Chapter 5.32
PAWNBROKERS, JUNK AND
SECONDHAND DEALERS
Sections:
5.32.020 License requirements.
5.32.050 Record of transactions.
5.32.080 Pawnbrokers—Removal of property from place of business.
5.32.090 Pawnbrokers—Interest.
5.32.100 Pawnbrokers—Sale of property.
5.32.110 Acts of employees—Deemed act of dealer.
5.32.120 Secondhand vehicle dealers—License required—When—To keep records.
5.32.140 Transactions to avoid chapter provisions unlawful.
5.32.010 Definitions.
Unless the context clearly requires otherwise, the following definitions apply to this chapter and other city ordinances which now or hereinafter refer to the terms set forth below:
A. “Melted metals” means metals derived from metal junk or precious metals that have been reduced to a melted state from other than ore or ingots which are produced from ore that has not previously been processed.
B. “Metal junk” means any metal that has previously been milled, shaped, stamped, or forged and that is no longer useful in its original form, except precious metals.
C. “Nonmetal junk” means any nonmetal, commonly described item that is worn out, or has outlasted its usefulness as intended in its original form except nonmetal junk does not include an item made in a former period which has enhanced value because of its age.
D. “Pawnbroker” means every person engaged, in whole or in part, in the business of loaning money on the security of pledges, of personal property, or deposits or conditional sales of personal property, or the purchase or sale of personal property.
E. “Precious metals” means gold, silver, and platinum.
F. “Secondhand dealer” means every person engaged in whole or in part in the business of purchasing, selling, trading, consignment selling or otherwise transferring for value, secondhand property including metal junk, melted metals, precious metals, whether or not the person maintains a fixed place of business within the state. “Secondhand dealer” also includes persons or entities conducting business at flea markets or swap meets more than three times a year.
G. “Secondhand property” means any item of personal property offered for sale that is not new, including metals in any form; provided, however, that “secondhand property” does not include (1) postage stamps, (2) coins that are legal tender, (3) bullion in the form of fabricated hallmarked bars, (4) clothing of a resale value of seventy-five dollars or less, except furs, and (5) used books of a resale value of five hundred dollars or less per transaction.
H. “Transaction” means a pledge, or the purchase of, or consignment of, or the trade of any item of personal property by a pawnbroker or a secondhand dealer from a member of the general public.
I. “Term of the loan” as defined in this chapter shall be set for a period of thirty days to include the date of the loan. (Ord. 2407-99 § 1, 1999: Ord. 1854-92 § 1, 1992; Ord. 1050-84 § 1, 1984)
5.32.020 License requirements.
A. License Required. Except as provided otherwise in Section 5.32.030, no person shall engage in the business of dealing in metal or nonmetal junk; secondhand property, or engage in the business of a pawnbroker in the city, without first obtaining a license therefor.
B. Requirements in Addition to General Provisions. In addition to the general requirements, there is the additional requirement that the applicant(s) or manager(s) or owner(s) of the applicant have not been convicted of a crime of moral turpitude or intent to defraud within ten years from the date of application, and, furthermore, have not within ten years from the date of application been released from a penal institution or from active supervision or parole as a result of the conviction of any of the aforementioned crimes.
C. Fixed Place of Business. No person may operate as a pawnbroker or secondhand dealer unless the person maintains a fixed place of business in the city. No person shall engage in any such business in more than one place, or maintain more than one shop or store for the same, by virtue of one license.
D. The annual license fee for pawnbrokers shall be the sum of two hundred fifty dollars. The annual license fee for secondhand dealers shall be the sum of fifty dollars. (Ord. 1050-84 § 2, 1984)
5.32.030 Exceptions.
Except as provided in Section 5.32.120, the provisions of this chapter do not apply to transactions conducted by the following:
1. Motor vehicle dealers licensed under Chapter 46.70 RCW;
2. Motor vehicle wreckers or hulk haulers licensed under Chapter 46.79 or 46.80 RCW;
3. Persons giving an allowance for the trade-in or exchange of secondhand property on the purchase of other merchandise of the same kind of greater value; and
4. Persons in the business of buying empty food and beverage containers or nonmetal junk. (Ord. 1050-84 § 3, 1984)
5.32.040 Records—Content.
A. Every pawnbroker and secondhand dealer doing business in the city shall maintain wherever that business is conducted a record in which shall be legibly written in the English language, at the time of each transaction the following information:
1. The signature of the person with whom the transaction is made;
2. The date and time of the transaction;
3. The name of the person or employee or the identification number of the person or employee conducting the transaction, as required by the chief of police;
4. The name, date of birth, sex, height, weight, race, and address and telephone number of the person with whom the transaction is made;
5. A complete description of the property pledged, bought or consigned, including the brand name, serial number, model number or name, any initials or engravings, size, patterns, and color or stone or stones, and in the case of firearms, the caliber, barrel length, type of action, and whether it is a pistol, rifle, or shotgun;
6. The price paid or the amount loaned;
7. The type and identifying number of identification used by the person with whom the transaction is made, which shall consist of a valid driver’s license or identification card issued by any state or two pieces of identification issued by a governmental agency, one of which shall be descriptive of the person identified. At all times, one piece of current government issued picture identification will be required; and
8. The nature of the transaction, a number identifying the transaction, the store identification as designated by the applicable law enforcement agency, or the name and address of the business and the name of the person or employee, conducting the transaction and the location of the property.
