#4 Introduce & schedule a public hearing to amend pawnbroker ordinance (File Ord. #2010-471)
POLICE DEPARTMENT MEMORANDUM
November 30, 2010
TO: City Council
FROM: Officer Douglas Johnson, Officer Brian Rubeck
SUBJECT: Introduce and schedule a public hearing on a proposed ordinance
amending JGO Chapter 5.52 and Section 5.04.010 N. regulating
junk dealers, second hand dealers, second hand jewelry dealers,
and pawnbrokers in the City of Janesville. (File Ord. 2010-471)
Summary
As proposed, Ordinance 2010-471 will help reduce the officer’s hours and
associated costs related to the monitoring of pawnshops and other related
businesses for stolen property. Currently, officers visit pawn shops daily to pick
up pawn slips. Under the amended ordinance, which requires electronic
reporting, officers will be available for service and other related police calls and
duties.
Recommendation
The City Attorney’s Office and the Police Department recommend that Ordinance
2010-471 be introduced and scheduled for a public hearing on January 10, 2011.
City Manager Recommendation
th
The amended ordinance is being introduced on December 13 and scheduled for
the second public hearing on January 10, 2011.
Analysis
Ordinance 2010-471 will help reduce the officer’s hours and associated costs
related to the monitoring of pawnshops and other related businesses for stolen
property. Currently, officers visit pawn shops daily to pick up pawn slips. Most
affected businesses already send the police department the information, but
each store or company has their own way of reporting. The amended ordinance
will make the manner and process uniform for all businesses.
The amended ordinance would also allow for easier access to the information
that we receive. Currently, officers collect slips from the pawn shops which are
then manually entered into a database at the police department. Officer’s ability
to search for items is limited by the current system. With the new system
information is transmitted to a central database. Our department as well as any
other law enforcement agency can then access the database, review it, and
place holds on items that have been reported stolen in their respective
jurisdictions. We believe this would greatly assist the Janesville Police
Department in the recovery of property and the apprehension of criminals.
Safeguards are also proposed in the amended ordinance requiring that each
customer receive a written receipt for any item sold or pawned. The receipt will
contain an accurate description of each item, whether the item is being pawned
or sold, the amount it is pawned or sold for, the interest rate that is being charged
and the date that the item needs to be redeemed by. All of the requirements are
consistent with Wisconsin State Statute 134.
File Ordinance 2010-471 will apply to pawnbrokers, junk dealers, dealers in
secondhand goods, secondhand article dealers, secondhand jewelry dealers,
secondhand article dealer-mall, or secondhand dealer in junk, wares, or
merchandise.
cc: Eric Levitt, City Manager
Jacob J. Winzenz, Director of Administrative Services
ORDINANCE NO. 2010 - 471
An ordinance amending JGO Chapter 5.52 and Section 5.04.010 N. regulating junk dealers,
second hand dealers, second hand jewelry dealers, and pawnbrokers in the City of Janesville
with penalties as set forth in JGO 5.52.090 and 5.04.180.
THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS
FOLLOWS:
SECTION I.
Chapter 5.52 of the Code of General Ordinances of the City of Janesville is hereby
amended to read as follows:
Chapter 5.52
JUNK DEALER, SECONDHAND DEALER, SECONDHAND JEWELRY DEALER,
PAWNBROKER*
Sections:
5.52.010 License—Required
5.52.011 Definitions
5.52.012 Adoption of State Laws – More Stringent Laws Govern
5.52.020 License—Application—Information required—Bond—
Council approval—Fee—Issuance
5.52.030 License—One place of business only—Moving-Reportable
Transaction
5.52.040 Licensee—Pawnbroker and junk dealer to keep record—
Information required—Police inspection Daily Reports to Police-
Receipt Required
5.52.050 Licensee—Record keeping duties—Information required-Digital
Photo Requirement
5.52.060 Licensee—Restricted purchases
5.52.070 Labels Required-Holding Period-Police order to hold property-Police
to seize property when
5.52.080 License—Business area requirements
5.52.090 Violation—Penalty
5.52.010 License—Required
No person shall do business as a pawnbroker, junk
dealer, dealer in secondhand goods, secondhand article dealer, secondhand jewelry dealer,
secondhand article dealer mall, flea market, or secondhand dealer in junk, wares or merchandise
as those terms are defined in the applicable state laws adopted hereby and incorporated herein as
set forth below, without having first obtained and holding a valid license therefore from the City.
