HomeMy WebLinkAbout2004-16 07-26 CCOCITY OF BROOKLYN CENTER
Notice is hereby given that a public hearing will be held on the 26th day of July 2004 at 7
p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek
Parkway, to consider An Ordinance Amending Chapter 23 of the City Ordinances of the City
of Brooklyn Center Relating to the Licensure of Pawnbrokers.
Auxiliary aids for persons with disabilities are available upon request at least 96 hours in
advance. Please contact the City Clerk at 763 -569 -3300 to make arrangements.
ORDINANCE NO. 2004 -16
AN ORDINANCE AMENDING CHAPTER 23 OF THE CITY
ORDINANCES OF THE CITY OF BROOKLYN CENTER RELATING TO
THE LICENSURE OF PAWNBROKERS
THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS
FOLLOWS:
Section 1. Chapter 23 of the City Ordinances of the City of Brooklyn Center
is hereby amended by adding the following paragraphs:
PAWNBROKERS
Purpose. The City Council finds that use of services provided by pawnbrokers provides an
opportunity for the commission of crimes and their concealment because pawn businesses
have the ability to receive and transfer property stolen by others easily and quickly. The City
Council also finds that consumer protection regulation is warranted in transactions involving
pawnbrokers. The City Council further finds that the pawn industry has outgrown the City's
current ability to effectively or efficiently identify criminal activity related to pawnshops.
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 City 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).
Section 2. Section 23 -601 is hereby amended in the following manner
Section 23 -601. DEFINITIONS. For the purpose of Sections 23 -601 through 23-
630[ i the terms defined in this section have the meanings given them.
ORDINANCE NO. 2004 -16
I a. Pawnbroker. [1$:;rrr rfr° rr: currr4 a person. r who as rac d ;poc
pledge of pe •sar i t.( property, or r tl c t {Ara l l 'lrt plc rls in the
purcliasing of °perssonal. property crtlrcr alarablL tlrir cc ar itit:rr t i`scllir
tire, s rle back ain at price or who
chattel mortgage an personal properly, taking possession
any part so mortgaged.] Any natural person, partnership or corporation, either
as principal, or agent or employee thereof, who loans money on deposit or
pledge of personal property, or other valuable thing, or who deals in the
purchasing of personal property, or other valuable thing on condition of
selling the same back again at a stipulated price, or who loans money secured
by chattel mortgage on personal property, taking possession of the property or
any part thereof so mortgaged. To the extent that a pawnbroker' s business
includes buying personal property previously used, rented or leased, or selling
it on consignment, the provisions of this section shall be applicable.
b. Reportable Transaction. 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 or redeemed, or for which a
unique transaction number or identifier is generated by their point -of -sale
software, or an item is confiscated by law enforcement, 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.
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.
c. Billable Transaction. Every reportable transaction conducted by a
pawnbroker is a billable transaction except renewals, redemptions, or
extensions of existing pawns on items previously reported and continuously in
the licensee's possession, voided transactions, and confiscations.
Section 3. Section 23 -603 is hereby amended in the following manner
Section 23 -603. LICENSE FEE.
Subdivision 1. The annual fee for a pawnbroker shall be set by the City Council
by resolution.
ORDINANCE NO. 2004 -16
Subdivision 2. In addition to the annual license fee, a billable transaction fee
shall be imposed on each transaction.
a. The billable transaction fee shall reflect the cost of processing
transactions and other related regulatory expenses as determined by the
City Council and shall be reviewed and adjusted, if necessary, every six
'6) months. Licensees shall be notified in writing thirty (30) days before
any adjustment is implemented.
b. Billable transaction fees shall be billed monthly and are due and payable
within thirty (30) days. Failure to do so is a violation of this section.
Section 4. Section 23 -606 is hereby amended in the following manner:
Section 23 -606. SITE PLAN.
Subdivision 2. BUSINESS AT ONLY ONE PLACE. A license under this section
authorizes the licensee to carry on its business only at the permanent place of business
designated in the license. However, upon written request, the City Manager's
designee may approve an off -site locked and secured storage facility. The licensee
shall permit inspection of the facility in accordance with Section 23 -627. All
provisions of this section regarding record keeping and reporting apply to the facility
and its contents. Property shall be stored in compliance with all provisions of the
City Code. The licensee must either own the building in which the business is
conducted, and any approved off -site storage facility, or have a lease on the business
premise that extends for more than six (6) months.
Section 5. Section 23 -615 is hereby amended in the following manner
,rd n oe°cs :i
pa nbroEre at he
ind ;lihl lediu T in
ifo ati n.]
