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HomeMy WebLinkAbout1997-021 Council OrdinancesCouncil Member Kuether introduced the following ordinance and moved its adoption: CITY OF LINO LAKES COUNTY OF ANOKA ORDINANCE NO. 21 - 97 AN ORDINANCE ADOPTING AN AUTOMATED PAWN SYSTEM ORDINANCE The City Council of the City of Lino Lakes, Anoka County, Minnesota, does ordain: Chapter 614, Pawnbrokers/Precious Metal Dealers/Secondhand Goods Dealers ordinance of the City Code was adopted by the Lino Lakes City Council on October 3, 1997. Following is a summary of the provisions of that ordinance as adopted. A complete copy of the ordinance is available for public review at City Hall, 1189 Main Street, Lino Lakes, Minnesota, between the hours of 7:30 a.m. and 5:00 p.m., Monday through Friday. The ordinance shall take effect and be in force 30 days following its publication. CHAPTER 614 ADOPTING AN AUTOMATED PAWN SYSTEM SUMMARY ORDINANCE 614.01 Purpose 614.02 Definitions 614.03 License Required 614.04 License Classifications 614.05 License Fee 614.06 Investigation Fee 614.07 Expiration of License 614.08 Application Required 614.09 Bond Required 614.10 Records Required 614.11 Daily Reports to Police 614.12 Receipt Required 614.13 Redemption Period 614.14 Holding Period 614.15 Police Order to Hold Property 614.16 Inspection of Items 614.17 Label Required 614.18 Prohibited Acts 614.19 Denial, Suspension or Revocation 614.20 Business at Only One Place 614.21 Separability ORDINANCE NO. 21 - 97 Page -2- This ordinance shall become effective immediately upon its passage and publication. This ordinance was adopted by the Lino Lakes City Council on this 13th day of October, 1997. Jo L. Landers, Mayor ATTEST: P"ter n G. Anderson, Clerk -Treasurer Motion for the adoption of the foregoing ordinance was seconded by Council Member Neal and upon vote being taken thereon, the following voted in favor thereof: Bergeson, Kuether, Landers, Neal. The following voted against same: none, Council Member Lyden was absent. Whereupon said ordinance was declared duly passed and adopted. Council Member Kuether introduced the following ordinance and moved for its adoption: CITY OF LINO LAKES County of Anoka ORDINANCE NO. 21-97 AN ORDINANCE ADOPTING AN AUTOMATED PAWN SYSTEM ORDINANCE The City Council of the City of Lino Lakes, Anoka County, Minnesota does ordain: CHAPTER 614. PAWNBROKERS/PRECIOUS METAL DEALERS/SECONDHAND GOODS DEALERS 614.01. PURPOSE The City Council finds that use of services provided by pawnbrokers provides an opportunity for the commission of crimes and their concealment because pawn businesses have the ability to receive and transfer property stolen by others easily and quickly. The City Council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers. The City Council further finds that the pawn industry has outgrown the city's current ability to effectively or efficiently identify criminal activity related to pawn shops. The purpose of this ordinance is to prevent pawn businesses from being used as facilities for the commission of crimes and to assure that such businesses comply with basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the citizens of the city. To help the Police Department better regulate current and future pawn businesses, decrease and stabilize costs associated with the regulation of the pawn industry, and increase identification of criminal activities in the pawn industry through the timely collection and sharing of pawn transaction information, this ordinance also implements and establishes the required use of the Automated Pawn System (APS). 614.02. DEFINITIONS When used in this article, the following words shall mean: Issuing Authority. The City of Lino Lakes Item Containing Precious Metal. An item made in whole or in part of metal and containing more than one (1) percent by weight of silver, gold, or platinum. Minor. Any natural person under the age of 18 years. Pawnbroker. Any natural person, partnership or corporation, either as principal, or agent or employee thereof, who loans money on deposit or pledge of personal property, or other valuable thing, or who deals in the purchasing 1 of personal property, or other valuable thing on condition of selling the same back again at a stipulated price, or who loans money secured by chattel mortgage on personal property, taking possession of the property or any part thereof so mortgaged. To the extent that a pawnbroker's business includes buying personal property previously used, rented or leased, or selling it on consignment, the provisions of this ordinance shall be applicable. Precious Metal Dealer. Any person engaging in the business of buying coins or secondhand items containing precious metal, including, but not limited to, jewelry, watches, eating utensils, candlesticks, and religious and decorative objects. Persons conducting the following transactions shall not be deemed to be Precious Metal Dealers: (a) Transactions at occasional "garage" or "yard" sales, or estate sales or farm auctions, except that precious metal dealers must comply with the requirements of Minnesota Statutes, Section 325F.734 to 325F.742, for these transactions. (b) Securities transactions regulated by Minnesota Statutes, Chapter 80A. (c) Transactions