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I'm e-mailing you in an effort to provide some background information on pawn shops in Minnesota. Since the 1970's, pawn shops have proliferated nationally while Minnesota is generally considered underserved by the pawn shop industry. Chain stores are promoting their images by adding more lighting to cleaner stores. The majority of pawn shops are located in heavily commercial areas or lower income neighborhoods, i.e. Robert Street, West 7�h, Lake Street, Chicago and 38`", University, and Hennepin Avenue. Pawn shops provide access to cash at high interest rates. The state regulates the interest rate at 3% but additional fees and storage costs are added on. To pawn a bracelet for $70 you can buy it back in one month for the original loan plus $15, after three months you would pay $70 plus an additional $45. While pawn shops provide this service they also provide a market for stolen goods, and fencing operations. Testifying before the Commerce and Protection Committee at the State Capitol on Feb. 19, 2008, Sgt. Mike Simmons (SPPD) who has been on pawn shop detail for 5 years, stated that it is tough for the department to prove an item has been stolen. In addition only approximately 10% of serial numbers are recorded by owners and some businesses do not recorded serial numbers on some merchandise. According to Detective Erika of the Roseville Police Department, Target, which would be directly across the street, does not record serial numbers on some of their I-pods. Gold necklaces, watches, and family heirlooms can be melted down and pawned . A fencing operation was reported in December of '07.In River Falls Wisconsina pawn shop owner was charged for receiving stolen property and four counts of felony charges. The complaint states his store bought stolen merchandise, mostly power tools, on multiple occasions. A roofing employee forged his boss's signature to make unauthorized purchases from a Minnesota Menards then sold the tools to two different pawn shops. Based on pending charges, the city is not renewing his license. An increase in meth use has resulted in a string of burglaries in some counties. In a Pioneer Press article Feb.6,2006 by John Brewer, St. Croix Sheriff Dennis Hillstead estimates meth users commit 80% of the burglaries in his county. People addicted to meth need between $150 and $250 for 1 and '/z grams which lasts a day or two.Some law enforcement have called pawn shops an ATM for drug addicts. The Automated Pawn System (APS) initiated by the Minneapolis Police Department and the Gov to Gov Consortium is a data base that allows law enforcement to electronically keep track of pawn shop transactions by having pawn shops enter each pawned item into a shared data based used by some but not all MinnesotaJWisconsin cities . Where the APS has assisted law enforcement with retrieving some stolen items it had not eliminated the market for stolen goods which pawn shops provide. The APS works only to the extent that pawn shop owners and employees are trained in the use of the data base, there is a serial number to record, and pawn shop owners and employees are honest in entering their transactions.Additionally legislation has been introduced in Nov. '07 that would let pawn shops keep their transactions data mostly out of "police hands" out of concern for their customers privacy. It would also drop the data base surcharge to a quarter. The City of Fridley has addressed pawn shop regulation in chapter 13 of its City Code (Re£ 970, 1060, 1077,1137, and 1240) thus: The City Council finds the use of services provided by pawn brokers provides an opportunity for the commission of crimes and their concealment because pawn brokers have the ability to receive and transfer stolen property by others quickly and easily. The city also iinds that consumer protection — 23 