Chapter 12.15 PAWNBROKERS AND SECONDHAND DEALERS

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise. Terms not defined here are defined according to FWRC 1.05.020.

“Identified as stolen or pawned without authorization” means any property which has been reported by the rightful owner to a law enforcement authority as missing or stolen.

“Melted metals” means metals derived from a 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.

“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.

“Nonmetal junk” means any nonmetal, commonly discarded 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.

“Pawnbroker” means every person who takes or receives by way of pledge, pawn or exchange goods, wares, or merchandise of any kind of personal property for the repayment of security of any money loaned thereon, or to loan money on deposit of personal property, or who makes public display of any sign indicating that he has money to loan on personal property on deposit or pledge.

“Pawnshop” means every place at which a pawnbroker business is being conducted.

“Precious metals” means gold, silver, and platinum.

“Rightful owner,” unless otherwise proven, means the person having possession of the property prior to the theft or removal without authorization.

“Secondhand dealer” means every person who, as a business, engages in whole or in part in the purchase, sale, barter, sale on consignment, or otherwise exchanges for value secondhand goods including metal junk and melted metals, whether or not the person maintains a fixed place of business. “Secondhand dealer” also includes persons or entities conducting business at locations within the city, including but not limited to flea markets, swap meets, hotels, gas stations, tattoo parlors, and taverns, and conducting business more than three times per year.

“Secondhand goods” means any item of personal property offered by sale which is not new, including metals in any form, except postage stamps, coins that are legal tender, bullion in the form of fabricated hallmarked bars, used books, and clothing of resale value of $75.00 or less, except furs. Secondhand goods do not include used, remanufactured, or junk motor vehicles or boats.

“Secondhand precious metal dealer” means every person who, as a business, engages in whole or in part in the purchase, sale, barter, sale on consignment, or otherwise exchanges for value secondhand property that is a precious metal, whether or not the person or entity maintains a permanent or fixed place of business. “Secondhand precious metal dealer” includes persons or entities conducting business at locations within the city, including but not limited to flea markets, swap meets, hotels, gas stations, tattoo parlors and taverns, and conducting business more than three times per year. The terms “precious metal” and “secondhand” for purposes of transactions by a secondhand precious metal dealer do not include: (1) gold, silver, or platinum coins, or other precious metal coins, that are legal tender, or precious metal coins that have numismatic or precious metal value; (2) gold, silver, platinum, or other precious metal bullion; or (3) gold, silver, platinum, or other precious metal dust, flakes, or nuggets.

“Temporary secondhand dealer license” and “secondhand precious metal dealer license” mean a license that will be issued by the city clerk when the secondhand dealer or secondhand precious metals dealer intends to conduct business for 90 days or less at one location.

(Ord. No. 11-689, § 1, 4-19-11; Ord. No. 09-600, § 6, 1-6-09; Ord. No. 90-57, §§ 1, 15(A)(12)(a), (b), 5-1-90. Code 2001 § 9-206.)

Article II. License

12.15.140 Required.

(1) It is unlawful for any person to engage in the business of pawnbroker, secondhand dealer, or secondhand precious metal dealer without first obtaining a license pursuant to the provisions of this chapter. Every license granted under this title shall be posted in a conspicuous place in the place of business of the licensee.

(2) It is unlawful for any person to engage in secondhand dealing for 90 days or less at one location without first obtaining a temporary secondhand dealer license from the city clerk.

(Ord. No. 11-689, § 2, 4-19-11; Ord. No. 90-57, § 2, 5-1-90. Code 2001 § 9-241.)

12.15.150 Application.

All applications for issuance or renewal of a pawnbroker’s, secondhand dealer’s or secondhand precious metal dealer’s license shall state the true name of the applicant, who shall be not less than 18 years of age, the names, addresses and telephone numbers of all persons having financial, proprietary or other interest in such pawnshop or secondhand shop, and a list of any criminal convictions for such persons during the past 10 years.

(Ord. No. 11-689, § 3, 4-19-11; Ord. No. 09-599, § 57, 1-6-09; Ord. No. 90-57, § 3(A), 5-1-90. Code 2001 § 9-242.)

12.15.160 Background investigation.

The city clerk shall refer the application to the law enforcement authority for the city which shall determine the accuracy of the information contained in the application and conduct a criminal history background investigation of the applicant. Upon completion, the law enforcement authority for the city shall forward the results of the investigation, together with a recommendation for approval or denial, to the city clerk.

(Ord. No. 90-57, § 3(B), 5-1-90. Code 2001 § 9-243.)

12.15.190 Expiration – Renewal.

Licenses issued pursuant to this article shall expire on December 31st. License renewal applications and license fees shall be due and payable on December 31st preceding the year for which the license is issued. Fees becoming due for less than one year shall be prorated on a quarterly basis.

(Ord. No. 90-57, § 5(B), 5-1-90. Code 2001 § 9-246.)