[a. Tinkle and a curate. des ri.,ption. o tl it It :[1.1n g, but nor hi z:i i
tilication n r b r, serial on ra owner applied iie s riI r
s l n rt' be r, brand .nne. and/or oth
Ian >tia�;
h tt -nl;]
ORDINANCE NO. 2004 -16
l number f
[b
address, t' ,siclence phone number and date of birth s f the
the item was received]
any of the low i icr
[2, ()(ficial suite photo identification pass nni:l iti.rr
.iks, pis well as the r c �ls re i 1 nii st be ripen i r i spectiori
department during busi is s I furs. The records require
t
be stored rtrcl tai <i:ii fait ccl by the iiee see: is r a period of
three ye 3trs,]
A a t2l roker nut tl1.e. eon
ph c toe.raphic record of tl sc is r, the identific:
rec i t i. 11 ii. split Ming. "pl c t raiphic device,
the i enlifieati 'sti used, and
a
provide
concl and receipts must
zil ie h.ei printed. aricl i i zst bear tlic lat cif° the t:raii ar tic k. The exposed.
film or %i a •tt tpe us
€)rt year aftei
turned over tc ti aut horized peace officer a on dem ind,
the retention perk
iod.1
pao•D fee
Section 23 -615. RECORDS REQUIRED.
Subdivision 1. 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 City.
a. 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.
ORDINANCE NO. 2004 -16
b. The purchase price, amount of money loaned upon, or pledged therefor.
c. The maturity date of the transaction and the amount due, including monthly
and annual interest rates and all pawn fees and charges.
d. 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.
e. 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
f. The identification number and state of issue from any of the following forms
of identification of the seller:
1. Current valid Minnesota driver's license.
2. Current valid Minnesota identification card.
3. Current valid photo identification card issued by another state or
province of Canada.
The signature of the person identified in the transaction.
h. Effective sixty (60) days from the date of notification by the City of
acceptable video standards 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 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 City
Manager's 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
ORDINANCE NO. 2004 -16
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 kee the ex.osed videota.e for three 3 months.
Digitized Photographs. Effective sixty (60) days from the date of notification
by the City licensees must fulfill the color photograph requirements in Section
23 -615 Subdivision 1(h) 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 Section 23 -615 Subdivision 1(h).
j. 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.
k. Inspection of Records. The records must at all reasonable times be open to
inspection by the City Manager's designee. 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 ninety (90) days.
Subdivision 2. 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
City, whichever is applicable, and the date the item is out of pawn or can be sold, if
applicable. Labels shall not be re -used.
Section 6. Section 23 -616 is hereby amended in the following manner
()1 r] AND EXEMPTIONS]
L
IA corn tQ.r
daily bas.. s, I t c t Ju(er
the Brooklyn. i.; ;txt :r Poli p €rrt; .ent:.
computer systern. The report shall z.
Section 23 -616. DAILY REPORTS.
niU t h .repol7ted on the
ORDINANCE NO. 2004 -16
Subdivision 1. Effective no later than sixty (60) days after the City provides licensees
with the current version of the Automated Pawn System Interchange File
Specification, licensees must submit every reportable transaction to the City daily in
the following manner
a. Licensees must provide to the City all reportable transaction information by
transferring it from their computer to the Automated Pawn System via modem
using the current version of the Automated Pawn System Interchange File
Specification. 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. Any transaction that does
not meet the Automated Pawn System Interchange File Specification must be
corrected and resubmitted the next business day. The licensee must display a
sign of sufficient size, in a conspicuous place in the premises, which informs
patrons that all transactions are reported to the police department daily.
Subdivision 2. Billable Transaction Fees. Licensees will be charged for each billable
transaction reported to the City.
a. If a licensee is unable to successfully transfer the required reports by modem,
the licensee must provide the City,upon request, printed copies of all
reportable transactions, along with the video tape(s) for that date, by 12:00
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
continue to provide the required reports as detailed in Section 23 -616
Subdivision 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 continue to provide the required reports as detailed in Section 23 -616
Subdivision 2(a), and resubmit all such transactions via modem when the error
is corrected.
d. 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.
e. Section 23 -616 Subdivision 2(a) through (c) notwithstanding, the City may,
upon presentation of extenuating circumstances, delay the implementation of
the daily reporting penalty.
ORDINANCE NO. 2004 -16
Section 23 -618. 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.
The address and telephone numh r- of the business:
[L°
[d, A comp iet and <ac:cu €°gate descripti
and serial €rnhe:r if indicated Sara th
[e
[1
[i.
