Chapter 6.12


6.12.010    Definitions.

6.12.020    Business registration.

6.12.030    Reportable transactions, records and electronic reporting.

6.12.040    Exemptions.

6.12.050    Customer returns.

6.12.060    Do not buy list, court orders.

6.12.070    Prohibition, registration and reporting requirements.

6.12.080    Report of lost, stolen property.

6.12.090    Minimum retention period.

6.12.100    Examination, inspection.

6.12.110    Law enforcement hold orders.

6.12.120    Hours of operation.

6.12.130    Altered identification number and marks.

6.12.140    Transactions with minors.

6.12.150    Transactions with intoxicated persons.

6.12.160    Gift cards, merchant cards, phone cards.

6.12.170    Prohibition, prior conviction.

6.12.180    Violation – Penalty.

6.12.010 Definitions.

The following abbreviations, words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

“Automated kiosk” means a self-serve interactive machine that purchases secondhand electronic devices and/or gift cards, merchant cards or phone cards.

“Consign” or “consignment” means the act of transferring goods, but not title thereto, into the care, custody or control of an agent for the purpose of sale to a third party.

“Dealer” means the junk dealer, pawnshop broker and secondhand dealer and their respective employees, agents and representatives.

“Electronic reporting system” means the electronic media system approved by the sheriff, such as Leads Online for law enforcement, which shall be used by all dealers to check the no-buy list and report transactions electronically to the county and ensure uniformity in reporting.

“Gem” means any precious or semiprecious stone which is cut and polished.

“Jewelry” means gold, platinum, silver, gold-filled or plated ware, diamonds and other precious or semiprecious gems (mounted or unmounted), cultured pearls, watches, and other goods commonly classified as jewelry and commonly offered for sale in jewelry stores.

“Junk dealer” means any person engaged in the business of purchasing, obtaining or accepting property from persons other than the original manufacturer or authorized distributor, when the property is purchased or obtained for sale, credit, trade or exchange and the material obtained or purchased is to be put to a use inconsistent with its original purpose. “Put to a use inconsistent with its original purpose” means to dismantle, scrap, melt down, press, transform, or otherwise disfigure a material for resale in the altered form, or for use by the purchaser in the altered form.

“Pawnbroker” is any person who is engaged in the business, in whole or part, of advancing money on the security of pledged goods or is engaged in the business of purchasing property on the condition that it may be redeemed or repurchased by the seller for a fixed or variable price within a fixed or variable period of time, whether such business is the principal or sole business engaged in, managed or conducted, or whether it is merely incidental to it, or conducted in conjunction with a branch or department of some other business or businesses. A person shall be deemed a pawnbroker whether the transaction takes the form of a loan by the pawnbroker secured by the pledged property, or a sale of the property to the pawnbroker with the right of repurchase or redemption by the person selling the property to the pawnbroker within a stated period of time.

“Person” means any individual, partnership, company, organization, association, joint venture, partnership, business trust, corporation, employee, agent, or any other legal entity, or representative thereof.

“Precious metals” means gold, silver, or platinum or any alloy containing gold, silver, or platinum.

“Property” means any item, goods, wares, article, material, coins, gems, jewelry, precious metals, or other tangible or intangible personal property of any kind or description whatsoever and includes property received by a dealer through an automated kiosk.

“Secondhand dealer” means any person engaged in conducting, managing, or carrying on an ongoing business of buying, selling, trading, exchanging, consigning or otherwise dealing in secondhand property, whether or not these transactions are the principal or sole business conducted or are a part thereof or incidental to it. “Secondhand dealer” also includes persons or entities operating an automated kiosk.

“Secondhand property” means any property, that has previously been owned by someone other than the original manufacturer or authorized dealer, offered for pledge, sale, credit, trade, or exchange.

“Sheriff” means the sheriff of the Kitsap County sheriff’s office or his/her designee.

“Transaction” means a deposit, pledge, sale, purchase, consignment, credit, exchange or trade of any property by a dealer with any member of the public.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.020 Business registration.

(1)    Every person doing business as a dealer in Kitsap County shall register the business with the Kitsap County sheriff’s office and pay the registration fee, which is set by resolution of the board of county commissioners. The registration must be made on the form provided by the Kitsap County sheriff’s office and shall require the following:

a.    Full legal name of business owner(s) and business manager(s).

b.    Legal form of business.

c.    Name of business.

d.    Business address and phone number.

e.    Mailing address for receipt of notices.

f.    Photographs of the business owners and business managers.

g.    Any other information deemed appropriate by the Kitsap County sheriff’s office.

(2)    All registrations shall be submitted to the Kitsap County sheriff’s office. Any associated administrative fees shall be set by resolution of the board of county commissioners.

(3)    A separate registration is required for each physical location in the county where such business is conducted.

(4)    Any change in the information requested on the registration form shall be reported to the Kitsap County sheriff’s office within fourteen days of the change using the registration form.

(5)    Nothing herein, including the acceptance of the registration, shall be deemed to legalize any act which otherwise may be in violation of the law or exempt any person from any penalty for such violation.

