Chapter 5.60
PAWNBROKERS, SECONDHAND DEALERS AND JUNK DEALERS

Sections:

5.60.010    Definitions.

5.60.020    Permit required.

5.60.030    Compliance with state laws.

5.60.040    Overlapping businesses.

5.60.050    Compliance with laws.

5.60.060    Revocation and suspension of permits.

5.60.070    Reports of purchases.

5.60.080    Filing of reports.

5.60.090    Records of purchases.

5.60.100    Exemptions from required reports.

5.60.110    Compliance with report and record requirements.

5.60.120    Sales of merchandise by dealers.

5.60.130    Signs.

5.60.140    Hours of business.

5.60.150    Overlapping businesses.

5.60.160    Claims to stolen property.

5.60.010 Definitions.

For the purposes of this chapter, certain words and phrases are defined as follows:

“Junk” shall have the same definition as set forth in Business and Professions Code section 21600, as the same may be amended from time to time.

“Junk collector” means a person not having a fixed place of business in the city who goes from house to house or from place to place gathering, collecting, buying, selling or otherwise dealing in old rags, sacks, bottles, cans, paper, metal or other articles commonly known as junk.

“Junk dealer” shall have the same meaning as set forth in Business and Professions Code section 21601, as the same may be amended from time to time. “Junk dealer” also includes a “junk collector” as defined in Section 5.08.240 of this Code.

“Pawnbroker” shall have the same meaning as set forth in Financial code section 21000, as the same may be amended from time to time.

“Pawnshop” means any room, store or place in which the business of a pawnbroker is carried on or conducted.

“Secondhand dealer” shall have the same meaning as set forth in Business and Professions Code section 21626 et seq. as the same may be amended from time to time.

“Trade-ins, Tires and Batteries.” The acceptance, sale or disposal of used automobile tires or automobile batteries taken in part payment for new tires or batteries shall not be deemed to constitute the doing of any business defined in this chapter. (Ord. 1601 § 54 (part), 2000; prior code § 6-6.01)

5.60.020 Permit required.

A. No person shall engage in, conduct, manage, carry on or deal in any business defined in Section 5.60.010 without first obtaining a permit from the community development director in accordance with the provisions of Section 5.04.160 of this Code. However, the only department that the application shall be forwarded to shall be the Police Department. The Chief of Police shall direct that the permit be granted to any applicant who has not been convicted of an attempt to receive stolen property or any other offense involving stolen property.

B. The permit required by this section shall be in addition to any land use approval that may be required pursuant to Title 18 of the Gardena Municipal Code. (Ord. 1726 § 28 (part), 2011; Ord. 1601 § 54 (part), 2000; prior code § 6-6.02)

5.60.030 Compliance with state laws.

Once a permit is issued for any business defined in 5.60.010, the permittee shall comply with all applicable provisions of State law. (Ord. 1601 § 54 (part), 2000; prior code § 6-6.03)

5.60.040 Overlapping businesses.

If any person shall engage in, conduct, manage or carry on at the same time more than one of the businesses defined in Section 5.60.010, such person shall be deemed to be engaging in, conducting and carrying on each such business separately and apart from the other such business, and such person shall comply in all respects with the provisions of this chapter relating to each such business. (Ord. 1601 § 54 (part), 2000; prior code § 6-6.04)

5.60.050 Compliance with laws.

A. The council shall not grant any permit provided for in this chapter to persons who fail, refuse or neglect to comply with the laws relating to and regulating the business for which such permit is sought.

B. Persons applying for or obtaining permits pursuant to the provisions of this chapter shall comply with the provisions of this chapter. (Prior code § 6-6.05)

5.60.060 Revocation and suspension of permits.

A. Grounds. Any permit issued pursuant to the provisions of this chapter may be revoked or suspended upon the following grounds:

1. If persons holding permits under the provisions of this chapter shall violate any of the provisions of this chapter or any provision of any other law relating to or regulating any such business, or shall conduct or carry on such business in an unlawful manner, the chief of police, in addition to any other penalties provided by this code, shall revoke such permit issued to such person; and

2. Upon any showing that any person holding such permit is not conducting his business in accordance with the provisions of the laws of the state or of the city, the chief of police may revoke or suspend such permit issued to such person.

