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06-27-2017HOPKINS PLANNING AND ZONING COMMISSION AGENDA Tuesday, June 27, 2017 6:30 pm THIS AGENDA IS SUBJECT TO CHANGE UNTIL THE START OF PLANNING AND ZONING COMMISSION MEETING I.CALL TO ORDER II.ADOPT AGENDA III.OPEN AGENDA – PUBLIC COMMENTS/CONCERNS IV.CONSENT AGENDA 1. Minutes of the May 23, 2017, Planning & Zoning Commission V.PUBLIC HEARING 1.Planning Application 2017-06-CUP Meadowbrook Golf Course VI.OLD BUSINESS 1.Planning Application 2017-05-TA Pawn, Coin and Currency Exchange Zoning Amendment Discussion VII.NEW BUSINESS VIII.ANNOUNCEMENTS 1.2040 Comprehensive Plan Update IX.ADJOURN UNOFFICIAL PLANNING & ZONING COMMISSION MINUTES May 23, 2017 A regular meeting of the Hopkins Planning & Zoning Commission was held on May 23, 2017, at 6:30 p.m. in the Council Chambers of Hopkins City Hall. Present were Commission Members Laura L. Daly, Kristin Hanneman, Brian Hunke, Matthew McNeil, Gary Newhouse, Emily Wallace-Jackson and James Warden. Also present was City Planner Jason Lindahl. CALL TO ORDER Chair Hunke called the meeting to order at 6:30 p.m. ADOPT AGENDA Commissioner McNeil moved, Commissioner Warden seconded, to adopt the agenda. The motion was approved unanimously. OPEN AGENDA – PUBLIC COMMENTS/CONCERNS – none CONSENT AGENDA Commissioner Warden moved, Commissioner McNeil seconded, to approve the minutes of the February 28, 2017, regular meeting. The motion was approved unanimously. PUBLIC HEARING – Planning Application 2017-04-CUP, 1521 Mainstreet. Mr. Lindahl gave an overview of this request for approval of a conditional use permit to allow a second floor residential use in the B-3 district. The building is currently occupied as business/second floor residence, and the CUP requirement was either not required or missed 34 years ago. Mr. Lindahl said that the proposed buyer contacted him because she plans to add a garage. Mr. Lindahl stated he has advised her of all requirements, including setbacks, street access and private entry to the residence, a parking space for clients, and a driveway permit. Mr. Lindahl recommended approval of the CUP. The Commission discussed ADA access from the street, design of the garage in relation to the desire to upgrade the west end of Mainstreet, parking and signage. Commissioner Newhouse stated he felt the applicant should be required to meet higher architectural, maintenance and sign standards as part of the conditional use permit. Staff explained the parking regulations require at least one off- street parking space for clients, while the conditional use permit standards also require a garage for the residential use. Staff also explained that any changes to the existing signage would require approval of a separate administrative sign permit. Proposed buyer Susan Gallucci and broker Lynn Kuznia came forward to answer questions. They stated the design of the garage has not been determined yet and indicated they intend to do brick tuck-pointing and other maintenance once they close on the property. They stated all required improvements to the property and conditions will be met. Mr. Lindahl stated that these can be addressed through the CUP conditions. Chair Hunke opened the public hearing. No one came forward to speak. Commissioner Wallace- Jackson moved, Commissioner Hanneman seconded, to close the hearing. The motion was approved unanimously. The hearing was closed at 6:58 p.m. UNOFFICIAL Minutes of the Planning & Zoning Commission, May 23, 2017 – Page 2 Commissioner Wallace-Jackson moved, Commissioner McNeil seconded, to adopt Planning & Zoning Resolution 2017-02, recommending the City Council approve a conditional use permit allowing a residential use on the second floor of 1521 Mainstreet, subject to conditions. The motion was approved 6-1, with Commissioner Newhouse voting nay. OLD BUSINESS - none NEW BUSINESS 1.Planning Application 2017-05-TA, Pawn, Coin and Currency Exchange Zoning Amendment Discussion Mr. Lindahl stated that in view of the Council’s moratorium in January, the upcoming LRT station at Blake Road and the relocation of Pawn America, the goal at this meeting is to update the Commission, discuss the standards of other cities and the state and review present policy—all to provide staff direction for drafting appropriate licensing and zoning standards Mr. Lindahl opened up discussion among the Commissioners. More background on concerns about pawnshops was requested by the Commission. It was asked why pawnshops, currency exchanges and coin dealers were being grouped. Mr. Lindahl stated that they are often grouped, especially pawn shops and coin dealers, because there is the potential of stolen goods to be involved. State licensing is very detailed regarding business operation and background information. The most important concern for local government would be location for these types of businesses to address proximity to children, alcohol sale, parks, Mainstreet, etc., and whether to require a CUP. The Commission questioned the inclusion of currency exchanges, not wanting to limit something that is useful to the immigrant population. Terms “alternative banking” and “payday loans” and how other cities used them were discussed. Also discussed was the regulation of business practices through licensing vs. land use ordinances, the requirements of state licensing and whether local licensing is necessary, especially for currency exchanges, since none of the other cited communities do? The ability of a conditional use permit to address concerns was also discussed. Commissioners stated they don’t want to single out the whole industry, don’t want pawn shops on Mainstreet but don’t want to limit them completely and feel the issue of type and quality of businesses is in the domain of the Council. Mr. Lindahl stated that he and the City Attorney have plans to update the zoning ordinance. Mr. Lindahl asked for recommendations to assist in drafting an ordinance--what are appropriate zoning districts, what should zoning classification be–permitted vs. conditional use, what should zoning standards be–separation, number per population, storefront appearance, etc., and are there other options? Commissioners comments included: eliminate use in B2, with possible exception of coin dealers; change zoning districts where allowed or mandate CUP; City licensing without location standards is necessary, with possible exception of coin dealers and currency exchanges; need more data. Mr. Lindahl stated zoning standards for mixed use are in place for Blake and Downtown stations. Shady Oak station is still being worked through with Minnetonka. None of these uses is allowed in the station areas. Commissioner Hanneman left the meeting. UNOFFICIAL Minutes of the Planning & Zoning Commission, May 23, 2017 – Page 3 2. Election of 2017-2018 Planning Commission Officers Mr. Lindahl stated that this voting time was set when the bylaws were updated and the new terms start at the July meeting. The terms of Commissioners Wallace-Jackson, Warden and Newhouse are up for renewal. All but Commissioner Newhouse want to seek a second term. The Council has identified current Park Board Commissioner Libby Goeman as a new Commissioner, and she has enthusiastically accepted. She will be at the July meeting. Commissioner Warden nominated, Commissioner McNeil seconded, Chair Hunke to continue as Chair. Commissioner McNeil moved, Commissioner Warden seconded, to close the nominations for Chair. The motion was approved unanimously. Commissioner McNeil moved, Commissioner Daly seconded, to elect Chair Hunke to continue as Chair by unanimous consent. The motion was approved unanimously. Commissioner Wallace-Jackson nominated, Commissioner McNeil seconded, Vice Chair Warden to continue as Vice Chair. Commissioner Wallace-Jackson moved, Commissioner McNeil seconded, to close the nominations for Vice Chair. The motion was approved unanimously. Commissioner McNeil moved, Commissioner Daly seconded, to elect Vice Chair Warden to continue as Vice Chair by unanimous consent. The motion was approved unanimously. ANNOUNCEMENTS During the announcements, Mr. Lindahl updated the Planning & Zoning Commission on the following items: 1. Downtown Bike Parking Plan The Council passed a proclamation that Hopkins recognizes May as bike month in conjunction with the national recognition. The City has been promoting bike safety and activity on the website. Staff partnered with Three Rivers at The Depot May 15 for National Bike to Work Week to disseminate information to the public there. The Depot provided free coffee for those who stopped. Mr. Lindahl gave the Commissioners the MN Bicycle Alliance handbook that was distributed. The Police also had a safety camp. The goal of the City’s pedestrian/bike plan was approved a few years ago. In conjunction with the Artery construction, 51 bike racks will be installed in locations throughout the community, with the highest concentration on the Artery. The new Bike rack design is more standardized for functionality and less expensive. The Clock Tower plaza will have covered bike parking and the City is looking for a sponsor of a fix-it station and finding a location for it in town. 2. Citizens Academy and Planning and A Pint/2040 Comprehensive Plan Update Staff has attended several events to interact and gather comp plan surveys. Events include: St. Patrick’s Day at Activity Center (40-50 surveys); reps from Blake Road Collaborative at Ramsgate (30 people); Planning and A Pint; Citizens Academy; National Biking events. Staff is planning to attend the ICA client resource fair June 13. We will continue talking about what activities in the Blake Road area and other civic groups we can connect with. Community Guides were sent out last week to every address in town and the survey was publicized on the web site. UNOFFICIAL Minutes of the Planning & Zoning Commission, May 23, 2017 – Page 4 The City’s web site also highlights a question of the week that has received good feedback. Overall there are 400 responses so far. Will start social media push for Ideas map. The RFQ for a consultant resulted in selecting Bolton & Menk and their partner, the Cunningham Group. Council will review June 6. Staff hasn’t digested all feedback, but generally there are consistent themes. Staff feels we have taken a broad approach and gotten a good amount of feedback. The emphasis now will be to focus on groups we haven’t heard a lot from—civic and Blake Road, for instance. In response to a comment that it is really good that staff is focusing on broader community, not just LRT, and being proactive reaching out to groups who haven’t been as active, Mr. Lindahl stated staff is focusing on community engagement and incorporating it into the comp plan and building a relationship for the future. ADJOURN Commissioner Warden moved, Commissioner Wallace-Jackson seconded, to adjourn the meeting. The motion was approved unanimously. The meeting adjourned at 8:40 p.m. Respectfully submitted, Shannon Smith June 27, 2017 Planning Application 2017-06-CUP Conditional Use Permit for Meadowbrook Golf Course Proposed Action: Move to adopt Planning & Zoning Resolution 2017-03, recommending the City Council amend the existing conditional use permit for Meadowbrook Golf Course allowing the placement and operation of a temporary clubhouse, subject to conditions. Overview The applicant, the Minneapolis Park and Recreation Board (MPRB), requests an amendment to the existing conditional use permit for Meadowbrook Golf Course to allow placement and operation of a temporary clubhouse. According to the applicant, a temporary clubhouse is necessary to reopen the golf course this year after the original clubhouse suffered damage from a ruptured water pipe. The temporary clubhouse will be positioned just off the southeast edge of the parking area at a location that allows for reasonable operation of the course and significant separation from neighbors. The MPRB desires the temporary clubhouse to conveniently serve golfers until a new permanent clubhouse can be constructed. The temporary clubhouse will, in all respects, operate as the former clubhouse did. There are no new features or assets, the hours will not be increased, and the services offered will not be expanded. Should the City approve the proposed CUP amendment, the applicant intends to place and operate the temporary clubhouse until November 1, 2019 or completion of a new permanent clubhouse, whichever comes first. During this time, the applicant intends to plan for and construct a new permanent clubhouse. Staff recommends approval of this request. Primary Issues to Consider • Background • Conditional Use Permit Standards • Alternatives Supporting Documents • Planning & Zoning Commission Resolution 2017-03 • Applicant’s Narrative • Plans _____________________ Jason Lindahl, AICP City Planner Financial Impact: $ N/A Budgeted: Y/N ____ Source: _____________ Related Documents (CIP, ERP, etc.): _________________________________________ Notes: Planning Application 2017-06-CUP Page 2 Background. The subject property is owned by the Minneapolis Park and Recreation Board (MPRB) and has been used for a municipal golf course since 1925. City records indicate the MPRB received a conditional use permit to formalize the golf course use and allow snowmobiling in 1970. The MPRB amended this conditional use permit and received a side yard setback variance to allow construction of a golf cart storage building in 1982. Given the existence of these approvals, staff recommends this application seek to amend the applicant’s existing conditional use permit. According to the applicant, during the winter of 2015-2016 the clubhouse at Meadowbrook Golf Course suffered significant damage when a water pipe ruptured. Because the clubhouse was in winter mode, the break wasn’t discovered for several days. By then, the water damage was significant: main and lower level walls, flooring, insulation, electrical systems, and other building features were damaged beyond repair. Insurance adjusters concurred with the MPRB’s assessment of significant damage. The MPRB is further concerned that the water damage created conditions that could be unhealthy for golfers and MPRB staff. In short, the water damage rendered the building unusable and largely not repairable. The location of the original clubhouse will be filled, leveled, and sodded, and will be maintained as a lawn area until construction of the new clubhouse begins. The temporary clubhouse allows for the operation of the golf course in the same manner as the former clubhouse. There is no increase in use of the course as a result of this structure, and there are no services provided from the temporary clubhouse that were not present on the course when the former clubhouse was being used. The temporary clubhouse will be connected to private electrical and data/communications services, but no permanent connections to city utilities are proposed. A small deck will be constructed to facilitate compliant access to the temporary clubhouse, and a portion of the parking area will be restriped to create reasonable outdoor space related to the temporary clubhouse. Seasonal plantings will be added to provide an attractive appearance. Conditional Use Permit. Conditional use permit applications are considered quasi-judicial actions. In such cases, the City is acting as a judge to determine if the regulations within the Comprehensive Plan, Zoning Ordinance and Subdivision Ordinance are being followed. Generally, if the application meets these requirements they are approved. In evaluating a conditional use permit application, the City shall consider and require compliance with the general conditional use standards detailed in Section 525.13, Subdivision 15, and the specific conditions for outdoor recreation areas outlined in Section 530.09, Subdivision 1.b. A conditional use permit expires one year after it has been issued unless the use for which the permit has been granted is in effect. The City Council may grant extensions not to exceed one year. Once established, if a use granted by conditional use permit ceases to operate for six months, the conditional use granted for that property will expire. The Council may impose conditions and require guarantees in the granting of conditional use permits. Any use permitted under the terms of any conditional use permit shall be established and conducted in conformity to the terms of such permit. Planning Application 2017-06-CUP Page 3 Section 530.09, Subdivision 1.b. Specific standards for outdoor recreation areas in a residential district. b) Outdoor recreation areas not designed and owned as a part of a single family home or two family structure, or not owned or operated by the city, provided that: 1. All accessory or ancillary structures used in connection therewith are located not less than 50 feet from all lot lines; Findings: The proposed location of temporary clubhouse exceeds the 50’ setback requirement. According to the applicant’s site plan, the temporary clubhouse will be located 190’ from the western property line and 250’ from the southern property line. 2. Golf courses shall not include driving ranges and shall have an average of 130 yards or more per hole; Findings: According to the applicant, there is no driving range and the course’s hole length averages over 130 yards. The course is 6500 yards long, which averages 361 yards per hole from the far tees, 274 from the forward tees. 3. Country clubs shall include a golf course; Findings: The subject property does not include a country club. 4. Outdoor game court and swimming pools abutting upon or in any R district shall be fenced and screened by plantings or other suitable screening material, and shall not be lighted between the hours of 11 P.M. and 6 A.M. of the following day. The term game court and pool shall be construed to include all areas bounded by the fencing in connection therewith; Findings: The subject property does not include game courts or swimming pools. 5. All recreation facilities not a part of a PUD shall require a cost report to show the number of families necessary to support such facility. Findings: The subject property does not include a planned unit development (PUD) approval. Section 525.13, Subdivision 15. General conditional use permit standards. a) Consistency with the elements and objectives of the City's development plan, including the comprehensive plan and any other relevant plans at the time of the request. Finding: The existing outdoor recreation use (golf course) is consistent with the comprehensive plan. The City’s future land use map guides the subject property as Open Space. The property is zoned R-1-C, which allows outdoor recreation through a conditional Planning Application 2017-06-CUP Page 4 use permit. The proposed temporary clubhouse is acceptable as a short-term structure that will be in place no longer than November 1, 2019. b) Consistency with this ordinance. Finding: The size and placement of the temporary clubhouse are consistent with the lot and building standards for R-1-C district and the conditional use standards for outdoor recreation uses. Lot & Building Standards for the R-1-C Single Family Medium Density District Standard Requirement Existing Lot Area 20,000 square feet 2,790,855 square feet (64 acres) Lot Width 80 feet 1,285 feet Front Setback 50 foot* 190 feet Rear Setback 50 feet* 1,000 feet Side Setback 50 feet* 250 feet Principal Building Height 35 feet (maximum) 25 feet *See conditional use permit standards Section 530.09, Subdivision 1.b c) Creation of a harmonious relationship of buildings and open spaces with natural site features and with existing and future buildings having a visual relationship to the development. Finding: Staff finds the proposed temporary clubhouse will not significantly alter the existing relationship of buildings and open space with natural site features or their visual relationship to the development. However, there should only be one clubhouse on the site at a time. The construction of future buildings may require the re-evaluation of this CUP and removal of the proposed temporary clubhouse. d) Creation of a functional and harmonious design for structures and site features, with special attention to the following: 1.) An internal sense of order for the buildings and uses on the site and provision of a desirable environment for occupants, visitors and the general community. Finding: Staff finds the proposed temporary clubhouse will not impact the internal sense of order for the buildings and uses on the site. Use of the temporary clubhouse beyond November 1, 2019, could create an undesirable environment for occupants, visitors and the general community. 2.) The amount and location of open space and landscaping. Finding: The proposed temporary clubhouse will not impact the amount and location of open space. Seasonal plantings will be added to provide an attractive appearance. 3.) Materials, textures, colors and details of construction as an expression of the design concept and the compatibility of the same with the adjacent and neighboring structures and uses. Planning Application 2017-06-CUP Page 5 Finding: The exterior materials and details of construction are acceptable for the short- term nature of the applicant’s request (placement and operation until November 1, 2019). However, in the long term the exterior material and details of construction for the temporary clubhouse are incompatible with the adjacent structures on site and neighboring residential uses. 4.) Vehicular and pedestrian circulation, including walkways, interior drives and parking in terms of location and number of access points to the public streets, width of interior drives and access points, general interior circulation, separation of pedestrian and vehicular traffic and arrangements and amount of parking. Finding: The site will have adequate vehicle and pedestrian circulation. The temporary clubhouse will be positioned just off the southeast edge of the parking area and will operate as the former clubhouse did. The existing parking area and pedestrian trails provide adequate access to this location. e.) Promotion of energy conservation through design, location, orientation and elevation of structures, the use and location of glass in structures and the use of landscape materials and site grading. Finding: Given the applicant is proposing a temporary clubhouse, staff finds that it is unnecessary to promote energy conservation. Use of this temporary clubhouse beyond November 1, 2019, should prompt a re-evaluation of how the temporary clubhouse promotes energy efficiency. f.) Protection of adjacent and neighboring properties through reasonable provision for surface water drainage, sound and sight buffers, preservation of views, light and air and those aspects of design not adequately covered by other regulations which may have substantial effects on neighboring land uses. Finding: Given the interim nature and proposed location of the temporary clubhouse, it is unnecessary to require additional protection for adjacent and neighboring properties with these provisions. Should the temporary clubhouse be in place longer than November 1, 2019, the site should be re-evaluated. g.) The use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor tend to or actually diminish and impair property values within the neighborhood. Finding: The proposed temporary clubhouse should not be injurious to the use and enjoyment of other property in the immediate vicinity or diminish and impair property values within the neighborhood provided it is removed as scheduled by November 1, 2019. Should the proposed temporary clubhouse remain in place longer than this date, the site should be re-evaluated. h.) In Institutional zoning districts, the Conditional Use Permit application shall comply with the standards, conditions and requirements stated in Section 542.03 of this Ordinance. Finding: Section 542.03 provides for standards related to a conditional use that includes Planning Application 2017-06-CUP Page 6 demolition or removal of dwelling units and does not apply to this application. i.) Traffic impacts such as increases in vehicular traffic, changes in traffic movements, traffic congestion, interference with other transportation systems or pedestrian traffic, and traffic hazards shall be considered by the Planning & Zoning Commission and City Council in evaluating an application for a Conditional Use Permit. Finding: The temporary clubhouse will be positioned just off the southeast edge of the parking area and will operate as the former clubhouse did. The existing parking area and pedestrian trails are adequate to vehicle and pedestrian access to and from the site. Building Inspection Comments. After reviewing plans for the proposed temporary clubhouse at Meadowbrook Golf Course, the Building Inspections Department offers the following comments: 1. Building and site shall be accessible per 2015 MN Accessibility Code 2. Structure will have to be connected to City Water and Sewer 3. Building Permit is required 4. Two full-size copies of building plans shall be submitted for review 5. SAC Determination letter from Met Council Environmental Services is required Alternatives 1. Recommend approval of the conditional use permit amendment. By recommending approval of this amendment, the City Council will consider a recommendation of approval. 2. Recommend denial of the conditional use permit amendment. By recommending denial of this amendment, the City Council will consider a recommendation of denial. If the Planning Commission considers this option, findings will have to be identified that support this alternative. 3. Continue for further information. If the Planning Commission indicates that further information is needed, the item should be continued. CITY OF HOPKINS Hennepin County, Minnesota PLANNING & ZONING COMMISSION RESOLUTION 2017-03 A RESOLUTION RECOMMENDING THE CITY COUNCIL APPROVE AN AMENDMENT TO THE EXISTING CONDITIONAL USE PERMIT FOR MEADOWBROOK GOLF COURSE ALLOWING THE PLACEMENT AND OPERATION OF A TEMPORARY CLUBHOUSE WHEREAS, the applicant, the Minneapolis Parks and Recreation Board, initiated an application to amend their existing conditional use permit (CUP) for Meadowbrook Golf Course to allow the placement and operation of a temporary clubhouse at 201 Meadowbrook Road; WHEREAS, the property is legally described as follows: THAT PART OF MEADOWBROOK GOLF COURSE EMBRACED WITHIN THAT PART OF E 1/2 OF SW1/4 OF SEC 20 T 117 R 21 LYING SLY OF CENTER LINE OF EXCELSIOR ROAD SUBJECT TO ROAD WHEREAS, the procedural history of the application is as follows: 1. That a conditional use permit application was initiated by the applicant on May 26, 2017; 2. That the Hopkins Planning and Zoning Commission, pursuant to published and mailed notice, held a public hearing and reviewed such application on June 27, 2017: all persons present were given an opportunity to be heard; 3. That the written comments and analysis of City staff were considered; and, WHEREAS, staff recommended approval of the conditional use permit based on the findings outlined in the staff report dated June 27, 2017. NOW, THEREFORE, BE IT RESOLVED that the Planning & Zoning Commission of the City of Hopkins hereby recommends the City Council approve an amendment to the existing conditional use permit for Meadowbrook Golf Course allowing a temporary clubhouse at 201 Meadowbrook Road, subject to the conditions listed below. 1. The applicant shall enter into a development agreement with the City. 2. Issuance of a building permit for the temporary clubhouse and conformance with all conditions. 3. Conformance with the building and fire codes. 4. Conformance with all conditional use permit standards in Section 525.13, Subdivision 15, and the specific conditions for outdoor recreation areas outlined in Section 530.09, Subdivision 1.b. 5. The applicant intends to place and operate the temporary clubhouse until November 1, 2019, or completion of a new permanent clubhouse, whichever comes first. 6. The proposed temporary clubhouse shall be removed by November 1, 2019, or after construction of a new clubhouse, whichever comes first. 7. This conditional use permit expires one year after it has been issued unless the use for which the permit has been granted is in effect. 8. Once established, if a use granted by conditional use permit ceases to operate for six months, the conditional use granted for that property will expire. 9. The applicant shall submit a landscape security equal to 1.5 times the cost of the seasonal landscaping. 10. The proposed temporary clubhouse shall be connected to City sewer and water utilities. Adopted this 27th day of June 2017. _________________________ Brian Hunke, Chair REQUEST FOR CONDITIONAL USE PERMIT Meadowbrook Golf Course 201 Meadowbrook Road Submitted by the Minneapolis Park and Recreation Board 9 June 2017 Macintosh HD:Users:michaelschroeder:Desktop:MPRB:Golf courses:Meadowbrook:Clubhouse:Request for Conditional Use Permit, 20170609.docx Background During the winter of 2015-2016, the clubhouse at Meadowbrook Golf Course suffered significant damage when a water pipe ruptured. Because the clubhouse was in winter mode, the break wasn’t discovered for several days. By then, the water damage was significant: main and lower level walls, flooring, insulation, electrical systems, and other building features were damaged beyond repair. Insurance adjusters concurred with the MPRB’s assessment of significant damage. The MPRB is further concerned that the water damage created conditions that could be unhealthy for golfers and MPRB staff. In short, the water damage rendered the building unusable and largely not repairable. The building dates to 1925, with several additions occurring since it was first constructed. While the building has been generally serviceable, it does not meet contemporary needs for the golfers and fails to meet requirements for accessibility. The water damage served to further highlight these deficiencies. The combination of significant damage, building age, and lack of conformance with contemporary needs suggests the need for a new clubhouse building. The MPRB anticipates a process of at least three years to plan and implement a replacement clubhouse. The process includes removal of the existing and un- occupiable clubhouse, which is already underway, the creation of a temporary clubhouse to support golfers, and the design and construction of a new clubhouse. As plans for the permanent clubhouse evolve, the MPRB is committed to engaging Meadowbrook’s neighbors and golfers, as well as staff at the city. Proposal The MPRB intends to reopen Meadowbrook Golf Course during Summer 2017. To effectively operate the course, a temporary clubhouse is proposed to be located just off the southeast edge of the existing parking area. The temporary clubhouse will be a portable building measuring 12 feet by 60 feet, or 720 square feet (approximately one-fifth the square footage of the former clubhouse). Services provided from the temporary clubhouse will be limited to point-of-sale operations for the golf course, limited vending, seating areas for golfers, and office space for golf course staff. Kitchen and locker rooms will not be provided as part of the temporary clubhouse. Attachment ‘A’ indicates the proposed location of the temporary clubhouse, as well as the location of the former clubhouse. Attachment ‘B’ demonstrates the character of the temporary clubhouse. The temporary clubhouse will be connected to private electrical and data/communications services, but no permanent connections to city utilities are proposed. A small deck will be constructed to facilitate compliant access to the temporary clubhouse and a portion of the parking area will be restriped to create reasonable outdoor space related to the temporary clubhouse. Seasonal plantings will be added to provide an attractive appearance. The location of the former clubhouse will be filled, leveled, and sodded, and will be maintained as a lawn area until construction of the new clubhouse begins. The temporary clubhouse will be used seasonally, generally operating during periods of golf course play. Seasonal start-up and shut down activities will require staffing beyond the golf season. The temporary clubhouse is intended to remain in place for at least three years while the MPRB plans and constructs a new clubhouse. Request The property is zoned R-1-C (Single Family Medium Density District) and is guided as Open Space in the City of Hopkins Comprehensive Plan. In discussions with city staff, the MPRB understands a temporary structure in an R-1-C District requires a Conditional Use Permit under the City of Hopkins’ zoning ordinance. As a result, the MPRB is requesting a Conditional Use Permit to allow the placement and operation of a temporary clubhouse, as described above, for a period of at least three years. The ownership of the property and its alignment with requirements of the zoning ordinance requires some interpretation. The MPRB is a semi-autonomous governmental entity created by an act of the Minnesota Legislature in 1883. In nearly every respect, the MPRB functions as a municipal government entity; that the MPRB owns and operates a facility beyond the corporate limits of the Minneapolis may present difficulty in interpretation of the code. However, the MPRB is committed to pursuing the city’s Conditional Use Permit process as it likely establishes the most clear and supportable path for review of our proposal given the unique nature of the MPRB and its presence in the City of Hopkins. Conditions supporting the request This request does not change the current or future use of the property. The MPRB intends to perpetuate the property’s current use as a golf course and has spent portions of 2016 and 2017 restoring the course to its 2014 pre-flood conditions. The introduction of the temporary clubhouse does not change