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HomeMy WebLinkAbout0716 ORDINANCE NO. 716 CITY OF LAKEVIL,LE DAKOTA COUNTY, MINNESOTA AN ORDINANCE. AMENDING TITLE 3, CHAPTER 15 OF THE LAKEVILLE CITY CODE CONCERNING PAWNBROKERS AND PRECIOUS METAL DEALERS 'THE CITY COUNCIL OF THE CITY OF LAKEVILLE, MINNESOTA ORDAINS: Section 1. Title 3, Ghapter 15 of theZakeville City Code is hereby amended in its entirety' to read: CHAPTER 15 PAWNBROKERS/PRECIOUS METAL DEALERS 3-15-i: PURPOSE. The City. Council finds that the use of services provided by pawnbrokers and precious metal dealers 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 and precious metal dealers. The purpose of this Chapter is to prevent pawn and precious metal 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, andgeneral welfare ofthe 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 Chapter also implements and establishes the required use of the- Automated Pawn System (APSj. 3-15-2: DEFINITIONS: The following words and terms when used in this Ghapter 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. 100346.3 R~v:6/18/02 BII,LABLE 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 Lakeville. ITEM CONTAINING An item in whole or in part of metal and containing more than one PRECIOUS. METAL: percent (I%) by weight of silver,-gold, or platinum.... LICENSEE: The person, corporation, partnership,. or association to whom a license is issued under this Chapter, including any agents or employees of the person, corporation, partnership, or association. MINOR: Any natural person under the age of eighteen (18) years. PAWNBROKER: Any 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 wha loans money secured by chattel. mortgage or on personal property, taking possession of the property ar 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 Chapter shall. be applicable. Any bank, savings and loan association, or credit union .shall not be deemed a pawnbroker for purposes of this Chapter. PERSON: Any one or snore 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.. PRECIOUS METAL means any persan engaging in the business of buying secondhand DEALER: items containing. precious metal, including, but not.. limited to, jewelry, .watches, eating utensils, candlesticks, and religious and decorative objects. Persons conducting ..the following transactions shall not be deemed to be precious metal dealers: (1) transactions at occasional "garage" or "yard" sales, or estate sales or farm auctions held. at the decedent's residence, except that. precious metal dealers must comply with the requirements of Minn. Stat. 325F.734 to 325F.742, for these transactions; (2) transactions regulated by Minna Stat. § 80A; (3) transactions regulated by the Federal .Commodity Futures. Commission Act; 100346 2 (4) transactions involving the purchase of precious metal grindings, filings, slag, sweeps, scraps, or dust from an industrial. manufacturer, dental lab, dentist, or agent thereof; (5) transactions involving the .purchase of photographic film, such as lithographic and X-ray film,. or silver residue or flake recovered in lithographic and X-ray film processing; (6) transactions involving coins, bullion, or ingots; (7) ransactions in which .the secondhand item containing precious metal is exchanged for a new item containing precious metal and .the value of the .new item exceeds the value of the secondhand item, except that a person who is a precious-metal dealer by engaging in a transaction which. is not exempted by this Section must comply with the requirements of Minn. Stat. 325F.734 to 325F.742; (8) transactions between precious metal dealers if both dealers are licensed under Minn. Staf. § 325F.733, or if the seller's business is located outside of the-state and thee: item is shipped from outside the state to a dealer licensed under Minn. Stat. § 325F.733; (9) transactions in which the buyer of the secondhand item containing. precious metal is engaged primarily in the business of buyingand selling antiques, and the items are resold in an unaltered condition except for repair, and the items are resold at retail, and the buyer paid less than $2,500 for secondhand items containing precious metals purchased within any period of twelve (12) consecutive months. PRECIOUS METALS: means silver, gold, or platinum. 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, or for which a unique transaction number or identifier is generated by their point-of--sale software, is reportable, 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. 100346 3 (2} Retail and wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption periods have expired. 3-15-3: LICENSE REQUIRED: No person shall. exercise, carry-oq or be engaged in the trade or business of pawnbroker or precious metal dealer within the City unless such person is currently licensed under this .Chapter. 3-15-4: APPLICATION CONTENT: A. Contents. In addition to any information that may be required by the County pursuant to Minn. Stat. § 4'71,924,. every application for a license under this Chapter shall be made on a form supplied by the City and shall contain the following information:. 1. If the applicant is a .natural person:. a. the name; place, and date of birth, street resident address, and telephone number of the. applicant; b.. whether the applicant is a citizen of the United States or a resident alien; c. 