Chapter 5.10
REGULATION OF PAWNBROKERS

Sections:

5.10.010    License required.

5.10.015    Adoption by reference.

5.10.020    Repealed.

5.10.030    Definitions.

5.10.040    License fee.

5.10.050    Application for license.

5.10.055    Fixed place of business required.

5.10.060    Criteria for denial or revocation of license.

5.10.065    Request for hearing.

5.10.080    Records required.

5.10.090    Records and articles to be available for inspection.

5.10.100    Seller or consignor to give true name and address.

5.10.110    Transcript to be furnished.

5.10.120    Police seizures – Police holds.

5.10.125    Pawnbroker sale of pledged property limited – Written document required for transactions.

5.10.130    Penalty.

5.10.010 License required.

It is unlawful for any person, firm or corporation to engage in the business of pawnbroker within the city without first obtaining a license pursuant to the provisions of this chapter. (Ord. 2546 § 2 (part), 2010: Ord. 1778 § 1, 1994: Ord. 1155 § 1 (part), 1983).

5.10.015 Adoption by reference.

RCW 19.60.066 entitled “Prohibited Acts” is hereby adopted by reference as if set forth in full. (Ord. 2546 § 2 (part), 2010: Ord. 1678 § 1, 1992).

5.10.020 Exemptions.

Repealed by Ord. 1778. (Ord. 1678 § 2, 1992: Ord. 1155 § 1 (part), 1983).

5.10.030 Definitions.

(A) The term “pawnbroker,” as used in this chapter, means and includes every person who takes or receives by way of pledge, pawn or exchange, goods, wares or merchandise of any kind of personal property whatever, for the repayment of security of any money loaned thereon, or to loan money on deposit of personal property, or the purchase or sale of personal property, or who makes public display of any sign indicating that he has money to loan on personal property under deposit or pledge.

(B) Repealed by Ord. 1778.

(C) Repealed by Ord. 1778. (Ord. 2546 § 2 (part), 2010: Ord. 1778 § 11, 1994; Ord. 1678 § 3, 1992: Ord. 1155 § 1 (part), 1983).

5.10.040 License fee.

(A) The fee for a pawnbroker’s license shall be set by Council resolution and will cover the costs of obtaining a criminal history conviction record from Washington State Patrol’s Washington Access to Criminal History (WATCH) website and processing the application.

(B) License fees shall be due and payable on February 1 of each year for which the license is issued. This license shall be in lieu of the city business license and shall not be assignable or transferable. (Ord. 2546 § 2 (part), 2010: Ord. 1778 § 2, 1994: Ord. 1480 § 4, 1989: Ord. 1231 § 1, 1985; Ord. 1155 § 1 (part), 1983).

5.10.050 Application for license.

(A) All applications for issuance or renewal of a pawnbroker’s license shall be made to and filed with the finance director on forms furnished for such purpose, and shall be accompanied by the required fee. The application shall state the true name of the applicant, who shall not be less than eighteen (18) years of age, the names of all persons having financial, proprietary or other interest in such pawnshop, together with such other information as the finance director deems appropriate.

(B) Upon the filing of an application, the application and the WATCH report shall then be referred to the City of Redmond Police Department and any other department the finance director feels appropriate, for review, report, and recommendation. Within thirty days after receipt of a copy of the application, the appropriate city departments shall investigate the statements set forth in the application and determine whether the application contains false, misleading, or incomplete information. The appropriate city departments shall, at the same time and as part of its report to the finance director, render a written recommendation as to approval or denial of the application for permit or renewal thereof.

(C) Within thirty days after receiving the aforementioned report and recommendation from the police and other city departments, the finance director shall grant or deny the permit or renewal thereof. If, from the information supplied to the finance director, it appears that the application is proper and the statements contained in the application are true and complete, and that the applicant or the owners of the corporation or partners of the partnership applying has satisfied all criteria for the granting of a license and has complied with all the requirements of the Redmond Municipal Code, the finance director shall issue a license to the applicant. Otherwise, the license application shall be denied pursuant to the criteria and procedures herein. (Ord. 2546 § 2 (part), 2010: Ord. 1778 § 3, 1994; Ord. 1231 § 2, 1985: Ord. 1155 § 1 (part), 1983).

