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HomeMy WebLinkAbout4.m. Pawn Shop: Ordinance Summary for Publication _ .__ _ . CITY OF ROSEdtOUNT EXSCIITIVE SU�SA,RY FOR ACTION CITY COUNCIL MEETING DATE: October 18, 1994 AGTNDA ITBM: Pawn Shop:Ordinance Summary AGENDA SECTION: for Publication CONSENT AGENDA PREPARSD BY: Ron Wasmund AGENDA �C1►A � � �� Community Development Director CtYI ATTACF�lENTS: Ordinance No. XV.29 Summary; APPROVED BYx:J���• The City Council of the City of Rosemount on October 4, 1994 adopted an ordinance that regulates pawn shops and pawn brokers. The ordinance establishes guidelines by which pawn shops and pawn brokers can operate in the City of Rosemount. The ordinance also establishes license and application guidelines. A summa.ry of this ordinance has been prepared for publication to save on the cost of publishing the entire document. Printed copies of the entire text of the City Code and this ordinance are available, for sale or inspection, at the Rosemount City Hall during regular business hours. RECO�lENDED ACTION: A MOTION to authorize publication of the summary for Ordinance No. XV.29 AN ORDINANCE REGULATING PAWN SHOPS AND PAWN BROKERS. COUNCIL ACTIONz < � . . . � � .. . . CITY OF ROSEMOUNT DAROTA COUNTY, MINNESOTA , ORDINANCE NO. XV.29 REGIILATION OF PA4Pl�T SHOPS AND PA�1�T BROKERS THE CITY COUNCIL OF THE CITY OF ROSEMOUNT ORDAINS: Sec. 1-1-10 PIIRPOS$ The City Council finds that pawnbrokers patentially provide an opportunity for the commission of crimes and their con�ealment because businesses have the ability to receive and transfer stolen property easily and quickly. The City Council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers . The purpose of this Chapter is therefore to prevent pawnbroking businesses from being used as' facilities for 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. Sec. 1-1-2: DEFINITIONS The following words and terms when used in this Chapter shall have the following meanings unless the context clearly indicates otherwise: . ISSUING AUTHORITY: The City of Rosemount MINOR: Any natural person under the age of eighteen (18) years. " PAWNBROKER: A person who loans money in deposit or pledge of personal property or other valuable thing; who deals in the purchasing of personal property or other valuable thing on condition of selling tha.t same back again at a stipulated price; or who loans money secured by chattel mortgage or on personal groperty, taking possession of the property or any part thereof so mortgaged. To the extent that a pawnbroker business includes buying personal property previously used, rented, or leased, the provisions of this Chapter shall be applicable. Any bank, savings and loan association, or credit union shall not be deemed a pawnbroker for purposes of this ; . Chapter. -� PERSON: Any one or more natural persons; a partnership, including a limited partnership; a corporation, ' including a foreign, domestic, , - -. or nonprofit corporation; a trust; a political subdivision of the state; or any other business organization. � Sec 1-1-3 : LICENSE REQIIIRED: No person shall exercise, carry-on, or be engaged in the trade or business of pawnbroker within the City unless such person is currently licensed under this Chapter. Persons engaged in the business of pawnbroker on the effective date of this Chapter must receive a license within sixty (60) days or cease doing business. Sec 1-1-4: APPLICATION CONTENT: In addition to any information that may be required by the County pursuant to Minn. Stat. 471.924, every applicant for a license under this Chapter shall be made on a form supplied ,by the City of Rosemount and shall contain the following information: (1) If the applicant is a natural person: (a) the name, place, and date of birth, street resident address, and telephone number of the �� applicant; j � (b) whether the applicant is a citizen of the United — States or a resident alien; ; (c) whether the applicant has ever used or has been i known by a name other than the applicant' s name, ' and if so, the name used and information concerning dates and places where used; (d) the name of the business if it is to be conducted under a designation, name, or style other than the name of the applicant and a certified copy of the certificate as required by Minn. Stat. 333 .01; (e) the street address at which the applicant has � lived during the preceding five (5) years; i (f) the type, name, and location of every business or occupation in which the applicant has been engaged during the preceding five (5) years and the name (s) and address {es) of the applicant' s; employer(s) and partner(s� , if any, for the preceding f