12.15.200 Late penalty.

A late penalty shall be charged on all applications for renewal of a license received later than seven working days after the expiration date of such license. The late penalty shall be on file in the city clerk’s office.

(Ord. No. 90-57, § 5(C), 5-1-90. Code 2001 § 9-247.)

12.15.210 Limitation on pawnbroker’s license.

No pawnbroker’s license shall be issued which would increase the number of holders of such licenses to more than one for every 15,000 of population, according to the last preceding federal census; provided, that this population limitation shall not operate to prohibit the licensing of any pawnbroker duly licensed prior to May 1, 1990.

(Ord. No. 90-57, § 6, 5-1-90. Code 2001 § 9-248.)

Article III. Regulations

12.15.230 Information required to be entered into database and into a business book.

(1) Database. Every pawnbroker, secondhand dealer, and secondhand precious metal dealer shall enter within 24 hours any and all requested information into the database prescribed by the law enforcement agency.

(2) Business book. Every pawnbroker, secondhand dealer, and secondhand precious metal dealer shall maintain at his or her place of business a book in which he or she shall at the time of such loan, purchase or sale, enter, in the English language, written in ink, the following information:

(a) The date of the transaction;

(b) The name of the person conducting the transaction and making the entries required in this chapter;

(c) The printed name, age, date of birth, height, weight, address, telephone number, the general description of the dress, complexion, color of hair and facial appearance of the person with whom the transaction is had, including the identification which the customer shall present to verify his or her identity, and the account or other number of such identification;

(d) The signature of the person with whom the transaction is made, a photocopy of both sides of an official picture identification card and the right thumb print;

(e) The name, address and telephone number of the owner of the property bought or received in pledge;

(f) The address of the place from which the property bought or received in pledge was last removed;

(g) A description of the property bought or received in pledge, which shall include the name of the maker of such property or the manufacturer thereof and the serial number, if the article has such marks on it, or any other inscriptive or identifying marks; provided, that when the article received is furniture or the contents of any house or room actually inspected on the premises where the sale is made, a general description of the property shall be sufficient;

(h) The price paid or the amount loaned;

(i) The number of any pawn ticket issued therefor; and

(j) Comply with the provisions of RCW 19.60.020(1).

(Ord. No. 14-761, § 1, 3-18-14; Ord. No. 11-689, § 4, 4-19-11; Ord. No. 90-57, § 8, 5-1-90. Code 2001 § 9-261.)

State law reference: Records and reporting requirements, RCW 19.60.020.

12.15.240 Records and articles to be available for inspection.

(1) All books and other records of any pawnbroker, secondhand dealer, or secondhand precious metal dealer relating to the purchase, pledge, exchange or receipt of any goods, wares, merchandise or other articles or things of value shall at all times be open for inspection by members of the law enforcement authority for the city and shall be kept for three years. All articles and things received, purchased or left in pledge with the pawnbroker or secondhand dealer shall at all times be open to like inspection.

(2) Upon request from law enforcement, every pawnbroker, secondhand dealer, and secondhand precious metal 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 into the database prescribed by law enforcement within 24 hours.

(Ord. No. 11-689, § 5, 4-19-11; Ord. No. 90-57, § 9, 5-1-90. Code 2001 § 9-262.)

State law reference: Records to be kept for three years, RCW 19.60.020(2).

12.15.245 Police list.

If the police chief has compiled and published a list of persons who have been convicted of any crime involving theft, then the pawnbroker, secondhand dealer, and secondhand precious metal dealer shall utilize such a list for any transaction involving property other than property consisting of a precious metal as required by the police chief.

(Ord. No. 11-689, § 6, 4-19-11.)

12.15.250 Seller or consignee to give true name and address.

Anyone who pledges, sells or consigns any property to or with a pawnbroker, secondhand dealer, or secondhand precious metal dealer shall sign the records required to be kept by such pawnbroker or secondhand dealer with his or her true name and shall include his or her correct address and telephone number.

(Ord. No. 11-689, § 7, 4-19-11; Ord. No. 90-57, § 10, 5-1-90. Code 2001 § 9-263.)

12.15.260 Transcript to be furnished.

It is the duty of every pawnbroker, secondhand dealer, and secondhand precious metal dealer to furnish on forms provided by the city to the law enforcement authority for the city at the close of every business week a full, true and correct transcript of the record of all transactions occurring during the preceding week.

(Ord. No. 11-689, § 8, 4-19-11; Ord. No. 90-57, § 11(A), 5-1-90. Code 2001 § 9-264.)

State law reference: Forms, RCW 19.60.040(1).

12.15.265 Secondhand precious metal dealer records for hosted home parties.

(1) “Hosted home party” means a gathering of persons at a private residence where a host or hostess has invited friends or other guests into his or her residence where individual person-to-person sales of precious metals occur.

(2) A host or hostess must be the owner, renter, or lessee of the private residence where the hosted home party takes place.

(3) A secondhand precious metal dealer who attends a hosted home party and purchases or sells precious metals from the invited guests must issue a receipt for each item sold or purchased at the hosted home party.

