Chapter 5.03
SECONDHAND DEALERS
Sections:
5.03.003 Dealer’s permit required.
5.03.004 Dealer’s permit application.
5.03.009 Revocation and suspension.
5.03.011 Dealer report and holding of article.
5.03.001 Purpose and scope.
This chapter is designed:
(1) To provide for regulation of certain business activities the city council believes present an extraordinary risk of being used as a means of concealing criminal behavior involving the theft of personal property. Despite the best efforts of legitimate businesses to prevent it, this risk is present because of the large volume of goods processed in such businesses which can be subject to theft; and
(2) To reduce criminal activity by providing more timely police awareness of business transactions involving materials which may have been obtained through illegal means. (Ord. 3258, 2020)
5.03.002 Definitions.
As used in this chapter, the singular includes the plural, and the following words and phrases, unless the context requires otherwise, shall have the following meanings:
(1) “Antique” means an item of personal property possessed or valued because of its character, craft, style, rarity, and association with an earlier period of time that is purchased for more than $50.00 by an antique dealer. “Antique” does not include vehicles and/or vehicle components.
(2) “Antique dealer” means a person engaged in, conducting, managing, or carrying on the business of selling antiques acquired by purchasing antiques from any person not representing a bona fide business, who appears with the article at the dealer’s place of business, or by acquiring such items by purchasing from another bona fide, legitimate, and reputable business.
(3) “Article” means an antique, secondhand, or precious metal and gem, as defined by this section.
(4) “Chief of police” means the city of St. Helens chief of police or the chief of police’s designee.
(5) “Dealer” means a person operating as an antique dealer, precious metal and gem dealer, or secondhand dealer, or any of them.
(6) “Precious metal and gem” means any metal or gem that is valued for its character, rarity, beauty, or quality, including gold, silver, platinum, diamonds, rubies, sapphires, and pearls, and any other gems, whether as a separate item or in combination as a piece of jewelry, but excluding the following items:
(a) Gold bullion bars (0.995 fine or better);
(b) Silver bullion bars (0.995 fine or better); and
(c) Coins, whether actual currency or commemorative, from all countries.
(7) “Precious metal and gem dealer” means a person engaged in, conducting, managing, or carrying on the business of selling precious metals and gems acquired by purchasing precious metals and gems from any person not representing a bona fide business, who appears with such article at the dealer’s place of business, or by acquiring such items by purchasing from another bona fide, legitimate, and reputable business.
(8) “Purchase” means transfer of an article from a person or business, including persons not representing a bona fide business, to any dealer regulated by this chapter, for any valuable consideration. “Purchase” does not include consignment of property for sale.
(9) “Secondhand articles” includes the following used personal property:
(a) Electronic equipment and/or digital devices and their accessories, including but not limited to recording devices, televisions, radios, stereos, speakers, amplifiers, cameras, camcorders, projectors, DVD players, and VCRs;
(b) Communication devices such as telephones, walkie-talkies, and cell phones;
(c) Household items and appliances such as microwave ovens, sewing machines, silverware, dishes, air conditioners, home accessories, and the like;
(d) Personal items such as clothing, jewelry, and watches;
(e) Firearms;
(f) Maintenance and landscaping equipment including but not limited to power tools, lawn mowers, edgers, trimmers, chainsaws, routers, air compressors, wrench sets and socket sets; and
(g) Office equipment, including but not limited to computers, typewriters, calculators, copy machines, and fax machines.
(10) “Secondhand dealer” means a person engaged in, conducting, managing, or carrying on the business of selling goods and articles acquired by purchasing secondhand articles from any person not representing a bona fide business, who appears with such article at the dealer’s place of business, or by acquiring items by purchasing from another bona fide, legitimate, and reputable business. (Ord. 3258, 2020)
5.03.003 Dealer’s permit required.
No person shall engage in business as a dealer in the city without first obtaining a permit from the city and paying a dealer’s permit fee set by city council resolution. This dealer’s permit is separate from the requirement to obtain a business license as required by the terms of Chapter 5.01 SHMC. (Ord. 3258, 2020)
5.03.004 Dealer’s permit application.
Application for a dealer’s permit under this chapter shall be made on a form provided by the city. (Ord. 3258, 2020)
5.03.005 Application review.
Applications for a dealer’s permit shall be reviewed by the chief of police or designee who shall review and then approve or deny issuance of a dealer’s permit consistent with the provisions of SHMC 5.03.006. (Ord. 3258, 2020)
5.03.006 Permit procedure.
A dealer shall apply for a dealer’s permit in the following manner:
(1) No dealer’s permit shall be issued unless the applicant is operating from a fixed location in the city.
