Chapter 5.55
PAWNBROKERS

Sections:

5.55.010    License required.

5.55.020    Pawnbroker and pawnshop defined.

5.55.030    Repealed.

5.55.040    Application for license.

5.55.050    Personal property tax return.

5.55.060    Limitation on licensing.

5.55.070    Repealed.

5.55.075    Fixed place of business required.

5.55.080    Records required.

5.55.090    Compliance required.

5.55.100    Report to police.

5.55.105    Notification of lost or stolen property.

5.55.110    Records and articles to be available for inspection.

5.55.120    Seller or consignee to give true name and address.

5.55.130    Authorized rate of interest – Penalty for violation.

5.55.140    Prima facie evidence of violation.

5.55.150    Period of redemption.

5.55.160    Certain transactions prohibited.

5.55.170    Pawnshop to be closed during certain hours.

5.55.180    Violation – Misdemeanor.

5.55.190    Civil penalty.

5.55.200    Additional enforcement.

5.55.010 License required.

It is unlawful for any person, firm, or corporation to engage in the business of pawnbroker or to conduct a pawnshop without first obtaining a “pawnbroker’s license” pursuant to the provisions of this chapter. [Ord. 15-0402 § 1 (Att. A); Ord. 98-0017 §§ 1, 2 (KCC 6.56.010).]

5.55.020 Pawnbroker and pawnshop defined.

A. The term “pawnbroker,” as used in this chapter, means and includes every person who takes or receives by way of pledge, pawn, or exchange, goods, wares, merchandise, or any kind of personal property as security for the repayment of any money loaned thereon, or who loans money on deposit of personal property, or who makes a public display of any sign indicating that he has money to loan on personal property on deposit or pledge.

B. The term “pawnshop” means and includes every place at which the business of pawnbroker is being carried on. [Ord. 15-0402 § 1 (Att. A); Ord. 06-0242 § 1; Ord. 98-0017 §§ 1, 2 (KCC 6.56.020).]

5.55.030 License fee.

Repealed by Ord. 15-0402. [Ord. 02-0139 § 1; Ord. 98-0017 §§ 1, 2 (KCC 6.56.030).]

5.55.040 Application for license.

All applications for issuance or renewal of a pawnbroker’s license shall be made to and be filed with the city manager on forms furnished for such purpose. This application shall state the true name of the applicant, who shall not be less than 18 years of age, the names of all persons having a financial, proprietary, or other interest in such pawnshop, together with such other information as the city manager deems appropriate. The application shall then be referred to the city police department for investigation, report and recommendation. If, from the reports and other information available, the city manager deems the applicant and all persons having an interest in such pawnshop to be fit and proper, the city manager shall issue or renew the license. [Ord. 15-0402 § 1 (Att. A); Ord. 06-0242 § 2; Ord. 98-0017 §§ 1, 2 (KCC 6.56.040).]

5.55.050 Personal property tax return.

No renewal license shall issue to any pawnbroker until the applicant shall show that he has made a return to the King County assessor of the property in his possession or ownership and the value thereof for tax assessment purposes and has paid the tax due. [Ord. 15-0402 § 1 (Att. A); Ord. 98-0017 §§ 1, 2 (KCC 6.56.050).]

5.55.060 Limitation on licensing.

No pawnbroker’s license shall be issued which would increase the number of holders of such licenses to more than one for every 15,000 of population, according to the last preceding federal census; provided, that this population limitation shall not operate to prohibit the licensing of any pawnbroker duly licensed prior to the enactment of this chapter, if such pawnbroker is otherwise duly qualified. [Ord. 15-0402 § 1 (Att. A); Ord. 98-0017 §§ 1, 2 (KCC 6.56.060).]

5.55.070 Renewal of license, registration or permit – Late penalty.

Repealed by Ord. 15-0402. [Ord. 98-0017 §§ 1, 2 (KCC 6.56.070).]

5.55.075 Fixed place of business required.

No person shall operate as a pawnbroker unless the person maintains a fixed place of business within the City. [Ord. 15-0402 § 1 (Att. A); Ord. 06-0242 § 3.]

