Chapter 5.20
PAWNBROKERS AND SECONDHAND DEALERS
Sections:
5.20.040 Recordkeeping required.
5.20.050 Report to chief of police.
5.20.060 Inspection of records and goods required.
5.20.070 Retention of property – In pledge.
5.20.080 Retention of property – On consignment.
5.20.090 Duties upon notification that property is reported stolen.
5.20.100 License – Required when – Fee – Expiration date – Renewal.
5.20.110 Revocation of license.
5.20.120 Criminal convictions.
5.20.130 Violations deemed gross misdemeanors – Designated.
5.20.140 Violations – Penalty.
5.20.010 Definitions.
The definitions set forth in this section shall apply throughout this chapter, unless the context clearly requires otherwise.
A. “Loan period” means the period of time from the date the loan is made until the date the loan is paid off, the loan is in default, or the loan is refinanced and new loan documents are issued, including all grace or extenuation periods.
B. “Melted metals” means metals derived from metal junk or precious metals that have been reduced to a melted state from other than ore or ingots which are produced from ore that has not previously been processed.
C. “Metal junk” means any metal that has previously been milled, shaped, stamped, or forged and that is no longer useful in its original form, except precious metals.
D. “Nonmetal junk” means any nonmetal, commonly discarded item that is worn out, or has outlasted its usefulness as intended in its original form except nonmetal junk does not include an item made in a former period which has enhanced value because of its age.
E. “Pawnbroker” means every person engaged, in whole or in part, in the business of loaning money on the security of pledges, of personal property, or deposits or conditional sales of personal property, or the purchase or sale of personal property.
F. “Precious metals” means gold, silver, and platinum.
G. “Secondhand dealer” means every person engaged in whole or in part in the business of purchasing, selling, trading, consignment selling, or otherwise transferring for value, secondhand property including metal junk, melted metals, and precious metals, whether or not the person maintains a fixed place of business within the state. “Secondhand dealer” also includes persons or entities conducting business at flea markets or swap meets more than three times per year.
H. “Secondhand property” means any item of personal property offered for sale which is not new, including metals in any form, except postage stamps, coins that are legal tender, bullion in the form of fabricated hallmarked bars, used books and clothing of a resale value of $75.00 or less, except furs.
I. “Transaction” means a pledge, or the purchase of, or consignment of, or the trade of any item of personal property by a pawnbroker or a secondhand dealer from a member of the general public.
J. “License” and “endorsement,” unless specified otherwise, each mean the authorization to conduct a pawnbroker or secondhand dealer business activity in the city, as administered under this chapter, and that is issued by the city in association with and in addition to the business license issued under chapter 5.04 BMC. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
5.20.020 Legislative intent.
The city council intends to enact this chapter to provide restrictions that are supplemental to those set forth in chapter 19.60 RCW. The provisions of this chapter are intended to address circumstances unique to the city of Burlington. It is not the intent of this chapter to reduce or otherwise abrogate the requirements of any applicable state law. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
5.20.030 Exemptions.
The provisions of this chapter do not apply to transactions conducted by the following:
A. Motor vehicle dealers licensed under chapter 46.70 RCW;
B. Vehicle wreckers or hulk haulers licensed under chapter 46.79 or 46.80 RCW;
C. Persons giving an allowance for the trade-in or exchange of secondhand property on the purchase of other merchandise of the same kind of greater value; and
D. Persons in the business of buying or selling empty food and beverage containers or metal or nonmetal junk. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
5.20.040 Recordkeeping required.
A. Every pawnbroker and secondhand dealer doing business in the city shall maintain, wherever that business is conducted, a record which shall be legibly written in the English language, at the time of each transaction, containing the following:
1. The signature of the person with whom the transaction is made;
2. The date of the transaction;
3. The name of the person or employee conducting the transaction;
4. The name, date of birth, gender, height, weight, race, address, and telephone number of the person with whom the transaction is made;
5. A complete description of the property pledged, bought, or consigned, including the brand name, serial number, model number or name, any initials or engravings, size, patterns 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;
6. The price paid or the amount loaned;
7. The type and identifying number of identification used by the person with whom the transaction is 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. At all times, one piece of current government-issued picture identification will be required; and
8. The nature of the transaction, a number identifying the transaction, the store identification as designated by the applicable law enforcement agency, or the name and address of the business, the name of the person or employee of the business conducting the transaction, and the location of the property.
