HomeMy WebLinkAboutItem 06.dJune 23, 2011
Proposed Action
Staff recommends adoption of the following motion: Adopt ordinance amending Title 3,
Chapter 15 of the Lakeville City Code concerning pawnbrokers /precious metal dealers.
Passage of this motion will bring our City Code into compliance with State Statute.
Overview
A new law, Chapter 82, amends provisions in Minnesota Statutes, section 325J, which
address both the conduct and regulation of pawnbrokers in Minnesota. The attached
ordinance amendment changes the redemption period in our City Code from 120 days
to 60 days, consistent with Minnesota Statutes.
The City Attorney has reviewed the ordinance amendment and recommends approval.
The City of Lakeville has no pawnbrokers /precious metal dealers currently licensed.
Primary Issues to Consider
Can the City choose to be more restrictive than State Statute?
Minnesota Statute generally allows cities to adopt ordinances that are more restrictive
than what is provided in the state statutes. However, local ordinances now must be
consistent in regard to the provisions in Minnesota Statute section 325J.08.
Supporting Information
ORDINANCE AMENDING TITLE 3, CHAPTER 15 OF THE
LAKEVILLE CITY CODE CONCERNING PAWNBROKERS
AND PRECIOUS METAL DEALERS
➢ Redlined ordinance showing the proposed change
➢ League of Minnesota Cities Article published June 15, 2011
ra
Charlene Friedges, City r erk
Item No.
Financial Impact: $ 0 Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.):
Notes:
ORDINANCE NO.
CITY OF LAKEVILLE
DAKOTA COUNTY, MINNESOTA
AN ORDINANCE AMENDING TITLE 3, CHAPTER 15
OF THE LAKEVILLE CITY CODE CONCERNING
PAWNBROKERS /PRECIOUS METAL DEALERS
THE CITY COUNCIL OF THE CITY OF LAKEVILLE, MINNESOTA ORDAINS:
SECTION 1. Section 3 -15 -12 of the Lakeville City Code is amended to read:
F. Redemption Period: Any person pledging, pawning or depositing an item for
security must have a minimum of aid 16,01,clays from the date of that transaction
to redeem the item before it may be forfeited and sold. During the,pixty (60) day
holding period, items may not be removed from the licensed location except as
provided in subsection 3- 15 -14A of this chapter. 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 subsection A10 of this section.
SECTION 2. This ordinance shall be effective immediately upon its passage and
publication.
ADOPTED this 5th day of July, 2011 by the City Council of the City of Lakeville,
Minnesota.
ATTEST:
Charlene Friedges, City Clerk
CITY OF LAKEVILLE
BY:
Mark Bellows, Mayor
Deleted: one hundred twenty (120)
Deleted: one hundred twenty (120)
Focus on New Laws: Pawnshops and Pawnbrokers Page 1 of 2
Focus on New Laws:
Pawnshops and Pawnbrokers
New legislation addresses the conduct and regulation of pawnbrokers in Minnesota.
(Published Jun 15, 2011)
LEAGUE or
MINNESOTA.
CITIES
A "pawnbroker" can be defined as someone who lends money on the security of pledged goods (items
that are "left in pawn "), and /or purchases goods on the condition that they may be redeemed or
repurchased by the seller for a fixed price, within a fixed period of time.
A new law, Chapter 82 (Link to: https://w ww.r evtsor.mn.gov/nws/?id= 82 &dootvpe = ehapte,- &year= 2otratype =o ) (SF 955), amends
provisions in Minnesota Statutes, chapter 325J , which address both the conduct and regulation of
pawnbrokers in Minnesota. The following will he of particular interest to cities that have elected to
regulate pawnbrokers within their jurisdiction.
Sale or removal of "pledged goods"
Chapter 82 amended Minnesota Statutes, section 325J.08 (Link In: Imps://www.revitornIn.goWstatutes/1/idr.325.L08) in
regard to the removal of pledged goods from a pawnshop (or other storage facility). While removal is
generally prohibited before expiration of the redemption period, the amendment clarifies that a
pawnbroker may:
• Return pledged goods to the borrower at any time during the redemption period.
• Sell or remove pledged goods from the pawnshop at any time after the expiration of the redemption
period.
• Sell or remove goods that were purchased, but not involved in a pawn transaction, at least 31 days
after the date of purchase.
City ordinances: Consistency with state statutes
Minnesota Statutes, section 325113 (Link to: https://www.revisornin.gov/statutest?id=325.113) generally allows cities to
adopt ordinances that are more restrictive than what is provided in the state statutes. However, local
ordinances now must be consistent in regard to the following two provisions in Minnesota Statutes,
section 325J.08 (as amended):
• Pawnbrokers must return goods (or provide compensation for lost or damaged goods) upon payment
of the full amount due, unless: (I) the 60 -day redemption period has expired, or (2) the goods have
been taken into the custody by a court, or by a law enforcement officer or agency.
• The sale or removal by the pawnbroker of pledged goods.
Casino proximity
Finally, Chapter 82 repealed Minnesota Statutes, section 325J.1O (Lin to. hops: / /www.revisormn /?
id= 321.I0 . Under that statute, pawnshops were prohibited within 10 driving miles of any gambling
casino. However, a city's land use and/or licensing regulations may still restrict the placement of
pawnshops within parts of the community.
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