Chapter 5.40
SECONDHAND DEALERS AND PAWN SHOPS
Sections:
5.40.040 Unauthorized sale of property.
5.40.080 Issuance, renewal or revocation of permit.
5.40.090 Change of place of business.
5.40.100 Dealer recordkeeping.
5.40.110 Regulated property sale limitations.
5.40.120 Reporting transactions.
5.40.140 Inspection of property and records.
5.40.010 Short title.
This chapter shall be known and may be cited as the “secondhand dealer and pawn shop ordinance.” [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.020 Purpose.
This chapter of the code regulates the purchase of used property by certain businesses. This activity presents an extraordinary risk of misuse to conceal criminal conduct involving the theft of personal property. The risk of misuse is present despite the best efforts of legitimate businesses to otherwise control the risk. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.030 Definitions.
For the purpose of this chapter of the city code, the following mean:
“Acceptable identification” means either:
1. A current driver’s license or State of Oregon identification card issued by the Department of Motor Vehicles that includes the date of birth, photograph, and physical description of the person offering the identification; or
2. Two other pieces of current identification, at least one of which is issued by a governmental agency or subdivision and includes the date of birth, photograph and physical description of the person offering the identification.
“Application date” means the date the city receives the application from an applicant for a secondhand dealer permit.
“Business” means a shop, store, enterprise, profession, activity, establishment or undertaking of any nature conducted directly or indirectly for private profit or benefit and as a substantial means of a person’s livelihood. The term is not meant to include the activity of any federal, state, or local government or governmental subdivision or agency, or of any organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code.
“Chief of police” means the chief of police of the City of Newberg or the chief of police’s designee.
“Dealer” or “secondhand dealer” means a sole proprietorship, partnership, limited partnership, family limited partnership, joint venture, association, cooperative, trust, estate, corporation, personal holding company, limited liability company, pawnbroker licensed under the Oregon Pawnbroker’s Act, ORS 726.020, 726.990 or any other form of organization for doing business and that either:
1. Acquires regulated property at or from business locations within the City of Newberg, or on behalf of such a business regardless of where the acquisition occurs; or
2. Offers for sale regulated property.
“Dealer” does not include:
1. A business whose acquisitions of regulated property consist exclusively of donated items and/or purchases from 501(c)(3) organizations; or
2. A person whose only business transactions with regulated property in the City of Newberg consist of the sale of personal property acquired for household or other personal use; or
3. A person whose only business transactions with regulated property in the City of Newberg consist of a display space, booth, or table maintained for displaying or selling merchandise at any trade show, convention, festival, fair, circus, market, flea market, swap meet or similar event for less than 14 days in any calendar year.
“Occasional secondhand dealer” means dealers that offer for sale not more than 50 items of regulated property in any one-year period. The term “dealer” in this chapter and all regulations herein refers to secondhand dealers, occasional secondhand dealers and pawnbrokers unless specifically stated otherwise.
“Owner” means a person who has a right of possession to an item of property superior to that of the seller.
“Person” means any individual, partnership, corporation or association.
“Personal property” means any article, substance or thing of value, including, but not limited to, money, tangible and intangible personal property, chose in action, and evidence of debt or of contract.
“Purchase” means the acquisition of or the act of acquiring title to property by a buyer in exchange for valuable consideration given to the seller. The term is not meant to include:
1. A trade-in, by which a seller acquires title to property as payment or part payment for the purchase of new or used merchandise;
2. Bailment for sale, by which a seller consigns property to another for sale;
3. A pledge loan, by which a pawnbroker licensed by the State of Oregon lends money secured by a pledge;
4. The acquisition of a security interest, by which a person acquires an interest in property to secure payment or performance of an obligation.
“Regular secondhand dealer” means a person who purchases regulated property while carrying on a business and who does not qualify as an occasional secondhand dealer under this chapter.