B. The record shall at all times during the ordinary hours of business, or at reasonable times if ordinary hours of business are not kept, be open to the inspection of any commissioned law enforcement officer of the state or any of its political subdivisions, and shall be maintained wherever that business is conducted for three years following the date of the transaction. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
5.20.050 Report to chief of police.
A. Every pawnbroker or secondhand dealer in the city of Burlington shall, before 5:00 p.m. on each working day, furnish to the chief of police, on such forms as may be provided and in such format as may be required by the chief of police, a full, true, and correct transcript of the record of all transactions conducted on the preceding working day. This information shall be transmitted to the chief of police or his designee by electronic transmission through a modem or similar device, for identifying and tracing lost, stolen, and sought-after property, subject to the requirements of and approval by the chief of police.
1. Pawnbrokers or secondhand dealers shall report their transactions electronically to the chief of police as required by BMC 5.20.040(A) commencing on a date 30 days following the effective date of the ordinance codified in this chapter.
2. The police chief may, for good cause shown, grant a pawnbroker or secondhand dealer an extension of the otherwise applicable deadline set forth in subsection (A)(1) of this section to a date not later than January 1, 2008. An extension may only be granted upon application by the pawnbroker or secondhand dealer, upon a showing that the pawnbroker or secondhand dealer is making satisfactory progress toward acquiring computer programs and equipment to make the necessary transmission, and upon agreement by the pawnbroker to pay the city a fee adopted by city council resolution reported after the otherwise applicable deadline to offset the Burlington police department’s costs in converting the data from paper format into electronic form.
The chief of police shall establish the format and requirements for the transmission of data and may restrict the scope of items that are to be electronically reported. A transaction that is reported by electronic transmission under subsection (A) of this section should not be reported on paper forms unless the chief of police so requests.
B. If, after establishing the format and requirements for the transmission of computerized reports of transactions, the chief of police alters the required format, pawnbrokers and secondhand dealers shall be given at least 30 days to comply with the new format requirements.
C. If a pawnbroker or secondhand dealer has good cause to believe that any property in his or her possession has been previously lost or stolen, the pawnbroker or secondhand dealer shall promptly report that fact to the Burlington police, together with the name of the owner, if known, and the date when and the name of the person from whom it was received. (Ord. 1874, 2019; Ord. 1799 § 7, 2014; Ord. 1621 § 1, 2007).
5.20.060 Inspection of records and goods required.
Pawnbrokers’ and secondhand dealers’ records, and all goods received, shall at all times during the ordinary hours of business be open to inspection by a commissioned law enforcement officer of the city. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
5.20.070 Retention of property – In pledge.
Property bought or received on consignment by any pawnbroker secondhand shall not be removed from the pawnbroker’s or secondhand dealer’s place of business within 30 days after the receipt of the property, except when redeemed by the owner. Property shall at all times during the ordinary hours of business be open to inspection to any commissioned law enforcement officer of the city. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
5.20.080 Retention of property – On consignment.
Property bought or received on consignment by a secondhand dealer with a permanent place of business in the city shall not be removed from that place of business, except consigned property returned to the owner, within 30 days after the receipt of the property.
