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HomeMy WebLinkAboutOrd. 104 - Pawnbrokers/Dealers CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA ORDINANCE 104 AN ORDINANCE REGULATING PAWNBROKERS, SECONDHAND GOODS DEALERS AND PRECIOUS METAL DEALERS WITHIN THE CITY OF ANDOVER. THE CITY COUNCIL OF THE CITY OF ANDOVER HEREBY ORDAINS: SECTION 1. PURPOSE. The City Council of the City of Andover finds that pawnbrokers, secondhand goods dealers and precious metal dealers potentially provide an opportunity for the concealment of crimes because such businesses have the ability to receive and transfer stolen property easily and quickly. The City Council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers, secondhand goods dealers and precious metal dealers. The purpose of this Ordinance is therefore to prevent pawnbroking, secondhand goods and precious metal businesses from being used as facilities for commission of crimes and to assure that such businesses comply with the basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the residents of the City. SECTION 2. DEFINITIONS. Item Containing Precious Metal. An item made in whole or in part of metal and containing more than one (1%) percent by weight of silver, gold or platinum. Minor. Any natural person under the age of 18 years. Pawnbroker. A pawnbroker is and means a person who loans money on deposit of or pledge for personal property or other valuable thing, or who deals in the purchasing of personal property or other valuable things on condition of selling the same back again at a stipulated price, or who loans money secured by chattel mortgage on personal property, taking possession of the property or any part thereof so mortgaged. Person. One or more natural persons~ a partnership, including a limited partnership~ a corporation, including a foreign, domestic or nonprofit corporation~ a trust~ a political subdivision of the state; or any other business organization. Precious Metal Dealer. Any person engaging in the business of buying second hand items containing precious metal, including but not limited to, jewelry, watches, eating utensils, candlesticks, and religious and decorative objects. Exemptions are specified ir: Section 3. Precious Metals. Silver, gold or platinum. Receive. To purchase, accept for sale on consignment or take in pawn any secondhand good. Page Two Secondhand Goods Dealer. Is and means a person whose regular business includes selling or receiving tangible personal property excluding motor vehicles, furniture, clothing and related accessories previously used, rented, owned or leased. Exemptions are specified in Section 3. SECTION 3. EXEMPTIONS A. pawnbrokers and secondhand goods dealers shall not apply to or include the following: 1. The sale of secondhand goods where all of the following are present: a. The sale is held on property occupied as a dwelling or owned, rented or leased by a charitable or political organization. b. That no sale exceeds a period of 72 consecutive hours. c. That no more than four (4) sales are held in any 12 month period. d. That none of the items offered for sale shall have been purchased for resale or received on consignment for the purpose of resale. 2. The sale of secondhand books or magazines, sport trading cards, sound or video recordings, or films. 3. The sale of goods at an auction held by a licensed auctioneer. 4. The business of buying or selling only those secondhand goods taken as a part or full payment for new goods and where such business is incidental to and not the primary business of a person. 5. A bulk sale of property from a merchant, manufacturer or wholesaler having an established place of business or of goods sold at open sale from bankrupt stock. 6. Goods sold at public or farmer's market. 7. Goods sold at an exhibition, providing the exhibition does not last longer than ten (10) days in any twelve (12) month period. 8. Sales by a person licensed as a motor vehicle dealer. 9. The sale of furniture, clothing and related accessories. Page Three 10. Sales made by the sheriff or other public officials in the discharge of their official duties. 11. Sales made by assignees or receivers appointed in the state to make sales for the benefit of creditors. B. Precious Metal Dealers shall not apply to persons conducting the following transactions: 1. Transactions at occasional "garage or "yard" sales, estate sales or farm auctions held at the decendent's residence, except that precious metal dealers must comply with the requirements of Minnesota Statutes, Sections 325F.734 to 325F.742, for these transactions. 2. Transactions regulated by Minnesota Statutes, Section 80A. 3. Transactions regulated by the Federal Commodity Futures Commission Act. 4. Transactions involving the purchase of precious metal grindings, filings, slag, sweeps, scraps, or dust from an industrial manufacturer, dental lab, dentist, or agent thereof. 