HomeMy WebLinkAboutCity Council Ordinance 2002-11CITY OF PLYMOUTH
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 2002-11
AN ORDINANCE AMENDING THE
PLYMOUTH CITY CODE
CONCERNING PAWNBROKERS, AND PROVIDING
A PENALTY FOR VIOLATION
THE CITY COUNCIL OF THE CITY OF PLYMOUTH ORDAINS:
Section 1. Chapter IX, Section 1160, of the Plymouth City Code is hereby amended in its
entirety to read:
SECTION 1160 PAWNBROKERS
1160.01: PURPOSE:
The City Council finds that the use of services provided by pawnbrokers potentially
provides an opportunity for the commission of crimes and their concealment because such
businesses have the ability to receive and transfer stolen property easily and quickly. The City
Council also finds that consumer protection regulation is warranted in transactions involving
pawnbrokers. The purpose of this Section is to prevent pawn businesses from being used as
facilities for the commission of crimes and to assure that such businesses comply with basic
consumer protection standards, thereby protecting the public health, safety, and general welfare of
the citizens of the City.
To help the police department better regulate current and future pawn businesses, decrease
and stabilize costs associated with the regulation of the pawn industry, and increase identification of
criminal activities in the pawn industry through the timely collection and sharing of pawn
transaction information, this Section also implements and establishes the required use of the
Automated Pawn System (APS).
1160.02: DEFINITIONS:
The following words and terms when used in this Section shall have the following meanings
unless the context clearly indicates otherwise:
ACCEPTABLE Acceptable forms of identification are a current valid Minnesota
IDENTIFICATION: driver's license, a current valid Minnesota identification card, or a
current valid photo driver's license or identification card issued by
another state or province of Canada.
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BILLABLE Every reportable transaction conducted by a pawnbroker, except
TRANSACTIONS: renewals, redemptions, or extensions of existing pawns on items
previously reported and continuously in the licensee's possession is a
billable transaction.
ISSUING AUTHORITY: The City of Plymouth.
LICENSEE: The person, corporation, partnership, or association to whom a
license is issued under this Section, including any agents or
employees of the person, corporation, partnership, or association.
MINOR: Any natural person under the age of eighteen (18) years.
PAWNBROKER: A person who loans money on deposit or pledge of personal property
or other valuable thing; who deals in the purchasing of personal
property or other valuable thing on condition of selling that same
back again at a stipulated price; or who loans money secured by
chattel mortgage or on personal property, taking possession of the
property or any part thereof so mortgaged. To the extent that a
pawnbroker business includes buying personal property previously
used, rented, or leased, the provisions of this Section shall be
applicable. Any bank, savings and loan association, or credit union
shall not be deemed a pawnbroker for purposes of this Section.
PERSON: Any one or more natural persons; a partnership, including a limited
partnership; a corporation, including a foreign, domestic, or nonprofit
corporation; a trust; a political subdivision of the state; or any other
business organization.
REPORTABLE Every transaction conducted by a pawnbroker in which merchandise
TRANSACTION: is received through a pawn, purchase, consignment or trade, or in
which a pawn is renewed, extended, redeemed or voided, is a
reportable transaction except:
a. The bulk purchase or consignment of new or used
merchandise from a merchant, manufacturer, or wholesaler
having an established permanent place of business, and the
retail sale of said merchandise, provided the pawnbroker
must maintain a record of such purchase or consignment
which describes each item, and must mark each item in a
manner which relates it to that transaction record.
b. Retail and wholesale sales of merchandise originally received
by pawn or purchase, and for which all applicable hold
and/or redemption periods have expired.
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1160.03: LICENSE REQUIRED:
No person shall exercise, carry -on, or be engaged in the trade or business of pawnbroker
within the City unless such person is currently licensed under this Section. Persons engaged in the
business of pawnbroker on the effective date of this Section must receive a license within sixty (60)
days or cease doing business.