ive (5) years; 1 (g) whether the applicant has ever been convicted of a i � felony, crime:, or violation of any �rdinance other __ than a traffic ordinance. If so, the applicant shall furnish information as to the time, place, ___. and offense for which convictions were had; (h) the physical description of the applicant' {i) if the applicant is married: i) the name, place, and date of birth, and street address of the applicant's current spouse; ii) the type, name, and `location of every business or occupation in which the applicant's current spouse has been engaged during the preceding five t5) years; iii) the names and addresses of the employers or partners of the applicant' s current spouse for the preceding five (5) years; iv) whether the applicant' s current spouse has even been convicted of any felony, crime, or violation of any ordinance other than a traffic ordinance: If so, the applicant shall' furnish information — as to the time, place, and offense for which convictions were had. --� (2} If the applicant is a partnership: (a) the name (s) and address {es) of all general and limited partners and all information concerning each limited partner required in subpart (1) of this Section; (b) the name Cs) of managing partner(s) and the interest of each partner in the pawnbroker business; , (c) a true copy of the partnership agreem.ent shall be - submitted with the application. If' the ; partnership is required to file a certificate as " ; to a trade name pursuant to Minn. Stat. 333 .01, a certified copy of such certificate shall be attached to the application. (3) If the applicant is a corporation or other organization- (a) the name of the corporation or business form, and if incorporated, the state of incorporation, ; (b) a true copy of the Certificate of Incorporation, Articles of Incorporation, or Assoeiation t .. � , � � II;' �, - Agreement, and By-Laws shall be attached to the _ application. If the applicant is a foreign corporation, a Certificate of Authority as ;� required by Minn. Stat. 303 .06, shall be attached; , 'i (c) a list of all persons who control or own an � interest in excess of five percent (5%) in such ; organization or business form or who are officers . I of the corporation or business form and all information concerning said persons required in ' subpart (1) above. , (4) For all applicants: (a) whether the applicant holds a current pawnbroker � license from any other governmental unit and , whether the applicant is licensed under Minn_ . Stat. 471.924 . (b) whether the applicant has previously been denied a pawnbroker license from any other governmental unit; (c} the names, street resident addresses, and business addresses of three (3) residents of Hennepin, Ramsey, Anoka, Carver, Dakota, Washington, Scott, ;; _ Goodhue, or Rice County, who are of good moral } character and who are not related to the applicant �-- or not holding any ownership in the premises or :; business, who may be referred to as to the ; applicant' s and or manager's character; �; (d) the location of the business premises; (e) the legal description of the premises to be � licensed; ; . (f) whether all real estate and personal property taxes that are due and payable for the premises to _; be licensed have been paid, and if not paid, the - � years and amounts that are unpaid. � i ; (g) whether the application is for premises either planned or under construction of undergoing { substantial alteration, the application shall be :; accompanied by a set of preliminary plans showing the design of the proposed premises to be ; licensed. If the plans or design are in file with - the City of Rosemount Building/Inspections f Department, no plans need be submitted with the issuing authority; (h) such other information as the City Council or � --. issuing authority may require. Sec. 1-1-5: APPLICATION BXECUTION - All applications for a license under this Chapter shall be signed and sworn to. If the application is that of a natural person, it shall be signed and sworn to by such person; if that of a corporation, by an officer thereof; if that of a partnership, by one of the general partners; and if that of an unincorporated association, by the manager or ma.naging officer thereof. Any falsification on a license application shall result in the denial or revocation of a license. Sec 1-1-6: APPLICATION VERIFICATION All applicants shall be referred to the Police Department for verification and investigation of the facts set forth in the application. The Police Department shall ma.ke a written report and recommendation ta the City Council as to issuance or non- issuance of the license. The City Council may order and conduct such