Ordinance No. 0970 06-03-1991ORDINANCE N0. 970
� AN ORDINANCE ESTABLISHING A NEW CHAPTER OF THE CITY CODE OF THE CITY
OF FRIDLEY, CHAPTER 31, ENTITLED "PAWN SHOPS" AND AMENDING CHAPTER 11,
"GENERAL PROVISIONS AND FEES"
The City Council of the city of Fridley does ordain as follows
31 O1 DEFINITIONS
The following words and terms when used in this Chapter shall have the following
meanings
1 Licensee
The person to whom a license is issued under this Chapter including any agents
or employees of the person
2 Minor
Any natural person under the age of eighteen (18) years
3 Pawnbroker
A person who loans money on deposit or pledge of personal property or other
valuable things or who deals in the purchasing of personal property or other
� valuable things on condition of selling the same back again at a stipulated
price or who loans money secured by security interest on personal property or
any part thereof This Chapter does not apply to a person doing business under
and as permitted by any 1aw of this State or of the United States relating to
6anks, building and loan associations, savings and loan associations, trust
compames or credit unions
4 Public Safety Director
The Public Safety Director of the City of Fridley or the Director's designee
5 City
The City of Fridley, Mlnnesota, a municipal corporation
31,02. LICENSE REQUIRED
No person shall exercise, carry on or be engaged in the trade or business of
pawnbroker without first obtaining a license from the City as provided in this
Chapter
31.03. INITIAL LICENSE APPLICATION
1 General
' Applications for pawnbrokers' licenses to be issued under this Chapter shall
contain information as required on forms prescribed by the City
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2 Nature of Application
The application shall state whether the applicant is a natural person,
corporation, partnership or other form of organization
3 Natural Person
If applicant is a natural person, the following information shall be furnished
A True name, place and date of birth and street residence address, and
length of time at that address, of applicant
B Whether applicant has ever used or been known by a name other than his
true name and, if so, what was such name or names, and information
concerning dates and places where used
C The name of the business if it is to be conducted under a designation,
name or style other than the full individual name of the applicant
D Kind, name and location of every business or occupation applicant has
been engaged in during the preceding five (5) years
E Names and addresses of applicant's employers and partners, if any, for
the preceding five (5) years
F Whether applicant has ever been convicted of a felony, gross
misdemeanor or misdemeanor, excluding traffic violations, and if so, the
date and place of conviction and the nature of the offense
G If applicant has not resided in the City for three (3) years last
preceding the date of application, at least four (4) character references
from residents of the State of Minnesota
4 Partnership
If applicant is a partnership, the names and addresses of all partners and a11
information concerning each partner as is required of a single applicant A
managing partner, or partners, shall be designated The interest of each
partner in the business shall be disclosed
5 Corporation
If applicant is a corporation or other association, the following information
sha11 be required
A Name and, if incorporated, the state of incorporation
B A true copy of the certificate of incorporation, articles of
incorporation or association agreement and by-laws and, if a foreign
corporation, a certificate of authority as described in Minnesota Statutes
C The name of the operating officer or proprietor or other agent in
charge of the premises to be licensed, giving all the information about
said person as is required of a single applicant As used in this Chapter,
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the term "operating officer" shall mean the person responsible for the day-
to-day operating decisions of the licensed premises
D A list of a11 persons who, singly or together with their spouse, or a
parent, brother, sister or child or either of them, own or control an
interest in said corporation or association in excess of five percent (5�)
