Chapter 4.05
PAWNBROKERS
Sections:
4.05.050 Prohibited transactions.
4.05.070 Adoption of state statute provisions.
4.05.080 Seller or consignee to give true name and address.
4.05.100 Photograph of seller or consignee.
4.05.120 Items of interest list.
4.05.130 Retention of property.
4.05.140 Regulatory rule making—By chief of police.
4.05.150 Criteria for denial or revocation of license.
4.05.170 Records and articles to be available for inspection.
4.05.180 Transcript to be furnished.
4.05.010 Definitions.
As used in this chapter:
“Items of interest” means and includes items of property which are commonly stolen, fenced or offered for sale as stolen goods, and which are therefore of interest to the Sumas police department (“SPD”). Such items shall at a minimum include jewels, precious metals, gem stones, electronic equipment such as stereos and stereo components, radios, televisions, CB radios, VCRs, tools, silverware, bicycles, scuba gear and such other items of personal property as are either deemed suspicious or unusual by the licensee or which has been identified as items of interest by the SPD in accordance with the provisions of Section 4.05.120 of this chapter.
“Metal junk” means any metal that has previously been milled, shaped, stamped or that is no longer useful in its original form, except precious metal.
“Melted metals” means metals derived from metal junk or precious metals that have been changed to a melted state from other than ore or ingots which are produced from ore which has previously been processed.
“Nonmetal junk” means any nonmetal commonly discarded item that is worn out or outlived its usefulness as intended in its original form, except nonmetal junk does not mean an item made in a former period which has enhanced value because of its age.
“Pawnbroker,” as used in this chapter, means and includes every person or entity which takes or receives by way of pledge, pawn or exchange, goods, wares or personal property of any kind as security for the repayment of any money loaned thereon, or to loan money on deposit of personal property, or who makes public display of any sign indicating that he has money to loan on personal property on deposit or pledge.
“Precious metals” means gold, silver and platinum.
“Secondhand dealer,” as used in this chapter, means and includes every person engaged in the purchase, sale, barter, auction, sale on consignment, or otherwise exchanges secondhand goods, as defined herein, or who keeps a store, shop, room or other place where secondhand goods of any kind or description are bought, sold, traded or bartered, pledged, auctioned, sold on consignment or otherwise exchanged; provided, however, that this term shall not apply to those persons engaged in the business of selling used or secondhand motor vehicles, boats and other recreational vehicles, or of a pawnbroker as defined in this chapter.
Secondhand dealer also includes persons or entities conducting business at flea markets or swap meets, more than three times per year.
“Secondhand goods,” when used in this chapter, means and includes any and all used or remanufactured goods purchased or kept for sale by a dealer in secondhand goods including metal, junk or melted metals; provided, however, that except for “items of interest” as defined herein, such term shall not be construed to include used or secondhand motor vehicles, boats and other recreational vehicles, or items of personal property more than fifty years old, referred to as “antiques.”
“Transaction,” as used in this chapter, means and includes all instances or dealings with a customer where a pawnbroker, as defined herein, gives money or value in exchange for goods of any kind; and all instances or dealings where a secondhand dealer, as defined herein, gives money or value in exchange for secondhand goods as defined herein. (Ord. 1161 § 2, 1995; Ord. 1145 § 2, 1995)
4.05.020 License required.
It is unlawful for any person, in the incorporated area of the city, without first obtaining a license pursuant to the provisions of this chapter and Chapter 4.04 to:
(1) Engage in business of pawnbrokers; or
(2) Deal in secondhand property.
Pawnbrokers and secondhand dealers, as referred to in subsections (1) and (2) of this section, are collectively referred to as “licensee(s).” (Ord. 1161 § 3, 1995; Ord. 1145 § 3, 1995)
4.05.030 License fees.
(a) The license fee for a pawnbroker’s license shall be seventy-five dollars each calendar half-year period, and such half-year fee shall be paid for the license to operate as a pawnbroker at any time during each half-year period of every calendar year; that is, the half-year license fee of seventy-five dollars shall be required for a pawnbroker’s license covering any portion of the period from January 1st through June 30th of any year, and a like half-year license fee shall be required for any portion of the period from July 1st through December 31st of any year.
