1998-04BILL NO. 1998-4
AN ORDINANCE REGULATING PAWNBROKER ESTABLISHMENTS; REQUIRING
A LICENSE; ESTABLISHING REPORTING REQUIREMENTS; AMENDING THE CITY
CODE BY ADDING A NEW SECTION 1187; SUPERSEDING PAWNBROKER
REGULATIONS IN SECTION 1186
THE CITY OF RICHFIELD DOES ORDAIN:
Section 1. The Richfield City Code is amended by adding a new section as
follows:
Section 1187 -Pawnbrokers
Purpose. The city council finds that because pawn businesses have the ability to
receive and transfer property easily and quickly, criminals often attempt to use pawn
services to conceal their crimes and to dispose of stolen property. 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 city council also finds
that consumer protection regulation is warranted in transactions involving pawnbrokers.
The purpose of this chapter 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 public safety 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 chapter also
implements and establishes the required use of the automated pawn system.
1187.03. Definitions. Subdivision 1. For purposes of this section, the terms defined in
this subsection have the meanings given them.
Subd. 2. Pawnbroker. The term "pawnbroker" means:
(a) Except as provided in paragraph (b), "pawnbroker" means a person
engaged in whole or in part in the business of lending money on the
security of pledged goods left in pawn, or in the business of purchasing
tangible personal property to be left in pawn on the condition that it may
be redeemed or repurchased by the seller for a fixed price within a fixed
period of time.
(b) The following are exempt from the term "pawnbroker": any bank
regulated by the state of Minnesota, the comptroller of the currency of
the United States, the Federal Deposit Insurance Corporation, the
board of governors of the Federal Reserve System, or any other federal
or state authority and their affiliates; any bank or savings association
whose deposits or accounts are eligible for insurance by the Federal
Deposit Insurance Corporation or any successor to it and all affiliates of
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those banks and savings associations; any state or federally chartered
credit union; and any industrial loan and thrift company or regulated
lender subject to licensing and regulation by the Minnesota department
of commerce. 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 section shat! be applicable.
Subd. 3. Pawn transaction. "Pawn transaction" means any loan on the
security of pledged goods or any purchase of pledged goods on the condition that the
pledged goods are left with the pawnbroker and may be redeemed or repurchased by
the seller for a fixed price within a fixed period of time. The term "pawn transaction"
includes the renewal, extension or redemption of a pawn transaction previously made.
Subd. 4. Person. "Person" means an individual, partnership, corporation,
limited liability company, joint venture, trust, association, or any other legal entity,
however organized.
Subd. 5. Pledged goods. "Pledged goods" means tangible personal property
other than choses in action, securities, bank drafts, or printed evidence of
indebtedness, that are purchased by, deposited with, or otherwise actually delivered
into the possession of a pawnbroker in connection with a pawn transaction.
Subd. 6. Reportable transaction. "Reportable transaction" means every
pawn transaction, except:
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(a) 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 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; and
(b) retail and wholesale sales of merchandise originally received by pawn
or purchase, and for which all applicable hold and/or redemption
periods have expired.
Subd. 7. Billable transaction. "Billable transaction" means every reportable
transaction except renewals, redemptions or extensions of existing pawns on items
previously reported and continuously in the pawnbroker's possession.
1187.05. License required. Subdivision 1. 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 subsection shall not relieve the licensee from
obtaining any other licenses required to conduct business at the same or any other
locations.
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Subd. 2. Existing businesses. Existing pawnbroker establishments must
apply for a license and pay the required fee within six months of adoption of this
ordinance. In such cases, the annual license fee established by this ordinance will be
prorated from the first day of the month in which application is made, and credit will be
given for the unused portion of any pawnbroker license fee previously paid and
covering the same time period.
1187.07. License fee. The annual license fee for a pawnbroker license is set by
appendix D. The license fee must be paid at the time of application for the license.
1187.09. License term. All licenses shall expire on December 31st of the year in which
the license is issued. Except as provided in 1187.05, subdivision 2, the annual license
fee will not be prorated.
1187.11. Application. Subdivision 1. Application required. An application form
provided by the department of public safety must be completed by every applicant for a
new license or for renewal of an existing license. Every applicant must provide the
information required by this subsection.
Subd. 2. Individual applicants. If the applicant is an individual, the applicant
must provide the following information:
(a) The name, place and date of birth, street resident address, and phone
number of the 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;
(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) 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 paragraphs (a) through
(h) of this subdivision.
