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HomeMy WebLinkAbout1996-009 Council OrdinancesCouncil Member adoption: ORDINANCE NO. 09 - 96 DRAFT introduced the following ordinance and moved its CITY OF LINO LAKES ORDINANCE NO. 09 - 96 AN ORDINANCE AMENDING THE LINO LAKES CITY CODE SECTION 600 (BUSINESS AND ACTIVITY LICENSING) BY ADDING PROVISIONS ADDRESSING PAWNBROKERS/PRECIOUS METAL DEALERS/ SECONDHAND GOODS DEALERS THE CITY COUNCIL OF THE CITY OF LINO LAKES ORDAINS: Section 1. Section 600 of the Lino Lakes City Code is hereby amended by adding the following: 614. Pawnbrokers/Precious Metal Dealers/Secondhand Goods Dealer 614.01 Definitions. The following words and terms when used in this Chapter shall have the following meanings unless the context clearly indicates otherwise: 1. Issuing Authority. The City of Lino Lakes. 2. 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. 3. Minor. Any natural person under the age of 18 years. 4. Pawnbroker. A person who loans money on deposit or pledge of personal property or other valuable thing; who deals in the purchasing of personal property or other valuable thing on condition of selling that same back again at a stipulated price; or who loans money secured by chattel mortgage or on personal property, taking possession of the property or any part thereof so mortgaged. To the extent that a pawnbroker business includes buying personal property previously used, rented, or leased, the provisions of this Chapter shall be applicable. Any bank, savings and loan association, or credit union shall not be deemed a pawnbroker for purposes of this Chapter. 5. Pawnshop. Any business establishment operated by a pawnbroker. 6. Person. One or more natural persons; a partnership, including a limited partnership; a corporation, including a foreign, domestic, or nonprofit corporation; a trust; a political subdivision of the state; or any other business organization. 7. Precious Metal Dealer. Any person engaging in the business of buying coins or secondhand items containing precious metal, including, but not PAGE 1 ORDINANCE NO. 09 - 96 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 license under Minnesota Statutes, Section 325F.733. 8. Precious Metals. Silver, gold or platinum. 9. Secondhand Goods Dealer. Any person engaging in the business of buying and/or selling secondhand items, except: (A) Precious metal dealers and pawnbrokers; (B) Persons conducting transaction at occasional "garage" or "yard" sales, or estate sales or farm auctions; (C) Repurchases 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; (E) Dealers of used motor vehicles; PAGE 2 ORDINANCE NO. 09 - 96 (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 325F.21; (I) Persons making occasional private purchases and sales of secondhand items. (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; (L) 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 (0) 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. 10. 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. 11. Class B Secondhand Goods Dealer. Any person who annually engages in more than 60 but fewer than 1,800 transactions involving the buying and/or selling of secondhand items. 12. Class C Secondhand Goods Dealer. Any person who annually engages in 60 or fewer transactions involving the buying and/or selling of secondhand items. 13. Transaction. The buying and/or selling of any item which has a serial number or an operation ID number or for which compensation of $25.00 or more is paid. Each such item acquired from or sold to the same customer at the same time shall be considered a separate transaction. 614.02 Purpose. The City Council finds that pawnbrokers, precious metal dealers and secondhand goods dealers potentially provide an opportunity of the commission of crimes and their concealment because such businesses have the ability to receive and transfer stolen property easily and quickly. The City Council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers, precious metal dealers, secondhand goods and equipment dealers. The purpose of this PAGE 3 ORDINANCE NO. 09 - 96 division is therefore to prevent these businesses from being used as facilities for commission of crimes and to assure that they comply with basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the citizens of the City. 614.03 License Required. No person shall exercise, carry -on, or be engaged in the trade or business of pawnbroker, precious metal dealer or Class A or Class B secondhand goods dealer within the City unless such person is currently licensed as provided in this Chapter. 614.04 Application Content. In addition to any information that may be required by the County pursuant to Minnesota Statutes, Section 471.924, every application for a license under this Chapter shall be made on a form supplied by the issuing authority and shall contain the following information: 1. If the applicant is a natural person: (A) The name and date of birth, residence address, and telephone number of the applicant. (B) Whether the applicant is a citizen of the United States or a 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 where 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 copy of the certificate as required by Minnesota Statutes, Section 333.01. (E) The street addresses at which the applicant has lived during the preceding five (5) years. (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 statute or