| (a) Applicability. In this section:
(1) the requirements imposed on a pawnbroker apply
to all pawnbrokers; and
(2) the requirements imposed on a pawnshop employee
apply only to employees of pawnbrokers that participate in the pawnshop
employee license program.
(b) Generally. For the reasons in subsection (c) of
this section, the OCCC may take one or more of the following enforcement
actions under Texas Finance Code, Chapters 14 and 371:
(1) an injunction;
(2) an administrative penalty;
(3) a suspension; or
(4) a revocation.
(c) Basis for enforcement actions.
(1) Eligibility. A pawnbroker or pawnshop employee
who fails to maintain eligibility under the Texas Pawnshop Act and
the administrative rules promulgated by the OCCC is subject to an
injunction, an administrative penalty, suspension or revocation.
(2) Character and fitness. A pawnbroker or a pawnshop
employee must report within 30 calendar days to the OCCC knowledge
of any arrest, charge, indictment, or conviction of any of the following
filed with the OCCC:
(A) a principal party named on a pawnshop application;
(B) a principal party named on a pawnshop license;
(C) an individual named on a pawnshop employee application;
or
(D) an individual named on a pawnshop employee license.
(3) Traffic violations. Traffic violations and any
action previously reported to the OCCC are not required to be reported.
(4) ATF investigations and actions. Any known investigation
of potential violations by the pawnbroker of federal laws or rules
relating to firearms must be reported to the OCCC, but this does not
include compliance inspections by the United States Bureau of Alcohol,
Tobacco, Firearms and Explosives (ATF). A notice of revocation, suspension,
or imposition of civil fine issued by ATF against the federal firearms
license must also be reported. Reports must include notices issued
on ATF Form 4500 and ATF Form 5300.13 as provided by 27 C.F.R. §478.73
and §478.74, and must be made within three business days of receipt
of the notice.
(5) Failure to comply with the law. A pawnbroker or
pawnshop employee who fails to comply with this subchapter or the
provisions of Texas Finance Code, Chapter 14 or Chapter 371, is subject
to an injunction, suspension, revocation, or an administrative penalty.
(6) Accepting stolen property. A pawnbroker or pawnshop
employee who knowingly or without exercise of due care accepts stolen
property or accepts property which has been represented to be stolen
without reporting it to law enforcement may be subject to an injunction,
suspension, revocation, or an administrative penalty. A pawnbroker
or pawnshop employee who has personal knowledge of a pawnbroker or
a pawnshop employee accepting stolen property without reporting it
to law enforcement is subject to an injunction, suspension, revocation,
or an administrative penalty.
(7) Failure to comply with OCCC order. A pawnbroker
or pawnshop employee who fails to comply with an OCCC order is subject
to an injunction, suspension, revocation, or an administrative penalty.
(8) Responsibility for compliance. Any licensed pawnbroker
or pawnshop employee who knowingly or without exercise of due care
violates the purposes of Texas Finance Code, Chapter 371, or this
subchapter is subject to an injunction, suspension, revocation, or
an administrative penalty.
(9) Responsibility for acts of others. Any person who
holds a pawnshop license will be responsible for the acts of its officers,
directors, employees, and agents in the conduct of the pawnshop business.
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| Source Note: The provisions of this §85.604 adopted to be effective October 1, 2000, 25 TexReg 9213; amended to be effective June 7, 2010, 35 TexReg 3471; amended to be effective July 1, 2014, 39 TexReg 3392; amended to be effective February 1, 2019, 43 TexReg 8584; amended to be effective October 1, 2019, 44 TexReg 4719 |