the use of the property, nor will it result in another permanent structure on the property. Its presence on the property will overlap with the eventual construction of a replacement clubhouse, a period which the MPRB estimates to be less than six months given the seasonal use of the temporary clubhouse. The temporary clubhouse will be positioned just off the southeast edge of the parking area at a location that allows for reasonable operation of the course and significant separation from neighbors. The MPRB desires the temporary clubhouse to conveniently serve golfers until a new permanent clubhouse can be constructed. The temporary clubhouse will, in all respects, operate as the former clubhouse did. There are no new features or assets, the hours will not be increased, and the services offered will not be expanded. The temporary clubhouse allows for the operation of the golf course in the same manner as the former clubhouse. There is no increase in use of the course as a result of this structure, and there are no services provided from the temporary clubhouse that were not present on the course when the former clubhouse was being used. June 27, 2017 Planning Application 2017-05-TA Pawnshops, Currency Exchanges and Coin Dealers and Zoning Amendment Proposed Action: Staff requests the Planning & Zoning Commission review the attached draft revised zoning standards for pawnshop, currency exchange and coin dealer uses and provide feedback. Overview This application was initiated by staff to review and update the zoning standards for pawnshop, currency exchange and coin dealer uses. In January, the City Council approved a one-year moratorium to give City staff sufficient time to study these uses, evaluate various options for regulation, and protect the planning process and the health, safety and welfare of Hopkins’ citizens. Last month, the Commission reviewed both zoning and licensing standards and directed staff to draft revised zoning standards and bring them back for further review and discussion (see attached). During the meeting, staff will review this information and ask for further feedback. Primary Issues to Consider • Planning & Zoning Commission Action • Legal Authority • Background • Hopkins Standards for Pawnshops, Currency Exchanges and Coin Dealers • Metro Communities Standards for Pawnshops, Currency Exchanges and Coin Dealers Supporting Documents • Draft Revised Zoning Standards for Pawnshops, Currency Exchanges and Coin Dealers • Hopkins City Code Section 1180 - Pawnshops • Minnesota Statute 325J – Pawnbrokers • Minnesota Statute 53A – Currency Exchanges • Minnesota Statute 80G – Bullion Product Dealers (Coin Dealers) • City of Bloomington – Pawnbrokers • City of Eden Prairie – Pawnbrokers and Precious Metal Dealers • City of Minnetonka - Pawnbrokers, Precious Metal Dealers and Secondhand Dealers • City of St. Louis Park – Pawnshops, Payday Loans and Currency Exchange Standards _____________________ Jason Lindahl, AICP City Planner Financial Impact: $ N/A Budgeted: Y/N ____ Source: _____________ Related Documents (CIP, ERP, etc.): _________________________________________ Notes: Planning Application 2017-05-TA Page 2 Primary Issues to Consider Planning & Zoning Commission Action. During their regular meeting on May 23, 2017, the Commission reviewed zoning and licensing standards for pawnshops, currency exchanges and coin dealers for Hopkins, selected metropolitan communities and the State of Minnesota. During that discussion, staff reviewed each of these regulations and asked the Commission for comments on appropriate zoning districts, classification (permitted vs. conditional use), and standards (separation, number per population, storefront appearance, etc.). Commissioners comments included: St. Louis Park provided the best model for zoning and licensing standards; with the possible exception of coin dealers, these uses should be eliminated from the B-2 zoning district and along Mainstreet; change zoning districts where practical or mandate CUP; City licensing standards should address business operation not zoning standards; the City Council should consider whether Hopkins should require a city license for these uses in addition to the state licensing requirements. Draft zoning regulations reflecting these comments are attached for further discussion and comment. The Commission’s comments about licensing will be forwarded to the City Council for further consideration. Legal Authority. Zoning Code amendments are legislative actions in that the City is creating new standards to regulate the development of certain types of uses and/or structures. Under the law, the City has wide flexibility to create standards that will ensure the type of development it desires; however, zoning regulations must be reasonable and supported by a rational basis relating to promoting the public health, safety and welfare. Background. In January, the City Council approved Interim Ordinance 2016-1118, placing a one-year moratorium on pawnshops, currency exchanges and coin dealerships. This moratorium was put in place because plans to extend the Metro Green Line though Hopkins include acquisition of the City’s only pawnshop, which will likely facilitate this business relocating to another site within the community. As a result, the City believes this is the appropriate time to review the development regulations for these businesses. Furthermore, the City believes that regulation of pawnshops, currency exchanges, and coin dealerships deserves careful reconsideration because these industries have the potential for the presence of stolen goods, as well as the possibility of questionable lending practices. In addition, the City has concerns regarding the potential for these businesses to develop into nuisance properties and create problems for law enforcement. Moreover, the City is aware of various business practices associated with pawnshops, currency exchanges, and coin dealerships that can take advantage of individuals who are vulnerable. Hopkins Standards. Currently, pawnshops, currency exchanges and coin dealers are all governed by Section 535 – Business Districts and state law. In Hopkins, pawnshops are also required to maintain a business license. A summary of the local and state regulations for each of these uses is provided below. Planning Application 2017-05-TA Page 3 Hopkins Standards for Pawnshops, Currency Exchanges and Coin Dealers Use Zoning District License State Statute Pawnshops Permitted Use B-2, Central Business B-3, General Business Required Chapter 325J Currency Exchanges Conditional Use B-2, Central Business N/A Chapter 53A Coin Dealers Permitted Use B-1, Limited Business B-2, Central Business N/A Chapter 80G Pawnshops are a permitted use in the B-2, Central Business, and B-3, General Business, districts and require a business license under Section 1180 – Pawnshops. In addition to being limited to the B-2 and B-3 zoning districts, the licensing standards prohibit pawnshops from locating within 1,000 feet of any adult business or within 350 feet of any off-sale liquor (bar, restaurant) business. Pawnshops are also regulated under Minnesota Statute 325J. Currently, the only pawnshop in Hopkins is Pawn America, located at 168 Blake Road North. This property is scheduled to be acquired by Metropolitan Transit to make way for the Blake Road light rail station. Currency exchanges are a conditional use in the B-2, Central Business, district, but do not require a business license. The zoning ordinance defines currency exchange as “any person, except a bank, trust company, savings bank, savings and loan association, credit union, industrial loan and thrift company, who is engaged in the business of cashing checks, drafts, money orders or traveler’s checks for a fee. Currency exchange does not include a person who provides their services incidental to the person’s primary business if the charge for cashing a check or draft does not exceed one dollar ($1.00) or one percent of the value of the check or draft, whichever is greater, as defined in Minnesota Statutes, Section 53A.01.” Currently, there are two currency exchange uses in Hopkins. There are MoneyGram businesses located within the Casablanca Market at 716 - 11th Avenue South and the US Grocery & Tobacco store at 520 Blake Road North. Currency exchange businesses are also regulated under Minnesota Statute 53A – Currency Exchanges. The state standard primarily addresses business operation; however, they do include a distance limitation requiring a minimum one-half mile separation between currency exchange businesses. Coin dealers are a permitted use in the B-1, Limited Business, and B-2, Central Business, districts. They are also regulated by Minnesota Statute 80G – Bullion Products Dealers. Hopkins zoning regulations address where these businesses may locate but do not require a business license. Like currency exchange uses, the state standards for coin dealers primarily addresses business operation. Standards in Other Communities. Staff consulted with the City Attorney and surveyed other communities throughout the metropolitan area regarding their regulations for pawnshops, currency exchanges and coin dealers. These findings are detailed in the table below. Of the communities surveyed, they all license pawnshops and coin dealers (precious metal dealers) except Edina, which prohibits these uses. Pawnshops and coin dealers are also conditional uses in Bloomington and St. Louis Park. Planning Application 2017-05-TA Page 4 Metro Area Cities Standards for Pawnshops, Currency Exchanges and Coin Dealers Community Pawnshop Currency Exchanges Coin Dealers Bloomington License CUP in B-2 Verify State License Permitted in B-2 Accessory in C-2 License CUP in B-2 Eden Prairie License Permitted in Regional Commercial and Regional Service N/A License Permitted in Regional Commercial and Regional Service Edina Prohibited Prohibited Prohibited Minnetonka License Prohibited in Residential N/A License Prohibited in Residential St. Louis Park License CUP in C-2 No License CUP in C-2 License CUP in C-2 Eden Prairie and Minnetonka do not regulate currency exchanges, although state law would still apply in these communities. St. Louis Park does not require a license but limits currency exchanges through zoning to a conditional use in their C-2 district. Edina prohibits these uses. Hopkins City Code (Rev. 12/11) 1180.01 Section 1180 - Pawnshops 1180.01 Definitions: Subdivision 1. The following terms when used in this section shall have the following meanings unless the context clearly indicates otherwise: Subd. 1. Issuing Authority: The City of Hopkins Subd. 2. 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 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 section shall be applicable. Subd. 3. Pawnshop: Any business establishment used or operated by a pawnbroker. Subd. 4. Reportable Transaction: Every transaction conducted by a pawnbroker in which merchandise is received through a pawn, purchase, consignment or trade, or in which a pawn is renewed, extended or redeemed, or for which a unique transaction number or identifier is generated by the point-of- sale software, is reportable except: 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. 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. 5. Billable Transaction: 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. Subd. 6. Chief of Police or Police Officer: City of Hopkins Police Chief, police officer or designee. Subd. 7. Minor: Any natural person under the age of eighteen (18) years. Subd. 8. Licensee: The person to whom a license is issued under this Section including any agents or employees of the person. 1180.02 Location. No license will be issued to a location that is located less than 1000 feet from any adult business as regulated by section 1165 of this City Code, nor shall any license be issued to a location that is less than 350 feet from any off-sale liquor business. (Added by Ord. 2003-899) Section 1180 1 Hopkins City Code (Rev. 03/02) 1180.03 1180.03 License Required. Subdivision 1. No person shall exercise, carry on, or be engaged in the trade or business of pawnbroker within the City unless such person is currently licensed under this Section. Subd. 2. Application Content. Every application for a license under this Section shall be made on a form supplied by the City of Hopkins and be filed with the City Clerk. The application shall state whether the applicant is a natural person, corporation, partnership or other form of organization. 1) If the applicant is a natural person: 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 certification 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 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. j) 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 this Subdivision. 2) If 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) 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. Section 1180 2 Hopkins City Code (Rev. 03/02) 1180.03, Subd. 2 3) If applicant is a corporation or other organization: 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 in Minnesota Statutes, Section 303.06, shall 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. 4) For all applicants: a) Whether the applicant holds a current pawnbroker license from any other governmental unit. b) Whether the applicant has previously been denied, or had revoked or suspended a pawnbroker license from any other government unit. c) The names, street resident addresses, and business addresses of three (3) character references, who are of good moral character and who are not related to the applicant or not holding any ownership in the premises or business. d) The location of the business premises. e) The legal description of the premises to be licensed, together with a plot plan of the area for which the license is sought showing dimensions, location of buildings, and street access parking facilities. f) Such other information as the City Council or issuing authority may require. Subd. 3. Application Execution. All applications for a license under this Section must be signed and sworn to under oath of 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. If the applicant is a partnership, the application, license and bond shall be made and issued in the name of all partners. Any false statement on an application shall result in denial of the application. Subd. 4. Application Investigation. At the time of making an initial or renewal application, the applicant shall, in writing, authorize the Hopkins Police Department to investigate all facts set out in the application and do a personal background and criminal record check on the applicant. The applicant shall further authorize the Hopkins Police Department to release information received from such investigation to the City Council. The applicant shall have an opportunity to review such information before it is released to the City Council. Section 1180 3 Hopkins City Code (Rev. 03/02) 1180.03, Subd. 5 Subd. 5. 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 within fourteen (14) days. The application must include all appropriate information required in Subdivision 3 of this Section. 1180.05 Vote Required. After such investigation, the City Council shall grant or refuse the applicant. 1180.07 Restrictions Regarding License Transfer. Subdivision 1. Each license under this Section shall be issued to the applicant only and shall not be transferable, except as allowed in the following statements regarding corporations, partnerships, or associations: a) Licenses issued to corporations shall be valid only so long as there is no change in the officers or ownership interest of the corporation unless such change is approved by the Council, in which event said license shall continue in force until the end of the then current license year. b) Licenses issued to partnerships or associations shall be valid only so long as there is no change in the partnership or association agreement or in the ownership of said partnership or association unless such change is approved by the Council, in which event said license shall continue in force until the end of the then current license year. c) Corporation, partnerships or associations shall submit written notice to the Clerk of any such changes described herein on or before sixty (60) days prior to the effective date of any such change and pay a fee required for an amendment to the license. In the case of a corporation, the licensee shall submit written notice to the Clerk when a person not listed in the initial application will be acquiring an interest and shall give all information about said person as is required of a person pursuant to the provisions of this Section. Subd. 2. Each license shall be issued only for the premises described in the application and shall not be transferable to a different location. No licensee shall loan, sell, give, or assign a license to another person. 1180.09. Expiration of License. All licenses shall expire as of midnight on July 30th of the year of issuance. 1180.11. Renewal Application. Applications for renewal of an existing license shall be made to the City Clerk at least ninety (90) days prior to the expiration date of the license and shall be made on such forms as the City requires. The application shall state that the information in the prior application remains true and correct, except as otherwise indicated. The City will mail application forms to existing licensees approximately one hundred twenty (120) days prior to expiration of the licenses. If, in the judgment of the Council, good and sufficient cause is shown by any applicant for failure to file for a renewal within the time period provided, the Council may, if the other provisions of this Section are complied with, grant the application. Section 1180 4 Hopkins City Code (Rev. 03/02) 1180.13 1180.13 Persons Ineligible for a License. No license under this Section shall be issued if the applicant, any general partner or managing partner of a partnership, or a manager, proprietor, or agent in charge of a corporation or other organization: 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 Statute 364.03, Subd. 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minnesota Statutes 364.03, Subd.3. c)Is not a citizen of the United States or a resident alien; d)Holds an intoxicating liquor license under Chapter XII of this Code; or e)In the judgment of the Council, is not the real party in interest or beneficial owner of the business operated, or to be operated, under the license. 1180.15 Fees. Subdivision 1. The Hopkins City Council shall, by resolution, set the annual license fee, investigation fee, billable transaction fee and fee for an amendment to the license for pawnshops. Subd. 2. License Fee: The annual license fee shall be paid in full before the application for a license is accepted. Upon rejection of any application for a license or upon withdrawal of an application before approval of the issuance by the Council, only the license fee shall be refunded to the applicant except where rejection is for a willful statement in the license application. Subd. 3. Investigation Fee: An applicant for any license under this Section shall pay the City of Hopkins at the time an original application is submitted, a nonrefundable fee to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to assure compliance with this Section. Subd. 4. Billable Transaction Fee: The billable transaction fee shall reflect the cost of processing transactions and other related regulatory expenses as determined by the City Council. 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 Section. Subd. 5. Renewal Fee: The annual license fee for renewal of a license shall be paid in full at the time the renewal application is filed with the Clerk. 1180.17 Bond Required. At the time of filing an application for a license, the applicant shall file a bond in the amount of five thousand dollars ($5,000) with the City Clerk. The bond, with a duly licensed surety company as surety thereon, must be approved as to form by the City Attorney. Said bond must be conditioned that the licensee shall observe the ordinances of the city, in relation to the business of pawnbroker, and that the licensee will account for and deliver to any person legally entitled thereto any articles which may have come into the possession of the licensee as pawnbroker or in lieu thereof such licensee shall pay the person or persons the reasonable value thereof. This bond shall contain a provision that no bond may be canceled except upon thirty (30) days written notice to the city. Section 1180 5 Hopkins City Code (Rev. 03/02) 1180.19 1180.19. 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 department: 1) A complete and accurate description of each item including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item. 2) The purchase price, amount of money loaned upon, or pledged therefore. 3) The maturity date of the transaction and the amount due, including monthly and annual interest rates and all pawn fees and charges. 4) Date, time and place the item of property was received by the licensee, and the unique alpha and/or numeric transaction identifier that distinguishes it from all other transactions in the licensee’s records. The identifiers shall be consecutively numbered and for the purpose of the reporting requirements shall include any identifiers that may have been voided. 5) Full name, current residence address, current residence telephone number, date of birth and accurate description of the person from whom the item of 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 issued by another state or province of Canada. 7) The signature of the person identified in the transaction. 8) Effective sixty (60) days from the date of notification by the police department of acceptable video standards, 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. c) 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 so that they relate. Such photographs must be available to the Chief of Police, or the Chiefs 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. d) 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 orally and by displaying a sign of sufficient size in a conspicuous place on the premises. Licensee must keep the exposed videotape for three (3) months unless requested by the police department to keep the tape longer. Section 1180 6 Hopkins City Code (Rev. 03/02) 1180.19 9) Digitized photographs. Effective sixty (60) days from the date of notification by the Police department, licensees must fulfill the color photograph requirements in Subd. 14, #8 by submitting them as digital images, in a format specified by the police department, electronically cross-referenced to the reportable transaction they are associated with. Notwithstanding the digital images may be captured from the required video recordings, this provision does not alter or amend the requirements in #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. 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 three (3) months. 1180.21 Daily Reports to Police. Effective no later than sixty (60) days after the police department provides licensees with computerized records standards, licensees must submit every reportable transaction to the police department daily in the following manner: 1) Licensees must provide the police department all information required in Subd. 14 (1) through (6) and other required information, by transferring it from their computer to an automated pawn system 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 City using procedures that address security concerns of the licensees and the City. The licensee must display a sign of sufficient size, in a conspicuous place on the premises, which informs all patrons that all transactions are reported to the Police Department daily. 2) Billable transaction fees. Licensees will be charged for each billable transaction reported to the Police Department. 3) If a licensee 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 videotape(s) for that date by 12:00 the next business day. If the problem is determined to be 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 provided for herein, but may be charged an additional fee as established by the City Council for each transaction submitted in this manner after the close of the first business day following the day of failure. If the problem is determined to be outside the licensee’s system, the licensee must continue to provide the information as provided for herein and resubmit all such transactions via modem when the error is corrected, but shall not be subject to any additional charge. 4) If a licensee is unable to capture, digitize or transmit the photographs required in this subdivision, the licensee must immediately take all required photographs with a still camera, develop the pictures, cross-reference the photographs to the correct transaction, and make the pictures available to the Police Department upon request. 5) Regardless of the cause or origin of the technical problems that prevented the licensee from uploading their transactions, upon correction of the problem, the licensee shall upload every reportable transaction from every business day the problem had existed. 6) Notwithstanding any other provisions herein, the Police Chief, or the Chiefs designee, upon presentation of extenuating circumstances, may extend the period before any additional charges are imposed for the manual reporting of billable transactions. Section 1180 7 Hopkins City Code (Rev. 12/11) 1180.23 1180.23 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, current residence address, current residence telephone number, and date of birth of the pledger or seller. 10) The identification number and state of issue from any of the following forms of identification of the seller: a) Current valid Minnesota driver’s license. b) Current valid Minnesota identification card. c) Current valid photo identification card issued by another state or a province of Canada. 11) Description of the pledger or seller including height, weight, sex, race, color of eyes and color of hair. 12) The signature of the pledger or seller. 13) All printed statements as required by State Statute 325J.04, Subdivision 2, or any other applicable statutes. 1180.25 Redemption Period. Any person pledging, pawning, or depositing an item for security must have sixty (60) days from the day of that transaction or any renewal or extension, to redeem the item before it may be forfeited and sold. 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 the approval of the Police Department. Written authorization for release of property to persons other than the original pledger must be maintained along with original transaction record. (Amended Ord. 2011-1043) 1180.27 Holding Period. Any item purchased or accepted in trade by a licensee must not be sold or otherwise transferred for thirty (30) days from the date of the transaction. (Amended Ord. 2011-1043) Section 1180 8 Hopkins City Code (Rev. 03/02) 1180.29 1180.29 Police Order to Hold Property. Subdivision 1. Investigative Hold. Whenever 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 #2 and #3 of this subdivision, whichever comes first. Subd. 2. Order to Hold. Whenever the Chief of Police, or the Chiefs 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 Chiefs designee. The order to hold shall expire ninety (90) days from the date it is placed unless the Chief of Police or the Chiefs 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 Chief or Chiefs designee may: a) Physically confiscate and remove it from the shop, pursuant to written order from the Chief or the Chiefs designee, or b) Place the item on hold or extend the hold as provided in #2 of this subdivision, and leave the item in the shop. Subd. 4. 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. 5. When an order to hold/confiscate is no longer necessary, the Chief of Police or Chiefs designee shall so notify the licensee. 1180.31 Inspection of Items. At all times during the term of the license, the licensee must allow the Chief of Police or the Chiefs designee(s) to enter without notice the premises where the licensed business is located 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 Section or other applicable laws. 1180.33 Label Required. Licensees much 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. 1180.35 Prohibited Acts. Subdivision 1. 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. Subd. 2. No licensee shall receive any goods from a person of unsound mind or an intoxicated person. Subd. 3. No licensee may receive any goods, unless the seller presents identification in the form specified in #6 of Subd. 14. Section 1180 9 Hopkins City Code (Rev. 03/02) 1180.35, Subd. 4 Subd. 4. 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 it serial number removed. Subd. 5. No person may pawn, pledge, sell, consign, leave, or deposit any article of property not their own; nor shall any person pawn, pledge, sell, consign, leave, or deposit the property of another, whether with permission or without; nor shall any person pawn, pledge, sell, consign, leave, or deposit any article of property in which another has a security interest; with any licensee. Subd. 6. All customers of a pawnshop will give their current residence address and current residence telephone number as part of their transaction. 1180.37 License Requirements. Subdivision 1. Hours of Operation. No licensee shall keep the establishment open for the transaction of business on any day of the week before 7:00 AM or after 10:00 PM. Subd. 2. License Display. A license issued under this ordinance must be posted in a conspicuous place on the premises for which it is issued. The license issued is only effective for the complete and contiguous space specified in the approved license application. Subd. 3. Maintenance of Order. A licensee under this ordinance shall be responsible for the conduct of the business being operated and shall maintain conditions of order. Subd. 4. Method of Payment. When a pawnbroker accepts an item for purchase or as security for a loan, payment for any article deposited, left, pledged or pawned shall be made only by a check, draft, or other negotiable or non-negotiable instrument or order of withdrawal which is drawn against funds held by a financial institution. The licensee may cash the check. Subd. 5. Inspection by Claimed Owner. All goods, ware or merchandise coming into the possession of any licensee, under the terms thereof, shall at all times by open to inspection and right of examination of any person claiming to have been the owner thereof or claiming to have had any interest therein when such person is accompanied by a police officer. Subd. 6. Sign. Licensee shall post an adequate sign visible to customers. For the purpose of this section, an “adequate” sign shall be deemed to mean at the least one sign of not less than four (4) square feet in surface area, comprised of lettering of not less than three-quarters (3/4) of an inch in height, posted in a conspicuous place on the licensed premises and stating substantially the following: TO PAWN OR SELL PROPERTY: YOU MUST BE AT LEAST 18 YEARS OF AGE YOU MUST GIVE YOUR CURRENT RESIDENCE ADDRESS AND TELEPHONE NUMBER YOU CANNOT PAWN ANY PROPERTY FOR ANOTHER PERSON YOU MUST BE THE TRUE OWNER OF THE PROPERTY THE PROPERTY MUST BE FREE OF ALL CLAIMS AND LIENS YOU MUST PRESENT VALID PHOTO IDENTIFICATION VIOLATION OF ANY OF THESE REQUIREMENTS IS A CRIME! Section 1180 10 Section 1180 11 Hopkins City Code (Rev. 03/02) 1180.39 1180.39. Denial, Suspension or Revocation. Any license under this section may be denied, suspended or revoked for one or more of the following reasons: 1) The proposed use does not comply with the City of Hopkins zoning code. 2) The proposed use does not comply with any health, building, building maintenance or other provisions of state or local laws or ordinances. 3) The applicant or licensee has failed to comply with one or more provisions of this section. 4) 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. 5) Fraud, misrepresentation or bribery in securing or renewing a license. 6) Fraud, misrepresentation or false statements made in the application and investigation for, or in the course of, the applicant’s business. 7) 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. 8) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this section. 1180.41 Hearing Required. Except in the case of a suspension pending a hearing on revocation, a revocation or suspension of a license by the City Council shall be preceded by a public hearing conducted in accordance with Minnesota Statute 15.0418 to 15.0426. The City Council may appoint a hearing examiner or may conduct a hearing itself. The hearing notice shall be given at least ten (10) days prior to the hearing, including notice of the time and place of the hearing, and shall state the nature of the charges against the licensee. 1180.43 Separability Should any subdivision, 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. 1180.45 Adoption of the Pawnbroker Regulation Act. To the extent the requirements of this ordinance are less restrictive than the provisions of the Pawnbroker Regulation Act, the regulatory provisions of said Act, codified in Minnesota State Statutes, are hereby adopted and incorporated herein and made part of this code as completely as if set out in full. Amended in its entirety by Ordinance 2002-865 Amended by Ordinance 2011-1043 CHAPTER 325J PAWNBROKERS DEFINITIONS.325J.01 MUNICIPAL LICENSING AND REGULATION.325J.02 LICENSEE ELIGIBILITY.325J.03 PAWN TICKETS.325J.04 RECORDS; RETENTION.325J.05 EFFECT OF NONREDEMPTION.325J.06 PERMITTED CHARGES.325J.07 RECORDS; PROHIBITIONS.325J.08 REDEMPTION; RISK OF LOSS.325J.09 MOTOR VEHICLE TITLE PAWN TRANSACTIONS; SPECIAL PROVISIONS. 