1160.04: APPLICATION CONTENT:
In addition to any information that may be required by the County pursuant to Minn. Stat. §
471.924, every application for a license under this Section shall be made on a form supplied by the
City and shall contain the following information:
(A) If the applicant is a natural person:
(1) the name, place, and date of birth, street resident address, and telephone
number of the applicant;
(2) whether the applicant is a citizen of the United States or a resident alien;
(3) whether the applicant has ever used or has 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 where used;
(4) the name of the business if it is to be conducted under a designation, name,
or style other than the name of the applicant and a certified copy of the
certificate as required by Minn. Stat. § 333.01;
(5) the street addresses at which the applicant has lived during the preceding five
(5) years;
(6) the type, name, and location of every business or occupation in which the
applicant has been engaged during the preceding five (5) years and the
name(s) and address(es) of the applicant's employer(s) and partner(s), if any,
for the preceding five (5) years;
(7) whether the applicant has ever been convicted of a felony, crime, or violation
of any ordinance other than a traffic ordinance. If so, the applicant shall
furnish information as to the time, place, and offense for which convictions
were had;
(8) the physical description of the applicant;
(9) if the applicant is married:
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a) the name, place, and date of birth, and street address of the
applicant's current spouse;
b) the type, name, and location of every business or occupation in
which the applicant's current spouse has been engaged during the
preceding five (5) years;
c) the names and addresses of the employers or partners of the
applicant's current spouse for the preceding five (5) years;
d) whether the applicant's current spouse has ever been convicted of any
felony, crime, or violation of any ordinance other than a traffic
ordinance. If so, the applicant shall furnish information as to the
time, place, and offense for which convictions were had.
(B) If the applicant is a partnership:
(1) the name(s) and address(es) of all general and limited partners and all
information concerning each general partner required in Subpart (A) of this
Subsection;
(2) the name(s) of managing partner(s) and the interest of each partner in the
pawnbroker business;
(3) a true copy of the partnership agreement shall be submitted with the
application. If the partnership is required to file a certificate as to a trade
name pursuant to Minn. Stat. § 333.01, a certified copy of such certificate
shall be attached to the application.
(C) If the applicant is a corporation or other organization:
(1) the name of the corporation or business form, and if incorporated, the state of
incorporation;
(2) a true copy of the Certificate of Incorporation, Articles of Incorporation, or
Association Agreement, and By-laws shall be attached to the application. If
the applicant is a foreign corporation, a Certificate of Authority as required
by Minn. Stat. § 303.06, shall be attached;
(3) the name of the manager(s), proprietor(s), or other agent(s) in charge of the
business and all information concerning each manager, proprietor, or agent
required in Subpart (A) of this Subsection;
(4) a list of all persons who control or own an interest in excess of five percent
(5%) in such organization or business form or who are officers of the
corporation or business form and all information concerning said persons
required in Subpart (A) above.
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(D) For all applicants:
(1) whether the applicant holds a current pawnbroker license from any other
governmental unit and whether the applicant is licensed under Minn. Stat. §
471.924;
(2) whether the applicant has previously been denied or had revoked or
suspended, a pawnbroker license from this or any other governmental unit;
(3) the names, street resident addresses, business addresses and telephone
numbers of three (3) individuals who are of good moral character and who
are not related to the applicant or not holding any ownership in the premises
or business, who may be referred to as to the applicant's and or manager's
character;
(4) the location of the business premises;
(5) the legal description of the premises to be licensed;
(6) the location at which the applicant's business records are maintained;
(7) if the applicant does not own the licensed premises, a true and complete copy
of the executed lease;
(8) whether all real estate and personal property taxes that are due and payable
for the premises to be licensed have been paid, and if not paid, the years and
amounts that are unpaid;
(9) whenever the application is for premises either planned or under construction
or undergoing substantial alteration, the application shall be accompanied by
a set of preliminary plans showing the design of the proposed premises to be
licensed. If the plans or design are on file with the City Building/Inspections
Department, no plans need be submitted with the issuing authority;
(10) the applicants hours of operation, on-site management and parking facilities;
(11) an executed data practices advisory and consent form authorizing the release
of criminal history information;
(12) such other information as the City Council or issuing authority may require.
