Could Corpus Christi require pawnshops to keep more detailed customer records and delay redemption for 72 hours?
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This page answers the general question as of 1983. Ezel answers yours: what it means for your facts, under current Texas law, with citations.
Texas AG Opinion JM-85: Corpus Christi Pawnshop Records and Redemption
Plain-English summary
JM-85 reached different conclusions about two Corpus Christi pawnshop ordinances. Section 37-2, which required detailed customer-identification and transaction records, was permissible because it supplemented rather than contradicted the Texas Pawnshop Act.
"In our opinion, section 37-2 of the Corpus Christi Code of Ordinances is permissible."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf"It is our opinion that this section of the code does not conflict with but merely elaborates on the rather vague recordkeeping requirements provided in article 5069-51.09 of the Texas Pawnshop Act."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
The state pawn-ticket rule and the city recordkeeping rule addressed different documents. State law specified information on the ticket given to the customer, while the city ordinance specified information in the pawnbroker's own records.
"Although both sections require that a pledgor give certain information about himself to the pawnbroker, the code is concerned with the information that must appear in the pawnbroker's own records, while the act is concerned with the information that must appear on the pawn ticket."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf"Since the two sections regulate two different areas -- pawnbroker records and pawn tickets -- there is no direct conflict."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
Section 37-4 was unenforceable as applied to pawn transactions. Its 72-hour waiting period prevented a customer from redeeming pledged property even after paying the full amount due, contrary to the state act.
"In our opinion, section 37-4 of the Corpus Christi Code of Ordinances conflicts with article 5069-51.16(e) of the Texas Pawnshop Act, and the code provision is thereby unenforceable."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf"Section 37-4 of the code, insofar as it applies to pawnbrokers and pawn transactions, clearly conflicts with article 5069-51.16(e) of the act since the former disallows redemption by the pledgor for 72 hours even if the pledgor is willing to repay the full amount of his pawn loan."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
Currency note
This opinion was issued in 1983. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.
Common questions
Did the Texas Pawnshop Act prevent all local pawnshop regulation?
No. JM-85 relied on the act's stated purposes, including compliance with local ordinances and assistance to local governments exercising police power, to conclude that the legislature had not occupied the whole field.
"[E]nsure compliance with federal, state, and local laws, rules, regulations, and ordinances."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf"[A]ssist local governments in the exercise of their police power."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf"It is clear by subsections 4 and 5 of article 5069-51.01A that the legislature did not intend to preempt the field of pawnshop/pawnbroker regulation."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
Why could the city require a photographed identification number in its records?
The opinion treated customer identification as serving separate lawful purposes. State pawn-ticket identification helped ensure the right person received the goods, while the city's records could help police locate people who pawned stolen property and make stolen goods harder to dispose of.
"Identification may be required to ensure that the proper person receives the pawned goods upon redemption."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf"Further, identification may be required to assist law enforcement authorities in locating a person who has pawned stolen property or to hamper thieves in the disposition of stolen goods."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf"They are neither inconsistent nor conflicting, and the code provision is in harmony with and promotes the purposes of the act."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
What did Corpus Christi section 37-2 require pawnshops to record?
It required records of the item, loan or purchase amount, date, interest rate, customer contact information, and proof of identity. The records had to be retained for two years.
"It shall be the duty of every pawnbroker or secondhand dealer in the city . . . to keep a book . . . in which shall be legibly written in ink at the time of each loan or purchase an accurate account and description in the English language of all secondhand items pawned, pledged or purchased, the amount of money loaned thereon, or paid therefor, the date of pledging or purchasing of the same, the rate of interest to be paid on such loan, the name, residence address and telephone number of the person pawning, pledging or selling the items and an accurate description, including proof of identity, of the person pawning, pledging, or selling the items."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf"All such records shall be kept on file by the pawnbroker or secondhand dealer for a period of two (2) years."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
Why did the 72-hour rule conflict with state law?
The Texas Pawnshop Act prohibited a pawnbroker from failing to return pledged goods after the customer paid the full amount due. The local waiting period barred that immediate return.
"A pawnbroker shall not . . . [f]ail to return pledged goods to a pledgor upon payment of the full amount due the pawnbroker on the pawn transaction."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf"Section 37-4 of the code . . . clearly conflicts with article 5069-51.16(e) of the act since the former disallows redemption by the pledgor for 72 hours even if the pledgor is willing to repay the full amount of his pawn loan."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
What standard did JM-85 apply to a home-rule city's ordinance?