325J.095 VIOLATION.325J.11 TRANSITION.325J.12 ORDINANCES; CONSISTENCY.325J.13 325J.01 DEFINITIONS. Subdivision 1. Scope. As used in this chapter, the following terms have the meanings given them unless the context clearly indicates otherwise. Subd. 2. Appropriate law enforcement agency. "Appropriate law enforcement agency" means the attorney general of the state of Minnesota, the sheriff of each county in which a pawnbroker maintains an office, or the police chief of the municipality or law enforcement officers of the municipality in which a pawnbroker maintains an office. Subd. 3. Municipality. "Municipality" means any town, home rule charter or statutory city, or county that elects to regulate and license pawnbrokers within its jurisdiction pursuant to local ordinance. Subd. 4. Pawnbroker. (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 definition of "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 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 Department of Commerce. Subd. 5. Pawnshop. "Pawnshop" means the location at which or premises in which a pawnbroker regularly conducts business. Subd. 6. 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. Subd. 7. Person. "Person" means an individual, partnership, corporation, limited liability company, joint venture, trust, association, or any other legal entity, however organized. Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 325J.01MINNESOTA STATUTES 20161 Subd. 8. 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. History: 1996 c 404 s 1 325J.02 MUNICIPAL LICENSING AND REGULATION. (a) For the purpose of promoting the public health, safety, morals, and welfare, a municipality may adopt an ordinance, issue licenses to qualified applicants, and regulate pawn transactions. Ordinances must contain the minimum provisions of this chapter. (b) A person may not engage in business as a pawnbroker or otherwise portray the person as a pawnbroker unless the person has a valid license authorizing engagement in the business. Any pawn transaction made without benefit of a license is void. (c) A separate license is required for each place of business. A municipality may issue more than one license to a person if that person complies with this chapter for each license. (d) Each license shall remain in full force and effect until surrendered, suspended, revoked, or expired. A license may be suspended or revoked for failure to comply with the municipality's ordinance. (e) No expiration, revocation, suspension, or surrender of any license shall impair or affect the obligation of any preexisting lawful contract between the licensee and any pledgor. (f) The appropriate local law enforcement agency shall be notified by the municipality of any licensee whose license has expired or been surrendered, suspended, or revoked as provided by this chapter. History: 1996 c 404 s 2 325J.03 LICENSEE ELIGIBILITY. (a) To be eligible for or to maintain a pawnbroker license, a person must operate lawfully and fairly within the purposes of this chapter and the applicable local ordinance and: (1) may not be a minor at the time that the application for a pawnbroker's license is filed; (2) may not have been convicted of any crime directly related to the occupation licensed as prescribed by section 364.03, subdivision 2, unless the person has shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a licensee under this chapter as prescribed by section 364.03, subdivision 3; and (3) must be of good moral character or repute. (b) Any change, directly or beneficially, in the ownership of any licensed pawnshop shall require the application for a new license and the new owner must satisfy all current eligibility requirements. History: 1996 c 404 s 3 325J.04 PAWN TICKETS. Subdivision 1. Entries of pawn tickets. At the time of making the pawn or purchase transaction, the pawnbroker shall immediately and legibly record in English the following information by using ink or other indelible medium on forms or in a computerized record approved by the municipality: Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 2MINNESOTA STATUTES 2016325J.01 (1) a complete and accurate description of the property, including model and serial number if indicated on the property; (2) the full name, residence address, residence telephone number, and date of birth of the pledgor or seller; (3) date and time of pawn or purchase transaction; (4) the identification number and state of issue from one of the following forms of identification of the seller or pledgor: current valid Minnesota driver's license; current valid Minnesota identification card; or current valid photo identification card issued by another state or a province of Canada; (5) description of the pledgor including approximate height, sex, and race; (6) amount advanced or paid; (7) the maturity date of the pawn transaction and the amount due; and (8) the monthly and annual interest rates, including all pawn fees and charges. Subd. 2. Printed pawn ticket. The following shall be printed on all pawn tickets: (1) the statement that "Any personal property pledged to a pawnbroker within this state is subject to sale or disposal when there has been no payment made on the account for a period of not less than 60 days past the date of the pawn transaction, renewal, or extension; no further notice is necessary. There is no obligation for the pledgor to redeem pledged goods."; (2) the statement that "The pledgor of this item attests that it is not stolen, it has no liens or encumbrances against it, and the pledgor has the right to sell or pawn the item."; (3) the statement that "This item is redeemable only by the pledgor to whom the receipt was issued, or any person identified in a written and notarized authorization to redeem the property identified in the receipt, or a person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor. Written authorization for release of property to persons other than the original pledgor must be maintained along with the original transaction record."; and (4) a blank line for the pledgor's signature. History: 1996 c 404 s 4 325J.05 RECORDS; RETENTION. (a) The pledgor or seller shall sign a pawn ticket and receive an exact copy of the pawn ticket. (b) The pawnbroker shall maintain on the premises a record of all transactions of pledged or purchased goods for a period of three years. These records shall be a correct copy of the entries made of the pawn transactions. A pawnbroker shall upon request provide to the appropriate law enforcement agency a complete and accurate record of pawn transactions. If the pawnbroker provides the records in a computerized format, they must be provided in the interchange file specification format. (c) For purposes of paragraph (b), "interchange file specification format" means the most current version of the Minneapolis automated pawn system interchange file specification format. History: 1996 c 404 s 5; 2000 c 274 s 1 Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 325J.05MINNESOTA STATUTES 20163 325J.06 EFFECT OF NONREDEMPTION. (a) A pledgor shall have no obligation to redeem pledged goods or make any payment on a pawn transaction. Pledged goods not redeemed within at least 60 days of the date of the pawn transaction, renewal, or extension shall automatically be forfeited to the pawnbroker, and qualified right, title, and interest in and to the goods shall automatically vest in the pawnbroker. (b) The pawnbroker's right, title, and interest in the pledged goods under paragraph (a) is qualified only by the pledgor's right, while the pledged goods remain in possession of the pawnbroker and not sold to a third party, to redeem the goods by paying the loan plus fees and/or interest accrued up to the date of redemption. (c) A pawn transaction that involves holding only the title to property is subject to chapter 168A or 336. History: 1996 c 404 s 6 325J.07 PERMITTED CHARGES. (a) Notwithstanding any other statute, ordinance, rule, regulation, or section 325J.13, a pawnbroker may contract for and receive a pawnshop charge not to exceed three percent per month of the principal amount advanced in the pawn transaction plus a reasonable fee for storage and services. A fee for storage and services may not exceed $20 if the property is not in the possession of the pawnbroker. (b) The pawnshop charge allowed under paragraph (a) shall be deemed earned, due, and owing as of the date of the pawn transaction and a like sum shall be deemed earned, due, and owing on the same day of the succeeding month. However, if full payment is made more than two weeks before the next succeeding date, the pawnbroker shall remit one-half of the pawnshop charge for that month to the pledgor. (c) Interest shall not be deducted in advance, nor shall any loan be divided or split so as to yield greater interest or fees than would be permitted upon a single, consolidated loan or for otherwise evading any provisions of this section. (d) Any interest, charge, or fees contracted for or received, directly or indirectly, in excess of the amount permitted under this section, shall be uncollectible and the pawn transaction shall be void. (e) A schedule of charges permitted by this section shall be posted on the pawnshop premises in a place clearly visible to the general public. History: 1996 c 404 s 7 325J.08 RECORDS; PROHIBITIONS. A pawnbroker and any clerk, agent, or employee of a pawnbroker shall not: (1) make any false entry in the records of pawn transactions; (2) falsify, obliterate, destroy, or remove from the place of business the records, books, or accounts relating to the licensee's pawn transactions; (3) refuse to allow the appropriate law enforcement agency, the attorney general, or any other duly authorized state or federal law enforcement officer to inspect the pawn records or any pawn goods in the person's possession during the ordinary hours of business or other times acceptable to both parties; (4) fail to maintain a record of each pawn transaction for three years; Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 4MINNESOTA STATUTES 2016325J.06 (5) accept a pledge or purchase property from a person under the age of 18 years; (6) make any agreement requiring the personal liability of a pledgor or seller, or waiving any provision of this section, or providing for a maturity date less than one month after the date of the pawn transaction; (7) fail to return pledged goods to a pledgor or seller, or provide compensation as set forth in section 325J.09, upon payment of the full amount due the pawnbroker unless either the date of redemption is more than 60 days past the date of the pawn transaction, renewal, or extension and the pawnbroker has sold the pledged goods pursuant to section 325J.06, or the pledged goods have been taken into custody by a court or a law enforcement officer or agency; (8) sell or lease, or agree to sell or lease, pledged or purchased goods back to the pledgor or seller in the same, or a related, transaction; (9) sell or otherwise charge for insurance in connection with a pawn transaction; or (10) remove pledged goods from the pawnshop premises or other storage place approved by a municipality at any time before the expiration of the redemption period pursuant to section 325J.06. However, (i) a pawnbroker is permitted to return pledged goods to the borrower at any time during the redemption period, (ii) a pawnbroker is permitted to sell the pledged goods or remove the pledged goods from the pawnshop premises or other storage at any time after the expiration of the redemption period set forth in section 325J.06, and (iii) a pawnbroker who purchases goods not involving a pawn transaction is permitted to sell or remove the purchased goods from the pawnshop premises or other storage 31 days or later from the purchase transaction date. History: 1996 c 404 s 8; 2011 c 82 s 1 325J.09 REDEMPTION; RISK OF LOSS. Any person to whom the receipt for pledged goods was issued, or any person identified in a written and notarized authorization to redeem the pledged goods identified in the receipt, or any person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor shall be entitled to redeem or repurchase the pledged goods described on the ticket. In the event the goods are lost or damaged while in possession of the pawnbroker, the pawnbroker shall compensate the pledgor, in cash or replacement goods acceptable to the pledgor, for the fair market value of the lost or damaged goods. Proof of compensation shall be a defense to any prosecution or civil action. History: 1996 c 404 s 9 325J.095 MOTOR VEHICLE TITLE PAWN TRANSACTIONS; SPECIAL PROVISIONS. (a) In addition to the other requirements of this chapter, a pawnbroker who holds a title to a motor vehicle as part of a pawn transaction shall: (1) be licensed as a used motor vehicle dealer under section 168.27, and post such license on the pawnshop premises; (2) verify that there are no liens or encumbrances against the motor vehicle with the Department of Public Safety; and (3) verify that the pledgor has automobile insurance on the motor vehicle as required by law. Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 325J.095MINNESOTA STATUTES 20165 (b) A pawnbroker may not sell a motor vehicle covered by a pawn transaction until 90 days after recovery of the motor vehicle. History: 1996 c 404 s 10 325J.10 [Repealed, 2011 c 82 s 3] 325J.11 VIOLATION. A violation of this chapter by a pawnbroker or pledgor is a misdemeanor. History: 1996 c 404 s 12 325J.12 TRANSITION. (a) Pawnbrokers that are in business when a municipality adopts an ordinance under this chapter must apply for a license and pay the required fee within six months of adoption of the ordinance. (b) A county that has adopted an ordinance under Minnesota Statutes 1994, sections 471.924 to 471.927, must conform the ordinance to this chapter by August 1, 1997. Pawnbrokers that are in business when a municipality adopts a new ordinance under this chapter must apply for a license and pay the required fee within six months of the adoption of the new ordinance. History: 1996 c 404 s 13 325J.13 ORDINANCES; CONSISTENCY. With the exception of section 325J.08, clauses (7) and (10), nothing in this chapter preempts or supersedes any ordinance adopted by a municipality that provides for more restrictive regulation of pawnbrokers or pawn transactions. History: 1996 c 404 s 14; 2011 c 82 s 2 Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 6MINNESOTA STATUTES 2016325J.095 CHAPTER 53A CURRENCY EXCHANGES DEFINITIONS.53A.01 LICENSE.53A.02 APPLICATION FOR LICENSE; FEES.53A.03 APPROVAL OR DENIAL OF AN APPLICATION.53A.04 CHANGE OF NAME, OWNERSHIP, OR LOCATION.53A.05 FINE, SUSPENSION, OR REVOCATION OF LICENSE.53A.06 FILING OF FEES; UNREASONABLE FEES.53A.07 BOND.53A.08 POWERS; LIMITATIONS; PROHIBITIONS.53A.09 VIOLATIONS.53A.10 BOOKS OF ACCOUNT; ANNUAL REPORT.53A.11 RULES.53A.12 FEE NOTICE; FALSE ADVERTISING; PENALTY.53A.13 53A.01 DEFINITIONS. Subdivision 1. Currency exchange. "Currency exchange" means any person, except a bank, trust company, savings bank, savings association, credit union, or industrial loan and thrift company, engaged in the business of cashing checks, drafts, money orders, or travelers' checks for a fee. "Currency exchange" does not include a person who provides these services incidental to the person's primary business if the charge for cashing a check or draft does not exceed $1 or one percent of the value of the check or draft, whichever is greater. Subd. 2. Commissioner. "Commissioner" means the commissioner of commerce. History: 1989 c 247 s 1; 1995 c 202 art 1 s 25 53A.02 LICENSE. Subdivision 1. Requirement. A person may not engage in the business of a currency exchange without first obtaining a license from the commissioner. Not more than one place of business may be operated under the same license, but the commissioner may issue more than one license to the same licensee upon compliance by the applicant with all the provisions of this chapter for each new license issued. Subd. 2. Distance limitation. No license may be issued or renewed under this chapter if the place of business to be operated under the license is located or proposed to be located within one-half mile of another licensed currency exchange. The distance limitation imposed by this subdivision is measured by a straight line from the closest points of the closest structures involved. Subd. 3. Prohibition. A licensee may not contract with another person or business entity to manage the currency exchange business. This subdivision does not prohibit the licensee from employing persons to operate a currency exchange facility. History: 1989 c 247 s 2; 1992 c 504 s 2 53A.03 APPLICATION FOR LICENSE; FEES. (a) An application for a license must be in writing, under oath, and in the form prescribed and furnished by the commissioner and must contain the following: (1) the full name and address (both of residence and place of business) of the applicant, and if the applicant is a partnership or association, of every member, and the name and business address if the applicant is a corporation; Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 53A.03MINNESOTA STATUTES 20161 (2) the county and municipality, with street and number, if any, of all currency exchange locations operated by the applicant; and (3) the applicant's occupation or profession, for the ten years immediately preceding the application; present or previous connection with any other currency exchange in this or any other state; whether the applicant has ever been convicted of any crime; and the nature of the applicant's occupancy of the premises to be licensed; and if the applicant is a partnership or a corporation, the information specified in this paragraph must be supplied for each partner and each officer and director of the corporation. If the applicant is a partnership or a nonpublicly held corporation, the information specified in this paragraph must be required of each partner and each officer, director, and stockholders owning in excess of ten percent of the corporate stock of the corporation. (b) The application shall be accompanied by a nonrefundable fee of $1,000 for the review of the initial application. Upon approval by the commissioner, an additional license fee of $500 must be paid by the applicant as an annual license fee for the remainder of the calendar year. An annual license fee of $500 is due for each subsequent calendar year of operation upon submission of a license renewal application on or before September 1. Fees must be deposited in the state treasury and credited to the general fund. Upon payment of the required annual license fee, the commissioner shall issue a license for the year beginning January 1. (c) The commissioner shall require the applicant to submit to a background investigation conducted by the Bureau of Criminal Apprehension as a condition of licensure. As part of the background investigation, the Bureau of Criminal Apprehension shall conduct criminal history checks of Minnesota records and is authorized to exchange fingerprints with the Federal Bureau of Investigation for the purpose of a criminal background check of the national files. The cost of the investigation must be paid by the applicant. (d) For purposes of this section, "applicant" includes an employee who exercises management or policy control over the company, a director, an officer, a limited or general partner, a manager, or a shareholder holding more than ten percent of the outstanding stock of the corporation. History: 1989 c 247 s 3; 1992 c 504 s 3; 1993 c 354 s 1; 1999 c 223 art 2 s 2 53A.04 APPROVAL OR DENIAL OF AN APPLICATION. (a) Within 30 days after the receipt of a complete application, the commissioner shall deny the application or submit the application to the governing body of the local unit of government in which the applicant is located or is proposing to be located. The commissioner may not approve the application without the concurrence of the governing body. The governing body shall give published notice of its intention to consider the issue and shall solicit testimony from interested persons, including those in the community in which the applicant is located or is proposing to be located. If the governing body has not approved or disapproved the issue within 60 days of receipt of the application, concurrence is presumed. The commissioner must approve or disapprove the application within 30 days from receiving the decision of the governing body. The governing body shall have the sole responsibility for its decision. The state shall have no responsibility for that decision. (b) If the application is denied, the commissioner shall send by mail notice of the denial and the reason for the denial to the applicant at the address contained in the application. If an application is denied, the applicant may, within 30 days of receiving the notice of a denial, request a contested case hearing pursuant to chapter 14; provided that if the denial is based upon the refusal of the governing body to concur the governing body must afford the applicant a hearing. The applicant shall have no right to the hearing provided Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 2MINNESOTA STATUTES 201653A.03 for in this section if the denial is based upon the governing body's refusal to concur but shall have a hearing before the governing body. (c) This section applies to initial applications and renewal applications. (d) The state shall have no responsibility for the action of the governing body. History: 1989 c 247 s 4; 1992 c 504 s 4 53A.05 CHANGE OF NAME, OWNERSHIP, OR LOCATION. Subdivision 1. Name or location. If a licensee proposes to change the name or location of any or all of its currency exchanges, the licensee shall file an application for approval of the change with the commissioner. The commissioner shall not approve a change of location if the requirements of sections 53A.02, subdivision 2, and 53A.04 have not been satisfied. If the change is approved by the commissioner, the commissioner shall issue an amended license in the licensee's new name or location. A $100 fee must be paid for the amended license. Subd. 2. Ownership. The licensee shall notify the commissioner 30 business days in advance of any change in ownership of the currency exchange. The commissioner may revoke the currency exchange license if the new ownership would have resulted in a denial of the initial license under the provisions of chapter 53A. History: 1989 c 247 s 5; 1992 c 504 s 5; 1999 c 223 art 2 s 3 53A.06 FINE, SUSPENSION, OR REVOCATION OF LICENSE. (a) The commissioner may suspend or revoke any license under section 45.027, including when the commissioner finds that: (1) the licensee has failed to pay the annual license fee or to maintain in effect the required bond or to comply with any order, decision, or finding of the commissioner under this chapter; (2) the licensee, or any officer or director of a corporate licensee, has violated any provision of this chapter or any rule or order of the commissioner under this chapter or chapter 45; (3) the licensee, or any officer or director of a corporate licensee, has violated any other law which would indicate that the person is untrustworthy or not qualified to operate a currency exchange; or (4) any fact or condition exists which, if it had existed at the time of the original or renewal application for the license, would have warranted the commissioner refusing the issuance of the license. (b) A licensee may surrender any license by delivery to the commissioner. The surrender does not affect the licensee's civil or criminal liability for acts committed before the surrender, or affect the liability on the bond required by sections 53A.01 to 53A.13, or entitle the licensee to a return of any part of any license fee. (c) Before suspension or revocation of the license, the commissioner may fine a licensee for violations of this chapter as authorized under chapter 45. History: 1989 c 247 s 6; 2014 c 222 art 1 s 6 53A.07 FILING OF FEES; UNREASONABLE FEES. Subdivision 1. Approval of fees. Fees charged at each location for check cashing services must be filed with and approved by the commissioner. Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 53A.07MINNESOTA STATUTES 20163 Subd. 2. Amendment of fees. A licensee may amend its fees at any time by filing the proposed amendments with the commissioner. The application for amendment shall be in writing, under oath, and in the form prescribed by the commissioner. A fee of $50 shall accompany the application. The commissioner shall approve or deny the application 60 days after the filing of a complete application to amend its fees. Subd. 3. Standards; unreasonable fees prohibited. The commissioner may disapprove the fees filed by a currency exchange if they are not fair and reasonable. In determining whether a fee is fair and reasonable, the commissioner shall take into consideration: (1) rates charged in the past for cashing of checks by those persons and organizations providing check cashing services in the state of Minnesota; (2) the income, cost, and experience of the operations of currency exchanges existing prior to this enactment or in other states under similar conditions or regulations; (3) the amount of risk involved in the type of check to be cashed and the location where the currency exchange operates; (4) the general cost of doing business, insurance costs, security costs, banking fees, and other costs associated with the operations of the particular currency exchange; (5) a reasonable profit for a currency exchange operation; and (6) any other matter the commissioner deems appropriate. The commissioner shall set a separate rate, consistent with the above standards, for checks issued by a government entity in an amount up to $500 to be cashed by a currency exchange. History: 1989 c 247 s 7 53A.08 BOND. Before a license may be issued to a currency exchange, the applicant shall file annually with and have approved by the commissioner a surety bond, issued by a bonding company authorized to do business in this state in the principal amount of $10,000. The bond must run to the commissioner and is for the benefit of creditors of the currency exchange for liability incurred by the currency exchange on money orders issued or sold by the currency exchange, for liability incurred by the currency exchange for sums due to a payee or endorsee of a check, draft, or money order left with the currency exchange for collection, and for liability incurred by the currency exchange in connection with providing currency exchange services. The commissioner may require a licensee to file a bond in an additional amount if the commissioner considers it necessary to meet the requirements of this section. In determining the additional amount of the bond which may be required, the commissioner may require the licensee to file its financial records, including all bank statements, pertaining to the sale of money orders for the preceding 12-month period. In no case may the bond be less than the initial $10,000 or more than the outstanding liabilities. History: 1989 c 247 s 8; 1992 c 504 s 6 53A.081 [Repealed, 2014 c 222 art 1 s 58] 53A.09 POWERS; LIMITATIONS; PROHIBITIONS. Subdivision 1. Deposits; escrow accounts. A currency exchange may not accept money or currency for deposit, or act as bailee or agent for persons, firms, partnerships, associations, or corporations to hold Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 4MINNESOTA STATUTES 201653A.07 money or currency in escrow for others for any purpose. However, a currency exchange may act as agent for the issuer of money orders or travelers' checks. Subd. 2. Gambling establishments. A currency exchange located on the premises of a gambling establishment as defined in section 256.9831, subdivision 1, may not cash a warrant that bears a restrictive endorsement under section 256.9831, subdivision 3. History: 1989 c 247 s 9; 1996 c 465 art 3 s 1 53A.10 VIOLATIONS. Any person, firm, association, partnership, or corporation that violates this chapter shall be guilty of a misdemeanor. History: 1989 c 247 s 10 53A.11 BOOKS OF ACCOUNT; ANNUAL REPORT. The licensee shall keep and use in the licensee's business the books, accounts, and records that will enable the commissioner to determine whether the licensee is complying with this chapter and with the rules adopted by the commissioner. A licensee shall preserve the books, accounts, and records for at least two years after making the final entry. History: 1989 c 247 s 11 53A.12 RULES. The commissioner may adopt rules under chapter 14 as may be necessary to administer and enforce this chapter. History: 1989 c 247 s 12 53A.13 FEE NOTICE; FALSE ADVERTISING; PENALTY. Subdivision 1. Fee notice. The fees charged by currency exchanges for rendering any service authorized by sections 53A.01 to 53A.13 must be prominently displayed on the premises of the currency exchange in the fashion required by the commissioner. Subd. 2. False advertising. A licensee may not advertise, print, display, publish, distribute, or broadcast any statement or representation that is false, misleading, or deceptive, or that omits material information. Subd. 3. Civil liability; penalty. A person who violates any subdivision of this chapter is liable to the person damaged by the violation for actual damages. The court may award reasonable attorney fees and costs. History: 1989 c 247 s 13 53A.14 [Repealed, 1992 c 504 s 8] Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 53A.14MINNESOTA STATUTES 20165 CHAPTER 80G BULLION PRODUCTS DEALERS DEFINITIONS.80G.01 REGISTRATION.80G.02 REGISTRATION DENIAL, NONRENEWAL, REVOCATION, AND SUSPENSION. 80G.03 CRIMINAL CONVICTIONS.80G.04 SCREENING.80G.05 SURETY BOND.80G.06 PROHIBITED CONDUCT.80G.07 CRIMINAL VIOLATION.80G.08 OTHER ACTION; LOCAL AUTHORITY.80G.09 INVESTIGATIONS AND CIVIL ENFORCEMENT.80G.10 80G.01 [Renumbered 80G.02, subd. 5] 80G.01 DEFINITIONS. Subdivision 1. Scope. For purposes of this chapter, the following terms have the meanings given to them in this section. Subd. 2. Bullion product. "Bullion product" means any coin, round, bar, or ingot containing silver, gold, platinum, palladium, or other precious metal. Subd. 3. Dealer. (a) Subject to the exceptions in paragraph (b), a "dealer" means any person who buys, sells, solicits, or markets bullion products or investments in bullion products to consumers and: (1) is incorporated, registered, domiciled, or otherwise located in this state; (2) has a dealer representative located in this state; or (3) does business with a consumer at a location in this state, or delivers or ships a bullion product or makes a payment to a consumer at an address in this state, unless the transaction occurs when the consumer is at a business location outside of this state. (b) A dealer does not include any of the following persons: (1) a person who engages only in wholesale bullion product transactions with other persons who engage only in wholesale bullion product transactions or with dealers who buy or sell at retail and are properly registered under this chapter; (2) a person who engages only in transactions at occasional garage or yard sales held at the seller's residence, farm auctions held at the seller's residence, or estate sales held at the decedent's residence; (3) a person who is properly registered pursuant to chapter 80A, or the federal Securities Exchange Act of 1934 and rules promulgated thereunder as a securities broker dealer or broker dealer agent; (4) an auctioneer who auctions bullion products on behalf of an owner, if the auctioneer does not take title or ownership of the bullion products, or the operator of an Internet Web site that allows users to offer the sale of bullion products through that Web site, does not set the price, is not the seller of record, and does not take possession of any bullion products to be offered; (5) a person who engages only in transactions at no more than 12 trade shows per year in this state where the consumer is present and the transaction is made at the trade show; or (6) a federally or state-chartered bank, bank and trust, savings bank, savings association, or credit union or any operating subsidiary of them. Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 80G.01MINNESOTA STATUTES 20161 Subd. 4. Dealer representative. "Dealer representative" means any natural person acting as an employee, contractor, or agent of a dealer and who has interactions with consumers for the purpose of the buying, selling, solicitation, or marketing of bullion products or investments in bullion products. This term does not mean a natural person who has interactions with consumers solely for administrative purposes. Subd. 5. Commissioner. "Commissioner" means the commissioner of commerce. Subd. 6. Owner. "Owner" means any person who has an ownership interest in a dealer, regardless of whether directly or indirectly, of more than ten percent and who is actively engaged in the direction, management, oversight, or operation of the dealer or its business affairs. Subd. 7. Person. "Person" has the same meaning given in section 325F.68, subdivision 3. Subd. 8. Precious metal content. "Precious metal content" means the quantity, measured in grams or troy ounces, of gold, silver, platinum, palladium, or other precious metal in a bullion product and the percentage that the precious metal constitutes of the total weight of the bullion product. History: 2013 c 85 art 6 s 4; 2013 c 120 s 1; 2016 c 134 s 1 80G.02 REGISTRATION. Subdivision 1. Registration required. It is unlawful for a dealer or dealer representative to solicit, market, buy, sell, or deliver bullion products or investments in bullion products to a consumer without being registered by the commissioner as provided for in this chapter. A dealer must submit an application to register itself and each of its dealer representatives within 45 days of reaching $25,000 in the aggregate of bullion product transactions with consumers between July 1 and June 30 of any year, as determined by the transactions' sale or purchase prices. Once a dealer is required to register itself and its dealer representatives, the dealer must thereafter renew its registration and the registration of each of its dealer representatives in accordance with this chapter, regardless of the aggregate annual amount of transactions, unless the person ceases to be a dealer. A dealer representative may not buy, sell, solicit, or market bullion products or investments in bullion products on behalf of a dealer unless the dealer is properly registered with the commissioner under this section. Subd. 2. Registration obligations. Registrations issued or renewed by the commissioner under this chapter shall expire on June 30 and must be renewed. Subd. 3. Registration application and renewal. The application and renewal forms shall include the following information, as applicable, which shall be considered by the commissioner in determining whether to issue a registration and whether to thereafter renew the registration: (1) the name, assumed names, doing business as names, including caller identification names, and business addresses of the dealer, the name of each owner and officer, and the name and primary work location of each dealer representative. A dealer who desires to carry on business in more than one location shall identify each address where business is conducted; (2) if a dealer is doing business under any name other than the dealer's legal name, documentation that the assumed name has been properly filed with the secretary of state or appropriate government office; (3) the dealer's primary telephone number, e-mail address, and Web site domain name used or intended to be used by the dealer and its dealer representatives to buy, sell, solicit, market, or deliver to consumers bullion products or investments in bullion products; Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 2MINNESOTA STATUTES 201680G.01 (4) the disclosure of all criminal convictions by any court, including military courts, within the last ten years, except those relating to misdemeanor traffic citations and misdemeanor convictions involving driving under the influence, driving while intoxicated, driving without a license, reckless driving, or driving with a suspended or revoked license, and juvenile offenses, for the dealer and each officer and owner of the dealer and for each of its dealer representatives; (5) the disclosure of any civil judgments in favor of a government entity or government entity orders entered, filed, or issued against the dealer, its officers and owners, or its dealer representatives within the last ten years for violation of consumer protection laws or unfair trade practice laws or for failure to account to a consumer for money or property received from the consumer; (6) the disclosure of any settlement or other agreement with any government entity within the last ten years resolving concerns that the dealer, its officers and owners, or its coin dealer representatives violated consumer protection or unfair trade practice laws, or for failure to account to a consumer for money or property received from the consumer; and (7) the disclosure of any instance in which the dealer, its officers and owners, and its dealer representatives were at any time permanently or temporarily prohibited by any court of competent jurisdiction or ordered to cease and desist as the result of a government agency action from engaging in buying, selling, soliciting, or marketing of bullion products or investments in bullion products. A dealer may rely on the screening process provided for in section 80G.05 and the statements of its dealer representatives for the purposes of complying with the disclosure requirements of this clause relating to dealer representatives, provided that such reliance is reasonable, in good faith, and the dealer has no knowledge of information suggesting that the screening results or statement are inaccurate. Subd. 4. Notice of change in registration information. A dealer must provide the commissioner written notice of a change in the dealer's name, assumed names, doing business as names, business addresses, including all business addresses at which it or its dealer representatives conduct business, owners, e-mail addresses, Web site domain names, or primary telephone number used by it or its dealer representatives to buy, sell, solicit, or market to consumers bullion products or investments in bullion products no later than 30 days after the change occurs. Subd. 5. Registration fee. (a) The fee for each registration under this chapter shall be as follows: (1) dealers, $25; and (2) dealer representatives, $10. (b) The commissioner, based on the cost of processing registrations, may adjust the registration fee on an annual basis as needed. History: 2013 c 85 art 6 s 4; 2013 c 120 s 2; 2016 c 134 s 2 80G.03 REGISTRATION DENIAL, NONRENEWAL, REVOCATION, AND SUSPENSION. Subdivision 1. Authority. The commissioner may, by order, suspend, revoke, or refuse to issue or renew a dealer or dealer representative registration for any one or more of the following causes: (1) providing incorrect, false, misleading, or incomplete information to the commissioner or refusing to allow a reasonable inspection of information and documents in the possession of the dealer, dealer representative, or a third party or to allow a reasonable inspection of premises; (2) obtaining or attempting to obtain a registration through misrepresentation or fraud; Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 80G.03MINNESOTA STATUTES 20163 (3) having a dealer or dealer representative registration or its equivalent, including licensure under section 325F.73, denied, suspended, or revoked by any locality within the state or other state, province, district, or territory; (4) being permanently or temporarily enjoined by any court of competent jurisdiction or being ordered to cease and desist by a government agency from engaging in or continuing any conduct or practice involving the buying, selling, soliciting, or marketing of bullion products, investments in bullion products, or precious metal to consumers; (5) violating the provisions of this chapter or sections 45.027, 325D.43 to 325D.48, 325F.67, 325F.68 to 325F.69, 325F.694, and 325F.73 to 325F.744, or federal or state taxation or labor law; or (6) violating a subpoena or order of the commissioner or a court issued pursuant to this chapter or sections 45.027, 325D.43 to 325D.48, 325F.67, 325F.68 to 325F.69, 325F.694, 325F.70, and 325F.73 to 325F.744. Subd. 2. Dealer responsibility for actions of dealer representatives. The commissioner may take action against a dealer for any violations of this chapter by its dealer representatives conducting activities on behalf of or at the direction of the dealer. The commissioner may also take action against the dealer representative. Subd. 3. Other authority of the commissioner. If a registration lapses, is surrendered, withdrawn, terminated, or otherwise becomes ineffective, the commissioner may institute a proceeding under this subdivision within two years after the registration was last effective and enter a revocation order as of the last date on which the registration was in effect, and impose a civil penalty as provided for in section 45.027, subdivision 6. Subd. 4. Effect of revocation. A revocation of a registration prohibits the dealer or dealer representatives from making a new application for a registration for at least two years from the effective date of the revocation. History: 2013 c 120 s 3; 2016 c 134 s 3 80G.04 CRIMINAL CONVICTIONS. Subdivision 1. Dealer registration precluded. The commissioner must deny an application for registration or renewal of a dealer, or revoke such registration, if the bullion coin dealer or its owners or officers have within the last ten years been convicted in any court of any financial crime or other crime involving fraud or theft. Subd. 2. Dealer representative registration precluded. The commissioner must deny an application for registration or renewal of a dealer representative, or revoke such registration, if the dealer representative has within the last ten years been convicted in any court of any financial crime or other crime involving fraud or theft. History: 2013 c 120 s 4; 2016 c 134 s 4 80G.05 SCREENING. Subdivision 1. Screening process required. Each dealer must establish procedures to screen each of its owners and officers and each of its dealer representatives prior to submitting the application to the commissioner for initial registration and at each renewal. The results of such screenings shall be kept on file by the dealer and, if requested by the commissioner, provided to the commissioner as part of the initial registration and all renewal registrations. Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 4MINNESOTA STATUTES 201680G.03 Subd. 2. Initial screening. The screening process for initial registration must be done no more than 60 days before the submission of an application for registration. The process must include a national criminal history record search, a judgment search, and a county criminal history search for all counties where the owner, officer, or dealer representative has resided within the immediately preceding ten years. Each dealer shall use a reputable, reliable, and accurate vendor authorized to do business in any state to conduct the background screening process on its owners, officers, and dealer representatives. Subd. 3. Renewal screening. The screening process for the renewal of a registration must include a national criminal history record search, a judgment search, and county criminal history search for all counties where the owner, officer, or dealer representative has resided since satisfactorily completing the last screening process conducted pursuant to this section. Screening for renewal of the owner, officer, and dealer representative registrations must take place no more than 60 days before the submission of an application for renewal of a registration. History: 2013 c 120 s 5; 2016 c 134 s 5 80G.06 SURETY BOND. Subdivision 1. Surety bond requirement. Every dealer shall maintain a current, valid surety bond issued by a surety company admitted to do business in Minnesota in an amount based on the transactions (purchases from and sales to consumers at retail) during the 12-month period prior to registration, or renewal, whichever is applicable. The amount of the surety bond shall be as specified in the table below: Surety Bond RequiredTransaction Amount in Preceding 12-month Period $25,000$25,000 to $200,000 $50,000$200,000.01 to $500,000 $100,000$500,000.01 to $1,000,000 $150,000$1,000,000.01 to $2,000,000 $200,000Over $2,000,000 Subd. 2. Action on bond permitted. A consumer injured in money or property by a dealer's or dealer representative's failure to provide bullion products that the consumer has paid for or failure to remit money or goods owed to the consumer in connection with the consumer's sale of bullion products may file a claim with the surety and if the claim is not paid, is authorized to bring an action based on the bond and recover against the surety. The commissioner or attorney general may also file a claim and bring an action on the bond and recover against the surety on behalf of a consumer so injured. History: 2013 c 120 s 6; 2016 c 134 s 6 80G.07 PROHIBITED CONDUCT. Subdivision 1. Sales practices. No dealer or dealer representative shall: (1) prior to a transaction regarding bullion products, or concurrent with the delivery thereof, fail to provide to the consumer an invoice, which, in a clear and conspicuous manner, discloses the dealer's registration number, the Department of Commerce's e-mail address and telephone number, the sale or purchase price, the quantity of the bullion products, and specifically identifies and describes the bullion Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 80G.07MINNESOTA STATUTES 20165 products, as well as their precious metal content, but only if it differs from the precious metal content specified by a government mint issuing the product and struck on the product, or if the product is not issued by a government mint; (2) fail to investigate any consumer complaint and retain records of all consumer complaints, the results of its investigations, and the dealer's response and resolution of the complaint; (3) fail to deliver by common carrier bullion products to a consumer within the time agreed upon with the consumer or, if no such agreement exists, within 30 days after the consumer has paid for the bullion products; (4) fail to pay a consumer for purchased bullion products within the time agreed upon with the consumer or, if no such agreement exists, within 30 days after the consumer has provided the bullion products; (5) misrepresent the delivery date of bullion products or payment for bullion products, or the dealer or representative's professional qualifications, affiliations, or registration; (6) misrepresent any material aspect of a bullion product, including its performance, efficacy, nature, investment value, central characteristics, liquidity, earnings potential, or profitability; (7) misrepresent the manner in which any bullion products a consumer provides will be stored or otherwise handled once received; (8) renegotiate the terms of a sale or purchase after receiving a consumer's payment or bullion products without first obtaining the consumer's agreement to renegotiate and offering the consumer the option to have the payment fully refunded or the entirety of the bullion products returned; (9) fail to respond within three business days to a consumer inquiry about the delivery status of bullion products that the consumer has paid for but not yet received or the status of a payment for bullion products that the consumer has already provided; (10) telephone or solicit a consumer, or sell or provide the consumer's name to any other dealer or dealer representative, after the consumer requests not to be contacted; (11) violate a subpoena or order of the commissioner or a court; (12) make any communication to a potential buyer or seller of bullion products that misrepresents the relationship, if any, between the dealer or dealer representative and any government agency or mint; (13) improperly withhold, misappropriate, or convert any money or properties received in the course of buying, selling, soliciting, or marketing bullion products or investments in bullion products to consumers; (14) misrepresent the terms of an actual or proposed purchase or sale of bullion products or investment in bullion products to a consumer; or (15) violate any other federal, state, or local law or rule related to selling, purchasing, soliciting, or marketing of bullion products, investments in bullion products, or precious metals, or any federal, state, or local law related to fraudulent, coercive, or dishonest practices, or federal, state, or local law related to taxation or labor standards. Subd. 2. [Repealed, 2016 c 134 s 10] History: 2013 c 120 s 7; 2016 c 134 s 7 Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 6MINNESOTA STATUTES 201680G.07 80G.08 CRIMINAL VIOLATION. A person who conducts business as a dealer or as a dealer representative without having first registered with the commissioner as required in section 80G.02, subdivision 1, or who carries on such business after the revocation, suspension, or expiration of a registration, or who violates section 80G.07, subdivision 1, clause (3) or (4), is guilty of a misdemeanor. History: 2013 c 120 s 8; 2016 c 134 s 8 80G.09 OTHER ACTION; LOCAL AUTHORITY. Nothing in this chapter precludes an action under chapter 80A or preempts local government authority under section 325F.742. History: 2013 c 120 s 9 80G.10 INVESTIGATIONS AND CIVIL ENFORCEMENT. Subdivision 1. Civil action instituted by commissioner. If the commissioner believes that a person has engaged, is engaging, or is about to engage in an act, practice, or course of business constituting a violation of this chapter or a rule adopted or order issued under this chapter or that a person has, is, or is about to engage in an act, practice, or course of business that materially aids a violation of this chapter or a rule adopted or order issued under this chapter, the commissioner may maintain an action in the district court to enjoin the act, practice, or course of business and to enforce compliance with this chapter or a rule adopted or order issued under this chapter. Subd. 2. Relief available. In an action under this section and on a proper showing, the court may: (1) issue a permanent or temporary injunction, restraining order, or declaratory judgment; (2) order other appropriate or ancillary relief, which may include: (i) an asset freeze, accounting, writ of attachment, writ of general or specific execution, and appointment of a receiver or conservator, that may be the commissioner, for the defendant or the defendant's assets; (ii) ordering the commissioner to take charge and control of a defendant's property, including investment accounts and accounts in a depository institution, rents, and profits; to collect debts; and to acquire and dispose of property; (iii) imposing a civil penalty up to $10,000 for each violation; an order of rescission, restitution, or disgorgement directed to a person that has engaged in an act, practice, or course of business constituting a violation of this chapter or a rule adopted or order issued under this chapter or the predecessor act; and (iv) ordering the payment of prejudgment and postjudgment interest; or (3) order such other relief as the court considers appropriate. Subd. 3. No bond required. The commissioner may not be required to post a bond in an action or proceeding under this chapter. Subd. 4. Commissioner authority. (a) If the commissioner determines that a person has engaged, is engaged, or is about to engage in an act, practice, or course of conduct constituting a violation of this chapter or a rule adopted or order issued under this chapter or that a person has materially aided, is materially aiding, Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 80G.10MINNESOTA STATUTES 20167 or is about to materially aid an act, practice, or course of conduct constituting a violation of this chapter or rule adopted or order issued under this chapter the commissioner may: (1) issue an order directing the person to cease and desist from engaging in the act, practice, or conduct or to take other action necessary or appropriate to comply with this chapter; or (2) issue an order denying, suspending, revoking, or conditioning the registration of the dealer or dealer representative. (b) Upon issuance of an order, the commissioner shall promptly serve each person subject to the order with a copy of the order and a notice that the order has been issued. The order must include a statement of the reasons for the order and whether the commissioner will seek a civil penalty or costs of the investigation, and notice that the person must within 30 days of being served with the order, request in writing a hearing and that within 15 days after receipt of a written hearing request from the person, the matter will be scheduled for a hearing. If a person subject to the order does not request a hearing within 30 days after the date of service of the order, the order becomes final as to that person by operation of law. If a hearing is requested, the commissioner, after notice of an opportunity for hearing to each person subject to the order, may modify or vacate the order or extend it until final determination. (c) If a hearing is requested pursuant to paragraph (b), a hearing must be held under chapter 14 and a final order may not be issued unless the commissioner makes findings of fact and conclusions of law in a record according to chapter 14. The final order may make final, vacate, or modify the order issued under paragraph (a). (d) If a petition for judicial review of a final order is not filed in accordance with chapter 14, the commissioner may file a certified copy of the final order with the clerk of a court of competent jurisdiction. The order so filed has the same effect as a judgment of the court and may be recorded, enforced, or satisfied in the same manner as a judgment of the court. (e) If a person does not comply with an order under this section, the commissioner may petition a court of competent jurisdiction to enforce the order. The court may not require the commissioner to post a bond in an action or proceeding under this section. If the court finds, after service and opportunity for hearing, that the person was not in compliance with the order, the court may adjudge the person in civil contempt of the order. The court may impose a further civil penalty against the person for contempt in an amount up to $10,000 for each violation and may grant any other relief the court determines is just and proper in the circumstances. (f) In addition to the authority granted under this chapter, the commissioner has all the authority provided under section 45.027 to ensure compliance with this chapter. History: 2013 c 120 s 10; 2016 c 134 s 9 Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 8MINNESOTA STATUTES 201680G.10 Bloomington, MN Code of Ordinances DIVISION M : PAWNBROKERS § 1 4 .287 FINDINGS AND PURPOSE STATEM ENT. (a) Fin d in g s. The City Council makes the following findings regarding the need to regula te pawnbrokers operating within the city. (1) P awnbrokers provide an opportunity for the commission of crime and the concealment of crime, because pawnshops have the ability to receive and transfer stolen property ea sily and quickly. (2) The pawn industry has outgrown the city's current ability to effectively and efficiently identify criminal ac tivity related to pawnbrokers and pawnshops. The adoption of an automated pawn system will allow law enforcement officials to timely colle ct and share pawn transaction informa tion more efficiently. (3) Consumer protection regulation of pawn transactions is warranted in light of the potential for abuse. (4) Because of the propensity of pawnbrokers to attract criminals attempting to conduc t tra nsactions involving stolen goods, pawnshops have the potentia l to be generally injurious to the maintenance and deve lopment of hea lthy, adjacent commercial, recreationa l and residential areas. (5) To safe guard the public health, safety and welfare, and to help stabilize costs associa ted with the regulation of the pawn industry, it is nec essary to restrict the number of pawnbroke rs permitted to conduct business within the community. (b) Purpose sta tement. The City Counc il enacts this Division M of the city c ode in order to further the following objectives: (1) The prevention of pawnshops from being used as facilities for the commission of crime; (2) The identification of criminal activities through timely collection and sha ring of pawn transaction information; (3) The promulgation of consumer protection standards to be adhered to by the pawn industry; (4) To separate youth from the pawn industry; (5) To protect property va lues, prevent blight, and protect the public health, sa fety and general welfare; and (6) To sta bilize the city's costs of regulating the pawn industry. (1958 Code, § 143.11) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; recodified by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98-27, passed 6-15-1998; Ord. 2007-18, passed 5-7-2007) § 1 4 .288 DEFINITIONS. The following words and terms, when used in this Division M, shall have the following meanings unless the context clearly indica tes otherwise. BILLABLE TRANSACTION. Every reportable transaction conducted by a pawnbroker. ISSUING AUTHORITY . The City of Bloomington License Section. ITEM CONTAINING PRECIOUS METAL. An item made in whole or in part of metal and c ontaining more than 1% by weight of silver, gold or platinum. MINOR. Any natural person under the age of 18 years. PAWNBROKER. (a) Except as provided in subsection (b) below, PAWNBROKER means a pe rson engage d in whole or in part in the business of lending money on the security of pledged goods left in pawn, or in the busine ss of purchasing tangible personal property to be left in pawn on the condition that it may be redeemed or repurchase d by the seller for a fixed price within a fixed period of time. (b) The following are exempt from the definition of PAWNBROKER: any bank regulate d by the state, 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 affiliate; 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 those banks and savings associations; any state or fede rally chartered credit union; and any industrial loan and thrift company or regulated lender subject to licensing and regulation by the Department of Commerce. (c) A pa wnbroker licensed under this Division M shall have the ability to rec eive precious metals without obtaining a separate precious meta l dealer license unde r this code. A precious meta l item or items received by a lice nsee shall not be sold or otherwise transferred for 14 days after the date of the re ceipt of such property by the licensee. Items may not be altered, modified or changed in any way during the holding period. PAWNSHOP. The location at which or the premises in which a pawnbroker regularly conducts business. PERSON. One or more natural persons; a pa rtnership, 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. PLEDGED GOODS. Tangible personal property other tha n choses in action, securities, bank drafts or printed evidence of indebtedness, that are purchased by, deposite d with, or otherwise a ctually delivered into the possession of a pa wnbroker in connection with a pawn transaction. REPORTABLE TRANSACTION. Every transaction conducted by a pawnbroker in which merchandise is received through a pawn, purchase, c onsignme nt or trade is reportable except: (1) The bulk purchase or consignment of ne w or used merchandise from a merchant, manufacturer or wholesaler having an established pe rmanent 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 a nd wholesale sale s of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption periods have expired; and (3) P awn renewals, extensions and redemptions. (1958 Code, § 143.12) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; recodified by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98-27, passed 6-15-1998; Ord. 2007-18, passed 5-7-2007; Ord. 2011-2, passed 1-24-2011) § 1 4 .289 LICENSE REQUIRED. No person shall exercise, ca rry-on or be engaged in the trade or business of pawnbroker within the city unless such person is currently licensed under this Division M. (1958 Code, § 143.13) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; recodified by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98-27, passed 6-15-1998; Ord. 2007-18, passed 5-7-2007) § 1 4 .290 LICENSE APPLICATION. In addition to any information that may be re quired by the c ounty pursuant to M.S. § 471.924, as it may be a mended from time to time, every application for a license under this Division M shall be made on a form supplied by the issuing authority and shall contain the following information: (1) In d ivid u a l a p p lica n ts. If the applicant is a natural person: (a) The name, place a nd da te of birth, street resident a ddress and phone number of the applicant; (b) 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; (c) 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 M.S. § 333.01, as it may be amended from time to time; (d) The street addresse s at which the applica nt has lived during the prec eding five years; (e) The type, name and location of every business or occupation in which the applicant has been engaged during the prec eding five years and the name(s) and a ddress(es) of the applicant's employer(s) and partner(s), if any, for the preceding five years; (f) Whether the applica nt has ever been convicted of a felony, crime or violation of any ordinance other than a traffic ordinanc e. If so, the applic ant shall furnish information as to the time, pla ce and offense for which convictions were had; (g) The physical description of the applicant; and (h) The name of the store or general manage r(s), proprietor(s) or other agent(s) in charge of the busine ss and all informa tion concerning ea ch manager, proprietor, or agent required in this subsection (1) of this section. (2) Partn ership applicants. If the applicant is a partnership: (a) The name(s) and address(es) of all general and limited partners and all information concerning each gene ral partner required in subsection (1) above; (b) The name(s) of the managing partner(s) and the interest of each partner in the pawnbroke r 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 M.S. § 333.01, as it may be amended from time to time, a certified copy of such certificate shall be attached to the application; and (d) The name of the store or general manage r(s), proprietor(s) or other agent(s) in charge of the busine ss and all informa tion concerning ea ch manager, proprietor or age nt required in subsection (1) above. (3) Co rporate applica n ts. If the applicant is a corporation or other organization: (a) The name of the c orporation 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 byla ws shall be attached to the application. If the applic ant is a foreign corporation, a c ertificate of authority as required by M.S. § 303.06, as it may be amended from time to time, sha ll be attache d; (c) The name of the store or general manage r(s), proprietor(s) or other agent(s) in charge of the busine ss and all informa tion concerning ea ch manager, proprietor or age nt required in subsection (1) above; and (d) A list of all persons who control or own an interest in excess of 5% in such organization or business form or who are officers of the corporation or busine ss form and all informa tion concerning said persons required in subsection (1) above . (4) All a p p lica n ts. For all applicants: (a) Whether the applicant holds a current pawnbroker , precious metal deale r or secondhand goods dealer license from the city or any other governmental unit and whether the applicant is license d under either M.S. § 471.924, a s it may be amended from time to time, or M.S. §§ 325F.731 through 325F.744, as they may be amended from time to time; (b) Whether the applicant or any individual, partner, corporate officer ha ving an ownership interest in the business has previously had a pawnbroker , precious metal dealer or secondhand goods dealer license denied, revoked or suspended by any governmental unit, identifying tha t governmental unit; (c) The location of the business premises; (d) The le gal description of the premises to be licensed; (e) Whether all real estate and personal property taxes that are due and payable for the premises to be license d have been paid, and if not paid, the years and amounts that are unpaid; (f) Whenever the application is for premises either planned or under construction or undergoing substantial alteration, the application shall be accompanied by a set of pre liminary plans showing the design of the proposed premises to be lic ensed. If the pla ns or design are on file with the City Building and Inspection Division, no plans need be submitted with the issuing authority; (g) Such other information as the City Council or issuing authority may require; (h) The applicant's hours of operation, on-site management and parking facilities; (i) An executed data privac y advisory a nd consent form authorizing the release of crimina l history informa tion from each of the individuals, partners and corporate officers having an interest in the business; (j) P roof of worker's compensation insurance as require d by M.S. § 176.182, as it may be amended from time to time, and the applicant's sta te business ta x identification number, as require d by M.S. Chapter 270C; as it ma y be amended from time to time; (k) The names and addresses of all pe rsons, other than the applicant, who have any ownership, in whole or in part, in the business, buildings, premises, fixtures, furniture, stock in trade to be licensed; the nature of such ownership; the amount thereof; a nd te rms for payment or other reimbursement. Those with an ownership shall include, but not be limited to, any lessees, lessors, mortgagees, mortgagors, lendors, lien holders, trustees, trustors and persons who have cosigned notes or otherwise loaned, pledged, or extended security for any inde btedness of the applicant; and (l) The website and electronic mail addre ss for the business a nd each of the individuals, partners and corpora te officers having an interest in the business. (1958 Code, § 143.14) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; recodified by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98-27, passed 6-15-1998; Ord. 2007-18, passed 5-7-2007) § 1 4 .291 LICENSE FEES. (a) App lication f ee. (1) The license application fee shall be as set forth in § 14.03 of this code. The fee paid shall be refunded in accordance with § 14.15 of this code, except that the fee shall be refunded on a monthly basis. (2) The license application fee shall be paid in full before the application for a license shall be accepted. Upon rejection of any application for a license or upon withdrawal of any application before City Council approval, the license fee shall be refunded in full to the applicant exce pt where rejection is for a willful misstatement in the license application. (3) When the license is for premises where the building is not ready for occupancy, the time fixed for computation of the license fee for the initial license period shall be 90 da ys a fter approval of the license by the City Council or upon the date the building is ready for occupancy, whichever is sooner. (4) When a new license application is submitted as a result of incorporation by an existing licensee and the