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; d. 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; e. the street addresses at which the applicant has lived during the preceding five (5) Years; f. 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; g. whether the applicant has ever been convicted of a felony, crime, or violation ofany ordinance other than a traffic ordinance. If so, the applicant must furnish information as to the time, place, and offense of all such convictions; h. the physical description of the applicant; i. applicant's current personal. financial statement and true copies of the applicant's federal. and state tax returns for the two (2) years prior to application; 100346 4 j. If the applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required in a. through h. of subdivision (1) of this Section 2. If the applicant is a partnership: a. the name(s) and address(es) of all general and limited partners and all information concerning each general partnerrequired in subdivision 1 ofthis Section; b. the name(s) of managing partner(s) and the interest of each partner in the pawnbroker or precious metal business; c. 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; d. a true copy. of the federal and state tax returns for partnership for the two (2) years prior to application e. if the applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required. in a. through h. of subdivision L 3. Ifthe applicant is a corporation or other organization: a. the name of the. corporation or business form, and if incorporated, the state of incorporation;- b. a true copy ofthe 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; c. the name ofthe manager(s), proprietor(s), or other agent(s) in charge ofthe business and alt information concerning each manager, proprietor, or agent required in a. through h, of subdivision 1 of this Section; d. 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 subdivision l of this Section. 4. For all applicants: a. whether the applicant holds. a current pawnbroker, precious metal dealer or secondhand goods dealer license from any other governmental unit; 100346 5 b. whether the applicant has previously been denied or had revoked or suspended, a pawnbroker, precious metal dealer, or secondhand dealer license from this or any other governmental unit;. c. 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; d. the location of the business premises; e. the legal description of the premises to be licensed; f. the location at which the applicant's business records are maintained; g. if the applicant does not own the licensed premises, a true and complete copy of the executed lease; h: whether all real estate and personal property taxes that are due and payable for the premises Lobe .licensed have been paid, and if not paid, the years and amounts that are unpaid; i. 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 to the issuing authority; j. such other information as the City Council or issuing authority may require. B. Manager/New Manager. When a licenseeplaces 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 within fourteen (14) days. The manager shall be subject to the investigation required by this Section, and to payment ofthe investigation fee requiredbythis Chapter, which shall be paid in advance. 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 may be 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. 100346 3-1S-S: APPLICATION EXECUTION: All applications for a license under this Chapter shall be signed and sworn to under oath or affirmation by applicant. 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. 3-15-6: 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 repork 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. 3-15-7: 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 (IO) days in advance of the City Council hearing on an application, the issuing authority shalt 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 canducted. At the hearing, opportunity shall be given to any person to be heard for or against the granting of the license. Additionalhearings 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. 3-15-8: RENEWAL APPLICATION:. A. .All licenses issued under this Chapter shall be effective for one year from the date of .approval by the City Council. 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 Chapter are complied with, .grant the renewal application. 100346 7 B. A license under this Chapter may not be renewed: 1. if the City Council determines that the licensee has failed to comply with the provisions of this Chapter 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. 3-15-9: FEES. A Invest~ation 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 at a rate set by City Council resolution to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to assure compliance with this Chapter. B. License Fee: L The annual license fee shalCbe set by City Council resolution. The license fee shall be paid annually, to be determined from the date of issuance of the license. 2. The annual license fee shall be paid in full before the license is effective. C. Billable Transaction Fees: L 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 Chapter. 