, and a person shall not ask or receive a higher rate of interest or discount on any such loan, or on any actual or pretended sale or redemption of personal property. For any loan made , a pawnbroker may make an initial charge of $5 in addition to interest at the authorized rate.
2. All personal property must be held for redemption for at least 120 days after the date of pledge with any pawnbroker.
3. A pawnbroker shall give to the person securing the loan a printed receipt clearly showing the amount loaned and rate of interest, together with a description of the pledged property. The [reverse side of the] receipt must be marked in such a manner that the amounts of principal and interest paid by the person securing the loan can be clearly designated. Each payment must be entered upon the [reverse side of the] receipt , and each entry must designate how much of the payment is being credited to principal and how much to interest, with dates of payments shown thereon.
4. A pawnbroker shall not charge more than $3 per day for the storage of a motor vehicle which is collateral for a loan.
Sec. 8. NRS 646.060 is hereby amended to read as follows:
646.060A pawnbroker, and a clerk, agent or employee of a pawnbroker, is guilty of a misdemeanor if he:
1. Fails to make an entry of any material matter in his book or record kept as provided for in NRS 646.020.
2. Makes a false entry in his book or record.
3. Obliterates, destroys or removes from his place of business the book or record.
4. Refuses to allow the prosecuting attorney or a peace officer to inspect the book or record or any goods in his possession, during the ordinary hours of business.
5. Reports a material matter falsely to the sheriff or to the chief of police.
6. Fails to report immediately to the sheriff or to the chief of police the possession of property which he may have good cause to believe has been lost or stolen, together with the name of the owner, if known, and the date when and the name of the person from whom he received the property.
7. Removes property received or allows it to be removed from his place of business [, except upon redemption by the owner thereof, within 30 days after the receipt thereof is reported to the sheriff or to the chief of police.] in violation of NRS 646.040.
8. Receives property from a person under the age of 18 years, common drunkard, habitual user of controlled substances, habitual criminal, habitual felon, habitually fraudulent felon, person in an intoxicated condition, known thief or receiver of stolen property, or known associate of a thief or receiver of stolen property, whether the person is acting in his own behalf or as the agent of another.
9. Violates any of the provisions of NRS 646.050.
Sec. 9. Chapter 647 of NRS is hereby amended by adding thereto the provisions set forth as sections 10 to 17, inclusive, of this act.
Sec. 10. "Advertise" includes the use of any newspaper, magazine or other publication, letter, sign, card or other printed matter, radio or television transmission or any other method to bring to the attention of the public that a person is engaged in the business of:
1. Purchasing or selling hides or junk; or
2. Buying and selling metal junk, melted metals or secondhand personal property, including, without limitation, antiques or collectibles.
Sec. 11. "Antique" means a unique object of personal property that is not less than 60 years old and has special value primarily because of its age.
Sec. 12. "Collectible" means an object of personal property that has special value primarily because of its unique characteristics and the high level of demand for the object.
Sec. 13. "Junk" includes old iron, copper, brass, lead, zinc, tin, steel and other metals, metallic cables, wires, ropes, cordage, bottles, bagging, rags, rubber, paper, and all other secondhand, used or castoff articles or material of any kind.
Sec. 14. "Junk dealer" means every person, firm or corporation engaged in the business of purchasing or selling hides or junk.
Sec. 15. "Secondhand dealer" means any person engaged in whole or in part in the business of buying and selling metal junk, melted metals or secondhand personal property, including, without limitation, antiques and collectibles.
Sec. 16. A junk dealer or secondhand dealer who, after purchasing property from a customer, enters into an agreement to allow the customer to buy back the property:
1. Must be licensed as a pawnbroker by the county, city or town in which the transaction occurred if that county, city or town requires pawnbrokers to obtain a license; and
2. Shall comply with the provisions of chapter 646 of NRS.
Sec. 17. 1. A junk dealer or secondhand dealer may not, as part of his business as a junk dealer or secondhand dealer, buy a motor vehicle from a person and sell the motor vehicle to the same person.
2. As used in this section, "motor vehicle" means any self-propelled vehicle that is used upon a highway, but not operated on rails, for the purpose of transporting persons or property.
Sec. 18. NRS 647.010 is hereby amended to read as follows:
647.010As used in this chapter, unless the context otherwise requires [:
1. "Advertise" includes the use of any newspaper, magazine or other publication, letter, sign, card or other printed matter, radio or television transmission or any other method to bring to the attention of the public that a person is engaged in the business of:
(a) Purchasing or selling hides or junk; or
(b) Buying and selling secondhand personal property, metal junk or melted metals.
2. "Junk" includes old iron, copper, brass, lead, zinc, tin, steel and other metals, metallic cables, wires, ropes, cordage, bottles, bagging, rags, rubber, paper, and all other secondhand, used or castoff articles or material of any kind.
3. "Junk dealer" means every person, firm or corporation engaged in the business of purchasing or selling hides or junk.
4. "Secondhand dealer" means any person engaged in whole or in part in the business of buying and selling secondhand personal property, metal junk or melted metals.] , the words and terms defined in sections 10 to 15, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 19. NRS 647.130 is hereby amended to read as follows:
647.130[No]
1. Except as otherwise provided in subsection 2, no property which has a specific mark for identification or is otherwise individually identifiable and is bought by any secondhand dealer may be removed from his place of business at which the transaction occurred within:
[1.] (a) Thirty days after the receipt thereof is reported or a record of the receipt of the property is furnished or mailed to the sheriff or the chief of police, if the place of business is located in a county whose population is 400,000 or more; or
[2.] (b) Fifteen days after the receipt thereof is reported or a record of the receipt of the property is furnished or mailed to the sheriff or the chief of police, if the place of business is located in a county whose population is less than 400,000.
2. A secondhand dealer who purchases a motor vehicle may, during the period prescribed in subsection 1, remove the motor vehicle from the place of business at which the transaction occurred to a place used by the secondhand dealer for the storage of purchased motor vehicles. Once the motor vehicle is moved to the place of storage, the secondhand dealer shall not remove the motor vehicle from that place during the remainder of the period prescribed in subsection 1.
Sec. 20. NRS 647.140 is hereby amended to read as follows:
647.140A secondhand dealer and a clerk, agent or employee of a secondhand dealer is guilty of a misdemeanor if he:
1. Fails to make an entry of any material matter in his book or record kept as provided for in NRS 647.110.
2. Makes a false entry in his book or record.
3. Obliterates, destroys or removes from his place of business the book or record.
4. Refuses to allow the prosecuting attorney or a peace officer to inspect the book or record or any goods in his possession, during the ordinary hours of business.
5. Reports a material matter falsely to the sheriff or to the chief of police.
6. Fails to report immediately to the sheriff or to the chief of police the possession of property which he may have good cause to believe has been lost or stolen, together with the name of the owner, if known, and the date when and the name of the person from whom he received the property.
7. Removes specifically marked or otherwise individually identifiable property received or allows it to be removed from his place of business or place of storage in violation of the provisions of NRS 647.130.
8. Receives property from a person under the age of 18 years, common drunkard, habitual user of controlled substances, habitual criminal, habitual felon, habitually fraudulent felon, person in an intoxicated condition, known thief or receiver of stolen property, or known associate of a thief or receiver of stolen property, whether the person is acting in his own behalf or as the agent of another.
Sec. 21. The amendatory provisions of this act do not apply to offenses that are committed before October 1, 1997.
Sec. 22. The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
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