(E) Manager/New Manager. When a dealer places a manager in charge of a business, or
if the named manager(s) in charge of a licensed business changes, the dealer must complete and
submit the appropriate application prior to the effective date or the change. The manager shall be
subject to the investigation required by this Section, and to the investigation fee required by Chapter
X, which shall be paid in advance.
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The designation of a new manager shall not cause the license to become invalid before a
decision is rendered, provided proper notice and application are made by the applicant. A proposed
new manager shall be referred to as the interim manager. In the event an interim manager is
rejected, the licensee shall designate another interim manager and make the required application
within fifteen (15) days of the decision. If a proposed manager is rejected, the decision maybe
appealed to the City Council by filing a written notice of appeal with the City Clerk within ten (10)
days after being notified of the rejection.
1160.05: APPLICATION EXECUTION:
All applications for a license under this Section shall be signed and sworn to. If the
application is that of a natural person, it shall be signed and sworn to by such person; if that of a
corporation, by an officer thereof; if that of a partnership, by one of the general partners; and if that
of an unincorporated association, by the manager or managing officer thereof.
Any falsification on a license application shall result in the denial of a license.
1160.06: APPLICATION VERIFICATION:
All applications shall be referred to the Police Department for verification and investigation
of the facts set forth in the application. Within sixty (60) days after receipt of a complete
application, the Police Department shall make a written report and recommendation to the City
Council as to issuance or non -issuance of the license. The City Council may order and conduct
such additional investigation as it deems necessary. If additional investigation is necessary, the
applicant shall pay the City the cost of the additional investigation. The license shall not be issued
until any additional investigation costs are paid.
1160.07: APPLICATION CONSIDERATION:
A. The City Council shall conduct a hearing on the license application within thirty (30)
days following receipt of the Police Department's report and recommendation regarding the
application. At least ten (10) days in advance of the City Council hearing on an application, the
issuing authority shall cause notice of the hearing to be published in the official newspaper of the
City, setting forth the day, time, and place of the hearing; the name of the applicant; the premises
where the business is to be conducted; and the type of license which is sought. The hearing shall
also be preceded by ten (10) days mailed notice to all owners of property located within five
hundred (500) feet of the boundaries of the property where the business is to be conducted. At the
hearing, opportunity shall be given to any person to be heard for or against the granting of the
license. Additional hearings on the application may be held if the City Council deems additional
hearings necessary. After the hearing or hearings on the application, the City Council may, in its
discretion, grant or deny the application within thirty (30) days after the close of the hearing..
B. If an application is granted for a location where a building is under construction or
not ready for occupancy, the license shall not be delivered to the licensee until a certificate of
occupancy has been issued for the licensed premises.
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1160.08: RENEWAL APPLICATION:
A. All licenses issued under this Chapter shall be effective from the date of approval by
the City Council. All licenses expire December 31 sc of each year. An application for the renewal of
an existing license shall be made prior to the expiration date of the license and shall be made in such
form as the issuing authority requires. If, in the judgment of the City Council, good and sufficient
cause is shown by the applicant for the applicant's failure to submit a renewal application before the
expiration of the existing license, the City Council may, if the other provisions of this Section are
complied with, grant the renewal application.
B. A license under this Section may not be renewed:
(1) if the City Council determines that the licensee has failed to comply with the
provisions of this Section in preceding license years;
(2) if the licensee or, if the licensee does not manage the establishment, the
manager of the licensed premises is not a resident of Minnesota on the date
the renewal takes effect;
(3) if in the case of a partnership, the managing partner or other person who
manages the establishment is not a resident of Minnesota on the date the
renewal takes effect;
(4) if in the case of a corporation, or other organization, the manager, a
proprietor, or agent in charge of the establishment is not a resident of
Minnesota on the date the renewal takes effect;
(5) the time for establishing residence in Minnesota may for good cause be
extended by the City Council.
1160.09: FEES.
A. Investigation Fee: An applicant for any license under this Chapter shall pay the City
in advance at the time an original application is submitted, a nonrefundable investigation fee to
cover the costs involved in verifying the license application and to cover the expense of any
investigation needed to assure compliance with this Section. The investigation fee is set forth in
Chapter X.
