Chapter 5.32
REGULATION OF SECONDHAND ARTICLE DEALERS
Sections:
5.32.010 Secondhand article dealers.
5.32.090 Penalty for violation of this chapter.
5.32.010 Secondhand article dealers.
A. State Statutes Adopted. The provisions of Section 134.71, Wisconsin Statutes, relating to secondhand dealers, are hereby adopted and made a part of this chapter by reference, with the exceptions set forth in subsections (B) and (C) of this section. Any future amendments, revisions or modifications of the statutes incorporated herein are intended to be made part of this section in order to secure uniform regulation. A violation of such provision shall be a violation of this section.
B. As part of the license application procedure required under Section 134.71, Wisconsin Statutes, anyone making application shall also furnish to the city the name, age, race, date of birth and address of all employees.
C. Each license for a secondhand article dealer shall be valid from January 1st to the following December 31st. (Ord. 2298-12 § 1 (part), 2012)
5.32.020 Definitions.
A. When used in this chapter, the following definitions shall apply:
1. “Article” means any of the following objects:
a. Jewelry.
b. Firearms, knives, and ammunition.
c. Paper money and coins.
d. Musical instruments.
e. Silverware and flatware.
f. Gold and silver bullion; platinum and palladium.
g. Computers and electronic equipment.
2. “Billable transaction” means every reportable transaction conducted by a person or entity who purchases secondhand articles for resale.
3. “Charitable organization” has the meaning specified in Section 134.71(1)(am), Wisconsin Statutes.
4. “Customer” means a person with whom a transaction is conducted by a secondhand article dealer for the purchase, sale, consignment, receipt or exchange of any secondhand article.
5. Northeastern Wisconsin Property Reporting System (NEWPRS). The Northeast Wisconsin Property Reporting System (NEWPRS) is a secure web-based database to electronically manage and store purchases of secondhand articles.
6. “Secondhand article dealer” means a person or entity who purchases or receives on consignment any secondhand article for the purpose of resale.
7. “Reportable transaction” means every transaction conducted by a secondhand article dealer in which an article or articles are received by a secondhand article dealer through purchase, consignment, or trade, or in which a previous agreement is renewed, extended, voided, or redeemed, or for which a unique transaction number or identifier is generated by their point-of-sale software, or an item is confiscated by law enforcement, except: The bulk purchase or consignment of new or used articles from a merchant, manufacturer, or wholesaler having an established permanent place of business, and the subsequent retail sale of said articles, provided the secondhand article dealer must maintain a record of such purchase or consignment that describes each item, and must mark each item in a manner that relates it to that transaction.
8. “Secondhand” means property owned by any person, except a wholesaler, retailer, or licensed secondhand article dealer immediately before the transaction at hand.
9. “Gold and silver bullion” means gold or silver in the form of bars, ingots, or plates.
B. A person is not acting as a secondhand article dealer when engaging in any of the following:
1. Any transaction at an occasional garage or yard sale, or an estate sale.
2. Any transaction entered into by a person engaged in the business of junk collector, dealer, or scrap processor, as described in Section 70.995(2), Wisconsin Statutes.
3. Any transaction while operating as a charitable organization or conducting a sale, the proceeds of which are donated to a charitable organization.
4. Any transaction between a buyer of a new article and the person who sold the article when new that involves any of the following:
a. The return of the article.
b. The exchange of the article for a different, new article.
5. Any transaction as a purchaser of a secondhand article from a charitable organization if the secondhand article was a gift to the charitable organization, or as a seller of a secondhand article that the person bought from a charitable organization if the secondhand article was a gift to the charitable organization.
6. Any transaction as a seller of a secondhand article made or conducted by a public officer, receiver, trustee, personal representative or a private auctioneer or estate seller pursuant to a judicial sale or a court ordered or authorized liquidation sale, or of a secondhand article that the person bought from public officer, receiver, trustee, personal representative or a private auctioneer or estate seller pursuant to a judicial sale or a court ordered or authorized liquidation sale. (Ord. 2298-12 § 1 (part), 2012)
5.32.030 License required.
A. A person wishing to operate as secondhand article dealer shall apply for a license to the city clerk. The license will be filled out properly and in compliance with Wisconsin License Application. The license fee shall be two hundred dollars ($200.00) per year. The clerk shall furnish application forms approved by the police department that shall require all of the following:
1. The applicant’s name, place of birth, date of birth, and residence address.
2. The name and address of the business and the owner of the business premises.
3. Whether the applicant is a natural person, corporation, limited liability company, or partnership, and:
a. If the applicant is a corporation, the state where incorporated and the names and addresses of all officers and directors.
b. If the applicant is a partnership, the names and addresses of all members.
c. If the applicant is a limited liability company, the names and addresses of all members.
d. The name, place and date of birth, residence address, and driver’s license number of the manager or proprietor of the business.
e. The name, address and date of birth of all employees of the business.
f. Any other information that the clerk may reasonably require.
4. A statement as to whether the applicant, including an individual, agent, officer, director, member, partner, manager, or proprietor, has been convicted of any crime, statutory violation punishable by forfeiture, or county or municipal ordinance violation. If so, the applicant must furnish information as to the time, place, and offense of all such violations.
