Chapter 5.60
PAWNBROKER/SECONDHAND DEALER
Sections:
5.60.030 Permit required for designated activities.
5.60.040 Permit – Application.
5.60.050 Permit application review.
5.60.060 Pawnbroker/secondhand dealer permit – Nontransferable.
5.60.070 Place of business – Location not transferable.
5.60.080 Recordkeeping of all transactions – Permanent record required.
5.60.100 Delivery of reports to chief of police.
5.60.110 Retention and inspection of records.
5.60.120 Goods to be held for thirty days.
5.60.130 Proof of ownership declaration.
5.60.140 Receiving goods from certain persons prohibited.
5.60.150 Permit – Grounds for revocation.
5.60.170 Compliance with regulations required.
5.60.180 Posting of licenses and signs.
5.60.190 Signs – Compliance with city ordinances required.
5.60.200 Violation – Nuisance.
5.60.010 General prohibition.
A. It is unlawful for any person to operate a business in a manner prohibited by this chapter.
B. No person shall engage in or carry on the business of a pawnbroker or secondhand dealer unless he has a valid business license issued by the city, and a pawnbroker/secondhand dealer permit issued pursuant to the provisions of this chapter. (Ord. 786 § 1 (Exh. A), 1990)
5.60.020 Definitions.
“Chief of police” means the chief of police of the city of Seaside, or his designee.
“City” means the city of Seaside.
“Pawnbroker” means every person who keeps a place of business where personal property is received and for which money is advanced, with the right of privilege granted to the person to whom said money is advanced to reclaim such property upon repayment of said money, together with all legal charges incident thereto. This chapter does not regulate banks, savings and loan institutions, credit unions, or other banking organizations regulated by state or federal law.
“Permit” means a pawnbroker/secondhand dealer permit to operate or engage in the activities of a pawnbroker/secondhand dealer as required by this chapter.
“Person” means any person, firm, partnership, association, corporation, company or organization of any kind.
“Secondhand dealer” means and includes any person whose business includes buying, selling, trading, taking in pawn, accepting for sale on consignment, accepting for auctioning or auctioning secondhand tangible personal property. A “secondhand dealer” does not include a “coin dealer.”
“Tangible personal property” means that property defined by Business and Professions Code Section 21627, and includes, but is not limited to, all secondhand tangible personal property which bears a serial number or personalized initials or inscription, or which at the time of acquisition bears evidence of having had a serial number, or personalized initials or inscription. It also includes:
1. Tangible personal property, new or used, received in pledge as security for a loan, by a pawnbroker or secondhand dealer acting as a pawnbroker;
2. All tangible personal property that bears a serial number or personalized initials or inscription which is purchased by a secondhand dealer or a pawnbroker or which, at the time of such purchase, bears evidence of having had a serial number or personalized initials or inscription;
3. All personal property commonly sold by secondhand dealers which statistically is found through crime reports to the Attorney General to constitute a significant class of stolen goods. (Ord. 786 § 1 (Exh. A), 1990)
5.60.030 Permit required for designated activities.
It is unlawful for any person to advertise or carry on the business of pawnbroker or secondhand dealer without first obtaining a permit from the chief of police, as provided in this chapter, and a city business license. (Ord. 786 § 1 (Exh. A), 1990)
5.60.040 Permit – Application.
Every person desiring to establish or operate in Seaside any of the businesses or activities described in SMC 5.60.020(C) and (F) shall make a written application to the chief of police for a permit. Such application shall be on a form provided by the police department and accompanied by a nonrefundable processing fee, shall be verified, and shall at a minimum contain the following information:
A. True name and address of applicant;
B. Date and place of birth of the applicant;
C. The address of the proposed business in the city;
D. Whether the applicant has ever been convicted of a crime, excluding minor traffic violations, and, if so, the nature of the offense;
E. Employment or business record for the previous five years;
F. Fingerprints of the applicant, on a suitable form (to be taken by the police department);
G. Two-and-one-half-inch by one-and-one-half-inch photographs of the applicant taken within six months of the application;
H. The fingerprints, identifying information, and photographs of all partners, agents or employees of the applicant (fingerprints to be taken by the police department); and
I. Such other and further information as the chief of police may find necessary to process the application. (Ord. 786 § 1 (Exh. A), 1990)
5.60.050 Permit application review.
A. Upon receipt of an application for a permit, and the required fees, the chief of police shall cause an investigation to be made into the background of the applicant and any other persons involved in the operation of said business for whom fingerprints have been submitted.