regulated by the Federal Commodity Futures Commission Act. (d) Transactions involving the purchase of precious metal grindings, filings, slag, sweeps, scraps or dust from an industrial manufacturer, dental lab, dentist, or agent thereof. (e) Transactions involving the purchase of photographic film, such as lithographic and x-ray film, or silver residue to flake recovered in lithographic and x-ray film processing. (f) Transactions involving bullion or ingots. (g) Transactions in which the secondhand item containing precious metal is exchanged for a new item containing precious metal and the value of the new item exceeds the value of the secondhand item, except that a person who is a precious metal dealer by engaging in a transaction which is not exempted by this section must comply with the requirements of Minnesota Statutes, Section 325F.734 to 325F.742. (h) Transactions between precious metal dealers if both dealers are licensed under Minnesota Statutes, Section 325F.733, or if the seller's business is located outside of the state and the item is shipped from outside the state to a dealer licensed under Minnesota Statutes, Section 325F.733. Precious Metals. Silver, gold or platinum. Secondhand Goods Dealers. Any person engaging in the business of buying and/or selling secondhand items, except: (a) Precious metal dealers and pawn brokers; (b) Persons conducting transactions at occasional "garage" or "yard" sales, or estate sales or farm auctions; (c) Repurchasers of agricultural machinery or implements pursuant to Minnesota Statutes, Section 325E.05 or 325E.06: (d) Recyclers, including but not limited to motor oil, aluminum, iron, glass, plastics and paper; 2 (e) Dealers of used motor vehicles; (f) Repurchasers of returned merchandise after initial retail sale from the repurchaser; (g) Dealers of secondhand clothing and linens except that dealers of secondhand bedding must comply with Minnesota Statutes, Sections 325F.25 through 325F.34; (h) Dealers of wire and cable regulated under Minnesota Statutes, Section 325E.21; (i) Persons making occasional private purchases and sales of secondhand goods. (j) Dealers of secondhand books, magazines, video or audio tapes, compact disks, films or electronic game cartridges; (k) Charitable organizations that take used items for no compensation; (1) Dealers of furniture; (m) The sale of goods at an auction held by a licensed auctioneer; (n) The business of buying or selling only those secondhand goods taken as part or full payment for new goods, and where such business is incidental to and not the primary business of a person; and (o) The bulk sale of property from a merchant, manufacturer, or wholesaler having an established place of business or of goods sold at open sale from bankrupt stock. Class A Secondhand Goods Dealer. Any person who annually engages in 1,800 or more transactions involving the buying and/or selling of secondhand items. Class B Secondhand Goods Dealer. Any person who annually engages in more than sixty but fewer than 1,800 transactions involving the buying and/or selling of secondhand items. Class C Secondhand Goods Dealer. Any person who annually engages in 60 or fewer transactions involving the buying and/or selling of secondhand items. Receive. To purchase, accept for sale on consignment, broker, or acquire in trade for an item of equal or lesser value, any tangible personal property previously owned, used, rented, or leased. Transaction. The buying and/or selling of any item which has a serial number or an Operation ID number or for which compensation of $25 or more is paid. Each such item acquired from and sold to the same customer at the same time shall be considered a separate transaction. Reportable Transaction. (Pawnbroker) (Precious Metal Dealer) Every transaction conducted by a pawnbroker or Precious Metal Dealer in which merchandise is received through a pawn, purchase, consignment or trade, or in which a pawn is renewed, extended or redeemed, is reportable except: (1) The bulk purchase or consignment of new or used merchandise from a merchant, manufacturer or wholesaler having an established 3 permanent place of business, and the retail sale of said merchandise, provided the pawnbroker must maintain a record of such purchase or consignment which describes each item, and must mark each item in a manner which relates it to that transaction record. (2) Retail or wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption periods have expired. Reportable Transaction. (Secondhand Dealer) Every transaction conducted by a secondhand dealer in which merchandise is received is reportable except: (1) The bulk purchase or consignment of new or used merchandise from a merchant, manufacturer, or wholesaler having an established permanent place of business, and the retail sale of said merchandise, provided the secondhand dealer must maintain a record of such purchase or consignment which described each item, and must mark each item in a manner which relates to that transaction record. (2) Retail or wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption periods have expired. (3) The sale of secondhand goods where all of the following are present: (i) the sale is held on property occupied as a dwelling by the seller