Chapter 5.24
PAWNBROKERS AND
SECONDHAND DEALERS
Sections:
5.24.030 Recordkeeping required.
5.24.040 Report to chief of police.
5.24.050 Inspection of records and goods required.
5.24.060 Retention of property – In pledge.
5.24.070 Retention of property – On consignment.
5.24.080 Duties upon notification that property is reported stolen.
5.24.090 License – Required when – Fee – Expiration date – Renewal.
5.24.100 Revocation of license.
5.24.120 Criminal convictions.
5.24.130 Violations deemed gross misdemeanors – Designated.
5.24.140 Miscellaneous violations – Penalty.
5.24.010 Definitions.
The definitions in this section shall apply throughout this chapter, unless the context clearly requires otherwise.
“Loan period” means the period of time from the date the loan is made until the date the loan is paid off, the loan is in default, or the loan is refinanced and new loan documents are issued, including all grace or extenuation period.
“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.
“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 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.
“Precious metals” means gold, silver, and platinum.
“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 per year.
“Secondhand property” means any item of personal property offered for 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 a resale value of $75.00 or less, except furs.
“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. (Ord. 3049 § 1, 2001).
5.24.020 Legislative intent.
The city council intends, by enacting the ordinance codified in this chapter, to provide restrictions that are supplemental to those set forth in Chapter 19.60 RCW. The provisions of this chapter are intended to address circumstances unique to the city of Mount Vernon. It is not the intent of this chapter to reduce or otherwise abrogate the requirements of any applicable state law. (Ord. 3049 § 2, 2001).
5.24.030 Recordkeeping required.
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 of the transaction;
3. The name of the person or employee conducting the transaction;
4. The name, date of birth, sex, height, weight, race, 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 of the business 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 and shall be maintained wherever that business is conducted for three years following the date of the transaction. (Ord. 3049 § 3, 2001).
5.24.040 Report to chief of police.
A. Every pawnbroker or secondhand dealer in the city of Mount Vernon shall, before 5:00 p.m. on each working day, furnish to the chief of police, on such forms as may be provided and in such format as may be required by the chief of police, a full, true, and correct transcript of the record of all transactions conducted on the preceding working day. This information shall be transmitted to the chief of police or his designee by electronic transmission through a modem or similar device, or by delivery of computer disk in such a format that the data can be copied by direct electronic entry into the Mount Vernon police department’s computerized system for identifying and tracing lost, stolen, and sought-after property, subject to the requirements of, and approval by the chief of police; provided, that 10 or fewer written transactions reported within a seven-day period by a pawnbroker or secondhand dealer are exempt from electronic reporting. In such cases written transaction reports will be required; however, no fee will be assessed.
B. 1. Pawnbrokers or secondhand dealers shall report their transactions electronically to the chief of police as required by subsection A of this section commencing on a date 60 days following the effective date of the ordinance codified in this chapter.
2. The police chief may, for good cause shown, grant a pawnbroker or secondhand dealer an extension of the otherwise applicable deadline set forth in subsection (B)(1) of this section to a date not later than April 30, 2001. An extension may only be granted upon application by the pawnbroker or secondhand dealer, upon a showing that the pawnbroker or secondhand dealer is making satisfactory progress toward acquiring computer programs and equipment to make the necessary transmission, and upon agreement by the pawnbroker or secondhand dealer to pay the city a fee of $0.25 per transaction reported after the otherwise applicable deadline to offset the Mount Vernon police department’s costs in converting the data from paper format into electronic form.
The chief of police shall establish the format and requirements for the transmission of data and may restrict the scope of items that are to be electronically reported. A transaction that is reported by electronic transmission under subsection A of this section should not be reported on paper forms unless the chief of police so requests.
C. If, after establishing the format and requirements for the transmission of computerized reports of transactions, the chief of police alters the required format, pawnbrokers and secondhand dealers shall be given at least 30 days to comply with the new format requirements.