ownership, c ontrol and interest in the license are uncha nged, no additional fee shall be required. (b) In vestig a tio n f ee. (1) An a pplicant for any license under this Division M shall deposit with the issuing authority a t the time an original application is submitted, $1,500 to cover the costs involved in verifying the license application and to cover the expense of any investigation nee ded to assure compliance with this Division M. (2) If the investigation and verification process is conducted solely within the state, the fee shall be $500, and the remainde r of the deposit shall be returned to the applicant. If the investigation and verifica tion process is conducted outside the state, the issuing authority may recover the ac tual investigation costs not exceeding $1,500. (3) At any time that an a dditional investiga tion is necessary because of a change of the managing partner, store or general manager, proprietor or other person in charge of the licensed premises of its corporate structure, the licensee sha ll pay an additional nonrefunda ble investigation fee of $100. (c) Transa ctio n f ee. In addition to the a nnual application fee, a transaction fee, based upon the actual number of billable transactions conducted by the licensee, shall be billed monthly to the licensee and is due and payable within 25 da ys after the billed date. The transaction fee shall re flect the cost of processing pawn transactions and other regulatory expenses related to processing pawn transaction information, including the cost of participating in the automated pawn system. The amount of the transaction fee shall be as detailed in § 14.03 of this c ode and is dependent on the a ccuracy of the report and type of medium (mode m or manual) by which the daily reports are submitted to the City P olice Department pursuant to § 14.295.01(d) and subsection (e) be low. (d) Late tra n saction f ees. A licensee failing to make a transa ction fee payment within 25 days after the billed date shall be required to pay a penalty of 5% of the amount remaining unpaid. The amount of the transaction fe e not timely paid, together with the penalty, shall bear interest at the rate of 12% per annum, from the time the transaction fee should have been paid until it is pa id. Any interest and penalty shall be added to the transaction fee and be c ollected as part thereof. If payment of the amount due plus the 5% penalty is not paid within 30 days after the due date, an additional 10% penalty shall be imposed upon the amount due and the 5% penalty. If the delinquency continues beyond 60 da ys, a license re vocation notice may be sent a nd a revocation hearing may be commenced. The City Manager shall have the power to abate penalties when their enforcement would be unjust or inequitable . (e) Electro n ic rep o rting p ro b lems a n d pen a lty. Licensees shall report to the City P olic e Department transactions by modem, except as otherwise allowed in this subsection (e) and in § 14.295.01(d) of this c ode. If a licensee is unable to successfully transfer the required reports by modem, the licensee shall have on the pre mises and available for inspection by the P olice Department printed copies of all reportable transactions that have not been reported by modem. If the modem failure 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 in a paper or other computerize d format as approved by the P olic e Department. The licensee shall take all reasonable steps including the replacement of its computer system and related components in order to return the electronic reporting system to operational condition as soon as reasonably possible. (f) Erro n eo u sly rep o rted tra n sa ctio n pen a lty. Daily reports required to be submitted to the City P olice Department pursuant to § 14.295.01(d) of this code must accurately report the information required by § 14.295.01(a). If a license holder submits a daily report by modem containing any omission or inaccurac y in the required information, the n each transa ction containing an omission or inaccuracy will be classified as erroneous. Licensees who submit five or more erroneous transactions within a billable month shall be charged at the rate of a manually reported transaction for each such erroneous transaction during that billable month. (1958 Code, § 143.15) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; recodified by Ord. 95-13, passed 8-7-1995; amended by Ord. 96-28, passed 7-1-1996; Ord. 97-16, passed 5-5-1997; Ord. 98-27, passe d 6-15-1998; Ord. 2001-41, passed 8-20-2001; Ord. 2007-18, passed 5-7-2007) § 1 4 .292 LICENSE APPLICATION EXECUTION. All applica tions for a license under this Division M shall be signed and sworn to. If the application is that of a natural person , it shall be signed a nd sworn to by suc h person ; if that of a corporation, by an officer there of; 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. (1958 Code, § 143.16) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; recodified by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; Ord. 98-27, passed 6-15-1998; Ord. 2007-18, passed 5-7-2007) § 1 4 .293 LICENSE APPLICATION VERIFICATION. All applica tions shall be refe rred to the issuing authority for ve rification and investigation of the fa cts set forth in the application. The issuing authority shall make a written report and re commendation to the City Council as to issuanc e or nonissuance of the initial license application. The issuing authority is empowered to conduct any and all investigations to verify the information on the application, including ordering a computerized criminal history inquiry and/or a driver's license history inquiry on the applicant. The City Council may order and conduct such a dditional investiga tion as it deems necessary. (1958 Code, § 143.17) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; recodified by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; Ord. 98-27, passed 6-15-1998; Ord. 2007-18, passed 5-7-2007) § 1 4 .294 LICENSE APPLICATION CONSIDERATION AND B OND REQUIRED. (a) Licen se a p p lica tio n consideration. The initial application for a license under this Division M shall be pre sented to the City Council for consideration after the issuing authority has verified the information on the initial license application and conducted any investigation, including a criminal background che ck, to assure compliance with this Division M. The hearing before the City Council shall be advertised at least te n days prior to the scheduled date of the hearing. The City Council may accept or deny the license application at such public hearing. Renewal a pplications shall be governed by § 14.295.04 of this c ode. If an applic ation is granted for a location whe re a building is under construction or not ready for occ upancy, the license shall not be delivered to the licensee until a certificate of occupancy has been issued for the licensed premises. (b) Bon d req u ired . Before a new license will issue or upon the renewal of a n existing lice nse after the effective date of this amendment to city code, every applicant must submit a $10,000 bond on the forms provided by the issuing authority. The bond must be maintained so long as the pawnbroker does business and shall be for the benefit of the city or any person suffering damage through the actions of the pawnbroker in violation of this code or other applicable laws. The bond by its terms shall not be terminable without 180- day advance notic e to the c ity and must be conditioned upon the applicant's obse rvation of all la ws relating to pawnbrokers and the applicant's ability to conduct business in conformity therewith. The bond must also ensure that the a pplicant will pa y to the city, when due, all taxes, license fees, penalties and othe r c harges provided by law. Additionally, in the eve nt of a violation of any law rela ting to the business for which the lice nse has been granted, the bond shall be forfeited to the city and distributed first for the payment of all of the city's costs relative to the law violation, taxes, fees and penaltie s. Those funds remaining shall be held for a period of one year for the purpose of victim compensation on a pro rata basis, all funds re maining after victim compensation shall be directed to the city's General Fund. (1958 Code, § 143.18) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; recodified by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; Ord. 98-27, passed 6-15-1998; amended by Ord. 2007-17, passed 4-9-2007; Ord. 2007-18, passe d 5-7-2007) § 1 4 .295 PERSONS AND LOCATIONS INELIGIB LE FOR A LICENSE. (a) In d ivid u a ls ineligib le. No original or renewal license under this Division M shall be issued to an applic ant who is a natural person if such applicant: (1) Is not 18 years of age or older on the da te the license application is submitted to the issuing authority; (2) Has been convicted of any crime direc tly related to the occupation license d as prescribed by M.S. § 364.03, subd. 2, as it may be amended from time to time; and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by M.S. § 364.03, subd. 3, as it may be amended from time to time; (3) Is not of good moral character or repute ; (4) Holds a n intoxicating liquor license under §§ 13.38 through 13.57 of this code; (5) Has knowingly falsified or misrepresented information on the license application; (6) Is not the real party in interest in the business being licensed; (7) Owe s taxes or asse ssments to the state, county, sc hool district or city that are due and delinquent; or (8) Has had an interest in a corporation, partnership, association, enterprise , business or firm that had a pawnbroker, prec ious metal or secondhand goods de aler's license denied or revoked as a result of a violation of law within five years of the date the license application is submitted to the issuing authority. (b) Partn ership in elig ibility. No original or renewal license under this Division M shall be issued to an applic ant that is a partnership if such applicant has any general partner or managing partner: (1) Who is not 18 years of age or older on the date the lice nse application is submitted to the issuing authority; (2) Who has been convicted of any crime directly relate d to the occupation licensed as prescribed by M.S. § 364.03, subd. 2, as it may be amended from time to time, and who ha s not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by M.S. § 364.03, subd. 3, as it may be amende d from time to time; (3) Who is not a citize n of the United Sta tes or a resident alien, or is legally prohibited from working in the United States; (4) Who is not of good moral characte r or repute; (5) Who holds an intoxicating liquor lic ense under §§ 13.38 through 13.57 of this code; (6) Who has knowingly falsified or misrepresented information on the lic ense application; (7) Who is not the rea l party in interest in the business being licensed; (8) Who owes taxes or assessments to the state, county, school district or city that are due and delinquent; or (9) Has had an interest in a corporation, partnership, association, enterprise , business or firm that had a pawnbroker, prec ious metal or secondhand goods de aler's license denied or revoked as a result of a violation of law within five years of the date the license application is submitted to the issuing authority. (c) Co rporate and a ssocia tio n in eligib ility. No original or renewal lice nse under this Division M shall be issue d to an applicant that is a corporation or othe r organization if such applicant has any manager, proprietor or agent in charge of the business to be licensed: (1) Who is not 18 years of age or older on the date the lice nse application is submitted to the issuing authority; (2) Who has been convicted of any crime directly relate d to the occupation licensed as prescribed by M.S. § 364.03, subd. 2, as it may be amended from time to time, and who ha s not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by M.S. § 364.03, subd. 3, as it may be amende d from time to time; (3) Who is not of good moral characte r or repute; (4) Who holds an intoxicating liquor lic ense under §§ 13.38 through 13.57 of this code; (5) Who has knowingly falsified or misrepresented information on the lic ense application; (6) Who is not the rea l party in interest in the business being licensed; (7) Who owes taxes or assessments to the state, county, school district or city that are due and delinquent; or (8) Has had an interest in a corporation, partnership, association, enterprise , business or firm that had a pawnbroker, prec ious metal or secondhand goods de aler's license denied or revoked as a result of a violation of law within five years of the date the license application is submitted to the issuing authority. (d) Locations inelig ible. The following loca tions shall be ineligible for a license under this Division M. (1) Cla ims d u e. 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 pa st due, delinquent or unpaid. In the event a suit has been commence d under M.S. §§ 278.01 through 278.13, as they may be amended from time to time, questioning the amount or validity of taxes, the City Council ma y on application waive strict compliance with this provision; no waiver may be granted, however, for taxes or any portion thereof whic h remain unpaid for a period exc eeding one year after becoming due. (2) Imp ro p er zonin g . No license shall be granted if the property is not properly zoned for pawnshops under Chapter 19 or 21 of this code, unless the business is a legal, nonconforming use. (3) Pro ximity to sensitive u ses. No license shall be grante d to any location within 500 feet of a school, c ity-owned athletic playfield, public ly-owned park, playfield, rec reational area or open space. In the case of a school or playfield facility, the dista nce shall be measured in a straight line without regard to intervening structures or objects from the lot on which the establishment to be licensed is located to the nearest point of the lot on which the school or playfield is located. A location for which a license was lawfully granted prior to 2007, and at which a licensee has been in continuous opera tion, is not ineligible for a license by reason of proximity to a school or playfield facility. (4) Limita tio n on n u mb er of licenses issu ed . No license shall be granted when the issuance thereof would increase the number of such licenses outstanding and in force at that time to more than one per each 50,000 inhabitants or fraction the reof residing in the city according to the most recent United States Ce nsus data . A loc ation for which a license was lawfully granted prior to 2007, and at which a license e has been in continuous operation, is not ineligible for a license by reason of this restriction. However, this section of code shall not be construed to vest in any licensee the right to hold a semi-exclusive license in that the City Council reserves the right, by properly adopted ordinance , to increase the number of lic enses at any time. (1958 Code, § 143.19) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; recodified by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; Ord. 98-27, passed 6-15-1998; Ord. 2007-17, passed 4-9-2007; Ord. 2007-18, passed 5-7-2007; Ord. 2010-1, passed 1-4-2010) § 1 4 .295.0 1 LICENSE RESTRICTIONS. (a) Cu sto mer receipt req u ired . At the time of making a reportable transac tion, the pawnbroker shall provide a receipt to the pledgor or seller identified the reportable tra nsaction. The following shall be printed on all customer receipts: (1) The statement that "Any personal property pledged to a pawnbroker within this state is subject to sale or disposal when the re has been no payment made on the account for a period of not less than 60 days past the date of the pawn transaction, renewal or extension; no further notice is necessary. There is no obligation for the pledgor to redeem pledged goods ."; (2) The statement that "The pledgor of this item attests tha t it is not stolen, it has no liens or encumbrances against it, and the pledgor has the right to sell or pawn the item."; (3) The statement that "This item is redeemable only by the pledgor to whom the receipt was issued, or any person identified in a written and notarized authorization to redeem the property identified in the rece ipt, or a person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor. Written authorization for release of property to persons other than the original pledgor must be maintained along with the original transaction rec ord."; (4) The name, address and telephone number of the lice nsed business; (5) The date and time the item was received by the licensee ; (6) Whether the item wa s pa wned or sold, or the nature of the transaction; (7) An a ccurate description of each item received including, but not limited to, any trademark, identification number, seria l number, model number, brand name or other identifying mark on such an item; (8) The signature or unique identifier of the licensee or employee that conducted the transaction; (9) The amount advanc ed to the pledgor or paid to the seller; (10) The monthly and a nnual interest rates, including all pawn fees and cha rges; (11) The last regular day of business by whic h the item must be redeemed by the pledgor without risk that the item will be sold, and the amount necessary to redeem the pa wned item on that date; (12) The full name, residence address, re sidence telephone number and date of birth of the pledgor or seller; (13) 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 Minne sota identification card; or (C) Current valid photo driver's license or identification ca rd issued by another state. (14) Description of the pledgor, including sex, height, weight, race, color of e yes and color of hair; and (15) The signature of the seller or pledgor. (b) Record s. At the time of the licensee's re ceipt of pledged or purchase d goods within the limits of the city or outside the city limits when those goods are intended for sale, held for sale or offered for sale on the licensed premises, the licensee shall immediately record, using the English langua ge, in an indelible ink or othe r indelible medium, in a book or journa l, which ha s pa ge numbers that are pre-printed, or in a computerized record approved by the issuing authority, the following information: (1) An a ccurate 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; (2) The nature of the transaction, such as pawn, trade, consignment or sale ; (3) The amount advanc ed to the pledgor or purchase price pa id to the seller, asking price if c onsigned, or value attributed to the item if accepted in trade, for e ach item received; (4) The date and time the item of property was received by the licensee; (5) The monthly and annual interest ra tes, including all pawn fees and charges; (6) The full name, address, telephone number, driver's license or state identification card number, physical description including sex, height, weight, race, color of eyes and color of hair, and date of birth of the person from whom the item of property was received; (7) The la st regular day of business by which the item must be redeemed by the pledgor without risk that the item will be sold and the amount nec essary to redeem the pawne d item on that date; and (8) The full name of the employee conducting the transaction. Each item rec eived must be separately described and rec orded notwithstanding that the items may have been received from the same customer at the same time. The pawnbroker shall maintain on the premises a record of all transactions of pledged or purchased goods for a period of three years. These records shall be a correct copy of the e ntries made of the pawned transactions. A pawnbroker must, upon request, provide to the appropriate law enforcement agency, License Section or their designee a complete record of pawn items. (c) In sp ec tio n of reco rd s. The pawnbroker must make immediately available the record of all transactions during the licensee's normal business hours and at all other reasonable times for inspection by the City P olice Depa rtment or issuing authority. (d) Co mp u terized d a ily rep o rts to police; excep tio n . At the close of each business day, the pawnbroker shall submit the information re quired by subsection (b) above to the City P olic e Department by tra nsferring the information via computer modem or other approved electronic method, from the pawnbroker's computer to the automated record syste m and terminal specified by the issuing authority. P awnbroke rs who can establish to the issuing authority that they conduct fewer than 400 transac tions a yea r may provide the required information in writing by 12:00 noon the first business day following the date of the transaction. (e) Police o rd er to h o ld o r co n f isca te p roperty. (1) In vestig a tive hold . Whenever a law e nforcement official from any agency notifies a licensee not to sell an item, the item shall not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the originating agency within 72 hours and shall remain in effect for 15 days from the date of initial notification, or until the investigative order is canceled, or until an order to hold/confiscate is issued by the Chief of P olice or the Chief's designe e. (2) Ord er to hold . Whenever the Chief of P olice or the Chie f's designee notifies a lice nsee not to sell an item, the item shall not be sold or removed from the licensed premises until authorized by the Chief of P olice or the Chief's designee. An order to hold sha ll expire 90 days from the date it is issued, unless the Chief of P olice or the Chief's designee determines the hold is still necessary a nd notifies the licensee in writing to continue the hold. (3) Ord er to conf isca te. If an item is identified as stolen or evidence in a criminal case, the Chief of P olice or Chief's de signee may: (a) P hysically confisca te and remove the item from the premises, pursuant to a written order from the Chief of P olice or the Chief's designee; or (b) P lace the item on hold indefinitely, in which case the item shall not be sold or removed from the premises without the written order of the Chief of P olice or the Chief's designee. When a n item is confisc ated, 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/confisc ate is no longer necessary, the Chief of P olice , or Chief's designee shall so notify the licensee. (f) Pro h ib itio n a g a inst sa le o r remo va l o f p ro p erty. (1) Pa wned items. Any person pledging, pawning or depositing an item for security must have a minimum of 60 days from the date of that transaction to redeem the item before it may be forfeited and sold. During the 60-day redemption period or any extensions of the pawn tra nsaction, items may not be removed from the premises or sold, except as provided in § 14.295.03 of this code. The date by which an item of property that has been pawned must be re deemed by the pledgor without risk that the item will be sold shall be a day on which the pawnbroke r is open for re gula r business. Licensees are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued or, to any person ide ntified in a written and notarized authorization to redeem the prope rty identified in the receipt, or to a person identified in writing by the pledgor at the time of the initial tra nsaction and signed by the pledgor. Written authorization for rele ase of property to persons othe r than original pledgor must be maintained along with original transaction record in accordance with this Division M. An individual ma y redeem an item pawned 72 hours after the item was received on deposit by the pawnbroker excluding Sundays and state legal holidays. (2) Pu rch a sed items. Any item sold to a pa wnbroker shall not be sold or othe rwise removed from the premises for 30 days after the date of the sale, unless the item purchased is a precious metal subject to a 14-day hold. (g) Ho u rs o f o p era tio n . No pawnbroker shall keep the pawnshop open for the transaction of business on any day of the week before 6:00 a.m. or after 10:00 p.m. (h) Prohib ited transactions. No licensee, clerk, agent or e mployee thereof sha ll purchase or re ceive any personal property of any nature on deposit or pledge under the following circumstances: (1) Unless the property is delivered in- person by one who signs a statement attesting to be the true owner of the property a nd that the property is free of all claims and liens; (2) From any person who fails to present proper identification in the form of a current valid Minnesota driver's license, a current valid Minnesota identification card or a current valid photo driver's license or photo identification card issued by a nother state or a province of Canada; (3) From any person under the age of 18 ye ars; (4) From any person who is obviously intoxicated, chemica lly impaired or incompetent; (5) Whenever the item of property contains an altered or obliterated se rial number, operation identification number or otherwise altered so as to remove, alter or obliterate a unique identifier of the property; and (6) No person may pa wn, pledge, sell, c onsign, leave or deposit any article of property not their own, nor shall any person pawn, pledge, sell, consign, leave or deposit the property of another, whether with permission or without, nor shall any person pawn, pledge , sell, consign, leave or deposit any article of property in which a nother has a security interest, with any licensee . (i) Inspectio n o f items. The pawnbroker shall, at all times during the term of the license, allow the City P olice Department or issuing authority to enter the premises where the pawnbroker business is located, including all approved off-site storage facilities, during normal business hours and at all other reasonable times, for the purpose of inspecting such premises and inspecting the items, ware and merchandise therein for the purpose of locating items suspected or allege d to have bee n stolen or otherwise improperly disposed of and to verify complia nce with this Division M and applicable state laws. (j) License disp lay and signage. A license issued under this Division M must be posted in a conspicuous place in the premises for which it is used. In addition, a sign must be conspicuously posted on each licensed premises stating at least the following: "To paw n or sell property: A. You must be at least 18 years of age; B. You must be the true owner of the property; C. The property must be fr ee of all claims and liens; D. You must present valid photo i denti fication; E. Violation of any of these requirements is a crime; F. All transactions are repor ted to poli ce dai l y." (k) M a in ten a n ce of order. A licensee under this Division M shall be responsible for the c onduct of the business being ope rated and shall maintain conditions of order. (l) Gamb lin g . No licensee under this Division M may ke ep, possess or opera te, or permit the ke eping, posse ssion 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 rede emable in merchandise or cash. No gambling equipment authorized under M.S. Chapter 349, as it may be a mended from time to time, may be kept or operated and no raffle s may be conducted on the licensed premises and/or adjoining rooms. The purchase of lottery tic kets may take pla ce on the licensed premises as authorized by the director of the lottery pursuant to M.S. Chapter 349, as it may be amended from time to time. (m) Ph o to g raphs a n d vid eos o f cu sto mers and p roperty . (1) Persons a n d pro p erty to b e p h o to g raphed. All lic ensees shall take a color photogra ph or color video recording of eac h customer involved in a reporta ble transaction and every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed. (2) Ph o to g raph requ iremen ts. If a photograph is taken, it must be at least two inches in le ngth by two inches in width and must be maintaine d in such a manner that the photogra ph can be readily matched and c orrelated with all other records of the transaction to which they rela te. Such photogra phs must be ava ilable to the Chief of P olice, or the Chief's designe e, upon reque st. 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 accura tely depicted. The licensee must inform the person that he or she is being photographed by displaying a sign of sufficient size in a conspicuous pla ce in the premises. (3) Vid eo re q u iremen ts. If a video photograph is taken, the video camera must zoom in on the person pawning or selling the item so as to inc lude an identifiable close-up of that pe rson's face. Items photographed by video must be accurately depicted. Video photographs must be electronically referenc e by time and date so they can be readily matched and correlated with all other records of the transaction to which they re late. The licensee must inform the person that he or she is being videotaped by displaying a sign of sufficient size in a conspicuous pla ce on the premises. The lic ensee must keep the exposed videotape for three months. (4) Dig ita l ima g es. Effe ctive 120 days from the date of notification by the issuing authority licensees must fulfill the color photograph requirements by submitting them as digital images, in a format spe cified by the issuing authority, electronically cross- referenced to the reportable transaction they a re associated with. (5) Electro n ic reportin g problems. If a licensee is una ble to capture, digitize or video record the photographs required in this section, the lice nsee shall immediately take all required photographs with a still camera, immediately develop the pictures and c ross- reference the photographs to the correct transaction. (n) Licen sed p remises. A license issued under this Division M is effective only for the compact and contiguous space or premises specified in the approved license a pplication. A separate license is required for e ach place of business. (o) Ch a n g e in ownersh ip. Any change, directly or benefic ially, in the ownership of any license pawnshop shall require the application for a new license and the new owner must satisfy all current eligibility requirements. (p) Ef f ec t o f n o n redemp tio n . (1) A pledgor shall have no obligation to redeem pledged goods or make any payment on a pawn transa ction. P ledged goods not redeemed within at least 60 days of the date of the pawn transaction, renewal or extension shall automatically be forfeited to the pawnbroker, and qualified right, title, and interest in and to the goods shall automatically vest in the pawnbroker. (2) The pawnbroker's right, title and interest in the pledge d goods under subse ction (p)(1) above is qualified only by the pledgor's right, while the pledged goods remain in possession of the pawnbroker and not sold to a third pa rty, to redeem the goods by paying the loan plus fee s and/or interest acc rued up to the date of redemption. (q) Permitted charg es. A pawnbroker may charge only interest rates and fees allowed by M.S. § 325J.07, as it may be amende d from time to time, and a schedule of charges must be posted on the pawnshop premises in a plac e clearly visible to the general public. (r) Risk o f lo ss. In the event pledged goods are lost or dama ged while in possession of the pawnbroker, the pawnbroker shall compensate the pledgor, in cash or replacement of goods ac cepta ble to the pledgor, for the fair market value of the lost or damaged goods. P roof of compensation shall be a defe nse to any prosec ution or civil action. (s) Pawn ing o f moto r veh icle titles. (1) In addition to the other re quirements of state law, a pawnbroker who holds a title to a motor vehicle as part of a pawn transaction shall, pursuant to M.S. § 325J.095, as it may be amended from time to time: (A) Be licensed as a used motor vehicle dealer unde r M.S. § 168.27, as it may be amended from time to time, and post such license on the pa wnshop premise s; (B) Verify that there a re no liens or e ncumbrances aga inst the motor vehicle with the department of public safety; (C) Verify that the pledgor has automobile insurance on the motor vehicle a s required by law; and (D) A pa wnbroker may not sell a motor vehicle covered by a pawn transa ction until 90 days after recovery of the motor vehicle. (2) A pa wn transaction that involves holding only the title to property is subject to M.S. Chapter 168A or 336, as they may be amended from time to time. (t) La b el re q u ired . License es must atta ch a label to every item at the time it is pawned, purchased or received in inventory from any reportable transaction. P ermanently recorded on this label must be the numbe r or name tha t identifies the transaction in the shop's records, the transaction date, the name of the item and the de scription or the model and serial number of the item as reported to the P olice Department, whichever is applicable, and the date the item is out of pawn or can be sold, if applicable. Labels shall not be reused. (u) Disp la y a n d sto rag e o f f irea rms. As a c ondition of licensure, the display and storage of a ll firearms must be approved by the City P olice Department and must be compliant with applicable federal and state security standards, including, but not limited to, M.S. § 624.7161, and Minnesota Rule s Chapter 7504. Firearms may be sold only when allowed in a particular location by the Zoning Ordinance. (v) In a ctive licen se. Any licensed pawnbroker who fails to conduct any pawn transactions for a period of six consecutive months shall be sent by the issuing authority a notice of hearing to show ca use why the lice nse should not be revoked by the City Council. At that hearing, the City Council shall determine the status of the pawnbroker's operations and if satisfactory proof of intent to conduct business under the license is not demonstrated by the licensee, the City Council may