Cal. Financial Code - FIN § 21400. Section 21400.
This chapter shall be known, and may be cited, as the Pawnbroker Education Act.
CHAPTER 4. Pawnbroker Education Act [21400. - 21413.]
Cal. Financial Code - FIN 4.
in effectCal. Financial Code - FIN § 21401. Section 21401.
The Legislature finds and declares all of the following:
(a)
Pawnbroker businesses provide a valuable source of short-term credit for economically vulnerable consumers and the state’s unbanked population, as everyone who seeks a pawn loan can borrow money regardless of creditworthiness.
(b)
Individuals who use pawnbroker loans in this state use those loans for, among other things, paying for the necessities of life.
(c)
The Legislature recognizes that education for licensed pawnbrokers, as defined in this chapter, will ensure the highest standards of conduct and
compliance with state and federal laws applicable to pawnbroker businesses.
(d)
In order to continuously improve the competence of licensed pawnbrokers, the Legislature encourages all licensees to regularly engage in continuing education related to the profession, as defined in this chapter.
Cal. Financial Code - FIN § 21403. Section 21403.
(a)
The California Pawnbroker Education Council is hereby established to carry out the responsibilities and duties described in this chapter.
(b)
The council shall be governed by a board of directors composed of, but not limited to, members who shall be chosen in the following manner:
(1)
One member shall be a representative of the California Police Chiefs Association or California State Sheriffs’ Association, unless those entities choose not to appoint a member to the council.
(2)
One member shall be appointed by the Secondhand Dealer and
Pawnbroker Unit of the Department of Justice, unless the department chooses not to appoint a member to the council.
(3)
Four members shall be licensed pawnbrokers who are California residents selected by a professional society, association, or other entity, the membership of which is composed of licensed pawnbrokers. The professional society, association, or other entity shall have a dues-paying membership in California of at least 200 individuals, have been established in or before 2000, and have bylaws that require its members to comply with a code of ethics.
(4)
One member shall be a licensed attorney who is a California resident selected by a professional society, association, or other entity described in paragraph (3).
(c)
Each member of the board of directors shall serve a term of two years.
(d)
The council may take any reasonable actions necessary to carry out the responsibilities and duties set forth in this chapter, including, but not limited to, hiring staff, entering into contracts, and developing policies, procedures, rules, and bylaws to implement this chapter.
(e)
The council shall establish fees sufficient to support the functions of the council and to cover the reasonable
costs of administering this chapter.
Cal. Financial Code - FIN § 21405. Section 21405.
(a)
The council shall, on or before January 1, 2026, develop and establish a standard course and curriculum in pawnbroker transactions that shall include at least eight hours of prelicensing education to be taken by an applicant for licensure, and eight hours of continuing education to be taken by a licensee or their designated representative.
(b)
The curriculum established by the council shall meet minimum standards for education in the following areas:
(1)
Compliance with federal laws applicable to the pawnbroker business, including, but not limited to, bankruptcy, search and seizure, anti-money
laundering, and lending laws.
(2)
Compliance with state laws applicable to the pawnbroker business (Division 8 (commencing with Section 21000)) and the reporting requirements imposed upon secondhand dealers pursuant to Article 4 (commencing with Section 21625) of Chapter 9 of Division 8 of the Business and Professions Code.
(c)
The curriculum may include any other training that the council deems to be relevant to the efficient and lawful operation of a pawnbroker business.
Cal. Financial Code - FIN § 21407. Section 21407.
(a)
Individuals, entities, agencies, and associations that propose to offer educational courses that satisfy the prelicensing or continuing education requirements of this chapter shall apply for and obtain the approval of the council.
(b)
The council shall develop policies, procedures, rules, or bylaws governing the requirements described in this chapter and the process for applying to become, approving, denying the approval of, imposing correction action upon, or withdrawing the approval of, an educational course provider. These policies, procedures, rules, or bylaws shall address topics including, but not limited to, what constitutes an acceptable curriculum and facility
requirements.
Cal. Financial Code - FIN § 21409. Section 21409.
(a)
Beginning on January 1, 2026, the council shall issue a certificate to an applicant for a pawnbroker license, or a licensee applying for renewal of a pawnbroker license, who has satisfied the educational requirements of this chapter.
(b)
The council shall maintain records verifying completion of the initial prelicensing education and continuing education for a period of not less than two years.
Cal. Financial Code - FIN § 21411. Section 21411.
Nothing in this chapter authorizes the council to approve, deny, revoke, or suspend a license issued pursuant to Section 21300.
Cal. Financial Code - FIN § 21413. Section 21413.
This chapter shall remain in effect only until January 1, 2029, and as of that date is repealed.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026