Chapter 5.40 SECONDHAND DEALERS*

The purpose of this Chapter is to strictly regulate certain business activities that present an extraordinary risk of being used to conceal criminal behavior, including the theft of property. This risk is present despite the best effort of legitimate businesses, because these businesses process large volumes of goods and materials that are frequently the subject of theft. This Chapter is intended to reduce this type of criminal activity by providing more timely police awareness of such property transactions, and by regulating the conduct of persons engaged in this business activity. The need for these regulations outweighs any noncompetitive effect that may result from their adoption.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.

5.40.021 Definitions.

As used in this Chapter, unless the context requires otherwise:

(1) “Acceptable Identification” means either a valid photo driver’s license, or two pieces of identification issued by a government agency, one of which shall include a physical description and a photograph of the person from whom the regulated property is being purchased.

(2) “Council” means the Gladstone City Council, or its designee.

(3) “Criminal convictions related to fraud, deception, dishonesty or theft” means any conviction for a criminal violation of Oregon Revised Statutes, Charter 165, 164.005 through 164.235, 162.005 through 162.161, 162.265 through 162.385, or any similar provision of previous or later Oregon statutes or the statutes of another state or of the United States.

(4) “Police Chief” means the Police Chief of Gladstone, or his or her designee.

(5) “Person” means any natural person, or any partnership, association, company, organization or corporation.

(6) “Regulated Property” means any of the following property which is used or secondhand, unless excluded by subsection (6)(s) below:

(a) Precious metals including, but not limited to, any metal that is valued for its character, rarity, beauty or quality, including gold, silver, platinum, or any other metals, whether as a separate item or in combination as a piece of jewelry.

(b) Precious gems including, but not limited to, any gem that is valued for its character, beauty or quality, including diamonds, rubies, emeralds, sapphires or pearls, or any such precious or semiprecious gems or stones, whether as a separate item or in combination as a piece of jewelry.

(c) Watches of any type and jewelry containing precious metals or precious gems including, but not limited to, rings, necklaces, pendants, earrings, brooches, chains.

(d) Sterling silver including, but not limited to, flatware, candle holders, salt and pepper shakers, coffee and tea sets or ornamental objects.

(e) Audio equipment including, but not limited to, tape players, tape decks, compact digital disc players, sound metering devices, tuners, amplifiers, speakers, transceivers, equalizers, radios, receivers, phonographs, turntables, stereos, radios, clock radios, car stereos, car speakers, radar detectors, or citizen band radios or transceivers.

(f) Video equipment including, but not limited to, videotape or video disk recorders, videotape or video disc players, video cameras or video monitors, color televisions, or black and white televisions.

(g) Photographic and optical equipment including, but not limited to, cameras, camera lenses, camera filters, camera motor drives, light meters, flash equipment, movie projectors, photographic enlarging equipment, binoculars, telescopes, opera glasses, microscopes, surveying equipment, rifle scopes, spotting scopes, or electronic sighting equipment.

(h) Electrical office equipment including, but not limited to, printers, telefax machines, copiers, duplicators, typewriters, calculators, cash registers, transcribers, dictaphones, computers, modems, monitors, or any computer equipment or accessories.

(i) Power equipment and tools including, but not limited to, air hammers, air tools, nail guns, power staplers, power saws, power sanders, chain saws, power planes, power drills, routers, lathes, joiners, shop vacuums, paint sprayers and accessory equipment, generators, air compressors, pressure washers or logging equipment.

(j) Hand tools including, but not limited to, wrench sets, socket sets, screwdriver sets, pliers, vise grips, toolboxes, auto-body hammers, jacks or timing lights.

(k) Telephones or telephone equipment including, but not limited to, office telephones, portable home telephones, mobile telephones, or answering machines.

(l) Power yard and garden tools including, but not limited to, garden tractors, lawn mowers, rototillers, lawn sweepers, weed or brush cutters, edgers, trimmers, or blowers.

(m) Musical instruments including, but not limited to, pianos, organs, guitars, violins, cellos, trumpets, trombones, saxophones, flutes, percussion instruments or electrical synthesizers, amplifiers, or mixing boards.

(n) Firearms including, but not limited to, rifles, handguns, shotguns, pellet guns, or BB guns.

(o) Sporting equipment including, but not limited to, golf clubs, camping equipment, skis, ski boots, fishing poles and reels.