“Regulated property” means:
1. Used Items.
a. Precious metals. Examples include:
i. Any metal that is valued for its character, rarity, beauty or quality, including gold, silver, platinum, or any other such metals, whether as a separate item or in combination as a piece of jewelry.
ii. Jewelry containing precious metals or precious gems including but not limited to rings, necklaces, pendants, earrings, brooches, bracelets, or chains.
b. Precious gems. Examples include: Any gem that is valued for its character, rarity, beauty or quality, including diamonds, rubies, emeralds, sapphires or pearls, or any other such precious or semi-precious gems or stones, whether as a separate item or in combination as a piece of jewelry.
c. Precious metal scrap: Any item composed in part or in whole of precious metal which does not contain identifiable markings or inscriptions and which is valued primarily for the scrap value of the precious metal. This does not include sterling silver wares.
d. Watches.
e. Sterling silver. Examples include: flatware, candleholders, coffee and tea sets, ornamental objects, champagne flutes, wineglasses or serving pieces such as platters, bowls, trays, water pitchers, open bakers, ice buckets, shell dishes or salt and pepper shakers.
f. Electronic equipment. Examples include:
i. Audio equipment including but not limited to: tape players, tape decks or players, compact/digital disc players, sound metering devices, tuners, amplifiers, speakers, transceivers, equalizers, receivers, phonographs, turntables, stereos, radios, car stereos, car speakers, microphones, broadcasting equipment, citizen band radios/transceivers, digital audio recorders or players.
ii. Video equipment including but not limited to: televisions, videotape or videodisc recorders, videotape or videodisc players, video cameras, video projectors, video monitors, digital video recorders or players.
iii. Electrical office equipment including but not limited to: telefax machines, laser printers, copiers, duplicators, typewriters, calculators, cash registers, transcribers, dictaphones, computers, home computers, modems, monitors, any computer equipment or accessories having uniquely identifiable parts or identifiable software.
iv. Telephones or telephone equipment including but not limited to: answering machines, cellular telephones, or satellite telephones.
v. Video game equipment including but not limited to: game units and games that are handheld, console or played on a computer, video games on disks or cartridges and video game accessories.
vi. Other electronic equipment including but not limited to: global positioning systems, electronic navigation devices or radar detectors.
g. Photographic and optical equipment and any accompanying bags including but not limited to: cameras, camera lenses, camera filters, camera motor drives, light meters, flash equipment, movie projectors, slide projectors, photography processing equipment, photography enlarging equipment, binoculars, telescopes, opera glasses, microscopes, surveying equipment both optical and electronic, rifle scopes, spotting scopes, electronic sighting equipment, tripods, accessories and components, digital image recorders or display devices.
h. Power yard and garden tools including but not limited to: garden tractors, lawn mowers, rototillers, lawn sweepers, weed or brush cutters, edgers, trimmers, blowers, chippers, shredders or ladders.
i. Power equipment and tools including but not limited to: air hammers, air tools, nail guns, power staplers, power saws, power sanders, chainsaws, power planers, power drills, routers, lathes, joiners, shop vacuums, paint sprayers and accessory equipment, generators, air compressors, pressure washers, logging equipment, welding or cutting equipment or components, measuring devices and gauges or construction equipment.
j. Automotive and hand tools including but not limited to: wrench sets, socket sets, screwdriver sets, pliers, vise grips, tool boxes, auto body hammers, jacks, timing lights, testing and analyzing equipment or components.
k. Musical instruments and any accompanying cases or bags including but not limited to: electronic keyboards, guitars, violins, cellos, trumpets, trombones, saxophones, flutes, drums, percussion instruments, electronic synthesizers, or mixing boards.
l. Firearms including but not limited to: rifles, shotguns, handguns, revolvers, pellet guns, or BB guns.
m. Sporting equipment limited to: kayaks, bicycles, golf clubs and bags, pool cues or cases, snow or water skis, snow or water boards, fishing rods or reels, skates, saddles or tack.
n. Outboard motors and boating accessories limited to: outdrives, props, inboard engines, electric boat motors, boat covers, tops, or unlicensed boat trailers.
o. Household appliances, including but not limited to: microwave ovens, sewing machines, vacuums, mixing and food preparation equipment.
p. DVDs and Blu-ray discs.
q. Property that is not purchased by a bona fide business for investment purposes, limited to:
i. Gold bullion bars (0.995 fine or better);
ii. Silver bullion bars (0.995 fine or better);
iii. All tokens, coins, or money, whether commemorative or an actual medium of exchange adopted by a domestic or foreign government as part of its currency whose intrinsic, market or collector value is greater than the apparent legal or face value; or
iv. Postage stamps, stamp collections and philatelic items whose intrinsic, market or collector value is greater than the apparent legal or face value.