revoke the lice nse. (1958 Code, § 154.01) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; Ord. 92-36, pa ssed 7-27-1992; recodified by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98-27, passed 6-15-1998; Ord. 2007-18, passe d 5-7-2007; Ord. 2011-2, passed 1-24-2011; Ord. 2016-28, passed 11-21-2016) § 1 4 .295.0 2 RESTRICTIONS REGARDING LICENSE TRANSFER. (a) Each license under this Division M shall be issued to the applicant only and shall not be transferable to any other person . No licensee shall loa n, sell, give or assign a license to another person . A license issued under this Division M is for the person and premises named on the approved license application, only at the permanent place of business designated on the license. However, upon written request, the issuing authority may approve an off-site, locked and secured storage facility. No transfe r of a license shall be permitted from place-to-place or from person -to- person , e xcept in the case in which an existing licensee is merely changing a business or corporate name or changing their corporate structure so long as there is no change in the ownership or control of the business or function. All license s issued under this Division M must be posted in a conspicuous pla ce on the premises for which it issued. (b) A licensee under this Division M must immediately notify the issuing authority of the following: (1) A change in the corporate or organization officers listed in the license a pplication; (2) Any changes in the partnership agree ment; (3) A change of the managing partner, store or general ma nager, proprietor or other person who is in charge of the license d premises; and (4) Any change in the ownership of an establishment licensed under this Division M, including any acquisition of an interest in the partnership, corporation or other organization by any person not ide ntified in the license application. (c) When an establishment lice nsed under this Division M is sold or transferred, the licensee shall immediate ly notify the issuing authority of the sa le or transfe r. If the establishment that is sold or transferred is to continue in the business of pa wnbroker, the new owner must immediately apply for an appropriate license under this Division M. In addition, a ma nagement agre ement, which covers the period betwe en the sale or transfer and the issuance of the new owner's lic ense, shall be exe cuted betwee n the existing licensee and the new owner within 20 days following the sale or transfer. The manage ment agreement sha ll vest control of all of the pawnbroker's business in the existing licensee or a manager responsible to the existing licensee. The agreement shall be approved by the City Council. (d) A ma nagement agre ement shall be required of any licensed pawnbroker whose business is being managed or operated by a person other than the licensee or an employee of the license e. No person other than the licensee or an employee of the license e shall be permitte d to manage or operate an establishment licensed under this Division M until the City Council has reviewed and approved the management agreement and any amendments thereto. (1958 Code, § 154.03) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; Ord. 81-32, pa ssed 7-27-1981; Ord. 87-77, passed 10- 16-1987; Ord. 92-36, passed 7-27-1992; rec odifie d by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98- 27, passed 6-15-1998; Ord. 2007-18, passed 5-7-2007) § 1 4 .295.0 3 OFF-SITE STORAGE FACILITY. A license under this Division M authorizes the licensee to carry on its business only at the permanent place of business designated on the license. Howe ver, upon written request, the c ity may approve an off-site locked and secured storage facility. Such a site must meet all city zoning requirements. The licensee shall permit inspection of the facility in accordance with this Division M. All provisions of this Division M regarding record keeping and reporting apply to the facility and its contents. P roperty shall be stored in complia nce with all provisions of the city code. The licensee must either own the building in which the busine ss is conduc ted, a nd any approved off-site storage facility, or ha ve a lease on the business premises which extends for more than six months. No reta il business or pawn transactions shall be conducted a t this off-site storage site. (1958 Code, § 154.03) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; Ord. 80-55, pa ssed 12-15-1980; Ord. 92-36, passed 7- 27-1992; rec odifie d by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98-27, passed 6-15-1998; Ord. 2007- 18, passed 5-7-2007) § 1 4 .295.0 4 RENEWAL APPLICATION. (a) Ef f ec t o f license; deadline f or renewal application. All licenses issued under this Division M shall be e ffective for one year from the date of a pproval by the City Council. An application for the renewal of a n existing lice nse shall be made prior to the expiration date of the license and shall be made in such form as the issuing authority requires. If, in the judgment of the City Council, good and suffic ient cause is shown by an applicant for the applicant's failure to submit a renewal application before the expiration of the existing lice nse, the City Council may, if the other provisions of this Division M are complied with, grant the renewal application. (b) Co n sid era tio n of ren ewa l applica tio n . Within a reasona ble period after the completion of the renewal license verification process by the issuing authority, the issuing authority shall accept or deny the renewal license application in accordance with this Division M. If the renewal applic ation is denied, the issuing authority shall notify the applicant of the determina tion in writing. The notice shall be mailed by regular mail to the a pplicant at the addre ss provided in the application and it shall inform the applicant of the applicant's right, within 20 da ys a fter receipt of the notice by the applicant to re quest an appeal of the issuing authority's determination to the City Council. If an appe al to the City Council is timely rec eived by the issuing authority, the hearing before the City Council shall ta ke place within a reasonable period of rec eipt of the appeal by the issuing authority. (1958 Code, § 154.04) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; Ord. 92-36, pa ssed 7-27-1992; recodified by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98-27, passed 6-15-1998; Ord. 2008-15, passe d 5-5-2008) § 1 4 .295.0 5 SANCTIONS FOR LICENSE VIOLATIO NS. (a) Suspen sion o r revo c a tio n . The City Council may revoke a license, suspend a license for up to 60 days, impose a civil penalty of up to $2,000 for each violation, or impose any combination of these sanctions, issued pursuant to this Division M for a viola tion of: (1) Fraud, misrepresentation or false statement containe d in a license a pplication or a renewal application; (2) Fraud, misrepresentation or false statement made in the course of carrying on the license d occupation or business; (3) Any violation of this Division M or state law; (4) A licensee's criminal c onviction that is directly related to the occupation or business lic ensed as defined by M.S. § 364.03, subd. 2, as it may be amended from time to time, provided that the licensee cannot show competent evidence of sufficient rehabilitation and present fitne ss to perform the duties of the licensed occupation or business as defined by M.S. § 364.03, subd. 3, as it may be amended from time to time; or (5) Conduc ting the license d business or occupation in an unlawful manner or in such a manner as to constitute a breach of the peace or to constitute a menace to the health, safety or general we lfare of the community. (b) No tic e o f h ea ring. A revocation or suspe nsion by the City Council shall be preceded by written notice to the licensee and a hearing. The notic e shall give at least eight days' notice of the time and place of the hearing and shall state the nature of the cha rges against the licensee. The notic e shall be mailed by regular ma il to the license e at the most recent address listed on the license application. (1958 Code, § 154.05) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; Ord. 76-59, pa ssed 12-6-1976; Ord. 81-58, passed 11- 23-1981; Ord. 82-38, passed 9-27-1982; Ord. 92-36, passed 7-27-1992; recodifie d by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98-27, passed 6-15-1998; Ord. 2007-18, passed 5-7-2007; Ord. 2008-15, passed 5-5-2008; Ord. 2011-2, passed 1-24-2011) § 1 4 .295.0 6 PROHIB ITED ACTS. A pawnbroker and any clerk, agent or employe e of a pawnbroke r shall not: (1) Make any false entry in the records of pawn transactions; (2) Falsify, obliterate, destroy or remove from the place of business the records, books or acc ounts relating to the licensee 's pawn transactions; (3) Refuse to allow the appropriate law enforcement agenc y, the Attorney General or any other duly authorized state or federal law enforcement officer to inspect the pawn records or any pa wn goods in the person's possession during the ordinary hours of business or other time acceptable to both parties; (4) Fail to maintain a record of each pawn transaction for thre e years; (5) Acc ept a pledge or purchase property from a person under the age of 18 years; (6) Make any agreement requiring the personal liability of a pledgor or seller, or waiving any provision of this section, or providing for a maturity da te less than one month afte r the date of the pawn transaction; (7) Fail to return pledged goods to a pledgor or seller, or provide compensation as set forth in M.S. § 325J.09, as it may be amended from time to time, upon payment of the full amount due the pawnbroke r unless either the date of redemption is more than 60 days past the date of the pawn transaction, renewal, or extension a nd the pawnbroker has sold the pledged goods pursuant to M.S. § 325J.06, as it ma y be amended from time to time, or the pledged goods have bee n taken into c ustody by a court or a law enforcement officer of a gency; (8) Sell or lease, or agre e to sell or lease , ple dged or purchased goods back to the pledgor or seller in the same, or a relate d transaction; (9) Sell or otherwise charge for insurance in connection with a pawn transaction; or (10) Remove pledged goods from the pa wnshop premise s or other storage place approved by a municipality a t any time unredeemed, pledged goods are sold pursuant to M.S. § 325J.06, as it may be amended from time to time. (1958 Code, § 154.06) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; Ord. 75-33A, passed 6-16-1975; Ord. 77-87, passed 12- 19-1977; Ord. 92-36, passed 7-27-1992; rec odifie d by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98- 27, passed 6-15-1998; Ord. 2007-18, passed 5-7-2007) § 1 4 .295.0 7 PENALTY. A violation of this Division M shall be a misde meanor under state law. Civil pe nalties shall be subject to assessment pursuant to § 12.15 of the City Charter and § 1.19 of this c ity code. However, nothing in this Article IV shall be construed to limit the city's other available legal re medies for any violation of the law, including without limitation, licensing sanc tions, criminal, civil and injunctive actions. In addition, violations or failure to pay civil fines may result in future lic ense ineligibility. (1958 Code, § 154.07) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; Ord. 80-55, pa ssed 12-15-1980; Ord. 92-36, passed 7- 27-1992; rec odifie d by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98-27, passed 6-15-1998; Ord. 2007- 18, passed 5-7-2007) § 1 4 .295.0 8 SEVERAB ILITY. If any section, subsection, sentence, clause or phrase of this Division M is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Division M. The City Council hereby declare s that it would have adopted this ordinance and each section, subsection, sentences, clause or phrase thereof, irrespective of the fact that any one or more sec tions, subsections, sentences, clauses or phrases be declared invalid. (1958 Code, § 154.08) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; amended by Ord. 92-36, passed 7-27-1992; recodified by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98-27, passed 6-15-1998; Ord. 2007-18, passed 5-7-2007) 5-34 F. One agricultural building upon the commercial stable property shall be permitted to contain within such building no more than one (1) caretaker's unit. G. The ratio of equines to acres of land use for running, exercising, or feeding equines shall be no more than four (4) to one (1). H. All equines shall be provided shelter sufficient to protect against potentially injurious weather. All such shelters shall be structurally sound, provide sufficient ventilation, and be maintained in good repair. I. Equine stalls shall provide sufficient space for the equine to lie or roll with a minimum danger of injury to itself. Stalls shall be cleaned and kept dry to the extent that the animal is not required to lie or stand in fluids. Bedding shall be provided in all stalls, kept reasonably clean, and periodically changed. The nature of the bedding shall not pose a health hazard to the animal. J. Stalled equines shall be provided an adequate opportunity for at least one (1) hour of exercise daily unless exercise is restricted by a licensed veterinarian. K. No person shall neglect or cause cruelty to an equine. L. All equines shall be provided with adequate health care. M. All equines shall be provided with a sufficient quantity and quality of food to allow for normal growth and the maintenance of body weight. N. All equines shall be provided or given access to clean, potable water in sufficient quantity to satisfy the animal's health needs. Snow or ice shall not be considered a water source. Subd. 4. Inspections. The Zoning Administrator or designee shall inspect every commercial stable no less than twice per year or as frequently as the City may deem necessary to ensure compliance with the terms of Subdivision 3 and any conditions of the license for such commercial stable. Any person who operates a commercial stable shall, upon request of the Zoning Administrator or designee, permit access to all parts of the commercial stable for the purpose of inspection. The Zoning Administrator or designee shall prepare a report of every inspection of a commercial stable. A copy of such report shall be mailed to the person operating the commercial stable and forwarded to the Council prior to the Council's review of a license application or renewal. Source: Ordinance No. 34-83 Effective Date: 8-26-83 SECTION 5.71. PAWNBROKERS AND PRECIOUS METAL DEALERS. Subd. 1. Purpose. The Council finds that pawnbrokers and precious metal dealers potentially provide an opportunity for the commission and concealment of crimes. Such businesses have the ability to receive and transfer stolen property easily and quickly. The Council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers and precious metal dealers. The purpose of this section is to prevent pawnbroking and precious metal businesses from being used as facilities for commission of crimes and to ensure that such businesses comply with basic consumer protection standards, thereby protecting the public health, safety and general welfare of the citizens of the City. Subd. 2. Definitions. A. "Goods" means goods as defined in Minnesota Statutes, Section 336.9-105(f). B. "Item containing precious metal" means an item made in whole or in part of metal and containing more than one percent by weight of silver, gold, or platinum. FROM EDEN PRAIRIE CODE 5-35 C. "Minor" means any natural person under the age of 18 years. D. "Oversized items" means large items such as cars, boats, and other motorized vehicles and motorized equipment. E. A natural person, partnership, corporation, or other organization, which owns five percent (5%) or more of an applicant or licensee (and officers of such a corporation or other organization) shall be deemed a "parent." A natural person, partnership, corporation, or other organization (and officers of such a corporation or other organization) owning five percent (5%) or more of a parent shall also be deemed a "parent." F. (a) "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 definition of "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 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 Department of Commerce of the State of Minnesota. G. "Pawnshop" means the location at which or premises in which a pawnbroker regularly conducts business. H. "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. I. "Person" means an individual, partnership, corporation, limited liability company, joint venture, trust, association, or any other legal entity, however organized. J. "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. K. "Precious metal dealer" means any person engaging in the business of buying secondhand items containing precious metal, including, but not limited to, jewelry, watches, eating utensils, candlesticks, and religious and decorative objects. L. "Precious metals" means silver, gold, or platinum. M. "Secondhand item" means tangible personal property, excluding motor vehicles, which has been previously used, rented, owned, or leased. Subd. 3. License Required. No person shall engage in the trade or business of pawnbroker or precious metal dealer within the City unless such person is currently licensed under this ordinance. Any pawn transaction made without benefit of a license is void. A separate license is required for each place of business. More than one license may be issued to a person upon compliance with this Section for each license. 5-36 Subd. 4. Exceptions to License Requirement. A. Precious metal dealers conducting the following transactions are not required to obtain a license under this Section. 1. Transactions at occasional "garage" or "yard" sales, or estate sales or farm auctions held at the decedent's residence, except that precious metal dealers must comply with the requirements of Minnesota Statutes, Sections 325F.734 to 325F.742, for these transactions. 2. Transactions regulated by Minnesota Statutes, Section 80A. 3. Transactions regulated by the Federal Commodity Futures Commission Act. 4. Transactions involving the purchase of precious metal grindings, filings, slag, sweeps, scraps, or dust from an industrial manufacturer, dental lab, dentist, or agent thereof. 5. Transactions involving the purchase of photographic film, such a lithographic and x-ray film or silver residue or flake recovered in lithographic and x-ray film processing. 6. Transactions involving coins, bullion, or ingots. 7. 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, Sections 325F.734 to 325F.742. 8. 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. 9. Transactions in which the buyer of the secondhand item containing precious metal is engaged primarily in the business of buying and selling antiques, and the items are resold in an unaltered condition, except for repair, and the items are resold at retail, and the buyer paid less than $2,500 for secondhand items containing precious metals purchased within any period of twelve (12) consecutive months. Subd. 5. Persons Ineligible. A. No license shall be issued or held by any person who: 1. Is a minor at the time the application is filed. 2. Has been convicted of any crime directly related to the licensed occupation and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of pawnbroker or precious metal dealer as prescribed by Minnesota Statutes, 1995, Section 364.03, Subdivision 3. 3. A person who is not of good moral character or repute. 4. Holds a liquor license under City Code. 5. In the judgment of the Council, is not the real party in interest or beneficial owner of the business operated under the license, or 5-37 6. Has had a pawnbroker or precious metal dealer's license revoked anywhere within five (5) years of the license application, or 7. Is a corporation, partnership or other organization which has a parent who is or meets a condition set forth in subparagraphs 1. through 6. hereof. Subd. 6. Places Ineligible. A. No license shall be issued or held for any place or any business ineligible for a license under City ordinance or State law. B. No license shall be issued or held for operation in any zoning district other than Regional Commercial or Regional Services Districts. C. No license shall be issued or held for a place or business which holds a liquor license. D. No license shall be granted or held for operation on any premises on which taxes, assessments or other financial claims of the City or other government agency are delinquent and unpaid, except if an action has been commenced pursuant to the provisions of Minnesota Statutes Chapter 278, questioning the amount or validity of taxes, the Council may on application by the licensee 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 unless such one (1) year period is extended through no fault of the licensee. E. No license shall be granted or held if the property on which the business is or is to be conducted is owned by a person who is ineligible for a license, except that a property owner who is a minor shall not make the premises ineligible under this subparagraph. F. No pawnshop shall be located within ten (10) driving miles of any gambling casino. No pawnshop, lawfully operating as of the date of the enactment of this Section, shall be required to relocate or close as a result of this subparagraph. Subd. 7. License Application. A. In addition to any information which shall be required pursuant to any provision of Chapter 5 of the City Code every application for a license under this Section shall be made on a form supplied by the City, shall be verified and shall contain the following information: 1. If applicant is a natural person: a. The name, place and date of birth, street, residence, address and telephone number of the applicant. b. Whether the applicant is a citizen of the United States or a resident alien. c. The name of the business under which the proposed licensee will operate. d. Whether the applicant is married or single. If married, the true name, place and date of birth and street address of applicant's spouse. e. Street addresses at which applicant has lived during the preceding ten (10) years. f. Whether the applicant has ever been in military service. If so, the applicant shall, upon request, exhibit all discharges. 5-38 g. Kind, name and location of every business, occupation or employment applicant (and spouse, if any), has been engaged in during the preceding ten (10) years. h. Names and addresses of applicant's (and spouse’s, if any) employers and partners, if any, for the preceding ten (10) years. i. Whether applicant (or spouse, if any) has ever been convicted of a violation of any state law or local ordinance, other than a non-alcohol related traffic offense. If so, the applicant shall furnish information as to the time, place and offense for which convictions were had. j. Whether the applicant (or spouse, if any) has ever been engaged in operating a pawnshop or precious metal dealership or other business of a similar nature as an owner or employee. If so, applicant shall furnish information as to the time, place and length of time. k. Whether the applicant is the owner and operator of the business and if not, who is. l. Whether the applicant has ever used or been known by a name other than applicant's true name, and if so, the name, or names, dates and places where used. m. The amount of the investment that the applicant has in the business, land, building, premises, fixtures, furniture, or stock in trade, and proof of the source of the money. n. A list of responsible persons, including the names of owners, managers and assistant managers, who may be notified or contacted by State or City employees in case of emergency. o. Whether the applicant holds a current pawnbroker or precious metal dealer license from any other governmental unit and whether the applicant is licensed under Minnesota Statutes, Section 471.924 or 325F.731 to 325F.744. p. Whether the applicant has ever been denied a pawnbroker or precious metal dealer license from any other governmental unit. q. The location of the business premises. r. The legal description of the premises to be licensed, including a map of the area for which the license is sought, showing dimensions, location of buildings, street access and parking facilities. s. 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. 2. If applicant is a partnership: a. The name and address of each partner. b. The name and address of the managing partner, or partners, shall be designated. c. The interest of each partner in the partnership. d. If the partnership is required to file a certificate as to trade name under the provisions of 5-39 Minnesota Statute, Chapter 333, a copy of the certificate certified by the Clerk of District Court shall be attached to the application. e. The information required of an applicant who is a natural person specified in subparagraphs 1. c., g., and i. through s. 3. If applicant is a corporation or other organization: a. Name, and if incorporated, the state of incorporation. b. A true copy of the certificate of incorporation, articles of incorporation or association agreements. c. The name of the manager or proprietor or other agent in charge of, or to be in charge of the premises to be licensed, and all information about said person as is required of an applicant who is a natural person specified in subparagraphs a. through s. d. The names and addresses of all persons who own five percent (5%) or more of, or who control the corporation or other organization (or who are officers of such corporation or other organization. e. The information required of an applicant who is a natural person specified in subparagraphs 1. c., g., and i. through s. 4. In addition to the information required of an applicant, an application shall contain the following information relating to the parents of an applicant: a. If the parent is a natural person, the information required of an applicant who is a natural person pursuant to Subd. 7, subparagraph 1. b. If the parent is a partnership, the information required of an applicant which is a partnership pursuant to Subd. 7, subparagraph 2. c. If the parent is a corporation or other organization the information required of an applicant which is a corporation or other organization pursuant to Subd. 7, subparagraph 3. 5. Other information which the City deems appropriate. B. No person shall make a false statement or material omission in a license application or investigation. Any false statement or material omission shall be grounds for denial, suspension, or revocation of a license. C. Each licensee shall have the continuing duty to properly notify the Chief of Police of the City of any change in the information or facts required to be furnished on the application for a license. This duty shall continue throughout the period of the license. Failure to comply with this Section shall constitute cause for revocation or suspension of the license. Subd. 8. Fees. A. Every applicant for a license shall pay to the City an investigation fee. The fee shall be for the purpose of conducting a preliminary background and financial investigation of the applicant. If the Council believes that the public interest so warrants, it may require a similar investigation at the time of renewal of any license. If an investigation is ordered by the City Council at the time of license renewal, the applicant shall pay an investigation fee, except that the fee shall be the smaller of the stated dollar amount or the actual cost of the 5-40 investigation. Except for an adjustment of the fee in the case of an investigation relating to a license renewal, there shall be no refund of the investigation fee for any person after an investigation has begun. B. Each license shall expire on December 31st of the year in which it is issued. Fees for licenses issued during the license year shall be prorated according to the number of months remaining in the year. For this purpose an unexpired fraction of a month shall be counted as a whole month which shall have elapsed. C. No refund of any fee shall be made except as authorized by ordinance. Subd. 9. Bond Required. A. At the time of filing an application for a license, the applicant shall file a bond in the amount of $5,000 with the City Clerk. The bond, with a duly licensed surety company as surety thereon, must be approved as to form by the city attorney. The bond must be conditioned that the licensee shall observe the ordinances of the City, in relation to the business of pawnbroker and precious metal dealer, and that the licensee will account for and deliver to any person legally entitled thereto any property which may have come into the possession of the licensee as pawnbroker or precious metal dealer or in lieu thereof such licensee shall pay the person or persons the reasonable value thereof. Subd. 10. Granting of Licenses. A. No license shall be issued until the Police Department has conducted an investigation of the information set forth in the application, the applicant's moral character, and the applicant's financial status. All applicants must cooperate with this investigation. B. No license shall be issued until the Council has held a public hearing in accordance with the following: 1. Notice of the hearing shall be made in the same manner as that specified in City Code Section 11.78, Subd. 4 for an amendment affecting district boundaries. 2. No hearing shall be required for a renewal of license, but the Council may, at its option, hold a hearing. C. After investigation and hearing, the Council shall, at its discretion, grant or deny the application. A license may not be granted, 1. to a person who, a. is ineligible to receive a license, b. has made a false statement or material omission in a license application or in response to an investigation, c. fails to respond to an investigation, or d. has violated any provision of City Code Section 5.71, o r 2. for any ineligible place. Final approval of a license shall not be granted until the Council has given at least preliminary approval to any necessary land use request. If an application is granted for a location where a building is under construction or not ready for occupancy, the license shall not be delivered to the licensee until a certificate of occupancy has been issued for the licensed premises. 5-41 Each license shall remain in full force and effect until surrendered, suspended, revoked, or expired. D. Each license shall be issued only to the applicant and for the premises described in the application. No license may be transferred to another person or place without application to the Council in the same manner as an application for a new license. The transfer of 25% or more of the ownership interests, or a controlling interest, whichever is less, of a licensee or a parent shall be deemed a transfer of the license. Transfer of a license without prior Council approval is a ground for revocation or suspension of the license. In addition, each day the licensee operates under the license after a transfer has taken place without obtaining Council approval shall be a separate violation of this ordinance. E. In the case of the death of a licensee who is a natural person, the personal representative of the licensee may continue operation of the business for not more than ninety (90) days after the licensee's death. Subd. 11. Conditions of License. A. Generally. Every license is subject to the conditions in the following paragraphs, all other provisions of this Section 5.71, and of any other applicable provisions of the City Code or State law. B. Maintenance of Peace. Every licensee is responsible for the conduct of its place of business and the conditions of order in it. The act of any employee of the licensee shall be deemed the act of the licensee as well, and the licensee shall be liable for all penalties provided by this ordinance equally with the employee, except criminal penalties. C. Display of License. Every license must be posted in a conspicuous place in the premises for which it is used. D. Record Keeping. At the time of a receipt of property, a licensee shall immediately record, in English, in an indelible ink, in a book or journal, which has page numbers that are pre-printed the following information: 1. An accurate description of the property including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark. 2. The date and time the item of property was received by the licensee. 3. The name, address, residence telephone number, date of birth, and reasonably accurate physical description, including height, sex and race, of the person from whom the proper ty was received. 4. The amount of money loaned upon or paid for the property. 5. The identification number from one of the following forms of identification of the person from whom the property was received: a. a valid Minnesota photo driver's license; b. a Minnesota photo Identification Card; c. a photo identification card issued by the state (or province of Canada) of residency of the person from whom the property was received, and one other valid form of identification. 6. The amount paid or advanced. 