(p) Outboard motors, and boating accessories including, but not limited to, outdrives, props, inboard engines, boat covers and tops, and licensed and unlicensed boat trailers.

(q) Microwave ovens.

(r) Objects d’art including, but not limited to, paintings, prints, sculptures, ceramics, and porcelains.

(s) “Regulated property” does not include any of the following property:

(A) Books and comic books;

(B) Sports cards including, but not limited to, baseball, football, basketball or hockey cards;

(D) Stamps, including, but not limited to, state or country stamps;

(E) Gold or Silver Bullion (0.995 fine or better);

(F) Coins or money adopted by a government as part of its currency;

(G) Vehicles required to be registered with the Motor Vehicles Division, or boats required to be certified by the Oregon Marine Board;

(H) Furniture;

(I) Refrigerators, clothes washing machines, clothes dryers, stoves, non-microwave ovens, and dishwashers;

(J) Used clothing.

(7) “Secondhand dealer” means any person who:

(a) Engages in, conducts, manages or carries on a permanent business, for the purpose of buying or selling regulated property; and

(b) Either:

(A) Purchases regulated property at or from business premises located within the City of Gladstone, or on behalf of such a business regardless of where the purchase occurs; or

(B) Offers for sale of regulated property within the City of Gladstone.

(C) Secondhand dealers do not include the carrying on of periodic garage, estate, yard and similar sales on five days or fewer in any calendar month or on three or fewer consecutive days in any one week.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997; Ord. 1322 §1, 2002, Ord. 1377, 2006.

[Ed. Note: The publication(s) referred to or incorporated by reference in this ordinance are available from the office of the City Recorder.]

5.40.031 Permit required.

No person shall act as a secondhand dealer within the City of Gladstone without a valid secondhand dealer’s permit issued by the Police Chief.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.

5.40.041 Application for permit.

(1) An application for a secondhand dealer’s permit shall set forth the following information:

(a) The name, address, telephone number, birth date and principal occupation of the applicant and any other person who will be directly engaged or employed in the management or operation of the business or the proposed business;

(b) The name, address and telephone number of the business or proposed business and a description of the exact nature of the business to be operated;

(d) The applicant’s business occupation or employment for the three years immediately preceding the date of application;

(e) A brief summary of the applicant’s business history in Clackamas County or in any other city, county or state including:

(A) The business license or permit history of the applicant; and

(B) Whether the applicant has ever had any such license or permit revoked or suspended, the reasons therefore, and the business activity or occupation of the applicant subsequent to the suspension or revocation.

(f) The form of the business or proposed business, whether a sole proprietorship, partnership or corporation, etc., and:

(A) If a partnership, the names, birth dates, addresses, telephone numbers, principal occupations, along with all other information required; of any individual applicant, of each partner, whether general, limited, or silent, and the respective ownership shares owned by each;

(B) If a corporation, or limited liability company, the name, copies of the articles of incorporation and the bylaws, and the names, addresses, birth dates, telephone numbers, and principal occupations, along with all other information required of any individual applicant, of every officer, director, and every shareholders owning more than five percent of the outstanding shares, and the number of shares held by each.

(g) Any criminal convictions relating to fraud, deception, dishonesty or theft, or citations for violation of secondhand dealer ordinances or statutes of any city, county, or state, of each applicant and all natural persons enumerated in subparagraphs (a) through (f) of this section; and

(h) Any other information which the Police Chief may reasonably feel is necessary to accomplish the goals of this Chapter.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.

5.40.051 Issuance and renewal of permit.

(1) Applications for a secondhand dealer’s permit shall be filed with the Police Chief and shall include payment of the required fee. The Police Chief shall conduct an investigation of the applicant. The Police Chief shall issue such permit if no cause for denial as noted herein exists.

(2) The Police Chief shall deny an application for a secondhand dealer’s permit if:

(a) The applicant, or any other person who will be directly engaged in the management or operation of the business, or any person who owns a five percent or more interest in the business, has previously owned or operated a business regulated by this Chapter or a similar ordinance or law of another city, county or state; and

(A) The license and permit for the business has been revoked for cause which would be grounds for revocation pursuant to this Chapter; or

(B) The business has been found to constitute a public nuisance and abatement has been ordered; or

(b) Any of the persons involved in the business has been convicted of any criminal offense related to fraud, deception, dishonesty or theft, or convicted of any violation of secondhand dealer ordinances or laws of any city, county or state; or

(c) The operation as proposed by the applicant would not comply with all applicable requirements of statutes and local ordinances including, but not limited to: building, health, planning, zoning and fire codes; or

(d) Any statement in the application is found to be false or any required information is withheld; or

(e) Evidence exists to support a finding that either:

(A) The location of the business for which the application has been filed has a history of violations of the provisions of this Chapter; or

(B) A statistically significant record exists of criminal offenses relating to fraud, deception, dishonesty or theft in the area located within five hundred feet (500’) of the premises; or

(f) The operation does not comply with applicable federal or state licensing requirements.

