Chapter 7.36
PAWNBROKERS AND SECONDHAND DEALERS*

Sections:

7.36.010    Licensing—Necessity declared.

7.36.020    Definitions.

7.36.030    License required—Application.

7.36.040    License—Expiration—Revocation—Renewal.

7.36.050    License—Fees.

7.36.060    Records required—Contents.

7.36.070    Inspection of records and goods.

7.36.080    Keeping property—Time limit.

7.36.090    Rates of interest permitted.

7.36.100    Record of transactions upon demand.

7.36.120    Acts deemed misdemeanor.

*    For the statutory provisions regarding the regulation of pawnbrokers and secondhand dealers, see RCW Chapter 19.60.

7.36.010 Licensing—Necessity declared.

It is hereby declared necessary under the exercise of the police power and the taxing power of the city to license, tax and regulate certain businesses as hereinafter provided. The purpose of this chapter is to set forth rules for the licensing, regulation and inspection of pawnbrokers, coin dealers, and secondhand dealers. (Ord. 4009 § 1, 2005: Ord. 3180 § 2, 1989: Ord. 719 § 1, 1957)

7.36.020 Definitions.

Whenever used in this chapter, terms defined in this section shall have the meanings herein specified unless the context clearly indicates otherwise:

(a)    “Coin dealer” means every person, firm or corporation engaged in whole or in part in the business of buying or selling coins or stamped metal shall be deemed to be a coin dealer. The coins may be legal tender or otherwise, and may be made of precious metals, gold, silver or platinum.

(b)    Commencing to Carry On or Conduct Business or To Engage in Business. Any person, firm or corporation coming under this chapter shall be deemed to commence to carry on or conduct such business or to engage in such business in the city, subject to the license fees herein, if any transactions in connection with such businesses are actually conducted within the city regardless of whether the person, firm or corporation is carrying on such business as a resident or nonresident of the city. This chapter applies to fixed places of business within the city and also to itinerants not having a fixed place of business within the city, and also to a person, firm or corporation engaging in such business temporarily or to one continuing to engage in such business throughout a given calendar year within the corporate limits of the city.

(c)    Pawnbroker. Every person, firm or corporation engaged in whole or in part in the business of loaning money on the security of pledges, deposits or conditional sales of personal property, shall be deemed a pawnbroker.

(d)    “Pawnshop” means and includes every place at which the business of pawnbrokers is being carried on.

(e)    “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, precious metals, whether or not the person maintains a fixed place of business within the city; provided, that “secondhand dealer” shall not apply to thrift stores and similar businesses to the extent such a business acquires its secondhand merchandise from charitable or religious nonprofit organizations or obtains its secondhand merchandise by way of direct donation.

(f)    “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 seventy-five dollars or less, except furs.

(g)    “Transaction” means a pledge, purchase, or consignment by a pawnbroker or a secondhand dealer from a member of the general public. (Ord. 4009 § 2, 2005: Ord. 3180 § 4, 1989)

7.36.030 License required—Application.

Every person, firm or corporation before commencing to carry on, open, conduct or operate a pawnbroker, secondhand dealer or coin dealer business shall obtain a license to do so. The licenses and related fees required by this chapter are in addition to a business license that may be required under Chapter 7.02. The issuance of such a license shall be governed by Sections 7.20.040 and 7.20.080. (Ord. 4658 § 21, 2018: Ord. 4009 § 3, 2005: Ord. 2878 § 3, 1985)

7.36.040 License—Expiration—Revocation—Renewal.

All licenses issued hereunder shall expire on the thirty-first day of December of the year in which the same shall have been issued. All licenses are subject to revocation for cause or for any violation of laws of the state of Washington or ordinances of the city and upon the revocation any unearned portion thereof shall be forfeited to the city. All renewals shall be subject to approval by the city council. (Ord. 719 § 3, 1957)

7.36.050 License—Fees.

Every pawnbroker, secondhand dealer or coin dealer, before commencing to carry on or conduct such a business within the corporate limits of the city, shall obtain a license for the operation of said business from the director of finance and administration and pay a license fee of one hundred dollars for one year. There shall be no prorating of the license fee. The license shall not be assignable. (Ord. 4416 § 47, 2013: Ord. 3573 § 58, 1997: Ord. 3180 § 6, 1989)

7.36.060 Records required—Contents.

It shall be the duty of every pawnbroker, secondhand dealer and coin dealer doing business in the city to maintain at his, her or its place of business a book or other permanent record in which shall be legibly written in the English language, at the time of each loan, purchase or sale, a record thereof containing the following:

(a)    The date of the transaction;

(b)    The name of the person or employee conducting the same;

(c)    The name, age, street and house number, and a general description of the dress, complexion, color of hair, and facial appearance of the person with whom the transaction is had;

