Chapter 4.42
PAWNBROKERS AND SECONDHAND DEALERS

Sections:

4.42.010    Definitions.

4.42.015    License—Required—Fee.

4.42.020    License—Application.

4.42.030    License—Proration of fees.

4.42.040    License—Renewal.

4.42.050    Prohibited conduct.

4.42.060    Violations—Penalties.

4.42.070    Emergency suspension/revocation of license.

4.42.080    Appeals.

4.42.010 Definitions.

For the purpose of this chapter, certain words and terms shall have the following meaning:

(a)    “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.

(b)    “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 with the state. Secondhand dealer also includes persons or entities conducting business at flea markets or swap meets, more than three times per year.

(c)    “Precious metals” means gold, silver and platinum.

(d)    “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 for resale value of seventy-five dollars or less, except furs.

(e)    “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.

(f)    “Loan period” means the period of time from the date the loss is made until the date the loan is paid off, the loan is in default or the loan is refinanced and the new loan documents are issued, including all grace or extension periods.

(g)    “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.

(h)    “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.

(i)    “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 it age. (Ord. 1403 § 1, 1999).

4.42.015 License—Required—Fee.

It is unlawful for any person to engage in the business of a pawnbroker or to conduct a pawnshop or to engage in the business of secondhand dealer as those items are defined in Section 4.42.010, without first having obtained a license to do so to be known and designated as “pawnbroker’s/secondhand dealer’s license.” The license fee for such license shall be set by resolution for the original application and the annual fee thereafter. A supplemental license fee for each employee or agent shall be charged as a one-time fee set by resolution and paid at the time the application is filed; provided there is no break in employment by the employee or agent with the licensee; provided, however, that the licensing requirements of this chapter shall have no application to casual nonbusiness sales of personal property or to yard sales so long as the person, firm or corporation conducting the yard sale does not conduct more than two such yard sales in any one calendar year for more than five days’ duration. (Ord. 1418 § 16, 1999; Ord. 1403 § 2, 1999).

4.42.020 License—Application.

(a)    Application for a pawnbroker’s/second-hand dealer’s license shall be in writing, filed with the Omak police department on a form furnished by the city and shall be accompanied by the required license fee. The application shall be investigated and a written recommendation made to the council. Any conviction by the applicant, owners, agents or employees of the business during the previous ten years for the crimes of burglary, larceny, receiving stolen goods and other such or similar crimes, as may be determined by the chief of police, shall be grounds for denial of such license. Crimes more than ten years old may be considered by the chief of police, and shall be reviewed on an application-by-application basis.

(b)    In case of approval of the application by the city council, after written recommendation has been made to such body by the police department, such license may then be issued. No new employee or agent of the licensee shall become engaged in the business of the licensee until a supplemental application shall have been submitted, the appropriate fee paid, the police department has conducted an investigation, and the council has approved the supplemental application as set forth in this section. (Ord. 1403 § 3, 1999).

4.42.030 License—Proration of fees.

There shall be no prorating of the fees mentioned in Section 4.42.020, and such licenses shall expire on the thirty-first day of December of each year; except that in the event the original application is made subsequent to the June 30th, then one-half of the annual license fee may be accepted for the remainder of the year. The licenses shall not be assignable. (Ord. 1403 § 4, 1999).

4.42.040 License—Renewal.

Applications for renewal of licenses issued under this chapter shall be made to the police department on or before the December 31st expiration date provided for in this chapter. There shall be assessed and collected by the police department an additional charge, computed as a percentage of the license fee, on applications not made on or before such date, as follows:

Days Application Past Due

Percent of License Fee

1-30

25%

31-60

50%

61 and over

75%

(Ord. 1403 § 5, 1999).

4.42.050 Prohibited conduct.

The licensee, their employees, representatives or agents shall not:

(a)    Violate any federal, state or city statute, law, regulation or ordinance upon the business premises, whether or not any party has been convicted in any court of competent jurisdiction of such violations; provided, however, any court records brought before the court shall be prima facie evidence of such violations; or

(b)    Conduct, engage in or operate the business in a manner which does not conform to the ordinances of the city, including this chapter; or

(c)    Engage in unfair or deceptive acts or practices in the conduct of the business, or operate the business in such a manner as to constitute a public nuisance; or

(d)    Make any material false statement or representation, or fail to disclose any material information to the city in connection with obtaining the license necessary hereto, or any renewal thereof. (Ord. 1403 § 6, 1999).

4.42.060 Violations—Penalties.

(a)    Any licensee who violates this chapter by engaging in any prohibited conduct or fails to perform any act required under this chapter, shall be liable for a civil penalty, in addition to any other penalties in Section 4.42.070, and any person, business, firm or corporation having been found to have committed such civil infraction shall be assessed the following penalties:

(1)    First violation: Fifty-dollar penalty and/or ten days’ license suspension;

(2)    Second violation: Two-hundred-fifty-dollar penalty and/or thirty days’ license suspension;

(3)    Third violation: Five-hundred-dollar penalty and permanent revocation of license.

(b)    The above penalties shall be assessed and recovered in a civil action brought in the name of the city of Omak in any court of competent jurisdiction.

(c)    Each day during which a violation continues shall be deemed a separate offense and separate penalties may be assessed for each separate offense.

(d)    Whenever a monetary penalty is imposed by a court for violation of this chapter, it is payable immediately. (Ord. 1403 § 7, 1999).

4.42.070 Emergency suspension/revocation of license.

The chief of police may immediately suspend or revoke a license for any violation of RCW 9.51 through 9.91, 9A.28 through 9A.88, 66.44.909 through 66.44.370 and 69.38 through 69.53. (Ord. 1403 § 8, 1999).

4.42.080 Appeals.

(a)    Any person whose license has been suspended or revoked by the chief of police may appeal to the council of the city of Omak by filing a notice of appeal in writing to the city clerk and within ten days of the date of suspension or revocation. The notice of appeal shall not stay the notice of suspension or revocation.

(b)    At the time of the filing of the notice of appeal, the city clerk shall place the appellant or licensee on the agenda for the next regularly scheduled council meeting occurring more than seven days after receipt of the notice of appeal, and inform the appellant in writing, of the date, time and location of the meeting. At such meeting, the city council shall set a date for a public hearing on the appeal. The public hearing shall be set for the next council meeting and the council shall take testimony from the chief of police, testimony from the appellant and public testimony.

(c)    (1) The council shall determine the following:

(A)    Sustain the decision of the chief of police;

(B)    Set aside the decision of the chief of police;

(C)    Modify the decision of the chief of police.

(2)    The decision of the council shall be final and binding. (Ord. 1403 § 9, 1999).