(3) Notwithstanding GMC Section 5.40.051(2), the Police Chief may grant a permit despite the presence of one or more of the enumerated factors if the applicant establishes to the Police Chief’s satisfaction that:

(a) The behavior evidenced by such factor is not likely to recur; and

(b) The behavior evidenced by such factor is remote in time; and

(c) The behavior evidenced by such factor occurred under circumstances which diminish the seriousness of the factor as it relates to the purpose of this Chapter.

(4) Secondhand dealer permits shall be for a term of one year and shall expire on the anniversary of their issuance. The permits shall be nontransferable and shall be valid only for a single location. When the business location is to be changed, the permit holder shall provide the address of the new location in writing to the Police Chief for approval or disapproval at least fourteen (14) days prior to such change.

(5) All secondhand dealer permits shall be displayed on the business premises in a manner readily visible to patrons.

(6) The decision of the Police Chief concerning issuance of a permit may be appealed to the City Council pursuant to GMC Section 5.40.141.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.

5.40.061 Permit fees.

(1) Every person engaged in conducting or carrying on a secondhand dealer’s business shall:

(a) File an application as described in GMC Section 5.40.051 and pay a nonrefundable fee of $150.00; or

(b) For renewal of a secondhand dealer’s permit, file an application and pay a nonrefundable fee of $75.00.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.

5.40.071 Additional locations.

(1) The holder of a valid secondhand dealer’s permit shall file with the Police Chief an application for a permit for an additional location, and shall not be required to pay any fee, provided the information required for the additional location is identical to that provided in the application for the prior location with the following exceptions:

(a) The location information may differ; and

(b) The business history may differ to the extent it reflects the existence of the other location.

(2) Permits issued for additional locations shall be subject to all the requirements of this Chapter, and the term of any permit issued for an additional location shall expire on the same date as the initial permit.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.

5.40.081 Seller identification—Purchase forms—Dealer’s register.

(1) The Police Chief shall provide all secondhand dealers with purchase report forms.

(2) When purchasing regulated property, second dealers shall obtain acceptable identification and a current, valid residential address from the seller.

(3) All secondhand dealers shall write a description of the purchased property upon a purchase report form at the time of purchasing any item of regulated property. The description of the purchased property shall be as called for by the purchase report form. Dealers shall fill in all of the blank spaces on the purchase report forms with the data required by the form and require the person selling any regulated property to sign his or her name on the form. All data on purchase report forms shall be printed in clearly legible English.

(4) The information furnished on purchase report forms is required in order to assist in the investigation of thefts of property. The information furnished by sellers shall be deemed to be of a confidential nature, and to be a trade secret of the secondhand dealer. The information shall be treated as confidential and exempted from disclosure to the maximum extent possible under applicable laws.

(5) All secondhand dealers shall mail or deliver to the Police Chief at the close of each business day the original and second copy of all report forms describing articles purchased that business day.

(6) A copy of all completed report forms shall be retained by secondhand dealers on the premises where the transactions occur for a period of no less than one [1] year from the date of purchase.

(7) All secondhand dealers shall keep a book register of all articles purchased or received by the dealer. The register shall contain a full, true and complete statement of all regulated property purchased or received during each day. The register shall also show the hour of the day when each article was purchased or received, any amounts paid, an identifiable description of each article purchased or received, and a tag number as required by GMC Section 5.40.101. If any article purchased or received has engraved thereon any identifying number, mark or symbol, or contains any settings of any kind, the description of such article in the register shall contain such number, mark, or symbol, and show the kind of settings and the number of each kind. The register shall be kept on the premises where the transactions occur, and shall be open to inspection by the Police Chief at all times during business hours. The register shall be retained by the dealer for a period of at least one year after the date of the last entry therein.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.

