S5397.1 by Senator Stanford — HB 1269 - S COMM AMD, Business, Trade & Economic Development

Summary

This is 1269 AMS BTE S5397.1, by Senator Stanford, to HB 1269, offered by the Committee on Business, Trade & Economic Development. It strikes everything after the enacting clause and inserts new text. Section 1 amends RCW 19.60.060, which authorizes pawnbrokers to charge and receive interest and other fees for money on the security of personal property actually received in pledge. A later subsection refers to verifying that a pawn loan complies with statutory limits governing interest, fees, loan terms, and renewals, and to preventing the origination of a pawn loan that does not comply with the chapter.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

     1269 AMS BTE S5397.1

                                                                By Senator Stanford
                                                                [A]
     HB 1269 - S COMM AMD
         By Committee on Business, Trade & Economic Development




1        Strike   everything   after   the       enacting   clause   and   insert   the
2    following:

 3       "Sec. 1.   RCW 19.60.060 and 2015 c 294 s 1 are each amended to
 4   read as follows:
 5       All pawnbrokers are authorized to charge and receive interest and
 6   other fees at the following rates for money on the security of
 7   personal property actually received in pledge:
 8       (1) The interest for the loan period shall not exceed((:
 9       (a) For an amount loaned up to $9.99 - interest at $1.00 for each
10   thirty-day period to include the loan date.
11       (b) For an amount loaned from $10.00 to $19.99 - interest at the
12   rate of $1.25 for each thirty-day period to include the loan date.
13       (c) For an amount loaned from $20.00 to $24.99 - interest at the
14   rate of $1.50 for each thirty-day period to include the loan date.
15       (d) For an amount loaned from $25.00 to $34.99 - interest at the
16   rate of $1.75 for each thirty-day period to include the loan date.
17       (e) For an amount loaned from $35.00 to $39.99 - interest at the
18   rate of $2.00 for each thirty-day period to include the loan date.
19       (f) For an amount loaned from $40.00 to $49.99 - interest at the
20   rate of $2.25 for each thirty-day period to include the loan date.
21       (g) For the amount loaned from $50.00 to $59.99 - interest at the
22   rate of $2.50 for each thirty-day period to include the loan date.
23       (h) For the amount loaned from $60.00 to $69.99 - interest at the
24   rate of $2.75 for each thirty-day period to include the loan date.
25       (i) For the amount loaned from $70.00 to $79.99 - interest at the
26   rate of $3.00 for each thirty-day period to include the loan date.
27       (j) For the amount loaned from $80.00 to $89.99 - interest at the
28   rate of $3.25 for each thirty-day period to include the loan date.
29       (k) For the amount loaned from $90.00 to $99.99 - interest at the
30   rate of $3.50 for each thirty-day period to include the loan date.



     Code Rev/AF:eab                         1                             S-5397.1/26
 1       (l) For loan amounts of $100.00 or more - interest at the rate of
 2   four)) five percent for each ((thirty)) 30-day period to include the
 3   loan date.
 4       (2) The fee for the preparation of loan documents, pledges, or
 5   reports required under the laws of the United States of America, the
 6   state of Washington, or the counties, cities, towns, or other
 7   political subdivisions thereof, shall not exceed:
 8       (a) For the amount loaned up to $4.99 - the sum of $1.50.
 9       (b) For the amount loaned from $5.00 to $9.99 - the sum of $3.00.
10       (c) For the amount loaned from $10.00 to $14.99 - the sum of
11   $4.00.
12       (d) For the amount loaned from $15.00 to $19.99 - the sum of
13   $4.50.
14       (e) For the amount loaned from $20.00 to $24.99 - the sum of
15   $5.00.
16       (f) For the amount loaned from $25.00 to $29.99 - the sum of
17   $5.50.
18       (g) For the amount loaned from $30.00 to $34.99 - the sum of
19   $6.00.
20       (h) For the amount loaned from $35.00 to $39.99 - the sum of
21   $6.50.
22       (i) For the amount loaned from $40.00 to $44.99 - the sum of
23   $7.00.
24       (j) For the amount loaned from $45.00 to $49.99 - the sum of
25   $7.50.
26       (k) For the amount loaned from $50.00 to $99.99 - ((fifteen)) 15
27   percent of the loan amount.
28       (l) For the amount loaned from $100.00 to $249.99 - ((thirteen))
29   13 percent of the loan amount.
30       (m) For the amount loaned from $250.00 to $499.99 - ((ten)) 10
31   percent of the loan amount.
32       (n) For the amount loaned from $500.00 to $999.99 - eight percent
33   of the loan amount.
34       (o) For the amount loaned from $1000.00 to $1499.99 - seven and
35   one-half percent of the loan amount.
36       (p) For the amount loaned from $1500.00 to $1999.99 - seven
37   percent of the loan amount.
38       (q) For the amount loaned of $2000.00 or more - six percent of
39   the loan amount.
40       (3) For each ((thirty)) 30-day period, a pawnbroker may charge:
     Code Rev/AF:eab                   2                       S-5397.1/26
 1       (a) A storage fee of (($5.00)) $7.50; and
 2       (b) An additional fee of (($5.00)) $7.50 for storing a firearm.
 3       (4) Fees under subsection (2) of this section may be charged one
 4   time only for each loan period; no additional fees, other than
 5   interest allowed under subsection (1) of this section and storage
 6   fees allowed under subsection (3) of this section, shall be charged
 7   for making the loan.
 8       A copy of this section, set in ((twelve)) 12 point type or
 9   larger, shall be posted prominently in each premises subject to this
10   chapter.


