Chapter 4.75
PAWNBROKERS
Sections:
4.75.010 License required.
4.75.020 Exemption.
4.75.030 Definitions.
4.75.035 Regulatory rule making – By chief of police.
4.75.040 License fees.
4.75.050 Location.
4.75.060 Application for license.
4.75.070 Criteria for denial or revocation of license.
4.75.080 Request for hearing.
4.75.100 Records required.
4.75.110 Records and articles to be available for inspection.
4.75.120 Seller or consignee to give true name and address.
4.75.130 Transcript to be furnished.
4.75.140 Retention of property.
4.75.150 Ammunition sales or storage.
4.75.160 Interest rates.
4.75.170 Police holds.
4.75.180 Transactions with prohibited persons.
4.75.190 Penalty.
4.75.010 License required.
It is unlawful for any person, firm or corporation to engage in the business of pawnbroker or secondhand dealer without first obtaining a license pursuant to the provisions of this chapter. [Ord. 2431, 1984].
4.75.020 Exemption.
This chapter shall not apply to any bona fide charitable or nonprofit organization, nor shall it apply to any merchants or dealers whose business is limited to used or secondhand clothing, or to any merchant or dealer whose business is limited to the sale of used or secondhand books. [Ord. 2431, 1984].
4.75.030 Definitions.
A. The term “pawnbroker” as used in this chapter, means and includes every person who takes or receives by way of pledge, pawn or exchange, goods, wares, or merchandise or any kind of personal property whatever, for the repayment of security of any money loaned thereon, or to loan money on deposit of personal property, or who makes public display of any sign indicating that he has money to loan on personal property on deposit or pledge.
B. The term “secondhand dealer” as used in this chapter, means and includes every person who as a business engages in the purchase, sale, barter, auction, sale on consignment, or otherwise exchanges secondhand goods, or who keeps a store, shop, room or other place where secondhand goods of any kind or description are bought, sold, traded or bartered, pledged, auctioned, sold on consignment, or otherwise exchanged; provided, however, that this term shall not apply to those persons engaged in the business of selling used or secondhand motor vehicles, boats and other recreational vehicles. Secondhand dealer also includes persons or entities conducting business at flea markets or swap meets, more than three times per year.
C. The term “secondhand goods” when used in this chapter means and includes any and all used, remanufactured, or secondhand goods purchased or kept for sale by a dealer in secondhand goods including metal, junk or melted metals; provided, however, such term shall not be construed to include used or secondhand motor vehicles, boats and other recreational vehicles.
D. The term “item of interest” shall mean and include items of property which are commonly stolen and fenced or offered for sale as stolen goods, and which are therefore of interest to the Edmonds police department. Such items shall at a minimum include jewelry, precious metals, gem stones, electronic equipment such as stereos and stereo components, radios, televisions, CB radios, radar equipment and microwave ovens; guns, coins, photographic equipment, tools, silverware, scrap metal, musical instruments, bicycles, sporting goods such as fishing tackle, camping gear, scuba gear and other such sporting equipment; marine equipment such as boats, outboard motors, depth sounders and such other items of personal property as are either deemed suspicious or unusual by the licensee or which has been identified as items of interest in accordance with the provisions of ECC 4.75.035.
E. The term “melted metals” means metals derived from metal junk or precious metals that have been changed to a melted state from other than ore or ingots which are produced from ore which has previously been processed.
F. The term “metal junk” means any metal that has previously been milled, shaped, stamped or that is no longer useful in its original form, except precious metal.
G. The term “nonmetal junk” means any nonmetal commonly discarded item that is worn out, or outlived its usefulness as intended in its original form except nonmetal junk does not mean an item made in a former period which has enhanced value because of its age.
