Chapter 5.16
PAWNBROKERS

Sections:

5.16.010    Definitions.

5.16.020    Pawnbroker’s license required.

5.16.021    Pawnbroker employee license required.

5.16.022    License requirements.

5.16.025    License fee.

5.16.030    Employment of unlicensed persons prohibited.

5.16.050    Receiving goods from certain people unlawful.

5.16.060    Pawnbroker – Interest charges.

5.16.061    Holding of personal property and right of rescission.

5.16.080    Secondhand dealer recordkeeping requirements and penalties to apply.

5.16.010 Definitions.

A. “Chief of police” means the chief of police of the city of Lynnwood (“Lynnwood”) or his or her designee.

B. “Licensee” means any pawnbroker, pawnshop or pawnbroker employee licensed under this chapter.

C. “Pawnbroker,” as used in this chapter, 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.

D. “Pawnshop” means and includes every place at which the business of pawnbroker is being carried on. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2559 § 1, 2005; Ord. 99 § 1, 1961)

5.16.020 Pawnbroker’s license required.

A. It is unlawful for any person to engage in the business of pawnbroker, as defined in LMC 5.16.010(C), without first procuring a license to do so, to be known as a “pawnbroker’s license.” The licenses required under this chapter are separate from the licenses required under Chapter 5.06 LMC.

B. Any person having more than one pawnshop in the city shall be required to procure a separate license for each and every such place of business.

C. The license of a pawnbroker shall include a photograph and physical description of the licensee, including date of birth, sex, race, height and weight, and the name and address of the licensee’s place of business. A current photograph must be provided upon each license renewal.

D. If the license application(s), as provided for herein, are approved, the business license clerk shall issue a license(s) to the applicant upon his executing and delivering to the city a bond to be approved by the city attorney, in the amount of $1,000, conditioned that such licensee conducts such business in compliance with all of the laws of the city, state and the United States.

E. The licenses of pawnbroker’s employees, as required by LMC 5.16.021, shall be posted in a conspicuous location in the licensee’s place of business as long as the licensees are employed at the business. The licenses shall not be altered in any manner. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2699 § 12, 2007; Ord. 2656 §§ 1, 2, 2006; Ord. 2559 § 2, 2005; Ord. 1352 § 1, 1983; Ord. 818 § 13, 1975; Ord. 99 § 2, 1961)

5.16.021 Pawnbroker employee license required.

A. It is unlawful for any person to be employed by a pawnbroker or pawnshop under this chapter without first having obtained a pawnbroker employee license.

B. The license of a pawnbroker employee shall include a photograph and physical description, including date of birth, sex, race, height and weight, of the employee and the name and address of the employer’s place of business.

C. The license of a pawnbroker employee shall be posted in a conspicuous location in the licensee’s place of business as long as the licensee is employed at the business. The license shall not be altered in any manner. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2559 § 3, 2005)

5.16.022 License requirements.

Applicants seeking a pawnbroker or pawnbroker employee license under this chapter shall:

A. Be subject to an investigation by the chief of police or his/her designee who shall investigate the following:

1. Whether the applicant has any prior criminal convictions;

2. Whether any outstanding criminal violations or charges exist;

3. Whether any legitimate complaints exist regarding the applicant’s past business practices that would have any bearing or effect on the issuance of the license;

4. Whether the person is prohibited by law from engaging in this type of activity;

5. Whether the application should otherwise be disapproved based upon public safety considerations.

B. Submit to fingerprinting by the chief of police and such fingerprints shall be retained in the application of the Lynnwood police file, a copy of which may be forwarded to the Washington State Patrol, Identification Section, or other agency.

Within 30 days following receipt of the application from the licensing authority, the chief of police shall make a written recommendation on the issuance of the license to the business license clerk, who may then approve the application for such license. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2559 § 4, 2005)

5.16.025 License fee.

A. The license fee for each pawnbroker shall be fixed in the sum shown in Chapter 3.104 LMC.

B. The license fee for each pawnbroker employee shall be fixed in the sum shown in Chapter 3.104 LMC. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2656 §§ 1, 2, 2006; Ord. 2559 § 5, 2005; Ord. 818 § 14, 1975)

5.16.030 Employment of unlicensed persons prohibited.

It shall be unlawful for any pawnshop or pawnbroker to employ any person who does not have a valid pawnbroker employee license issued by Lynnwood pursuant to this chapter. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2559 § 6, 2005)

5.16.050 Receiving goods from certain people unlawful.

A. No licensee under this chapter shall receive in pledge or purchase any property from any person who is at the time of the transaction:

1. Under 18 years of age; or

2. Under the influence of alcohol; or

3. Under the influence of drugs; or

4. Attempting to pledge or sell any property which the employee knows or suspects or should suspect to be stolen; or

5. Known to the licensee as having been convicted of burglary, robbery, theft, forgery, fraud or possession of or receiving stolen property within the past 10 years, whether the person is acting in his or her own behalf or as an agent of another. The chief of police shall be authorized to compile a list of qualified persons convicted of property crimes and provide such list to licensees as a reference list of persons from whom they may not receive or purchase property.

B. Notification by the police department given to such licensee, his agent, employee or representative that person has been convicted of burglary, robbery, theft, fraud, forgery, or possession of stolen property shall constitute sufficient notice of such convictions under the provisions of this chapter, and shall be prima facie evidence that the licensee, his agent, employee or representative has due notice thereof. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2559 § 8, 2005)

5.16.060 Pawnbroker – Interest charges.

All pawnbrokers are authorized to charge and receive interest at the rate authorized by state law, from any loan on the security of personal property actually received in pledge, and every person who asks or receives a higher rate of interest or discount on any such loan is guilty of violation of this chapter. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 99 § 6, 1961)

5.16.061 Holding of personal property and right of rescission.

A. All pawnbrokers who purchase from a customer articles of personal property and goods are required to hold said personal property for a period of 30 days from the date of purchase before offering for sale or selling said personal property and goods.

B. Any person who sells personal property and goods to a pawnbroker as set forth in subsection (A) of this section shall be entitled to rescind said sale within a period of 10 days of the sale by tendering to the pawnbroker the full amount of the purchase price, plus interest charges as provided in LMC 5.16.060.

C. Violation of this section by any pawnbroker or pawnbroker employee is a misdemeanor. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2559 § 9, 2005; Ord. 736 § 1, 1974)

5.16.080 Secondhand dealer recordkeeping requirements and penalties to apply.

All individuals, corporations, partnerships, associations and all other legal entities conducting business as a pawnbroker or a pawnshop in Lynnwood shall comply and be subjected to all rules, regulations, duties of recordkeeping and penalties as set forth in Chapter 5.82 LMC that are not in conflict herein as those sections now exist or as hereafter amended. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 1352 § 3, 1983)