(b) A pawnbroker licensed under this section shall (not) need a business license as required under Chapter 4.04.
(c) Any person or entity may engage solely in the business as a secondhand dealer, by application hereunder, without paying any license fee therefor, provided the applicant for a license as a secondhand dealer has a business license as required under Chapter 4.04. (Ord. 1161 § 4, 1995; Ord. 1145 § 4, 1995)
4.05.040 Exemptions.
This chapter shall not apply to any bona fide charitable or nonprofit organization; to motor vehicle dealers licensed under Chapter 46.70 RCW; to motor vehicle wreckers or bulk haulers licensed under Chapter 46.79 or 46.80 RCW; to persons giving an allowance for the trade-in or exchange of secondhand property on the purchase of other merchandise of the same kind or greater value; and to persons in the business of buying empty food and beverage containers or nonmetal junk. Notwithstanding the foregoing, all exempt entities must comply with the business license provisions as contained in Chapter 4.04. (Ord. 1161 § 5, 1995; Ord. 1145 § 5, 1995)
4.05.050 Prohibited transactions.
It is unlawful for any licensee, his agent, employee or representative to:
(1) Purchase or exchange any article or thing from any person under eighteen years of age, or from any person who is at the time intoxicated, or from any habitual drunkard or from any person addicted to the use of a narcotic drug, or a known thief or receiver of stolen goods, or from any person whom he has reason to suspect to believe to be such;
(2) To sell, receive or hold for pledge or secondhand purchase any item of merchandise where the manufacturer’s make, model or serial number, personal identification number or identifying marks engraved or etched upon an item thereof has been removed, altered or obliterated; and
(3) To purchase, store or offer for sale or trade any new or used vehicles as defined under RCW 46.04.670;boats or other manufactured items which require registration with the Washington Department of Licensing; or any firearms, ammunition or deadly weapons defined as such under Chapter 9.41 RCW. (Ord. 1161 § 6,1995; Ord. 1145 § 6, 1995)
4.05.060 Bond.
(a) Before a pawnbroker’s license shall be issued, each applicant for a pawnbroker’s license shall file with the clerk-treasurer a bond to the city in the sum of one thousand dollars with two or more sufficient sureties, residents of the city, or with a bonding company as surety or a cash bond; conditioned that the applicant will strictly observe all ordinances of the city relative to pawnbrokers and their regulation, and will pay all fines imposed or incurred on account of failure to strictly comply with the conditions of the city ordinances, and that the applicant will promptly pay all sums imposed or incurred on account of failure to comply, including all fines and all damages to any person resulting by reason of his wrongful purchase or acceptance as pledge any stolen articles or property of any minor.
(b) There is no bonding requirement for any person or entity licensed to operate solely as a secondhand dealer. (Ord. 1161 § 7, 1995; Ord. 1145 § 7, 1995)
4.05.070 Adoption of state statute provisions.
Except to the extent that the following adopted state statutes are inconsistent with the provisions otherwise set forth under this chapter, the following provisions of the Revised Code of Washington and all future amendments thereto are adopted by reference as though fully set forth herein:
(1) Definitions. RCW 19.60.010;
(2) Duty to Record Information. RCW 19.60.020;
(3) Report to Chief of Police. RCW 19.60.040;
(4) Duties Upon Notification that Property is Reported Stolen. RCW 19.60.045;
(5) Retention of Property by Pawnbrokers-Inspection. RCW 19.60.050;
(6) Retention of Property by Secondhand Dealers-Inspection. RCW 19.60.055;
(7) Rates of Interest and Other Fees-Sale of Pledged Property. RCW 19.60.060;
(8) Pawnbrokers-Sale of Pledged Property Limited Written Document Required for Transactions. RCW 19.60.061;
(9) Attorney Fees and Costs in Action to Recover Possession or Determine Title or Ownership. RCW 19.60.062;
(10) Prohibited Acts-Penalty. RCW 19.60.066;
(11) Resale Agreement to Avoid Interest and Fee Restrictions Prohibited. RCW 19.60.068. (Ord. 1161 § 8, 1995; Ord. 1145 § 8, 1995)