B. License Fee:
(1) The annual license fee is set forth in Chapter X. The license fee shall be paid
annually, to be determined pro -rata from the date of issuance of the license.
(2) The annual license fee shall be paid in full before the license is effective.
(3) When the license is for premises where the building is not ready for
occupancy, the time fixed for computation of the license fee for the initial
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license period shall be ninety (90) days after approval of the license by the
City Council or upon the date the building is ready for occupancy, whichever
is sooner.
(4) When a new license application is submitted as a result of incorporation by
an existing licensee and the ownership, control, and interest in the license are
unchanged, no additional fee shall be required.
C. Billable Transaction Fees: Licensees shall pay a monthly transaction fee on all
billable transactions. Such fee shall be due and payable within thirty (30) days. Failure to timely
pay the billable transaction fee shall constitute a violation of this Section.
1160.10: BOND REQUIRED.
At the time of filing an application for a license, the applicant shall file a bond in the amount
of Ten Thousand Dollars ($10,000.00) with the City. The bond, with a duly licensed surety
company as surety thereon, must be approved as to form by the City Attorney. The bond must be
conditioned that the licensee shall observe all ordinances of the City and all laws in regulation to the
business of pawnbroker, and that the licensee will account for and deliver to any person legally
entitled thereto any articles which may have come into the possession of the licensee as
pawnbroker, or in lieu thereof such licensee shall pay the person or persons the reasonable value
thereof. The bond shall contain a provision that it may not be cancelled without thirty (30) days
advance written notice to the licensing authority.
1160.11: PERSONS INELIGIBLE FOR A LICENSE.
A. No license under this Section shall be issued to an applicant who is a natural person
if such applicant:
(1) Is a minor at the time the application is filed;
(2) Has been convicted of any crime directly related to the occupation licensed
as prescribed by Minn. Stat. § 364.03, Subd. 2, and has not shown competent
evidence of sufficient rehabilitation and present fitness to perform the duties
of a pawnbroker as prescribed by Minn. Stat. § 364.03, Subd. 3;
(3) Is not of good moral character or repute; or
B. No license under this Section shall be issued to an applicant that is a partnership if
such applicant has any general partner or managing partner:
(1) Who is a minor at the time the application is filed;
(2) Who has been convicted of any crime directly related to the occupation
licensed as prescribed by Minn. Stat. § 364.03, Subd. 2, and who has not
shown competent evidence of sufficient rehabilitation and present fitness to
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perform the duties of a pawnbroker as prescribed by Minn. Stat. § 364.03,
Subd. 3;
(3) Who is not of good moral character or repute; or
C. No license under this Section shall be issued to an applicant that is a corporation or
other organization if such applicant has any manager, proprietor, or agent in charge of the business
to be licensed:
(1) Who is a minor at the time the application is filed;
(2) Who has been convicted of any crime directly related to the occupation
licensed as prescribed by Minn. Stat. § 364.03, Subd. 2, and who has not
shown competent evidence of sufficient rehabilitation and present fitness to
perform the duties of a pawnbroker as prescribed by Minn. Stat. § 364.03,
Subd. 3;
(3) Who is not of good moral character or repute; or
1160.12: GENERAL LICENSE RESTRICTIONS.
A. Records Required. At the time of any reportable transaction other than renewals,
extensions or redemptions, every licensee must immediately record in English the following
information by using ink or other indelible medium on forms or in 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, amount of money loaned upon, or pledged therefor.
(3) The maturity date of the transaction and the amount due, including monthly
and annual interest rates and all pawn fees and charges.
(4) 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. Transaction identifiers
must be consecutively numbered.
(5) Full name, current residence address, current residence 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.
(6) The identification number and state of issue from an acceptable form of
identification.
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(7) The signature of the person identified in the transaction.
(8) The licensee must also take a color photograph or color video recording of:
a. Each customer involved in a billable transaction.
b. Every item pawned or sold that does not have a unique serial or
identification number permanently engraved or affixed.