7. The maturity date of a pawn transaction and the amount due. 5-42 8. The monthly and annual interest rates, including all pawn fees and charges. E. Photographic Record. A pawnbroker or precious metal dealer must obtain a photograph of each person sel ling or pawning any property. The pawnbroker or precious metal dealer shall notify the person being photographed prior to taking his or her picture. The photograph shall be at least two inches in length by two inches in width and shall be immediately developed and referenced with the information regarding the person and the property sold or pawned. The major portion of the photograph shall include a front facial pose. The photograph shall be retained by the pawnbroker or precious metal dealer for thirty (30) days. F. Inspection of Records. The licensee shall make available the information required in paragraphs D. and E. above at all reasonable times for inspection by the City’s Police Department. The information required in subsection D. shall be retained by the pawnbroker or precious metal dealer for at least three (3) years. G. Receipts. The licensee shall provide a receipt to the seller or pledger of any item of property received, which shall be numbered to correspond to the entry in the licensee's records and shall include: 1. The name, address, and phone number of the licensee. 2. The date on which the item was received by the licensee. 3. A description of the item received and amount paid to the pledger or seller in exchange for the item pawned or sold, and whether it was pawned or sold. 4. The signature of the licensee or agent. 5. If the property can be redeemed, a. 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 property on that date. b. The annual rate of interest charged on pawned items received. 6. The name and address of the seller or pledgor. H. Reports to Police. For the types of items listed below, the licensee must submit to the City’s Police Department on a daily basis a list of the specific items purchased or received that day. The list must be on forms approved by the City and must contain all of the information described in paragraph D. 1. Any item with a serial number, identification number, or "Operation Identification" number; 2. Cameras; 3. Electronic, audio, video or radar detection equipment; 4. Precious jewelry, gems and metals; 5. Artist-signed or artist-attributed works of art; 6. Firearms, for which a dealer's license to deal in, is required by the laws of the State of Minnesota or the United States of America. 5-43 7. Any item not included in (1) - (6) above which the pawnbroker or precious metal dealer intends to sell for more than $200, except for furniture and kitchen or laundry appliances. I. Stolen or Lost Property. A pawnbroker or precious metal dealer must report to City police any item pledged or received, or sought to be pledged or received, if the pawnbroker or precious metal dealer has rea son to believe that the article was stolen or lost. J. Police Restrictions on Sale or Redemption. Whenever the City’s Police Department notifies the licensee 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’s Police Department. K. Holding Period. Any item received by the pawnbroker or precious metal dealer for which a report to the City police is required shall not be sold or otherwise transferred, or in the case of preciou s metal, melted down or dismantled, for thirty (30) days after the date of such report to the police. However, a person may redeem a pawned item seventy-two (72) hours after the item was received by the pawnbroker or precious metal dealer, excluding Sundays and legal holidays. L. Inspection of Items. 1. Inspection by City. The pawnbroker or precious metal dealer shall, at all times during the term of the license, allow the City’s Police Department to enter the premises where the pawnbroker or precious metals dealer business is located and any other premises where items purchased or received as part of the business are stored, for the purpose of inspecting such premises and the property therein to locate items suspected or alleged to have been stolen or otherwise improperly disposed of. 2. Inspection by Claimants. Additionally, all the items coming into possession of the licensee shall at all times be open to inspection and right of examination of any person claiming to have been the owner thereof or claiming to have any interest therein, when such person is accompanied by a City police officer. M. Payment by Check. Payment by the licensee for any articles deposited, left, purchased, pledged or pawned, shall be made only by check, draft, or other negotiable or nonnegotiable instrument or order of withdrawal which is drawn against funds held by a financial institution. N. Gambling. No licensee may keep, possess, 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 or any kind, which are redeemable in merchandise or cash. No gambling equipment authorized under Minnesota Statutes, Sections 349.11 -349.61, 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, Sections 349A.01 - 349A.15. O. Oversized Items. All items must be stored within the licensed premises building, except the City may permit the licensee to designate one (1) locked and secured warehouse building within the City within which the licensee may store oversized items. No item may be stored in the designated warehouse building that is not reported in the journal pursuant to subparagraph D above. The licensee shall permit immediate inspection of the warehouse at any time during business hours by the City’s Police Department. Oversized items may not be stored in parking lots or other outside areas. All provisions in this subparagraph regarding recordkeeping and reporting shall apply to oversized items. P. Off-Site Sales/Storage. All items accepted by a licensee at a licensed location in the City shall be for pledge or sale through a licensed location in the City. No licensee under this Section shall sell any items which are transferred from a non-licensed facility or a licensed facility outside the City. 5-44 Q. Restrictions on Weapons. 1. A pawnbroker or precious metal dealer may not receive as a pledge, accept for consignment or sale, or otherwise deal in any firearm for which a dealer's license to deal in, is required by the l aws of the State of Minnesota or the United States of America unless the pawnbroker or precious metal dealer holds such a firearms dealer's license. 2. A pawnbroker or precious metal dealer may not receive as a pledge or otherwise, or accept for consignment or sale, a firearm which a person is prohibited from possessing or transferring pursuant to the laws of the State of Minnesota or the United States of America. Subd. 12. Printed Pawn Tickets. A. The following shall be printed on all pawn tickets: 1. "Any personal property pledged to a pawnbroker within this state is subject to sale or disposal when there has been no payment made on the account for a period of not less than sixty (60) days past the date of the pawn transaction, renewal, or extension; no further notice is necessary. There is no obligation for the pledgor to redeem pledged goods, 2. The pledgor of this item attests that it is not stolen, it has no liens or encumbrances against it, and the pledgor has the right to sell or pawn the item, 3. This item is redeemable only by the pledgor to whom the receipt was issued, or any person identified in a written and notarized authorization to redeem the property identified in the receipt, or a person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor. Written authorization for release of property to persons other than the original pledgor must be maintained along with the original transaction record," and 4. A blank line for the pledgor's signature. B. The pledgor or seller in a pawn transaction shall sign a pawn ticket and receive an exact copy of the pawn ticket. Subd. 13. Suspensions and Revocations of License. A. Delinquent Taxes. The Council may suspend or revoke a license issued under this Section for operation on any premises on which real estate taxes, assessments or other financial claims of the City or of the State are due, delinquent, or unpaid. If an action has been commenced pursuant to the provisions of Minnesota Statutes Chapter 278, questioning the amount or validity of taxes, the Council may on application by the licensee 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 unless such one (1) year period is extended through no fault of the licensee. B. Violations. 1. The Council may suspend for up to sixty (60) days or revoke any license upon a finding that the licensee or an agent or employee of the licensee has failed to comply with any State or Federal law or provisions of the City Code or ordinances. No suspension or revocation shall take effect until the licensee has been afforded an opportunity for a hearing pursuant to Minnesota Statutes, Sections 14.57 to 14.69, with the exception of the suspension provided for in paragraph 2. below. 2. Any conviction by the licensee for theft, burglary, robbery, receiving stolen property or any other crime or violation involving stolen property shall result in the immediate suspension pending a hearing 5-45 on revocation of any license issued hereunder. C. No expiration, revocation, suspension, or surrender of any license shall impair or affect the obligation of any preexisting lawful contract between the licensee and any pledgor. D. The Police Chief of the City shall be notified by the City of any licensee whose license has expired or been surrendered, suspended, or revoked as provided by this section. Subd. 14. Effect of Nonredemption. A. A pledgor shall have no obligation to redeem pledged goods or make any payment on a pawn transaction. Pledged goods not redeemed within at least sixty (60) days of the date of the pawn transaction, renewal, or extension shall automatically be forfeited to the pawnbroker, and qualified right, title, and interest in and to the goods shall automatically vest in the pawnbroker. B. The pawnbroker's right, title, and interest in the pledged goods under paragraph A. is qualified only by the pledgor's right, while the pledged goods remain in possession of the pawnbroker and not sold to a third party, to redeem the goods by paying the loan plus fees and/or interest accrued up to the date of redemption. C. A pawn transaction that involves holding only the title to the property is subject to Minnesota Statutes, 1995, Chapter 168A or 336. Subd. 15. Permitted Charges. A. Notwithstanding any other statute, ordinance, rule, regulation, or section 325J.13, a pawnbroker may contract for and receive a pawnshop charge not to exceed three percent per month of the principal amount advanced in the pawn transaction plus a reasonable fee for storage and services. A fee for storage and services may not exceed $20 if the property is not in the possession of the pawnbroker. B. The pawnshop charge allowed under paragraph A. shall be deemed earned, due, and owing as of the date of the pawn transaction and a like sum shall be deemed earned, due, and owing on the same day of the succeeding month. However, if full payment is made more than two weeks before the next succeeding date the pawnbroker shall remit one-half of the pawnshop charge for that month to the pledgor. C. Interest shall not be deducted in advance, nor shall any loan be divided or split so as to yield greater interest or fees than would be permitted upon a single, consolidated loan or for otherwise evading any provisions of this section. D. Any interest, charge, or fees contracted for or received, directly or indirectly, in excess of the amount permitted under this Subdivision, shall be uncollectible and the pawn transaction shall be void. E. A schedule of charges permitted by this Subdivision shall be posted on the pawnshop premises in a place clearly visible to the general public. Subd. 16. Records; Prohibitions. A pawnbroker and any clerk, agent, or employee of a pawnbroker shall not: A. Make any false entry in the records of pawn transactions. B. Falsify, obliterate, destroy, or remove from the place of business the records, books, or accounts relating to the licensee's pawn transactions. C. Refuse to allow the appropriate law enforcement agency, the attorney general, or any other duly authorized state or federal law enforcement officer to inspect the pawn records or any pawn goods in the person's possession 5-46 during the ordinary hours of business or other times acceptable to both parties. D. Fail to maintain a record of each pawn transaction for three (3) years. E. Accept a pledge or purchase property from a person under the age of eighteen (18) years. F. Make any agreement requiring the personal liability of a pledgor or seller, or waiving any provision of this Subdivision, or providing for a maturity date less than one month after the date of the pawn transaction. G. Fail to return pledged goods to a pledgor or seller, or provide compensation as set forth in Minnesota Statutes, 1995, section 325J.09, upon payment of the full amount due the pawnbroker unless either the date of redemption is more than 60 days past the date of the pawn transaction, renewal, or extension and the pawnbroker has sold the pledged goods pursuant to section 325J.06, or the pledged goods have been taken into custody by a court or a law enforcement officer or agency. H. Sell or lease, or agree to sell or lease, pledged or purchased goods back to the pledgor or seller in the same, or a related, transaction. I. Sell or otherwise charge for insurance in connection with a pawn transaction. J. Remove pledged goods from the pawnshop premises or other storage place approved by City at any time before unredeemed, pledged goods are sold pursuant to Minnesota Statutes, 1995, section 325J.06. Subd. 17. Redemption; Risk of Loss. Any person to whom the receipt for pledged goods was issued, or any person identified in a written and notarized authorization to redeem the pledged goods identified in the receipt, or any person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor shall be entitled to redeem or repurchase the pledged goods described on the t icket. In the event the goods are lost or damaged while in possession of the pawnbroker, the pawnbroker shall compensate the pledgor, in cash or replacement goods acceptable to the pledgor, for the fair market value of the lost or damaged goods. Proof of compensation shall be a defense to any prosecution or civil action. Subd. 18. Motor Vehicle Title Pawn Transactions; Special Provisions. A. In addition to the other requirements of this section, a pawnbroker who holds a title to a motor vehicle as part of a pawn transaction shall: 1. be licensed as a used motor vehicle dealer under Minnesota Statutes, 1995, section 168.27, and post such license on the pawnshop premises; 2. verify that there are no liens or encumbrances against the motor vehicle with the Minnesota Department of Public Safety; and 3. verify that the pledgor has automobile insurance on the motor vehicle as required by law. B. A pawnbroker may not sell a motor vehicle covered by a pawn transaction until ninety (90) days after recovery of the motor vehicle. Subd. 19. Penalty. Except as otherwise provided in State law, any person violating any provision of this ordinance shall be subject to the penalties established in Section 5.99 of the City Code. Any fine or sentence imposed shall not affect the right of the City to suspend or revoke a license as the Council deems appropriate. Source: Ordinance No. 56-97 Effective Date: 12-12-97 Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 1 SECTION 610. PAWNBROKERS, PRECIOUS METAL DEALERS, AND SECONDHAND DEALERS. 610.005. Purpose. The city council finds that pawnbrokers, precious metal dealers, and certain secondhand dealers potentially provide an opportunity for the commission and concealment of crimes. These 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 these businesses. The purpose of this section is to prevent these businesses assisting in the commission of crimes, to identify criminal activities through timely collection and sharing of certain transaction information, and to ensure that such businesses comply with basic consumer protection standards, thereby protecting the public health, safety and general welfare of the citizens of the city. (Amended by Ord. 2011-12, adopted June 20, 2011; amended by Ord. #2005-12, adopted May 9, 2005) 610.010. Definitions. 1. “Billable transaction” means a reportable transaction except renewals, redemptions or extensions of existing pawns on items previously reported and continuously in the licensee's possession, voided transactions, and confiscations. 2. "Gemstone" means a precious or semiprecious stone that may be used as a jewel when cut and polished. 3. “Item containing precious metal” means an item made in whole or in part of metal and containing more than one percent by weight of silver, gold or platinum. 4. “Minor” means a natural person under the age of 18 years. 5. “Pawnbroker” means 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 it back again at a stipulated price; or who loans money secured by chattel mortgage on personal property, taking possession of the property or a part of it. If a pawnbroker business includes buying personal property previously used, rented, or leased, the provisions of this section are applicable. Any bank, savings and loan association, or credit union is not a pawnbroker for purposes of this section. Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 2 6. “Person” means 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 another business organization. 7. “Precious metal dealer” means a person engaging in the business of buying coins or secondhand items containing precious metal including jewelry, watches, eating utensils, candlesticks, and religious and decorative objects. 8. “Precious metals” means silver, gold, or platinum. 9. “Reportable transaction” means a transaction conducted by a pawnbroker, precious metal dealer, or secondhand dealer in which merchandise is received through a pawn, purchase, consignment or trade except: 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, if the pawnbroker, precious metal dealer, or secondhand dealer maintains a record describing the items in each transaction and marks each item in a manner that 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 redemption periods have expired. 10. "Secondhand dealer" means a person in the business of buying, or receiving as "trade-in," secondhand items that are in one or both of the following categories: (a) consumer electronics, including peripherals and electronic media, and (b) jewelry and gemstones. A secondhand dealer does not include a person who buys or receives fewer than 25 such items within any period of 12 consecutive months. 11. “Secondhand item” means tangible personal property, excluding motor vehicles, that has been previously used, rented, owned or leased. (Amended by Ord. 2012-07, adopted June 25, 2012; Ord. 2011-12, adopted June 20, 2011; amended by Ord. #2005-12, adopted May 9, 2005) 610.015. License Required. A person must not engage in the business of pawnbroker, precious metal dealer, or secondhand dealer within the city unless the person is currently licensed under this section. (Amended by Ord. 2011-12, adopted June 20, 2011; amended by Ord. #2005-12, adopted May 9, 2005) Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 3 610.020. Exceptions to License Requirement. A person conducting the following transactions is not required to obtain a license under this section: 1. transactions at occasional “garage” or “yard” sales, or estate sales or farm auctions held at the owner's residence, except that precious metal dealers must comply with the requirements of Minn. Stat. §§ 325f.734 to 325f.742, for these transactions; 2. transactions regulated by Minn. Stat. § 80a; 3. transactions regulated by the federal commodity futures commission act; 4. transactions involving the purchase of precious metal grindings, filings, slag, sweeps, scraps, or dust from an industrial manufacturer, dental lab, dentist, or their agent; 5. transactions involving the purchase of photographic film, such a lithographic and x-ray film or silver residue or flake recovered in lithographic and x-ray film processing; 6. 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 that is not exempted by this section must comply with the requirements of Minn. Stat. §§ 325f.734 to 325f.742; 7. transactions between precious metal dealers if both dealers are licensed under Minn. Stat. § 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 Minn. Stat. § 325f.733; and 8. transactions in which the buyer of the secondhand item containing precious metal is engaged primarily in the business of buying and selling antiques, the items are resold in an unaltered condition except for repair, the items are resold at retail, and the buyer paid less than $2,500 for secondhand items containing precious metals purchased within any period of 12 consecutive months. (Amended by Ord. 2011-12, adopted June 20, 2011; amended by Ord. #2005-12, adopted May 9, 2005) 610.025. Persons Ineligible. 1. No license may be issued to a person who: a. is not a citizen of the United States or a resident alien; Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 4 b. is a minor at the time the application is filed; c. has been convicted of any crime directly related to the licensed occupation and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of pawnbroker or precious metal dealer under Minn. Stat. § 364.03, subd. 3, or a person not of good moral character and repute; d. holds a liquor license under section 600; e. in the judgment of the city council is not the real party in interest or beneficial owner of the business operated under the license; f. has had a pawnbroker, precious metal dealer's, or secondhand dealer's license revoked anywhere within five years of the license application; or g. in the case of an individual, is not a resident of the twin cities; in the case of a partnership, the managing partner is not a resident of the twin cities; or in the case of a corporation, the manager is not a resident of the twin cities. The required residency must be established by the time the license is issued and maintained throughout the existence of the license and all renewals. The time for establishing residency within the twin cities may, for good cause, be extended by the council. For the purposes of this paragraph, the twin cities means the seven-county metropolitan area defined by Minn. Stat. § 473.121, subd. 2. (Amended by Ord. #2011-12, adopted June 20, 2011; amended by Ord. #2005-12, adopted May 9, 2005) 610.030. Places Ineligible. 1. No license may be issued for a place or a business ineligible for a license under city ordinance or state law. 2. No license may be issued for operation in a residential zoning district. 3. No license may be issued for a place or business that holds a liquor license. 4. No license may be granted for operation on a premises for which taxes, assessments or other financial claims of the city or other government agency are delinquent and unpaid. (Amended by Ord. #2005-12, adopted May 9, 2005) 610.035. License Application. In addition to information that is required by the county under Minn. Stat. § 471.924, every application for a license under this ordinance must be made on a form supplied by the city, must Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 5 be verified and must contain the following information: 1. If the applicant is a natural person: a. the name, place and date of birth, street residence address, and phone number of the applicant; b. 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 of assumed name required by state law; c. whether the applicant is the owner and operator of the business and if not, who is; d. whether the applicant has ever used or been known by a name other than his/her true name, and if so, what was the name, or names, and information concerning dates and places where used; e. whether the applicant is married or single. If married, the true name, place and date of birth and street address of applicant's spouse; f. street address at which applicant and spouse have lived during the preceding ten years; g. kind, name and location of every business or occupation applicant and spouse have been engaged in during the preceding ten years; h. names and addresses of applicant's and spouse's employers and partners, if any, for the preceding ten years; i. whether the applicant or spouse has ever been convicted of a violation of any state law or local ordinance, other than a non-alcohol related traffic offense. If so, the applicant must furnish information as to the time, place and offense for which convictions were had; j. whether the applicant or spouse has ever been engaged as an employee or in operating a pawnshop, precious metal dealership, or secondhand dealership or other business of a similar nature. If so, applicant must furnish information as to the time, place and length of time; k. whether the applicant has ever been in military service. If so, the applicant must, upon request, exhibit all discharges; 2. If the applicant is a partnership: a. the name and address of all partners and all information concerning each partner as is required of an individual applicant as above; b. the name(s) of the managing partner or partners, and the interest of each partner, Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 6 or partners in the business; c. a true copy of the partnership agreement and a copy of the certificate of assumed name required by state law; 3. If the applicant is a corporation or other organization: a. the name, and if incorporated, the state of incorporation; b. a true copy of the certificate of incorporation, articles of incorporation or association agreements; c. the name of the manager or proprietor or other agent in charge of, or to be in charge of the premises to be licensed, giving all information about the person as is required in the case of an individual applicant; and d. a list of all persons who, single or together with their spouse, own or control an interest in the corporation or association in excess of five percent or who are officers of the corporation or association, together with their addresses and all information as is required for a single applicant; 4. For all applicants: a. information regarding the financial status of the applicant, including the amount of the investment that the applicant has in the business, land, building, premises, fixtures, furniture, or stock in trade, and proof of the source of the money. The city may require the applicant to submit a certification that the applicant is the real party in interest, is financially solvent, and has sufficient capital to responsibly operate the licensed establishment. The certification must be on the city's approved form and issued by an independent, licensed or certified professional such as a lawyer or accountant; b. a list of responsible persons, including the names of owners, managers and assistant managers, who may be notified or contacted by state or city employees in case of emergency. These persons must be residents of the twin cities metropolitan area as defined by Minn. Stat. § 473.121, subd. 2; c. for each manager and assistant manager with responsibility for operation of the business, the following information must be provided: (1) complete personal information requested on the city's form; (2) two sets of fingerprints and a photograph; and (3) such other information as the city may require. d. whether the applicant holds a current pawnbroker, or precious metal dealer, or secondhand dealer license from any other governmental unit and whether the applicant is Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 7 licensed under Minn. Stat. § 471.924 or Minn. Stat. §§ 325F.731 to 325F.744; e. whether the applicant has ever been denied a pawnbroker, precious metal dealer, or secondhand dealer license from any other governmental unit; f. the location of the business premises; g. the legal description of the premises to be licensed including a map of the area for which the license is sought, showing dimensions, locations of buildings, street access and parking facilities; h. 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; and i. other information that the city deems appropriate. (Amended by Ord. 2011-12, adopted June 20, 2011; amended by Ord. #2005-12, adopted May 9, 2005) 610.040. Fees. 1. Investigation Fee. Every applicant for a new license must pay to the city the investigation fee specified in section 710.005 of this code. This fee will be for the purpose of conducting a preliminary background and financial investigation of the applicant. If the council believes that the public interest so warrants, it may require a similar investigation at the time of renewal of a license. If an investigation is ordered by the city council at the time of license renewal, the applicant must pay the fee specified above, except that the fee will be the smaller of the stated dollar amount or the actual cost of the investigation. There will be no refund of the investigation fee after the investigation has begun. 2. License Fee. The annual fees for a pawnshop or precious metal dealer's, or secondhand dealer's license are set forth in section 710.005 of this code. The annual fee must be paid before conducting activity that requires a license under this section. No refund of a fee will be made except as authorized by ordinance. 3. Transaction Fee. In addition to the annual license fee, licensee must pay a transaction fee based on the actual number of billable transactions conducted by the licensee. The transaction fee will be billed monthly to the licensee and must be paid within 25 days after the billed date. The transaction fee will reflect the cost of processing transactions and other regulatory expenses related to processing transaction information, including the cost of participating in an automated records system. The amount of the transaction fee is specified in section 710.005 of this code and is dependent on the accuracy of the report and type of medium by which the daily reports are submitted to the city. Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 8 4. Late Transaction Fees. A licensee failing to make a transaction fee payment within 25 days after the billed date is required to pay a penalty of 5% of the unpaid amount. The amount of the transaction fee not timely paid, together with the penalty, will bear interest at the rate of twelve percent per annum (12%), from the time the transaction fee should have been paid until it is paid. Any interest and penalty will be added to the transaction fee and be collected as part of it. If payment of the amount due plus the 5% penalty is not paid within 30 days after the due date, an additional 10% penalty will be imposed upon the amount due and the 5% penalty. If the delinquency continues beyond 60 days, a license revocation notice may be sent and a revocation hearing may be commenced. The city manager may waive penalties when their enforcement would be unjust or inequitable. 5. Erroneously Reported Transaction Penalty. Each transaction reported electronically that contains an omission or inaccuracy will be classified as erroneous. Licensees who electronically submit five or more erroneous transactions within a billable month will be charged for each erroneous transaction during that billable month at double the normal rate. (Amended by Ord. 2011-12, adopted June 20, 2011; amended by Ord. #2006-18, adopted Sept. 25, 2006; amended by Ord. #2005-12, adopted May 9, 2005) 610.045. Bond Required. At the time of filing an application for a license, the applicant must file a bond in the amount of $5,000 with the city clerk. The bond, issued by a licensed surety company, must be approved as to form by the city attorney. The bond must be conditioned on the licensee’s compliance with the city ordinances, in relation to the business of pawnbroker, precious metal dealer, and secondhand dealer. The bond must also be conditioned on the licensee’s obligation to account for and deliver articles to a legally entitled person or to pay the person or persons the reasonable value of the articles. (Amended by Ord. 2011-12, adopted June 20, 2011; amended by Ord. #2005-12, adopted May 9, 2005) 610.050. Application Procedure. 1. No license may be issued until the police department has conducted an investigation of the representations set forth in the application, the applicant's moral character, and the applicant's financial status. All applicants must cooperate with this investigation. 2. No license may be issued until the council has held public hearings in accordance with the following: a. two public hearings must be held at least 27 days apart. Notice of the hearings will be made in the same manner as that specified in section 300.09, subd. 3, for a zoning Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 9 ordinance amendment affecting district boundaries; and b. at the public hearings all persons interested in the matter must be heard, and the hearings may be adjourned from time to time. No hearing is required for a renewal of a license, but the council may, at its option, hold a hearing. 3. The city council may issue a license before an investigation, notice and public hearing for an applicant who: a. had a license within the previous five years for the establishment that is specified in the application and that is continuing to operate under a license; b. wishes to resume operation of the business without sufficient time, through no fault of his or her own, to meet the normal procedural requirements; c. had no criminal license convictions, or license suspensions or revocations during the prior licensed period; and d. otherwise qualifies and meets the requirements for a license. In this situation, the city council may immediately issue an interim license to the applicant for a period no longer than 90 days. The applicant must thereafter proceed through the specified requirements for an investigation, notice, and public hearing. At the public hearing the council will decide whether the license should continue in effect or be revoked. The interim license gives the applicant no greater right to continuation of the license than it would have had to issuance of a new license following the normal procedure. 