4.05.080 Seller or consignee to give true name and address.
Anyone who pledges, sells or consigns any property to a pawnbroker or pledges, consigns or sells an item of interest as defined in this chapter, or as may be expanded under Section 4.05.120, to a secondhand dealer shall sign the records required to be kept by such licensee with his or her true name, shall include his or her correct address and telephone number, and shall provide for inspection by the licensee of one of the following forms of identification which shall contain a photograph of the individual: driver’s license, instruction permit or identification card of any state in the United States or a province of Canada; “identicard” issued by the Washington State Department of Licensing pursuant to RCW 46.20.117; United States active duty military identification; and/or passport. (Ord. 1161 § 9, 1995; Ord. 1145 § 9, 1995)
4.05.090 Records required.
(a) For every transaction completed, a licensee shall maintain at his place of business a written record in which he shall, at the time of a transaction, enter, in the English language, the following information:
(1) The date of the transaction;
(2) The printed name, signature, date of birth, street and house number, telephone number, the general description of the size, complexion and color of hair of the person with whom the transaction is made, including the identification which the customer shall present to verify his or her identity and the serial or other number of such identification;
(3) The name, street, house number and telephone number of the owner of the property bought or received in pledge;
(4) The street, house number and telephone number of the place from which the property bought or received in pledge was last removed;
(5) A complete 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, model number or name, any initials or engravings, 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. The description shall also include size, patterns and color of precious stones. 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;
(6) The price paid or the amount loaned;
(7) The number of the written record (i.e. a receipt, a pawn ticket) completed for the transaction;
(8) The nature of the transaction, a number identifying the transaction, the store identification or the name and address of the business and the name of the person or employee, or the identification number of the person or employee conducting the transaction and making the entries required herein, and the location of the property;
(9) All additional information as may be required by RCW 19.60.020 as currently exists or as may hereinafter be amended.
(b) The information as required hereunder shall be submitted in accordance with forms applied by the SPD to the licensee and shall require the licensee to provide the above-referenced information as outlined on the form. The form may be changed from time to time, provided that it provides all, some, but not more than, the information as set forth hereinabove. The licensee shall reimburse the city for the actual cost incurred by the city in having the forms printed to be used hereunder. (Ord. 1161 § 10, 1995; Ord. 1145 § 10, 1995)
4.05.100 Photograph of seller or consignee.
The licensee shall obtain a head and shoulders photo of all customers involved in each transaction at the time of the transaction. The photograph thus taken shall be included with the information as required under Sections 4.05.070(2) and 4.05.090. The SPD may modify this photo requirement insofar as repeat sellers or consignees are concerned within a three-year period. (Ord. 1161 § 11, 1995; Ord. 1145 § 11, 1995)
4.05.110 Police holds.
(a) A police officer may place a “hold” upon any property in the possession of a licensee by notifying the licensee and making an entry upon the permanent record required by Section 4.05.090, provided the officer has probable cause or reasonable grounds to believe that such item is stolen or suspected as being stolen or otherwise related to or allegedly involved in the commission of a crime. Once a hold has been imposed, the licensee shall then:
(1) Tag or otherwise reasonably identify the item;
(2) Hold the item in a place safe from alteration, loss, damage or commingling with other goods, on the business premises of the dealer to which police officers shall have access at any time during the dealer’s regular businesshours.
(b) The SPD may place a verbal hold on any item held or received by a licensee hereunder which shall remain in effect ten business days only, unless a follow-up written notice is received by the licensee within the ten-business-day period.
(c) Unless sooner release is given by the chief, a hold perfected by written notice will expire at the end of one hundred twenty days unless renewed in writing by a law enforcement officer. The renewal period shall be for an additional one hundred twenty days. Property so held shall not be released for one hundred twenty days from the date of written police notification unless released by written consent of the chief or his or her designee or by an order of a court of competent jurisdiction. The licensee may release the property at the end of the one-hundred-twenty day period or thereafter, provided he gives written notice (release notice) to the SPD of his intent to release the property at least twenty days prior to the day of release intended. If notice is not given within the required twenty day period, then the hold on the property shall continue until twenty days following the giving of said notice. The chief or his or her designee may, by timely written notice to the licensee before the expiration of the pending one-hundred-twenty-day notice period, renew the holding period for an additional one hundred twenty days as necessary.