additional investigation as it deems necessary. Sec. 1-1-7 : APPLICATION CONSIDER.ATION A. The City Council shall conduct a hearing on the license = . application within a reasonable period following receipt of the — Police Departments report and recommendation regarding the application. At least ten (10) days in advance of the City Council hearing on an application, the issuing authority shall cause notice of the hearing to be published in the official newspaper of the City, setting forth the day, time, and place of the hearing; the name of the applicant; the premises where the business is to be conducted; and the type of license which is sought. At the hearing, opportunity shall be given to any person to be heard for or against the granting of the license. Additional hearings on the application may be held if the City Council deems additional hearings necessary. After the hearing or hearings on the application, the City Council, may, in its discretion, grant or deny the application. B. If an application is granted for a location where a building is under construction or no� ready for occupancy, the license shall not be delivered to the licensee until a certificate of occupaney has been issued for the licensed premises . , Sec. 1-1-8: RENEWAL APPLICATION A. All licenses issued under this Chapter shall be ; effective for one year from the date of approval by the City Council . An application for the renewal of an existing license shall be made prior to the expiration date of the license and J --. shall be ma.de in such fonn as the issuing authority requires. � If, in the judgement of the City Council, good and sufficient - cause is shown by the applicant for the applicant`s failure to submit a renewal application before the expiration of the `-��' existing license, the City Council may, if the other provisions of this Section are complied with, grant the renewal application. , B. A license under this section may not be renewed: � ' (1) if the City Council determines that the licensee has failed to comply with the provisions of this Chapter in preceding license years; � (2) if the licensee or, if the licensee does not manage to establishment, the manager of the licensed premises is not a resident of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington, Goodhue, or Rice counties on the date of renewal takes effect; (3) if in the case of a partnership, the ma.naging partner or other person who manages the establishment is not a resident of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington, � Goodhue, or Rice counties on the date of renewal ;--, takes effect; � � :�; (4) if in the case of a corporation, or other � — organization, the ma.nager, a proprietor, or agent � in charge of the establishment is not a resident � of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington, Goodhue, or Rice counties on the date the renewal takes effect; � (5) the time for establishing residence in the above named counties may for good cause be extended by ; the City Council . � Sec. 1-1-9: FSES � ! A. Investigation Fee: At the time of each original application for a license, the applicant shall deposit one thousand five hundred dollars ($-1, 500 .00) with the • City for the investigation fee. The investigation fee shall be three hundred fifty dollars ($350 .00) . � Provided, for investigations conducted outside the State, the City shall be paid the investigation costs in excess of three hundred fifty dollars ($350.00? , but - not to exceed ten thousand dollars ($10, 000 .00) . Any fees due in excess of the one thousand five hundred " : � dollars ($1, 500 .00) deposit must be paid prior to the license hearing and before the City Council considers the application. The remainder of the deposit shall be returned to the applicant. ` -- B. License Fee• -� (1) The license fee shall be paid annually, to be detennined from the date ot issuance of the license. (2) The annual license fee shall be set by City Council resolution. The application fee shall be credited to the first annual fee, if the application is approved: Sec. 1-1-10: PERSONS AND LOCATIONS INELIGIBLE FOR A LICEI�TSI3. A. No license under this Chapter shall be issued to an applicant who is a natural person if such applicant: (1) Is a minor at the time the application is filed; (2) Has been convicted of any crime directly related to the occupation licensed as prescribed by Minn. Stat. 364 .03 , Subd. 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minn. Stat. 34 .03,` Subd.3 -• — (3) Is not of good moral character or repute; or ' .