(a) Monitoring of transactions and customers.
  (1) Type of goods offered. An item on which the serial number has obviously been defaced, altered, or removed may not be taken into pawn. An item previously taken in pawn in which the serial number has been previously documented may be repawned if proper documentation exists and can be accurately traced to the same item if the serial number on the item is missing, worn, defaced, or blurred due to normal wear and tear.
  (2) Written policy. A written policy must be established for the acceptance of pledged goods. The policy must expressly identify situations which may involve the attempted pawn of stolen goods and must list procedures to be followed in order to avoid the acceptance of stolen goods. A copy of the policy must be provided to each employee. Each employee must sign a document acknowledging receipt and understanding of the policy. A copy of each signed receipt must be placed in the compliance file. Alternatively, a pawnshop may employ another systematic method of filing receipts that allows for the appropriate retrieval of records for inspection. A model policy may be found in the following figure.
Attached Graphic
  (3) Acceptance of uniquely marked goods. An item may not be accepted into pawn that is clearly marked in a manner that indicates ownership by a third party (e.g., rental company, motel, governmental body). An item marked in a manner that indicates ownership by a third party may, however, be accepted into pawn when the pledgor produces a valid receipt or other evidence of ownership of the item or the pawnbroker obtains independent verification. Independent verification may include records of phone calls to the third party with name, time, and verbal approval that are documented on the pawn ticket.
  (4) Responsibility. The pawnbroker must monitor goods in order to identify and prohibit transactions involving stolen goods and must make reasonable efforts to avoid accepting stolen goods.
  (5) Coordination with law enforcement. A pawnbroker must work with law enforcement agencies regarding matters relating to stolen goods and must aid in the prompt resolution of an official investigation by providing, if available:
    (A) information to appropriate law enforcement officers (e.g., additional description of pledged and purchased goods, a physical description of the pledgor or seller, copies of all documents surrounding the transaction);
    (B) physical inspection of the goods;
    (C) copy of any surveillance recording relating to the transaction;
    (D) access to pawnshop employees for information; and
    (E) cooperation with any court order.
(b) Documentation of goods not lawfully possessed by pledgor. Certain information must be maintained concerning pledged goods that a pledgor did not have the right to possess. The information may be recorded in the numerical pawn ticket file or in the automated records of the pawn transaction. Each record must be readily identifiable and available for examination. The record must include:
  (1) pawn ticket number;
  (2) specific goods concerned;
  (3) person to whom the goods were released; and
  (4) terms and conditions under which possession of the goods was relinquished (e.g., redeemed by owner, voluntarily returned without compensation, seized by law enforcement officers, awarded to another following a judicial hearing).

Source Note: The provisions of this §85.418 adopted to be effective October 1, 2000, 25 TexReg 9435; amended to be effective September 19, 2005, 30 TexReg 5337; amended to be effective June 7, 2010, 35 TexReg 3471; amended to be effective July 1, 2014, 39 TexReg 3392