5.10.055 Fixed place of business required.

No person may operate as a pawnbroker within the city, unless the person maintains a fixed place of business within the city. (Ord. 2546 § 2 (part), 2010: Ord. 1678 § 4, 1992).

5.10.060 Criteria for denial or revocation of license.

The finance director may deny a license to any applicant or may suspend or revoke any and all licenses or permits of any holder when such person or any other person with any interest in the applicant for, or holder of, such license or permit:

(1) Knowingly causes, aids, abets, or conspires with another person to cause any person to violate any of the laws of this state or the city, which may affect or relate to the applicant’s or license holder’s business;

(2) Has obtained a license or permit by fraud, misrepresentation, concealment, or through inadvertence or mistake;

(3) Has been convicted of, or forfeited bond upon a charge of, or pleaded guilty to any felony offense directly related to the operation of the license holder’s business within the last ten years;

(4) Shall fail to display its license on the premises where the licensed activity is conducted at all times during the operation of the licensed activity;

(5) Makes a misrepresentation of, or fails to disclose, a material fact to the city;

(6) Allows any person who has been convicted of, or forfeited bond upon, any offense directly related to the operation of the license holder’s or a similar business, in the management or operation of any activity regulated by this license without prior written approval of the finance director;

(7) Has violated any section of this chapter;

(8) Violates any building, safety, fire or health regulations on the premises in which the business is located after receiving warning from city to refrain from such violations;

(9) Is in violation of a zoning regulation of the city. (Ord. 2546 § 2 (part), 2010: Ord. 1231 § 3, 1985: Ord. 1155 § 1 (part), 1983).

5.10.065 Request for hearing.

(A) Notification of Suspension, Revocation, or Denial. When the finance director determines that there is cause for denying, suspending or revoking any license issued pursuant to this chapter, the finance director shall notify the person holding such license by registered or certified mail, return receipt requested, of the finance director’s decision. Notice mailed to the address on file shall be deemed received three days after mailing. The notice shall specify the grounds for the denial, suspension or revocation. The suspension or revocation shall become effective ten days from the day the notice is delivered or deemed received unless the person affected thereby files a written request with the finance director for a hearing before the city hearing examiner within such ten-day period.

(B) Hearing Procedure. Upon written request as set out above, the hearing examiner shall schedule and hold a hearing within thirty days following receipt of such request. During the pendency of the hearing and until action by the city council the action of the finance director shall be stayed. At the hearing, both the applicant or licensee and the city shall be entitled to present evidence. Upon completion of the hearing, the hearing examiner shall make written findings and a recommendation to the city council. At a public meeting, the city council upon considering the findings and recommendations of the hearing examiner shall, without need for further evidence:

(1) Accept the hearing examiner’s recommendation as presented; or

(2) Determine no action is warranted; or

(3) Modify the recommended action.

(C) Appeal from City Council. Appeal from a decision of the city council shall be to the King County Superior Court and must be served and filed within thirty days of the decision of the city council. In the event the applicant or license holder does not follow the procedures within the time periods set forth above, the license of said person shall be denied, suspended or revoked, and that action shall be final. (Ord. 2546 § 2 (part), 2010: Ord. 1231 § 4, 1985).