2. The billable transaction fee shall reflect the cost of processing transactions and other related regulatory expenses as determined and set by City Council resolution. Licensees shall be notified in writing thirty (30) days before any adjustment is implemented. 100346 g 3-15-10: 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 on the licensee observing all ordinances of the City and all laws relating to the business of pawnbroker or precious metal dealer, and the licensee accounting for and delivering to any person legally entitled thereto any articles which may have come into the possession of the licensee as pawnbroker or precious metal dealer, or in lieu thereof such licensee paying 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. 3-15-11: PERSONS AND LOCATIONS INELIGIBLE FORA LICENSE. A. No license. under this Chapter shall be issued to an applicant who is a natural person. if such applicant, a partnership if such applicant has any general partner or managing partner, a corporation or other organization if such applicant has any manager, proprietor or agent in charge of the business to be licensed, if the applicant: 1. Is a minor at the time the application is filed; or 2. Has been convicted ofany 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 or precious metal dealer as prescribed by Minn. Stat. § 364:03, Subd. 3. B. The following locations shall be ineligible for a license under this Chapter: 1. No license shall be granted or renewed :for operation. on any property on which taxes, assessments, or other financial claims of the State, County, School District, or City are due delinquent, or unpaid. In the event a suit has been commenced under Minna Stat. 278.01 to 278.03,: questioning the amount or validity of taxes, the City Council may on application waive strict compliance with this provision; no waiver may be granted, however, for taxes or any portion thereof which remain unpaid for a period exceeding one year after becoming due. 2. No license shall be granted or renewed if the property on which the business • is to be conducted is owned by a person who is ineligible for a license under any of .the requirements in subparts A of this Section, except that a property owner who is a minor or who has been convicted of a crime, other than a crime involving theft, shall. not make the premises ineligible under this subsection. 100346 9 3-15-12: 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 andlor 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 any of the following forms of identification of the seller: a. Current valid Minnesota driver's license; b. Current valid Minnesota identification card; c. Current. valid photo identification card issued by another-state or_a province of Canada. 7. The signature of the person identified in the transaction. S. 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 100346 l photographs must be available to the chief of police,. or the chief s designee, upon :request. The major portion of the photograph must include an identifiable front facial. close-up ofthe 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 conspicuousplace on the premises. The licensee must keep the exposed videotape far three (3) months, and furnish it to the police department upon request. 9. Digitized ph©tographs. Effective sixty (60) days from the date of notification by the police department licensees must fulfill the color photograph requirements in Subsection 3-15-12(A)($) by submitting them as digital images, in a format specifiedby 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 3-15-12(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. Inspection of Records. The pawnbroker or precious metal dealer shall make availablethe information required in subpart A ofthis Section at all reasonable times for inspection by the Lakeville Police Department or issuing authority. 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. C. 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. T00346 1 1 D. Daily Reports to Police. 1. Licensees must submit every reportable transaction to the police: department daily in the following manner: a. Licensees must provide to the police department all information required in Section 3-15-12(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 informsall 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. a. If a licensee is unable to successfully transfer the required reports by modern, the licensee must providethe police department printed copies of all reportable transactions along with the video tape(s). for that date, by noon the next business day; b. 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 3-15-12(D)(2)(a), and must be charged a fifty'dollar ($50.00) reporting failure penalty, daily, until the error is corrected; or c. If the problem is determined to be outside the licensee's system, the licensee must provide the required reports in Section 3-15- 12(D)(2)(a); and resubmit. all such transaction via modem when the error is corrected. d. If a licensee is unable to capture, digitize or transmit the photographs required in Section 3-15-12(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 Iepartment upon request. e. 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. 