5. Whether the applicant or any other person listed in this section has ever used or been known by a name other than the applicant’s name, and if so, the name or names used and information concerning dates and places used.
6. Whether the applicant or any other person listed in this section has previously been denied or had revoked or suspended a pawnbroker, secondhand article dealer or secondhand jewelry dealer license from any other governmental unit. If so, the applicant must furnish information as to the date, location, and reason for the action.
B. Investigation of License Applicant. The police department shall investigate each applicant and any other person identified pursuant to this section. The police department shall furnish its recommendation derived from the investigation to the city clerk. The investigation shall include each agent, officer, member, partner, manager, proprietor or employee. The city shall receive from the applicant an appropriate fee as shall have been established by the common council from time to time, to defray such investigative costs.
C. License Issuance. The city may grant the license if all of the following apply:
1. The applicant, including an individual, a partner, a member of a limited liability company, a manager, a proprietor, or an officer, director, or agent of any corporation applicant, does not have an arrest or conviction record, subject to Sections 111.321, 111.322 and 111.335, Wisconsin Statutes, or involved in any crimes or offenses of dishonesty within ten years.
2. Violation of the city ordinance will result in revocation of the license or deny any future licenses.
3. No license issued under this subsection may be transferred.
4. Each license is valid for one year.
D. Display of License. Each license issued under this chapter shall be displayed in a conspicuous place visible to anyone entering a licensed premises.
E. License Fee. The annual license fees for licenses issued under this chapter shall be established by the common council from time to time, and shall be received by the city prior to issuance of the license. The license fee shall be two hundred dollars ($200.00) per year at this time.
F. License Denial, Suspension, or Revocation. The city may deny, suspend, or revoke any license issued by it under this section for fraud, misrepresentation, or false statement contained in the application for a license, or for any violation of this chapter or Section 134.71, 943.34, 948.62 or 948.63, Wisconsin Statutes, or for any other violation of local, state, or federal law substantially related to businesses licensed under this chapter.
G. Place of Business. A license under this chapter authorizes the licensee to carry on its business only at the permanent place of business and one or more off-site locked and secured storage facilities each of which shall be designated in the license. The licensee shall permit inspection of either facility in accordance with this chapter. All provisions of this chapter regarding record keeping and reporting apply to any facility and their contents. (Ord. 2298-12 § 1 (part), 2012)
5.32.040 Records required.
A. At the time of any reportable transaction other than renewals, extensions, redemptions or confiscations, every licensee must record, in English, the following information by using as provided in subsection (C) of this section, a computerized record approved by the police department:
1. A complete and accurate description of each item including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item.
2. The purchase price paid for the item.
3. Date, time and place the item of property was received by the licensee, and the unique alpha and/or numeric transaction identifier that distinguishes it from all other transactions in the licensee’s records.
4. Full name, current residence address, current telephone number, date of birth and accurate description of the person from whom the item of the property was received, including: sex, height, weight, race, color of eyes and color of hair.
5. The identification number and state of issue from any of the following forms of identification of the seller:
a. Current valid driver’s license.
b. Current valid passport.
c. Any other valid photo identification card issued by a U.S. government agency.
6. The signature of the person identified in the transaction.
7. The licensee must take a color photograph of:
a. Every item a secondhand article dealer or secondhand jewelry dealer has purchased shall be photographed. All unique serial or identification numbers permanently engraved or affixed on an item shall also be photographed.
b. All photographs must be available to the chief of police, or the chief’s designee, upon request. Items photographed must be accurately depicted.
c. The licensee must keep the photographs for ninety (90) days or until retrieved by the police department.
8. Digitalized Photographs. The licensee must fulfill the color photograph requirements by submitting them as digital images, in a format specified by the issuing authority, electronically cross- referenced to the reportable transaction they are associated with.
B. Inspection of Records. Records must at all reasonable times be open to inspection by the police department. Data entries shall be retained for at least three years from the date of transaction. Entries of required digital images shall be retained a minimum of ninety (90) days.
C. Reports to Police. The police department will provide licensees with a user name and password for the current version of NEWPRS. Licensees must submit every reportable transaction to the NEWPRS system daily. All records must be transmitted completely and accurately after the close of business each day in accordance with standards and procedures established by the issuing authority.
1. If a licensee is unable to successfully transfer the required reports via the internet for the day, the licensee must provide the police department, upon request, printed copies of all reportable transactions along with the video recordings for that date, by noon the next business day.
2. If the problem is determined to be outside the licensee’s system, the licensee must continue to provide the required reports, and resubmit all such transactions via the internet when the error is corrected.
3. Regardless of the cause or origin of the technical problems that prevent the licensee from uploading their reportable transactions, upon correction of the problem, the licensee shall upload every reportable transaction from every business day the problem had existed.
D. Receipt Required. Every licensee must tender a receipt to the party identified in every reportable transaction and must maintain a duplicate of that receipt for three years. The receipt must include at least the following information:
1. The name, address and telephone number of the licensed business.
2. The date and time the item was received by the licensee.
3. Whether the item was consigned or sold.
4. An accurate description of each item received including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item.
5. The signature or unique identifier of the licensee or employee that conducted the transaction.
6. The amount paid.
7. The full name, current residence address, current residence telephone number, and date of birth of the consignor or seller.