5. Transactions involving the purchase of photographic film, such as lithographic and X-ray film, or silver residue or flake recovered in lithographic and X-ray film processing. 6. Transactions involving coins, bullion, or ingots. 7. Transactions in which the secondhand item containing precious metal is exchanged for a new item containing precious metal and the value of the new item exceeds the value of the secondhand item, except that a person who is a precious metal dealer by engaging in a transaction which is not exempted by this section must comply with the requirements on Minnesota Statutes, Sections 325F.734 to 325F.742. 8. Transactions between precious metal dealers if both dealers are licensed under Minnesota Statutes, Section 325F.733 or if the seller's business is located outside the state to a dealer licensed under Minnesota Statutes, Section 325F.733. 9. Transactions in which the buyer of the secondhand item containing precious metal is engaged primarily in the business of buying and selling antiques, and the items are resold in an unaltered condition except for repair, and the items are resold at retail, and the buyer paid less than $2,500 for secondhand items containing precious metals purchased within any period of twelve (12) consecutive months. Page Four SECTION 4. LICENSED REQUIRED. No person shall exercise, carry-on, or be engaged in the business of pawnbroker, secondhand goods dealer or precious metal dealer within the City unless such person is currently licensed under this Ordinance. A license under this Ordinance shall authorize the licensee to carryon business only at the permanent place of business designated in the license. No license may be transferred to a different location or different licensee. No more than three (3) licenses shall be issued by the City of Andover at any time and priority shall be given to qualified applicants for renewal of existing licenses. A separate license will be required for each business listed above. For instance, a pawnbroker may not conduct, operate or engage in the business of secondhand goods dealer without having obtained a secondhand goods dealer license in addition to a pawnbroker license. SECTION 5. LICENSE APPLICATION CONTENT. In addition to any information that may be required by the County pursuant to Minnesota Statutes, Section 471.924, every application for a license under this Ordinance shall be made on a form supplied by the issuing authority and shall contain the following information: a. Full name, place and date of birth, street residence address, and phone number of the applicant. b. The business address and the name and address of the owner of the premises and the legal description of the premises to be licensed. c. A statement as to whether, within the preceding five years, the applicant or spouse have been convicted of any crimes and, if so, the state and county of conviction, the date of conviction, and the specific crime so convicted. d. Whether the applicant is a natural person, corporation, or partnership. 1. If the applicant is a corporation, the state of the incorporation and the names and addresses of all officers and directors. The application shall be accompanied by the Articles of Incorporation and Secretary of state's Certificate of good standing. Section 5(c) shall also apply. 2. If the applicant is a partnership, the names and addresses of all partners shall be included. The application shall be accompanied by a Partnership Agreement. Section 5(c) shall also apply. e. The name address and home phone number of the manager or proprietor of the business. Page Five f. The names, residences and business addresses of three persons, residents of the state of Minnesota of good moral character, not related to the applicant or financially interested in the licensee's premises who may be referred to as to the applicant's character or in the case where information is required of a manager, the manager's character. g. Each application shall be accompanied by a bond in the amount of $5,000.00 executed by a surety licensed by the Department of Commerce and conditioned that in conducting such business the licensee will observe all laws in relation to pawnbrokers, secondhand goods dealers and precious metal dealers, and will conduct business in conformity thereto, and that the licensee will account for and deliver to any person legally entitled any goods which have come into the licensee's hand through the licensee's business as a pawnbroker and/or secondhand goods dealer and/or precious metal dealer, or in lieu thereof, will pay the reasonable value in money to the person. Such bond shall be maintained so long as the licensee does business as such for the benefit of the City or any person who shall suffer any