D. 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 Mount Vernon chief of police, 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. 3049 § 5, 2001).
5.24.050 Inspection of records and goods required.
Pawnbrokers’ and secondhand dealers’ records, and all goods received, shall at all times during the ordinary hours of business be open to the inspection of the prosecuting attorney, peace officer or other commissioned law enforcement officer of the city. (Ord. 3049 § 7, 2001).
5.24.060 Retention of property – In pledge.
Property bought or received on consignment by any pawnbroker or secondhand dealer shall not be removed from the pawnbroker’s or secondhand dealer’s place of business within 30 days after the receipt of the property, except when redeemed by the owner. 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 the city of Mount Vernon. (Ord. 3049 § 8, 2001).
5.24.070 Retention of property – On consignment.
A. Property bought or received on consignment by a pawnbroker or 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 30 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 the city of Mount Vernon.
B. Property bought or received on consignment by a pawnbroker or secondhand dealer without a permanent place of business in the state shall be held within the city, except consigned property returned to the owner, for 30 days after receipt of the property. The property shall be available within the appropriate jurisdiction for inspection at reasonable times by any commissioned law enforcement officer of the state or the city of Mount Vernon. (Ord. 3049 § 9, 2001).
5.24.080 Duties upon notification that property is reported stolen.
Following notification from a law enforcement 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 120 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 10 business days. If such written notice is not received within that period of time, then the hold order will cease. The pawnbroker or secondhand dealer shall give a 20-day notice before the expiration of the 120-day holding period to the applicable law enforcement agency about the stolen property. If notice is not given within 20 days, then the hold on the property shall continue for an additional 120 days. The applicable law enforcement agency may renew the holding period for an additional 120-day period, 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. (Ord. 3049 § 10, 2001).
5.24.090 License – Required when – Fee – Expiration date – Renewal.
Any person, firm or corporation engaging in the business of pawnbroker or secondhand dealer within the corporate limits of the city shall procure from the city finance director a city business license pursuant to Chapter 5.04 MVMC with a secondhand dealer or pawnbroker endorsement. Such license shall be obtained annually. The fee for such license shall be the sum of $25.00, regardless of the date on which the license is issued. The license shall expire at midnight on the 31st day of December of each year and must be renewed prior to expiration. (Ord. 3049 § 11, 2001).
5.24.100 Revocation of license.
A. The finance director may deny a license to any applicant or may suspend all licenses of any holder when such person, or any person with an interest in the application for or holder of such license:
1. Has obtained a pawnbroker or secondhand dealer endorsement license by fraud, misrepresentation, concealment, or through inadvertence or mistake;
2. Has failed to pay its pawnbroker or secondhand dealer endorsement license fee pursuant to this chapter;
3. Has violated any conditions of this chapter, or of Chapter 19.60 RCW.
A licensee shall have their license suspended for 30 days for the first violation; 90 days for the second violation; and upon the third violation in a 12-month period, the pawnbroker and/or secondhand dealer endorsement license shall be revoked.
B. Any licensee requesting an appeal of the denial, suspension or revocation of a pawnbroker or secondhand dealer endorsement license may do so in writing, specifying their objections, and filing such appeal with the finance director of the city of Mount Vernon. The finance director will, within 14 days of receiving such notice of appeal, conduct an administrative hearing on the matter appealed. The licensee shall be given at least five days’ notice prior to the hearing, excluding weekends and holidays. The finance director is hereby authorized to adopt reasonable rules by which the appeal hearing may be conducted. All decisions of the finance director are final, and appeal therefrom may be taken to superior court. (Ord. 3049 § 12, 2001).
5.24.110 License – Display.
A person holding a pawnbroker’s or secondhand dealer’s license from the city of Mount Vernon shall prominently display the license at the place of business of the licensee. (Ord. 3049 § 13, 2001).
