Ordinance No. 1064 03-04-1996 ORDINANCE NO. 1064
OFFICIAL TITLE AND SUMMARY
I. TITLE
An ordinance recodifying the Fridley City Code, Chapter 31, entitled "Pawn
Shops," by amending Sections 31.07, 31.08, 31.11, 31.12, 31.13, and adding new
Section 31.14, and renumbering the remaining Sections consecutively, and
amending Chapter 11, "General Provisions and Fees".
II. SUMMARY
The City Council of the City of Fridley does hereby ordain as follows:
The proposed ordinance establishes licensing, recordkeeping, property
handling, and transaction requirements of pawnbrokers. It establishes license
classifications for renewal purposes on the basis of the level of business
generated by the pawnbroker over the previous year. It identifies the
permitted methods of submitting daily reports and creates a renewal fee
reduction for daily reports delivered in an electronic data format. It sets
the minimum periods pawned and purchased property must be kept before
forfeiture or sale. The ordinance contains requirements for the holding and
seizure of suspected stolen property. It restricts transactions involving
certain persons or property. It establishes restrictions on the conduct of
persons on licensed premises.
III. NOTICE
This Title and Summary have been published to clearly inform the public of the
intent and effect of the City of Fridley's ordinance requirements for
pawnbrokers. A copy of the ordinance, in its entirety, is available for
inspection by any person during regular business hours at the offices of the
City Clerk of the City of Fridley, 6431 University Avenue, N.E. , Fridley, MN
55432.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 4TH DAY OF
MARCH, 1996.
M) A.t.. .., -yA
WILLIAM J. ��- MAYOR
ATTEST:
2 a.
WILLIAM A. CHAMPA - CITY CLERK
Publication: March 14, 1996
ORDINANCE NO.1064
AN ORDINANCE RECODIFYING THE FRIDLEY CITY CODE,
CHAPTER 31, ENTITLED "PAWN SHOPS," BY AMENDING
SECTIONS 31.07, 31.08, 31.11, 31.12, 31.13, AND ADDING
NEW SECTION 31.14, AND RENUMBERING THE REMAINING
SECTIONS CONSECUTIVELY, AND AMENDING CHAPTER 11,
"GENERAL PROVISIONS AND FEES"
The City Council of the City of Fridley does hereby ordain as follows:
31.07 LICENSE CLASSIFICATIONS AND FEES ESTABLISHED
1. License Classes.
Licenses renewed under provisions of this Chapter shall be classified
according to the average number of initial transactions submitted monthly by
the licensee to the Public Safety Director during the period the licensee was
in business prior to renewal. For the purposes of this section "initial
transaction" shall mean a single reportable transaction conducted by a
pawnbroker involving the initial receipt of property pawned, pledged, sold,
left, or deposited by one person on one day at one time; not to include the
sale, redemption, renewal, extension, or confiscation of property already in
the possession of the pawnbroker. License classifications shall be:
Class A - Licensee's that submit an average of seven hundred fifty (750)
or more initial transactions per month.
Class B - Licensee's that submit an average of more than two hundred
fifty (250) but less than seven hundred fifty (750) initial transactions
per month.
Class C - Licensee's that submit an average of two hundred fifty (250)
or less initial transactions per month.
All new licenses issued pursuant to this Chapter shall be deemed to be Class A
licenses and subject to all applicable fees and regulations.
2. Annual Fees.
The annual license fee for all licenses required by this Chapter shall be in
the amounts as specified in Chapter 11, General Provisions and Fees, of the
Fridley City Code.
3. Investigation Fees.
At the time of each original application for a license, the applicant shall
pay, in full, an investigation fee. The investigation fee shall be as
specified in Chapter 11, General Provisions and Fees, of the Fridley City
Code.
Page 2 -- Ordinance No. 1064
31.08 PAYMENT OF FEES
1. Initial Fees.
The annual license and investigation fees for a new license shall be paid in
full before the application for the license is accepted. Upon rejection 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 shall 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. Pro Rated Fee for New Licenses.
If the application for a new license under this Chapter is made during a
license year, a license may be issued for the remainder of the license year
for a fee assessed proportionally by the number of months remaining in the
license year. Any fraction of a month will be counted as a complete month.
No refund, reduction, or adjustment of a license fee shall be made to any
licensee that ceases operation during the term of the license.
3. Renewal Fees and Adjustments.
Licensee's delivering daily reports to police via the electronic reporting
method as outlined in section 31.11.5. shall be eligible for an electronic
reporting adjustment of the annual license fee at renewal, based on the number
of months during the preceding license year that the licensee successfully
delivered daily reports to police via the electronic reporting method. The
electronic reporting adjustment shall be as specified in Chapter 11, General
Provisions and Fees, of the Fridley City Code.
Licensee's seeking renewal shall first obtain from the Public Safety Director
a statement identifying the class of license to be renewed and the number of
months eligible for the electronic reporting adjustment if any. The statement
shall be filed with the renewal application.