ordinance other than a minor traffic offense. If so, the applicant shall furnish information as to the time, place, and offense for which convictions were made. (H) If the applicant is married: (I) The name and date of birth, and residence address of the applicant's current spouse. (II) The type, name and location of every business or occupation in which the applicant's current spouse has been engaged during the preceding five (5) years. PAGE 4 ORDINANCE NO. 09 - 96 (III) The names and addresses of the employers or partners of the applicant's current spouse for the preceding five (5) years. (IV) Whether the applicant's spouse has ever been convicted of any felony, crime or violation of any statute or ordinance other than a minor traffic offense. If so, the applicant shall furnish information as to the time, place, and offense for which convictions were made. 2. If the applicant is a partnership: (A) The name(s), address(es), and dates of birth of all general and limited partners and all information concerning each general partner required in subpart 1 of this Section. (B) The name(s) of the managing partner(s) and the interest of each partner in the pawnbroker, precious metal dealer or Class A secondhand goods 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 shall be attached to the application. 3. If the applicant is a corporation or other organization: (A) The name of the corporation or business firm, and if incorporated, the sate of incorporation. (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, shall be attached. (C) The name of the manager(s), proprietor(s), or other agent(s) in charge of the business and all information concerning each manager, proprietor, or agent required in subpart (A) 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 subpart (A) above. 4. For all applicants: (A) Whether the applicant holds a current pawnbroker, precious metal dealer, or secondhand goods dealer license from any other PAGE 5 ORDINANCE NO. 09 - 96 governmental unit and whether the applicant is licensed under either Minnesota Statutes, Section 471.924, or Minnesota Statutes, Sections 325F.731 - 325F.744. (B) Whether the applicant has previously been denied a pawnbroker, precious metal dealer, or secondhand goods dealer license from any other governmental unit. (C) The names, addresses of three (3) residents of Hennepin, Sherburne, Wright, Isanti, Ramsey, Anoka, Carver, Dakota, Washington or Scott County who are of good moral character and who are not related to the applicant or not hold any ownership in the premises or business, who may be referred to as to the applicant's and/or manager's character. (D) The location of the business premises. (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 alteration, the application shall be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. If the plans or design are on file with the City of Lino Lakes, Building Inspections Department, no plans need be submitted with the issuing authority. (H) Such other information as the City Council or issuing authority may require. 614.05 Registration of Class C. Secondhand Good 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 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. 614.06 Application Submission An application for a license pursuant to this Chapter shall be submitted to the City Clerk on forms provided by the City. The Clerk shall refer the applications to the Police Department and such other appropriate City departments for review, investigation and recommendation. The Clerk shall submit the application for a pawnbroker, precious metal dealer or Class A secondhand goods dealer license to the City Council within 30 days of receipt of the application. 614.07 Issuance of License 1. Pawnbroker, Precious Metal Dealer and Class A. Secondhand Goods Dealer. Within 30 days of submission, the City Council shall grant or deny PAGE 6 ORDINANCE NO. 09 - 96 a license application for a pawnbroker, precious metal dealer or a Class A secondhand goods dealer license. 2. 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 City Council within 30 days after receipt of the application by the City Clerk shall be deemed a granting of the license. 3. Any falsification of on or material omission from a license application shall constitute good and sufficient cause to deny the application. 614.08 Expiration of License. All licenses issued under this Chapter shall expire as of midnight on December 31st of the year of issuance. 614.09 Renewal. An application for the renewal of an existing license shall be made to the City Clerk prior to the expiration date of the license and shall be made in such form as the issuing authority requires. Applications for renewal of a pawnbroker, precious metal dealer and Class A secondhand dealer licenses shall be submitted by the City Clerk to the City Council. Renewal of a Class B secondhand dealer licenses shall be granted by the City Clerk unless the City Clerk, for good and sufficient cause, determines there are grounds for denial in which case the City Clerk shall submit the renewal application to the City Council. 614.10 Conditions for Approval of License. 