5.40.091 Regulated property sale limitations.

(1) No regulated property purchased by any secondhand dealer shall be sold for a period of twenty (20) full days after the date of purchase. The dealer shall maintain the purchased property in the same form as purchased and shall not commingle the property so as to preclude identification during this 20-day holding period. The purchased property shall be located on the business premises during this holding period so that it can be inspected as provided in GMC Section 5.40.101. Notwithstanding this requirement, the Police Chief may authorize the sale or transfer of an item of purchased regulated property before the expiration of this period, in cases in which the dealer shows that extreme financial hardship will result from holding such property for the 20-day period.

(2) Upon reasonable belief that purchased regulated property is the subject of theft, the Police Chief may provide oral or written notice to any secondhand dealer to sequester any specifically described regulated property. The dealer shall retain the sequestered property in the same form as purchased and shall not commingle the property so as to preclude identification. The dealer shall not sell, exchange, dismantle or otherwise dispose of any such sequestered property for a period of time, as determined by the Police Chief, not to exceed 180 days after the date of purchase. A secondhand dealer may appeal a notice to sequester property under GMC Section 5.40.141 of this Chapter, seeking release of the property from the notice to sequester.

(3) If a secondhand dealer purchases regulated property with serial numbers, personalized inscriptions or initials, or other identifying marks which are or have been altered, obliterated, removed, or otherwise rendered illegible, the secondhand dealer shall hold such regulated property on the business premises for a period of ninety [90] days after the date of purchase. The dealer shall maintain such purchased regulated property in the same form as purchased and shall not commingle the property so as to preclude identification during this 90-day holding period. Such regulated property shall be located on the business premises during this holding period so that it can be inspected, as provided in GMC Section 5.40.101.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.

5.40.101 Tagging regulated property for identification—Police Chief’s inspection.

(1) Any secondhand dealer purchasing any regulated property shall affix to such property a tag upon which shall be written a number in legible characters. The number shall correspond to the number on the purchase report forms and dealer’s register required by GMC Section 5.40.081.

(2) Upon representation of official identification, the Police Chief may enter onto the business premises of any person with a secondhand dealer’s permit to ensure compliance with the provisions of this Chapter. The inspection shall be for the limited purpose of inspecting any regulated property purchased by the dealer, held by the dealer pursuant to GMC Section 5.40.091, or the records incident thereto. Such inspections shall occur only during normal business hours.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.

5.40.111 Prohibited acts.

(1) It shall be unlawful for any person:

(a) To act as a secondhand dealer within the City of Gladstone without a valid secondhand dealer’s permit issued by the Police Chief; or

(b) To fail to obtain acceptable identification from the person selling any regulated property; or

(c) To fail to have the person selling any regulated property sign the purchase report form describing the article purchased; or

(d) To fail to retain on the business premises a copy of the purchase report form and dealer’s register describing the purchased regulated property for a period of one [1] year from the date of purchase; or

(e) To fail to mail or deliver to the Police Chief at the close of each business day the original and second copy of all purchase report forms describing regulated property purchased during that business day; or

(f) To fail to include on purchase report forms and dealer’s register all readily available information required by the form and register; or

(g) To fail to withhold from sale any regulated property for the required holding period after purchase; or

(h) To fail, after purchasing regulated property, to retain the property on the business premises for the required holding period after its purchase; or

(i) To fail to allow inspection by the Police Chief of any regulated property being retained pursuant to this Chapter; or

(j) To fail to allow inspection by the Police Chief of any records required by this Chapter; or

(k) To fail to have affixed to any purchased regulated property, during the required holding period, a tag on which is written a number in legible characters which corresponds to the number on the purchase record form required by this Chapter; or

(l) To continue activities as a secondhand dealer after suspension or revocation of a permit.

(2) Any violation of GMC Section 5.40.111(1) is a Class “A” infraction.

(3) In calculating the amount of any fine to be assessed under this section, the following factors shall be considered:

(a) The extent and nature of the involvement in the violation;

(b) The benefits, economic, financial or otherwise, accruing or likely to accrue as a result of the violation;

(d) The magnitude and seriousness of the violation;

(e) The city’s cost of investigating the violation and correcting or attempting to correct the violation;

(f) Whether the facts underlying the violation have been considered in a previous proceeding; and

(g) Other relevant factors.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.

5.40.121 Citation.

(1) The Police Chief, upon learning of a violation of GMC Section 5.40.111(1), may issue the secondhand dealer an infraction citation. Such citation shall be delivered at the address listed on the permit application during regular business hours to a person who appears to be in charge.

