Chapter 5.82
SECONDHAND DEALERS

Sections:

5.82.010    Definitions.

5.82.020    License requirements – Fees.

5.82.022    Employment of unlicensed persons prohibited.

5.82.025    Secondhand dealer employee’s license required.

5.82.030    License – Application – Investigation and issuance conditions.

5.82.040    License – Change location of business.

5.82.050    Recordkeeping – Information required – Dealer responsibility.

5.82.060    Recordkeeping – Inspection authorized when.

5.82.070    Transcript of transactions – False reports.

5.82.080    Holding period for certain items – Exchanges with certain persons prohibited.

5.82.084    Hours and location of operations.

5.82.085    Separation of property on “police hold.”

5.82.090    Violation deemed misdemeanor – Penalty.

5.82.100    Obligation to supply true and current information.

5.82.010 Definitions.

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

B. “Licensee” means any secondhand dealer or secondhand dealer employee licensed under this chapter.

C. “Secondhand dealer” means any person, firm, corporation or partnership that within the city of Lynnwood (“Lynnwood”) as a business engages in the purchase, sale, trade, barter, exchange or receipt of consignment sale, or otherwise transferring for value any of the following secondhand goods or items:

1. Jewelry;

2. Precious stones or gems;

3. Precious metals, including coins and/or melted metals;

4. Televisions, phonographs, stereos, radios, hi-fi sets, and other video, recording, or receiving equipment and/or consoles and photographic equipment;

5. Any firearms as defined in LMC 10.52.050;

6. All serial numbered items; and

7. Computers, computer components, keyboards, printers, compact disc players, compact discs, and video arcade game cartridges.

Provided, however, that: (A) a duly franchised appliance, furniture, auto parts and accessory dealer, service stations, auctions, wrecking yards and junk dealers, and any jewelry store dealing primarily in firsthand goods shall be exempted from the provisions of this chapter as long as such business holds a valid and subsisting license for such designated activity in compliance with Lynnwood; and (B) activities carried on by charitable, nonprofit, religious, benevolent, or fraternal associations, organizations or corporations shall be exempted from the provisions of this chapter. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2560 § 1, 2005; Ord. 1982 § 1, 1993; Ord. 1353 § 1, 1983; Ord. 1049 § 1, 1979; Ord. 975 § 1, 1978)

5.82.020 License requirements – Fees.

A. It is unlawful for any person to engage in the business of secondhand dealer, as defined in LMC 5.82.010, without first procuring a license to do so, to be known as a secondhand dealer’s license. The fee for such secondhand dealer’s license shall be fixed in the sum shown in Chapter 3.104 LMC. Any specific licenses required under this chapter are separate from the business license required under 5.06 LMC.

B. Any person having more than one place of business where secondhand dealer goods are bought, sold, traded, consigned, bartered or exchanged shall be required to procure a separate license for each and every such place of business.

C. The license of a secondhand dealer shall include a photograph and physical description, including date of birth, sex, race, height and weight, of the licensee 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 director or director’s designee shall issue a license(s) to the applicant upon his/her 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 the laws of the city, state and the United States.

E. The license of a secondhand dealer 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. 2699 § 17, 2007; Ord. 2656 §§ 1, 2, 2006; Ord. 2560 § 2, 2005; Ord. 975 § 2, 1978)

5.82.022 Employment of unlicensed persons prohibited.

It shall be unlawful for any secondhand dealer licensee to employ any person who does not have a valid secondhand dealer employee license issued by Lynnwood pursuant to this chapter. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2560 § 3, 2005)

5.82.025 Secondhand dealer employee’s license required.

A. It is unlawful for any person to be employed by a secondhand dealer under this chapter without first having obtained a secondhand dealer employee license. Employees not involved in the receipt of property are exempt from the secondhand dealer employee license requirements of this section.

B. The license of a secondhand dealer 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 secondhand dealer 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.

D. It is unlawful for any person to engage in the business of secondhand dealer employee, as defined in this section, without first procuring a license to do so, to be known as a secondhand dealer employee license. The fee for such secondhand dealer employee’s license 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. 2560 § 4, 2005)

5.82.030 License – Application – Investigation and issuance conditions.

Applicants seeking a license as a secondhand dealer or secondhand dealer employee under this chapter shall:

A. Be subject to an investigation by the Lynnwood police department 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; and

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

B. Submit to fingerprinting by the police department and such fingerprints shall be retained in the Lynnwood police department application 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 director, who may then approve the application for such license. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2560 § 5, 2005; Ord. 975 § 3, 1978)