H. The term “precious metals” means gold, silver, and platinum. [Ord. 2850 § 1, 1991; Ord. 2701, 1989; Ord. 2431, 1984].
4.75.035 Regulatory rule making – By chief of police.
Whenever the chief of police shall determine that an item of personal property is or has become an item which is commonly stolen and fenced or otherwise offered for sale as stolen property, he may at his discretion add such item to the list of “items of interest” established by this chapter, specifically ECC 4.75.030(D) or by previous rule making. The chief shall make his determination in writing and shall notify each holder of a license under this chapter that a particular item of personal property has become an “item of interest” in accordance with the provisions of this chapter. He shall cause such written notification to be deposited postage paid in the U.S. mail to each holder of a license and shall provide copies of such determination to the city clerk for distribution to future licensees. The chief's determination that an item of personal property has become an “item of interest” in accordance with the provisions of this chapter shall become effective 30 days after such mailing and on that date shall be incorporated into ECC 4.75.030(D) as fully as if herein set forth. The chief's determination may be appealed to the city council by the filing of an appeal notice with the city clerk within said 30-day period. The city council shall hear said appeal at a public hearing, and its decision shall be final. Said decision shall represent the legislative determination of the council and is not applicable as a quasi judicial determination by writ of certiorari. [Ord. 2701, 1989; Ord. 2431, 1984].
4.75.040 License fees.
A. The fee for a pawnbroker's license shall be the same as the annual fee for a business license.
B. The fee for a secondhand dealer's license shall be the same as the annual fee for a business license.
C. All license fees required under this section shall expire on December 31st of each respective year and all licenses taken out after June 30th of each respective year shall pay one-half of the annual license fee for that year and upon such payment shall be issued a license for the remaining portion of said calendar year.
D. The license shall be in lieu of the city business license and shall not be assignable or transferable. Further, the obtaining of a pawnbroker's license shall preclude the need for a secondhand dealer's license. [Ord. 2701, 1989; Ord. 2431, 1984].
4.75.050 Location.
No license for a pawnbroker or secondhand dealer shall be issued to conduct the business in any area of the city outside those areas zoned BC, CG, and BN, as set forth in the official zoning maps of the city. [Ord. 2431, 1984].
4.75.060 Application for license.
A. All applications for issuance or renewal of a pawnbroker's or secondhand dealer's license shall be made to and filed with the city clerk on forms furnished for such purpose, and shall be accompanied by the required fee. This application shall state the true name of the applicant, who shall not be less than 18 years of age, the names of all persons having financial, proprietary or other interest in such pawn shop or secondhand shop, together with such other information as the city clerk deems appropriate. Any pawnbroker or secondhand dealer now in business shall apply for such license as provided herein within 10 days after the effective date of the ordinance codified herein.
B. Upon the filing of an application, it shall then be referred to the Edmonds police department for investigation, report and recommendation. Within 30 days after receipt of a copy of the application, the police department shall investigate the statements set forth in the application and report to the city clerk whether the application contains false, misleading or incomplete information. The police department shall, at the same time and as part of its report to the city clerk, render a written recommendation as to approval or denial of the application for permit or renewal thereof.
C. Within 30 days after receiving the aforementioned report and recommendation from the police department, the city clerk shall grant or deny the permit or renewal thereof. If, from the information supplied to the city clerk, it appears that the application is proper and the statements contained in the application are true and complete, and that the applicant has complied with all the requirements of the Edmonds City Code, the city clerk shall issue a license to the applicant. Otherwise, the license application shall be denied. [Ord. 2431, 1984].
4.75.070 Criteria for denial or revocation of license.
The city clerk may deny a license to any applicant or may suspend or revoke any and all licenses or permits of any holder when such person, or any other person with any interest in the application for, or holder of, such license or permit:
A. Knowingly causes, aids, abets, or conspires with another to cause any person to violate any of the laws of this state or the city of Edmonds;
B. Has obtained a license or permit by fraud, misrepresentation, concealment, or through inadvertence or mistake;
C. Shall fail to display its license on the premises where the licensed activity is conducted at all times during the operation of the licensed activity;
D. Makes a misrepresentation of, or fails to disclose, a material fact to the city;
E. Has violated any section of this chapter. [Ord. 2431, 1984].
4.75.080 Request for hearing.
When the city clerk determines that there is cause for denying, suspending or revoking any license issued pursuant to this chapter, the clerk shall notify the person holding such license by registered or certified mail, return receipt requested, of the clerk's decision. Notice mailed to the address on file shall be deemed received three days after mailing. The notice shall specify the grounds for the denial, suspension or revocation. The suspension or revocation shall become effective 10 days from the date the notice is delivered or deemed received unless the person affected thereby files a written request with the clerk for a hearing before the city council within such 10-day period. The city council shall set and hold a hearing within 30 days following receipt of such request. Appeal from a decision of the city council shall be to the Snohomish County Superior Court and must be served and filed within 30 days of the decision of the city council. In the event the applicant or license holder does not follow the procedures within the time periods set forth above, the license of said person shall be denied, suspended or revoked, and that action shall be final. [Ord. 2431, 1984].