� (4} Holds an intoxicating liquor license within the — Cit� of Rosemount. B. No license under this Chapter shall be issued to an � applicant that is a partnership if such applicant has any general partner or managing partner; . (1) Who is a mirior at the time that application is � f iled; , (2? Who has been convicted of any crime directly related to the occupation licensed as prescribed by Minn. Stat. 364.03, Subd. 2, and who has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties "of a pawnbroker as prescribed by Minn. Stat. 364.03, Subd. 3; : (3) Who is not of good moral character or repute; or i (4) Who holds an intoxicating liquor license within � the City of Rosemount. ( C. No license under this Chapter shall be issued to an j � applicant that is a corporation or other organization if such applicant has any manager, proprietor, or agent ; in charge of the business to be licensed: j - (1) Who is a minor at the time the application is filed; (2) Who has been convicted of any crime directly related to the occupation licensed as prescribed by Minn. Stat. 364.03 , Subd. 2, and who has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minn. Stat. 364 .03 , Subd. 3; (3) Who is not of good moral character or repute; or (4) Who holds an intoxicating iiquor license within the City of Rosemount. Sec 1-1-11: GENSRAL LICENSE RESTRICTIONS A. Recordkeeping. At the time of a receipt, sale, or redemption of an item of property, the pawnbroker shall � immediately record, using the English language, in an indelible _ ink, the following information: (1) An accurate description of the item of property including, but not limited to, any tradema.rk, identification number, serial number, model number, brand name, or other identifying mark of � such item; (2) The date, time and place the item of property was received by the pawnbroker; (3) The amount of money loaned upon or pledged , therefor; , (4) The full name, residence address, residence telephone number, date of birth, and reasonably i accurate description of person from whom the item of property was received, including; sex, height, race, color of eyes, and color of hair; ' (5) The identification number from one of the following forms of identification of the person from whom the item was received; ; (a) A valid Minnesota driver`s license; (b) A valid Minnesota identification card; � �j (c) A valid photo identification issued by the �' State of residency of the. person from whom - the item was received and one other farm of identification; e. . . � . . � . . � . (6) The signature of the person pledging or selling the item; (7) The pawnbroker will also take a color photograph of frontal view of this person. cross-referenced , to the properties. The Rosemount Police Department may approve a video in lieu of color photograph if the video produces the same quality picture; and (S) A color photograph of any precious rnetals involved in a transaction. The Rosemount Police Department may approve a video in lieu of a color photograph if the video produces the same quality picture. B. Ins�ection of Records . The pawnbroker `shall provide to the Rosemount Police Department the informa.tion required in subpart (a) of this Section by leaving complete and correct copy of records with the Police Department every business day� before the hour of 12 :00 noon. When possible, records left with the Police Department should be contained on computer disk for retrieval of information by the Police Department' s computer system. The information required in subpart (A) of this Section shall be retained by the pawnbroker for at least four (4} years. The license must display a sign, in a conspicuous place in the premises and of a sufficient size, which informs all patrons that ' all transactions are reported to the Rosemount Police Department. � C. Police Order to Ho1d Property. Whenever the Rosemount Police Department, upon reasonable suspicion that an item received by the pawnbroker may have been stolen, notifies the pawn broker not to sel:l an item, the item shall not be sold or removed from the licensed premises until authorized to be released by 'the Police Department or a period of thirty (30) days, whichever is the lesser. Oral notification to hold property shall be confirmed in writing by the Police Department. D. Receipt. The pawnbroker shall provide a receipt to the ; seller or pledger of any item of property received, which shall � include: ; (1) The name, address, and telephone nurnber of the pawnbroker business; (2) The date on which the item was' received by the pawnbroker; ' (3) A description of the item received and amount paid ; to the gledger or seller in exchange for the item ; pawned or sold; � (4} The signature of the pawnbroker or agent; (5? The last regular business day by which the