HB 4115 amends Michigan’s pawnbroker licensing and regulation law to create a specific civil penalty for charging an interest rate on a pawn loan above the rate allowed by section 9 of the act. Under current law, violations of the pawnbroker act are generally treated as misdemeanors with criminal fines and possible jail time. This bill adds a separate enforcement path for interest-rate violations, making them subject to a civil fine of up to $5,000 instead of the general misdemeanor penalty.
The bill also authorizes enforcement of that civil penalty by the county prosecutor in the county where the violation occurred or by the attorney general. In addition, the bill updates the title of the act to reflect that civil penalties are now included among the remedies available under the pawnbroker law. The bill is tie-barred to HB 4116, meaning it does not take effect unless that related bill is also enacted.
Impact
HB 4115 would amend 1917 PA 273, codified at MCL 446.218, by carving out a new civil sanction for pawnbrokers who overcharge interest on loans. It changes the enforcement structure for that specific violation from the act’s general misdemeanor framework to a civil penalty regime, while leaving other violations subject to the existing criminal penalties. The bill expands the enforcement authority of local prosecutors and the attorney general and may increase regulatory compliance pressure on pawnbrokers, lenders operating under the pawnbroker statute, and related enforcement agencies.
Sentiment
The available voting history suggests the bill was generally supported. It was reported from committee without amendment on a 15-0 vote and later passed the House on third reading by an 83-21 vote, including an immediate-effect roll call. The lack of committee transcript material limits insight into detailed debate, but the strong committee vote and clear House majority indicate broad acceptance of the bill’s consumer-protection and enforcement approach.
Contention
The main point of potential contention is the shift from criminal penalties to a substantial civil fine for interest-rate violations, which may be viewed by supporters as a more targeted and enforceable deterrent and by opponents as an increased regulatory burden on pawnbrokers. Another possible issue is the size of the penalty—up to $5,000—which is significantly higher than the general misdemeanor fine range in the existing act. Because no committee transcript is available, specific arguments from supporters or opponents are not documented in the provided materials.