5.52.011 Definitions
When used in this chapter the following words shall mean:
A. “Article”
means any item of value.
B. “Pawn Broker, Second Hand Article Dealer or Secondhand Jewelry Dealer”
means
any person who engages in the business of lending money on the deposit or pledge of any article;
or purchases any article with an expressed or implied agreement or understanding to resell the
article in the same or substantially similar form at a subsequent time.
1.
To the extent that a pawnbroker, secondhand article dealer or secondhand
jewelry dealer’s business includes buying personal property previously used, rented, or leased
the provisions of this chapter shall be applicable.
2.
A person is not acting as a pawnbroker, secondhand article dealer or
secondhand jewelry dealer when engaging in any of the following:
a.
Any transaction at an occasional garage or yard sale, an estate sale,
antique show, gun show or auction.
b.
Any transaction between a buyer of a new article and the person
who sold the article when new that involves any of the following:
1. The return of the article.
2. The exchange of the article for a different, new article.
c.
Any transaction as a purchaser of a secondhand article from a
charitable organization if the secondhand article was a gift to the charitable organization.
d.
Any transaction as a seller of a secondhand article that the person
bought from a charitable organization if the secondhand article was a gift to the charitable
organization.
e.
Any consignment transaction.
5.52.012 Adoption of State Laws – More Stringent Laws Govern
A.
Incorporated herein by reference and made a part of this chapter as if fully set forth
verbatim are Wis. Stats. §§ 134.71 and 134.695, including but not limited to the fee schedule set
by state law in § 134.71(11), all as from time to time amended or renumbered. Any and all acts
required to be performed or prohibited by any statutes so incorporated by reference is/are
required or prohibited by this chapter. Any future amendments, revisions, or modifications of
the statutes incorporated by this chapter are also adopted and incorporated as a part of this
chapter.
B.
The more stringent provision set forth in this chapter or that set forth in the incorporated
state law(s) shall always take precedence and govern, notwithstanding any conflict,
inconsistency or ambiguity to the contrary. The intent is to at all times render this chapter in full
force and effect and in conformity with Wis. Stats.§ 134.71(14), as from time to time amended or
renumbered.
5.52.020 License—Application—Information required—Bond—Council
approval—Fee—Issuance
Any person desiring to obtain a license pursuant to Section
5.52.010 shall file with the city clerk his application therefore, specifying the kind of license
desired and the street and building in which he intends to carry on business thereunder,
A.
A person wishing to obtain a license pursuant to Section 5.52.010 shall apply to the city
clerk for a license. The clerk shall furnish application forms that shall require all of the
following:
1.
The applicant's name, place and date of birth, residence address, and residence
addresses for the 5-year period prior to the date of the application.
2.
The name and address of the business and of the owner of the business premises.
3.
Whether the applicant is a natural person, corporation, limited liability company,
or partnership, and:
a.
If the applicant is a corporation, the state where incorporated and the
names and addresses of all officers and directors.
b.
If the applicant is a partnership, the names and addresses of all partners.
c.
If the applicant is a limited liability company, the names and addresses of
all members.
4.
The name, place, and date of birth, residence address, and residence
addresses for the 5-year period prior to the date of the application of the manager or proprietor of
the business.
5.
The name, address and date of birth of all employees of the business.
6.
Any other information that the clerk may reasonably require.
7.
A statement as to whether the applicant, including an individual, agent, officer,
director, member, partner, manager, or proprietor, has been convicted of any crime, statutory
violation punishable by forfeiture, or county or municipal ordinance violation. If so, the applicant
must furnish information as to the time, place, and offense of all such convictions.
8.
Whether the applicant or any other person listed above has ever used or been
known by a name other than the applicant’s name, and if so, the name or names used and
information concerning dates and places used.
9.
Whether the applicant or any other person listed has previously been denied or
had revoked or suspended as a pawnbroker, second hand article dealer or second hand jewelry
dealer license from any governmental unit. If so, the applicant must furnish information as to the
date, location, and reason for the action.
B.
The police department shall investigate each applicant and any other person listed. The
department shall furnish the information derived from that investigation in writing to the city
clerk. The investigation shall include each agent, officer, member, partner, manager, proprietor
or employee.
C.
The city may grant a license if all of the following apply:
1.
The applicant, including an individual, a partner, a member of a limited liability
company, a manager, a proprietor, or an officer, director, or agent of any corporate applicant,
does not have a significant arrest or conviction record, subject to ss. 111.321, 111.322 and
111.335 of the Wisconsin Statutes.