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Subd. 3. Partnership applicant. If the applicant is a partnership, the
applicant must provide the following information:
(a) The name(s) and address(es) of all general and limited partners and all
information concerning each general partner required in subdivision 2,
paragraphs (a) through (h) of this subsection;
(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 the 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 subdivision 2,
paragraphs (a) through (h) of this subsection;
Subd. 4. Corporate applicant. If the applicant is a corporation or other
organization, the applicant must provide the following information:
(a) The name of the corporation or business form, and if incorporated, the
state 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, 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 subdivision 2, paragraphs (a) through (h) of this
subsection;
(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 2, paragraphs (a) through (h) above.
This paragraph (d) 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.
Subd. 5. All applicants. All applicants shall provide the following information:
(a) Whether the applicant holds a current pawnbroker, precious metal
dealer or secondhand goods dealer license from any other
governmental unit;
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(b) Whether the applicant has previously been denied, or had revoked or
suspended, a pawnbroker, precious metal dealer, or secondhand
goods dealer license from any other governmental unit;
(c) The location of the business premises;
(d) ff 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 alteration, 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 may require.
Subd. 6. Application execution. All applications for a license under this
subsection 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.
Subd. 7. Fee. The license application must be accompanied by the
license and investigation fees required by subsections 1187.07 and 1187.13 of this
code.
1187.13. License investigation. Subdivision 1. Background investigation. The public
safety director of designee 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 public safety director or their designee such evidence as the public safety
director or their designee may reasonably require in support of the statements set forth
in the application.
Subd. 2. Investigation fee. An applicant must reimburse the city for its
actual investigation, subject to the limitations in this subdivision. 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 with the public safety department at the time an
original application is submitted, an amount sufficient to cover the costs involved in
verifying the license application and to cover the expense of any investigation needed
to assure compliance with this subsection. The amount of the deposit shall be one
thousand five hundred dollars ($1,500) for each person to be investigated. Upon
completion of the investigation, the public safety department must either refund any
remaining balance on deposit or submit an invoice for the actual costs incurred in
excess of the deposit. The licensee shall pay any invoice for investigation fees within
thirty (30) days. Failure to do so is a violation of this subsection.
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1187.15. Employee Background Checks. Subdivision 1. 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 department of public safety, within
fourteen (14) days. The application must include all appropriate information required in
section 1187.11 concerning the new manager(s).
Subd. 2. Other Employees. When a licensee hires an employee other
than a manager, the licensee must complete and submit the appropriate application, on
forms provided by the department of public safety, within fourteen (14) days after the
employee is hired. The application must include all appropriate information required in
section 1187.11, subdivision 2, paragraphs (a)-(c), (e), (g), and (h).
Subd. 3. Investigation fee. The new manager application must be
accompanied by a deposit equal to five hundred dollars ($500.00) for each new
manager named in the application. The application for new employees other than
managers must be accompanied by a deposit equal to fifty dollars ($50.00) for each
new employee named in the application. The public safety director or designee shall
conduct an investigation into the truthfulness of the application. Upon completion of the
investigation, the public safety department must either refund any remaining balance on
deposit or submit an invoice for the actual costs incurred in excess of the deposit. The
licensee shall pay any invoice for investigation fees within thirty (30) days. Failure to do
so is a violation of this subsection.
1187.17. Public hearing. A pawnbroker license will not be issued or renewed without a
public hearing. Any person having an interest in or who will be affected by the
proposed license will be permitted to testify at the hearing. The public hearing must be
preceded by at least ten days' published notice specifying the location of the proposed
licensed business premises.
1187.19. Persons ineligible for a license. No licenses under this section 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:
(a) Is a minor at the time that the application is filed;
(b) Has been convicted of any crime directly related to the occupation
license 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 section as
prescribed by Minnesota Statutes, Section 364.03, Subd. 3;
(c) A person whom the city council determines not to be of sufficient good
moral character and repute;
(d) A person not a citizen of the United States or a resident alien;
(e) A person who within five years of the license application date had a
pawnbroker license revoked;
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(f) A pawnbroker license will not be issued to any partnership or
corporation if such applicant has a partner, managing partner,
manager, proprietor, or agent who does not meet the standards set
forth in paragraphs (a) through (e) of this subsection.
1187.21. Bond required. Before a license will be issued, every applicant must submit a
five thousand dollar ($5,000.00) bond on forms provided by the department of public
safety. 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 far 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 department of public safety.