If a photograph is taken, it must be at least two (2) inches in length
by two (2) inches in width and must be maintained in such a manner
that the photograph can be readily matched and correlated with all
other records of the transaction to which they relate. Such
photographs must be available to the chief of police, or the chiefs
designee, upon request. The major portion of the photograph must
include an identifiable front facial close-up of the person who
pawned or sold the item. Items photographed must be accurately
depicted. The licensee must inform the person that he or she is being
photographed by displaying a sign of sufficient size in a conspicuous
place in the premises. If a video photograph is taken, the video
camera must zoom in on the person pawning or selling the item so as
to include an identifiable close-up of that person's face. Items
photographed by video must be accurately depicted. Video
photographs must be electronically referenced by time and date so
they can be readily matched and correlated with all other records of
the transaction to which they relate. The licensee must inform the
person that he or she is being videotaped orally and by displaying a
sign of sufficient size in a conspicuous place on the premises. The
licensee must keep the exposed videotape for three (3) months, and
furnish it to the police department upon request.
(9) Digitized photographs. Effective sixty (60) days from the date of notification
by the police department licensees must fulfill the color photograph
requirements in Subsection 1160.12. A. (8) 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.
Notwithstanding the digital images may be captured from required video
recordings, this provision does not altar or amend the requirements in
Subsection 1160.12. A. (8).
(10) Renewals, extensions and redemptions. For renewals, extensions and
redemptions, the licensee shall provide the original transaction identifier, the
date of the current transaction, and the type of transaction.
B. Disposition of Articles.
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(1) When an article of pawned or pledged property is redeemed from a licensee,
the records shall contain an account of such redemption with the date,
interest charges accrued, and the total amount for which the article was
redeemed.
(2) When an article of purchased or forfeited property is sold or disposed of by a
licensee and the licensee receives One Hundred Dollars ($100.00) or more in
the payment thereof, the records shall contain an account of such sale with
the date, the amount for which the article was sold, and the full name, current
address, and telephone number of the person to whom sold.
C. Inspection of Records. The records must at all reasonable times be open to
inspection by the police department or department of licenses and consumer services. Data entries
shall be retained for at least three (3) years from the date of transaction. Entries of required digital
images shall be retained a minimum of one hundred twenty (120) days.
D. Daily Reports to Police. Licensees must submit every reportable transaction to the
police department daily in the following manner:
(1) Licensees must provide to the police department all information required in
Section 1160.12 A. (1) through (6) and other required information, by
transferring it from their computer to the Automated Pawn System via
modem. All required 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 using procedures that address
security concerns of the licensees and the issuing authority. The licensee
must display a sign of sufficient size, in a conspicuous place in the premises,
which informs all patrons that all transactions are reported to the police
department daily.
(2) Billable Transaction Fees. Licensees will be charged for each billable
transaction reported to the police department.
(3) If a licensee is unable to successfully transfer the required reports by modem,
the licensee must provide the police department printed copies of all
reportable transactions along with the video tape(s) for that date, by 12: 00
p.m. the next business day;
(4) If the problem is determined to be in the licensee's system and is not
corrected by the close of the first business day following the failure, the
licensee must provide the required reports as detailed in Section 1160.12. D.
3, and must be charged a fifty dollar ($50.00) reporting failure penalty, daily,
until the error is corrected; or
(5) If the problem is determined to be outside the licensee's system, the licensee
must provide the required reports in Section 1160.12. D. 3, and resubmit all
such transaction via modem when the error is corrected.
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(6) If a licensee is unable to capture, digitize or transmit the photographs
required in Section 1160.12. A. 9, the licensee must immediately take all
required photographs with a still camera, cross-reference the photographs to
the correct transaction, and make the pictures available to the Police
Department upon request.
(7) Regardless of the cause or origin of the technical problems that prevented 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.
(8) Section 1160.12. D. (3) through (5) notwithstanding, the Police Department
may, upon presentation of extenuating circumstances, delay the
implementation of the daily reporting penalty.