2.
The applicant provides to the city clerk a bond of $1,000.00 with not less than 2
sureties for the observation of all municipal ordinances or state or federal laws relating to pawn
and secondhand article and secondhand jewelry dealers. The bond must be in full force and
effect at all times during the term of the license.
D.
The following requirements apply to licenses issued under this chapter:
1.
No license may be transferred.
2.
Each license is valid from July 1st until the following June 30th.
3.
Display of license. Each license issued under this chapter shall be displayed in a
conspicuous place visible to anyone entering a licensed premise.
4.
Annual license fees as set forth in 5.04.010 shall apply to licenses under this
chapter.
Upon license application the licensee shall also file therewith a bond executed by himself and
two sureties, or by himself and a surety company, in the penal sum of five hundred dollars, and
conditioned that such applicant will comply with and faithfully observe all the requirements of
this chapter relating to the business which such applicant intends to carry on. Upon the approval
of such bond and application by the council and filing with the city clerk the treasurer’s receipt
showing the payment to him of the license fee prescribed in Section 5.04.010 for the carrying on
of such business, the city clerk shall issue to such applicant the license applied for.
5.52.030 License—One place of business only—Moving allowed when-
Reportable Transaction
A.
No person licensed as a pawnbroker, junk dealer or dealer in secondhand goods, wares
and merchandise shall, by virtue of one license, keep more than one store or place for the
carrying on of such business; provided, however, that such person may remove from one place of
business to another by giving to the police department immediate written notice of such removal.
B.
Every transaction conducted by a pawnbroker, secondhand article and jewelry dealer in
which an article or articles are received through a pawn, purchase, or trade, or in which a pawn is
renewed, extended, voided, or redeemed, or for which a unique transaction number or identifier
is generated by their point-of-sale software is reportable except: The bulk purchase of new or
used articles from a merchant, manufacturer, or wholesaler having an established permanent
place of business, and the retail sale of said articles, provided the pawnbroker must maintain a
record of such purchase that describes each item, and must mark each item in a manner that
relates it to that transaction record.
5.52.040 Licensee- Daily Reports to Police- Receipt Required—Pawnbroker
and junk dealer to keep record—Information required—Police inspection
Every
person licensed as a pawnbroker or junk dealer under this chapter shall keep a book in which
shall be written legibly in ink and, at the time of the purchase or taking of any goods, article or
thing, an accurate account and description in the English language of the goods, article or thing
purchased or pledged, the consideration paid therefore, the time of purchasing or taking the
same, and the name, residence, and description of the person selling or pledging the same. When
any watch is purchased or taken, the person so licensed shall also write in such book the name of
the maker thereof and its number. When jewelry or gold or silver articles of any kind are
purchased or taken, such person shall note in said book all letters and marks inscribed, engraved
or cut thereon. The book provided for in this section shall at all reasonable times be open to the
inspection of the police department.
A.
Pawnbrokers and secondhand article and jewelry dealers must submit every reportable
transaction to the police department daily in the following manner. Pawnbrokers and secondhand
article and jewelry dealers must provide to the police department all required information
pursuant to State Statute and this chapter, by transferring the required information from their
computer to the web server via modem designated by the Janesville Police Department. All
required records must be transmitted completely and accurately after the close of business each
day in accordance with standards and procedures established by the police department using
procedures that address security concerns of the pawnbroker or secondhand article and jewelry
dealer and the police department. The pawnbroker or secondhand article and jewelry dealer must
display a sign of sufficient size in a conspicuous place on the premises, which informs all patrons
that all transactions are reported daily to the police department.
B.
If a pawnbroker or secondhand article and jewelry dealer is unable to successfully
transfer the required reports by modem, the pawnbroker or secondhand article and jewelry dealer
must provide the police department with printed copies of all reportable transactions by 12:00
noon the next business day.
C.
If the problem is determined to be in the pawnbroker’s or secondhand article and jewelry
dealer’s system and is not corrected by the close of the first business day following the failure,
the pawnbroker or secondhand article and jewelry dealer must provide the required reports as
detailed in State Statute and this chapter, and shall be charged a daily reporting failure fee of
$10.00 until the error is corrected; or, if the problem is determined to be outside the
pawnbroker’s or secondhand article and jewelry dealer’s system, the pawnbroker or secondhand
article and jewelry dealer must provide the required reports pursuant to State Statute and
resubmit all such transactions via modem when the error is corrected.
