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HomeMy WebLinkAbout2233-02 - ADMIN Ordinance - City Council - 2002/11/18• ORDINANCE NO. 2233-02 AN ORDINANCE AMENDING CHAPTER 8, ARTICLE II, SUBDIVISION XII, OF THE ST. LOUIS PARK MUNICIPAL CODE CONCERNING PAWNBROKERS AND PROVIDING A PENALTY FOR VIOLATION THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK ORDAINS: Section 1. Repealer Chapter 8, Sections 8-421 through 8-425 of the St Louis Park Municipal Code are hereby repealed in their entirety Section 2. Chapter 8 of the St Louis Park Municipal Code is hereby amended to add new sections 8-421 through 8-437 which read as follows: Subdivision XII. Pawnbroker 8-421 Purpose. (a) 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 cnmes 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. III (b) 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 inciease identification of cnminal activities in the pawn industry through the timely collection and shanng of pawn transaction information, this Section also implements and establishes the required use of the Automated Pawn System (APS). 8-422. Regulations Adopted. The regulations pertaining to pawnbrokers set forth in Minn. Stat. Ch 325J, as amended, are hereby adopted herein by reference as if fully stated herein. 8-423. General Provisions Apply. All provisions of Chapter 8, Article II: General Provisions, apply to this section unless stated otherwise in the individual provisions of this Section. 8-424. License Required. No person shall engage in the business of pawnbroker in the City without first obtaining a license from the City. 8-425 Application. (a) Form of Application. In addition to any information that may be required by the County puisuant to Minn. Stat § 471.924, every application for a license under this Section shall be made according to provisions contained in sections 8-36 of this Chapter (b) Application Verification All applications for pawnbroker licenses shall be referred to the 111 Police Department for venfication and investigation of the facts set forth in the application The Police Department shall make a wntten report and recommendation to the City Clerk as to issuance or non -issuance of the license. The City Clerk may order and conduct such additional investigation as deemed necessary Ordinance No 2233-02 -2- 8-426. Licensee Eligibility. (a) To be eligible for or to maintain a pawnbroker license, a person must operate lawfully and fairly within the purposes of Minn. Stat. Ch. 325J and this Section and: (1) may not be a minor at the time that the application for a pawnbroker's license is filed; (2) may not have been convicted of any cnme directly related to the occupation licensed as prescnbed by Minn. Stat. Section 364.03, subdivision 2, unless the person has shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a licensee under this Chapter as prescnbed by Section 364.03, subdivision 3, and (3) must be of good moral character or repute. (4) must not hold an intoxicating liquor license within the City 8-427. License Restrictions. (a) Number of Licenses Issued. On the effective date of this Subdivision XII, the maximum allowable number of pawnbroker licenses shall be two. Pawnbroker licensees existing on the effective date of this Subdivision XXI are eligible to apply for renewal at the existing licensed premises, and if renewed, may continue until the license for that licensed premises is revoked or is not renewed (b) License Transfer Not Allowed. 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. (c) Inactive License. The City Council may revoke the pawn license of any business that shows no pawn activity for a period of six months. A hearing shall be held to determine the status of the pawn operation and if satisfactory intent to do business under the license is not demonstrated, the City Council may revoke the license (d) Premises. A license under this division shall be issued only for the exact rooms and square footage of the premises descnbed in the application. (e) Zoning requirements met No license shall be granted until all applicable zoning requirements are met or until all conditions for approval of the use have been satisfied. 8-428. Fees. (a) Investigation Fee. An applicant for any license under this Chapter shall, at the time an original application is submitted, pay the City a nonrefundable investigation fee as set from time to time by the city council and listed in appendix A to this Code, to cover the costs involved in venfying the license application and to cover the expense of any investigation needed to assure compliance with this Section. (b) License Fee. The licensee shall pay an annual license fee as set from time to time by the city council and listed in appendix A to this Code. (c) Billable Transaction Fees. Licensees shall pay a monthly transaction fee on all billable transactions as defined in section 8-429 (b). Such fee shall be as set from time to time by the city council and listed in appendix A to this Code. Billable transaction fees are payable within thirty (30) days. Failure to timely pay the billable transaction fee shall constitute a violation of this Section Ordinance No. 2233-02 -3- 8-429. Transactions. • (a) Reportable Transactions. Every transaction conducted by a pawnbroker in which merchandise 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: (1) 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 (2) Retail and wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption penods have expired. (b) Billable Transactions. Billable transactions are defined as every reportable transaction conducted by a pawnbroker, except renewals, redemptions, or extensions of existing pawns on items previously reported and continuously in the licensee's possession. 