It said state legislation did not automatically exclude local regulation. A local rule could stand if it was ancillary to and consistent with the state enactment's scope and purpose.
"[T]he entry of the state into a field of legislation . . . does not automatically preempt that field from city regulation; local regulation, ancillary to and in harmony with the general scope and purpose of the state enactment, is acceptable."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
Background and statutory framework
Consumer Credit Commissioner Sam Kelley asked whether two Corpus Christi Code provisions conflicted with the Texas Pawnshop Act.
"You have requested our opinion as to whether the Corpus Christi Code of Ordinances [hereinafter 'the code'] is in conflict with or is inconsistent with the Texas Pawnshop Act, article 5069-51.01 et seq., V.T.C.S., [hereinafter 'the act']."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
Article 5069-51.10(b) governed information placed on the pawn ticket, including the customer's name and address plus either a description or an identification number.
"Article 5069-51.10(b) lists the information that a pledgor must give to the pawnbroker and which must appear on a pawn ticket."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf"The name and address of the pledgor and the pledgor's description or the distinctive number from pledgor's driver's license or military identification."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
Section 37-2 instead governed the pawnbroker's internal records. Section 37-4 prohibited redemption or removal of covered property for 72 hours after the close of business on the day the pawnbroker received it, subject to an inspection-and-release procedure.
"As does article 5069-51.10(b) of the act, section 37-2 of the code lists information that a pledgor must give to the pawnbroker; this information, however, is for the pawnbroker's own records and not for printing on the pawn ticket."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf"No personal property received by a pawnbroker or secondhand dealer on deposit or pledge or by purchase shall be permitted to be redeemed or removed . . . for a period of seventy-two (72) hours after the close of business on the date such item shall have been received."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
Corpus Christi's home-rule status meant its ordinances could not conflict with the Texas Constitution or general state statutes.
"Article XI, section 5, of the constitution permits a city to enact ordinances which are neither inconsistent with nor in conflict with the constitution or the general statutes of the state of Texas."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
Holding
"Section 37-2 of the Corpus Christi Code of Ordinances does not conflict with the Texas Pawnshop Act. Section 37-4 of the Corpus Christi Code of Ordinances does conflict with the Texas Pawnshop Act."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
Citations and references
Statutes and ordinances quoted or discussed by JM-85:
- "the Texas Pawnshop Act, article 5069-51.01 et seq., V.T.C.S." Official PDF
- "article 5069-51.10(b)" Official PDF
- "article 5069-51.16(e)" Official PDF
- "section 37-2 of the Corpus Christi Code of Ordinances" Official PDF
- "section 37-4 of the Corpus Christi Code of Ordinances" Official PDF
- "Article XI, section 5, of the constitution" Official PDF
- "Article 1165, V.T.C.S." Official PDF
- "article 5069-51.01A" Official PDF
- "article 5069-51.09" Official PDF
Cases cited by JM-85:
- "City of Beaumont v. Jones, 560 S.W.2d 710 (Tex. Civ. App. - Beaumont 1977, writ ref'd n.r.e.)" Official PDF
- "City of Brookside Village v. Comeau, 633 S.W.2d 790, 796 (Tex. 1982)" Official PDF
Source
- Landing page: https://www.texasattorneygeneral.gov/opinions/jim-mattox/jm-0085
- Original PDF: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1983/jm0085.pdf
Original opinion text
Best-effort transcription from a scanned PDF. Minor errors may remain. The linked PDF is authoritative.
The Attorney General of Texas
JIM MATTOX
Attorney General
November 2, 1983
Mr. Sam Kelley
Commissioner
Consumer Credit Commission
1011 San Jacinto Boulevard
Austin, Texas 78768
Opinion No. JM-85
Re: Are provisions of Corpus Christi city code regulating pawnshops inconsistent with section 10(b) of article 5069, V.T.C.S.
Dear Mr. Kelley:
You have requested our opinion as to whether the Corpus Christi Code of Ordinances [hereinafter "the code"] is in conflict with or is inconsistent with the Texas Pawnshop Act, article 5069-51.01 et seq., V.T.C.S., [hereinafter "the act"]. You inquire with respect to two provisions of the code as it regulates the pawnbroker business in Corpus Christi.
You first direct our attention to two provisions of the act. Article 5069-51.10(b) lists the information that a pledgor must give to the pawnbroker and which must appear on a pawn ticket:
The pawnbroker, at the time the pawn transaction is entered, shall deliver to the pledgor a memorandum or ticket on which shall be clearly set forth the following:
. . . .