item , -, must be redeemed by the pledger without risk that the item will be sold and the amount necessary to � redeem the pawned item on that date. �._; � (6) The annual rate of interest charged on pawned items received; ! (7) The name and address of the seller or pledger. � , E. Hours of Operation. No pawnbroker shall keep the ' pawnbroker business open for the transaction of business on any � day of the week before 8 :00 a.m. or after 9;00 p.m. F. Minors . The pawnbroker shall not purchase or receive personal property of any nature or pledge from any minor. G. Inspection of Items . The pawnbroker shall at all times during the term of the license, allow the Rosemount Police Department and other law enforcement authorities associated with the Rosemount Police Department to enter the premises where the pawnbroker business is located 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 for the purpose of locating items suspected or i alleged to have been stolen or otherwise improperly disposed of. � H. License Display. A license issued under this Chapter ! E must be posted in a conspicuous place in the premises for which ; �� it is used. The license issued is only effective for the compact and contiguous space specified in the approved license � application. I. Maintenance Order. A license under this Chapter shall be responsible for the conduct of the business being operated and shall maintain conditions of order. ; ' J. GamblinQ. No license under this Chapter may keep, possess, or operate, or permit the keeping, possession, or operation on the licensed premises of dice, slot machines, roulette wheels, punchboards, blackjack tables, or pinball machines which return coins or slugs, chips, or tokens of any kind, which are redeemable in merchandise or cash. ` No gambling equipment authorized under Minn. Stat. Chapter 349, may be kept or operated and no raffles may be conducted on the licensed premises and/or adjoining rooms. The purchase of lottery tic3�ets may take place in the licensed premises as authorized by the i director of the lottery pursuant to Minn. Stat. Chapter 349A. K. Prohibited Goods . No license under this Chapter shall aceept any item of property which contains altered or obliterated serial numbers of "Operation Identification" number or any item - of property whose serial number has been removed. L. Pr.oger ldentification. A licensee under this Chapter shall -- not accept items of property unless the seller or pledger provides one of the following forms of identification: - i? a valid drivers license; ii) a Minnesota identification card; or iii) a photo identification issued by the state of residency of the person from whom the item was received; : iv) military identification; or v) passports. No other forms of identification shall be accepted. M. Redemption Period. Any person pledging, pawning or depositing an article for security shall have a minimum of thirty {30) days from the date when the loan or pledge becomes due an payable to redeem the article before the article becomes forfeitable. The date by which an item of property that has been pawned must be redeemed by the pledger without risk that the item will be sold must be a day on which the pawnbroker is open for regular business. - N. Payment by Check. When a pawnbroker accepts an item for _ � purchase or as security for a loan, payment for any article ; =; deposited, left, pledged or pawned shall be made only by a check, � draft', or other non-negotiable instrument or order of withdrawal which is drawn against funds held by a financial institution. This policy must be posted in a conspicuous place in the premises. . O. Restrictions on Sale. A pawnbroker sha11 suspend for one {1) year, any business transaction with any person who has sold and/or forfeited on six (6) previous occasions articles for which the person received $25 .00 or more per transaction within a single six (6) month period. P. Premises. Al1 property deposited, left, pledged, pawned, or � held for sale must be stored in an enclosed facility and may not be stored outside of the premises. The City may, however, permit the licensee to designate one fl} off premises locked and secured facility in which the licensee may store only cars, boats, and other motorized vehicle. The licensee shall permit immediate inspection of the facility at any time during business hours' by the City. All provisions in this section regarding record keeping and reporting shall apply to oversized items. All property shall be stored in compliance with zoning and/or fire - - regulations and in an orderly manner subject to inspection by the Fire Department. The premises shall also be equipped with