8-430. General Operating Requirements. (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, senal 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 numenc 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 descnption 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 state of issue and identification number from a current valid photo dnver's license or a current valid state photo identification card from any state or from any province of Canada. (7) The signature of the person identified in the transaction. (b) Photographs Required. Effective ninety (90) days from the effective date of this Subdivision XII, the licensee must also take a color photograph or color video recording of (1) Each customer involved in a billable transaction. (2) Every item pawned or sold that does not have a unique senal or identification number permanently engraved or affixed Ordinance No. 2233-02 -4- (3) Photographs 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. (c) Digitized Photographs. Licensees may fulfill the color photograph requirements in Subsection 8-430 (b) 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 8-430(b). (d) Renewals, Extensions and Redemptions. For renewals, extensions and redemptions, the licensee shall provide the onginal transaction identifier, the date of the current transaction, and the type of transaction (e) Disposition of Articles. (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. (f) 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 entnes shall be retained for at least three (3) years from the date of transaction. Entnes of required digital images shall be retained a minimum of ninety (90) days. (g) Daily Reports to Police. Effective ninety (90) days from the effective date of this Subdivision XII, 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 8-430 (a) through (0 and other required information, by transfemng 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 Ordinance No. 2233-02 -5- each day in accordance with standards and procedures established by the issuing authonty using procedures that address secunty concerns of the licensees and the issuing authonty. 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 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 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 8-430 (g) (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 8-430 (g) (3), and resubmit all such transaction via modem when the error is corrected. (3) (6) If a licensee is unable to capture, digitize or transmit the photographs required in Section 8-430 (c), 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 ongin 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) The Police Department may, upon presentation of extenuating circumstances, delay the implementation of the daily reporting penalty. (h) 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. Ordinance No. 2233-02 -6- (8) The last regular day of business by which the item must be redeemed by the pledger without nsk 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 state of issue and identification number from a current valid photo dnver's license or a current valid state photo identification card from any state or from any province of Canada. (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. (i) Redemption Period. Any person pledging, pawning or depositing an item for secunty must have a minimum of ninety (90) days from the date of that transaction to redeem the item before it may be forfeited and sold Dunng the ninety (90) day holding period, items may not be removed from the licensed location except as provided in Section 8-430 (s). 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 wntten and notanzed authonzation to redeem the property identified in the receipt, or to a person identified in wnting by the pledger at the time of the initial transaction and signed by the pledger, or with approval of the police license inspector. Written authonzation for release of property to persons other than original pledger must be maintained along with onginal transaction record in accordance with Section 8-430 (h) (1) 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 (k) 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 wnting 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 8-430 (k) (2), whichever comes first. (2) Order to Hold. 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 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 chief's designee determines the hold is still necessary and notifies the licensee in wnting. (1) Order to Confiscate. If an item is identified as stolen or evidence in a cnminal case, the police chief or chiefs designee may: (1) Physically confiscate and remove it from the shop, pursuant to a wntten order from the police chief or the chiefs designee, or Ordinance No. 2233-02 -7- (2) Place the item on hold or extend the hold as provided in Section 8-430 (k) (2), and leave it in the shop. (3) 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 (4) When an order to hold/confiscate is no longer necessary, the chief of police, or chief's designee shall so notify the licensee (m) Inspection of Items At all times dunng 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 authonzed in Section 8-430 (s), dunng 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. (n) 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 descnption 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. (o) License Display. 