11       Sec. 2.   RCW 19.60.061 and 2007 c 125 s 2 are each amended to
12   read as follows:
13       (1) The term of the loan shall be for a period of ((ninety)) 90
14   days to include the date of the loan.
15       (2) A pawnbroker shall not sell any property received in pledge,
16   until a minimum of ((ninety)) 90 days has expired. However, if a
17   pledged article is not redeemed within the ((ninety)) 90-day period
18   of the term of the loan, the pawnbroker shall have all rights, title,
19   and interest of that item of personal property. The pawnbroker shall
20   not be required to account to the pledgor for the proceeds received
21   from the disposition of that item. Any provision of law relating to
22   the foreclosures and the subsequent sale of forfeited pledged items,
23   shall not be applicable to any pledge as defined under this chapter,
24   the title to which is transferred in accordance with this section.
25       (3) Every loan transaction entered into by a pawnbroker shall be
26   evidenced by a written document, a copy of which shall be furnished
27   to the pledgor. The document shall set forth the term of the loan;
28   the final date on which the loan is due and payable; the loan
29   preparation fee; the storage fee; the firearm fee, if applicable; any
30   other fee allowed under law that is charged; the amount of interest
31   charged every ((thirty)) 30 days; the total amount due including the
32   principal amount, the preparation fee, and all interest charges due
33   if the loan is outstanding for the full ((ninety)) 90 days allowed by
34   the term; and the annual percentage rate, and shall inform the
35   pledgor of the pledgor's right to redeem the pledge at any time
36   within the term of the loan.
37       (4) If a person who has entered into a loan transaction with a
38   pawnbroker in this state is unable to redeem and repay the loan on or
39   before the expiration of the term of the loan, and that person wishes
     Code Rev/AF:eab                   3                       S-5397.1/26
1    to retain his or her rights to use that item by rewriting the loan,
2    and if both parties mutually agree, an existing loan transaction may
3    be rewritten into a new loan, ((either in person or by mail)) and
4    payment may be accepted in person, by mail, or through an online
5    payment service. All applicable provisions of this chapter shall be
6    followed in rewriting a loan, except that where an existing loan is
7    rewritten by mail RCW 19.60.020(1) (a) and (g) shall not apply.

 8       NEW SECTION.   Sec. 3.   A new section is added to chapter 19.60
 9   RCW to read as follows:
10       (1) The department of financial institutions shall establish and
11   maintain a statewide electronic database for the reporting and
12   monitoring of pawn interest rates, fees, loan terms, and loan
13   renewals to ensure compliance with this chapter.
14       (2)(a) Each licensed pawnbroker shall electronically report to
15   the database, in the form and manner prescribed by the department of
16   financial institutions by rule:
17       (i) Each pawn loan at the time the loan is originated;
18       (ii) Each renewal, extension, rewrite, or modification of a pawn
19   loan; and
20       (iii) Such additional information as the department of financial
21   institutions determines is necessary to administer and enforce this
22   chapter.
23       (b) A transaction must be reported no later than the close of
24   business on the date the transaction occurs, or within such shorter
25   time frame as established by rule.
26       (3) The database shall:
27       (a) Provide a real-time or near real-time mechanism to verify
28   that a pawn loan complies with the requirements of this chapter
29   including, but not limited to, statutory limits governing interest,
30   fees, loan terms, and renewals;
31       (b) Prevent the origination of a pawn loan that does not comply
32   with this chapter;
33       (c) Maintain records of reported transactions for use by the
34   department of financial institutions in examinations and enforcement;
35   and
36       (d) Provide reporting tools to assist the department of financial
37   institutions in monitoring compliance trends and market activity.



     Code Rev/AF:eab                   4                       S-5397.1/26
 1       (4) A pawnbroker may not originate, renew, or extend a pawn loan
 2   unless the transaction has been submitted to and accepted by the
 3   database in accordance with this section.
 4       (5)(a) The department of financial institutions may contract with
 5   a third-party vendor to develop, operate, and maintain the database.
 6       (b) The department of financial institutions may assess a per-
 7   transaction fee on licensed pawnbrokers for each transaction reported
 8   to the database.
 9       (c) The department of financial institutions may adopt rules
10   necessary to implement, administer, and enforce this section.
11       (6) Information submitted to the database under this section is
12   exempt from public disclosure under chapter 42.56 RCW or other
13   applicable law and may be used by the department of financial
14   institutions solely for regulatory and enforcement purposes.
15       (7) The department of financial institutions shall implement the
16   database required under this section no later than January 1, 2028.
17   The department of financial institutions may adopt interim rules to
18   facilitate implementation."


     HB 1269 - S COMM AMD
         By Committee on Business, Trade & Economic Development




19       On page 1, line 1 of the title, after "rates;" strike           the
20   remainder of the title and insert "amending RCW 19.60.060           and
21   19.60.061; and adding a new section to chapter 19.60 RCW."


         EFFECT: Creates a uniform 5 percent interest rate for each 30-day
     period of a loan. Restores the schedule for documentation fees for
     loan amounts from $100 to more than $2,000. Reduces the storage fees
     from $10 to $7.50. Restores the 90-day loan period. Requires the
     Department of Financial Institutions to establish and maintain a
     statewide electronic database for the reporting and monitoring of
     pawn interest rates, fees, loan terms, and loan renewals to ensure
     compliance with the provisions of the bill.



                                  --- END ---




     Code Rev/AF:eab                   5                          S-5397.1/26


File and source

File

2026-02-25_a34019_d298923_amd-a-1269-stanford-s-5397-1.pdf

Size

88,592 bytes

SHA-256

dfb12702c1e53cbd1a7d6ec0322f0369eb2b74bfbd59413058cb5b84ac684db2

Our copy

2026-02-25_a34019_d298923_amd-a-1269-stanford-s-5397-1.pdf

Original

No public link identified.