B. This record shall at all times during the ordinary hours of business, or at reasonable times if ordinary hours of business are not kept, be open to the inspection of any commissioned law enforcement officer of the state or any of its political subdivisions who is accompanied by a representative of the police department, and shall be maintained wherever that business is conducted for three years following the date of the transaction. (Ord. 1854-92 § 2, 1992; Ord. 1050-84 § 4, 1984)
5.32.050 Record of transactions.
A. Every pawnbroker or secondhand dealer in the city, or their employees, shall keep an accurate record in which shall be legibly written at the time of each transaction an accurate description of the goods, articles or things purchased or pawned, the time of purchasing or pledging the same, the amount of money paid therefor or loaned thereon, the rate of interest to be paid on such loan, the time within which said pawn is to be redeemed, and the name, age and place of residence, with the street number of the house of the person selling or pledging such article or thing. When any jewelry, or gold or silver articles of any kind are sold or pledged to any pawnbroker or secondhand dealer he shall note in such records all letters or marks inscribed thereon.
B. Upon request, every pawnbroker and secondhand dealer doing business in the city shall furnish a full, true and correct transcript of the record of all transactions conducted on the preceding day. These transactions shall be recorded on such forms as may be provided and in such format as may be required by the chief of police within a specified time not less than twenty-four hours. This information may be transmitted to the applicable law enforcement agency electronically by facsimile transmission, or by modem or similar device, or by delivery of computer disk subject to the requirements of and approval by, the chief of police. (Ord. 1854-92 § 3, 1992; Ord. 1050-84 § 5, 1984)
5.32.060 Stolen goods.
A. Following notification from a law agency that an item of property has been reported as stolen, the pawnbroker or secondhand dealer shall hold that property intact and safe from alteration, damage, or commingling. The pawnbroker or secondhand dealer shall place an identifying tag or other suitable identification upon the property so held. Property held shall not be released for one hundred twenty days from the date of police notification unless released by written consent of the applicable law enforcement agency or by order of a court of competent jurisdiction. In cases where the applicable law enforcement agency has placed a verbal hold on an item, that agency must then give written notice within ten business days. If such written notice is not received within that time, the hold order will cease. The pawnbroker or secondhand dealer shall give a twenty-day written notice before the expiration of the one hundred twenty-day holding period to the applicable law enforcement agency about the stolen property. If notice is not given within the required twenty days, then the hold on the property shall continue for an additional one hundred twenty days. The applicable law enforcement agency may renew the holding period for additional one hundred twenty-day periods as necessary. After the receipt of notification from a pawnbroker or secondhand dealer, if an additional holding period is required, the applicable law enforcement agency shall give the pawnbroker or secondhand dealer written notice, prior to the expiration of the existing hold order. A law enforcement agency shall not place on hold any item of personal property unless that agency reasonably suspects that the item of personal property is a lost or stolen item. Any hold that is placed on an item will be removed as soon as practicable after the item on hold is determined not to be stolen or lost.
B. If a pawnbroker or secondhand dealer has good cause to believe that any property in his or her possession has been previously lost or stolen, the pawnbroker or secondhand dealer shall promptly report that fact to the applicable chief of police or county’s law enforcement officer together with the name of the owner, if known, and the date when, and the name of the person from whom it was received. (Ord. 1854-92 § 4, 1992; Ord. 1050-84 § 6, 1984)
5.32.070 Consignment.
A. Property bought or received on consignment by any secondhand dealer with a permanent place of business in the city shall not be removed from that place of business, except consigned property returned to the owner, within thirty days after the receipt of the property. Property shall at all times during the ordinary hours of business be open to inspection to any commissioned law enforcement officer of the state or any of its political subdivisions.