Property bought or received on consignment by a secondhand dealer without a permanent place of business in the state shall be held within the city, except consigned property returned to the owner, for 30 days after receipt of the property. The property shall be available within the appropriate jurisdiction for inspection at reasonable times by any commissioned law enforcement officer of the city. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
5.20.090 Duties upon notification that property is reported stolen.
A. Following notification from a law enforcement agency that an item of property has been reported as stolen, the pawnbroker or secondhand dealer shall hold that property intact and safe from alteration, damage, or commingling, and release such property to law enforcement officers for use in the investigation of a crime. The pawnbroker or secondhand dealer shall place an identifying tag or other suitable identification upon the 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 order of a court of competent jurisdiction. 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 or secondhand dealer shall give 20 days’ notice before the expiration of the 120-day holding period to the applicable law enforcement agency about the stolen property. If notice is not given within 20 days, then the hold on the property shall continue for an additional 120 days. The applicable law enforcement agency may renew the holding period for an additional 120-day period, as necessary. After the receipt of notification from a pawnbroker or secondhand dealer, if an additional holding period is required, the applicable law enforcement agency shall give the pawnbroker or secondhand dealer 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 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 by the law enforcement agency not to be stolen or lost.
B. Property seized by a law enforcement agency from a pawnbroker or secondhand dealer and used in the investigation and/or prosecution of a crime shall be returned to the pawnbroker or secondhand dealer at such time as the property is no longer needed in the investigation and/or prosecution of the crime; provided, that such property deemed by the law enforcement agency to be stolen shall be returned to the owner of such property; provided, that before such property is returned to the owner thereof, the pawnbroker or secondhand dealer shall be notified of the superior claim of an owner and provided 10 business days’ notice to contest the release of the property in a hearing to be held by the chief law enforcement officer of the law enforcement agency. In such event, the pawnbroker or secondhand dealer hearing shall request such hearing in writing. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
5.20.100 License – Required when – Fee – Expiration date – Renewal.
Any person, firm, or corporation engaging in the business of a pawnbroker or secondhand dealer within the corporate limits of the city of Burlington shall procure, under the conditions set forth in this chapter, from the city finance director, a secondhand dealer or pawnbroker endorsement to the general business license that is issued through the Business Licensing Service under chapter 5.04 BMC. “Secondhand dealer” includes any business that buys used goods for resale or recycling. Each employee handling such transactions is required to have a background check in order to have an endorsement issued under this chapter. Such endorsement shall be obtained annually. The fee for such endorsement shall be in an amount determined by resolution of the city council, regardless of the date on which the endorsement is issued. The endorsement shall expire with the business license to which it is associated, and must be renewed prior to expiration. (Ord. 1874, 2019; Ord. 1688 § 6, 2009; Ord. 1621 § 1, 2007).
5.20.110 Revocation of license.
A. The finance director may deny an endorsement to any applicant or may suspend all licenses of any holder when such person, or any person with an interest in the application for or holder of such license:
1. Has obtained a pawnbroker’s or secondhand dealer’s endorsement license by fraud, misrepresentation, concealment, or through inadvertence or mistake;
2. Has failed to pay its pawnbroker or secondhand dealer endorsement license fee pursuant to this chapter; or
3. Has violated any conditions of this chapter, or of chapter 19.60 RCW.
A licensee shall have their license suspended for 30 days for the first violation; 90 days for the second violation; and upon the third violation in a 12-month period, the pawnbroker and/or secondhand dealer endorsement license shall be revoked.
B. Any licensee requesting an appeal of the denial, suspension or revocation of a pawnbroker or secondhand dealer endorsement license may do so in writing, specifying their objections, and filing such appeal with the finance director of the city of Burlington. The finance director will, within 14 days of receiving such notice of appeal, conduct an administrative hearing on the matter appealed. The licensee shall be given at least five days’ notice prior to the hearing, excluding weekends and holidays. The finance director is hereby authorized to adopt reasonable rules by which the appeal hearing may be conducted. All decisions of the finance director are final, and appeal from there may be taken to superior court. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
5.20.115 License – Display.1
A person holding a pawnbroker’s or secondhand dealer’s license from the city of Burlington shall prominently display the license at the place of business of the licensee. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