D.
Regardless of the cause or origin of the technical problems that prevented the
pawnbroker or secondhand article and jewelry dealer from uploading the reportable transactions,
upon correction of the problem, the pawnbroker or secondhand article and jewelry dealer shall
upload every reportable transaction from every business day the problem has existed.
E.
The provisions of this section notwithstanding, the police department may, upon
presentation of extenuating circumstances, delay the implementation of the daily reporting
penalty.
F.
Every licensee must provide a receipt to the customer identified in every reportable
transaction and must maintain a duplicate of that receipt for three (3) years. The receipt must
include at least the following information:
1.
The name, address, and telephone number of the licensed business.
2.
The date and time the item was received by the licensee.
3.
Whether the item was pawned or sold, or the nature of the transaction.
4.
An accurate description of each item received including, but not limited to, any
trademark, identification number, serial number, model number, brand name, or other identifying
mark on such an item.
5.
The signature or unique identifier of the licensee or employee that conducted the
transaction.
6.
The amount advanced or paid.
7.
The monthly and annual interest rates, including all pawn and second hand article
dealers fees and charges.
8.
The last regular day of business by which the item must be redeemed by the
customer without risk that the item will be sold, and the amount necessary to redeem the item on
that date.
9.
The full name, current residence address, current residence telephone number, and
date of birth of the pledger or seller.
10.
The identification number and state of issue from any of the following forms of
identification of the seller:
a.
Current valid Wisconsin driver's license.
b.
Current valid Wisconsin identification card.
c.
Current valid photo driver's license or identification card issued by another
state or province of Canada.
11.
Description of the customer or seller including approximate sex, height, weight,
race, color of eyes and color of hair.
12.
The signature of the customer or seller.
5.52.050 Licensee—Record keeping duties-Information required-Digital photo
requirement
It shall be the duty of every person licensed under this chapter to keep a book, at
all times available to the police department, giving an accurate account and description of each
and all of the articles and things purchased or taken during each day, the consideration paid
therefore, the precise time of purchase or taking and the name, residence and description of the
- Records required.
person or persons from whom such purchases were made.
A.
At the time of any reportable transaction other than renewals, extensions, redemptions or
confiscations, every licensee must immediately record, in English, the following information in a
computerized record approved by the police department:
1.
A complete and accurate description of each item including, but not limited to,
any trademark, identification number, serial number, model number, brand name, or other
identifying mark or such an item.
2.
The purchase price, amount of money loaned upon, or pledged therefore.
3.
The maturity date of the transaction and the amount due, including monthly and
annual interest rates and all pawn fees and charges.
4.
Date, time and place the item of property was received by the licensee, and the
unique alpha and/or numeric transaction identifier that distinguishes it from all other transactions
in the licensee's records.
5.
Full name, current residence address, current residence telephone number, date of
birth and accurate description of the person from whom the item of the property was received,
including: sex, height, weight, race, color of eyes and color of hair.
6.
The identification number and state of issue from any of the following forms of
identification of the seller:
a. Current Wisconsin driver's license.
b. Current Wisconsin identification card.
c. Current valid photo identification card issued by another state or province
of Canada.
7.
The signature of the person identified in the transaction
B.
The licensee must also take a color, digitized photograph of every item pawned or sold
that does not have a unique serial or identification number permanently engraved or affixed,
excluding only electronic media. One group photo shall suffice for mass items such as several
coins acquired in one transaction. If a photograph is taken, it must be at least two inches in length
by two inches in width and must be maintained in such a manner that the photograph can be
readily matched and correlated with all other records of the transaction to which they relate. Such
photographs must be available to the chief of police, or the chief’s designee, upon request. Items
photographed must be accurately depicted and submitted as digital images, in a format specified
by the issuing authority, electronically cross-referenced to the reportable transaction they are
associated with. Entries of required digital images shall be retained a minimum of 90 days.
5.52.060 Licensee—Restricted purchases
No person or firm licensed under this
chapter shall purchase or take any goods, article or thing from any person under sixteen years of
age or from any intoxicated person.
5.52.070 Labels Required-Holding Period-Police order to hold property-Police to
seize property when
The chief of police may cause any goods, article or thing purchased or
pledged which he has reason to believe was sold or pledged by some person other than the lawful
owner thereof to be held for the purpose of identification by its lawful owner for such reasonable
time as he may deem necessary.