B. Hearing. Any person whose license is revoked or suspended may, within ten days thereafter, apply to the council for a hearing thereon, or the council may, of its own accord, require such hearing. At any such hearing the council may approve the revocation or suspension ordered by the chief of police or it may make any order it deems proper with reference to the revocation or suspension of any permit.

C. Refunds. In the event of a revocation or suspension of a permit, there shall be no refund of any permit fee or license theretofore paid by the permittee.

D. Opinion Conclusive. The opinion of the council shall be conclusive with reference to any suspension or revocation of any permit or license issued pursuant to the provisions of this chapter.

E. Reissuance of Revoked Permits. No permit shall be granted to any person to conduct, manage, carry on, or deal in any business defined in Section 5.60.010 and whose permit has been revoked by the council until six months have elapsed after such revocation. (Prior code § 6-6.06)

5.60.070 Reports of purchases.

A. Required – Contents. All persons licensed by the provisions of this chapter shall secure blank report forms from the chief of police. Such reports shall be made out and delivered to the chief of police each day before ten a.m. and shall contain the following data:

1. A full, true and complete report of all goods, wares and merchandise or things received on deposit, pledged, purchased, or received during the day preceding the filing of such report;

2. The hour of the day such article was received, pledged or purchased;

3. The true name and address of the person making the sale, delivery or pledge as nearly as the same is known or can be ascertained, together with a description of such person which shall include his height, age, sex, complexion, style of dress and color of mustache, if any, and if lacking a mustache, such fact shall be noted;

4. The number of the pawn ticket if a pledge is involved and the amount loaned or pledged; and

5. The article pledged, received or purchased shall be described. If such article is engraved or contains any settings, the description thereof shall include such number, figure, word or initial engraved thereon and shall show the kind and number of settings.

B. Report Form. Such blank report forms shall bear a caption providing blank spaces in which shall be written or printed the date of such report, the name and place of business of the person making the report, and the hour of day when the report is received by the chief of police. Such forms shall be so printed and subdivided as to contain spaces with proper captions for the information required by the provisions of this subsection.

C. Scrap Metal Dealer’s Exception. Every junk dealer or person engaged in the business of purchasing scrap metals for the purpose of reselling, smelting, or refining such metal shall comply with the provisions of subsection A of this section except that when purchases are made from a junk collector, in lieu of the description required by subsection A3 of this section, the true name and city license number of such junk collector shall be sufficient. (Prior code § 6-6.07)

5.60.080 Filing of reports.

The chief of police shall file in a secure place in his office all reports and records received pursuant to the provisions of this chapter, and the same shall be open to inspection only by members of the police department or upon an order of a court of competent jurisdiction made for that purpose. Every such report and record required to be filed or kept shall be written or printed in a clear and legible manner entirely in the English language. (Prior code § 6-6.08)

5.60.090 Records of purchases.

All persons licensed by the provisions of this chapter shall keep a complete record of all goods, wares, merchandise, and things pledged to, purchased, or received by him, which record shall contain all of the matters required to be shown in the reports referred to and described in Section 5.60.070. Such records shall be open at all times during business hours to the inspection of any member of the police department. (Prior code § 6-6.09)

5.60.100 Exemptions from required reports.

The provisions of Section 5.60.070 of this chapter shall not apply to the receipt or sale by junk dealers or junk collectors of any rags, bottles, secondhand sacks or bags, barrels, cans, shoes, lamps, stoves or household furniture, with the exception of musical instruments or scrap iron when bought and sold for scrap, or to the purchase or sale of secondhand dealers of household furniture, with the exception of musical instruments, typewriters, accounting machines, adding machines, check writing machines, comptometers, or other similar equipment, or to the purchase or sale of sacks, bags, or rags. (Prior code § 6-6.10)