5.20.120 Criminal convictions.
No person, firm, or corporation shall be eligible to receive a license as provided in BMC 5.20.100 if such person, or any employee of such firm or corporation, has been convicted of any violation of RCW 9A.52.020 through 9A.52.060 (burglary); any violation of chapter 9A.56 RCW (robbery, theft, possession of, or receiving, stolen property, trafficking in stolen property, vehicle prowl); any violation of chapter 9A.60 RCW (fraud); any violation of chapter 9A.68 RCW (bribery and corrupt influence); any violation of chapter 9A.72 RCW (perjury); any violation of chapter 9A.82 RCW (criminal profiteering); any violation of chapter 9A.83 RCW (money laundering); or any violation of chapter 69.50 RCW constituting a felony (drug violations) within the preceding 10 years, whether such person was acting on his or her own behalf or as the agent of another. For the purposes of this section, offenses committed in states other than Washington that are substantially similar to those offenses identified herein shall be construed as being identical to violations of Washington law and shall render the individual committing the offense ineligible to receive a license as if the offense had been committed in Washington. The license of any pawnbroker shall be immediately revoked upon receipt of information by the city that such person, or any employee of any such firm or corporation, licensed as a pawnbroker has been convicted of any of the offenses identified in this section within the preceding 10 years, whether such person was acting in his or her own behalf or as the agent of another. In the event of a revocation of a license under the provisions of this section, there shall be no rebate of any license fee, or portion of any license fee. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
5.20.130 Violations deemed gross misdemeanors – Designated.
It is a gross misdemeanor for:
A. Any person to remove, alter, or obliterate any manufacturer’s make, model or serial number, personal identification number or identifying marks engraved or etched upon an item of personal property that is purchased, consigned, or received in pledge;
B. Any person to knowingly make, cause, or allow to be made any false entry or misstatement of any material matter, or to knowingly fail to make entry of any material matter, in any book, record, or writing required to be kept under this chapter;
C. Any pawnbroker or secondhand dealer to receive any property from any person under the age of 18 years, any person under the influence of intoxicating liquor or drugs, or any person known to the pawnbroker or secondhand dealer as having been convicted of any violation of RCW 9A.52.020 through 9A.52.060 (burglary); any violation of chapter 9A.56 RCW (robbery, theft, possession of, or receiving, stolen property, trafficking in stolen property, vehicle prowl); any violation of chapter 9A.60 RCW (fraud); any violation of chapter 9A.68 RCW (bribery and corrupt influence); and violation of chapter 9A.72 RCW (perjury); any violation of chapter 9A.82 RCW (criminal profiteering); any violation of chapter 9A.83 RCW (money laundering); or any violation of chapter 69.50 RCW (drug violations) constituting a felony within the last 10 years whether the person is acting in his or her own behalf or as the agent of another;
D. Any pawnbroker or secondhand dealer to refuse to allow any prosecuting authority or any peace office or officer of the city to inspect his or her records, or any goods received and in his or her possession during the ordinary hours of business;
E. Any person to fail to immediately notify the chief of police of the possession of any property which he or she may have good cause to believe has been lost or stolen, together with the name of the owner, if known, and the date when and the name of the person from whom the same was received by him or her;
F. Any person to engage in the business of pawnbroker or secondhand dealer without first having procured a current annual license;
G. Any pawnbroker to engage in the business of cashing or selling checks, drafts, money orders, or other commercial paper serving the same purpose unless the pawnbroker complies with the provisions of chapter 31.45 RCW; or
H. Any person to knowingly violate any other provision of this chapter or chapter 19.60 RCW. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
5.20.140 Violations – Penalty.
A. Any violation of any provision of this chapter, other than those violations set forth in BMC 5.20.130, shall be a misdemeanor, punishable by a fine not to exceed $1,000 or imprisonment not to exceed 90 days, or by both fine and imprisonment.
B. Any violation of any provision set forth in this chapter that is specifically identified as a gross misdemeanor, including those violations set forth in BMC 5.20.130, shall be punishable by a fine not to exceed $5,000 or imprisonment of less than one year, or by both fine and imprisonment. (Ord. 1874, 2019; Ord. 1621 § 1, 2007).
Code reviser’s note: Ordinance 1621 adds the provisions of this section as Section 5.20.110. The section has been editorially renumbered to prevent duplication of numbering.