5.10.080 Records required.

(A) Every pawnbroker shall maintain at his place of business a record of all loans, purchases or sales, in the English language, and which must contain the following information:

(1) The date of the transaction;

(2) The name of the person conducting the transaction and making the entries required herein;

(3) The printed name, signature, date of birth, street and house number, telephone number, the height, weight, gender, race, color of hair and eyes of the person with whom the transaction is had, including the identification which the customer shall present to verify his identity pursuant to Section 5.10.100, and the serial or other number of such identification;

(4) The name, street and house number of the owner of the property bought or received in pledge;

(5) The street and house number of the place from which the property bought or received in pledge was last removed;

(6) A description of the property bought or received in pledge, which shall include the name of the maker of such property or the manufacturer thereof and the serial number, if the article has such marks on it, or any other inscriptive or identifying marks, which, in the case of watches, shall contain the name of the maker and the number of both the works and the case. In the case of firearms, the caliber, barrel length, type of action, and whether it is a pistol, rifle, or shotgun shall be recorded. Provided, that when the article received is furniture or the contents of any house or room, actually inspected on the premises where the sale is made, a general description of the property shall be sufficient;

(7) The price paid or the amount loaned;

(8) The number of any pawn tickets issued therefor. (Ord. 2546 § 2 (part), 2010: Ord. 1778 § 4, 1994; Ord. 1678 § 5, 1992; Ord. 1155 § 1 (part), 1983).

5.10.090 Records and articles to be available for inspection.

All books and other records of any pawnbroker relating to purchase, pledge, exchange, receipt of any goods, wares, merchandise or other articles or things of value, shall at all times be open for inspection by any commissioned law enforcement officer of this state or any of its political subdivisions, and all articles and things received, purchased or left in pledge with the pawnbroker shall at all times be open to like inspection. Records on all business conducted shall be kept for a period of three (3) years following the date of the transaction. (Ord. 2546 § 2 (part), 2010: Ord. 1778 § 5, 1994: Ord. 1678 § 6, 1992: Ord. 1155 § 1 (part), 1983).

5.10.100 Seller or consignor to give true name and address.

(A) Anyone who pledges, sells or consigns any property to or with a pawnbroker shall sign the records required to be kept by such pawnbroker with his true name and shall include his correct address, and shall provide for inspection one of the following containing a photograph of the individual:

(1) Driver’s license, instruction permit 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;

(2) United States active duty military identification;

(3) Passport.

(B) Anyone who violates this section shall be guilty of a misdemeanor and upon conviction shall be punished by imprisonment for not more than six months or by a fine of not more than five hundred dollars or both. (Ord. 2546 § 2 (part), 2010: Ord. 1778 § 6, 1994; Ord. 1155 § 1 (part), 1983).

5.10.110 Transcript to be furnished.

(A) It is the duty of every pawnbroker to furnish to the chief of police or designee, on such forms or by electronic mail as the police department may provide therefore, a full, true and correct transcript of the record of all transactions occurring on a given day within 48 hours of close of business.

(B) It is also the duty of any pawnbroker having good cause to believe any property in his possession has been previously lost or stolen, to report such fact to the police department immediately, together with the name of the owner, if known, and the date and name of the person from whom the same was received by such pawnbroker. (Ord. 2546 § 2 (part), 2010: Ord. 1778 § 7, 1994: Ord. 1231 § 6, 1985; Ord. 1155 § 1 (part), 1983).

5.10.120 Police seizures – Police holds.

(A) In addition to retention of property required by this chapter, any police officer having probable cause to believe that any item in the possession of a licensee is stolen may seize such item at any time. In the event of such a seizure, the licensee shall be entitled to a written receipt for the item from the City of Redmond Police Department.

(B) In lieu of immediate seizure, a police officer may place a “hold” upon the property by making an entry upon the permanent record required by Section 5.10.080, indicating that such item is stolen property. The licensee shall then:

(1) Tag or otherwise reasonably identify the item;

(2) Hold it in a place on the business premises of the dealer to which police officers shall have access at any time during the dealer’s regular business hours;

(3) Keep the item safe from alteration, loss, damage, or commingling with other goods.