damage through the act of such licensee and shall not be terminable without the bond company given written notice 30 days in advance of termination to the City Clerk. h. Each application shall be accompanied by a statement indicating the amount of investment the applicant has in the business, building, premises, fixtures, furniture, stock in trade, etc. and proof of source of such money. i. Whether the applicant holds a current pawnbrokers, secondhand goods dealer or precious metal dealers license from any other governmental unit. j. Whether the applicant has previously been denied a pawnbroker, secondhand goods dealer or precious metal dealer license from any other governmental agency. k. Whenever the application is for a premises either planned or under construction or undergoing substantial alteration, the application shall be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. If the plans or design are on file with the City of Andover Building Department, no plans need be submitted with the issuing authority. 1. Such other information as the City Councilor issuing authority may require. No person shall make any false statement in the application. In addition to other penalties, the license may be revoked by the City Council for giving false information on the application. Page Six SECTION 6. APPLICATION EXECUTION AND VERIFICATION. Every applicant for a license to maintain, operate or conduct a pawnbroker business, secondhand goods dealer business or a precious metals dealer business shall file a complete application under oath with the City of Andover upon a form provided by the City Clerk and pay a non-refundable application fee in an amount set by Council Resolution. By submitting an application the applicant consents to any and all investigations the City deems appropriate and waives any claims the applicant may have. The application, once accepted, shall be referred to the Anoka County Sheriff's Department for investigation. Copies of the application shall be submitted to such other City departments as the City Council shall deem necessary for the verification and investigation of the facts set forth in the application. SECTION 7. SPECIAL USE PERMIT REQUIRED. In addition to filing a complete application as specified above, an application for a Special Use Permit shall also be filed with the City Clerk. The procedure and provisions of the Special Use Permit are in accordance with Sections 5.03 and 7.03 of Ordinance No.8, the zoning Ordinance of the City of Andover. No person shall operate, exercise, carry-on or be engaged in the trade or business of a pawnbroker, secondhand goods dealer or precious metal dealer without first being granted a Special Use Permit from the City of Andover. SECTION 8. RENEWAL APPLICATION. All licenses shall expire one year after the issuance unless earlier renewed. A renewal application fee shall be required as set by Council Resolution. A new application fee shall be required whenever there is any change in the facts presented by the applicant other than the date, applicant(s)' home address or building owner(s)' address, or in the case of any license not renewed prior to its expiration. SECTION 9. PERSONS AND LOCATIONS INELIGIBLE FOR A LICENSE. No license under this Ordinance shall be issued to an applicant who is a natural person if such applicant: 1. Is a minor at the time of application. 2. Has been convicted of a state or federal law relating to receiving stolen property, sale of stolen property or controlled substance, burglary, robbery, theft, damage or trespass to property, operation of a business, or any law or Ordinance regulating the business of pawnbrokers, secondhand goods dealers or precious metal dealers. 3. Has had a pawnbroker, secondhand goods dealer or precious metal dealer license revoked in the last five (5) years. 4. Is not a citizen of the United states or a resident alien. 5. Is not of good moral character or repute; or Page Seven 6. Holds an intoxicating liquor license under City Ordinance. 7. Has been determined by the City Council, after investigation and public hearing, that the issuance of or the renewal of the license would adversely affect public health, safety and welfare. SECTION 10. RECORDS REQUIRED. A) Each licensee hereunder shall keep a record of each transaction made in the course of their business. Said records shall be legible, made in ink and shall be in the English language. The records so kept shall include the following information about each transaction: 1. The full name, address, and date of birth of the person pledging or selling the item. 2. The time and date of transaction. 3. A complete description of the item pledged or sold, including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying marks. 