1. No license under this Chapter shall be issued to an applicant who is a natural person if such applicant: (A) Is a minor at the time the application is filed; (B) 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 pawnbroker, precious metals dealer, or secondhand goods dealer as prescribed by Minnesota Statutes, Section 364.03, subd. 3; (C) Is not a citizen of the United States or a resident alien; (D) Is not of good moral character or repute; or (E) Holds an intoxicating liquor license under this Code. 2. No license under this Chapter shall be issued to an applicant that is a partnership if such applicant has any general partner or managing partner who: (A) Is a minor at the time the application is filed. PAGE 7 ORDINANCE NO. 09 - 96 (B) 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 pawnbroker, precious metals dealer, or secondhand gods dealer as prescribed by Minnesota Statutes, Section 364.03, subd. 3; (C) Is not a citizen of the United States or a resident alien; (D) Is not of good moral character or repute; or (E) Holds an intoxicating liquor license under this Code. 3. No license under this Chapter shall be issued to an applicant that is a corporation or other organization if such applicant has any manager, proprietor, or agent in charge of the business to be licensed: (A) Is a minor at the time the application is filed; (B) 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 pawnbroker, precious metals dealer, or secondhand goods dealer as prescribed by Minnesota Statutes, Section 364.03, subd. 3; (C) Is not a citizen of the United States or a resident alien; (D) Is not of good moral character or repute; or (E) Holds an intoxicating liquor license under this Code. 4. 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. (C) Pawnbroker and precious metal dealer operations may be located only in General Commercial zoning districts. No pawn shop shall be located within a distance of 1/2 mile of any other such business PAGE 8 ORDINANCE NO. 09 - 96 within the City of Lino Lakes as measured a straight line. Secondhand goods dealer operations may be located only in General Commercial, Community Commercial or Neighborhood Commercial zoning districts, unless the establishment is operating pursuant to a special use permit issued by the City. 5. The licensee, proprietor or manager of the establishment shall be a resident of Anoka, Sherburne, Wright, Isanti, Carver, Scott, Hennepin, Ramsey or Washington County as of the date approval of an original or renewal license. For good cause, the City Council may extend the time for establishing residency in one of the above named counties. 6. A proprietor or manager of the establishment shall be authorized to accept service of process, civil or criminal, on behalf of the licensee. 614.11 Annual License Fees. 1. Pawnshop or Precious Metal Dealer. Except as provided below, the annual license fee shall be $7,000.00. (A) The annual license feel shall be $3,000.00 if the applicant provides the required reports by electronic means as specified in Section 614.13. (B) Any license holder who pays the lower fee but fails to provide electronic reports in the specified manner shall pay the higher fee for the succeeding year regardless of the reporting method. Such licensee may again pay the lower fee commencing with the license year succeeding the year in which the licensee begins specified electronic reporting. 2. Class A Secondhand Goods Dealer. The annual fee shall be $700.00. 3. Class B Secondhand Goods Dealer. The annual fee shall be $100.00. 4. Class C Secondhand Goods Dealer. No annual fee. 5. The annual license fees for licenses issued after July 1st in any year shall be 50% of the annual fee for the first year of the license. 6. The appropriate license fee shall be submitted with the application. 7. The license fee shall be refunded if the application is denied. 8. The annual license fee shall hereafter be established by resolution of the ,-- City Council. PAGE 9 ORDINANCE NO. 09 - 96 614.12 Investigation Fee. 1. An applicant for a pawnbroker, precious metal dealer or a Class A secondhand goods dealer license shall deposit with the issuing authority at the time an original application is submitted, $250.00 to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to insure compliance with this Chapter. 2. An applicant for a Class B secondhand goods dealer license shall deposit with the issuing authority at the time an original application is submitted, $50.00 to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to assure compliance with this Chapter. 3. Investigation fees shall be submitted with the application and are not refundable. 4. Investigation fees shall hereafter be established by resolution of the City Council. 614.13 Licensee Requirements. 1. Record keeping. At the time of a receipt of an item of property, whether sold or pawned, the pawnbroker or precious metal dealer shall immediately record, using the English language, on computer disc in a form according to standards on file with the Police Chief or in a book or journal which has page numbers that are preprinted and in an indelible ink, the following information: (A) An accurate description of the item of property including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such item; (B) The date and time the item of property was received by the pawnbroker or precious metals dealer; (C) The name, address, telephone number and date of birth of the person from whom the item of property was received. 2 Inspection of Records. The pawnbroker or precious metal dealer shall make available the information required in subpart 1 of this Section at all reasonable times for inspection by the City Police Department or issuing authority. The information required in subpart 1 of this Section PAGE 10 ORDINANCE NO. 09 - 96 shall be retained by the pawnbroker or precious metal dealer for at least four (4) years. 