or who are officers or directors of said corporation or association,
together with their addresses and all information as is required of a
single applicant
Description of premises
A Legal Description
The exact legal description of the premises to 6e licensed, together with
a plot plan of the area for which the license is sought showing dimensions,
location of buildings, street access parking facilities
B Street Address
The street address of the premises for which application is made
Taxes
Whether or not all real estate taxes, assessments, or other financial claims of
the City, State or Federal government for the business and premises to be
licensed have been paid, and if not paid, the years for which delinquent
8 Other Information Required
Such other information as the City Council sha11 require
31.04
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RENEWAL APPLICATIONS
License Period, Expiration
Each renewal license shall be issued for a maximum period of one year
31 O5. EXECUTION OF APPLICATION.
If application is by a natural person, it shall be signed and sworn to by such
person, if by a corporation, by an officer thereof, if by a partnership, by one
of the general partners, if by an incorporated association, by the operating
officer or managing officer thereof If the applicant is a partnership, the
application, license and bond shall be made and issued in the name of all
partners Any false statement in an application shall result in denial of the
application
31.06. GRANTING LICENSES
1 At the time of making an initial or renewal application, the applicant
' shall, in writing, authorize the Police Department to investigate a11 facts
set out in the application and do a personal background and criminal record
check on the applicant The applicant shall further authorize the Police
Department to release information received from such investigation to the
, City Council
2 Each license sha11 be issued to the applicant only and shall not be
transferable
3 Each 1lcense shall be issued only for the premises described in the
application and shall not be transferable to a different location
4 No change in ownership, control or location of a license shall be permitted
except by amendment to the license which amendment must be approved by the
City Council
31 07 LICENSE FEES ESTABLISHED
1 Annual Fees
The annual license fee for licenses required by this article sha11 be in the
amounts as specified in Chapter 11, General Provisions and Fees, of the Fridley
City Code
2 Investigation Fees•
At the time of each original application for a license, applicant shall pay, in
full, an investigation fee The investigation fee shall be as specified in
Chapter 11, Provisions and Fees, of the Fridley City Code
� 31.08 PAYMENT OF FEES.
1 Initial Fees
The annual license and investigation fees for a new license shall be paid in
full before Che application for the license is accepted Upon re�ection of any
application for a license or upon withdrawal of an application before approval
of the issuance by the Council, the license fee only shall be refunded to the
applicant except where rejection is for a willful misstatement in the license
application If any investigation outside the State of Minnesota is required,
the applicant shall be charged the cost which sha11 be paid by the applicant,
prior to issuance of a license, after deducting the initial investigation fee,
whether or not the license is granted
2 Renewal Fees
The annual license fee for renewal of a license shall be paid in full at the
time the renewal application is filed with the City
31.09. BOND REQUIRED
At the time of filing an application for a license,the applicant shall file a
bond in the amount of Five Thousand Dollars ($5,000) with the City The bond,
with a duly licensed surety company as surety thereon, must be approved as to
1 form by the City Attorney. Said bond must be conditioned that the licensee
shall observe the ordinances of the City, in relation to the business of
pawnbroker, and that the licensee wi11 account for and deliver to any person
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legally entitled thereto any articles which may have come into the possession
of the licensee as pawnbroker or in lieu thereof such licensee shall pay the
person or persons the reasonable value thereof
31 10
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PERSONS AND PLACES INELIGISLE FOR LICENSE
No license shall be granted to or held by any person who
A Is a minor at the time the application is filed
B Has been convicted of any crime directly related to the occupation
licensed, as prescribed by Minnesota Statutes, and has not shown competent
evidence of sufficient rehabilitation and present fitness to perform the
duties of a pawnbroker
C Is not a citizen of the United States or a resident alien
D In the judgment of the Council, is not the real party in interest or
beneficial owner of the business operated, or to be operated, under the
license
No license shall be granted or renewed for operation of any premises on
which real estate taxes, assessments or other financial claims of the City
or of the State are delinquent or unpaid
No license shall be granted for opexation of any premises located in a
residential district within the City
31 11 CONDITIONS OF LICENSES.