(2) An applicant for a dealer’s permit shall complete and submit an application (including required personal history forms) that sets forth the following information:
(a) The name, mailing address, telephone, birth date, social security number and principal occupation of all owners and any person who will be directly engaged or employed in the management or operation of the business or the proposed business;
(b) The name, mailing address, and telephone number of the business or proposed business and a description of the exact nature of the business to be operated;
(c) The web address of any and all webpages used to acquire or offer for sale articles on behalf of the dealer, and any and all internet auction account names used to acquire or offer for sale articles on behalf of the dealer;
(d) Written proof that all principals are at least 18 years of age;
(e) The business license and permit history of the applicant in operating a business identical to or similar to those regulated by these provisions;
(f) A brief summary of the applicant’s business history in any jurisdiction including:
(i) The business license or permit history of the applicant; and
(ii) Whether the applicant or any principal has ever had any business-related license or permit revoked or suspended, the reasons therefor and the business activity or occupation of the applicant or principal subsequent to the suspension or revocation;
(g) Whether the applicant will be a sole proprietor, partnership, limited partnership, family limited partnership, joint venture, association, cooperative, trust, estate, corporation, personal holding company, limited liability company, limited liability partnership, or any other form of organization for doing business;
(i) If a partnership, the application must set forth the names, birth dates, addresses, telephone numbers, and principal occupations, along with all other information required of any individual applicant, of each partner, whether general, limited, or silent, and the respective ownership shares owned by each;
(ii) If a corporation or limited liability company, the application must set forth the corporate or company name, copies of the articles of incorporation or organization and the corporate bylaws or operating agreement, and the names, addresses, birth dates, telephone numbers, and principal occupations, along with all other information required of any individual applicant, of every officer, director, member or manager, and shareholder (owning more than five percent of the outstanding shares) and the number of shares held by each;
(h) If the applicant does not own the business premises, a true and complete copy of the executed lease, and the legal description of the premises to be permitted, must be attached to the application;
(i) All arrests or convictions of each principal;
(j) Upon request, principals and employees shall submit to the city police department the following information:
(i) Fingerprints;
(ii) Passport size photographs; and
(iii) A copy of the signature initials to be used by persons on article transaction report forms. Principals and employees must submit new photos if requested to do so by the city police department;
(k) Any other information that the chief of police may reasonably feel is necessary to accomplish the goals of these provisions. (Ord. 3258, 2020)
5.03.007 Issuance or denial.
The city administrator shall issue a dealer’s permit if the chief of police is assured that the dealer applicant and employees of the dealer have satisfied the conditions set out in SHMC 5.03.006. If the chief of police determines that the dealer’s application should be denied, the chief shall notify the applicant in writing. The notice shall state the reason for denial and inform the applicant of the review and appeal provisions in Chapter 5.01 SHMC. (Ord. 3258, 2020)
5.03.008 Review of denial.
An applicant for a dealer’s permit whose application is denied may have the decision reviewed by the city administrator by filing a written request with the city administrator within 10 days of the notice of denial from the chief of police. The city administrator shall send a written notice of the decision to the applicant. A decision of the city administrator which upholds a denial may be appealed to the city council as provided by Chapter 5.01 SHMC. (Ord. 3258, 2020)
5.03.009 Revocation and suspension.
(1) Along with the other regulatory enforcement authority granted in these provisions, the chief of police may revoke or suspend any permit issued to a dealer:
(a) For any cause that would be grounds for denial of a permit;
(b) Upon finding any violation of the provisions of this code relating to dealers;
(c) Upon a finding of a violation of federal, state, or other local law being committed connected with the operation of the dealer’s business location so that the person in charge of the business location knew, or should reasonably have known, that violations or offenses were occurring;
(d) A lawful inspection has been refused; or
(e) If any statement contained in the application for the permit is false.
(2) The chief of police, upon revocation or suspension of any permit issued pursuant to these provisions, shall give the dealer written notice of the revocation or suspension.
(a) Service of the notice will be accomplished by mailing the notice by regular and certified mail, return receipt requested.
(b) Mailing of the notice by regular mail will be prima facie evidence of receipt of the notice.
(3) Revocation will be effective and final 10 days after the giving of notice unless the revocation is appealed.
(4) Suspension will be effective immediately upon the giving of notice, for the period of time set in the notice not to exceed 30 days. (Ord. 3258, 2020)
5.03.010 Dealer register.
(1) Dealers shall keep a book register of all articles purchased by the dealer. The register shall contain a full, true, and complete description of the subject article, including any engraved identifying number, mark, or symbol.
(2) The register shall show the hour and the day the article was received and the amount paid. In addition, the register shall include the name, address, and signature of the person from whom the purchase is made. The name and address shall be verified by obtaining two pieces of identification at the time of purchase.
(3) The register information on a purchase shall be retained by the dealer for a period of not less than one year. Upon request, the chief of police shall be allowed to review the register and any articles in possession of the dealer and subject to this chapter. Inspection of register and articles shall be during regular business hours.
(4) Each article identified in the dealer’s register shall be identified in the register with a number, letter, or symbol. The article itself, while in possession of the dealer, shall be identified by placing that number, letter, or symbol on the article. (Ord. 3258, 2020)
5.03.011 Dealer report and holding of article.
(1) All dealers shall, at the time of purchase of an article, complete the form provided by the chief of police. Completed forms must be returned to the chief of police not later than the next business day following the purchase. Placing the completed form in the mail not later than the next business day following the purchase shall be considered timely return. Postmark of the mailing of the completed form shall be verification of the timeliness of the return.
(2) Each article, subject to this chapter, shall not be sold or otherwise disposed of for a period of 15 days from the date of purchase. Notwithstanding this requirement, the chief of police may authorize, in cases in which it is shown that extreme financial hardship will result from holding an article for the 15-day period, sale or transfer of such article before the expiration of this period. Any authorization to sell an article prior to the expiration of 15 days shall be in writing.
(3) If the chief of police, upon reasonable suspicion, believes that an article is the subject of a theft, and notifies the dealer in writing not to dispose of any specifically described article, the article shall be retained in substantially the same form and shall not be sold, exchanged, dismantled, or otherwise disposed of for a period of time, not to exceed 30 days, as determined by the chief of police. (Ord. 3258, 2020)