3. Items for Which Daily Reports to Police Department are Required. For the following items whether sold or pawned, the pawnbroker or precious metal dealer shall complete forms approved by the City Police Department. (A) Any item with a serial number, identification number, or "Operation Identification" number; (B) Cameras; (C) Electronic audio or video equipment; (D) Precious jewelry, gems and metals; (E) Artist -signed or artist -attributed works of art; (F) Guns; (G) Any item not included in (A) - (G) above, except furniture and kitchen or laundry appliances, which the pawnbroker or precious metal dealer intends to sell for more than $25.00. 4. Daily Report Forms. The daily report forms submitted to the City Police Department shall contain the following information: (A) An accurate description of the item of property including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such item; (B) The price of the item paid by the pawnbroker or precious metal dealer and whether the item was purchased or pawned; (C) The date, time and place of receipt of the item; (D) The name, address, telephone number and date of birth of the person from whom the item was received; (E) The identification number from one of the following forms of identification of the person from whom the item was received: (I) A valid driver's license; (II) A Minnesota identification Card; or (III) A photo identification issued by the state of residency of the person from whom the item was received. 5. Police Order to Hold Property. Whenever the City Police Department notifies the pawnbroker, precious metal dealer or secondhand goods dealer not to sell an item, the item shall not be sold or removed from the licensed premises until authorized to be released by the City Police Department. PAGE 11 ORDINANCE NO. 09 - 96 6. Holding Period for Pawnbrokers. Any item pawned to a pawnbroker for which a report to the Police Department is required under subpart (iii) of this Section shall not be sold or otherwise transferred for 30 days after the date of the pawn. However, an individual may redeem an item pawned 72 hours after the item was received on deposit by the pawnbroker excluding Sundays and legal holidays. Any item sold to a pawnbroker for which a report to the Police Department is required shall not be resold or otherwise transferred for seven (7) days after the date of purchase. 7. Receipt. The pawnbroker or precious metal dealer shall provide a receipt to the seller or pledger of any item of property received, which shall include: (A) The name, address and telephone number of the pawnbroker or precious metal dealer. (B) The date on which the item was received by the pawnbroker or precious metal dealer. (C) A description of the item received and amount paid to the pledger or seller in exchange for the item pawned or sold. (D) The signature of the pawnbroker or precious metal dealer or agent. (E) The last regular business day 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. (F) The annual rate of interest charged on pawned items received. (G) The name and address of the seller or pledger. 8. 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 approved by the Chief of Police prior to the issuance of a license. 9. Class C secondhand dealers shall report transactions to the Police Department on forms provided by the issuing authority. 10. Hours of Operation. No pawnbroker, precious metal dealer or secondhand goods dealer shall keep the establishment open for the transaction of business on any day of the week before 7:00 a.m. or after 10:00 p.m. 11. Minors. The pawnbroker, precious metal dealer or secondhand goods dealer shall not purchase or received personal property of any nature on deposit or pledge from any minor. 12. Inspection of Items. The pawnbroker, precious metal dealer or secondhand goods dealer shall, at all times during the term of the license, PAGE 12 ORDINANCE NO. 09 - 96 allow the Police Department or issuing authority to enter the business premises at a reasonable hour for the purpose of inspecting such premises and inspecting the items, wares, and merchandise therein for the purpose of locating items suspected or alleged to have been stolen or otherwise improperly disposed of 13. License Display. A license issued under this Chapter must be posted in a conspicuous place in the premises for which it is used. The license issued is only effective for the compact and contiguous space specified in the approved license application. 14. Maintenance of Order. A licensee under this Chapter shall be responsible for the conduct of the business being operated and shall maintain conditions of order. 15. Gambling. No license under this Chapter may keep, posses, or operate, or permit the keeping, possession, or operation on the licensed premises of dice, slot machines, roulette wheels, punchboards, blackjack tables or pinball machines which return coins or slugs, chips, or tokens of any kind, which are redeemable in merchandise or cash. No gambling equipment authorized under Minnesota Statutes, Sections 349.11 - 349.60, may be kept or operated and no raffles may be conducted on the licensed premises and/or adjoining rooms. The purchase of lottery tickets may take place on the licensed premises as authorized by the director of the lottery pursuant to Minnesota Statutes, Section 349.01 - 349.15. 