Local Pawnbroker Rules for Personal Property? Texas Attorney General Opinion.

Do municipalities have authority to set the amount of time a pawnshop holds personal property? No

Do municipalities have the authority to require pawnshops to electronically report personal property to law enforcement? No

Why?

• Texas Pawnshop Act preempts municipal regulation
• Section 371.005 specifically gives the Legislature exclusive authority over the operation of pawnshops
• The ordinance also expressly conflicts with administrative regulations authorized by the Pawnshop Act

Is there wiggle room for municipal regulation? yes

• municipalities can regulate things related to pawnshops that are not the operation of the pawnshop
• municipalities can reduce the amount of time pawnbrokers must retain purchased goods to less than 20 days

KP-0293 (2020)