Section 7. Section 23 -618 is hereby amended in the following manner:
Section 8. Section 23 -619 is hereby amended in the following manner:
RECEIPT. s :ices .d l a nl roI er €nu
incl
Iedgor e 1 s
ra ature
r
her,
ind c:
fading Sun'
address,
r pra.€ iaas tr <a
pry
and e
A desca °il ti afthe pled§ r iaac:l a l:in£ apt €e i aat iaeil
The amt. nt paid gar ad•vanc .d°I
he t la °its- date aaad is €a naa€ t due and the €xmon:ihly a €a
ephone number',
the seiiei
he items purchased iaaduding model
ORDINANCE NO. 2004 -16
In a(ld %t:io
3.
"Any personal prop rt ;le l ed to ,a pawnhr
subject to stile or disposal -hen Cher
t -count 1bl
pawl rlsactlou rencwal, or
`:(:There is rtc obli4; ma for ti
pleedror ci this its rr9ttc sts tbat
ei�cttrnhrances d g inst it, and the pleclgor has
the
f. The amount advanced or paid.
pay' era nitrate
vast t he
s nec essar
and si r ecl f
°opert to pers
idcirtifzeel i
edgor at the
o r. 'r °it.ter:
°edeer only by the pledgor to 'horn the rac;
rs0n identiii
ni the prop
writing by the
and
e of t
author "ir
pledg.or mils' he
Section 23 -619. 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:
a. The name, address, and telephone number of the licensed business.
b. The date and time the item was received by the licensee.
c. Whether the item was pawned or sold, or the nature of the transaction.
d. 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.
e. The signature or unique identifier of the licensee or employee that conducted
the transaction.
g. The monthly and annual interest rates, including all pawn fees and charges.
ORDINANCE NO. 2004 -16
h. The last regular day of business by which the item must be redeemed by the
pledgor without risk that the item will be sold, and the amount necessary to
redeem the pawned item on that date.
i. The full name, current residence address, current residence telephone number,
and date of birth of the pledgor or seller.
i. The identification number and state of issue from any of the following forms
of identification of the seller:
1. Current valid Minnesota driver's license.
2. Current valid Minnesota identification card.
3. Current valid photo driver's license or identification card issued by
another state or province of Canada.
k. Description of the pledgor or seller including sex, race, color of eyes, color of
hair, approximate height and weight.
1 The signature of the pledgor or seller.
m. All printed statements as required by Minnesota Statutes, Section 325J.04
Subd. 2, or any other applicable statutes.
71_ t" l l)l_.l( °E ORDERS. If <z C..`
notifies a
premises until
verbal, should be
to be held. i:it)(t the reas fs
Section 9. Section 23 -620 is hereby amended in the following manner:
C heal 1101,
3 by
1
Section 23 -620. POLICE ORDER TO HOLD PROPERTY.
'4) days sating
Subdivision 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 23 -620.,
Subdivision 2, whichever comes first.
ORDINANCE NO. 2004 -16
Subdivision 2. Order to Hold. Whenever the City Manager'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 City Manager's designee. The order
to hold shall expire ninety (90) days from the date it is placed unless the City
Manager's designee determines the hold is still necessary and notifies the licensee in
writing.
Subdivision 3. Order to Confiscate. If an item is identified as stolen or evidence in a
criminal case, the City Manager's designee may:
a. Physically confiscate and remove it from the shop, pursuant to a written order
from the City Manager's designee, or
b. Place the item on hold or extend the hold as provided in Section 23 -620,
Subdivision 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 City Manager's designee
shall so notify the licensee.
[[iis[r
unsoitti nun
Section 10. Section 23 -624 is hereby amended in the following manner
24.
n 1, i-
skc`r, A aNv3i.brok.
ri
[S stop :ship:
'operty that i. s not their )`:t%n]
S[lAt1E.]
A lino
d pars
1
od.s t
It; t
n: A pawnb r
sport of military L1).]
r deposit an
ORDINANCE NO. 2004 -16
[Subdivision. 5. Sty
violation of this s
Section 23 -624. PROHIBITED ACTS AND SIGNAGE.
To pawn or sell property:
a. No person under the age of eighteen (18) 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 (18) years.
b. No licensee may receive any goods from a person of unsound mind or an
intoxicated person.
c. No licensee may receive any goods, 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 providence of residency of the person from whom the item was
received.
d. No licensee may receive any item of property that possesses an altered or
obliterated serial number or operation identification number or any item of
property that has had its serial number removed.
e. No person may pawn, pledg sell, consign, leave, or deposit any article of
property_ not their own; nor shall any person pawn, pledge, sell, consign,
leave, or deposit the property of another, whether with permission or without;
nor shall any person pawn, pledge, sell, consign, leave, or deposit any article
of property in which another has a security interest; with any licensee.
f. No person seeking to pawn, pledge, sell, consign, leave, or deposit any article
of property with any licensee shallgive 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.