5.82.040 License – Change location of business.

A secondhand dealer’s license shall not be transferable from one person to another, but such licensee may, upon written application to the business license clerk, have such license transferred to a new location in the city. Such application shall likewise be referred to the police department for recommendation and approval and the change of address shall thereupon be noted on the license, together with the date of such change. In case of sale of such business, application must be made by the proposed purchaser for such license as provided for in LMC 5.82.030. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 975 § 4, 1978)

5.82.050 Recordkeeping – Information required – Dealer responsibility.

A. It shall be the duty of every secondhand dealer to maintain, at his place of business, a legible record written in the English language, at the time of such exchange, purchase or sale, pawn or pledge, barter or consignment, a record thereof containing the following, among others:

1. The date of the transaction;

2. The name of the person or employee conducting the same;

3. The name, date of birth, correct current address and telephone number and the general description of the person with whom the transaction is made. The description shall include the sex, race, height and weight of such person;

4. The name and street and house number of the owner of the property bought or exchanged;

5. The description of the property bought, pawned or pledged, exchanged or traded, or consigned, including all serial numbers and identifying marks, which, in the case of watches, shall contain the name of the maker and number of both the works and the case; and in the case of jewelry, shall contain the description of the size, color, style, manufacturer’s name, type, size and number of stones, and of all letters and marks inscribed thereon; and in the case of audio or video recordings, the title of every item shall be included in the description;

6. The price paid, or the amount loaned for each item purchased or exchanged;

7. The names, addresses, and telephone numbers of all persons witnessing the transaction;

8. The type and identifying number of identification used by the person with whom the transaction was made, which shall consist of one of the forms of identification listed in subsection (C)(2) of this section;

9. The number of any pawn ticket issued;

10. The signature of the person selling or pledging the property; and

11. 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, and the name of the person or employee conducting the transaction, and the location of the property.

B. It is unlawful for any secondhand dealer, his agent, employee or representative of such secondhand dealer to fail, neglect, or refuse to make entry of any material matter 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 any such record.

C. Any person who purchases, sells, trades, barters, exchanges, pawns or pledges, or consigns for sale, or otherwise transfers for value, any property set forth in LMC 5.82.010 to or with a secondhand dealer shall:

1. Sign the record required to be kept by such dealer with the person’s true name and shall include the person’s correct, current address;

2. Produce identification of the person, which shall include one of the following:

a. Driver’s license or identification card of any state or province of Canada, or “identicard” issued by the Washington State Department of Licensing pursuant to RCW 46.20.117;

b. United States active military identification;

c. Passport; or

d. Merchant Marine identification card issued by the United States Coast Guard;

3. Give a thumbprint on forms acceptable to the Lynnwood police department.

D. It shall be the duty of every secondhand dealer, agent, employee, or representative to require identification as set forth in subsection (C) of this section and to verify the correctness and legibility of the signature of the person involved in comparing the same to the required identification, and further, to obtain a thumbprint on forms acceptable to the Lynnwood police department.

E. Licensees who accept property in pawn, purchase, trade, or consignment in the course of business shall submit the records of all such transactions created pursuant to subsection (A) of this section to the Lynnwood police department within three business days.

1. The categories of property shall be:

a. Guns;

b. Tools;

c. Jewelry;

d. Office equipment (including cell phones, pagers, etc.);

e. Musical instruments;

f. Stereo equipment;

g. Televisions and video recorders or playback devices;

h. Cameras, including video cameras;

i. Electronic games;

j. Audio recordings;

k. Computer equipment;

l. Sports equipment;

m. Precious stones or gems;

n. Coins;

o. Scrap metal;

p. Video media (tapes, DVDs, etc.);

q. Motor vehicles;

r. Clothing; and

s. Miscellaneous.

F. It shall be the duty of every licensee to personally complete the information on the transaction form and attempt to verify its accuracy. The licensee shall not allow the person with whom the transaction is made to complete the form, except so that they may affix their thumbprint, and sign their name.

1. Every licensee shall make a transaction record of all property accepted regardless of whether a serial number can be found on it. When no serial number is found, the licensee must include a detailed description of the property on the transaction form. If the serial number of property brought in has obviously been altered or removed, the licensee shall obtain all the identifying information possible about the property and the person in possession of it, to include information on the vehicle they arrived in, if applicable, and shall immediately notify the Lynnwood police department. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2560 § 6, 2005; Ord. 1982 § 2, 1993; Ord. 975 § 5, 1978)