B. If the chief of police ascertains that the applicant or any of the other persons involved in the operation of said business have been convicted of a felony or any crime which has a substantial relationship to the licensed business, or the applicant has submitted a falsified application, or is of undesirable character, or the proposed business does not or will not comport with the public welfare, he may deny the permit application. (Ord. 786 § 1 (Exh. A), 1990)
5.60.060 Pawnbroker/secondhand dealer permit – Nontransferable.
Any permit, together with the privileges conferred thereby, issued to a person to engage in business as a pawnbroker or a secondhand dealer, shall be nontransferable, and any attempt to transfer said permit to any other person, business, corporation, partnership or organization shall be void and of no effect. (Ord. 786 § 1 (Exh. A), 1990)
5.60.070 Place of business – Location not transferable.
No permit issued authorizing a person to engage in business as a pawnbroker or a secondhand dealer shall be deemed to authorize the conduct of said business at any location other than the specific location set forth on the permit as approved by the chief of police. A permittee may relocate his business after receiving prior written approval from the chief of police and any other necessary city department. Such location must be in accord with zoning requirements of the city. No permit will be renewed for a location other than that for which the previous permit was issued without prior notification and approval of the chief of police and compliance with city zoning and building requirements. (Ord. 786 § 1 (Exh. A), 1990)
5.60.080 Recordkeeping of all transactions – Permanent record required.
Every person managing, maintaining or conducting the business of pawnbroker or secondhand dealer in the city shall keep at the place of business:
A. A permanent bound book containing a record describing each article received or delivered in each transaction sufficient to identify the same, including all particular or prominent marks or identification that may be found on such property. Said record shall be legibly recorded in the English language, in ink, at the time of every purchase, exchange, pledge, pawn or other transfer of possession of any article, or loan thereon, and shall contain the name, age, sex, residence and an accurate description of the person from whom received, the amount of money paid or received in such transaction, and the date and hour of the transaction; or
B. A hardcopy computer printout containing the same information as required in subsection A of this section may be substituted for the permanent bound book. The printout shall be preserved in chronological order by date or transaction number. (Ord. 786 § 1 (Exh. A), 1990)
5.60.090 Report required.
In addition to the keeping of a permanent record, every person issued a permit pursuant to this chapter shall complete forms either approved or provided at actual cost by the Department of Justice, listing all tangible personal property which the permittee has purchased, taken in trade, taken in pawn, accepted for sale on consignment, or accepted for auctioning within the last twenty-four hours. The report shall be legible, prepared in English, and shall include, but not be limited to, the following information:
A. The name and current address of the intended seller or pledgor of the property;
B. The identification of the intended seller or pledgor. The identification of the intended seller or pledgor of the property shall be verified by the person taking the information. The evidence of identification must contain a complete and current address of the issuee. Identification which contains a post office box is insufficient for purposes of these regulations. The verification shall be valid if the person taking the information reasonably relies on any of the following documents, provided the document is currently valid or has been issued within five years and contains a photograph or description, or both, of the person named on it, is signed by the person, and bears a serial or other identifying number:
1. A United States passport,
2. A driver’s license issued by any state, or Canada,
3. An identification card issued by any state, or the United States;
C. A complete and reasonably accurate description of serialized property, including, but not limited to, the following: serial number and other identifying marks and symbols, owner-applied numbers, manufacturer’s name brand, and model name or number;
D. A complete and reasonably accurate description of nonserialized property, including, but not limited to, the following: size, color, material, manufacturer’s pattern name (when known), owner-applied numbers and personalized inscriptions and other identifying marks or symbols;
E. A certification by the intended seller or pledgor that he or she is the owner of the property or has the authority of the owner to sell or pledge the property;
F. A certification by the intended seller or pledgor that to his or her knowledge and belief the information is true and complete;
G. A legible fingerprint taken from the intended seller or pledgor, as prescribed by the Department of Justice. (Ord. 786 § 1 (Exh. A), 1990)
5.60.100 Delivery of reports to chief of police.
The required report shall be hand delivered to the chief of police on or before the hour of five p.m., describing the goods, articles or things pledged, pawned, bought or received during the preceding day, and containing the description and signature of the person so pledging or pawning, or giving the same. Mailing the report forms will not satisfy the requirements of this section. An exact duplicate of the report shall be kept on the permittee’s premises. No permittee shall receive, hold or keep on the premises any item of property which was not reported to the Seaside police department within twenty-four hours after receipt, unless otherwise advised by the chief of police. (Ord. 786 § 1 (Exh. A), 1990)
5.60.110 Retention and inspection of records.
The permanent record, all transaction slips and copies of all reports of property received shall be maintained on the permittee’s premises, in such a way that access to a particular record is not unreasonably difficult or time consuming, for a period of three years. All such records shall be open to inspection, during regular business hours, upon demand of any Seaside police officer. (Ord. 786 § 1 (Exh. A), 1990)