(C) No licensee shall dispose of any items subject to a police hold in any manner; provided, that items subject to a police hold shall be surrendered to the chief of police or his designee upon request or in compliance with a subpoena signed by the prosecutor or in compliance with an order of a court of competent jurisdiction or as directed in a written release signed by the chief of police or his designee. Property held shall not be released for one hundred twenty (120) days from the date of police notification unless released by written consent of the law enforcement agency or by order of a court of competent jurisdiction. In cases where the law enforcement agency has placed a verbal hold on an item, that agency must then give written notice within ten (10) business days. If such written notice is not received within that period of time, then the hold order will cease. The pawnbroker shall give a twenty (20) day written notice before the expiration of the one hundred twenty (120) day holding period to the law enforcement agency about the stolen property. If notice is not given within twenty (20) days, then the hold on the property shall continue for an additional one hundred twenty (120) days. The law enforcement agency may renew the holding period for an additional one hundred twenty (120) day period as necessary. After the receipt of notification from a pawnbroker, if an additional holding period is required, the law enforcement agency shall give the pawnbroker written notice prior to the expiration of the existing hold order. A law enforcement agency shall not place on hold any item of personal property unless that agency reasonably suspects that the item of personal property is lost or stolen. Any hold that is placed on an item will be removed as soon as practicable after the item on hold is determined not to be stolen or lost. (Ord. 2546 § 2 (part), 2010: Ord. 1778 § 8, 1994; Ord. 1678 § 7, 1992; Ord. 1231 § 7, 1985; Ord. 1155 § 1 (part), 1983).

5.10.125 Pawnbroker sale of pledged property limited – Written document required for transactions.

A pawnbroker shall not sell any property received and pledged until both the term of the loan and a grace period of a minimum of 60 days has expired. However if a pledged article is not redeemed within the 90-day period of both the term of the loan and the grace period, the pawnbroker shall have all rights, title and interest of that item of personal property. The pawnbroker shall not be required to account to the pledger for the proceeds received from the disposition of that item. Any provision of law relating to the foreclosures and the subsequent sale of forfeited pledged items shall not be applicable to any pledge as defined under this chapter, the title to which is transferred in accordance with this section. Every transaction entered into by a pawnbroker shall be evidenced by a written document, a copy of which shall be furnished to the pledger. The document shall set forth the term of the loan, the date in which the loan is due and payable and shall inform the pledger of the pledger’s right to redeem the pledge within 60 days after the expiration of the loan term. (Ord. 2546 § 2 (part), 2010: Ord. 1678 § 8, 1992).

5.10.130 Penalty.

(A) Every pawnbroker and every clerk, agent or employee of such pawnbroker, who shall:

(1) Fail to make an entry of any material matter in the record kept as provided in this chapter; or

(2) Make any false entry therein; or

(3) Falsify, obliterate, destroy or remove from his place of business such book or record; or

(4) Refuse to allow the city prosecutor or the chief of police or his agent to inspect the same, or any goods in his possession, during the ordinary hours of business; or

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

(6) Fail to furnish the chief of police or designee with a full, true and correct transcript of the record of all transactions occurring on a given day within forty-eight hours of the close of business; or

(7) Fail to report forthwith to the chief of police or designee the possession of any property which he 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

(8) Remove, or allow to be removed from his place of business except upon redemption by the owner thereof, any property received within fifteen days after receipt thereof shall have been reported to the chief of police or designee; or

(9) Receive 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 anyone acting on behalf of said individual; or

(10) Violate any provision of this chapter or RCW 19.60.066 by an act of either omission or commission shall be guilty of a gross misdemeanor and upon conviction shall be punished by imprisonment for not more than one year or by a fine of not more than $5,000 or both. Any action brought by an owner to recover goods or by a pawnbroker to determine ownership or title of an item, that results in a prevailing party in the action, is entitled to reasonable attorney’s fees and costs. (Ord. 2546 § 2 (part), 2010: Ord. 1778 §§ 9, 10, 1994; Ord. 1678 § 9, 1992; Ord. 1231 §§ 8 – 11, 1985; Ord. 1155 § 1 (part), 1983).