4.75.100 Records required.
Every pawnbroker and secondhand dealer shall maintain at his place of business a record in which he shall at the time of such loan, purchase or sale, enter, in the English language, written in ink, the following information:
A. The date of the transaction.
B. The printed name, signature, date of birth, street and house number, telephone number, the general description of the size, complexion, color of hair of the person with whom the transaction is made, including the identification which the customer shall present to verify his or her identity, pursuant to ECC 4.75.100 and the serial or other number of such identification.
C. The name, street and house number, and telephone number of the owner of the property bought or received in pledge.
D. The street and house number and telephone number of the place from which the property bought or received in pledge was last removed.
E. A complete description of the property bought or received in pledge, which shall include the name of the maker of such property or the manufacturer thereof and the serial number, model number or name, any initials, or engravings, if the article has such marks on it, or any other inscriptive or identifying marks, which, in the case of watches, shall contain the name of the maker and the number of both the works and the case. The description shall also include size, patterns and color of stone or stones, and in the case of firearms, the caliber, barrel length, type of action, and whether it is a pistol, rifle or shotgun; provided, that when the article received is furniture or the contents of any house or room actually inspected on the premises where the sale is made, a general description of the property shall be sufficient.
F. The price paid or the amount loaned.
G. The number of any pawn tickets issued therefor.
H. The names, streets and house numbers, and telephone numbers of all persons witnessing the transaction.
I. The nature of the transaction, a number identifying the transaction, the store identification or the name and address of the business and the name of the person or employee, or the identification number of the person or employee conducting the transaction and making the entries required herein, and the location of the property. [Ord. 2850 § 2, 1991; Ord. 2431, 1984].
4.75.110 Records and articles to be available for inspection.
All books and other records of any pawnbroker or secondhand dealer relating to purchase, pledge, exchange, receipt of any goods, wares, merchandise, or other articles or things of value, shall at all times be open for inspection by the city attorney or any peace officer; and all articles and things received, purchased or left in pledge with the pawnbroker or secondhand dealer shall at all times be open to like inspection. All books and other records shall be maintained wherever that business is conducted for three years following the date of transaction. [Ord. 2850 § 3, 1991; Ord. 2431, 1984].
4.75.120 Seller or consignee to give true name and address.
Anyone who pledges, sells or consigns any property to or with a pawnbroker or secondhand dealer shall sign the records required to be kept by such pawnbroker or secondhand dealer with his or her true name, shall include his or her correct address and telephone number and shall provide for inspection by the licensee of one of the following which shall contain a photograph of the individual:
A. Driver's license, instruction permit or identification card of any state or a province of Canada, or “identicard” issued by the Washington State Department of Licensing pursuant to RCW 46.20.117;
B. United States active duty military identification; and/or
C. Passport. [Ord. 2850 § 4, 1991; Ord. 2701, 1989; Ord. 2431, 1984].
4.75.130 Transcript to be furnished.
A. It is the duty of every pawnbroker and secondhand dealer to furnish to the police department, on such forms as the police department may provide a full, true and accurate transcript recording of all transactions occurring on a given day involving any item of interest as defined by this chapter or department rule, within 48 hours of the close of business.
B. It is also the duty of any pawnbroker or secondhand dealer having good cause to believe any property in his possession has been previously lost or stolen, to report such fact to the police department immediately, together with the name of the owner, if known, and the date and name of the person from whom the same was received by such pawnbroker or secondhand dealer. [Ord. 2701, 1989; Ord. 2431, 1984].
4.75.140 Retention of property.
No property which has been determined to be an item of interest under the provisions of this chapter or departmental rule and which has been bought or received in pledge by any pawnbroker or secondhand dealer shall be removed from such place of business within 30 days after notification to the police department as provided in this chapter, except when redeemed by the owner thereof. [Ord. 2701, 1989; Ord. 2431, 1984].