(d) If the SPD desires to extend the holding period after receiving a release notice from the licensee, an additional one-hundred-twenty-day holding period may be obtained if the SPD gives the licensee a written hold notice prior to the expiration of the holding period about to expire. Any hold that is placed on an item will be removed as soon as there is no longer a valid law enforcement reason for retaining the hold. (Ord. 1161 § 12, 1995; Ord. 1145 § 12, 1995)
4.05.120 Items of interest list.
The chief shall have the right to maintain an items of interest list (“list”), which list shall include items of property which are commonly stolen, fenced or offered for sale as stolen goods, and which are therefore of interest to the SPD. Initially, such list may include the items of interest included within the definition of “items of interest” set forth in Section 4.05.010. (Ord. 1161 § 13, 1995; Ord. 1145 § 13, 1995)
4.05.130 Retention of property.
No property which has been determined to be an item of interest under the provisions of this chapter or departmental rule and which has been bought or received in pledge by any pawnbroker shall be removed from such place of business within thirty days after the licensee receives notification thereof from the SPD, except when redeemed by the owner thereof. (Ord. 1161 § 14, 1995; Ord. 1145 § 14, 1995)
4.05.140 Regulatory rule making—By chief of police.
The chief shall have the right to determine that an item of personal property is or has become an item which is commonly stolen or fenced or otherwise offered for sale as stolen property and, at his discretion, add such item to the list established in Section 4.05.120, or by previous rule making. The chief shall make his determination in writing and shall notify such licensee under this chapter that a particular item of personal property has become an “item of interest” in accordance with the provisions of this chapter. The chief shall cause such written notification to be served on each licensee, either by certified or registered mail or by personal service at the licensee’s place of business within the city, and he shall provide copies of such determination to the city clerk-treasurer for distribution to future licensees. (Ord. 1161 § 15, 1995; Ord. 1145 § 15, 1995)
4.05.150 Criteria for denial or revocation of license.
The city clerk-treasurer may deny a license to any applicant or may suspend or revoke all city licenses (including a license under this chapter or a business license issued under Chapter 4.04) of the licensee or any other person with an interest in the licensee’s business or any employee of a licensee if the licensee:
(1) Knowingly causes, aids, abets or conspires with another to cause any person to violate any of the laws of this state or the city;
(2) Has obtained a license or permit by fraud, misrepresentation, concealment or through inadvertence or mistake;
(3) 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;
(4) Makes a misrepresentation of, or fails to disclose, a material fact to the city in relation to his business as regulated under this chapter;
(5) Has been convicted of a gross misdemeanor involving dishonesty or a crime involving moral turpitude within the preceding five years;
(6) Has been convicted of a felony;
(7) Is under twenty-one years of age;
(8) Has violated any section of this chapter; or
(9) Employs anyone in the licensed business who fails to meet the requirements of subsections (5), (6) and (7) of this section or who is under eighteen years of age. (Ord. 1161 § 16, 1995; Ord. 1145 § 16, 1995)
4.05.160 Request for hearing.
When the city clerk-treasurer determines that there is cause for denying, suspending or revoking any license issued pursuant to this chapter, the clerk-treasurer shall notify the person holding such license by registered or certified mail, return receipt requested, of the clerk-treasurer’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 date the notice is delivered or deemed received unless the person affected thereby files a written request with the clerk-treasurer for a hearing before the council within such ten-day period. The council shall set and hold a hearing within thirty days following receipt of such request. Appeal from a decision of the council shall be to the Whatcom County superior court and must be served and filed within thirty days of the decision of the 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. 1161 § 17, 1995; Ord. 1145 § 17, 1995)
4.05.170 Records and articles to be available for inspection.
All licensee’s transaction records shall at all times be open for inspection by any police or municipal officer of the city or city attorney. All books and other records required under this chapter shall be maintained wherever that business is conducted for at least three years following the date of the transaction. (Ord. 1161 § 18, 1995; Ord. 1145 § 18, 1995)
4.05.180 Transcript to be furnished.
(a) It is the duty of every licensee to furnish to the SPD, on the forms as the SPD may provide, a full, true and accurate transcript recording of all transactions occurring on a given day involving any item of interest as defined by this chapter or SPD department rule, within forty-eight hours of the close of business.