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. (p) 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. (q) 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 authonzed 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 authonzed by the director of the lottery pursuant to Minn. Stat. Chapter 349A. (r) 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 brokenng without a license. (s) Property to be Kept on 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 motonzed vehicles. The licensee shall permit immediate inspection of the facility at any time dunng 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 subject to inspection by the Fire Department. The premises shall also be equipped with an operational secunty alarm. Ordinance No. 2233-02 8-431. 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. The pawnbroker shall not purchase or receive personal property of any nature on deposit or pledge from any minor. (c) Prohibited Goods. No licensee under this Section shall accept any item of property which contains an altered or obliterated senal number or "Operation Identification" number or any item of property whose senal number has been removed. (d) 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 secunty interest. For the purpose of this section, "secunty interest" means an interest in property which secures payment or other performance of an obligation (e) True Owner. No licensee nor any agent or employee of a licensee shall purchase, accept, 01 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 (f) 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 a current valid photo driver's license or a current valid state photo identification card from any state or from any province of Canada. 8-432. Inspections by Police or Claimed Owner. (a) Premises. Any licensee shall, at all times dunng 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 authonzed in Section 8-430 (s), dunng 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 venfy compliance with this Section or other applicable laws. No licensee shall conceal any article in his possession from the police department. (b) Properly. All articles of property coming into the possession of any licensee shall be open to inspection and nght 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 8-433. 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 a current valid photo driver's license or a current valid state photo identification card from any state or from any province of Canada. Ordinance No. 2233-02 -9- (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. 8-434 Required Signage. (a) All licensees shall by adequate signage and separate wntten 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, compnsed of lettenng 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. VIOLATION OF ANY OF THESE REQUIREMENTS IS A CRIME. (2) For the purpose of this Subsection, "separate wntten notice" shall be deemed to lb mean either the receipt, as required in Section 13-1320. 12 (E), or a pnnted 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. 8-435 General Restrictions. (a) 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 pnce for which the item sold; or (5) Make a loan on a pledge to a minor. 8-436 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. Ordinance No. 2233-02 tfh its't z �a7 ' if —10- (b) A revocation or suspension by the City Council shall be preceded by wntten 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. 8-437. Penalty. Violation of any provision of this Section shall be a misdemeanor. Section 3. Effective Date This ordinance shall be effective fifteen days after passage and publication. Reviewed for Administration. Adopted by the City Council November 18, 2002 /City Manager Attest: Ci ' Clerk May pprov as to form and execution: • STATE OF MINNESOTA) ss. newspapers AFFIDAVIT OF PUBLICATION COUNTY OF HENNEPIN) Richard Hendrickson, being duly sworn on an oath states or affirms, that he is the Chief Financial Officer of the newspaper known as Sun -Sailor , and has full knowledge of the facts stated below: (A) The newspaper has complied with all of the requirements constituting qualification as a qualified newspaper, as provided by Minn. Stat. §331A.02, §331A 07, and other applicable laws, as amended. (B) The printed public notice that is attached was published in the newspaper once each week, for one successive weeks, it was first published on Thursday, the 28 day of November , 2002, and was thereafter printed and published on every Thursday to and including Thursday, the day of , 2002, and printed below is a copy of the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the size and kind of type used in the composition and publi - = he notice: • abcdefghikhnnopgrst Subscribed and swornt r affirme before me on this b day of YJL @ , ', 2002. BY: CFO k� PUMW �n vhl stJ✓s.P.PI V MERIDEL M HEDBLO NOTARY PUBLIC MINNESOTA MY COMMISSION EXPIRES 1 31-2005 `dvArdyivon" "Atvv VVW/VVd nAN. RATE INFORMATION (1) Lowest classified rate paid by commercial users for comparable space (2) Maximum rate allowed by law (3) Rate actually charged $ 2 85 per line $ 6 20 per line 1 40 per line City of SL Louis Park (Official Pubhcation) SUMMARY ORDINANCE NO/ 2 '2 AN ORDINANCE AMENDING -CHAPTER 8, ARTICLE II, SUBDIVISION XII OF THE ST. LOUIS PARK MUNICIPAL CODE This ordinance states that Chapter 8, Article II, Subdivi- sion XII of the St Louis Park Municipal Code be amended by repeating Sections 8-421 through 8-425 and adding Sec- tions 8-421 through 8-437 relative to Pawnbroker regulations, licenses and fees, transactions, general operatuig requirements, inspections, restrictions, required signage and penalties for violations This ordinance shall take effect 15 days after publication Adopted by the City Council November 18, 2002 Jeffrey W Jacobs /s/ Mayor A copy of the full text of this ordinance is available for in- spection with the City Clerk (November 28, 2002)A3/ Pawnbrokers