E. Receipt Required. Every licensee must provide a receipt to the party identified in
every reportable transaction and must maintain a duplicate of that receipt for three (3) 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 pawned or sold, or the nature of the transaction.
(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 advanced or paid.
(7) The monthly and annual interest rates, including all pawn fees and charges.
(8) The last regular day of business by which the item must be redeemed by the
pledger without risk that the item will be sold, and the amount necessary to
redeem the pawned item on that date.
(9) The full name, current residence address, current residence telephone
number, and date of birth of the pledger or seller.
(10) The identification number and state of issue from an acceptable form of
identification.
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(11) Description of the pledger or seller including approximate sex, height,
weight, race, color of eyes and color of hair.
(12) The signature of the pledger or seller.
(13) All printed statements as required by Minnesota Statute 325J.04,
subdivision 2, or any other applicable statutes.
F. Redemption Period. Any person pledging, pawning or depositing an item for
security must have a minimum of one hundred twenty (120) days from the date of that transaction to
redeem the item before it may be forfeited and sold. During the one hundred twenty (120) day
holding period, items may not be removed from the licensed location except as provided in Section
1160. 14 (A). Licensees are prohibited from redeeming any item to anyone other than the person to
whom the receipt was issued or, to any person identified in a written and notarized authorization to
redeem the property identified in the receipt, or to a person identified in writing by the pledger at the
time of the initial transaction and signed by the pledger, or with approval of the police license
inspector. Written authorization for release of property to persons other than original pledger must
be maintained along with original transaction record in accordance with Section 1160.12. A. (10).
G. Holding Period. Any item purchased or accepted in trade by a licensee must not be
sold or otherwise transferred for thirty (30) days from the date of the transaction. An individual may
redeem an item seventy-two (72) hours after the item was received on deposit, excluding Sundays
and legal holidays.
H. Police Order to Hold Property.
(1) Investigative Hold. Whenever a law enforcement official from any agency
notifies a licensee not to sell an item, the item must not be sold or removed
from the premises. The investigative hold shall be confirmed in writing by
the originating agency within seventy-two (72) hours and will remain in
effect for fifteen (15) days from the date of initial notification, or until the
investigative order is canceled, or until an order to hold/confiscate is issued,
pursuant to Section 1160.12. H. (2), whichever comes first.
(2) Order to Hold. Whenever the chief of police, or the chiefs designee, notifies
a licensee not.to sell an item, the item must not be sold or removed from the
licensed premises until authorized 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 chiefs designee determines the hold
is still necessary and notifies the licensee in writing.
(3) Order to Confiscate. If an item is identified as stolen or evidence in a
criminal case, the chief or chief s designee may:
(a) Physically confiscate and remove it from the shop, pursuant to a
written order from the chief or the chiefs designee, or
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(b) Place the item on hold or extend the hold as provided in Section
1160.12. H. (2), and leave it in the shop.
When an item is confiscated, the person doing so shall provide identification
upon request of the licensee, and shall provide the licensee the name and
phone number of the confiscating agency and investigator, and the case
number related to the confiscation.
When an order to hold/confiscate is no longer necessary, the chief of police,
or chiefs designee shall so notify the licensee.
I. Inspection of Items. At all 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 as authorized in Section 1160.12 (0), 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.
J. Label Required. Licensees must attach a label to every item at the time it is pawned,
purchased or received in inventory from any reportable transaction. Permanently recorded on this
label must be the number or name that identifies the transaction in the shop's records, the transaction
date, the name of the item and the description or the model and serial number of the item as reported
to the police department, whichever is applicable, and the date the item is out of pawn or can be
sold, if applicable. Labels shall not be re -used.
K. License Disi)lay. A license issued under this Section must be posted in a
conspicuous place in the premises for which it is used. The license issued is only effective for the
compact and contiguous space specified in the approved license application.
L. Responsibility of Licensee. A licensee under this Section shall be responsible for
the conduct of the business being operated and shall maintain conditions of order. The conduct of
agents or employees of a licensee, engaged in performance of duties for the licensee, shall be
deemed the conduct of the licensee.