(b) It is also the duty of any licensee having reasonable or probable cause to believe any property in his possession has been previously lost or stolen, to report such fact to the SPD 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.
(c) Upon receipt of any item of merchandise where the manufacturer’s make, model or serial number, personal identification number or identifying marks engraved or etched upon an item thereof has been removed, altered or obliterated, the licensee shall report such fact to the SPD immediately, together with the name of the owner, if known, and the date and name of the person from whom the item of merchandise is received.
(d) A hard copy of all information as required under subsection (a) of this section on the city SPD required forms shall be delivered to the SPD not later than noon of each day following the day that the transaction with the pawnbroker occurred. In addition, all such transaction information shall be recorded by the pawnbroker in a computer using the software required ~by the city for computer filing of pawnbroker transaction information. The pawnbroker’s computer system shall be compatible with the city’s computer system, both in hardware and software. The pawnbroker shall then report to SPD, not later than noon on Monday of each week, on computer disk, a copy of all transactions from the previous week so that it can be downloaded into the city’s computer. All transaction information shall be placed on a hard copy form at the time of the transaction and shall also be inputted into the pawnbroker’s computer within twenty-four hours of the transaction, and the transaction information stored in the licensee’s computer shall be available for on-site inspection by the SPD at all reasonable times, at SPD’s request. All transaction information inputted into the computer shall be stored and retained at the pawnshop business location for at least three years, whereby at any one given time there will be a computer record of all transactions within the preceding three years. (Ord. 1161 § 19, 1995; Ord. 1145 § 19, 1995)
4.05.190 Business hours.
A pawnshop, as licensed and regulated under this chapter, shall be open to the public for business only, at any time, between the hours of nine a.m. and six p.m. of each day of the week and, accordingly, it shall be illegal and in violation of this chapter for a pawnshop to be open to the public at any time before nine a.m. or after six p.m. of any given day. (Ord. 1161 § 20, 1995; Ord. 1145 § 20, 1995)
4.05.200 Violations.
Every licensee and every clerk, agent or employee of such licensee or pawnbroker, who does any of the following shall be guilty of a misdemeanor:
(1) Knowingly fails to make an entry of any material matter in the records he keeps as required under this chapter; or
(2) Knowingly makes any false entry therein; or
(3) Falsifies, obliterates, destroys or removes from his place of business such book or record; or
(4) Reports any material falsely to the chief; or
(5) Refuses to allow the SPD to inspect the book or record kept, or any goods in his possession, during the ordinary hours of business; or
(6) Fails to provide a weekly report as prescribed to the chief, or
(7) Fails to report forthwith to the chief the possession of any property which he may have good cause to believe has been lost or stolen, or is an item of interest as defined under this chapter, together with the name of the owner, if known, and the date when, and the name of the person from whom, the property was received by him; or
(8) Removes, or allows to be removed, from his place of business, except upon redemption by the owner thereof, any property received within four days after the receipt thereof has been reported to the chief, or
(9) Removes, alters or obliterates any manufacturer’s make, model or serial number, personal identification number or identifying marks engraved or etched upon an item of personal property that was purchased, consigned or received in a pledge or transaction with a pawnbroker as regulated under this chapter; or
(10) Violates any other of the provisions of this chapter. (Ord. 1161 § 21, 1995; Ord. 1145 § 21, 1995)
4.05.210 Penalties.
In addition to the criminal penalties authorized under this code for misdemeanors, the city may suspend licensee’s license under this chapter and the licensee’s business license as provided under Chapter 4.04 as follows:
(1) For first offense, one to thirty days;
(2) For second offense, one to one hundred eighty days;
(3) For third or more offenses, permanently. (Ord. 1161 § 22, 1995; Ord. 1145 § 22, 1995)