(d)    The name 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 detailed description of the property bought or received in pledge or consignment. This will include any brand names, serial numbers, model numbers, pattern or type, engravings, size, color or markings likely to help in identifying the property. In the case of watches, the description shall contain the name of the maker and the number of both the works and the case, and in the case of jewelry, shall contain a description of all letters and marks inscribed thereon, and include the type of metal employed, and the weight and size of the piece of jewelry. If, however, the article bought or received is furniture, or the contents of any house or room actually inspected on premises, a general record of the transaction shall be sufficient. In the case of firearms, the caliber, barrel length, type of action, and whether it is a pistol, rifle, or shotgun shall be recorded;

(g)    The price paid or the amount loaned;

(h)    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. No transaction may be conducted without at least one picture identification; and

(i)    The number of any pawn ticket issued therefor. (Ord. 4009 § 4, 2005: Ord. 3180 § 7, 1989; Ord. 719 § 6, 1957)

7.36.070 Inspection of records and goods.

Pawnbrokers’ and junk dealers’ records and all goods received shall at all times during the ordinary hours of business be open to the inspection of the prosecuting attorney or of any peace officer. Any police officer may seize any item of personal property taken by a pawnbroker, coin dealer or secondhand dealer, based upon suspicion that the item is stolen. In the event of such a seizure, the pawnbroker or dealer shall be entitled to a written receipt for the item from the police department. (Ord. 3180 § 8, 1989: Ord. 719 § 7, 1957)

7.36.080 Keeping property—Time limit.

No property bought or received in pledge by any pawnbroker shall be removed from his or her place of business before fifteen days have elapsed since the receipt thereof was reported to the chief of police. A police officer may place a hold of up to fifteen additional days upon the property if the item is potential evidence. The police officer shall make an entry upon the permanent record required by this chapter indicating how long the property is to be held. The pawnbroker shall then:

(1)    Tag or specifically identify the item;

(2)    Hold it in place on the business premises of the pawnbroker, to which the police officer shall have access at any time during regular business hours;

(3)    Keep the item safe from alteration, loss, damage or commingling with other goods. No pawnbroker shall dispose of any item subject to a police hold in any manner. The items shall be surrendered to the chief of police upon request, or in compliance with a subpoena signed by a prosecuting attorney. (Ord. 4009 § 5, 2005: Ord. 3180 § 9, 1989: Ord. 719 § 8, 1957)

7.36.090 Rates of interest permitted.

It is unlawful for any person to charge or receive interest at a rate in excess of that authorized in RCW Chapter 19.60, for money loaned on the security of personal property actually received in pledge. (Ord. 3180 § 11, 1989)

7.36.100 Record of transactions upon demand.

It shall be the duty of every pawnbroker, coin dealer, or secondhand dealer, by regular or electronic mail, by the end of each business day, to report to the chief of police on such forms as he designates, a true, correct, and complete transcript of the record of all transactions had during the preceding day. It shall also be the duty of any pawnbroker, secondhand dealer or coin dealer having good cause to believe any property in his or her possession has been previously lost or stolen, to report such fact to the chief of police, together with the name of the owner, if known, the date of the transaction, and the name and description of the person from whom the property was received by such pawnbroker, secondhand dealer or coin dealer. Transient dealers shall also report to the chief of police or designee daily. (Ord. 4009 § 6, 2005: Ord. 3180 § 13, 1989)

7.36.120 Acts deemed misdemeanor.

Every pawnbroker, secondhand dealer or coin dealer and every clerk, agent or employee of a pawnbroker, secondhand dealer or coin dealer is guilty of a misdemeanor when he or she:

(1)    Fails to make an entry of any material matter in his or her records; or

(2)    Makes any false entry therein; or

(3)    Falsifies, obliterates, destroys or removes from his or her place of business any book or record; or

(4)    Refuses to allow the prosecuting attorney or any peace officer to inspect his or her records, or any goods in his possession, during the ordinary hours of business; or

(5)    Reports any material matter falsely to the chief of police; or

(6)    Having forms provided therefor, fails before the end of each business day to furnish the chief of police with a full, true and correct transcript of the record of all transactions had on the previous day, it being the intent of this section that Saturday’s business may be reported on Monday; or

(7)    Fails to report forthwith to the chief of police 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; or

(8)    Removes or allows to be removed from his or her place of business, except upon redemption by the owner thereof, any property received before fifteen days have elapsed since the receipt thereof was reported to the chief of police; or

(9)    Receives any property from any person under the age of eighteen years, any habitual user of narcotic drugs, any habitual criminal, any person in an intoxicated condition, any known thief or receiver of stolen property, or any known associate of such thief or receiver of stolen property, whether such person be acting in his or her own behalf or as the agent of another. (Ord. 4574 § 1, 2017: Ord. 4009 § 7, 2005: Ord. 719 § 12, 1957)