Chapter 5.20
SECONDHAND DEALER LICENSE

Sections:

5.20.010    Purpose.

5.20.020    Definitions.

5.20.030    License requirement, application, issuance, inspection, and revocation.

5.20.040    Review criteria.

5.20.050    Submission requirements.

5.20.060    Performance standards.

5.20.070    Retention and return of goods.

5.20.080    Purchases from minors.

5.20.090    Transferability.

5.20.010 Purpose.

The purpose of this chapter is to regulate the purchase and sale of used property by certain businesses. [Ord. 948 § 6, 2016; Ord. 852 § 2, 2007. Formerly 5.20.020]

5.20.020 Definitions.

“Dealer” means a person who is engaged in the business of selling, purchasing, trading, bartering or exchanging secondhand goods. A “dealer” includes pawnbrokers.

“Secondhand goods” means all personal property which has been used or possessed previously by another and includes previously owned precious metals such as gold, silver and platinum, jewelry, coins, firearms, hand and power tools, and any article with a manufacturer’s serial number. [Ord. 948 § 6, 2016; Ord. 906 § 1, 2012; Ord. 852 § 3, 2007. Formerly 5.20.030]

5.20.030 License requirement, application, issuance, inspection, and revocation.

In addition to the requirements in Chapter 5.05 HMC, an application for a secondhand dealer license shall comply with all of the criteria in HMC 5.20.040. [Ord. 948 § 6, 2016.]

5.20.040 Review criteria.

A secondhand dealer license shall comply with the following:

1. The applicant shall be subject to a criminal background check.

a. In considering the criminal background check, emphasis shall be given to any arrests or convictions of crimes of violence, sex offenses, narcotics, alcoholic beverage laws, and fraud.

2. The application shall comply with the provisions of this chapter. [Ord. 948 § 6, 2016.]

5.20.050 Submission requirements.

In addition to the requirements in HMC 5.05.070, an application for a secondhand dealer license shall include:

1. A photograph taken within 60 days of application submission. The photograph shall be two inches by two inches showing the head and shoulders of the applicant in a clean and distinguished manner.

2. A copy of a valid government issued identification. [Ord. 948 § 6, 2016.]

5.20.060 Performance standards.

1. Every dealer conducting business in the City shall file a report, on a form provided by the City, of all purchases of any pawned or secondhand goods as follows: precious metals, jewelry, coins, firearms, hand and power tools, or any article with a manufacturer’s serial number. The report form must be completely filled out, including an accurate and sufficiently detailed description of the secondhand goods purchased; the name, date of birth, sex, and address of the person from whom the item was purchased or acquired; the day and hour of the purchase and price paid; and serial numbers of secondhand goods purchased, if applicable. If the item is jewelry, a photograph of the item shall be provided with the report.

a. Reports shall be submitted to the City within five days of the purchase of secondhand goods.

b. If the secondhand goods are acquired from an entity rather than an individual, the report must provide relevant information on both the entity and the individual agent from whom the goods were acquired.

c. Dealers shall keep a record of the report form for no less than one year after submitted to the City.

d. For all purchases of secondhand goods, the dealer will inspect, record, and submit with the report one of the following:

(1) A valid driver’s license.

(2) A valid State identification card.

(3) A valid military identification card.

(4) A valid passport, visa or alien registration card with photo.

(5) A valid Federal firearms license, if the dealer is purchasing secondhand firearms. [Ord. 948 § 6, 2016.]

5.20.070 Retention and return of goods.

1. All secondhand goods that must be reported shall be retained on the premises for a period of at least 20 days from the date of purchase.

2. All secondhand goods that must be reported and have an altered, obstructed or removed serial number, inscription or other identifying mark shall be retained for a period of at least 60 days from the date of purchase.

3. A dealer shall promptly turn over to a law enforcement official any item identified as stolen property by any law enforcement agency. If requested by the dealer, the law enforcement official shall give a receipt for all items received from the dealer. The receipt shall include the law enforcement agency’s name, address and case number. [Ord. 948 § 6, 2016.]

5.20.080 Purchases from minors.

No dealer may purchase or acquire from a person less than 18 years of age any secondhand goods without written consent of the parents or legal guardian of the minor. [Ord. 948 § 6, 2016.]

5.20.090 Transferability.

No transfer or assignment of a secondhand dealer license shall be valid or permitted. [Ord. 948 § 6, 2016.]