Loading...
#8 Schedule public hearing to amend regulations for junk dealers, second-hand dealers & pawnbrokers (File Ord. #2011-476) POLICE DEPARTMENT MEMORANDUM January 28, 2011 TO: City Council FROM: David J. Moore, Chief of Police 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. 2011-476) Summary As proposed, Ordinance 2011-476 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 2011-476 be introduced and scheduled for a public hearing on February 28, 2011. City Manager Recommendation th The amended ordinance is being introduced on February 14and scheduled for the second public hearing on February 28, 2011. Council members Brunner and Steeber initially requested researching an ordinance on regulating pawnshops. Analysis Ordinance 2011-476 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 will allow for easier access to the information that the Janesville Police Department receives. 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. File Ordinance 2011-476 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. 2011 - 476 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 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 issued from the City under this Chapter. 5.52.011 Definitions When used in this chapter the following words shall mean: A. “Article” means any of the following articles: 1. Audiovisual equipment. 2. Bicycles. 3. China 4. Computers, laptops, printers, software and computer supplies. 5. Computer toys, gaming systems and games. 6. Crystal. 7. Electronic equipment. 8. Fur coats and other fur clothing 9. Ammunition and knives. 10. Microwave ovens. 11. Office equipment 12. Pianos, organs, guitars and other musical instruments. 13. Compact Discs, Audiotapes, Videotapes, DVDs, GPS Units, and other optical media recording or replaying devices. 14. Silverware and flatware. 15. Small electrical appliances. 16. Telephones. 17. Power tools and pneumatic tools. 18. Firearms. 19. Paper currency and coins. 20. Sports equipment. 21. Jewelry B. “Pawn Broker” 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 at a stipulated price. 1. To the extent that a pawnbroker’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 when engaging in any of the following: a. Any transaction at an occasional garage or yard sale or an estate sale. 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. C. “Second Hand Article Dealer” means any person, other than an auctioneer, who engages in the business of purchasing or selling second hand articles in the same or substantially similar form at a subsequent time. 1. To the extent that a secondhand article 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 secondhand article dealer when engaging in any of the following: a. Any transaction at an occasional garage or yard sale or an estate sale. 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. D. “Secondhand Jewelry Dealer” means any person, other than an auctioneer, who engages in the business of any transaction consisting of purchasing, selling, receiving or exchanging secondhand jewelry. 1. To the extent that a 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 secondhand jewelry dealer when engaging in any of the following: a. Any transaction at an occasional garage or yard sale or an estate sale. b. Any transaction between a buyer of a new jewelry and the person who sold the jewelry when new which involves any of the following: 1. The return of the jewelry. 2. The exchange of the jewelry for different, new jewelry. c. Any transaction as a purchaser of secondhand jewelry from a charitable organization if the secondhand jewelry was a gift to the charitable organization. d. Any transaction as a seller of secondhand jewelry which the person bought from a charitable organization if the secondhand jewelry was a gift to the charitable organization. 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, residence addresses for the 5-year period prior to the date of the application, and all states where the applicant has previously resided. 2. The name and addresses 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 of the manager or proprietor of the business. 5. Any other information that the clerk may reasonably require. 6. A statement as to whether the applicant, including an individual, 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. 7. Whether the applicant or any other person listed above has ever used or been known by a name other than the applicant, individual, manager or proprietor’s name, and if so, the name or names used and information concerning dates and places used. 8. 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 applicant and manager or proprietor. C. The city may grant a license if all of the following apply: 1. The applicant or proprietor 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 pawnbrokers 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. 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 dealer, or secondhand 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- 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, secondhand article dealers, and secondhand jewelry dealers must submit every reportable transaction to the police department within 48 hours, excluding legal holidays, in the following manner. Pawnbrokers, secondhand article dealers, and secondhand 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 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. Each pawnbroker, secondhand article dealers, and secondhand jewelry must display a sign of sufficient size in a conspicuous place on the premises which informs all patrons that all transactions are reported to the police department. B. If a pawnbroker, or secondhand article dealer, or secondhand jewelry dealer is unable to successfully transfer the required reports by modem within 48 hours, excluding legal holidays, 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, secondhand article, or secondhand jewelry dealer’s system and is not corrected by the close of the first business day following the failure, the pawnbroker, secondhand article, or secondhand 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, secondhand article dealer, or secondhand jewelry dealer’s system, the pawnbroker, secondhand article dealer, or secondhand 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, secondhand article dealer, or secondhand jewelry dealer from uploading the reportable transactions, upon correction of the problem, the pawnbroker, secondhand article dealer, and secondhand 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 government entity. 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. 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. 3. 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. 4. 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 government entity. 5. 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. 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 eighteen 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 14 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 may, upon conviction therefore in court, have his their 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: Council Member Brunner / Council Member Steeber Prepared by: Police Department & Assistant City Attorney