The annual license fee for renewal of a license, at the class identified by
the Public Safety Director, less the electronic reporting adjustment if
applicable, shall be paid in full at the time the renewal application is filed
with the City.
31.11. CONDITIONS OF LICENSES
1. Records.
Every licensee, at the time of receipt of an article deposited, left, sold,
purchased, pledged, or pawned, shall immediately record, in English, on forms
or in an electronic data storage and retrieval system approved by the Public
Page 3 -- Ordinance No. 1064
Safety Director, the following information:
A. A complete and accurate description of the article, including but
not limited to, any manufacturer name, brand name, model number, serial
number, identification number, or other identifying mark.
B. The amount of money received by the person pawning, pledging, or
selling the article, together with the annual rate of interest and the amount
required to redeem the article if it was pawned or pledged.
C. The date, time and place of receipt of the article.
D. The full name, date of birth, current address of residence,
current telephone number if possessed, and a reasonably accurate description
of the person from whom the article was received including at a minimum sex,
height, weight, and race.
E. The identification number and state of issue from a valid photo
drivers license or photo identification card issued by the state of residency
of the person from whom the article was received.
F. The name or unique identifier of the licensee or employee that
conducted the transaction.
2. Disposition of Articles.
A. 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.
B. 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 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.
3. Inspection of Records.
The records referred to in this section shall be open to the inspection of the
Public Safety Director at all reasonable times and shall 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 receipt numbered to correspond with the
licensee's records. The receipt shall contain the substance of the
transaction and the signature of the person from whom the item was received.
Page 4 -- Ordinance No. 1064
5. Daily Reports to Police.
A. Method.
Each licensee shall prepare and deliver to the Public Safety Director,
by twelve o'clock noon the first business day following the date of
transaction, the information required to be collected in section 31.11.1 and
31.11.2, through one of the following methods:
(1) Manual Reporting.
Daily reports on forms approved by the Public Safety Director
delivered in person by the licensee or employee.
(2) Electronic Reporting.
Daily reports maintained in an electronic data format meeting
specifications established by the Public Safety Director and delivered in
person by the licensee or employee on electronic data storage media approved
by the Public Safety Director or transferred from the licensee's computer via
modem.
B. Electronic Reporting Adjustment.
A licensee delivering daily reports via the electronic reporting method
may be eligible for an adjustment of their annual license fee at renewal,
based on the number of months during the preceding license year that the
licensee successfully delivered daily reports to police via the electronic
reporting method, except:
(1) If a licensee who has consistently delivered daily reports
via the electronic reporting method is unable to successfully deliver the
required reports via the electronic reporting method, and the problem is
determined to be in the licensee's system and is not corrected by the close of
the second business day following the failure, the licensee will be considered
to have reported via the manual reporting method for the month in which the
failure occurred and any subsequent months that such failure continues
uncorrected.
(2) If a licensee who has consistently delivered daily reports
via the electronic reporting method is unable to successfully deliver the
required reports via the electronic reporting method, and the problem is
determined to be outside the licensee's system, the licensee will be
considered to have reported via the electronic reporting method for the month
in which the failure occurred.
(3) Section 31.11.5.B(1) notwithstanding, the Public Safety
Director may, upon presentation of extenuating circumstances, extend the
period that a qualifying licensee is considered to have reported via the
electronic reporting method.
Page 5 -- Ordinance No. 1064
6. Exceptions to Reports.
No licensee 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 placed of
business. Any goods referred to in this section must be accompanied by a bill
of sale or other evidence of open or legitimate purchase and must be shown to
the Public Safety Director on demand.
7. Redemption Period.
Any person pledging, pawning or depositing an article of property for security
shall have a minimum of ninety (90) days from the date of that transaction to
redeem the article before it may be forfeited and sold. During the ninety
(90) day holding period articles shall not be removed from the licensed
premises.
Licensee's are prohibited from redeeming any article of property 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 article(s)
of 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 the approval of the Public Safety Director. Written authorization for
release of articles of property to persons other than the original pledger
must be maintained along with the original transaction record.
8. Holding Period.
No article of property pledged, pawned or on deposit for security with any
licensee shall be permitted to be redeemed for a period of seventy-two (72)
hours from the date of transaction, excluding Sundays and holidays, except
upon written authorization of the Public Safety Director.
No article of property purchased by a licensee may be sold or otherwise
disposed of for thirty (30) days from the date of the transaction except that
articles of property for which there exists a valid certificate of title
issued by the State of Minnesota, showing ownership and registration by the
person from whom the article was received, may be sold or otherwise disposed
of ten (10) days from the date of transaction.
9. Police Restrictions on Sale or Redemption.
A. Investigative Hold.
Whenever a law enforcement official from any agency, acting in the
course and scope of his or her duties, notifies a licensee not to sell or
permit to be redeemed an article of property in the licensee's possession, the
article may not be sold, redeemed or removed from the premises by the
licensee. The Investigative Hold shall be confirmed in writing by the
originating agency within seventy-two (72) hours and will remain in effect for
Page 6 -- Ordinance No. 1064
fifteen (15) days from the date of notification, or until the hold is
cancelled, or until a Police Hold is issued pursuant to section 31.11.9.(B) ,
or until the article is confiscated, whichever comes first.