5.24.120 Criminal convictions.
No person, firm, or corporation shall be eligible to receive a license as provided in MVMC 5.24.090 if such person, or any employee of such firm or corporation, has been convicted of any violation of RCW 9A.52.020 through 9A.52.060 (burglary); RCW 9A.52.095 through 9A.52.100 (vehicle prowling); any violation of Chapter 9A.56 RCW (robbery, theft, possession of, or receiving, stolen property); violation of RCW 9A.82.050 (trafficking in stolen property); violation of RCW 9A.56.060 (constituting a felony conviction of unlawful issuance of bank checks (UIBC), or two or more misdemeanor convictions of UIBC); any violation of Chapter 9A.60 RCW (fraud); any violation of Chapter 9A.68 RCW (bribery and corrupt influence); and violation of Chapter 9A.72 RCW (perjury); any violation of Chapter 9A.82 RCW (criminal profiteering); any violation of Chapter 9A.83 RCW (money laundering); or any violation of Chapter 69.50 RCW constituting a felony (drug violations) within the preceding 10 years, whether such person was acting on his or her own behalf or as the agent of another. For the purposes of this section, offenses committed in states other than Washington that are substantially similar to those offenses identified herein shall be construed as being identical to violations of Washington law, and shall render the individual committing the offense ineligible to receive a license as if the offense had been committed in Washington. The license of any pawnbroker or secondhand dealer shall be immediately revoked upon receipt of information by the city that such person, or any employee of any such firm or corporation, licensed as a pawnbroker or secondhand dealer has been convicted of any of the offenses identified in this section within the preceding 10 years, whether such person was acting in his or her own behalf or as the agent of another. In the event of a revocation of a license under the provisions of this section, there shall be no rebate of any license fee, or portion of any license fee. (Ord. 3049 § 14, 2001; Ord. 2721 § 1, 1996).
5.24.130 Violations deemed gross misdemeanors – Designated.
It is a gross misdemeanor for:
A. 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 is purchased, consigned, or received in pledge;
B. Any person to knowingly make, cause, or allow to be made any false entry or misstatement of any material matter, or to knowingly fail to make entry of any material matter, in any book, record, or writing required to be kept under this chapter;
C. 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 any violation of RCW 9A.52.020 through 9A.52.060 (burglary); RCW 9A.52.095 through 9A.52.100 (vehicle prowling); any violation of Chapter 9A.56 RCW (robbery, theft, possession of, or receiving, stolen property); violation of RCW 9A.82.050 (trafficking in stolen property); violation of RCW 9A.56.060 (constituting a felony conviction of unlawful issuance of bank checks (UIBC), or two or more misdemeanor convictions of UIBC); any violation of Chapter 9A.60 RCW (fraud); any violation of Chapter 9A.68 RCW (bribery and corrupt influence); and violation of Chapter 9A.72 RCW (perjury); any violation of Chapter 9A.82 RCW (criminal profiteering); any violation of Chapter 9A.83 RCW (money laundering) or any violation of Chapter 69.50 RCW constituting a felony (drug violations) within the preceding 10 years whether the person is acting in his or her own behalf or as the agent of another;
D. Any pawnbroker or secondhand dealer to refuse to allow any prosecuting authority or any peace office or officer of the city to inspect his or her records, or any goods received and in his or her possession during the ordinary hours of business;
E. Any person to fail to immediately notify the chief of police of the possession of any property which he or she may have good cause to believe has been lost or stolen, together with the name of the owner, if known, and the date when, and the name of the person from whom the same was received by him or her;
F. Any person to engage in the business of pawnbroker or secondhand dealer without first having procured a current annual license; or
G. 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
H. Any person to knowingly violate any other provision of this chapter or Chapter 19.60 RCW. (Ord. 3049 § 15, 2001).
5.24.140 Miscellaneous violations – Penalty.
Any violation of any provision of this chapter, other than those violations set forth in MVMC 5.24.130, shall be a misdemeanor. (Ord. 3049 § 16, 2001).