A.
Licensees must attach a label to every item at the time it is pawned, purchased or
received in inventory from any reportable transaction. Permanently recorded on this label must
be the number or name that identifies the transaction in the shop's records, the transaction date,
the name of the item and the description or the model and serial number of the item as reported
to the police department, whichever is applicable. Labels shall not be re-used.
B.
Any item deposited for security shall be kept on the premises for safe keeping for not less
than 30 days after the date of purchase or receipt unless the person known by the pawnbroker to
be the lawful owner of the article redeems it. Any item purchased or received by a secondhand
article dealer or secondhand jewelry dealer shall be kept on the premises of safekeeping for not
less than 30 days after the date of purchase orreceipt.
C.
During the period the article shall be held separate from saleableinventory and may not
be altered in any manner. The pawnbroker, second hand article dealer, or secondhand jewelry
dealer shall permit any law enforcement officer to inspect the article during this period.
D.
An investigative hold may be placed on an item when a law enforcement official from
any law enforcement agency notifies a licensee not to sell an item. The item must not be sold or
removed from the premises. The investigative hold shall be confirmed in writing by the
originating agency within seventy-two (72) hours and will remain in effect for fifteen (15) days
from the date of initial notification, or until the investigative order is canceled, or until an order
to hold/confiscate is issued, whichever comes first.
E.
An order to hold may be placed on an item whenever the chief of police, or the chief's
designee, notifies a licensee not to sell an item, the item must not be sold or removed from the
licensed premises until authorized to be released by the chief or the chief's designee. The order to
hold shall expire ninety (90) days from the date it is placed unless the chief of police or the
chief's designee determines the hold is still necessary and notifies the licensee in writing.
F.
An order to confiscate may be placed on an item if the item is identified as stolen or
evidence in a criminal case, the chief or chief's designee may physically confiscate and remove it
from the shop, pursuant to a written order from the chief or the chief's designee, or place the item
on hold or extend the hold and leave it in the shop.
G.
When an item is confiscated, the person doing so shall provide identification upon
request of the licensee, and shall provide the licensee the name and phone number of the
confiscating agency and investigator, and the case number related to the confiscation.
H.
When an order to hold/confiscate is no longer necessary, the chief of police or chief's
designee shall so notify the licensee.
5.52.080 License—Business area requirements
No application for a license
pursuant to this chapter shall be issued and no person, firm or corporation shall operate any
business for which a license is required by this chapter unless the area used in such business,
including any storage area, is enclosed by a fence, wall or other structure which shall block from
view all activities of said business that could be viewed by a person standing on the ground near
the property on which such business is located; however, windows may be placed in said fence,
wall or other structure. In any event, every such fence, wall or other structure shall be at least
seven feet in height.
5.52.090 Violation—Penalty
Any person, firm or corporation violating any of the
provisions of this chapter shall, upon conviction therefore in court, have his license revoked and
shall further be punished by a fine of not less than ten dollars nor more than one hundred dollars
and costs. In default of the payment of the fine and costs, the violator shall be imprisoned in the
county jail until such fine and costs are paid, not to exceed sixty days. Each day’s violation
constitutes a separate offense. This penalty shall be independent and exclusive of the right of the
council to revoke any license or permit.
SECTION II.
Section 5.04.010 N. of the Code of General Ordinances of the City of Janesville
is hereby amended to read as follows:
N.
Junk dealer, secondhand dealer, secondhand jewelry dealer, pawnbroker, flea market,
secondhand article dealer mall or related activity as defined in applicable state law (Sections
5.52.010—5.52.080) (See s. 134.71 for definitions and s. 134.71(11) for fees) (For bond see s.
134.71(7), et al.)
1.
Pawnbroker’s license $210.00 per year with $5001,000 bond
2.
Secondhand article dealer’s license $27.50 per year with $500 $1,000 bond
3.
Secondhand jewelry dealer’s license $30.00 per year with $5001,000 bond
4.
Secondhand article dealer mall license $165 per year with required bond
5.
Flea Market license $165 per year with required bond
6.
All other secondhand dealers $27.50 per year with $500 bond
7.
Junk dealers (City definition) $27.50 per year with $500 bond
Such fee shall not be apportioned, regardless of the date on which such license may be issued.
ADOPTED: Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
____________
Assistant City Attorney
Proposed by: Police Department
Prepared by: Police Department & Assistant City
Attorney