or owned, rented, or leased by a charitable or political organization; (ii) the items offered for sale are owned by the occupant; (iii) that no sale exceeds a period of 72 consecutive hours; (iv) that no more than two sales are held in any twelve month period; (v) that none of the items offered for sale shall have been purchased for resale or received on consignment for purpose of resale. (4) Transactions conducted by a pawnbroker licensed under 614. (5) Receipt of secondhand books or magazines. (6) The receipt of secondhand furniture and kitchen or laundry appliances. For the purposes of this provision, the term "furniture" does not include televisions, stereos, computers, or other electronic equipment. (7) The receipt of secondhand clothing and shoes except for any item generally associated with the playing of or as equipment for any sporting event or recreational activity. (8) The sale of goods at an auction held by a licensed auctioneer. 4 Billable transaction. (Pawnbroker) Every reportable transaction conducted by a pawnbroker except renewals, redemptions or extensions of existing pawns on items previously reported and continuously in the licensee's possession is a billable transaction. Billable transaction. (Secondhand Dealer) Every reportable transaction conducted by a secondhand dealer. 614.03 License required. No person shall engage in the business of pawnbroker at any location without a pawnbroker license for that location. No pawnbroker license may be transferred to a different location or a different person. Issuance of a license under this chapter shall not relieve the licensee from obtaining any other licenses required to conduct business at the same or any other locations. 614.04. License classifications. (a) Licenses renewed under provisions of this chapter shall be classified according to the number of billable transactions submitted annually to the Lino Lakes Police Department during the twelve (12) month period ending September 30 prior to renewal. The classifications shall be: Class A - Licensees that submitted four hundred (400) or more transactions. Class B - Licensees that submitted fewer than four hundred (400) transactions. (b) All new licenses issued pursuant to this chapter after January 1, 1997, shall be deemed to be Class A licenses and subject to all applicable fees and regulations. 614.05. License fees. (a) The annual license fees for Pawnbrokers and Precious Metal Dealer licenses issued under this chapter shall be as follows: Class A - Ten Thousand dollars ($10,000.00). Class B - Seven Thousand dollars ($7,000.00). (b) Class A Secondhand Goods Dealer. The annual fee shall be $720.00. (c) Class B Secondhand Goods Dealer. The annual fee shall be $105.00. (d) Class C Secondhand Goods Dealer. No annual fee. The annual license fee shall be payable semi-annually in accordance with procedures established by the Finance Director. (b) The billable transaction license fee shall be classified according to the medium by which daily reports required by 614.10 are submitted to the Lino Lakes Police Department. These classifications shall be as follows: Modem - Required of all Class A licensees, optional for Class B licensees. Manual - Required of all Class B licensees who do not fulfill Class A reporting requirements. 5 (c) The billable transaction license fee shall reflect the cost of processing transactions from the respective classifications and other related regulatory expenses as determined by the City Council, and shall be reviewed and adjusted, if necessary, at least every six (6) months. Licensees shall be notified in writing thirty (30) days before any adjustment is implemented. The billable transaction fee for modem transactions shall not exceed the billable transaction fee for manual transactions. (d) Billable transaction fees shall be billed monthly and are due and payable within thirty (30) days. Failure to do so is a violation of this chapter. 614.06. Investigation fee. (a) An applicant for a new license under this chapter, or for the renewal of an existing license that is more than six (6) months past due, shall deposit one thousand five hundred dollars ($1,500.00) with the City Clerk/Treasurer at the time an original application is submitted to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to assure compliance with this ordinance. If the investigation process is conducted solely within the State of Minnesota, the fee shall be seven hundred fifty dollars ($750.00) and the remainder of the deposit shall be returned to the applicant upon completion of the investigation. If the investigation is conducted outside the State of Minnesota, the issuing authority may recover the actual investigation costs not exceeding twenty thousand dollars ($20,000.00). 614.07. Expiration of license. All licenses shall expire on January 1st. 614.08. Application required. (a) (Contents.) An application form provided by the City Clerk must be completed by every applicant for a new license or for renewal of an existing license. Every new applicant must provide all the following information: (1) If the applicant is a natural person: a. The name, place and date of birth, street resident address, and phone number of applicant. b. Whether the applicant is a citizen of the United States or resident alien. c. Whether the applicant has ever used or has 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. d. The name of the business if it is to be conducted under a designation, name, or style other than the name of the applicant and a certified copy of the certificate as required by Minnesota Statutes, Section 333.01. e. The street address at which the applicant has lived during the preceding five (5) years. 