5.60.110 Compliance with report and record requirements.

No person engaging in, conducting, managing or carrying on any of the businesses defined in Section 5.60.010 shall fail, refuse or neglect to file any report in the form, manner, time and otherwise in all respects in accordance with the requirements of this chapter, or fail, refuse or neglect to keep records in the form and manner required by this chapter, or fail, refuse or neglect to exhibit to a member of the police department immediately upon demand for inspection any record of any goods, wares, merchandise, articles, or things pledged to, purchased by, or received by such person. (Prior code § 6-6.11)

5.60.120 Sales of merchandise by dealers.

A. Pawnbrokers and Secondhand Dealers. Pawnbrokers and secondhand dealers shall not sell or otherwise dispose of any article or thing within thirty days after such article or thing has been purchased or received by such pawnbroker or secondhand dealer.

B. Junk Dealers and Junk Collectors. Junk dealers and junk collectors shall not sell or otherwise dispose of any article or thing within seven days after such article or thing has been purchased or received by such junk dealer or junk collector.

C. Scrap Metal Dealers. Junk dealers and other persons engaged in the business of purchasing scrap metals for the purpose of reselling, smelting or refining the same shall retain and keep in a separate place on their premises the entire purchase of each day. Each day’s purchase shall be kept in such place in its original condition for a period of seven days after the purchase or receipt thereof and shall at all times be open to the inspection of the police department. (Prior code § 6-6.12)

5.60.130 Signs.

All persons licensed by the provisions of this chapter shall maintain on the premises where their business is located a sign plainly printed in the English language of sufficient size so that the same may be easy to read from the sidewalk in front of such place of business. Such sign shall state the business in which such person is engaged. If the business is located in an office building, the sign shall be placed on the door of the office. If the business is located in a department of any building, the sign shall be placed at the entrance to such department. (Prior code § 6-6.13)

5.60.140 Hours of business.

No person operating, managing, or carrying on any business defined in Section 5.60.010 shall accept any pledge, loan money upon personal property, purchase or receive any article, or carry on or transact such business in any manner, nor shall any person carry on or transact any business of whatever character or buy or sell any article, new or used, at any place of business for which a junk dealer’s permit, pawnbroker’s or pawnshop permit, or secondhand dealer’s permit is issued, between 7:00 p.m. of any day and 7:00 a.m. of the following day, except that hours of business on Sundays shall be limited to 9:00 a.m. to 6:00 p.m. (Ord. 1695 § 1, 2007; prior code § 6-6.14)

5.60.150 Overlapping businesses.

If any person shall engage in, conduct, manage or carry on at the same time more than one of the businesses defined in Section 5.60.010, such person shall be deemed to be engaging in, conducting and carrying on each such business separately and apart from the other such business, and such person shall comply in all respects with the provisions of this chapter relating to each such business. No person shall fail, refuse, or neglect otherwise to do so. (Prior code § 6-6.15)

5.60.160 Claims to stolen property.

A. In all cases where a claim is made to property pawned with or sold to a person holding a permit issued pursuant to this chapter by a person claiming to be the owner thereof and asserting that property was stolen, the chief of police shall, after a hearing upon notice, determine the validity of such claim and the immediate disposition which should be made as to the possession of the claimed property as provided in this section.

B. If the chief of police shall determine that such property was stolen, that the claimant is the owner thereof, and that there is no collusion between the claimant and the person by whom such property was stolen, the chief of police shall direct that such property be returned forthwith to the claimant without compensation of any kind being paid therefor.

C. In the event such direction shall be disobeyed, the permit under which such pawnbroker, secondhand dealer, junk dealer or junk collector is permitted to conduct his business may be revoked or suspended by the chief of police without further hearing.

D. The council may designate any member of the police department to hear the evidence at any or all hearings that may be held pursuant to this section and to report his findings thereon to the council, but in all cases the chief of police shall determine the disposition of the property.

E. If, prior to the determination by the chief of police upon any claim made pursuant to this section, an action at law is brought by or against the person in possession of the property to establish the ownership of, or the right to possession of, the property, the chief of police shall upon notice thereof suspend proceedings upon the claim. (Prior code § 6-6.16)