2. New Items.
a. New items purchased from a licensed business are exempt from regulation under this section if the dealer has a bill of lading, receipt, invoice or the equivalent for the new items that specifies the seller’s business name, physical and mailing address, date of transaction and a description of the purchased items. The bill of lading, receipt, invoice or the equivalent must be held by the dealer for one year or as long as the property is in the dealer’s possession, whichever is longer. Upon reasonable belief that a specific licensed business is dealing in stolen property or is acquiring property in violation of this or any jurisdiction’s secondhand dealer requirements, the chief of police may deem that new items purchased from that specific licensed business are regulated property.
b. Items acquired from a manufacturer, manufacturer’s representative or distributor that are discontinued or have been used for display or demonstration but not previously sold are new and exempt from regulation under this section if the dealer has a bill of lading, receipt, invoice or the equivalent that includes the information specified in subsection (2)(a) of this definition. The dealer must hold the bill of lading, receipt, invoice or the equivalent for one year or as long as the property is in the dealer’s possession.
3. “Regulated property” does not include any of the following property:
a. Vehicles required to be registered with the Oregon Motor Vehicles Division;
b. Boats required to be certified by the Oregon Marine Board;
c. Books and comic books;
d. Glassware, objets d’art, or sports cards and sports memorabilia;
e. Furniture;
f. Refrigerators, freezers, stoves, ovens, dishwashers, washers, and dryers. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.040 Unauthorized sale of property.
A. No person shall sell or attempt to sell personal property to a secondhand dealer without the consent of the property’s owner.
B. A secondhand dealer shall post a notice substantially similar to that set forth in subsection (C) of this section in the manner and at the locations described in subsection (D) of this section. The size of the notice shall be no smaller than eight and one-half inches by 11 inches with lettering no smaller than one-fourth of an inch in height.
C. The notice shall be worded substantially as follows:
NOTICE
The sale or attempted sale of property to a secondhand dealer without consent of the property’s owner is punishable by a civil penalty not to exceed $500 per item.
Don’t sell property without consent of the property’s owner. You will be held strictly liable for violation of this law.
D. Every copy of the notice required to be posted under this section shall be posted in a manner reasonably calculated to provide patrons actual knowledge of the contents of the notice. A copy of the notice shall be posted:
1. Outside each point of entry intended for patron use; and
2. At or near each place where a regular secondhand dealer purchases used personal property in the regular course of business.
E. If a significant number of the patrons of the regular secondhand dealer use a language other than English as a primary language, the notice shall be worded in both English and the primary language or languages of the patrons. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.050 Permit required.
A. No secondhand dealer shall carry on a secondhand business without a secondhand dealer permit. A secondhand dealer permit shall be required in addition to a business license required by Chapter 5.05 NMC, or any other city license or permit.
B. A secondhand dealer engaged in a secondhand business on or before the effective date of the ordinance codified in this chapter who intends to continue that business after the effective date of the ordinance codified in this chapter shall apply for a secondhand dealer permit within 30 days of the effective date of the ordinance codified in this chapter. If the secondhand dealer submits the application within the 30 days, the dealer may continue to purchase regulated property without a secondhand dealer permit until such permit is issued or denied.
C. The sale of regulated property at events commonly known as “garage sales,” “yard sales,” or “estate sales” is exempt from these regulations if all of the following are present:
1. No sale exceeds a period of 72 consecutive hours; and
2. No more than four sales are held at the same location in any 12-month period. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.060 Fee.
Secondhand dealers are required to pay business licensing fees pursuant to Chapter 5.05 NMC. No additional fees beyond those required by Chapter 5.05 NMC are required to obtain or renew a secondhand dealer permit. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.070 Application process.