6 f. The type, name and location of every business or occupation in which the applicant has been engaged during the preceding five (5) years and the name(s) and address(es) of the applicant's employer(s) and partner(s), if any, for the preceding five (5) years. g Whether the applicant has ever been convicted of a felony, crime, or violation of any ordinance other than a traffic ordinance. If so, the applicant must furnish information as to the time, place, and offense of all such convictions. h. The physical description of the applicant. i. Applicant's current personal financial statement and true copies of the applicant's federal and state tax returns for the two (2) years prior to application. If the applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required in a. through h. of subdivision (1) of this section. (2) If the applicant is a partnership: �.. a. The name(s) and address(es) of all general and limited partners and all information concerning each general partner required in subdivision (1) of this section. b. The name(s) of the managing partner(s) and the interest of each partner in the licensed business. c. A true copy of the partnership agreement shall be submitted with the application. If the partnership is required to file a certificate as to a trade name pursuant to Minnesota Statutes, Section 333.01, a certified copy of such certificate must be attached to the application. d. A true copy of the federal and state tax returns for partnership for the two (2) years prior to application. e. If the applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required in a. through h. of subdivision (1) of this section. (3) If the applicant is a corporation or other organization: a. The name of the corporation or business form, and if incorporated, the state of incorporation. 7 b. A true copy of the Certificate of Incorporation, Articles .._ of Incorporation or Association Agreement, and By-laws shall be attached to the application. If the applicant is a foreign corporation, a Certificate of Authority as required by Minnesota Statutes, Section 303.06, must be attached. c. The name of the manager(s) or other person(s) in charge of the business and all information concerning each manager, proprietor, or agent required in a. through h. of subdivision (1) of this section. d. A list of all persons who control or own an interest in excess of five (5) percent in such organization or business form or who are officers of the corporation or business form and all information concerning said persons required in subdivision (1) above. This subdivision (d), however, shall not apply to a corporation whose stock is publicly traded on a stock exchange and is applying for a license to be owned and operated by it. (4) For all applicants: a. Whether the applicant holds a current pawnbroker, precious metal dealer or secondhand goods dealer license from any other governmental unit. b. Whether the applicant has previously been denied, or had revoked or suspected, a pawnbroker, precious metal dealer, or secondhand goods dealer license from any other governmental unit. c. The location of the business premises. d. If the applicant does not own the business premises, a true and complete copy of the executed lease. e. The legal description of the premises to be licensed. f. Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid, and if not paid, the years and amounts that are unpaid. g. Whenever the application is for premises either planned or under construction or undergoing substantial alternation, the application must be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. h. Such other information as the City Council or issuing authority may require. 8 (b) Registration of Class C Secondhand Goods Dealers. Persons _engaged in the business of a Class C secondhand goods dealer are exempt from the licensing requirements of this chapter, but shall register with the Chief of Police on forms provided for by the City. Such �- registration shall be on-going except that a person shall file a new registration upon a change of ownership, management, telephone number or location of the business. (c) New manager. When a licensee places a manager in charge of a business, or if the named manager(s) in charge of a licensed business changes, the licensee must complete and submit the appropriate application, on forms provided by the City Clerk, within fourteen (14) days. The application must include all appropriate information required in Section 614.08. (1) Upon completion of an investigation of a new manager, the licensee must pay an amount equal to the cost of the investigation to assure compliance with this ordinance. If the investigation process is conducted solely within the State of Minnesota, the fee shall be five hundred dollars ($500.00). If the investigation is conducted