16. Prohibited Goods. No licensee under this Chapter shall accept any item of property which contains an altered or obliterated serial number or "Operation Identification" number or any item of property whose serial number has been removed. 17. Proper Identification. A licensee under this Chapter shall not accept items of property unless the seller or pledger provides to the pawnbroker, precious metal dealer or secondhand good dealer one of the following forms of identification: (A) A valid driver's license; (B) A Minnesota Identification Card; or (C) A photo identification issued by the state of residency of the person from whom the items was received. No other forms of identification shall be accepted. 18. Redemption Period. The date by which an item of property that has been .-- pawned must be redeemed by the pledger without risk that the item will be PAGE 13 ORDINANCE NO. 09 - 96 sold must be a day on which the pawnbroker or precious metal dealer is open for regular business. 19. Photograph Requirement for Pawnbrokers. The City Council finds the the safety of the public is compromised when stolen property is easily pawned or sold to pawnbrokers. Given the nature of the business of pawnbrokers and the attraction pawnshops have to the criminally disposed, the City Council either enacts the following license regulation. A pawnbroker shall take either a photograph or a still video of each person selling or pawning any item of property. If a photograph is taken, it shall be at least two inches (2") in length by two inches (2 ") in width and shall be immediately developed and referenced with the information regarding the person and the item sold or pawned. The major portion of the photograph shall include a front facial pose. The pawnbroker shall notify the person of the photograph requirement prior to taking his or her photograph. If a still video photograph is taken the video camera shall zoom in on the person pawning or selling the merchandise so as to include a close-up of the persons face. The video photograph shall be referenced by time and date so as to correspond to the merchandise sold or pawned by the person. The pawnbroker shall, by adequate signage, inform the person that he or she is being videotaped. The photographs and videotape shall be kept by the pawnbroker for four (4) months. 20. Holding Period for Precious Metal Dealers. Any item received by a precious metal dealer for which a report to the Police Department is required under subpart (iii) of this Section shall not be sold or otherwise transferred for two (2) weeks after the date of the sale or pawn. 614.14 Restrictions Regarding License Transfer. Each license under this Chapter shall be issued to the applicant only and shall not be transferable to any other person. No licensee shall loan, sell, give or assign a license to another person. 614.15 Suspension or Revocation of License. 1. The City Council may suspend or revoke a license issued under this Chapter upon finding of a violation of: (A) Any of the provisions of this Chapter; (B) Any state statute regulating pawnbrokers, precious metal dealers or secondhand goods dealers; or (C) Any state or local law relating to moral character and repute. Any conviction by the pawnbroker, precious metal dealer or secondhand goods dealer for theft, receiving stolen property, or any other crime or violation involving stolen property, or any other crime or violation involving stolen property shall result in the PAGE 14 ORDINANCE NO. 09 - 96 immediate suspension pending a hearing on revocation of any license issued thereunder. 2. 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 a hearing. The written notice shall give at least eight (8) 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 City 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 Unity States mail addressed to the most recent address of the business in the license application. The licensee, or representative, may appear at the hearing, with or without legal counsel and present evidence in opposition to the suspension or revocation. 614.16 Prohibited Acts. 1. No pawnbroker shall: (A) Lend money on a pledge at a rate of interest above that allowed by law; (B) Knowingly possess stolen goods; (C) Sell pledged goods before the time to redeem has expired; (D) Make a loan on a pledge or purchase property from a minor. 2. No precious metal dealer or secondhand goods dealer shall: (A) Knowingly possess stolen goods; or (B) Purchase property from a minor. 614.17 Penalties. In addition to sanctions that may be imposed against a license under this chapter, any violation of this chapter is a misdemeanor. 614.18 Severability. If any section or portion of any section of this chapter is deemed invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity of other sections or portions of section of this chapter. 614.19 Effective Date. This ordinance will be effective 30 days following its passage and publication as provided by the Lino Lakes City Charter. Section 2. Adopted by the Lino Lakes City Council this 1 1 day of ,19 97 Octthber PAGE 15 ORDINANCE NO. 09 - 96 John L. Landers, Mayor ATTEST: Marilyn G. Anderson, Clerk -Treasurer The motion for the adoption of the foregoing ordinance was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor: The following voted against same: Whereupon said ordinance was declared duly passed and adopted. PAGE 16