M. Gambling. No licensee under this Section may keep, possess, or operate, or permit
the keeping, possession, or operation on the licensed premises of dice, slot machines, roulette
wheels, punchboards, blackjack tables, or pinball machines which return coins or slugs, chips, or
tokens of any kind, which are redeemable in merchandise or cash. No gambling equipment
authorized under Minn. Stat. Chapter 349, may be kept or operated and no raffles may be conducted
on the licensed premises and/or adjoining rooms. The purchase of lottery tickets may take place on
the licensed premises as authorized by the director of the lottery pursuant to Minn. Stat. Chapter
349A.
N. Penalty for Property Owner. It is unlawful for any person who owns or controls real
property to knowingly permit it to be used for pawn brokering without a license.
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O. Premises. All property deposited, left, pledged, pawned, or held for sale must be
stored in an enclosed facility and may not be stored outside of the premises. The City may,
however, permit the licensee to designate one (1) off premises locked and secured facility in which
the licensee may store only cars, boats, and other motorized vehicles. The licensee shall permit
immediate inspection of the facility at any time during business hours by the City. All provisions in
this section regarding record keeping and reporting shall apply to oversized items. All property shall
be stored in compliance with zoning and/or fire regulations and in an orderly manner. The premises
shall also be equipped with an operational security alarm.
1160.13: RESTRICTED TRANSACTIONS
A. Hours of Operation. No pawnbroker shall keep the pawnbroker business open for
the transaction of business on any day of the week before 7:00 a.m. or after 10:00 p.m.
B. Minors. A pawnbroker shall not purchase or receive personal property on deposit or
pledge from any minor.
C. Incompetent Persons. A pawnbroker shall not purchase or receive personal property
on deposit or pledge from any incompetent person.
D. Prohibited Goods. No licensee under this Section shall accept any item of property
which contains an altered or obliterated serial number or "Operation Identification" number or any
item of property whose serial number has been removed.
E. Security Interest. No licensee nor any agent or employee of a licensee shall
purchase, accept, or receive any article of property knowing, or having reason to know, that the
article of property is encumbered by a security interest. For the purpose of this section, "security
interest" means an interest in property which secures payment or other performance of an
obligation.
F. True Owner. No licensee nor any agent or employee of a licensee shall purchase,
accept, or receive any article of property, from any person, knowing, or having reason to know, that
said person is not the true and correct owner of the property.
G. Proper Identification. No licensee nor any agent or employee of a licensee shall
purchase, accept, or receive any article of property, from any person, without first having examined
an acceptable form of identification.
H. Payment by Check. Payment of more than Two Hundred Fifty Dollars ($250.00) by
a licensee for any article deposited, left, purchased, pledged or pawned shall be made only by a
check, draft, or other negotiable or non-negotiable instrument which is drawn against funds held by
a financial institution. This policy must be posted in a conspicuous place in the premises.
I. Restrictions on Sale. A pawnbroker shall suspend for one (1) year, any business
transaction with any person who has sold and/or forfeited on six (6) previous occasions articles for
which the person received $25.00 or more per transaction within a single six (6) month period.
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1160.14:
A. Premises. Any licensee shall, at all times during the term of the license, allow the
police department to enter the premises, where the licensee is carrying on business, including all
off-site storage facilities as authorized in Section 1160.12 (0), during normal business hours, except
in an emergency, for the purpose of inspecting such premises and inspecting the articles and records
therein to locate goods suspected or alleged to have been stolen and to verify compliance with this
Section or other applicable laws. No licensee shall conceal any article in his possession from the
police department.
B. Inspection by Police or Claimed Owner. All articles of property coming into the
possession of any licensee shall be open to inspection and right of examination of any police officer
or any person claiming to have been the owner thereof or claiming to have had an interest therein
when such person is accompanied by a police officer.
1160.15: CONDUCT OF PERSONS ON LICENSED PREMISES.
A. Property of Another. No person may pawn, pledge, sell, leave, or deposit any article
of property not their own; nor shall any person pawn, pledge, sell, leave, or deposit the property of
another, whether with permission or without; nor shall any person pawn, pledge, sell, leave, or
deposit any article of property in which another has a security interest; with any licensee.