outside the State of Minnesota, the issuing authority may recover the actual investigation costs not exceeding ten thousand dollars ($10,000.00). (d) Application execution. All applications for a license under this ordinance must be signed and sworn to under oath or affirmation by the applicant. If the application is that of a natural person, it must be signed and sworn to by such person; if that of a corporation, by an officer thereof; if that of a partnership, by one of the general partners; and if that of an unincorporated association, by the manager or managing officer thereof. (e) Investigation. The police license investigator must investigate into the truthfulness of the statements set forth in the application and shall endorse the findings thereon. The applicant must furnish to the police license investigator such evidence as the Investigator may reasonably require in support of the statements set forth in the application. (f) Public hearing. Pawnbroker, Precious Metal Dealer and Class A Secondhand Goods Dealer. The City Council shall conduct a hearing on the license application within a reasonable period following receipt of the issuing authorities report and recommendation regarding the application. At least 10 days in advance of the hearing on the application, the issuing authority shall call as notice of a hearing to be published in the official newspaper for the city, setting forth the day, time and place of the hearing, the name of the applicant, the premises where the business is to be conducted, and the type of license which is sought. At the hearing, opportunity shall be given to any person to be heard for or against the granting of the license. Additional hearings on the application may be held if the City Council deems additional hearings necessary. After the hearing or hearings on the application, the council may, in its discretion, grant or deny the application. 9 (g) Class B Secondhand Goods Dealer. A Class B Secondhand Goods �-- Dealer license shall be issued by the City Clerk upon a positive recommendation from the Chief of Police. In the event the Chief of Police recommends denial, the application shall be submitted to the City Council for a disposition in the same manner as an application for a Class A Secondhand Goods Dealer license. Failure of the City Clerk to grant the application or submit it to the Council within thirty days after receipt of the application by the Clerk shall be deemed a granting of the license. (h) Persons ineligible for a license. No licenses under this ordinance will be issued to an applicant who is a natural person, a partnership if such applicant has any general partner or managing partner, a corporation or other organization if such applicant has any manager, proprietor or agent in charge of the business to be licensed, if the applicant: (1) Is a minor at the time that the application is filed; (2) Has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, Subd. 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a licensee under this chapter as prescribed by Minnesota Statutes, Section 364.03, Subd. 3; or (3) Is not of good moral character or repute. (4) The application is incomplete or the investigation reveals that the applicant has not been truthful in the application process or is otherwise not qualified for a license. 614.09. Bond required. Before a license will be issued, every applicant must submit a ten thousand dollar ($10,000.00) bond on the forms provided by the City Clerk. All bonds must be conditioned that the principal will observe all laws in relation to pawnbrokers, and will conduct business in conformity thereto, and that the principal will account for and deliver to any person legally entitled any goods which have come into the principal's hand through the principal's business as a pawnbroker, or in lieu thereof, will pay the reasonable value in money to the person. The bond shall contain a provision that no bond may be canceled except upon thirty (30) days written notice to the city, which shall be served upon the City Clerk. 614.10. Records required. At the time of any reportable transaction other than renewals, extensions or redemptions, every licensee must immediately record in English the following information by using ink or other indelible medium on forms or in a computerized record approved by the police license investigator. (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 on such an item. 10 (2) The purchase price, amount of money loaned upon, or pledged therefor. (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. (5) Full name, residence address, 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 valid Minnesota driver's license. b. Current valid Minnesota identification card. c. Current valid photo identification card issued by another state. (7) The signature of the person identified in the transaction. (8) Effective sixty (60) days from the date of notification by the police license investigator of acceptable video standards, but no sooner than October 1, 1997, the licensee must also take a color photograph or color video recording of: a. Each customer involved in a billable transaction. b. Every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed. If a photograph is taken, it