A secondhand dealer shall apply for a secondhand dealer permit or renew an existing secondhand dealer permit in the following manner:
A. The city shall make available an application form for secondhand dealer permits and renewal of secondhand dealer permits.
B. The application form may require all secondhand dealers to supply the following information:
1. The name, address, telephone number, Social Security number, date of birth and principal occupation of the person applying for the permit.
2. The name of the secondhand business in whose name the permit should be issued if the application is approved.
3. The mailing address of the secondhand business and, if different from its mailing address, the location where the business is to be conducted in the city.
4. The Web address of any and all Web pages used to acquire or offer for sale regulated property on behalf of the secondhand dealer, and any and all Internet auction account names used to acquire or offer for sale regulated property on behalf of the secondhand dealer.
5. An estimate of the total number of transactions the applicant expects the secondhand business to complete in the next calendar year.
6. Whether the applicant or any other person who helps own, manage or operate the secondhand business ever has been engaged in a similar business; whether any permit similar to the one the applicant seeks pursuant to this chapter ever has been issued to the applicant or any person who helps own, manage or operate the secondhand business; whether any such permit so issued has ever been suspended or revoked.
7. The past five years of employment history of the applicant.
8. A description of the property interest held by any person or entity with an interest in the applicant’s secondhand business.
9. The name, address and phone number of each person or entity who has loaned money or other property to the applicant for any purpose related to the applicant’s secondhand business.
10. A list of the businesses in which the applicant has an interest. A person need not disclose stock ownership in publicly traded corporations if the person owns less than five percent of the publicly traded corporation’s outstanding shares.
11. Any criminal arrest or conviction the applicant has had in the past 15 years. The applicant may be required to disclose where, when, and the nature of any arrest or conviction.
12. Such other information that the chief of police may reasonably and lawfully require, including the fingerprints and a photograph of the applicant or any other person who will help own, manage or operate the secondhand business.
C. The city may require and/or perform a criminal background check for the applicant as well as any other person who will own, manage or operate the secondhand business.
D. The application form may require all secondhand dealers to supply the following information regarding any person who helps own, manage or operate the secondhand business (occasional dealers are generally exempt from this requirement):
1. The name, address, phone number, Social Security number, date of birth and principal occupation.
2. The past five years of employment history.
3. Any criminal arrest or conviction that any person who helps own, manage or operate the secondhand business has had in the past 15 years. The interested persons may be required to disclose where, when and the nature of any arrest or conviction.
4. A list of businesses in which the person(s) has/have an interest. A person need not disclose stock ownership in publicly traded corporations if the person owns less than five percent of the publicly traded corporation’s outstanding shares.
E. The applicant shall complete the relevant portions of the application form and return it to the city. The chief of police shall be responsible for reviewing the application. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.080 Issuance, renewal or revocation of permit.
A. The chief of police shall deny an application for issuance or renewal of a permit or revoke an issued permit if the chief of police has probable cause to believe any of the following conditions exist:
1. The applicant, or any person who will help own, manage or operate the secondhand business, has owned or operated a secondhand business regulated under this chapter or any substantially similar ordinance and, within the five years prior to the application date:
a. Has had a secondhand business permit revoked for a reason that would be grounds for a denial or revocation pursuant to this chapter; or
b. The secondhand business has been found to constitute a public nuisance.
2. The applicant, or any person who will help own, manage or operate the secondhand business, has been convicted of a felony or any crime involving a false statement or dishonesty within 15 years prior to the application date.
3. The applicant has:
a. Knowingly made a false statement in the application;
b. Knowingly omitted information requested to be disclosed in the application; or
c. Completed the application with reckless disregard for the truth or accuracy of the statements made therein.
4. A lawful inspection of the secondhand business premises by the chief of police has been unjustifiably refused by a person who helps own, manage or operate the business.
5. The secondhand business, the applicant or any person who will help own, manage or operate the secondhand business has more than 10 violations of this chapter, the Newberg Municipal Code, any state or federal law, or any combination thereof within a two-year period, including the two years prior to the application date.
6. There is clear and convincing evidence of substantially more criminal activity within 500 feet of the secondhand business as compared to other similar businesses located in the city.