1187.23. Denial, suspension or revocation. A license under this section may be
denied, suspended or revoked by the council, after an investigation and public hearing
where the licensee is granted the opportunity to be heard, for one or more of the
following reasons:
(a) The operation of the business is in conflict with any provision of this
code;
(b) The operation of the business is in conflict with any health, fire,
building, building maintenance, zoning, or any other applicable codes
or laws;
(c) The applicant or licensee has failed to comply with one or more
provisions of this section or~any statute, rule or ordinance pertaining to
the business of pawnbroker;
(d) The applicant is not a citizen of the United States or a resident alien, or
upon whom it is impractical or impossible to conduct a background or
financial investigation due to the unavailability of information;
(e) The applicant has committed fraud, misrepresentation or bribery in
securing or renewing a license;
(f) The applicant has committed fraud, misrepresentation or false
statements made in the application and investigation for, or in the
course of, the applicant's business;
(g) The applicant or licensee has been convicted of any state or federal
law relating to receiving stolen property, sale of stolen property or
controlled substance, burglary, robbery, theft, damage or trespass to
property, operation of a business, or any law or ordinance regulating
the business of pawnbroker;
(h) Issuance or renewal of the license would adversely affect public health,
safety or welfare;
(i) The owner of the premises licensed or to be licensed would not qualify
for a license under the terms of this section.
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1187.25. Records required. Subdivision 1. Records of transactions. At the time of
any reportable transaction other than renewals, extensions or redemptions, every
licensee must immediately record in English the following information in a computerized
record approved by the public safety director or designee:
(a) 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;
(b) The purchase price, amount of money loaned upon, or pledged
therefor;
(c) The maturity date of the transaction;
(d) The amount due, including monthly and annual interest rates and all
pawn fees and charges;
(e) 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;
(f) 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;
(g) The identification number and state of issue from any of the following
forms of identification of the seller or pledger: (i) current valid
Minnesota driver's license; (ii) current valid Minnesota identification
card; or (iii) current valid photo identification card issued by another
state or a province of Canada;
(h) The signature of the person identified in the transaction.
Subd. 2. Photographic records. The licensee must also take a color
photograph or color video recording which meets acceptable video standards as
established by the public safety director or designee of:
(a) Each customer involved in a billable transaction; and,
(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 reface.
Such photographs must be available to the public safety director, or the director'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. The licensee must keep the photographs on the premises
available for inspection for ninety (90) days.
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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 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 by displaying a sign of
sufficient size in a conspicuous place on the premises. The licensee must keep the
exposed videotape on the premises available for inspection for ninety (90) days.
Subd. 3. Digital images. Licensees may fulfill the color photograph
requirements in subdivision 2 of this subsection by generating them as digital images, in
a format specified by the public safety department, electronically cross-referenced to
the reportable transaction the images are associated with. The licensee must keep the
digital images on the premises available for inspection for ninety (90) days.
Notwithstanding that digital images may be captured from video recordings, this
provision does not alter or amend the requirements in subdivision 2 of this subsection.
Subd. 4. Records for 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.
Subd. 5. Inspection of records. The records must at all reasonable times
be on the premises and available for inspection by the department of public safety.
Data entries shall be retained for at least three (3) years from the date of transaction.
Required photographs, video recordings, and digital images shall be retained a
minimum of ninety (90) days.
1187.27. Daily reports to police. Subdivision 1. Modem re~ortinq. Effective sixty (60)
days from the date of notification by the public safety director or designee, licensees
must submit every reportable transaction to the public safety department daily by
transferring it from their computer to the public safety 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
public safety department using adial-callback protocol or other procedures that address
security concerns of the licensees and the public safety department.
Subd. 2. Electronic reporting problems. Licensees are required to report
transactions by modem, except as otherwise allowed in this subdivision:
(a) If a licensee is unable to successfully transfer the required reports by
modem, the licensee must have on the premises and available for
inspection by the public safety department printed copies of all
reportable transactions that have not been reported by modem.
(b) 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 section
1187.25, in a paper format approved by the director of public safety.
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(c) If a licensee is unable to capture, digitize or video record the
photographs required in section 1187.25, the licensee must
immediately take all required photographs with a still camera,
immediately develop the pictures, cross-reference the photographs to
the correct transaction. -
(d) If the problem is determined to be in the licensee's system, the licensee
shall take all reasonable steps to include the replacement of system
components such as modems and other computer hardware and
software, in order to return the electronic reporting system to
operational condition as soon as possible.