must be at least two (2) inches in length by two (2) 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. The major portion of the photograph must include an identifiable front facial close-up of the person who pawned or sold the item. Items photographed must be accurately depicted. The licensee must inform the person that he or she is being photographed by displaying a sign of sufficient size in a conspicuous place in the premises. If a video photograph is taken, the video camera must zoom in on the person pawning or selling the item so as to include an identifiable close-up of that person's face. Items photographed by video must be accurately depicted. Video photographs must be electronically referenced by 11 time and date so they can be readily matched and correlated with all other records of the transaction to which they relate. The licensee must inform the person that he or she is being videotaped orally and by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed videotape for three (3) months. (9) Digitized photographs. Effective sixty (60) days from the date of notification by the police license investigator, but no sooner than October 1, 1997, Class A licensees must, and Class B licensees may, fulfill the color photograph requirements in section 614.10. (8) by submitting them as digital images, in a format specified by the issuing authority, electronically cross-referenced to the reportable transaction they are associated with. Notwithstanding the digital images may be captured from required video recordings, this provision does not altar or amend the requirements in subdivision 8. (10) Renewals, extensions and redemptions. For renewals, extensions and redemptions, the licensee shall provide the original transaction identifier, the date of the current transaction, and the type of transaction. (11) Inspection of records. The records must at all reasonable times be open to inspection by the Police Department or City Clerk's office. Data entries shall be retained for at least three (3) years from the date of transaction. Entries of required digital images shall be retained a minimum of ninety (90) days. 614.11. Daily reports to police. (a) Method. Licensees must provide to the Police Department the information required in section 614.10 (1) through (6), in writing, on forms approved by the business day following the date of the transaction. The licensee must display a sign of sufficient size, and in a conspicuous place in the premises, so as to inform all patrons that all transactions are reported to the Police Department daily. Effective sixty (60) days from the date of notification by the police license investigator, but no sooner than ninety (90) days after the police license investigator provides licensee with computerized record standards, licensees must submit every reportable transaction to the Police Department daily in the following manner: (1) Class A licensees must, and Class B licensees may, provide to the Police Department the information required in section 614.10 (1) through (6), by transferring it from their computer to the Police Department via modem. 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 issuing authority using a dial -callback protocol or other procedures that address security concerns of the licensees and the issuing authority. The licensee must display a sign of sufficient size, in a conspicuous place in the premises, which informs all patrons that all transactions are reported to the Police Department daily. 12 (2) Class B licensees who do not fulfill requirements of section 614.11(a) (1) must provide to the Police Department the information required in section 614.10 (1) through (6), in writing, on forms approved by the Police Department, by twelve o'clock noon the first business day following the date of the transaction. The licensee must display a sign of sufficient size, in a conspicuous place in the premises, which informs all patrons that all transactions are reported to the Police Department daily. (3) Class A and B secondhand dealers shall maintain records and provide those records to the Police Department pursuant to a records retention and reporting plan aprpoved by the Chief of Police prior to the issuance of a license. (4) Class C secondhand dealers shall report transactions to the Police Department on forms provided by the issuing authority. (b) Billable transaction fees. Licensees, regardless of class, will be charged for billable transactions at the current rate for the medium by which they were reported to the Police Department except: (1) If a Class A licensee, or a Class B licensee who has consistently reported via modem, is unable to successfully transfer the required reports by modem, the licensee must provide the Police Department printed copies of all reportable transactions along with the video tape(s) for that date, by twelve o'clock noon the next business day, and must be charged at the modem rate for billable transactions; (2) If the problem is determined to be in the licensee's system and is not corrected by the close of the first business day following the failure, the licensee must provide the required reports as detailed in 614.11(b) (1) , and must be charged at the modem rate for transactions through the close