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HomeMy WebLinkAboutOrdinance 603 - Regulation of Pawnbrokers CHAPTER VI – GENERAL REGULATIONS ORDINANCE 603 REGULATION OF PAWNBROKERS ............................................... 603-1 Section 603.01: DEFINITIONS .................................................................................. 603-1 Section 603.02: LICENSE REQUIREMENTS ........................................................... 603-1 Section 603.03: LICENSE FEES ................................................................................ 603-1 Section 603.04: LICENSE EXPIRATION DATE ....................................................... 603-2 Section 603.05: BONDING REQUIREMENT ........................................................... 603-2 Section 603.06: RECORD RETENTION.................................................................... 603-2 Section 603.07: PAWN TICKET ................................................................................ 603-3 Section 603.08: REDEMPTION ................................................................................. 603-3 Section 603.09: HOLDING PERIOD BEFORE SALE OF PROPERTY..................... 603-3 Section 603.10: HOURS OF OPERATION ................................................................ 603-3 Section 603.11: FALSE STATEMENTS AND IDENTIFICATION ........................... 603-4 Section 603.12: SEIZURE OF STOLEN PROPERTY ................................................ 603-4 Section 603.13: SUSPENSION AND REVOCATION OF LICENSE......................... 603-4 Section 603.14: PENALTIES ..................................................................................... 603-5 603-0 CHAPTER VI – GENERAL REGULATIONS ORDINANCE 603 REGULATION OF PAWNBROKERS Section 603.01: DEFINITIONS. For the purposes of this ordinance, the following words and phrases shall have these designated meanings: Subd. 1: Pawnbroker. A person engaged in whole or in part in the business of lending money on the security of pledged goods left in pawn, or in the business of purchasing tangible personal property to be left in pawn on the condition that it may be redeemed or repurchased by the seller for a fixed price within a fixed period of time. Subd. 2: Person. Any individual, partnership, corporation, limited liability company, joint venture, trust, association, or other legal entity, however organized. Section 603.02: LICENSE REQUIREMENTS. Subd. 1: No person shall engage in the business of a pawnbroker or advertise such services without first obtaining a license pursuant to this ordinance. Subd. 2: To be eligible for a pawnbroker's license, the person must operate lawfully under Minn. Stat. § 325J and this ordinance and: a) May not be a minor at the time the application for the license is filed. b) May not have been convicted of any crime related to the operation of a pawnshop unless the person has shown evidence of rehabilitation as prescribed by Minn. Stat. § 364.03, subd. 3; and c) Must be of good moral character or repute. Subd. 3: A separate license is required for each place of business. Subd. 4: Any change in the ownership of a licensed pawnshop shall require the application for a new license and the new owner must satisfy all current eligibility requirements. Section 603.03: LICENSE FEES. The application for a pawnbroker license must be submitted to the City Administrator/Clerk along with a license fee as established and modified by City Council resolution. If the license period is for less than one year, the fee to be paid by the applicant shall be a pro rata portion of the amount required for the entire year; provided that the minimum fee shall be not less than Twenty-Five Dollars ($25.00). 603-1 CHAPTER VI – GENERAL REGULATIONS Section 603.04: LICENSE EXPIRATION DATE. A license issued under this ordinance shall expire on the 1st day of June of each year. Section 603.05: BONDING REQUIREMENT. Every application for a pawnbroker license shall be accompanied by a bond in the sum of Ten Thousand Dollars ($10,000), executed by a corporation authorized to do business in Minnesota, and conditioned on the pawnbroker observing the provisions of this ordinance and other applicable State laws. Such bond shall be for the benefit of the City or any person who suffers damages through an act of the pawnbroker. Section 603.06: RECORD RETENTION. Subd. 1: A pawnbroker licensed under this ordinance shall keep a record of each transaction made in the course of the business. These records shall be legibly made in English by using ink or other indelible medium on forms prescribed by the Chief of Police. The records so kept shall include the following information about each transaction: a) Name, address, phone number, and date of birth of the person pledging or selling the item; b) Description of the person pledging or selling the item, including approximate height, sex, and race; c) The identification number from one of the following forms of identification of the person pledging or selling the item: current valid Minnesota driver's license; current valid Minnesota identification card; current valid photo identification card issued by another state or a province in Canada; d) The date and time of the transaction; e) A complete description of the item pledged or sold, including all identifying model or serial numbers and identifying marks; f) The amount of money advanced or paid for the item; g) The maturity date of the pawn transaction and the amount due; h) The monthly and annual interest rates, including all pawn fees and charges; i) The signature of the person pledging or selling the item; and j) Other information as the Chief of Police shall from time to time require. Subd. 2: The records required herein shall be kept at the pawnbroker's place of business and made available for inspection by an officer of the St. Joseph Police Department or a deputy of Stearns County during any hours of operation, or other times acceptable to both parties. 