B. Notwithstanding the requirements of subsection (A) of this section, the chief of police may grant or not revoke a secondhand dealer permit despite grounds for denial or revocation if the chief of police concludes that the applicant has established more likely than not that the basis for denial or revocation:
1. Is unlikely to recur;
2. Is remote in time; or
3. Is not reasonably related to the purpose of this chapter.
C. If the chief of police approves an application for a secondhand dealer permit or application for renewal of a secondhand dealer permit, a permit shall be issued in the name of the secondhand business for the location specified by the applicant in the application form. The permit shall be nontransferable and valid for one year from the date of issue. The permit shall be clearly displayed at the secondhand business in a manner readily visible to the business’ customers.
D. If the chief of police denies an application for a secondhand dealer permit or application for renewal of a secondhand dealer permit or orders the revocation of an issued secondhand dealer permit, the applicant may appeal to the city manager. The city manager may accept or reject the appeal, waive any requirements imposed, or refer the matter to the city council. The applicant may further appeal the decision of the city manager to the city council. All appeals must be made by submitting a formal request to the city manager, together with a nonrefundable processing fee as established by city council resolution.
E. Any appeal of a decision must be made within 15 days of the decision together with the processing fee. If an appeal is not filed timely, the decision becomes final. The decision of the city council is final. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.090 Change of place of business.
A secondhand dealer permit is valid only at the location printed on the permit. Whenever a secondhand business changes its location within the city, the business shall give written notice to the chief of police and shall surrender its current secondhand dealer permit for cancellation. The newly issued permit shall be valid only for the balance of the term remaining under the old permit. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.100 Dealer recordkeeping.
A. The chief of police shall design a purchase report form and make copies available to all secondhand dealers. These forms, or any other substantially similar form approved by the chief of police, shall be utilized to record purchases of regulated property by secondhand dealers. The form may request any information reasonably calculated to help the chief of police identify the purchaser, the seller or the property associated with the purchase of regulated property.
B. Whenever a secondhand dealer purchases regulated property for business purposes:
1. The dealer shall obtain and make a copy of acceptable identification from the seller along with the seller’s current residence address;
2. The dealer shall fill out a purchase report form in all relevant aspects at the time of the purchase. A purchase report form required to be filled out by this section shall be filled out in legible English. The seller shall sign his or her name on the filled out form; and
3. The dealer shall either:
a. Photograph the seller of the regulated property. The photograph shall show the face and shoulders of the seller. The seller shall not be photographed wearing any head covering, dark glasses or similar object that obscures the seller’s facial features. Untinted eyeglasses may be worn by the seller when photographed; or
b. Place the print (identifiable) of the seller’s right thumb (left if right unavailable) in the designated area of the purchase report form. If the seller cannot provide a thumbprint, the secondhand dealer shall note the reason on the purchase report form. Thumbprints may be produced using a digital format with prior approval of the process from the chief of police.
C. Whenever a secondhand dealer purchases regulated property for business purposes while at or near the premises of the secondhand business:
1. The dealer shall obtain and make a copy of acceptable identification from the seller along with the seller’s current residence address; and
2. The dealer shall fill out a purchase report form in all relevant aspects at the time of the purchase. A purchase report form required to be filled out by this section shall be filled out in legible English. The seller shall sign his or her name on the filled-out form. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.110 Regulated property sale limitations.
A. A dealer is not required to obtain the seller’s identification, photograph the seller, record the seller’s thumbprint, or have the seller complete the declaration of proof of ownership if the dealer complies with the remaining requirements of this chapter and when:
1. The item is acquired through consignment by a dealer from a person who lives more than 100 miles from the City of Newberg and the consigned property is mailed, shipped, or sent by courier to the dealer.
2. The item is acquired during a trade show. All items acquired during a trade show by a dealer must be reported. At the time of the transaction, the dealer must enter on a transaction report a complete, intelligible and accurate description of the regulated property of sufficient detail to distinguish like objects one from the other into a transaction record. The dealer must also record the name and date of the event and the address of the venue in the name, date, and address fields of the transaction report form. Items acquired during a trade show may be sold or traded during the trade show without being held. Items still in a dealer’s possession at the end of the show will be subject to the hold period requirement in effect for that dealer’s acquisitions of regulated property.