Signage: A sign must be conspicuously posted on each
licensed premises that is not less than four feet square in surface area,
comprised of lettering not less than 3 /4" high stating the following:
A. You must be at least 18 years of age.
B. You must be the true owner of the property.
C. The property must be free of all claims and liens.
D. You must present valid photo identification.
ORDINANCE NO. 2004-16
E. Violation of any of these requirements is a crime.
F. All transactions are reported to police department daily.
Section 11. Section 23-625 is hereby amended in the following manner
Section 23-625. LICENSE DENIAL, SUSPENSION OR REVOCATION. A license under
this section may be denied, suspended or revoked by the City Council after a public hearing
where the licensee is granted the opportunity to be heard, for one or more of the following
reasons:
[a. Th.c operation of the business is in conflict with. any lift of this
ordinance].
lib
'The: operation of the business :is in conflict with any health, building,
1..‘mtintenance, zoning, or other provision of this ordinance or .1.a..w:]
EC The licensee or the business premise fails to conform with the standards fix
license application contained :in this section]
[d. Th.e licensee has 'failed to comply with one or more provisions oI this section.
or any St4:ititte, rule or ordinance pertaining to •the business of pawnbrok.er]
[e. .Fraud, misreprusentation or bribery in securing a license]
Fraud, misrepresentation or false sta'et.".'ints intide in I... r course of the
applicant's business]
[g. Subject to the proYisions of iaw, he licensee has been eonvicted of any state
or federal law relating to receiving sole property, sale of stolen property or
controlled substances, burglary. robbery, theft damage Or trespass to property,
operation of a busilesS, of any law or ordinance regulating, the business of
pawnbroker]
a. The proposed use does not comply with the any applicable zoning code.
b. The proposed use does not comply with any health, building, building
maintenance, or other provisions of this Code of Ordinances or state law.
c. The applicant or licensee has failed to comply with one or more provisions of
Sections 23-601 through 23-630.
ORDINANCE NO. 2004 -16
d The applicant is not a citizen of the United States or a resident alien, or upon
whom it is impractical or impossible to conduct a background or financial
investigation due to the unavailability of information.
e. Fraud, misrepresentation or bribery in securing or renewing a license.
f. Fraud, misrepresentation, or false statements made in the application and
investigation for, or in the course of, the applicant's business.
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.
h. The owner of the premises licensed or to be licensed would not qualify for a
license under the terms of this section.
Section 12. Section 23 -626 is hereby amended in the following manner:
Section 23 -626. REDEMPTION PERIOD. I:\. on INho
90 thi s to ro,..keni tz. kern h.1oreit11aybeso Rcdeinption ziid o ptin
shall otherwise o ;g erned by Minnesota Statutes. Chapter 1125.1.] Any person pledging,
pawning, or depositing an item for security 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. During the
ninety (90) day holding period, items may not be removed from the licensed location except
as provided in Section 23 -606 Subdivision 2. 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 pledgor at the time of the initial transaction
and signed by the pledgor, or with approval of the City Manager's designee. Written
authorization for release of property to persons other than original pledgor must be
maintained along with original transaction record in accordance with Section 615
Subdivision 1(j).
Section 13. Section 23 -627 is hereby added as follows:
Section 23 -627. 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 23 -606
Subdivision 2 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 section or other applicable laws.
ORDINANCE NO. 2004 -16
Section 14. Section 23 -628 is hereby repealed as follows:
purpose
Adopted this 26 day of July, 2004.
ATTEST:
11 pr
prr poly des t t d e..
s premises •u der this
business 1 rrr: a a ith rrt a
c,i the rec :ds and ar -1es there]
Section 15. Section 23 -629 is hereby renumbered to Section 23 -628.
Section 16. Section 23 -630 is hereby renumbered to Section 23 -629 and
amended in the following manner:
Section 23- 6[30]29. SEVERABILITY. If any part of Sections 23 -601 through 23 -6301 I
shall be adjudged to be invalid by a court of competent jurisdiction, such judgment or decree
shall not affect or impair the remainder of said sections.
Section 17. Section 23 -631 is hereby renumbered to Section 23 -630 and
amended in the following manner:
Section 23-631110. PENALTIES. Any person violating any provision of Sections 23 -601
through 23-630[1] shall be guilty of a misdemeanor, and upon conviction thereof, shall be
punished by a fine of not more than one thousand dollars ($1,000) and imprisonment for not
more than 90 days, or both, together with the cost of prosecution.
Section 18. This ordinance shall be effective after adoption and thirty days
following its legal publication.
Mayor 7
Date of Publication: August 5, 2004
Effective Date: September 4, 2004
(Brackets indicate matter to be deleted, underline indicates new matter.)