5.60.120 Goods to be held for thirty days.
A. Every pawnbroker or secondhand dealer shall retain in his or her possession for a period of thirty days all tangible personal property reported pursuant to this chapter. The thirty-day holding period shall commence with the date the report of the property’s acquisition was made to the chief of police. The chief of police may for good cause, as specified by the Department of Justice, authorize prior disposition of any such property described in a specific report; provided, that a secondhand dealer who disposes of tangible personal property pursuant to such authorization shall report the sale thereof to the chief of police. Any such article may be delivered or returned to the true owner or to his authorized agent at any time, providing a hold has not been placed on such article by the police department.
B. During the thirty-day holding period specified in subsection A of this section, every pawnbroker/secondhand dealer shall produce any tangible personal property reported pursuant to this chapter for inspection by any Seaside police officer or employee designated by the chief of police. (Ord. 786 § 1 (Exh. A), 1990)
5.60.130 Proof of ownership declaration.
A. No permittee, manager, agent or employee shall take or receive any goods, articles or things from any person without first determining that the person presenting the item for sale, purchase, pledge, exchange or pawn is the true, legal owner of said property. The permittee, manager, agent or employee shall require the person to present adequate evidence of authority to sell the item presented which, for the purposes of this section, shall mean a receipt for the item identifying the owner and describing the item presented. A proof of ownership declaration may be substituted for a receipt, if compliance with regulations set forth in SMC 5.60.160 are met. The proof of ownership declaration shall be a form approved by the state. A verbal response from the person asserting ownership of the item is not considered adequate proof of ownership.
B. No permittee, manager, agent or employee shall take or receive any goods, articles or things from any person who refuses to execute a proof of ownership declaration in cases in which the person does not present adequate evidence of authority to sell as required in subsection A of this section. (Ord. 786 § 1 (Exh. A), 1990)
5.60.140 Receiving goods from certain persons prohibited.
No permittee, manager, agent or employee shall take or receive any goods, articles or things from any person who is in an intoxicated condition, or a person under eighteen years of age. (Ord. 786 § 1 (Exh. A), 1990)
5.60.150 Permit – Grounds for revocation.
Any permit issued under the provisions of this chapter may be revoked for any of the following reasons:
A. Fraud, misrepresentation or false statement contained in the application for the permit;
B. Fraud, misrepresentation or false statement made in the course of carrying on the business regulated by this chapter;
C. Any violation of any of the provisions of this chapter or of any other provision of this code relating to any of the business activities conducted or carried on by the permittee;
D. Any violation of state or federal law relating to any of the business activities conducted or carried on by the permittee;
E. Conviction of a crime by a holder of such permit during the period in which the permit was issued if the crime is substantially related to the qualifications, functions or duties of a pawnbroker or secondhand dealer. (Ord. 786 § 1 (Exh. A), 1990)
5.60.160 Hearing and appeal.
Any person whose permit has been revoked by the chief of police shall have the right to an appeal hearing before the city manager to challenge the revocation of the permit. (Ord. 786 § 1 (Exh. A), 1990)
5.60.170 Compliance with regulations required.
The permittee shall be responsible for requiring compliance with these rules and regulations by any manager, agent or employee. Any violation by the permittee’s manager, agent or employee shall be deemed a violation by the permittee for purposes of enforcement of the provisions of this chapter. (Ord. 786 § 1 (Exh. A), 1990)
5.60.180 Posting of licenses and signs.
Every person subject to the provisions of this chapter shall display, in a conspicuous location in the place of business, the following:
A. A valid city permit and business license;
B. A sign stating “No person pledging, pawning, selling, or trading any articles shall sign any name other than his true name or give any address other than his true address. To knowingly or intentionally provide false information is a misdemeanor.” (Ord. 786 § 1 (Exh. A), 1990)
5.60.190 Signs – Compliance with city ordinances required.
All signs posted on premises shall comply with applicable zoning, sign, building and other ordinances of the city. (Ord. 786 § 1 (Exh. A), 1990)
5.60.200 Violation – Nuisance.
Any business, building or structure within which such business is being operated contrary to the provisions of this chapter, and any use of land, building or premises within which a business is being conducted, operated or maintained contrary to the provisions of this chapter, are unlawful and a public nuisance. (Ord. 786 § 1 (Exh. A), 1990)
5.60.210 Violation – Penalty.
Any person violating any of the provisions or failing to comply with any of the mandatory requirements of this chapter is subject to the penalty provisions of Chapter 1.16 SMC, in addition to any other remedies provided by law. (Ord. 786 § 1 (Exh. A), 1990)