B. Police Hold.
Whenever the Public Safety Director notifies a licensee not to sell or
permit to be redeemed an article of property in the licensee's possession, the
article may not be sold, redeemed or removed from the premises by the
licensee. The Police Hold shall be confirmed in writing within seventy-two
(72) hours and will remain in effect for ninety (90) days from the date of
notification unless the Public Safety Director determines the hold is still
necessary and notifies the licensee in writing. When a Police Hold is no
longer needed the Public Safety Director shall so notify the licensee.
C. Confiscation Report.
If an article of property in the licensee's possession is determined to
be stolen, it may be confiscated and seized as evidence by any police officer.
A request for restitution from any person charged in regards to the stolen
property confiscated shall be made on behalf of the licensee. When an article
of property is confiscated, the person doing so shall provide identification
upon request of the licensee, and shall complete a confiscation report
providing at a minimum the name and telephone number of the confiscating
agency and investigator, and the case number of the police report related to
the confiscation. The confiscation report shall be included with the daily
reports to police, submitted by the licensee, for review by the Public Safety
Director.
10. Payment by Check.
Payment of more than five hundred dollars ($500.00) by any 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 pawnbrokering without a license required by
Page 7 -- Ordinance No. 1064
this Chapter.
14. Business at Only One Place.
A license under this Chapter authorizes the licensee to carry on its business
only at the permanent place of business designated in the license. However,
upon written request, the Public Safety Director may approve an off-site
locked and secure storage facility. The licensee shall permit inspection of
the facility in accordance with section 31.13. All provisions of this Chapter
regarding recordkeeping and reporting apply to the facility and its contents.
Articles of property shall be stored in compliance with all provisions of the
city code.
31.12. RESTRICTED TRANSACTIONS
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, accept, or receive any article of property
from any minor or from any person of unsound mind or from an intoxicated
person.
3. No licensee shall purchase, accept, or receive any article of property
which contains an altered or obliterated serial number or an article of
property whose serial number has been removed.
4. No licensee shall purchase, accept, or receive any article of property
knowing, or having reason to know, that the article of property 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.
S. No licensee shall purchase, accept, or receive any article of property,
from any person, knowing, or having reason to know, that said person is not
the true and correct owner of the property.
6. No licensee shall purchase, accept, or receive any article of property,
from any person, without first having examined a valid photo driver's license
or valid photo identification card issued by the state of residency of the
person.
31.13 Inspection.
1. Premises.
Any licensee shall, at all times during the term of the license, allow the
Public Safety Director to enter the premises, where the licensee is carrying
on business, including all off-site storage facilities as authorized in
section 31.11.14 , during normal business hours, except in an emergency, for
the purpose of inspecting such premises and inspecting the articles and
records therein to locate goods suspected or alleged to have been stolen and
Page 8 -- Ordinance No. 1064
to verify compliance with this Chapter or other applicable laws. No licensee
shall conceal any article in his possession from the Public Safety Director.
2. Inspection by Police or Claimed Owner.
All articles of property coming into the possession of any licensee, under the
terms hereof, 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.
31.14 CONDUCT OF PERSONS ON LICENSED PREMISES
1. No person may pawn, pledge, sell, leave, or deposit any article of
property 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.
2. No minor may pawn, pledge, sell, leave, or deposit any article of
property with any licensee.
3. No person may pawn, pledge, sell, leave, or deposit any article of
property with any licensee without first having presented a valid photo
driver's license or valid photo identification card issued by the state of
residency of the person.
4. All licensee's 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.
For the purpose of this section "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 PAWN OR 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 IDENTIFICATION.
VIOLATION OF ANY OF THESE REQUIREMENTS IS A CRIME.
For the purpose of this section "separate written notice" shall be deemed to
mean either the receipt, as required in section 31.11.4, or a printed form,
Page 9 -- Ordinance No. 1064
incorporating a statement to the effect that the person pawning, pledging,
selling, leaving, or depositing the article is at least eighteen (18) 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.
5. No person seeking to pawn, pledge, sell, 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 driver's license or identification card;
to any licensee.
11.10 FEES
Section 11.10, "Fees" is amended to include the following Pawn Shop fees:
CODE SUBJECT FEE
31 Pawn Shops Class A $15,000
Class B $12,500
Class C $10,000
Electronic Reporting
Adjustment $400 per month
Investigation Fee $400
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 4TH DAY OF
MARCH, 1996.
WILLIAM J. E - MAYOR
ATTEST:
Ir
WILLIAM A. CHAMPA - CITY LERK
First Reading: February 26, 1996
Second Reading: March 4, 1996
Publication: March 14, 1996