B. Property bought or received on consignment in the city by a secondhand dealer without a permanent place of business in the city shall be held within the city, except consigned property returned to the owner within thirty days after receipt of the property. The property shall be available for inspection at reasonable times by any commissioned law enforcement officer of the state or any of its subdivisions. (Ord. 1854-92 § 5, 1992; Ord. 1050-84 § 7, 1984)
5.32.080 Pawnbrokers—Removal of property from place of business.
Property bought or received in pledge by any pawnbroker shall not be removed from that place of business, except when redeemed by or returned to the owner, within thirty days after the receipt of the property. Property shall at all times during the ordinary hours of business be open to inspection to any commissioned law enforcement officer of the state or any of its political subdivisions. (Ord. 1854-92 § 6, 1992; Ord. 1050-84 § 8, 1984)
5.32.090 Pawnbrokers—Interest.
A. All pawnbrokers are authorized to charge and receive interest and other fees at the following rates for money loaned on the security of personal property actually received in pledge. The interest charged shall not exceed the rules set forth in RCW 19.60.060 as it now reads or is hereinafter amended.
B. The fee for the preparation of documents, pledges, or reports required under the laws of the United States of America, the state of Washington, or the counties, cities, towns, or other political subdivisions thereof, shall not exceed the amounts set forth in RCW 19.60.060 as it now reads or is hereinafter amended.
C. Fees as set forth in subsections A and B above may be charged only one time during the term of a pledge. A copy of the fees as set forth in RCW 19.60.060 as it now reads or is hereinafter amended, set in twelve point type or larger, shall be posted prominently in each premises subject to this chapter. (Ord. 1050-84 § 9, 1984)
5.32.100 Pawnbrokers—Sale of property.
A. A pawnbroker shall not sell any property received in pledge until both the term of the loan and a grace period of a minimum of sixty days has expired. However, if a pledged article is not redeemed within the ninety-day period of both the term of the loan and the grace period the pawnbroker shall have all rights, title, and interest of that item of personal property. The pawnbroker shall not be required to account to the pledgor for the proceeds received from the disposition of that item. Any provision of law relating to foreclosures and the subsequent sale of forfeited pledged items, shall not be applicable to any pledge as defined under this chapter, the title to which is transferred in accordance with this section.
B. Every transaction entered into by a pawnbroker shall be evidenced by a written document, a copy of which shall be furnished to the pledgor. The document shall set forth the term of the loan, the date on which the loan is due and payable, and shall inform the pledgor of the pledgor’s right to redeem the pledge within sixty days after the expiration of the loan term. (Ord. 1854-92 § 7, 1992; Ord. 1050-84 § 10, 1984)
5.32.110 Acts of employees—Deemed act of dealer.
The act of any servant or employee of any such dealer, shall be deemed the act of such dealer. (Ord. 1050-84 § 11, 1984)
5.32.120 Secondhand vehicle dealers—License required—When—To keep records.
No person, firm, corporation, co-partnership or any other organization of any kind shall engage in the business or occupation of buying, selling, trading or in any manner handling, secondhand automobiles, trucks, tractors, motorcycles or similar vehicles for the purpose of dismantling or breaking up the same into parts without the payment of a license fee to the city of five dollars per year, and all persons, firms, corporations or any other organizations engaged in handling secondhand automobiles, trucks, motorcycles or similar vehicles for the purpose of dismantling or breaking up the same into parts shall keep an accurate account of all such motor vehicles handled, traded, purchased or sold, together with the engine number or the identification mark on such motor vehicle, the name and address of the person or persons, firm, corporation or other organization selling the same or buying the same, and such books of account shall at all times be kept open to the inspection of the police department; provided, that dealers in new motor vehicles who take used motor vehicles in exchange shall not be required to keep such records of sales. (Ord. 1050-84 § 12, 1984)
5.32.130 Penalties.
It is a gross misdemeanor under Chapter 10.04 of this code for:
1. Any person to remove, alter or obliterate any manufacturer’s make, model or serial number, personal identification number or identifying marks engraved or etched upon an item of personal property that was purchased, consigned or received in pledge. In addition an item shall not be accepted for pledge or a secondhand purchase where the manufacturer’s make, models or serial number, personal identification number or identification marks engraved or etched upon an item of personal property has been removed, altered or obliterated;
2. Any person to knowingly make, cause, or allow to be made any false entry or misstatement of any material matter in any book, record or writing required to be kept under this chapter;
3. Any pawnbroker or secondhand dealer to receive any property from any person under the age of eighteen years, any person under the influence of intoxicating liquor or drugs, or any person known to the pawnbroker or secondhand dealer as having been convicted of burglary, robbery, theft or possession of or receiving stolen property within the past ten years whether the person is acting on his or her own behalf or as the agent of another; or
4. Any person to violate knowingly any other provision of this chapter or amendments thereto. (Ord. 1854-92 § 8, 1992; Ord. 1050-84 § 13, 1984)
5.32.140 Transactions to avoid chapter provisions unlawful.
A purchase of personal property shall not be made on the condition of selling it back at a stipulated time and price greater than the purchase price, for the purpose of avoiding the interest and fee restrictions of this chapter. (Ord. 1854-92 § 9, 1992)