(2) The citation shall list the nature of the violation, and the time and date of the citation. The citation shall also indicate the fine assessed for said violation.

(3) Nothing in this section shall affect the ability of the city to take any and all actions otherwise authorized to abate any violation.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.

5.40.131 Revocation or suspension of permit.

(1) The Police Chief may revoke or suspend any permit issued pursuant to this Chapter:

(a) For any cause which would be grounds for denial of a permit; or

(b) Where investigation reveals that any violation of the provisions of this Chapter has been committed by any person and such offense is connected in time and manner with the operation of the business so that the person(s) in charge of such establishment knew, or should reasonably have known, that such violation(s) would occur or were occurring, and failed to exercise reasonable diligence to prevent it; or

(d) If the secondhand dealer’s activities cause significant litter, noise, vandalism, vehicular or pedestrian traffic congestion or other locational problems in the area around the dealer’s premises; or

(e) If any statement contained in the application for the permit is found to have been false; or

(f) If any secondhand dealer fails to meet federal or state licensing requirements.

(2) The Police Chief shall give the permittee written notice of proposed revocation or suspension of any permit issued pursuant to this Chapter by causing notice to be served upon the permit holder at the address listed on the permit application. Service of the notice shall be accomplished by either mailing the notice by certified mail, return receipt requested, or by service in the same manner as a summons served in an action at law. Refusal of the service by the person whose permit is revoked or suspended shall be prima facie evidence of receipt of the notice. Service of notice upon the person in charge of a business during its hours of operation shall constitute prima facie evidence of notice to the person holding the permit to operate the business.

(3) Revocation or suspension shall be effective and final ten (10) days after the giving of such notice unless such revocation or suspension is appealed to the City Council in accordance with GMC Section 5.40.141.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.

5.40.141 Appeals.

(1) The City Council shall have jurisdiction over all appeals that are submitted in accordance with this Chapter. In appeals properly brought before the City Council, the City Council’s decision shall be the city’s final determination with regard to the issues decided. Review shall be by Writ of Review as provided in ORS 34.010-34.100.

(2) Rights of Appeal. Any person may appeal to the City Council if:

(a) The person’s secondhand dealer’s permit has been proposed by the Police Chief to be revoked or suspended; or

(b) The Police Chief refuses to issue or renew a secondhand dealer’s permit.

(c) The person has purchased property in the course of business as a secondhand dealer and that property has been sequestered or seized by the Police Chief as stolen property.

(3) Procedure for Filing Appeal; Contents and Effect of Appeal.

(a) An appellant may appeal to the City Council by filing a notice of appeal with the Police Chief. The Police Chief shall notify the City Administrator so the City Administrator may set a time for hearing and notify the parties.

(b) The filing of a notice of appeal shall stay the effective date of revocation or suspension of a permit until the appeal is determined by the City Council. The filing of a notice of appeal regarding property sequestered or seized by the Police Chief as stolen property shall stay the delivery of that property to another person until the appeal is determined by the City Council, except as otherwise ordered by a court.

(c) The notice of appeal shall state the name and address of the appellant to which all notices required may be mailed. The notice of appeal shall also indicate the action being appealed, the reasons why the action was incorrect, and what the correct determination should be.

(d) The appellant shall be deemed to have waived the right to object and the appeal shall be dismissed if:

(A) The notice of appeal is not filed within the specified time; or

(B) The notice of appeal does not otherwise conform to these requirements.

(e) The City Administrator shall cause notice of the hearing to be given to the appellant(s) and respondent(s) either personally or by First Class United States Mail. The notice shall contain a statement of the time, date and place of the hearing. Notice shall be mailed or delivered at least fifteen (15) days prior to the hearing date.

(4) Powers of the City Council on Appeal.

(a) The City Council may grant or deny the appeal and may order any and all of the following:

(A) That the license of any secondhand dealer be revoked or suspended;

(B) That any business establishment operated in violation of this Chapter be closed;

(C) That property seized by the Police Chief as stolen property be retained by the Police Chief and disposed of as provided by law for stolen property; or be returned to the rightful owner of the stolen property; or be returned to the secondhand dealer.

(5) Judicial Review. Review of the final order of the City Council under this Chapter shall be by Writ of Review as provided in ORS 34.010-34.100.

Statutory Reference: ORS 221.410

History: Ord. 1235 §2, 1997.