4.75.150 Ammunition sales or storage.
It is unlawful for any pawnbroker or pawnshop to purchase, store or offer for sale or trade, any firearms ammunition. [Ord. 2431, 1984].
4.75.160 Interest rates.
All pawnbrokers, or pawnshops shall not charge interest rates in excess of those allowable under the laws of the state, Chapter 19.60 RCW, as now in effect and as they may, from time to time, be amended, and every person who shall ask or receive a higher rate of interest or discount on any such loan, or any actual or pretended sale or redemption of personal property, or who shall sell any property held for redemption, within 90 days after the period of redemption shall have expired, shall be deemed guilty of violation of this chapter. [Ord. 2431, 1984].
4.75.170 Police holds.
A. A police officer may place a “hold” upon property in the possession of a pawnbroker and/or pawnshop which is reported to be stolen by notifying the pawnbroker and/or pawnshop and making an entry upon the permanent record required by ECC 4.75.080, indicating that such item is stolen property. The licensee shall then:
1. Tag or otherwise reasonably identify the item;
2. Hold it in a place on the business premises of the dealer to which police officers shall have access at any time during the dealer's regular business hours; and
3. Keep the item safe from alteration, loss, damage, or commingling with other goods.
B. In cases where the police have placed verbal hold on an item, the police must then give written notice within 10 business days. If such written notice is not received within that period of time, then the hold order will cease.
C. In any event, the hold will expire at the end of 120 days, unless renewed in writing by a law enforcement officer. The renewal period shall be of the same duration. Property held shall not be released for 120 days from the date of police notification unless released by written consent of the police chief or his or her designee or by an order of a court of competent jurisdiction. The pawnbroker shall give 20 days' written notice before the expiration of the 120-day holding period to the police chief or his or her designee about the stolen property. If notice is not given within the required 20-day period, then the hold on the property shall continue for an additional 120 days. The police chief or his designee may renew the holding period for additional 120-day periods as necessary.
D. After receipt of notification from a pawnbroker or secondhand dealer, if an additional holding period is required, the police shall give the pawnbroker or secondhand dealer written notice, prior to the expiration of the existing hold order. The police shall not place on hold any item of personal property unless that agency reasonably suspects that the item of personal property is a lost or stolen item. Any hold that is placed on an item will be removed as soon as practicable after the item on hold is determined not to be stolen or lost. [Ord. 2850 § 5, 1991; Ord. 2779 § 1, 1990; Ord. 2431, 1984].].
4.75.180 Transactions with prohibited persons.
It is unlawful for any pawnbroker or secondhand dealer, his agent, employee or representative to purchase or exchange any article or thing from any person under 18 years of age, or from any person who is at the time intoxicated, or from any habitual drunkard or from any person addicted to the use of narcotic drug, or from any person who is known to be a thief, a receiver of stolen goods, or from any person whom he has reason to suspect to believe to be such. Notification by the police department given to such licensee, his agent, employee or representative, that a person has been convicted of burglary, larceny or receiver of stolen goods, shall constitute sufficient notice of such convictions under the provision of this chapter, and shall be prima facie evidence that the licensee, his agent, employee or representative, has due notice thereof. [Ord. 2431, 1984].
4.75.190 Penalty.
It is a gross misdemeanor for:
A. Any person to remove, alter, or obliterate any manufacturer's make, model, or serial number, personal identification number, or identifying marks engraved or etched upon an item of personal property that was purchased, consigned, or received in pledge. In addition, an item shall not be accepted for pledge or a secondhand purchase where the manufacturer's make, model, or serial number, personal identification number, or identifying marks engraved or etched upon an item of personal property has been removed, altered, or obliterated;
B. Any person to knowingly make, cause or allow to be made any false entry or misstatement of any material matter in any book, record, or writing required to be kept under this chapter;
C. Any pawnbroker or secondhand dealer to receive any property from any person under the age of 18 years, any person under the influence of intoxicating liquor or drugs, or any person known to the pawnbroker or secondhand dealer as having been convicted of burglary, robbery, theft or possession of or receiving stolen property within the past 10 years whether the person is acting in his or her own behalf or as the agent of another; or
D. Violate any provision of this chapter by any act of either omission or commission. [Ord. 2850 § 6, 1991; Ord. 2701, 1989; Ord. 2431, 1984].