1 Records
Every license, at the time of receipt of an article deposited, left, sold,
purchased, pledged or pawned, shall immediately record, in a book consisting of
ink, computer printout or other indelible medium, the following inforrnation
A An accuraCe description of the article, in English, and any numbers
written, stamped, impressed or engraved thereon together with the name of
them manufacturer if the name is on the article
B The amount of money loaned upon or pledged therefor
C The date, time and place of receipt of the item
D The fu11 name, residence address, date of birth and reasonable accurate
description of the person from whom the item was received
E The identification number from one of the following forms of
identification of the person from whom the item was received
(1) A valid Minnesota driver's license,
(2) A valid Minnesota identification card, or
(3) A valid photo identification issued by the state of residency of
� the person from whom the item was received and one other form of
identification
2 Disposition of Articles
When any article is sold or disposed of by the licensee, the records shall
contain an account of such sale with the date thereof, interest and charges
accrued, the amount for which the article was sold and identification of the
person to whom sold
3 Inspection of Records
The records referred to in this section shall be open to the inspection of the
police officers at all reasonable times and sha11 be retained by the licensee
for at least four (4) years
4 Receipt
Every licensee shall deliver to the person pawning, pledging, selling, leaving
or depositing any articles, a certificate numbered to correspond with the entry
in the licensee's records The certificate sha11 contain the substance of the
entry
5 Reports to Police
� Each licensee shall prepare and deliver to the Public Safety Director, every day
before 12 00 noon, on forms prescxibed by the City, a legible, correct and
complete copy from the records hereinbefore required, and a true and correct
account of a11 personal property or other valuables received, deposited,
purchased, pledged, pawned, sold or otherwise disposed of during the preceding
day The report and descriptions shall be signed and delivered, in person, by
the person making the report to the Public Safety Director unless otherwise
directed, in writing, by the Public Safety Director
6 Exceptions to Reports
No person shall be required to furnish descriptions of any property purchased
from manufacturers and wholesale dealers having an established place of business
or of any goods purchased at an open sale from any bankrupt stock or from any
other person doing business and having an established place of business Any
goods referred to in this section must be accompanied by a bill of sale other
evidence of open or legitimate purchase and must be shown to the Police
Department when demanded
7 One Hundred Twenty-Day Redemption Period
Any person pledging, pawning or depositing an article for security sha11 have
a minimum of one hundred twenty (120) days from the date when the loaner pledge
becomes due and payable to redeem the article before the article becomes
forfeitable
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S. Minimum Period Before Redemption ox Sale
' No personal property on deposit with any licensee nor property purchased by or
sold to, or in any other ways coming into the possession and under the control
of any licensee in the due course of business, sha11 be permitted to be redeemed
from the place of business of the licensee for a period of seventy-two (72)
hours, nor shall the property be sold within ten (10) days after the copy and
statement required to be delivered to the Public Safety Director has been
delivered
9 Police Restrictions on Sa1e
Whenever the Public Safety Director sha11 notify any licensee not to sell or
permit to be redeemed any articles received on deposit or purchased by the
licensee, the articles shall not be permitted to be redeemed or sold until such
time as may be determined by the Public Safety Director Such time sha11 in no
case exceed the period of six (6) months from the date of such notification
10 Payment by Check
Payment by licensee for any article deposited, left, purchased, pledged or
pawned shall be made only by a check, draft or other negotiable or nonnegotiable
instrument or order of withdrawal which is drawn against funds held by a
financial institution
11 Posting License
' All licensees shall post their licenses, in a conspicuous place, in the licensed
premises under the licensed activity
12 Responsibility of Licensee
The conduct of agents or employees of a licensee, while engaged in performance
of their duties for their principal or employer under such license, shall be
deemed the conduct of the licensee
13 Penalty for Property Owner
It is unlawful for any person who owns or controls any real property to
knowingly permit it to be used for pawnbroking without a license required by
this Chapter
31 12 RESTRICTED HOURS OF OPERATION, MINORS
1 No licensee shall be open for the transaction of business on any day of the
