Senate Bill Report — HB 1269, Pawnbroker Fees and Interest Rates (Washington, February 13, 2026)
Summary
This is the Senate Bill Report on HB 1269, Washington, as of February 13, 2026, for the Senate Committee on Business, Trade & Economic Development. The bill concerns pawnbroker fees and interest rates; the report lists Representatives Hackney, McClintock and Leavitt as sponsors and states the bill passed the House on 1/29/26, 83-14. The brief summary says the bill increases certain interest rates and fees pawnbrokers may charge, decreases the term of pawnbroker loans from 90 days to 60 days, and expands payment options for rewritten loans. The majority report is Do pass and the minority report is Do not pass; the report states that no fiscal note was requested.
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“Senate Bill Report — HB 1269, Pawnbroker Fees and Interest Rates (Washington, February 13, 2026).”
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SENATE BILL REPORT
HB 1269
As of February 13, 2026
Title: An act relating to pawnbroker fees and interest rates.
Brief Description: Concerning pawnbroker fees and interest rates.
Sponsors: Representatives Hackney, McClintock and Leavitt.
Brief History: Passed House: 1/29/26, 83-14.
Committee Activity: Business, Trade & Economic Development: 3/13/25, 3/26/25 [DP,
DNP]; 2/18/26.
Brief Summary of Bill
• Increases certain interest rates and fees that pawnbrokers are authorized
to charge and receive interest on.
• Decreases the duration of the term of pawnbroker loans from 90 days to
60 days.
• Expands the payment options for persons unable to repay a loan prior to
the expiration of the loan when the person is able to mutually agree upon
rewritten loans with a pawnbroker.
SENATE COMMITTEE ON BUSINESS, TRADE & ECONOMIC DEVELOPMENT
Majority Report: Do pass.
Signed by Senators Kauffman, Chair; Cortes, Vice Chair; Dozier, Ranking Member;
Fortunato, Lovick, McCune and Wilson, J..
Minority Report: Do not pass.
Signed by Senators Hasegawa and Stanford.
Staff: William Bridges (786-7312)
This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.
Senate Bill Report -1- HB 1269
Background: A pawnbroker is defined as every person engaged, in whole or in part, in the
business of loaning money on the security of pledges, deposits, or conditional sales of
personal property, or the purchase and sale of personal property. Washington regulates
pawnbrokers under state and local laws.
The statutory term of a pawnbroker loan is 90 days. Loan transactions must be in writing,
and a copy must be furnished to the pledger of the property. Interest may be charged every
30 days, and a preparation fee may be charged once for the term of the loan. If the pledged
property is not redeemed within the 90-day term, the pawnbroker has all ownership rights of
the property. The pawnbroker is not required to account to the pledger for any proceeds
received from the disposition of the property. If a person is unable to redeem and repay the
loan before the expiration and that person wishes to retain their rights to their collateral, the
person and the pawnbroker may mutually agree on a new loan, and the person may pay in
person or through the mail.
For each 30-day period a pawnbroker may charge:
• an interest rate of $4 for loans of $100 or more;
• a storage fee of $5; and
• an additional fee of $5 for storing a firearm.
The table below illustrates the fees for the preparation of loan documents that a pawnbroker
is allowed to charge:
Maximum Charge Allowed
Loan Amount
for Loan Preparation Fees
Up to $4.99 $1.50
$5-$9.99 $3.00
$10-$14.99 $4.00
$15-$19.99 $4.50
$20-$24.99 $5.00
$25-$29.99 $5.50
$30-$34.99 $6.00
$35-$39.99 $6.50
$40-$44.99 $7.00
$45-$49.99 $7.50
15 percent of the loan
$50-$99.99
amount
13 percent of the loan
$100-$249.99
amount
Senate Bill Report -2- HB 1269
Maximum Charge Allowed
Loan Amount
for Loan Preparation Fees
10 percent of the loan
$250-$499.99
amount
8 percent of the loan
$500-$999.99
amount
7.5 percent of the loan
$1000-$1499.99
amount
7 percent of the loan
$1500-$1999.99
amount
6 percent of the loan
$2000 or more
amount
Summary of Bill: Increases the Interest Rates and Fees Pawnbrokers are Authorized to
Charge. For each 30-day period of the loan:
• the interest rate for a loan of $100 or more is increased from 4 percent to 5 percent;
• the storage fee is increased from $5 to $10; and
• the additional fee for storing a firearm is increased from $5 to $10.
The document preparation fee for any loan greater than $50 or more is 15 percent. The
provisions that lowered the maximum percentage pawnbrokers could charge below 15
percent for loans larger than $100 are eliminated. The table below illustrates the fees for
the preparation of loan documents that a pawnbroker would be able to charge under the
provisions of the bill:
Maximum Charge
Loan Amount Allowed for Loan
Preparation Fees
Up to $4.99 $1.50
$5-$9.99 $3.00
$10-$14.99 $4.00
$15-$19.99 $4.50
Senate Bill Report -3- HB 1269
Maximum Charge
Loan Amount Allowed for Loan
Preparation Fees
$20-$24.99 $5.00
$25-$29.99 $5.50
$30-$34.99 $6.00
$35-$39.99 $6.50
$40-$44.99 $7.00
$45-$49.99 $7.50
15 percent of the loan
$50 or more
amount
Decreases the Loan Term. The term of a pawnbroker loan is decreased from 90 days to 60
days.
Expands Payment Options. For persons that are unable to redeem and repay a loan before
the expiration of the loan and have entered into a mutually agreed upon new loan, the
person may pay the pawnbroker through an online payment service.
Appropriation: None.
Fiscal Note: Not requested.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony (Regular Session 2025): PRO: Pawnshops provide
a vital financial service to our communities. Rates have remained stagnant and puts
tremendous pressure on our businesses. These loans provide a lifeline to people with
critical expenses that they would otherwise be unable to pay for.
The Pawnbroker model is unique. Nonrecourse simple interest loans. No credit checks.
They do not perpetuate a cycle of debt. A moderate increase in rates and a modernization of
statutes would be greatly appreciated. Pawn shops work closely with police to monitor
inventory for stolen merchandise. The FDIC did a study showing that less than 40
percent of people have money for emergencies. In order to keep our doors open, we need
have the ability to raise their rates. Prices have gone up. It has been ten years since
Senate Bill Report -4- HB 1269
pawnbrokers have had their last raise.
There are millions of unbanked people. Lots of time people need a quick loan. There are
no repercussions if a person comes back and pays off their loan. The typical loan is for
$180. The rates are pretty low and it is pretty difficult to get a loan from anyone else at
these dollar amounts. It is becoming difficult to employ people due to cost pressures. This
bill will allow certain pawnbrokers to stay open. Pawnshops are community establishments
where most customers live within one mile of where they are located. There are so many
people who need nonrecourse loans, and pawnbrokers help people who would otherwise be
unbanked.
Persons Testifying: PRO: Karen Strickland, Pawn 1 Inc.; Sam Lax, Pawn 1, Inc; Nika
Mihailov, Kittitas County Trading Co.; Janelle Morehart, Washington State Pawnbrokers
Association / Ponders Pawnbrokers; Tamara Rancore, WA St Pawnbrokers Association;
Carli Karlson, Wa St. Pawnbrokers Association Secretary; Michael Transue, Cash America.
Persons Signed In To Testify But Not Testifying: No one.
Senate Bill Report -5- HB 1269
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