(b) The name and address of the pledgor and the pledgor's description or the distinctive number from pledgor's driver's license or military identification . . . .
V.T.C.S. art. 5069, §51.10(b).
Article 5069-51.16(e) specifies when and how a pledgor may redeem property from a pawnbroker:
A pawnbroker shall not:
. . . .
(e) Fail to return pledged goods to a pledgor upon payment of the full amount due the pawnbroker on the pawn transaction. In the event such pledged goods are lost or damaged while in the possession of the pawnbroker it shall be the responsibility of the pawnbroker to replace the lost or damaged goods with like kind(s) of merchandise. All such replacements are subject to the approval or rejection of the Commissioner.
You then direct our attention to two provisions of the code. As does article 5069-51.10(b) of the act, section 37-2 of the code lists information that a pledgor must give to the pawnbroker; this information, however, is for the pawnbroker's own records and not for printing on the pawn ticket.
It shall be the duty of every pawnbroker or secondhand dealer in the city, whether such pawnbroker or secondhand dealer is a resident or itinerant business, to keep a book, in a form approved by the chief of police, in which shall be legibly written in ink at the time of each loan or purchase an accurate account and description in the English language of all secondhand items pawned, pledged or purchased, the amount of money loaned thereon, or paid therefor, the date of pledging or purchasing of the same, the rate of interest to be paid on such loan, the name, residence address and telephone number of the person pawning, pledging or selling the items and an accurate description, including proof of identity, of the person pawning, pledging, or selling the items. A numbered identification shall be required for proof of identity and such numbered identification shall have a photograph for verification except where the pawnbroker or secondhand dealer has personal knowledge of the identity of the person pawning, pledging or selling the items. No entry made in such book shall be erased, obliterated or defaced. All such records shall be kept on file by the pawnbroker or secondhand dealer for a period of two (2) years. (Ord. No. 16140, §1, 4-1-81).
As does article 5069-51.16(e) of the act, section 37-4 of the code deals with the pledgor's redemption of personal property from the pawnbroker.
No personal property received by a pawnbroker or secondhand dealer on deposit or pledge or by purchase shall be permitted to be redeemed or removed from the place of business of such pawnbroker or secondhand dealer or from the City of Corpus Christi for a period of seventy-two (72) hours after the close of business on the date such item shall have been received by such pawnbroker or secondhand dealer, nor shall any such property be altered in any way or have any identifying markings, names or numbers altered or obliterated during such time. Where any pawnbroker or secondhand dealer finds that such period will work a hardship or constitute an undue burden, he may so notify the chief of police or his designated representative in writing of his need to act and that the item or items are available for inspection. Upon inspection and release of the item or items by an officer of the police division or the lapse of twelve (12) hours from the receipt by the chief of police or his designated representative of the required notification, the seventy-two-hour waiting period shall be deemed to have been satisfied. (Ord. No. 16140, §1, 4-1-81; Ord. No. 17355, §1, 11-10-82).
Your inquiry concerns the relative authority of the code and the act with respect to the pawnbroker's business in the city of Corpus Christi. In answering your question, we note that a home rule city such as Corpus Christi derives its powers not from the legislature but from the Texas Constitution. Article XI, section 5, of the constitution permits a city to enact ordinances which are neither inconsistent with nor in conflict with the constitution or the general statutes of the state of Texas. Tex. Const. art. XI, §5. Article 1165, V.T.C.S., contains a similar limitation on a home rule city's powers; see also City of Beaumont v. Jones, 560 S.W.2d 710 (Tex. Civ. App. - Beaumont 1977, writ ref'd n.r.e.). However, we also note that
[T]he entry of the state into a field of legislation . . . does not automatically preempt that field from city regulation; local regulation, ancillary to and in harmony with the general scope and purpose of the state enactment, is acceptable.
City of Brookside Village v. Comeau, 633 S.W.2d 790, 796 (Tex. 1982).