(e) Failure to report transactions electronically for a period of seven (7) or
more consecutive days, due to a problem in the licensee's system
constitutes grounds for license suspension or revocation.
Subd. 3. Signage required. 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 public safety department daily.
1187.29. Billable transaction license fees. Subdivision 1. Required fees. Every
licensee shall pay a billable transaction license fee for each billable transaction handled
by the licensee. The amount of the fee is set by appendix D and reflects the cost of
processing transactions and other related regulatory expenses. The city council will
review and adjust the fee amount, if necessary, at least every twelve (12) months.
Licensees shall be notified in writing at least thirty (30) days before any adjustment is
implemented.
Subd. 2. Fee classification. The billable transaction license fee is
classified according to the medium by which daily reports are submitted to the public
safety department. These classifications are: modem and manual, and the fee for each
classification is set by appendix D. Licensees will be charged for billable transactions at
the current rate for the medium by which the transactions reported to the public safety
department.
Subd. 3. Monthly payment. Billable transaction license fees shall be
billed monthly and are due and payable within thirty (30) days. Failure to do so is a
violation of this subsection.
1187.31. Receipt required. Subdivision 1. Requirement. 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.
Subd. 2. Contents of receipt. The receipt must include at least the
following information:
(a) The name, address and telephone number of the licensed business;
(b) The date and time the item was received by the licensee;
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(c) Whether the item was pawned or sold, or the nature of the transaction;
(d) 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;
(e) The signature or unique identifier of the licensee or employee that
conducted the transaction;
(f) The amount advanced or paid;
(g) The monthly and annual interest rates, including all pawn fees and
charges;
(h) The last regular day of business by which the item must be redeemed
by the pledger without risk that the item will be sold;
(i) The amount necessary to redeem the pawned item on the maturity
date;
(j) The full name, residence address, residence telephone number, and
date of birth of the pledger or seller;
(k) The identification number and state or province of issue from any of the
following forms of identification of the seller: (i) current valid Minnesota
driver's license; (ii) current valid Minnesota identification card; or (iii}
current valid photo driver's license or identification card issued by
another state or a province of Canada.
(I) Description of the pledger or seller including approximate height,
weight, race, sex, color of eyes and color of hair;
(m) The signature of the pledger or seller;
(n) All printed statements as required by Minnesota Statute 325J.04
subdivision 2, or any other applicable statutes.
1187.33. Redemption period. Any person pledging, pawning or depositing an item for
security must have a minimum of sixty (60) days from the date of that transaction to
redeem the item before it may be forfeited and sold. During the sixty (60) day holding
period, items may not be removed from the licensed location except as provided in
section 1187.45. 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
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 Public Safety Director or their designee. Written
authorization for release of property to persons other than original pledger must be
maintained along with original transaction records in accordance with subsection
1187.25.
1187.35. 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.
1187.37.. Police order to hold property. Subdivision 1. 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
Bill No. 1998-4 -12-
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
subsection 1187.31 (b) whichever comes first.
Subd. 2. Order to hold. Whenever the public safety director, or the
director'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 director or
the director's designee. The order to hold shall expire ninety (90) days from the date it
is placed unless the public safety director or the director's designee determines the hold
is still necessary and notifies the licensee in writing.
Subd. 3. Order to confiscate. If an item is identified as stolen or evidence
in a criminal case, the director or director's designee may:
(a) Physically confiscate and remove it from the pawnshop, pursuant to a
written order from the director or the director's designee, or
(b) Place the item on hold or extend the hold as provided in subdivision 2
of this subsection and leave the item in the pawnshop.
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.
Subd. 4. Release of order to hold/confiscate. When an order to
hold/confiscate is no longer necessary, the director of public safety, or the director's
designee shall so notify the licensee.
1187.39. Inspection of items. At all times during the terms of the license, the licensee
must allow the public safety director or designee(s) to enter the premises where the
licensed business is located, including all off-site storage facilities as authorized in
section 1187.45 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.
1187.41. Label reauired. 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 pawnshop'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 public
safety 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.
1187.43. Prohibited acts. The following acts are prohibited:
(a) No person under the age of twenty-one (21) years may pawn or sell or
attempt to pawn or sell goods with any licensee, nor may any licensee
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receive any goods from a person under the age of twenty-one (21)
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 current valid Minnesota driver's license or
identification card, or a current valid photo driver's license or
identification card issued by the state or province 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.