5.82.060 Recordkeeping – Inspection authorized when.

All books, writing and other records of any secondhand dealer pertaining to the purchase, sale, exchange, barter, consignment, pawn or pledge or receipt of any goods, wares, merchandise or other articles or things of value shall at all reasonable times be open for inspection by the chief of police, which inspection shall include all storage areas and all articles or things received, purchased or exchanged and stored with said secondhand dealer. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2560 § 7, 2005; Ord. 975 § 8, 1978)

5.82.070 Transcript of transactions – False reports.

A. It shall be the duty of every secondhand dealer to report to the chief of police or designee prior to 12:00 noon of every third day unless such day is a Sunday or legal holiday, then the first business day thereafter, on forms approved by the city, a full, true and correct transcript of the record of all transactions had during the preceding three days. This information shall also be transmitted no less than once per week electronically to an online database approved by the chief of police. It shall be further the duty of such secondhand dealer, having good cause to believe that any property in his possession has previously been lost or stolen, to promptly report such facts, together with all pertinent evidence, to the Lynnwood police department, together with the name of the previous owner, if known, and the date and name of the person from whom the same was received by such secondhand dealer.

B. Every secondhand dealer or his agent, employee or representative who fails, neglects or refuses to make such report or who falsely reports any material to the Lynnwood police department shall be guilty of a violation of this chapter. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2560 § 8, 2005; Ord. 1353 § 2, 1983; Ord. 975 § 8, 1978)

5.82.080 Holding period for certain items – Exchanges with certain persons prohibited.

A. It is unlawful for a secondhand dealer, his agent, employee or representative to remove any goods, articles or things purchased by him or left with him from his store or place of business until the expiration of 30 days after the same was purchased or received unless said articles or things have, within said time period, been inspected and approved for release by the Lynnwood police department.

B. 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. From any habitual drunkard or from any person addicted to the use of a narcotic drug, or from any person who is known to be a thief or receiver of stolen goods, or from any person who he has reason to suspect or believe to be such; or

6. Known to the licensee as having been convicted of burglary, robbery, theft, fraud, forgery 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 provide licensees a list of convicted felons from whom they may not receive or purchase property.

Notification by the Lynnwood police department given to such licensee, his agent, employee or representative that a person has been convicted of burglary, robbery, theft, fraud, forgery, or possession of stolen property shall constitute sufficient notice of such convictions under the provision 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. 2560 § 9, 2005; Ord. 1353 § 3, 1983; Ord. 975 § 6, 1978)

5.82.084 Hours and location of operations.

It shall be unlawful for any secondhand dealer or employee licensed under this chapter to transact any business between the hours of 9:00 p.m. and 6:00 a.m. unless special written permission is given by the chief of police. All property sold or taken in pawn, purchase, trade, or consignment by a licensee shall be done on the business premises and shall be subject to all applicable transaction restrictions. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2560 § 10, 2005)

5.82.085 Separation of property on “police hold.”

Every licensee shall set aside an area on his premises which allows for a clear separation of property under “police hold.” It shall be unlawful for any licensee to place or to knowingly allow property which has been subjected to a written or oral police hold to be placed among non-held property. Upon notification by any law enforcement officer that an item of property taken in pawn, purchase, trade, or consignment is suspected of being stolen, the licensee shall immediately, upon the officer’s request, surrender the described piece of property to the law enforcement officer. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2560 § 11, 2005)

5.82.090 Violation deemed misdemeanor – Penalty.

A. Any firm, person or corporation violating by omission or commission any provisions of this chapter shall, upon conviction, be guilty of a misdemeanor and be punished by a fine of up to $1,000 or imprisonment not to exceed 90 days or by both such fine and imprisonment.

B. In addition to any criminal penalty for a violation of this chapter, the business license of the secondhand dealer or employee who is found guilty, pleads guilty or forfeits bail for a violation of this chapter or any crime involving theft, dishonesty or moral turpitude shall be revoked for a period of one year.

C. In addition to any criminal penalty for a violation of this chapter, any firm, person or corporation violating by omission or commission any provisions of this chapter shall be subject to all civil enforcement provisions authorized by the Lynnwood Municipal Code except as precluded by law. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2698 § 15, 2007; Ord. 2656 §§ 1, 2, 2006; Ord. 2560 § 12, 2005; Ord. 1982 § 4, 1993; Ord. 1353 § 4, 1983; Ord. 975 § 9, 1978)

5.82.100 Obligation to supply true and current information.

Any person who shall offer property for pawn, purchase, trade or consignment to a pawnshop or secondhand dealer shall, upon the request of the licensee, supply true and current information for the transaction record. The person offering the property shall be responsible for verifying the information on the transaction record and it shall be unlawful for any person to affix their signature to the transaction record if they know the information on the record is not true and current. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2560 § 13, 2005)