Our scrutiny of the questioned code provisions should be made in light of the expressed purposes of the Texas Pawnshop Act as stated in article 5069-51.01A below:
The making of pawn loans and the acquisition and disposition of tangible personal property by and through pawnshops vitally affects the general economy of this state and the public interest and welfare of its citizens. To prevent frauds, unfair practices, discriminations, impositions, and abuses of the citizens of the state, it is the policy of this state and the purpose of the Texas Pawnshop Act to:
(1) exercise the state's police power to ensure a sound system of making pawn loans and acquiring and disposing of tangible personal property by and through pawnshops and to prevent unlawful property transactions, particularly in stolen property, through licensing and regulating pawnbrokers and certain persons employed by or in pawnshops;
(2) provide for licensing fees, investigation fees, and minimum capital requirements of licensees;
(3) ensure financial responsibility to the state and the public;
(4) ensure compliance with federal, state, and local laws, rules, regulations, and ordinances; and
(5) assist local governments in the exercise of their police power.
It is clear by subsections 4 and 5 of article 5069-51.01A that the legislature did not intend to preempt the field of pawnshop/pawnbroker regulation. Accordingly, following the ruling in City of Brookside Village, supra, if the questioned provisions of the Corpus Christi Code of Ordinances are ancillary to and in harmony with the general scope and stated purposes of the Texas Pawnshop Act, those provisions of the code are permissible.
In our opinion, section 37-2 of the Corpus Christi Code of Ordinances is permissible. Section 37-2 is strictly a recordkeeping requirement which applies to both pawnbrokers and secondhand dealers in the city of Corpus Christi. It is our opinion that this section of the code does not conflict with but merely elaborates on the rather vague recordkeeping requirements provided in article 5069-51.09 of the Texas Pawnshop Act. This section of the act requires only that
each licensee shall keep, consistent with accepted accounting practices, adequate books and records relating to the licensee's pawn transactions . . . .
V.T.C.S. art. 5069-51.09. Section 37-2 of the code goes further and specifies the particular information which must appear in the records of pawnbrokers and secondhand dealers in the city of Corpus Christi.
It is important to note that there is more than one purpose in requiring identification in a pawn transaction in keeping with the express purposes of the Pawnshop Act. Identification may be required to ensure that the proper person receives the pawned goods upon redemption -- "to ensure a sound system of making pawn loans and acquiring and disposing of tangible personal property." Further, identification may be required to assist law enforcement authorities in locating a person who has pawned stolen property or to hamper thieves in the disposition of stolen goods -- "to prevent unlawful property transaction, particularly in stolen property." Article 5069-51.10(b) of the act effectuates the first purpose, and section 37-2 of the code the second. They are neither inconsistent nor conflicting, and the code provision is in harmony with and promotes the purposes of the act.
Your question to us specifically addresses the possibility of a conflict between section 37-2 of the code and article 5069-51.10(b) of the act. Although both sections require that a pledgor give certain information about himself to the pawnbroker, the code is concerned with the information that must appear in the pawnbroker's own records, while the act is concerned with the information that must appear on the pawn ticket. Since the two sections regulate two different areas -- pawnbroker records and pawn tickets -- there is no direct conflict; further, since the two sections require very similar information -- identity of the pledgor and various proofs of this identity -- there is no inconsistency.
In our opinion, section 37-4 of the Corpus Christi Code of Ordinances conflicts with article 5069-51.16(e) of the Texas Pawnshop Act, and the code provision is thereby unenforceable. Section 37-4 of the code states that
[N]o personal property received by a pawnbroker or secondhand dealer on deposit or pledge or by purchase shall be permitted to be redeemed or removed from the place of business of such pawnbroker or secondhand dealer or from the city of Corpus Christi for a period of seventy-two (72) hours after the close of business on the date such item shall have been received by such pawnbroker or secondhand dealer . . . .
Article 5069-51.16(e) of the act clearly prohibits the pawnbroker from failing "to return pledged goods to the pledgor upon payment of the full amount due the pawnbroker . . . ." Section 37-4 of the code, insofar as it applies to pawnbrokers and pawn transactions, clearly conflicts with article 5069-51.16(e) of the act since the former disallows redemption by the pledgor for 72 hours even if the pledgor is willing to repay the full amount of his pawn loan.
SUMMARY
Section 37-2 of the Corpus Christi Code of Ordinances does not conflict with the Texas Pawnshop Act. Section 37-4 of the Corpus Christi Code of Ordinances does conflict with the Texas Pawnshop Act.
Very truly yours,
JIM MATTOX
Attorney General of Texas
TOM GREEN
First Assistant Attorney General
DAVID R. RICHARDS
Executive Assistant Attorney General
Prepared by Rick Gilpin
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Rick Gilpin, Chairman
Jon Bible
David Brooks
Colin Carl
Susan Garrison
Jim Moellinger
Nancy Sutton
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