603-2 CHAPTER VI – GENERAL REGULATIONS Subd. 3: A copy of all pawn tickets issued during hours of operation will be provided to the St. Joseph Police Department at the end of the business day. Subd. 4: Required records shall be retained by the licensed pawnbroker, successors and assigns, for a period of three years from the date of the transaction. Section 603.07: PAWN TICKET. The following shall be printed on all pawn tickets: Subd. 1: The statement that "Any personal property pledged to a pawnbroker within this state is subject to sale or disposal when there has been no payment made on the account for a period of not less than 60 days past the date of the pawn transaction, renewal, or extension: no further notice is necessary. There is no obligation for the pledgor to redeem pledged goods."; Subd. 2: The statement that "The pledgor of this item attests that it is not stolen, it has no liens or encumbrances against it, and the pledgor has the right to sell or pawn the item."; Subd. 3: The statement that "This item is redeemable only by the pledgor to whom the receipt was issued, or any person identified in a written and notarized authorization to redeem the property identified in the receipt, or a person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor. Written authorization for release of property to persons other than the original pledgor must be maintained along with the original transaction record."; and Subd. 4: A blank line for the person pledging or selling the item. Section 603.08: REDEMPTION. Any person pledging or pawning personal property with a pawnbroker shall have 60 days to redeem the property before the pledge or pawn is forfeited, and qualified right, title, and interest in and to the property shall automatically vest in the pawnbroker. Section 603.09: HOLDING PERIOD BEFORE SALE OF PROPERTY. No personal property deposited with or purchased by any licensed pawnbroker under this ordinance shall be sold or permitted to be redeemed from the pawnbroker until 48 hours after the copy of the pawn ticket is provided the St. Joseph Police Department, except upon written permission of the Chief of Police. Whenever an officer of the St. Joseph Police Department notifies a licensed pawnbroker not to sell or permit to be redeemed any property so purchased, received or deposited, such property shall not be sold or permitted to be redeemed except with the written consent of the Chief of Police. Section 603.10: HOURS OF OPERATION. No pawnbroker shall receive a pledge or pawn, or purchase any goods between the hours of 6:00 o'clock p.m. on Saturdays and 6:00 o'clock a.m. on the following Monday or between the hours of 9:00 o'clock p.m. and 6:00 o'clock a.m. on any other day of the week. 603-3 CHAPTER VI – GENERAL REGULATIONS Section 603.11: FALSE STATEMENTS AND IDENTIFICATION. Subd. 1: No person shall misrepresent their identity to any pawnbroker nor shall any person furnish identification not belonging to and identifying themself. Subd. 2: The pawnbroker's employee transacting the pawn, pledge or sale shall compare all pictures, physical descriptions and signatures on the identification presented with the physical features and signature of the person pledging or selling the item and shall not transact any business with any person who appears to be presenting false identification. Section 603.12: SEIZURE OF STOLEN PROPERTY. Any law enforcement officer having jurisdiction within the City of St. Joseph may seize and hold any property in the possession of a licensee upon verification that the property was stolen. The officer may continue to hold seized property as evidence during an investigation or prosecution without compensation to the licensee. Upon final completion of any criminal proceeding arising out of the theft, the seized property shall be delivered in accordance with the direction of the court. Section 603.13: SUSPENSION AND REVOCATION OF LICENSE. Subd. 1: Any license issued pursuant to this ordinance may be suspended for up to sixty (60) days or revoked for good cause. Revocation or suspension shall occur by action of the City Council upon recommendation of the Chief of Police, or upon the Council's own initiative. If the City Council intends to revoke or suspend the license, they shall provide written notice of such intention to the pawnbroker at least twenty (20) days before such suspension or revocation is to begin, stating the reason for the action and the length and period of suspension or revocation. A hearing before the City Council may be demanded in writing to the City Administrator/Clerk, and must be made within ten (10) days after the notice of revocation or suspension is received. For purposes of this section, "good cause" shall include, but not be limited to: a) Those acts expressly prohibited under Minn. Stat. § 325J.08 b) Conviction of the pawnbroker or their employee of a crime relating to the operation of a pawnshop. c) Violation by the pawnbroker or their employee of the provisions of this ordinance or any other ordinance or statute relating to the operation of a pawnshop. d) Failure to report any item pawned, pledged or purchased by the pawnbroker or their employee. e) Failure to submit to the police all required records. f) Failure to tell the truth to a police officer about any material fact about which such officer inquires in the course of an investigation. g) Falsely stating any material fact on the license application. 603-4 CHAPTER VI – GENERAL REGULATIONS h) Submitting a false or incomplete record to the police. i) Failure to maintain a proper bond as required by this ordinance. Subd. 2: Appeal hearing before the City Council regarding the suspension or revocation of license shall be conducted pursuant to Minn. Stat. § 14.57 through 14.70. The issues considered at this hearing may include the question of good cause and/or the penalty imposed. Section 603.14: PENALTIES. A violation of this ordinance is a misdemeanor. Updated 2/24/98 603-5