5.55.080 Records required.

Every pawnbroker shall maintain at the place of business a record in which shall be legibly written in the English language at the time of each transaction the following information:

A. The date of the transaction;

B. The name of the person conducting the transaction and making the entries required herein;

C. The printed name, signature, date of birth, sex, height, weight, race, street and house number, telephone number, general description of the dress, and color of hair of the person with whom the transaction was made;

D. The name and street and house number of the owner of the property bought or received in pledge;

E. The street and house number of the place from which the property bought or received in pledge was last removed;

F. A complete description of the property bought or received in pledge, including the brand name, serial number, model number or name, any initials or engraving, size, pattern, and color or stone or stones, and in the case of firearms, the caliber, barrel length, type of action, and whether it is a pistol, rifle, or shotgun;

G. The price paid or the amount loaned;

H. The number of any pawn tickets issued therefor;

I. The type and identifying number of identification used by the person with whom the transaction was made, which shall consist of a valid driver’s license or identification card issued by any state or two pieces of identification issued by a governmental agency, one of which shall be descriptive of the person identified; provided, that at all times, one piece of current government-issued picture identification is required; and

J. The nature of the transaction, a number identifying the transaction, the store identification as designated by the city police department, or the name and address of the business and the name of the person or employee conducting the transaction. [Ord. 15-0402 § 1 (Att. A); Ord. 06-0242 § 4; Ord. 98-0017 §§ 1, 2 (KCC 6.56.080).]

5.55.090 Compliance required.

It is unlawful for any pawnbroker or any clerk, agent, or employee of such pawnbroker to fail, neglect, or refuse to make any material entry in this record, as required by this chapter, or to make any false entry therein, or to obliterate, destroy, or remove from his place of business such record within five years from date of transaction. [Ord. 15-0402 § 1 (Att. A); Ord. 98-0017 §§ 1, 2 (KCC 6.56.090).]

5.55.100 Report to police.

A. Upon request, every pawnbroker shall furnish or mail within 24 hours to the city police department a full, true and correct transcript of the record of all transactions conducted on the preceding day. At the close of every business week, every pawnbroker shall furnish or mail to the city police department a full, true and correct transcript of the record of all transactions conducted during the preceding week. These transactions shall be recorded on such forms as may be provided and in such format as may be required by the chief of police. This information may be transmitted electronically, by facsimile transmission, or by modem or similar device, or by delivery of computer disk subject to the requirements of, and approval by, the chief of police.

B. It is also the duty of any pawnbroker having good cause to believe any property in his possession has been previously lost or stolen to report such fact to the city police department immediately, together with the name of the owner, if known, and the date when and name of the person from whom the same was received by such pawnbroker. [Ord. 15-0402 § 1 (Att. A); Ord. 06-0242 § 5; Ord. 98-0017 §§ 1, 2 (KCC 6.56.100).]

5.55.105 Notification of lost or stolen property.

Following notification from a law enforcement agency that an item of property has been reported as lost or stolen, the pawnbroker shall hold that property intact and safe from alteration, damage or commingling. The pawnbroker shall place an identifying tag or other suitable identification on property so held. Property held shall not be released for 120 days from the date of police notification unless released by written consent of the applicable law enforcement agency or by court order; provided, that in cases where the applicable law enforcement agency has placed a verbal hold on an item, that agency must then give written notice within 10 business days. If such written notice is not received within that period of time, then the hold order will cease. The pawnbroker shall give a 20-day written notice before the expiration of the 120-day holding period to the applicable law enforcement agency about the lost or stolen property. If notice is not given within the required 20-day period, then the hold on the property shall continue for an additional 120 days. The applicable law enforcement agency may renew the holding period for additional 120-day periods as necessary. After the receipt of notification from a pawnbroker, if an additional holding period is required, the applicable law enforcement agency shall give the pawnbroker written notice prior to the expiration of the existing hold order. A law enforcement agency shall not place on hold any item of personal property unless that agency reasonably suspects that the item of personal property is a lost or stolen item. Any hold that is placed on an item will be removed as soon as practicable after the item on hold is determined not to be lost or stolen. [Ord. 15-0402 § 1 (Att. A); Ord. 06-0242 § 6.]

5.55.110 Records and articles to be available for inspection.

All books and other records of any pawnbroker relating to purchase, pledge, exchange, order or receipt of any goods, wares, merchandise, or other articles or things of value shall at all times be open for inspection by the Kenmore police department, and all articles or things received, purchased or left in pledge with the pawnbroker shall at all times be open to a like inspection. [Ord. 15-0402 § 1 (Att. A); Ord. 98-0017 §§ 1, 2 (KCC 6.56.110).]