(6)    The registration required under this section is in addition to any other license or permit required to engage in business by the county, city or the state.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.030 Reportable transactions, records and electronic reporting.

(1)    Every business regulated by this chapter shall maintain a permanent electronic record of all transactions using an electronic reporting system suitable to report transactions electronically to the county, as approved by the sheriff.

(2)    An electronic record shall be prepared for every transaction, at the time of the transaction, and contain a full, true, complete and legible report in the English language of all property received on deposit, pledge, pawn, consignment, trade, exchange, or by purchase.

(3)    All reports made pursuant to this section shall be transmitted through the electronic reporting system to the sheriff, in a manner and format approved and designated by the sheriff, no later than twenty-four hours after completion of the transaction.

(4)    The dealer shall complete all the entries on the electronic report, except the signature of the person from whom the property is received, and shall enter “None” or “N/A” (not applicable) as appropriate. The reports shall provide all of the following information:

a.    Description of the person from whom the property was received:

1.    Full name.

2.    Date of birth.

3.    Street address and house number.

4.    Phone number.

5.    Height, weight, race (if known), eye color, hair color, sex.

6.    Digital image of the person’s valid motor vehicle operator’s license, a valid state identification card, a valid armed forces identification card, a valid passport with photograph or any other valid government issued identification containing a photograph. The type of identification used and all identifying numbers thereon shall be recorded.

7.    The right index fingerprint of the pledgor or seller shall be placed on the hard copy of the transaction report. If the fingerprint is electronically generated it must meet the National Institute of Standards and Technology standards (five hundred ppi). In the absence of the right index finger, the left index finger should be used with a notation on the report indicating that the left index finger was used.

8.    A declaration of ownership for each transaction and item and a statement verifying that the property is not stolen signed by the borrower or seller.

b.    Description of the all property pledged, bought, consigned, traded, exchanged or purchased, which includes the following:

1.    Date and time the property was received.

2.    Type of property.

3.    Make, brand, model, and serial number(s) for all items.

4.    Detailed description of every item, including all initials, engravings, letters, and marks on the item, and size, pattern, and color.

5.    For firearms identify caliber, barrel length, type of action, and whether pistol, rifle, or shotgun.

6.    The amount paid, loaned, or pledged for each item, group of identical items, or set of items.

7.    Two digital images of every item, eight megapixels or greater in quality. For items with serial numbers, one of the digital images shall contain a clear image of the serial number.

8.    Pawn ticket number.

c.    Description of the dealer receiving the property shall include the following:

1.    The nature of the transaction.

2.    The name of the person entering the data into the electronic system and conducting the verification.

3.    The name of the person who conducted the transaction and if different, the name of the person receiving the property on behalf of the dealer.

4.    The business identification number.

5.    Address of the place where the transaction occurred.

6.    The location of the property.

(5)    All digital images required in this chapter shall be clear, accurate, eight megapixels or greater in quality and shall be uploaded into the computer media system by the close of business on the day of the transaction for inspection by law enforcement.

(6)    Only one report need be prepared for items without serial numbers, if identical or consisting of a set and received in the same transaction. The report shall contain the total number of identical items received and total purchase price or pledge amount for the items.

(7)    No reporting is required for the renewal of any loan that was previously reported.

(8)    It is presumptive evidence of intent to violate this section if the property purchased is not listed or fails to correspond with the description contained in the list.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.040 Exemptions.

The provisions of this chapter do not apply to:

(1)    Buying, selling, trading, exchanging, consigning, or otherwise dealing in recycling metal cans, paper, cardboard, plastics, or glass.

(2)    Buying, selling, trading, exchanging, consigning, or otherwise dealing in used books, tires (excluding rims), clothes, postage stamps, trading cards, comic books, furniture (other than appliances) and works of art consigned by the original artist.

(3)    Investment or securities brokerage houses or financial institutions as defined by law.

(4)    Buying, selling, trading, exchanging, consigning or otherwise dealing in DVDs, CDs, videos, vinyl records, tapes, computer and video games.

(5)    Any purchase in the open market from any person doing business and having an established place of business in the county, but such goods must be accompanied by a bill of sale or other evidence of purchase.

(6)    Persons conducting not more than three garage and/or yard sales per year, with each such sale not lasting more than three consecutive days.

(7)    Persons conducting activities of the type otherwise regulated by this chapter when such activities are conducted by or the purchase amounts are paid solely to a nonprofit organization, pursuant to Section 501(c) of the Internal Revenue Code, including churches and religious organizations.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.050 Customer returns.

Returns of any property sold by a dealer and returned by the purchaser to the same dealer are exempt from the requirements of this chapter; provided, that all of the following apply:

(1)    The property returned is the actual merchandise purchased from the dealer by the purchaser;

(2)    The dealer complied with the provisions of this chapter when the dealer originally acquired the property; and

(3)    The dealer maintains a copy of the receipt documenting the return for a one-year period from the date of return and makes the receipt available for inspection by law enforcement.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.060 Do not buy list, court orders.

(1)    The sheriff is authorized to create or adopt and regularly maintain a do not buy list and to establish procedures for access to and utilization of the do not buy list by dealers; except that no fee may be charged to dealers for access and use of the do not buy list.