3. The item is acquired from a business whose acquisitions of regulated property consist exclusively of donated items and/or purchases from a 501(c)(3) organization. The dealer must still complete a transaction report form and the date of acquisition.
4. The item is acquired through an Internet transaction. The dealer must record on the transaction report the seller’s email address or seller’s identification, the name of the Internet website that listed the item, and the date of the acquisition.
5. The item is acquired by the dealer from a yard sale, garage sale, estate sale or swap meet. The dealer must record on the transaction report the physical address of the sale location and the date of the acquisition.
Items acquired under this subsection (A) must be held in compliance with the hold period requirement in effect for the dealer’s other acquisitions of regulated property. The hold period begins the day the acquisition is reported to the Newberg-Dundee police department.
B. A dealer is not required to obtain the seller’s identification, photograph the seller, record the seller’s thumbprint, or have the seller complete the declaration of proof of ownership or hold the item if the dealer complies with the remaining requirements and if:
1. The item is used, regulated property acquired from a licensed business that has already entered the acquisition of that item into the record reporting system designated by the chief of police:
a. The name and location address of the secondhand business or pawnbroker into the name and address fields;
b. The date of the acquisition and the original transaction report number, receipt number or item number assigned in the original transaction record.
2. The item is used, regulated property acquired from a licensed business that is not subject to this chapter or would not be if the business were located in the City of Newberg. The dealer must keep a receipt for the item from the licensed business that includes the licensed business’ name and a description of the item. The receipt must be retained at the dealer’s business location for one year or until the item is sold, whichever is longer. The dealer must record on the transaction report the name and location address of the business into the name and address fields of the transaction report form, and the date of the acquisition.
C. Every article of regulated property purchased by a secondhand dealer and required to be recorded on a purchase report form shall be assigned a unique number, letter, symbol or other identification mark. This unique mark shall appear both on the purchase report form and, while the article is possessed by the secondhand dealer, on the article itself. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.120 Reporting transactions.
A. Secondhand dealers shall communicate the information from each purchase report form to the Newberg-Dundee police department within three days of the date the transaction recorded on the purchase report form occurred. The entire purchase report form is subject to public disclosure pursuant to the Oregon Public Records Law.
B. The chief of police may designate the format for the transfer of information from purchase report forms and may direct that it be communicated by means of an automated electronic reporting system.
C. Only communications containing complete information shall be deemed to comply with this section.
D. In the event that the automated electronic reporting system becomes inoperable, a secondhand dealer’s computer system becomes inoperable or other event that makes reporting within the time allowed by subsection (A) of this section impossible, the secondhand dealer shall immediately report the occurrence of such event to the chief of police. The chief of police may suspend the reporting requirements of subsection (A) of this section for a reasonable period until electronic reporting can resume. Once the chief of police determines that reporting can resume, secondhand dealers must, within 12 hours, input and transmit the information required under subsection (A) of this section for all purchases made during any period reporting was suspended by the chief of police using the approved automated electronic reporting system.
E. If, after establishing the format and requirements for the transmission of information from purchase report forms, the chief of police alters the required format, secondhand dealers will be given at least 60 days to comply with the new format requirements. If unable to implement the reporting system before the deadline, a secondhand dealer must submit a written request for additional time to the chief of police before the deadline. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.130 Holding periods.
A. A copy of every purchase report form filled out and every photograph or thumbprint taken as required by this chapter shall be kept on the premises of the secondhand business during normal business hours for at least three years from the date of purchase. The report form and the photograph or thumbprint shall be subject to inspection by the chief of police pursuant to this section.
B. All regulated property purchased by a secondhand dealer and required to be recorded on a purchase report form shall be held by the dealer for at least 25 days from the date of purchase unless otherwise specified. The dealer shall maintain the property in substantially the same form as when purchased and shall not alter, exchange, or commingle the property. During the holding period, the regulated property shall be kept on the business premises at all times and shall be subject to inspection by the chief of police.