week before 7 00 a m or after 10 00 p m
2 No licensee shall purchase or receive personal property, of any nature, on
deposit or pledge from any minor
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31.13. INSPECTION
, 1 Stolen goods
Any licensee shall, at all times during the term of the license, allow any
police office to enter or inspect the premises, where the licensee is carrying
on business, and all records pertinent to the operation of the business for the
purpose of locating goods suspected or alleged to have been stolen No licensee
shall conceal any article in his possession from any police officer
2 Inspection by Claimed Owner
All goods, wares or merchandise coming into the possession of any licensee,
under the terms hereof, shall at all times be open to inspection and right of
examination of any person claiming to have been the owner thereof or claiming
to have had any interest therein when such person is accompanied by a police
officer
31 14 CORPORATIONS, PARTNERSHIPS OR ASSOCIATIONS
1 Licenses issued to corporations shall be valid only as long as there is no
change in the officers or ownership interest of the corporation unless such
change is approved by the Council, in which event said license shall continue
in force until the end of the then current license year Failure to report any
change in stockholders, officers, or managers shall be grounds for the
revocation of all licenses held by the corporation Every corporation licensed
� under the provisions of this section shall adopt and maintain in its bylaws a
provision that no transfer of stock is valid or effective unless approved by the
City Council and shall require that all of its certificates of stock shall have
printed on the face thereof "The transfer of this stock certificate is invalid
unless approved by the City Council of Fridley, Minnesota," and failure to
comply with this provision shall be grounds for the revocation of all licenses
held by the corporation The provisions of this section shall not apply to the
issuance of any license to a corporation whose stock is traded on a public stock
exchange
2 Licenses issued to associations or partnerships shall 6e valid only as long
as there is no change in the partnership or association agreement or in the
ownership of said partnership or association unless such change is approved by
the Council, in which event said license sha11 continue in force until the end
of the then current license year
3 Corporation, partnerships or associations sha11 submit written notice to
the City of any such changes described herein on or before thirty (30) days
prior to the effective date of any such change In case of a corporation, the
licensee shall submit written notice to the City when a person not listed in the
initial application will be acquiring an interest and shall give all information
about said person as is required of a person pursuant to the provisions of this
Chapter
31.15 REFUSAL, SUSPENSION OR REVOCATION.
1 1 It is unlawful for any applicant to make a false statement or omission upon
any application form Any false statement in such application, or any omission
to state any information called for on such application form, sha11 upon
� discovery of such falsehood, work an automatic refusal of license, or if already
issued, shall render any license issued pursuant thereto, void Prior issuance
is no effect to protect the applicant from prosecution for violation of this
section or any part hereof
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2 The City Council may suspend or revoke a license issued under this Chapter
for operation on any premises on which real estate taxes, assessments or other
financial claims of the City or of the State are delinquent, or unpaid
3 The City Council may suspend or revoke a license issued under this Chapter
upon a finding of a violation of any of the provisions of this Chapter or any
State Statute regulating pawnbrokers Any conviction by the pawnbroker for
theft, receiving stolen property or any other crime or violation involving
stolen property shall result in the immediate suspension pending a hearing on
revocation of any license issued hereunder
4 Except in the case of a suspension pending a hearing on revocation, a
revocation or suspension of a license by the Council shall be preceded by a
public hearing The hearing notice shall be given at least ten (10) days prior
to the hearing, include notice of the time and place of the hearing, and sha11
state the nature of the charges against the licensee
31 16 PENALTY
Violation of any provision of this article shall be a misdemeanor
CHAPTER 11 GENERAL PROVISIONS AND FEES
Section 11 10, Fees is amended to include the following pawnbroker license
31 Pawn Shops $8,000
Investigation Fee 5400
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY TffiS 3RD
DAY OF JUNE, 1991
ATTEST
r'� te.�a�_
SHIRLEY A NAAPALA - TY CLERK
First Reading May 20, 1991
Second Reading Sune 3, 1991
Publication Sune 12. 1991
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C��,�����,;��- �
WILLIAM S NEE '�) YOA�
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