100346 12 f. Section 3-15-12(D)(2)(a) through (c) notwithstanding, the Police Department may, upon presentation of extenuating circumstances, delay the implementation of the daily reporting penalty. E. Receipt Reduired. Every licensee must provide a receipt to the party identified in every reportable transaction and must maintain a duplicate ofthat receipt for three (3) years. The receipt must include at least the following information: 1. The name, address and telephone number ofthe licensed business. 2. The date and time the item was received by the licensee. 3. Whether the item was pawned ar 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. a. Current valid Minnesota driver's license; b. Current valid Minnesota identification card; c. Current valid photo driver's license or identification card issued by another state or a 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. 100346. 13 13. Alt printed statements as required by Minnesota Statute 3257.04, 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: 3-15-14(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 3-15-12(A)(10). G. Holdin Pg eriod. 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 initialnotification, or until the investigative order is canceled, or until an order to hold/confiscate is issued, pursuant to Section 3-15-12(H)(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 chiefs 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. 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 chief s designee, or b. Place the item on hold or extend the hold as provided in Section 3- 15-12(II)(2), and leave it in the shop. When an item is confiscated, the person doing so sha}1 provide identification upon request of the licensee, and shall provide the licensee the name and phone 100346 1 4 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 ofpolice, or chiefs designee shalt so notify the licensee. I. Label R .aired. 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. J. License Dis~lav. A license issued under this Chapter 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. K. Responsibility of Licensee. A licensee under this Chapter 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. L. Gambling. Na licensee under this Chapter 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. M. Penalty for Property Owner. 1t is unlawful for any person who owns or controls real property to knowingly permit it to be used for pawn brokering or dealing in precious metals without a license. N. 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) offpremises locked and secured facility in which the licensee may store only cars, boats, and othermotorized .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 andlor fire regulations. and in an orderly manner. The premises shall also be equipped with an operational security alarm. O. Reauired Signa~e. 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. 100346 15 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 PAWNOR 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 written notice" shall be deemed to mean either the receipt, as required in Section 3-15-12(E), or a printed form, incorporating a statement to the effectthat the person pawning, pledging; selling, leaving, or depositing the article is at least eighteen (I8) 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. 3-15-13: RESTRICTED TRANSACTIONS A. Hours and Days of Operation. No pawnbroker or precious metal dealer shall keep the pawnbroker or precious metal dealer business open for the transaction of business on any day of .the week before 7:00 a.m. or after 10:00 p.m. No pawnbroker or precious metal dealer shall be open for the transaction of business on Sundays. B. Minors. No person under the age of eighteen years may pawn or sell or attempt to pawn or sell goods with any licensee, nor may any licensee receive any goods from a person under. the age of eighteen years. C. Incompetent Persons. A pawnbroker or precious metal dealer shall not purchase or receive personal property on deposit or pledge from any incompetent'person or intoxicated person, D. Prohibited Goods. No licensee under this Chapter shall accept any item ofproperty which contains an altered or obliterated serial number or "Operation Identification" number or any item. ofproperty 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 ofproperty knowing, or having reason to know, that the article ofproperty 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. 100346 16 F. True Owner. L No licensee nor any agent or employee of a licensee shall .purchase, accept, or receive any article ofproperty, from any person, knowing, or having reason to know, that said person is not the true and correct owner. of the property. 2. No person .may pawn, pledge, sell, leave, or deposit any article ofproperty 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. G. Proper Identification. I. No licensee nor any agent or employee of a licensee shall purchase, accept, or receive any article ofproperty, from. any person, unless the seller presents identification in the form of a-valid driver's license, a valid State of Minnesota identification card, or current valid photo driver's license or identification card issued by the state or province of residency of the person from whom the item. was received. 2. 