C. Regulated property not subject to a holding period specifically includes: DVDs, Blu-ray discs, video game disks or cartridges, music CDs, nonpower automotive, yard and garden and other hand tools such as sockets, hammers, wrenches and the like that are not sold in complete sets and are devoid of any serial numbers or identifiable markings applied by the manufacturer or previous owner; precious scrap metal, gold bullion bars (0.995 fine or better); silver bullion bars (0.995 fine or better); all tokens, coins, or money, whether commemorative or an actual medium of exchange adopted by a domestic or foreign government as part of its currency whose intrinsic, market or collector value is greater than the apparent legal or face value, and firearms subject to federal recordkeeping under Title 18 USC Sections 921 and 923.
D. All regulated property that has an altered, obstructed or removed serial number, inscription or other identifying mark and that is purchased by a secondhand dealer and is required to be recorded on a purchase report form shall be held by the secondhand dealer for at least 90 days from the date of purchase. The property shall be maintained in the same manner and place as required under subsection (B) of this section.
E. The chief of police may give written notice to a secondhand dealer holding regulated property that the chief of police has reasonable grounds to believe more likely than not a specific item of regulated property is associated with criminal conduct. The secondhand business holding the regulated property shall then continue to hold the property specified in the notice in the same manner and place as required under subsection (B) of this section until released by the chief of police.
F. The holding period for any item of regulated property shall not exceed 180 days from the date of purchase.
G. If unreasonable hardship will result from holding regulated property as required under this section, the secondhand dealer may request in writing that the chief of police shorten the length of the holding period. The request should identify the property to which the request relates and state the reason extreme hardship will result if the holding period is not shortened. The chief of police may grant a request to shorten the length of the holding period if the secondhand dealer establishes clear and convincing grounds to believe that undue hardship will occur if the request is not granted. If the chief of police decides relief from the holding period is appropriate, the chief of police shall provide the secondhand dealer who requested relief with written authorization to sell, transfer or otherwise dispose of the regulated property. The authorization shall be effective only upon delivery of the written authorization to the secondhand dealer.
H. The holding requirements under subsections (B) and (D) of this section will not apply to any regulated property that is purchased from a secondhand dealer and subsequently returned to that same dealer, so long as the dealer can confirm the prior purchase through sales receipt or other method of recordkeeping and one complete holding period has elapsed. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.140 Inspection of property and records.
A. Whenever necessary to make an inspection to enforce the provisions of this chapter, or when the chief of police has reasonable grounds to believe more likely than not that a specific item of regulated property held by a secondhand dealer is associated with criminal conduct, the chief of police may enter the premises of the secondhand business at any reasonable time; provided, that the premises are occupied at the time of entry and the chief of police presents proper official identification at or near the time of demanding entry. If entry is refused, the chief of police shall have recourse to every remedy provided by law to secure entry, including an administrative search warrant or a criminal search warrant.
B. Authority to inspect secondhand business premises under this chapter is in addition to and not in limitation of the authority the city or the chief of police would otherwise have to enter the business premises.
C. Once allowed to enter the premises of the secondhand business, the chief of police may inspect property kept there. The chief of police may also inspect the business records associated with regulated property and perform any duty imposed upon the city or the chief of police by this chapter. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]
5.40.150 Penalty.
A. Violation of a provision of this chapter by a person constitutes a Class 1 civil infraction to be processed in accordance with the provisions of NMC 2.30.170 through 2.30.250.
B. Violation of a provision of this chapter by a person who helps own, manage or operate a secondhand business shall be grounds to revoke any secondhand dealer permit issued to that secondhand business.
C. Violation of a provision of this chapter by a person shall constitute a public nuisance subject to abatement in accordance with the provisions of NMC 8.15.170 through 8.15.260.
D. A finding that a person has committed a violation of this chapter shall not act to relieve the person from the provisions of this chapter.
E. The penalties imposed by this section for violation of this chapter are in addition to and not in limitation of any other action or claim available to the city or any other governmental jurisdiction.
F. Violation of NMC 5.40.040 is punishable by a fine of not more than $500.00 per item sold or attempted to be sold without the consent of the item’s owner. [Ord. 2735 § 1 (Exh. A), 10-17-2011.]