4. A physical description of the person pawning or selling the item including: a. Race. b. Sex. c. Height. d. weight. e. Color of eyes. f. Color of hair 5. The amount of money paid or loaned for the item. 6. The signature of the person pledging or selling the item. 7. The identification number from any of the following forms of identification of the seller: a. Valid drivers license containing a picture. b. A Minnesota Identification Card. c. Picture identification issued by the state of residency of the person from whom the item was received" 8. Any other information the Sheriff's Department shall require. B) Every pawnbroker, secondhand goods dealer or precious metal dealer shall make available to the Sheriff's Department, everyday, before the hour of 12:00 Noon a complete, legible and correct copy of the records required by this Section for all transactions which occurred on the previous day. The records required herein shall be kept at the licensee's place of business for three years, and shall be available for inspection by the Sheriff at any reasonable time. Page Eight C) Every pawnbroker, secondhand goods dealer or precious metal dealer shall fill out and send Daily Report Forms to the Anoka County Sheriff's Department on approved forms by the Department for the following items: 1. Any item with a serial number, identification number, or "operation identification" number. 2. Cameras. 3. Electronic audio or video equipment. 4. Precious jewelry or gems and precious metals. 5. Artist signed or artist attributed works of art. 6. Guns and firearms. 7. Items not included in the above, except furniture and kitchen or laundry appliances, which the pawnbroker, secondhand goods dealer or precious metal dealer intends to sell for more than two hundred dollars ($200.00). SECTION 11. HOLDING OF PROPERTY. When the Sheriff's Department or any member of the Department notifies the pawnbroker, secondhand goods dealer or precious metal dealer not to sell any property received on deposit or purchased by them, or not to permit the same to be redeemed, the pawnbroker, secondhand goods dealer or precious metal dealer shall not sell nor permit such property to be redeemed until such property is released in writing by the Sheriff or his designee. No personal property deposited with or purchased by any licensee under this Ordinance shall be sold or permitted to be redeemed from the place of business of the licensee until 48 hours after the copy of the records required by Section 10 have been made available to the Anoka County Sheriff, except upon written permission of the Sheriff. SECTION 12. RECEIPT. The pawnbroker, secondhand goods dealer, or precious metal dealer shall provide a receipt to the seller or pledger of any item of property received, which shall include: 1. The name, address and phone number of the pawnbroker, secondhand goods dealer or precious metal dealer; 2. The date on which the item was received by the pawnbroker, secondhand goods dealer or precious metal dealer; 3. A description of the item received and amount paid to the pledger or seller in exchange for the item pawned or sold; 4. The signature of the pawnbroker, secondhand goods dealer or precious metal dealer or agent; Page Nine 5. The last regular business day which the item must be redeemed by the pledger without risk that the item will be sold and the amount necessary to redeem the pawned item on that date; 6. The annual rate of interest charged on pawn items received; 7. The name and address of the seller or pledger. SECTION 13. REDEMPTION. Any person who pawns an item shall have at least 30 days to redeem the item before it may be sold. SECTION 14. PROHIBITED TRANSACTIONS. No pawnbroker, secondhand goods dealer or precious metal dealer shall knowingly purchase or receive on deposit or pledge anything of value as security for a loan of money from any minor, nor from intoxicated persons, nor those of unsound mind. A pawnbroker, secondhand goods dealer or a precious metal dealer may not receive goods unless seller presents proper identification as specified in Section 10. SECTION 15. HOURS OF OPERATION. From 9:00 p.m. Saturday to 7:00 a.m. Monday, no property shall be received as a pledge or purchased by any pawnbroker, secondhand goods dealer or precious metal dealer; nor shall any property be sold during said hours by any pawnbroker, secondhand goods dealer or precious metal dealer, nor on any other day before 7:00 a.m., nor on any day after 9:00 p.m. Further, no pawnbroker, secondhand goods dealer or precious metal dealer shall be open for business on any legal holiday. SECTION 16. LICENSE DISPLAYED. A license issued under this Ordinance shall be posted in a conspicuous place in the premises for which it is used. The license issued is only for the compact and contiguous space specified in the approved application. SECTION 17. DENIAL, SUSPENSION OR REVOCATION OF LICENSE. Any license under this Ordinance may be denied, suspended or revoked for any of the following reasons: 1. The use conflicts with the provisions of the Andover Zoning Ordinance; 2. The use conflicts with any health code, building code, building maintenance code or provisions of this Ordinance or any state law; Page Ten 3. The applicant has failed to comply with one or more of the provisions of this Ordinance. 