of the first business day following the failure, and at the manual rate for all subsequent billable transactions until the error is corrected; or (3) If the problem is determined to be outside the licensee's system, the licensee must provide the required reports in detail in 614.11(b) (1), and will be billed at the modem rate for billable transactions until the error is corrected. (4) If a Class A licensee, or a Class B licensee who has consistently reported via modem, is unable to capture, digitize or transmit the photographs required in section 614.10 (8) and (9), the licensee must immediately take all required photographs with a still camera, immediately develop the pictures, cross-reference the photographs to the correct transaction, and deliver them to the Police Department by twelve o'clock noon the next business day. Billable transactions will be charged at the modem rate 13 day following the failure, and at the manual rate for all subsequent billable transactions until the error is Corrrrtndactions through the close of the first business (5) Second and subsequent occurrences of circumstances detailed in section 614.11(b), (1), (2) or (4), within any six (6) consecutive months, will be charged at the manual rate for billable transactions until the error is corrected. (6) Section 614.11(b) (1) through (5) notwithstanding, the police license investigator may, upon presentation of extenuating circumstances, extend the period that a qualifying licensee is billed at the modem rate for billable transactions. 614.12. Receipt required. Every licensee must provide a receipt to the party 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 fees and charges. (8) The last regular day of business by which the item must be redeemed by the pledger without risk that the item will be sold, and the amount necessary to redeem the pawned item on that date. (9) The full name, residence address, 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 Minnesota driver's license. b. Current valid Minnesota identification card. 14 c. Current valid photo driver's license or identification card issued by another state. (11) Description of the pledger including approximate sex, height, weight, race, color of eyes and color of hair. (12) The signature of the seller or pledger. (13) All printed statements required by State Statute 325J.04 subdivision 2, or any other applicable statutes. 614.13. Redemption period. Any person pledging, pawning or depositing an item for security must have a minimum of ninety (90) days from the date of that transaction to redeem the item before it may be forfeited and sold. During the ninety (90) day holding period, items may not be removed from the licensed location except as provided in section 614.20. Licensees are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued or, to any person identified in a written and notarized authorization to redeem the property identified in the receipt, or to a person identified in writing by the pledger at the time of the initial transaction and signed by the pledger, or with approval of the police license investigator. Written authorization for release of property to persons other than original pledger must be maintained along with original transaction record in accordance with 614.10(10). 614.14. Holding period. Any item purchased by a licensee must not be sold or otherwise transferred for thirty (30) days from the date of the transaction. An individual may redeem an item seventy-two (72) hours after the item was received on deposit, excluding Sundays and legal holidays. 614.15. Police order to hold property. (a) Investigative hold. Whenever a law enforcement official from any 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, pursuant to 614.15 (b) , whichever comes first. (b) Order to hold. 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. (c) Order to confiscate. If an item is identified as stolen or evidence in a criminal case, the Chief or Chief's designee may: 15 (1) Physically confiscate and remove it from the shop, `- pursuant to a written order from the Chief or the Chief's designee, or (2) Place the item on hold or extend the hold as provided in 614.15(b), and leave it in the shop. 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. When an order to hold/confiscate is no longer necessary, the Chief of Police, or Chief's designee shall so notify the licensee. 614.16. Inspection of items. At all times during the terms of the license, the licensee must allow the police license investigator or his designee(s) to enter the premises where the licensed business is located, including all off-site storage facilities as authorized in section 614.20, during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the items, ware and merchandise and records therein to verify compliance with this chapter or other applicable laws. 614.17. Label required. 