8. The identification number and state of issue from any of the following forms of identification of the seller:
a. Current valid driver’s license.
b. Current valid passport.
c. Current valid photo identification card issued by a U.S. governmental agency.
9. Description of the consignor or seller including approximate sex, height, weight, race, color of eyes, and color of hair.
10. The signature of the consignor or seller.
11. A representative of the police department will pick up the previous month’s original transaction reports from the businesses. If a representative from the police department is unable to pick up the transaction reports, a representative from the business may drop off the transaction reports at the city of Brookfield police department. (Ord. 2298-12 § 1 (part), 2012)
5.32.050 Holding period.
A. Any item purchased or received by a secondhand article dealer shall be kept on the premises or other place of safekeeping for not less than fifteen (15) days after the date of purchase or receipt.
B. During the period set forth in subsection (A) of this section, the article shall be held separate from saleable inventory and may not be altered in any matter. The secondhand article dealer shall permit any law enforcement officer to inspect the article during this period.
C. Within twenty-four (24) hours after a request from a law enforcement officer, the secondhand article dealer shall make available for inspection any article which is kept off the premises for safekeeping.
D. Items such as gold and silver bullion that are bought by the licensee shall be held on the premises for forty-eight (48) hours after the date of purchase or receipt before the licensee can melt the items or transfer to any other person or entity for the purpose of melt down. The secondhand dealer is required to take detailed photographs and make a detailed description of the bullion prior to being sold or melted down.
E. Police Order to Hold Property.
1. Investigative Hold. Whenever a law enforcement official from any law enforcement agency notifies a licensee not to sell an item, the item must not be sold or removed from the premises until notified by the investigating agency to do so. The order to hold shall expire ninety (90) days from the date it is placed unless the law enforcement official determines the hold is still necessary and notifies the licensee in writing.
2. Order to Hold.
a. Whenever the chief of police, or the chief’s designee, notifies a licensee not to sell an item, the item must not be sold or removed from the licensed premises until authorization to be released by the chief or the chief’s designee. The order to hold shall expire ninety (90) days from the date it is placed unless the chief of police or the chief’s designee determines the hold is still necessary and notifies the licensee in writing.
b. If an item is identified as stolen or evidence in a criminal case, the chief or the chief’s designee may take physical custody of the item and remove it from the shop, pursuant to a written order from the chief or the chief’s designee, or place the item on hold or extend the hold as provided in this subsection (E)(2), and leave it in the shop.
c. When an item is taken into physical custody by a law enforcement official, the person doing so shall provide identification upon request of the licensee, and shall provide the licensee the name and phone number of the agency and investigator, and the case number if any, related to the matter under investigation or prosecution.
d. When an order to hold is no longer necessary, the chief of police or chief’s designee shall so notify the licensee, and the licensee may reclaim the item, and may thereafter dispose of the item in accordance with the terms of this chapter. (Ord. 2298-12 § 1 (part), 2012)
5.32.060 Inspection of items.
At all reasonable times during the terms of the license, the licensee must allow law enforcement officials to enter the premises where the licensed business is located, including all off-site storage facilities, during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the items, ware and merchandise and records therein to verify compliance with this chapter or other applicable laws. (Ord. 2298-12 § 1 (part), 2012)
5.32.070 Prohibited acts.
A. No person under the age of eighteen (18) years may sell or attempt to sell goods with any secondhand article dealer, nor may any secondhand article dealer purchase any goods from a person under the age of eighteen (18) years.
B. A secondhand article dealer may engage in a transaction with a minor if the minor is accompanied by his or her parent or guardian at the time of the transaction and the parent or guardian signs the transaction form and provides identification as required by this section.
C. No licensee may receive any goods from an intoxicated person.
D. No licensee may receive any goods, unless the seller presents identification in the form of a valid driver’s license, a valid state of Wisconsin identification card or current valid photo driver’s license, a valid passport, or identification card issued by the state or province of residency of the person from whom the item was received.
E. No person may sell, consign, leave, or deposit any article of property not their own; nor shall any person sell, consign, leave, or deposit the property of another, whether with permission or without; nor shall any person sell, consign, leave, or deposit any article of property in which another has a security interest, with any licensee.
F. No person seeking to sell, consign, leave, or deposit any article of property with any licensee shall give false or fictitious name; nor give a false date of birth; nor give a false, or out-of-date address of residence or telephone number; nor present a false or altered identification, or the identification of another, to any licensee. (Ord. 2298-12 § 1 (part), 2012)
5.32.080 Severability.
Should any section, subsection, clause or other provision of this chapter be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of this chapter as a whole or any part other than the part so declared invalid. (Ord. 2298-12 § 1 (part), 2012)
5.32.090 Penalty for violation of this chapter.
Any person, firm, partnership, or corporation who violates any part of this chapter shall be subject to the penalty and enforcement provisions in Chapter 1.12. (Ord. 2552-19 § 17, 2019)