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. H. Pa, m~ bX Check. Payment of more than Two Hundred Fifty Dollars ($25.0.00) 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. L Restrictions on Sale. Pawnbrokers and precious metal dealers shall suspend for one (1) year, any business transaction with any person who has sold and/orforfeited on six (6) previous. occasions articles for which the person received $25.00 or more per transaction within a single six (6) month period. J. False Identification. No person seeking to pawn, pledge, sell, consign, 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 or altered. identification, or the identification of another; to any licensee. K. General Restrictions for Pawnbrokers. No pawnbroker licensed under this Chapter shall: I . 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; 100346 17 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 L. .General Restrictions for Precious Metal Dealers. No precious metal dealer licensed under this Chapter shall knowingly possess stolen goods. 3-15-14: INSPECTIONS 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 3-15-12 (ICI), during normal. business hours, except in an emergency, for the purpose of inspecting such premises and inspecting .the articles and records thereinto locate goods suspected or alleged to have been stolen. and to verify compliance with this .Chapter 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. 3-15-15: RESTRICTIONS REGARDING LICENSE TRANSFER Each license under this Chapter 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.. 3-15-16: DENIAL, SUSPENSION OR REVOCATION OF LICENSE. A. .The City Council may deny, suspend or revoke a license issued under this Chapter upon one or more ofthe following reasons: L the proposed use does not comply with the City's zoning ordinance; 2. the proposed use does not comply with .any health, building, building maintenance or other applicable provisions of the City Code or state or federal law; 3. the applicant or licensee has failed to comply with one or more provisions of this Chapter; 4. fraud, .misrepresentation or bribery in securing or renewing a license; 5. fraud, misrepresentation or false statements .made in the application and investigation for, or in the course of, the applicant's business; 100346 1 g 6. the applicant is not a citizen of the United States or resident alien, or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information; 7. violation within the preceding five (5) years, of any law relating to theft, damage or trespass to .property, sale of a controlled substance, or operation of a business; 8. the owner of the premises licensed or to be licensed would not qualify for a license under the terms of this Chapter. 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 (I O) days' notice of the time and place of the hearing and shall state the nature of the charges against the pawnbroker. The notice maybe served upon the pawnbroker personally or by United States mail addressed to the most recent address of the business in the license application. 3-15-17: PENALTY. Violation of any provision of this Chapter shall be a misdemeanor. Section 2. Effective Date. This ordinance shall be effective immediately upon its passage and publication. ADOPTED this lst day of Ju1g , 2002, by the City Council of the City of Lakeville. CITY OF LAKEVILLE j ~ ~ ~ BY: / ~4 c;r> xt Robert D. hnson, Mayor ATTESTt ~ j. ! av: 'l~'I' ~ Charlene Friedges, City Cl rk toosa6 19 PUBLIC NOTICE CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA SUMMARY OF,ORDINANCE.NO. 716. AN ORDINANCE AMENDING TITLE 3 CHAPTER 15 OF THE LAKEVILLE CITY CODE, CONCERNING PAWNBROKERS AND PRECIOUS METAL DEALERS This ordinance readopts the chapter regulat- ing pawnbrokers and precious metal dealers with amendments implementing and estab- lishing the required use of the Automated Pawn System (APS), requiring City approval 01 managers, adding time periods for City Council action on license applications, includ- ing a bond requirement, adding additional license restrictions, and adding restrictions on transactions such as days and hours of opera- tion. A printed copy of the ordinance is available for inspection by any person during regular once hours at the office of the City Clerk. APPROVED FOR PUBLICATION this 1st day of July, 2002, by the City Council of the City of Lakeville. CITY OF LAKEVILLE BY: Robert D. Johnson, Mayor ATTEST: Charlene Friedges, City Clerk T567 7/13/02 AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA County of Dakota ) SS ERIC OLSON, being duly sworn, on oath says that he is an authorized agent and employee of the publisher of the newspaper known as Thisweek Newspapers, and has full knowledge of the facts which are stated below: (A)The newspaper has complied with all of the requirements constituting qualification as a legal newspaper. as provided by Minnesota Statutes 331 A.02, 331 A.07 and other applic- able laws, as amended. (B) The printed LP� which is attached was cut from the columns of said newspaper, and was printed and pub- lished once a rr— sure-es-ivo u eks; it was first published on Saturday, the 04\ day of V4i � and was thereafter printed and published on every Saturday to and including Saturday, the day of ; and print- ed 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 publication of the notice: abcdefghijklmnopgrstuvwxyz Subscribed BY le,f.e 6Z„, TITLE: General Manager and sworn to before me on this , rqbv a-- 15 day of Notary Public 1 ■ CAROL J. HAVERLAND NOTARY PUBLIC - MINNESOTA My Commission Expires 1-31-2005