5.55.120 Seller or consignee to give true name and address.

Anyone who pledges, sells, or consigns any property to or with a pawnbroker shall sign the records required to be kept by such pawnbroker with his true name and shall include his correct residence address. [Ord. 15-0402 § 1 (Att. A); Ord. 98-0017 §§ 1, 2 (KCC 6.56.120).]

5.55.130 Authorized rate of interest – Penalty for violation.

All pawnbrokers are authorized to charge and receive interest and other fees in accordance with RCW 19.60.060 or any successor statute. [Ord. 15-0402 § 1 (Att. A); Ord. 06-0242 § 7; Ord. 98-0017 §§ 1, 2 (KCC 6.56.130).]

5.55.140 Prima facie evidence of violation.

The fact of loaning money upon or purchasing goods from any of the classes enumerated in KMC 5.55.160 shall be prima facie evidence of an intent on the part of such pawnbroker, his agent or employee to violate this chapter. [Ord. 15-0402 § 1 (Att. A); Ord. 98-0017 §§ 1, 2 (KCC 6.56.140).]

5.55.150 Period of redemption.

No pawnbroker shall sell any property held by him as security for a loan until both the term of the loan and a grace period of a minimum of 60 days have expired. [Ord. 15-0402 § 1 (Att. A); Ord. 06-0242 § 8; Ord. 98-0017 §§ 1, 2 (KCC 6.56.150).]

5.55.160 Certain transactions prohibited.

A. It is unlawful for any pawnbroker or the clerk or employee of a pawnbroker to receive in pledge, or purchase, any article or thing known to him to be stolen, any article or thing from any person who is under 18 years of age, intoxicated, addicted to the use of drugs, or from any person who is known to be a thief, or a receiver of stolen property, or from any person who he has reason to suspect or believe to be such.

B. It is unlawful for any pawnbroker or the clerk or employee of a pawnbroker to refuse to return property which has been identified as stolen or pawned without authorization to any person the pawnbroker or the clerk or employee of a pawnbroker knows to be the rightful owner, or to charge a fee for the return of such property to the rightful owner.

1. “Identified as stolen or pawned without authorization” shall mean any property which has been reported by the rightful owner to legitimate authority as lost or stolen and has been released by written consent of the applicable law enforcement agency or by court order.

2. “The rightful owner,” unless otherwise proven, shall be considered to be the person having possession of the property prior to the theft or removal without authorization. [Ord. 15-0402 § 1 (Att. A); Ord. 06-0242 § 9; Ord. 98-0017 §§ 1, 2 (KCC 6.56.160).]

5.55.170 Pawnshop to be closed during certain hours.

It is unlawful for any pawnbroker to conduct or carry on the business of the pawnbroker, in whole or in part, directly or indirectly, or to open or keep open his pawnshop for the transaction of any business whatsoever therein, between the hours of 8:00 p.m. and 7:00 a.m., except from December 1st to December 24th of each year, when pawnbrokers may remain open until 10:00 p.m. [Ord. 15-0402 § 1 (Att. A); Ord. 98-0017 §§ 1, 2 (KCC 6.56.170).]

5.55.180 Violation – Misdemeanor.

Any violation of the provisions of this chapter constitutes a misdemeanor. [Ord. 15-0402 § 1 (Att. A); Ord. 98-0017 §§ 1, 2 (KCC 6.56.180).]

5.55.190 Civil penalty.

In addition to or as an alternative to any other penalty provided herein or by law, any person who violates any provision of any business license ordinance shall be subject to a civil penalty in an amount not to exceed $250.00 per violation to be directly assessed by the city manager. The city manager, in a reasonable manner, may vary the amount of the penalty assessed to consider the appropriateness of the penalty to the size of the business of the violator, the gravity of the violation, the number of past and present violations committed, and the good faith of the violator in attempting to achieve compliance after notification of the violation. All civil penalties assessed will be enforced and collected in accordance with the procedure specified under this title. [Ord. 15-0402 § 1 (Att. A); Ord. 98-0017 §§ 1, 2 (KCC 6.56.190).]

5.55.200 Additional enforcement.

Notwithstanding the existence or use of any other remedy, the city manager may seek legal or equitable relief to enjoin any acts or practices which constitute or will constitute a violation of any business license ordinance or other regulations herein adopted. [Ord. 15-0402 § 1 (Att. A); Ord. 98-0017 §§ 1, 2 (KCC 6.56.200).]