4. Fraud, misrepresentation, or bribery in securing a license; 5. Fraud, misrepresentation or false statements made in the course of the applicant's business; 6. violation, within the preceding five (5) years, of any law relating to theft, damage to or trespass of property, sale of a controlled substance, or operation of a business committed by the applicant or any employee or agent of the applicant. 7. At any time when a total combination of three pawnbrokers, secondhand goods dealers or precious metal dealers licenses have been issued by the city of Andover. SECTION 18. SEPARABILITY. Should any section, subdivision, clause or other provision of this Ordinance be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the Ordinance as a whole or any part other than the part so declared to be invalid. SECTION 19. PENALTY. Any person who violates this Ordinance shall be guilty of a misdemeanor and upon conviction thereof, shall be punished according to prevailing State Laws. Adopted by the City Council of the City of Andover this 3rd day of May, 1994. CITY OF ANDOVER ATTEST:j~ ;/.Lb Victoria Volk, C'i ty Clerk CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA ORDINANCE NO. 104 SUMMARY TITLE AN ORDINANCE REGULATING PAWNBROKERS, SECONDHAND GOODS DEALERS AND PRECIOUS METAL DEALERS WITHIN THE CITY OF ANDOVER. PURPOSE The City Council of the City of Andover finds that pawnbrokers, secondhand goods dealers and precious metal dealers potentially provide an opportunity for the concealment of crimes because such businesses have the ability to receive and transfer stolen property easily and quickly. The City Council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers, secondhand goods dealers and precious metal dealers. The purpose of this Ordinance is therefore to prevent pawnbroking, secondhand goods and precious metal businesses from being used as facilities for commission of crimes and to assure that such businesses comply with the basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the residents of the City. LICENSED REQUIRED No person shall exercise, carry-on, or be engaged in the business of pawnbroker, secondhand goods dealer or precious metal dealer within the City unless such person is currently licensed under this Ordinance. A license under this Ordinance shall authorize the licensee to carryon business only at the permanent place of business designated in the license. No license may be transferred to a different location or different licensee. No more than three (3) licenses shall be issued by the City of Andover at any time and priority shall be given to qualified applicants for renewal of existing licenses. A separate license will be required for each business listed above. For instance, a pawnbroker may not conduct, operate or engage in the business of secondhand goods dealer without having obtained a secondhand goods dealer license in addition to a pawnbroker license. SPECIAL USE PERMIT REQUIRED In addition to filing a complete application as specified above, an application for a Special Use Permit shall also be filed with the City Clerk. The procedure and provisions of the Special Use Pe~mit are in accordance with Sections 5.03 and 7.03 of Ordinance No, Sf the Zoning Ordinance of the City of Andover. No person shall operate, exercise, carry-on or be engaged in the trade or business of a pawnbroker, secondhand goods dealer or precious metal dealer without first being granted a Special Use Permit from the City of Andover. Page Two Ordinance No. 104 Summary RENEWAL APPLICATION. All licenses shall expire one year after the issuance unless earlier renewed. A renewal application fee shall be required as set by Council Resolution. A new application fee shall be required whenever there is any change in the facts presented by the applicant other than the date, applicant(s), home address or building owner(s)' address, or in the case of any license not renewed prior to its expiration. BOURS OF OPERATION From 9:00 p.m. saturday to 7:00 a.m. Monday, no property shall be received as a pledge or purchased by any pawnbroker, secondhand goods dealer or precious metal dealer; nor shall any property be sold during said hours by any pawnbroker, secondhand goods dealer or precious metal dealer, nor on any other day before 7:00 a.m., nor on any day after 9:00 p.m. Further, no pawnbroker, secondhand goods dealer or precious metal dealer shall be open for business on any legal holiday.