1187.45. Business at only one place. A license under this section authorizes the
licensee to carry on its business only at the permanent place of business designated in
the license. However, upon written request, the public safety director or designee may
approve an off-site locked and secured storage facility. The licensee shall permit
inspection of the facility in accordance with section 1187.39. All provisions of this
section regarding record keeping 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.
1187.47. Separability. Should any subsection, subdivision, paragraph, clause or other
provision of this section be declared by a court of competent jurisdiction to be invalid
such decision shall not affect the validity of the ordinance as a whole or any part other
than the part so declared invalid.
Relation to other ordinances. This ordinance supersedes those provisions of section
1186 of the Richfield City Code that pertain to pawnbrokers.
Sec. 2. This ordinance shall be effective as provided in Richfield City
Cade subsection 110.11.
Adopted this 23rd day of March, 1998.
',
`~ ~ ~ i
,~ ~_
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f
Martin J. Kirs~h,'~~Mayor
ATTEST:
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Thomas P. Ferber, City Clerk
V~, V
PUBLICATIONS
Sun•Current Sun•Post Sun•Saila
~TE OF MINNESOTA)
SS.
COUNTY OF HENNEPIN)
Doug Dance
AFFIDAVIT OF PUBLICATION
being duly sworn on an oath says that he/she is
the publisher or authorized agent and employee of the publisher of the newspaper known as
S U n -Current ,and has full knowledge of the facts which
are stated below.
(A) The newspaper has complied with all of the requirements constituting qualification as a
qualified newspaper, as provided by Minnesota Statute 331A.02, 331A.07, and other
applicable laws, as amended. 1aa ~ - -T-
(B) The printed R e s o l u t i o n N o. 8 5 6 5
which is attached was cut from the columns of said newspaper, and was printed and
published once each week, for one successive weeks; it was first published
Wednesday the 1 day of April , 19 9 8, and was
reafter printed and published on every to
and including ,the day of
19 ,
and printed below is a copy of the lower case alphabet from A to Z, both inclusive, which is
hereby acknowledged as being the size and kind of type used in the composition and
publication of the notice:
abcdefghij klmnopgrstuvwxyz
City of Richfield
(Official Publication)
RESOLUTION NO. 8565
RESOLUTION AUTHORIZING PUBLICATION OF
BILL NO. 1998-4 BY TITLE AND SUMMARY
WHEREAS, the City Council o(' Che City of Richfield
has adopted an ordinance, Bill No. 1998-4, which adds a
new Section 1187 to the Richfield City Code; and
WHEREAS, Section 3.12 of the Richfield City
Charter provides for the publication of ordinances by title
and summary in certain circumstances.
NOW, THEREFORE, BE IT RESOLVED ley t}te
City Council of the City of Richfield, as follows:
1. The City Council hereby detormines that publica-
tion of the complete Cext of Bill No. 1998-4 is not
cost effective.
2. The City Council determines that the fallowing
summary would clearly inform the public of the
intent and effect of the ordinance and hereby
approves the same:
3. The City Clerk shat] cause the following summa-
ry of Bill No. 1998-4 to be published in the official
newspaper in lieu of the entire ordinance:
Public Notice
The Crty Council of the City of Richfield has adopted Bill
Nn. 1998-4, "AN ORDINANCE REGULATING PAWN-
BROKER ESTABLISHMENTS; REQUIRING A
LICENSE; ESTABLISHING REPORTING REQUIRE-
MENTS; AMENDING THE CITY CODE BY ADDING A
NEW SECTION 1187; SUPERSEDING PAWNBROKER
REGULATIONS IN SECTION 118(1." The ordinance
adds a new section 1187 to Che Richfield City Code, which
supersedes existing pawnbroker regulations found in sec-
tion 118G.
License Procedures
The ordinance requires persons to obtain an annual
license to engage in the business of pawnbroker, estab-
lishes licensing procedures, and provides for a license fee.
The ordinance requires background investigations to be
conducted regarding any pawnbroker business, manager
or employee; establishes investigation fees; and requires
a bond for all licensees. The ordinance makes certain per-
sons ineligible for licenses and establishes grounds and
procedures for licenses to be denied, suspended or
revoked.
Recordkeeping Regulations
The ordinance requires pawnbroker businesses to main-
Cain records of transactions and to keep photographic
records or digital images of customers and certainpawned
items. Pawnbrokers are required to report certain trans-
actions daily to the public safety department by modem,
suhject to limited exceptions Licensees must pay a fee for
every transaction reported.
Consumer Protection Regulations
Pawnbrokers are required to provide detailed receipts to
nersons who Dawn items. Persons nawnine items must be