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, and the date the item is out of pawn or can be sold, if applicable. Labels shall not be re -used. 614.18. Prohibited acts. (a) No person under the age of eighteen (18) years may pawn or sell or attempt to pawn or sell goods with any licensee, nor may any licensee receive any goods from a person under the age of eighteen (18) years. (b) No licensee may receive any goods from a person of unsound mind or an intoxicated person. (c) No licensee may receive any goods, unless the seller presents identification in the form of a valid driver's license, a valid State of Minnesota identification card, or current valid photo driver's license or identification card issued by the state of residency of the person from whom the item was received. (d) No licensee may receive any item of property that possesses an altered or obliterated serial number or "operation identification" number or any item of property that has had its serial number removed. 614.19. Denial, suspension or revocation. Any license under this chapter may be denied, suspended or revoked for one or more of the following reasons: 16 (1) The proposed use does not comply with the Lino Lakes City `.- Zoning Ordinance. (2) The proposed use does not comply with any health, building, building maintenance or other provisions of this Code of Ordinances or state law. (3) The applicant or licensee has failed to comply with one or more provisions of this chapter. (4) Fraud, misrepresentation or bribery in securing or renewing a license. (5) Fraud, misrepresentation or false statements made in the application and investigation for, or in the course of, the applicant's business. (6) Violation within the preceding five (5) years, of any law relating to theft, damage or trespass to property, sale of a controlled substance, or operation of a business. (7) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this chapter. (8) Except in the case of a suspension pending a hearing on revocation, a revocation or suspension by the city council shall be preceded by written notice to the licensee and the public hearing. The written notice shall give at least eight days notice of the time and place of the hearing and shall state the nature of the charges against the pawnbroker, precious metal dealer or secondhand goods dealer. The council may, without any notice, suspend any license pending a hearing on revocation for a period not exceeding 30 days. The notice may be served upon the pawnbroker, precious metal dealer or secondhand goods dealer by United States mail addressed to the most recent address of the business in the license application. (9) The following locations shall be ineligible for a license under this Chapter: (a) No license shall be granted or renewed for operation on any property on which taxes, assessments, or other financial claims of the State, County, School District, or City are due, delinquent or unpaid. In the event a suit has been commenced under Minnesota Statutes, Section 278.01-278.03, questioning the amount or validity of taxes, the City Council may on application waive strict compliance with this provision; no waiver may be granted, however, for taxes or any portion thereof which remain unpaid for a period exceeding one (1) year after becoming due. (b) No license shall be granted or renewed if the property on which the business is to be conducted is owned by a person who is ineligible for a license under any of the requirements of this Code, except that a property owner who is a minor or who has been convicted of a crime, other than a crime involving theft or falsehood, shall not make the premises ineligible under this subsection. 17 (c) Operations may be located only in General Business, Central Business, or Shopping Center Districts, unless the establishment is operating pursuant to the City Zoning Ordinance. No pawn shop shall be located within a distance of 1/2 mile of any other such business within the City of Lino Lakes as measured by a straight line. 614.20. Business at only one place. A license under this chapter authorizes the licensee to carry on its business only at the permanent place of business designated in the license. However, upon written request, the police license investigator may approve an off-site locked and secured storage facility. The licensee shall permit inspection of the facility in accordance with section 614.16. All provisions of this chapter regarding recordkeeping and reporting apply to the facility and its contents. Property shall be stored in compliance with all provisions of the city code. The licensee must either own the building in which the business is conducted, and any approved off-site storage facility, or have a lease on the business premises which extends for more than six (6) months. 614.21. Separability. Should any section, subsection, clause or other provision of this ordinance be declared by a court of competent jurisdiction to be invalid such decision shall not effect the validity of the ordinance as a whole or any part other than the part so declared invalid. This ordinance shall become effective immediately upon its passage and publication. This ordinance was adopted by the Lino Lakes Council on the 13th day of 1997. October Jo ,n L. Landers, Mayor Marilyn . Anderson, Clerk -Treasurer Motion for adoption of the foregoing ordinance was seconded by Council Member Neal and upon vote being taken thereon, the following voted in favor thereof: Bergeson, Kuether, Neal, Landers. The following voted against same: None. Council Member Lyden was absebt, Whereupon said ordinance was declared duly passed and adopted.