Judiciary Committee
JOINT FAVORABLE REPORT
Bill No.: HB-6564
AN ACT CONCERNING SECONDHAND DEALERS, PRECIOUS METALS OR
Title: STONES DEALERS AND PAWNBROKERS.
Vote Date: 4/9/2021
Vote Action: Joint Favorable
PH Date: 3/8/2021
File No.: 597
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
The Judiciary Committee
Rep. Anthony L. Nolan, 39th Dist.
Rep. Geraldo C. Reyes, 75th Dist.
Rep. Bobby G. Gibson, 15th Dist.
Rep. Kenneth M Gucker, 138th Dist.
Rep. Michael D Quinn, 82nd Dist.
Rep. Antonio Felipe, 130th Dist.
REASONS FOR BILL:
This bill updates some of the general statutes regarding secondhand dealers, precious
metals or stone dealers, and pawnbrokers. This bill removes the sunset date connected to
payment methods that these entities may use when paying for property received. This bill
would extend the hold period that dealers of precious metals and stones must retain certain
property before the sale or disposition of such property.
RESPONSE FROM ADMINISTRATION/AGENCY:
None Stated.
NATURE AND SOURCES OF SUPPORT:
Silas Deane Pawn, Vernon, Connecticut, Owner, Konstantinos Antonaras; supports this bill
stating that many customers of pawnshops are working-class and are also unbanked. It is
stated that customers have expressed potential difficulties in cashing a check at a banking
facility. It is also stated that there is a high level of ethics in the pawnbroker industry and
pawnbrokers are often cooperative with police regarding stolen merchandise.
Silas Deane Pawn, Plainville, Connecticut, Managing Partner, Laurabeth Corey; supports this
bill stating that there is a necessity of services that are currently being provided to the
community. It is also stated that customers greatly benefit from the ability to pay for rent, pay
for necessities, like groceries and gas. It is stated that cashing checks in-house is solely for
the benefit and safety of the underserved and that the sunset date is biased and prejudicial to
unbanked citizens.
Michael E. Fisher, Employee, Silas Deane Pawn (Bloomfield & Vernon): supports this bill
stating there are negative consequences for customers and the current process, which has
been in place for ten years, is efficient and contains strict record-keeping requirements. It is
also stated there will be negative consequences if this bill is not passed.
Silas Deane Pawn, Cromwell, Connecticut, Owner/Operator, Tim Granger: supports this bill
stating that pawnbrokers would like to continue operating as they have for the past ten years.
It is stated that many customers are unbanked, which means they need cash and do not
have bank accounts. It is stated that without this bill many customers would face hardship
and that the current regulations are fair for pawnbrokers, law enforcement, and customers.
Silas Deane Pawn, Vernon, Connecticut, Employee, Eric Jenkins; supports this bill stating the
importance of pawnbrokers in the community, especially for those who are unbanked. It is
noted that the busiest times of a week are when parents are closed. It is also stated that as a
business, pawnbrokers are not profiting from the ability to cash or draft checks under
$1,000.00 and provides relief for customers.
A Yankee Peddler & Pawn, New Britain, Connecticut, Owner, Jason King; supports this bill
stating that the ability to provide cash to customers has helped the community especially for
those who encounter obstacles with paying bills without having to go to a banking institution.
Silas Deane Pawn, Bristol, Connecticut, Managing Partner, Nicholas Kutsukos; supports this
bill stating that pawnbrokers are one of the most regulated businesses in Connecticut and by
not allowing customers to cash checks it will compel customers to use unregulated
secondhand marketplaces that will provide no paper trail.
CT Association of Pawnbrokers, Vice President, Chad LaPlante; supports this bill stating that
removing the sunset date will allow businesses to continue doing business without putting a
burden on already struggling customers. It is also stated that many customers are low-
income and do not have the means or enough money to open and hold a bank account.
Pawn King, Stratford, Connecticut, Owner, William Mingione; supports this bill stating that
many customers live paycheck to paycheck and many customers are unbanked, meaning
without bank accounts to deposit checks. It is urged to remove the sunset date from current
law.
Silas Deane Pawn, Wallingford, Connecticut, Owner, Steve Martinelli; supports this bill
stating that there would be a significant negative impact on customers because many
customers are unbanked. It is stated that many customers would be forced to use check-
cashing services which would be a burden for many. It is stated that the current regulations
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are fair for all concerned parties and urged elimination of the sunset date and grandfather
clause.
Meriden Pawn, Owner, Michael Martorelli; supports this bill stating that it makes it more
challenging for unbanked people and noted that banking institutions have high fees when
cashing checks. It is also stated that the hold period for precious metals should be extended.
AZ Pawn LLC, Owner, Philip Pavone; supports this bill stating that the sunset provision will
negatively impact customers creating various hurdles if customers were forced to utilize a
banking institution to cash checks. It is stated that those who would be most negatively
impacted would be lower-income people and families.
Connecticut Association of Pawnbrokers, President, Jay Sargent, President; supports this bill
stating that allowing the sunset date to remain would hurt customers. It is noted that
customers who use pawnshops are typically lower-income and unbanked. It is stated that
while there is understanding regarding the initial sunset date, the sunset date should be
extended. It also stated that the industry has significantly evolved since the law was passed
in 2011 and the relationships with law enforcement illustrate that the sunset date is no longer
needed.
Coliseum Pawn, Naugatuck, Connecticut, Owner, Glenn Spector, Owner/Operator; supports
this bill stating that many customers are unbanked which means customers do not have
credit/debit cards or access to bank services.
NATURE AND SOURCES OF OPPOSITION:
Connecticut Police Chiefs Association; opposes this bill stating that stating that the
Association advocated for removing cash payments to create additional oversight to prevent
the sale of stolen items in 2011. It is stated that while an overwhelming majority of
pawnshops operate in legal sales, the can be the source of stolen goods without knowing. It
is stated that the language would hinder the ability to track down individuals who sell stolen
merchandise.
Connecticut Merchants Association, President, Tim Phelan; opposes this bill stating the
legislative history that led to the inclusion of the sunset and grandfather clause language. It is
stated that those measures are critically important and allowing pawnbrokers to give cash
items is not good public policy. It is stated that this change would weaken the record-keeping
system in place and eliminate a critical tool needed by law enforcement to track down stolen
goods. It is stressed that the system in place now is essential to protect themselves and their
customers from retail crime.
Reported by: Peter B. Andrews Date: 4/13/2021
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