(4) The secondhand precious metal dealer must include on every receipt the following: (a) the name, residential address, telephone number and driver’s license number of the person hosting the home party; (b) the name, residential address, telephone number, and driver’s license number of the person selling the item; (c) the name, residential address, telephone number and driver’s license number of the person purchasing the item; (d) a complete description of the item being sold, including the brand name, serial number, model number or name, any initials or engraving, size, pattern, and color of stone or stones; (e) time and date of the transaction; and (f) the amount and form of any consideration paid for the item.

(5) The secondhand precious metal dealer must make four copies of each transaction receipt: one for the seller, one for the host or hostess, one for the purchaser, and one for local law enforcement. The secondhand precious metal dealer and the host or hostess shall maintain copies of all transaction receipts and records for three years following the date of the precious metal transaction.

(Ord. No. 11-689, § 9, 4-19-11.)

12.15.270 Report of suspected stolen property.

It is the duty of any pawnbroker, secondhand dealer, or secondhand precious metal dealer having good cause to believe any property in his or her possession has been previously lost or stolen, to report such fact to the law enforcement authority for the city immediately, together with the name of the owner, if known, and the date and name of the person from whom the same was received by such pawnbroker, secondhand dealer, or secondhand precious metal dealer.

(Ord. No. 11-689, § 10, 4-19-11; Ord. No. 90-57, § 11(B), 5-1-90. Code 2001 § 9-265.)

State law reference: Duties, RCW 19.60.045.

12.15.280 Authorized rate of interest.

All pawnbrokers are authorized to charge and receive interest at the rates prescribed in RCW 19.60.060 for money loaned on the security of personal property actually received in pledge, and every person who asks for or receives a higher rate of interest or discount on any such loan, or on any actual or pretended sale or redemption of personal property, or who sells any property held for redemption within 90 days after the period of redemption has expired is guilty of a violation of this chapter.

(Ord. No. 90-57, § 12(A), 5-1-90. Code 2001 § 9-266.)

12.15.290 Retention period.

No secondhand dealer or secondhand precious metal dealer shall sell or dispose of any article received or purchased or permit them to be removed from his or her place of business within 30 days after the receipt of such goods has been reported to the law enforcement authority for the city as provided herein, except when the goods have been inspected by the law enforcement authority for the city and they have authorized the secondhand dealer to dispose of such goods within a lesser period of time; provided, that consigned property need only be held for three days prior to sale.

(Ord. No. 11-689, § 11, 4-19-11; Ord. No. 90-57, § 12(B), 5-1-90. Code 2001 § 9-267.)

12.15.300 Hours of operation.

It is unlawful for any pawnbroker, secondhand dealer, or secondhand precious metal dealer to conduct or carry on the business of the pawnbroker, secondhand dealer, or secondhand precious metal dealer, in whole or in part, directly or indirectly, or to open or keep open, his or her place of business for transaction of any business whatsoever therein, between the hours of 8:00 p.m. and 7:00 a.m., except from December 1st to December 24th of each year, when pawnbrokers may remain open until 10:00 p.m.

(Ord. No. 11-689, § 12, 4-19-11; Ord. No. 90-57, § 13, 5-1-90. Code 2001 § 9-268.)

12.15.310 Separate license for separate places of business.

Any person having more than one pawnshop or one place of business where secondhand goods, including precious metals, are bought, sold, traded, bartered or exchanged shall be required to procure a separate license for each and every such place of business.

(Ord. No. 11-689, § 13, 4-19-11; Ord. No. 90-57, § 14, 5-1-90. Code 2001 § 9-269.)

12.15.320 Change of location – Transfer.

Pawnbrokers’, secondhand dealers’ and secondhand precious metal dealers’ licenses shall not be transferable from one person to another, but a licensee may have his or her license transferred to a new location by the city clerk, and the change of address shall be noted on the license, together with the date when the change was made.

(Ord. No. 11-689, § 14, 4-19-11; Ord. No. 90-57, § 14, 5-1-90. Code 2001 § 9-270.)

12.15.330 Prohibited acts – Penalty –Pawnbrokers and secondhand dealers.

RCW 19.60.066 is hereby adopted by reference. It is a gross misdemeanor 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, cosigned, or received in pledge. In addition, an item shall not be accepted for pledge or a secondhand purchase where the manufacturer’s make, model, or serial number, personal identification number, or identifying 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 18 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 10 years whether the person is acting on his/her own behalf or as the agent of another;

(4) Any pawnbroker to engage in the business of cashing or selling checks, drafts, money orders, or other commercial paper serving the same purpose unless the pawnbroker complies with the provisions of chapter 31.45 RCW; or

(5) Any person to violate knowingly any other provision of this chapter.

(Ord. No. 11-689, § 15, 4-19-11.)

State law references: Pawnbrokers, RCW 19.60.061 et seq.; secondhand dealers, RCW 19.60.010 et seq.