an operational security alarm. i i Sec. 1-1-12: RESTRICTIONS RF3GARDING LICBNSE TRANSFER Each license under this Chapter shall be issued to the - applicant only and shall not be transferable to any other person. - No license shall loan, sell, give, or assign a license to another person. Sec 1-10-13 : SIISPENSION OR RLVOCATION OF LIC�TSl3. A. The City Council may suspend or revoke a license issued under this Chapter upon a finding of a violation of: (1) any of the provisions of this Chapter; (2) any state statute regulating pawnbrokers, or (3) any state or local law relating to moral character and repute. B. A revocation or suspension by the City Council shall be preceded by written notice to the licensee and a public hearing. The written notice shall give at least eight (S) days' notice of the time and place of the hearing and shall state the nature of the charges against the pawnbroker. The notice ma.y be served upon the pawnbroker personally or by United States mail addressed — to the most recent address in license application. Sec. 1-1-14: PROBIBITRD ACTS. No pawnbroker licensed under this Chapter shall : (1) Lend money on a pledge at a rate of interest above that allowed by law; ; (2) Knowingly possess stolen goods; (3) Sell pledged goods before the time to redeem has expired; (4) Refuse to disclose to the City, after having sold pledged goods, the name of the purchaser or the ; price for which the item sold; or (5) Make a loan on a pledge to a minor. i Section 2 . Effective Date. This ordinance shall be effective immediately upon its passage and publication. i . ADOPTSD this da�r of , 1994, by the City _ Council of the City of Rosemount. _'.:;�1 .. . . � . . . � . � . . - . CITY OF ROSEMOUNT BY• E.B. McMenomy, Mayor ATTEST Susan Walsh, City Clerk ; s i ; ; ; ; _ ; � _ I . i � ORD INANCFs NIIb�ER XV.2 9 i CITY OF ROSEblOUNT I ::�.; DAROTA COIINTY. ffiINNSSOTA i � � ; AN ORDINANCL REGIILATING PA�l�T S80PS AND PA�PN BRORLRS i The City Council of the City of Rosemount, Minnesota ordain as ! follows: SII�tARY OF CONTSNT OF ORDINANCE XV.29 The City Council of the City of Rosemount on October 4, 1994 adopted an ordinance that regulates pawn shops and pawn brokers. The ordinance establishes guidelines by which pawn shops and pawn � brokers can operate in the City of Rosemount. The ordinance also i establishes license and application guidelines. Printed copies of the entire text of the City Code and this ordinance are + available, for sale or inspection, at the Rosemount City Hall during regular business hours. SECTION 1-1-1: (PIIRPOSE) This section establishes the � purpose behind the ordinance. � SECTION 1-1-2 : (DEFINITIONS) This section defines the language — that is used in the ordinance. ; � i _ � - ' � �� S]3CTION 1-1-3 : (LICENSE REQIIIRBD) This section esta.blishes that j J a license is required to be engaged in this business in the City ; � of Rosemount. � SECTION 1-1-4: (APPLICATION C4NTSNT) This section establishes � what information will be required on the application for license. SECTION 1-1-5: (APPLICATION EXECUTION) This section requires that the application for license shall be signed and sworn. ' SLCTION 1-1-6: (APPLICATION VERIFICATION) This section states that all applications shall be referred to the Police Department � for investigation. - -i ' SECTION 1-1-7s (APPLICATION CONSIDER.ATION) This section establishes that license applications shall be considered by the I City Council . ' SECTION 1-1-8: (RENEWAL APPLICATION) This section establishes � the guidelines by which licenses shall be renewed by the City. SECTION 1-1-9 : (FEES) This section establishes the fees that are associated with the investigation and license procedures. SECTION 1-1-10: (PERSONS AND LOCATIONS INELIGIBLE FOR A � - LICENSE) This section establishes individuals and locations who are ineligible for a license for pawn shop and pawn broker. ; � • -- SECTION 1-1-11: (G�TR�nT• LIC�TSB RI�STRICTIONS) This section establishes the requirements of the pawn shop and pawn brokers business. SLCTION 1-1-12: (RESTRICTIONS REGARDING LICENSE TR.ANSFLR) This section established the limitations on license transfers. SSCTION 1-1-13: (SIISPENSION OR RS�TOCATION OF LIC�TSL) This section establishes guidelines by which the City may suspend or revoke the pawn shop or pawn brokers license. SECTSON 1-1-14: (PROHIBITED ACTS) This section establishes the prohibited acts of pawn shops and pawn brokers. This ordinance shall become effective the day after its publication. Adopted this 4th day of October, 1994. CITY OF ROSEMOUNT E.B. McMenomy, Mayor { ' ATTEST: � Susan Walsh, City Clerk Published in the Rosemount Town Pages this day of , 19 i i ;