B. Minors. No minor may pawn, pledge, sell, leave, or deposit any article of property
with any licensee.
C. Proper Identification. No person may pawn, pledge, sell, leave or deposit any article
of property with any licensee without first having presented an acceptable form of identification.
D. Required Signage. All licensees shall by adequate signage and separate written
notice inform persons seeking to pawn, pledge, sell, leave, or deposit articles of property with the
licensee of the foregoing requirements.
(1) For the purpose of this Subsection, "adequate signage" shall be deemed to
mean at least one sign of not less than four (4) square feet in surface area,
comprised of lettering of not less than three-quarters (3/4) of an inch in
height, posted in a conspicuous place on the licensed premises and stating
substantially the following:
TO PAWN OR SELL PROPERTY:
YOU MUST BE AT LEAST 18 YEARS OF AGE.
YOU MUST BE THE TRUE OWNER OF THE PROPERTY.
THE PROPERTY MUST BE FREE OF ALL CLAIMS AND LIENS.
YOU MUST PRESENT VALID PHOTO IDENFICATION.
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VIOLATION OF ANY OF THESE REQUIREMENTS IS A CRIME.
(2) For the purpose of this Subsection, "separate written notice" shall be deemed
to mean either the receipt, as required in Section 1160. 12. (E), or a printed
form, incorporating a statement to the effect that the person pawning,
pledging, selling, leaving, or depositing the article is at least eighteen (18)
years of age; is the true owner of the article; and that the article is free of all
claims and liens; which is acknowledged by way of signature of the person
pawning, pledging, selling, leaving, or depositing the article.
E. False Identification. No person seeking to pawn, pledge, sell, leave, or deposit any
article of property with any licensee shall give a 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
driver's license or identification card; to any licensee.
F. General Restrictions. No pawnbroker licensed under this Section shall:
(1) Lend money on a pledge at a rate of interest above that allowed by law;
(2) Knowingly possess stolen goods;
(3) Sell pledged goods before the time to redeem has expired;
(4) Refuse to disclose to the City, after having sold pledged goods, the name of
the purchaser or the price for which the item sold; or
(5) Make a loan on a pledge to a minor.
1160.16: RESTRICTIONS REGARDING LICENSE TRANSFER.
Each license under this Section shall be issued to the applicant only and shall not be
transferable to any other person. No licensee shall loan, sell, give, or assign a license to another
person.
1160.17: SUSPENSION OR REVOCATION OF LICENSE.
A. The City Council may suspend or revoke a license issued under this Section upon a
finding of a violation of:
(1) any of the provisions of this Section;
(2) any state statute regulating pawnbrokers; or
(3) any state or local law relating to moral character and repute.
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B. A revocation or suspension by the City Council shall be preceded by written notice
to the licensee and a public hearing. The written notice shall give at least ten (10) days' notice of the
time and place of the hearing and shall state the nature of the charges against the pawnbroker. The
notice may be served upon the pawnbroker personally or by United States mail addressed to the
most recent address of the business in the license application.
1160.18: PENALTY.
Violation of any provision of this Section shall be a misdemeanor.
Section 2.
entirety to read:
(a)
Chapter X, Section 1010.01, Subdivision 9(a), is hereby amended in its
Pawnbroker License Fee
Investigation Fee
$ 8,000.00
If conducted within the state of Minnesota $ 500.00
If conducted outside the state of Minnesota,
actual costs not to exceed $10,000.00
Manager/New Manager, when done alone $ 50.00
Billable Transaction Fee
Electronic billable transaction fee $ 1.50
Manual billable transaction fee $ 2.50
Section 3. Effective Date. This ordinance shall be effective immediately upon its passage
and publication.
ADOPTED this 12� day of March, 2002, by the City Council of the City of Plymouth.
CITY OF PLYMOUTH
I 21CM., ��Ap N' N
APOiTierney, Mayor
ATTEST:
b?4&
Sandra R. Paulson, City Clerk
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