(2)    Prior to completing any transaction, the dealer conducting the transaction shall confirm that the person from whom property is being received is not identified on the do not buy list.

(3)    It is unlawful for any dealer to enter into a transaction with any person identified on the do not buy list, or any person acting on behalf of a person identified on the do not buy list.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.070 Prohibition, registration and reporting requirements.

(1)    It is unlawful for any person to provide false information on reports or records required by this chapter or to provide false information on any registration form submitted to the county.

(2)    It is unlawful for any person to structure a transaction or series of transactions with the intent to avoid the reporting requirements of this section.

(3)    It is unlawful for any person to fail to make or keep any record or report required by this chapter.

(4)    It is unlawful for any person to delete or destroy any report or record required by this chapter.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.080 Report of lost, stolen property.

Every dealer having reason to believe that any personal property in his/her possession is lost, stolen or was used to perpetrate a crime shall immediately report this information to the sheriff, together with the name of the property owner, if known, the date, the name of the person from whom the property was received and all other recorded information.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.090 Minimum retention period.

No dealer shall sell, exchange, transfer, or otherwise dispose of any property within thirty days after complying with the electronic reporting requirements of this chapter. Any property held by the dealer under this section shall not be altered or transformed in any way but shall be held in the same condition in which it was received by the dealer.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.100 Examination, inspection.

The business premises of dealers including property purchased or acquired by dealers and records and reports required to be prepared and maintained by this chapter shall be open for immediate inspection during regular business hours to representatives of the Kitsap County sheriff’s office or other law enforcement agency having jurisdiction over the business premises. The property purchased by a dealer using an automated kiosk must be made promptly available for inspection by law enforcement within a reasonable time. The cost of transporting the property to law enforcement for inspection shall be paid by the dealer.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.110 Law enforcement hold orders.

(1)    No dealer shall dispose of any property which is the subject of this chapter when a representative of a law enforcement agency has provided oral or written notice that there are reasonable grounds to believe that the property is the fruit or evidence of a crime or was used as a weapon or otherwise in the perpetration of a crime.

(2)    Upon notice of a law enforcement hold, the dealer shall (a) tag and retain the property, (b) preserve the property in the condition in which it was received, (c) keep the property in the place of business where it was originally received, and (d) maintain the property in a safe manner, free from alteration, damage, or commingling with other property.

(3)    The dealer shall hold the property for ninety days for written or electronic law enforcement hold requests and thirty days for verbal requests. This period may be extended for additional ninety-day periods upon a written request from law enforcement.

(4)    The dealer shall not release the property prior to the expiration of the law enforcement hold without the prior written consent from the law enforcement agency placing the hold or a valid court order from a court of competent jurisdiction.

(5)    Property on hold shall cease to accrue interest as of the first date the dealer receives notice of the law enforcement request to hold or seize the property.

(6)    A dealer shall surrender such property to a representative of a law enforcement agency on demand. The law enforcement representative seizing property from the dealer shall provide the dealer a seized property receipt identifying the property seized.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.120 Hours of operation.

It is unlawful for any dealer to conduct or carry on the business of a dealer, in whole or in part, directly or indirectly, or to open, or keep open, or transact any business whatsoever between the hours of 7:00 p.m. and 9:00 a.m.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.130 Altered identification number and marks.

It is unlawful for any person to enter into a transaction or purchase of property subject to restrictions of this chapter, if the manufacturer serial number, manufacturer identification number, or other identifying marks engraved or etched upon the property have been removed, altered or otherwise made illegible by any means.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.140 Transactions with minors.

(1)    No person, regardless of whether he/she is required to register under the provisions of this chapter, shall buy, accept on consignment, trade, or otherwise accept property from any person under the age of eighteen years, unless the minor is accompanied by a parent or legal guardian or produces a notarized letter, signed by the minor’s parent or guardian, granting permission to the minor to transfer an interest in the property.

(2)    It shall not be a defense to an alleged violation of this section that the person reasonably believed the minor to be eighteen years or older unless the minor produced identification as specified in Section 6.12.030 which identifies the minor as eighteen years of age or older.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.150 Transactions with intoxicated persons.

No dealer shall purchase, acquire, or accept property from persons impaired, or appearing to be impaired, by alcohol and/or drugs.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.160 Gift cards, merchant cards, phone cards.

No dealer shall purchase, acquire, or accept more than one gift card, merchant card, or activated phone card in exchange for cash or other thing of value from any person more frequently than once every thirty days.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.170 Prohibition, prior conviction.

No dealer shall purchase, acquire, or accept property from any person known to the dealer as having been convicted of burglary, robbery, theft, or the possession of or receiving of stolen property within the past ten years, whether the person is acting on his/her own behalf or as the agent of another.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)

6.12.180 Violation – Penalty.

Any violation of any provision of this chapter is a misdemeanor subject to any and all criminal penalties and provisions provided in Chapter 1.12. Each violation is a separate and distinct offense and, in the case of a continuing violation, each day the violation continues shall constitute a separate offense, for which a separate penalty may be assessed.

(Ord. 564 (2018) § 1 (Att. 1) (part), 2018)