4. After investigation and hearing, the council will grant or deny the application, considering the factors in sections 610.025, 610.030, and 610.070 and the best interests of the public health, safety, and general welfare. Each application requires five affirmative votes by the city council for approval. The council may impose conditions on a license to protect the public health, safety, and general welfare. 5. A license is a privilege, not a right. Even if a person meets the minimum requirements for a license, the city council is not obligated to grant the license. The city council has broad discretion to decide if, where, and how licensed businesses may operate. The city council may limit the number of licenses, when in its judgment, the welfare of the city suggests such action. The city council may develop criteria for evaluating a license application. 6. An application for a license may be considered by the city council at the same time an applicant is requesting land use approvals needed for the site, including site plan review, rezoning, or an amendment to the comprehensive guide plan. Final approval of a license will not be granted until the city council has given at least preliminary approval to any necessary land use request. If an application is granted for a location where a building is under construction or not ready for occupancy, the license will not be delivered to the licensee until a certificate of Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 10 occupancy has been issued for the licensed premises. 7. In the case of the death of a licensee, the personal representative of a licensee may continue operation of the business for not more than 90 days after the licensee's death. (Amended by Ord. 2011-12, adopted June 20, 2011; amended by Ord. #2005-12, adopted May 9, 2005) 610.055. License Term, Renewal. Each license will expire on December 31st of the year in which it is issued. The application for the renewal of an existing license must be made at least 90 days before the date of the expiration of the license and must be made on the form which the city provides. (Amended by Ord. #2005-12, adopted May 9, 2005) 610.060. License Restrictions. 1. Generally. Every license is subject to the conditions in the following paragraphs, all other provisions of this section, and of other applicable regulations, ordinances or state law. 2. Maintenance of Peace. Every licensee is responsible for the conduct of his or her place of business and the conditions of order in it. The act of any employee of the licensed premises is deemed the act of the licensee as well, and the licensee will be liable for all penalties provided by this ordinance equally with the employee, except criminal penalties. 3. Display of License. Every license must be posted in a conspicuous place in the premises for which it is used. 4. Written Records. At the time of a receipt of an item of property, a licensee must immediately record the information listed below, in English, in a computer program approved by the police department. Licensees not required to report electronically under subdivision 8 below may as an alternative record the information in indelible ink, in a book or journal that has page numbers that are preprinted: a. an accurate description of the item of property including 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 licensee; c. the name, residence address, residence telephone number, and date of birth and a reasonably accurate physical description of the person from whom the item of property was received, including approximate height, weight, color of eyes, color of hair, sex, and race; Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 11 d. the identification number and state or agency of issue for one of the following forms of identification of the person from whom the item was received: (1) a current, valid Minnesota photo driver's license; (2) a current, valid Minnesota photo identification card; (3) a current, valid photo driver's license or identification card issued by another state or Canadian province, and one other form of identification; (4) valid passport; or (5) current, valid military photo identification. e. the amount of money loaned, advanced to the pledgor or paid to the seller, or the nature of the transaction if not a loan or sale; f. the maturity date of the pawn transaction and the amount due; g. the monthly and annual interest rates, including pawn fees and charges; h. the last regular day of business by which the item must be redeemed by the pledgor without risk that the item will be sold, and the amount necessary to redeem the pawned item on that date; i. the signature or unique identifier of the licensee or employee that conducted the transaction; and j. the description of the item or serial number for an item that is "traded-in" and the item received as a result of the exchange. 5. Photographic Record. The licensee must obtain a color photograph or color video of each person selling, trading-in, or pawning an item of property and of each item pawned, traded-in, or sold that does not have a unique serial or identification number permanently engraved or affixed. The licensee must notify the person being photographed or videotaped by displaying a sign of sufficient size in a conspicuous place in the premises. A photograph must be at least two inches in length by two inches in width and must be referenced with the information regarding the person and the item sold, traded-in, or pawned. The major portion of the photograph or video image must include a front facial pose and a clear and accurate depiction of the item, if required. Video recordings 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 photograph or video must be in digital format. 6. Inspection and Retention of Records. The licensee must make available the information required in subsections 4 and 5 above at all reasonable times for inspection by the police department. The information required in subsection 4 must be retained by the licensee for at least four years. The photographic records required in subsection 5 must be retained for at least Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 12 three months. Upon the request of a licensed police officer, the licensee must provide copies of all records required in subsections 4 and 5 above. 7. Receipts/Pawn Tickets. The licensee must provide a receipt to the seller or pledgor of an item of property received, which must be numbered to correspond to the entry in the licensee's records and must include the items listed below. The pledgor or seller must sign the receipt/pawn ticket and receive an exact copy of it: a. the name, address, and phone number of the licensee's business; b. the date and time on which the item was received by the licensee; c. a description of the item received and amount paid to the pledgor or seller in exchange for the item pawned or sold, and whether it was pawned or sold; d. the signature or unique identifier of the licensee or agent engaged in the transaction; e. the last regular business day by which the item must be redeemed by the pledgor without risk that the item will be sold and the amount necessary to redeem the pawned item(s) on that date; f. the monthly and annual rate of interest charged on pawned items received and all fees and charges; g. the name and address of the seller or pledgor; h. the statement that “Any personal property pledged to a pawnbroker within this state is subject to sale or disposal when there has been no payment made on the account for a period of not less than 60 days past the date of the pawn transaction, renewal, or extension; no further notice is necessary. There is no obligation for the pledgor to redeem pledged goods”; i. the statement that “The pledgor of this item attests that it is not stolen, it has no liens or encumbrances against it, and the pledgor has the right to sell or pawn the item”; j. the statement that “This item is redeemable only by the pledgor to whom the receipt was issued, or any person identified in a written and notarized authorization to redeem the property identified in the receipt, or a person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor. Written authorization for release of property to persons other than the original pledgor must be maintained along with the original transaction record”; and k. a blank signature line for the pledgor’s signature. 8. Daily Reports to Police. At the close of each business day, the licensee must submit the information for each reportable transaction that is required by subsections 4 and 5 above. The information must be transferred by electronic means from the licensee's computer to an Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 13 automated record system specified by the police department. Licensees may provide the required information in writing or on computer disc to the police department by twelve o'clock noon the first business day following the date of the transaction if there are technical problems with the electronic system, as long as the licensee corrects the problems within its system within one business day after the failure and re-submits all transactions by electronic means when the problems are corrected. If a licensee is unable to successfully transfer the required reports by electronic means as required by this section, the licensee must have on the premises and available for inspection by the police department printed copies of all reportable transactions that have not been reported by electronic means. 9. Stolen or Lost Property. A licensee must report to city police an item pledged or received, or sought to be pledged or received, if the licensee has reason to believe that the article was stolen or lost. 10. Police Order to Hold or Confiscate. 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. If the investigative hold is confirmed in writing by the originating agency within 72 hours, it will remain in effect for 15 days from the date of initial notification, or until the investigative order is canceled, or until an order to hold/confiscate is issued by the chief of police or the chief's designee. b. Order to Hold. Whenever the chief of police or the chief's designee notifies a licensee in writing or electronically not to sell an item, the item may not be sold or removed from the licensed premise until authorized by the chief of police or the chief's designee. An order to hold will expire 90 days from the date it is issued, unless the chief of police or the chief's designee determines the hold is still necessary and notifies the licensee in writing to continue the hold. c. Order to Confiscate. If an item is identified as stolen or evidence in a criminal case, the chief of police or chief's designee may: (1) physically confiscate and remove the item from the premises, pursuant to a written order from the chief of police or the chief's designee, or (2) place the item on hold indefinitely, in which case the item may not be sold, refurbished, or removed from the premises without the written order of the chief of police or the chief's designee. When an item is confiscated, the person doing so must provide identification upon request of the licensee, and must provide the licensee the name and phone number of the confiscating agency and investigator, and the case number related to the confiscation. d. Termination of Order. When an order to hold/confiscate is no longer necessary, Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 14 the chief of police or chief's designee must terminate the order and notify the licensee. 11. Redemption; Non-redemption; Risk of Loss. a. A person pledging, pawning, or depositing an item for security must have a minimum of 60 days from the date of that transaction to redeem the item before it may be forfeited, refurbished for resale, and sold, or in the case of precious metal, melted down or dismantled. During the 60 day redemption period or any extensions of the pawn transaction, items may not be removed from the premises or sold, except as provided in this section. A person may redeem a pawned item 72 hours after the item was received by the pawnbroker or precious metal dealer, excluding Sundays and legal holidays. Licensees must redeem an item only to the original pledgor, to a person identified in a written and notarized authorization to redeem the property signed by the pledgor, or to a person identified in writing by the pledgor at the time of the initial transaction. Written authorization for release of property to persons other than the original pledgor must be maintained along with the original transaction record in accordance with this section. The deadline for redeeming an item must be a day on which the pawnbroker is open for regular business. b. An item sold to a licensee may not be sold or otherwise removed from the premises for a minimum of 31 days after the date of the sale, unless otherwise permitted by this section. c. A pledgor has no obligation to redeem pledged goods or make a payment on a pawn transaction. Pledged goods not redeemed within at least 60 days of the date of the pawn transaction, renewal, or extension will automatically be forfeited to the pawnbroker, and qualified title to the goods will automatically vest in the pawnbroker. d. While the pledged goods remain in possession of the pawnbroker and not sold to a third party, the pawnbroker’s title to the pledged goods is qualified only by the pledgor’s right to redeem the goods by paying the loan plus fees and interest accrued to the date of redemption. If the goods are lost or damaged while in possession of the pawnbroker, the pawnbroker must compensate the pledgor, in cash or replacement goods acceptable to the pledgor, for the fair market value of the lost or damaged goods. Proof of compensation is a defense to a prosecution or civil action. 12. Inspection of Items. a. Inspection by City. The licensee must, at all reasonable times during the term of the license, allow the police department to enter the business premises and other premises where items purchased or received as part of the business are stored. The purpose of the visit will be to inspect the premises and the merchandise to locate items suspected of being stolen or otherwise improperly disposed of, and to verify compliance with this section. b. Inspection by Claimants. Additionally, the items coming into possession of the licensee must at all reasonable times be open to the inspection of a person claiming to have been Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 15 the owner of an item or to have an interest in it, if the person is accompanied by a police officer. 13. Label Required. Licensees must attach a label to every item at the time it is pawned, purchased, or received into inventory from a reportable transaction. Permanently recorded on this label must be the number or name that identifies the transaction in the licensee'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 can be sold, if applicable. Labels may not be re-used. 14. Gambling. A licensee must not keep, operate, or permit the keeping or operation on the licensed premises of dice, slot machines, roulette wheels, punchboards, blackjack tables, or pinball machines that return coins or slugs, chips, or tokens of any kind, that are redeemable in merchandise or cash. A licensee must not keep or operate gambling equipment authorized under Minn. Stat. §§ 349.11 through 349.61, and must not conduct raffles on the licensed premises and adjoining rooms. The purchase of lottery tickets may take place on the licensed premises as authorized by the director of the lottery pursuant to Minn. Stat. §§ 349A.01 through 349A.15. 15. Storage of Items. Items must be stored within the licensed premises building, except the city may permit the licensee to designate one locked and secured warehouse building within the city where the licensee may store items. No item may be stored in the designated warehouse building that is not reported under subdivision 4 above. The licensee must permit immediate inspection of the warehouse at any time during business hours by the city and failure to do so is a violation of this ordinance. Items may not be stored in parking lots or other outside areas. All provisions in this section regarding recordkeeping and reporting apply to items stored in the approved off-site facility.items. 16. Transfer of Items. Items accepted by a licensee at a licensed location in the city must be for pledge or sale through a licensed location in the city. No licensee under this section may sell an item that is transferred from a nonlicensed facility or a licensed facility outside the city. 17. Restrictions on Weapons. a. A licensee may not receive as a pledge, or accept for consignment or sale, any firearm as defined in section 1025.005 of this code, unless the licensee also maintains a federal firearms dealer's license. b. A licensee may not receive as a pledge, or accept for consignment or sale, any dangerous weapon as defined in section 1025.005 of this code. 18. Change in Required Information. Each licensee has the continuing duty to properly notify the director of community development of any change in the information or facts required to be furnished on the application for a license. This duty will continue throughout the period of the license. 19. Change in Managers. For each new manager or assistant manager employed after the Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 16 license is issued, a licensee must make the offer of employment contingent upon the city's approval. Each licensee must notify the director of community development within ten days after any new manager or assistant manager begins employment. This notification must include the information required in section 610.035(4)(c). Failure to provide complete and timely information will subject the licensee to the penalties provided in this code and to potential denial of a renewed license. The director may cause an investigation of the new managers and may disapprove the employment of these personnel by notice to the licensee in writing. The licensee may appeal this decision to the city council by placing a request in writing to the city clerk within ten days after the issuance of the notice. A failure to request an appeal waives the licensee's ability to contest the director's decision. After the appeal period has expired without an appeal, or the city council has upheld the director's decision upon an appeal, no manager who has been disapproved may operate in that capacity upon the licensed premises. 20. Licensed Premises, Change in Ownership. Each license is issued only to the applicant and for the specific location on the premises that is described in the application and that is approved by the city council. No business may be conducted outside of the licensed premises, except as otherwise provided in this ordinance. No license may be transferred to another person or place without application to the council in the same manner as an application for a new license. Transfer of 25 percent or more of the stock of a corporation or of a controlling interest thereof, whichever is less, is deemed a transfer of the license of a corporate licensee, except for a corporation whose stock is publicly traded on a stock exchange or which is wholly owned by a corporation whose stock is publicly traded on a stock exchange. A new license must be obtained before the transfer takes place. Each day a licensee operates after a transfer has taken place without complying with this ordinance is a separate violation subject to penalties. 21. Permitted Charges. A licensee may charge only interest rates and fees allowed by Minn. Stat. Sec. 325J.07 and must post a schedule of charges on the licensed premises in a place clearly visible to the general public. 22. Pawning of Motor Vehicle Titles. a. In addition to the other requirements of this section, a pawnbroker who holds a title to a motor vehicle as part of a pawn transaction must: (1) be licensed as a used motor vehicle dealer under Minn. Stat. § 168.27, and post such license on the pawnshop premises; (2) verify that there are no liens or encumbrances against the motor vehicle with the Minnesota department of public safety; and (3) verify that the pledgor has automobile insurance on the motor vehicle as required by law. b. A pawnbroker may not sell a motor vehicle covered by a pawn transaction until 90 days after recovery of the motor vehicle. Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 17 (Amended by Ord. 2012-07, adopted June 25, 2012; Ord. 2011-16, adopted August 22, 2011; amended by Ord. 2011-12, adopted June 20, 2011; amended by Ord. #2005-12, adopted May 9, 2005) 610.065. Prohibitions. 1. A licensee and a clerk, agent, or employee of a licensee must not: a. make a false entry in the records of transactions; b. falsify, obliterate, destroy, or remove from the place of business the records, books, or accounts relating to the licensee's transactions; c. refuse to allow the appropriate law enforcement agency, the attorney general, or other duly authorized state or federal law enforcement officer to inspect the records or goods in the person's possession during the ordinary hours of business or other times acceptable to both parties; d. fail to maintain a record of each transaction for four years; e. accept a pledge or purchase property from a person under the age of 18 years; f. make an agreement requiring the personal liability of a pledgor or seller, or waiving any provision of this section, or providing for a maturity date less than one month after the date of the pawn transaction; g. fail to return pledged goods to a pledgor or seller, or provide compensation as set forth in section 610.60, upon payment of the full amount due the pawnbroker unless either the date of redemption is more than 60 days past the date of the pawn transaction, renewal, or extension and the pawnbroker has sold the pledged goods pursuant to this section, or the pledged goods have been taken into custody by a court or a law enforcement officer or agency; h. sell or lease, or agree to sell or lease, pledged or purchased goods back to the pledgor or seller in the same, or a related, transaction; i. sell or otherwise charge for insurance in connection with a pawn transaction; j. remove pledged goods from the licensed premises or other approved storage place at any time before unredeemed, pledged goods are sold pursuant to section 610.060; k. receive any goods from a person of unsound mind or who is intoxicated; or l. violate or fail to comply with any provision in this section. 2. No person under the age of 18 years may pawn or sell or attempt to pawn or sell goods with any licensee under this section. Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 18 3. No person may pawn, pledge, sell, consign, leave, or deposit an article of property with a licensee under this section if the property is: a. not their own, whether or not the person has permission from the purported owner; or b. subject to a security interest. 4. No person seeking to pawn, pledge, sell, consign, leave, or deposit an article of property with a licensee under this section may give or present to the licensee a name, date of birth, residence address, telephone number, proof of identification, or any other information required under this section that is false, fictitious, or not his/her own. (Amended by Ord. 2011-12, adopted June 20, 2011; amended by Ord. #2005-12, adopted May 9, 2005) 610.070. Denial, Suspensions and Revocations of License. 1. Grounds. A license under this section may be denied, suspended, or revoked for one or more of the following reasons: a. violation of one or more provisions of this section; b. violation of, or non-compliance with, any health, building, building maintenance, or other provisions of the Minnetonka city ordinances or state law; c. non-compliance with the Minnetonka zoning code; d. impracticality or impossibility of conducting a background or financial investigation due to the unavailability of information; e. fraud, misrepresentation, or bribery in securing or renewing a license; f. fraud, misrepresentation or false statements made in the application and investigation for a license, or in the course of a licensee's business; g. violation within the preceding five years of any law relating to theft, damage or trespass to property, sale of a controlled substance, or operation of a pawnbroker, precious metal dealer's or secondhand dealer's business; or h. non-payment of real estate taxes, assessments or other financial claims of the city or of the state for the business or premises licensed or sought to be licensed under this section. If an action has been commenced under the provisions of Minn. Stat. chapter 278, questioning the amount of validity of taxes, the council may on application by the licensee waive strict compliance with this provision. No waiver may be granted for an amount of taxes that remain unpaid for more one year after becoming due, unless the extended period is through no fault of Minnetonka Code of Ordinances :"American Legal Publishing Corporation" 19 the licensee. 2. Sanctions. a. The council may either suspend for up to 60 days or revoke a license or impose a civil fine not to exceed $2,000.00 for each violation upon a finding that the licensee or an agent or employee of the licensee failed to comply with an applicable statute, regulation or ordinance relating to the subject matter of section 610. No suspension or revocation will take effect until the licensee has been afforded an opportunity for a hearing under city code section 700.035, except the suspension provided for in paragraph b, below. b. A licensee’s conviction for theft, burglary, robbery, receiving stolen property or another crime involving stolen property will result in the immediate suspension of the license by operation of this ordinance, pending a hearing on revocation of the license. (Amended by Ord. 2011-12, adopted June 20, 2011; amended by Ord. #2005-12, adopted May 9, 2005) 610.075. Penalty. Except as otherwise provided by state law, a person violating a provision of this section is subject to the penalties established in section 1310 of this code. A criminal fine or sentence imposed will not affect the right of the city to suspend or revoke a license as the council deems appropriate. (Amended by Ord. #2005-12, adopted May 9, 2005) 610.080. [Repealed]. (Repealed by Ord. #2005-12, adopted May 9, 2005) 610.085. [Repealed]. (Repealed by Ord. #2005-12, adopted May 9, 2005) C-2 GENERAL COMMERCIAL DISTRICT § 36-194 c. All buildings and structures shall be set back a minimum of 25 feet fr om any parcel that is zoned residential and used or subdivided for residential, or has an occupied institutional building, including but not limited to schools, religious institutions, and community centers. d. The use is in conformance with the comprehensive plan including any provisions of the redevelopment chapter and the plan by neighborhood policies for the neighborhood in which it is located and conditions of approval may be added as a means of satisfying this requirement. (14) Educational (academic). The conditions are as follows: a. When outdoor play areas are provided, a minimum of 40 square feet of outside play space per pupil must be provided and such space shall be enclosed with a fence. b. Outdoor areas designated from group activities shall be located a minimum of 25 feet from a lot in an R district. c. Pickup/dropoff areas shall not conflict with other on-site or abutting land uses and shall not create congestion on public streets. Only automobiles and passenger vans shall be allowed to use an alley for pickup and dropoff of students. d. The size of the school shall be limited to 20 students. e. In multitenant buildings, the school shall have at least one separate building entrance or shall have an interior entrance that is within 50 feet of a common building entrance. (Ord. No. 2248-03, 8-18-03) (15) Communication towers more than 110 feet in height but not to exceed 170 feet in height , subject to the provisions of Section 368 (Communication Towers and Antennas). (Ord. No. 2367-09, 1-23-09) (16) Pawnshops. The conditions are as follows: a. The lot must be at least 1,000 feet from the property line of a site containing another pawnshop, currency exchange, payday loan agency, firearms sales, liquor store or sexually-oriented business. In the case of a shopping center or multi-use building, the distance shall be measured from the portion of the center or building occupied by the pawnshop. b. The pawnshop use shall not operate in conjunction with a sexually-oriented business. c. The lot shall be located a minimum of 350 feet from any parcel that is zoned residential, or has an educational (academic) use, religious institution, park, library or community center. In the case of a shopping center or multi -use building, the distance shall be measured from the portion of the center or building occupied by the pawnshop. d. Access shall be to a roadway identified in the comprehensive plan as a collector or arterial. Access to and from local residential streets is prohibited. e. In -vehicle sales or service are prohibited. Supp. No.25 (12-13) 36:169 St. Louis Park Zoning Code § 36-194 C-2 GENERAL COMMERCIAL DISTRICT f. Fire arm transactions are prohibited. g. The use shall be contained within a completely enclosed building, and no o utside storage, display, or sale of merchandise is permitted. h. Exterior loudspeakers or public address systems are prohibited. i. Visibility into the store shall be maintained by utilizing clear, transparent glass on all windows and doors, and by keeping all windows free of obstructions for at least three feet into the store. Product may be displayed for sale in the window as long as the display, including signage, does not occupy more than 30 percent of the window area. j. Interior and exterior bars, grills, mesh or similar obstructions, whether permanently or temporarily affixed, shall not cover any exterior door or more than ten percent of any individual window or contiguous window area. k. Neon accents and back-lighted awnings shall be prohibited. l. Parking space requirements shall be determined pursuant to Section 36-361(c) (1). If a pawnshop is combined with another use such as a currency exchange or payday loan agency, each use shall be considered a separate use for purposes of determining minimum parking requirements. (Ord. No. 2349-08, 2-22-08) (17) Payday loan agency and currency exchange: a. The lot must be at least 1,000 feet from the property line of a site containing a pawnshop, currency exchange, payday loan agency, firearms sales, liquor store or sexually-oriented business. In the case of a shopping center or multi -use building, the distance shall be measured from the portion of the center or building occupied by the payday loan agency or currency exchange. b. The use shall not operate in conjunction with a sexually-oriented business. c. The lot shall be located a minimum of 350 feet from any parcel that is zoned residential, or has an educational (academic) use, religious institution, park, library or community center. In the case of a shopping center or multi-use building, the distance shall be measured from the portion of the center or building occupied by the use. d. Access shall be to a roadway identified in the comprehensive plan as a collector or arterial. Access to and from local residential streets is prohibited. e. In -vehicle sales or service are prohibited. f. The use shall be contained within a completely enclosed building. g. Exterior loudspeakers or public address systems are prohibited. h. Windows must be of clear, transparent glass and be free of obstructions for at least three feet into the store. Product may be displayed in the window as long as the display, including signage, does not occupy more than 30 percent of the window area. Supp. No.25 (12-13) 36:170 St. Louis Park Zoning Code C-2 GENERAL COMMERCIAL DISTRICT § 36-194 i.Neon accents and back-lighted awnings shall be prohibited. (18)Firearms sales: a.The lot must be at least 1,000 feet from the property line of a site containing a pawnshop, currency exchange, payday loan agency, liquor store or sexually- oriented business. In the case of a shopping center or multi-use building, the distance shall be measured from the portion of the center or building occupied by the payday loan agency or currency exchange. b. The use shall not operate in conjunction with a sexually-oriented business. c.The lot shall be located a minimum of 350 feet from any parcel that is zoned residential, or has an educational (academic) use, religious institution, park, library or community center. In the case of a shopping center or multi-use building, the distance shall be measured from the portion of the center or building occupied by the use. d. Access shall be to a roadway identified in the comprehensive plan as a collector or arterial. Access to and from local residential streets is prohibited. e.In -vehicle sales or service are prohibited. f.The use shall be contained within a completely enclosed building. g.Exterior loudspeakers or public address systems are prohibited. h. Windows must be of clear, transparent glass and be free of obstructions for at least three feet into the store. Product may be displayed in the window as long as the display, including signage, does not occupy more than 30 percent of the window area. i.Neon accents and back-lighted awnings shall be prohibited. (19)Liquor stores. The lot must be at least 1,000 feet from the property line of a site containing a pawnshop, currency exchange, payday loan agency, firearms sales or sexually- oriented business. In the case of a shopping center of multi-use building, the distance shall be measured from the portion of the center or building occupied by the liquor store. (Ord. No. 2358-08, 8-14-08; Ord. No. 2367-09, 1-23-09; Ord. No. 2449-13, 11-15-2013) (e) Accessory uses. The following uses shall be permitted accessory uses in any C-2 district: (1) Warehouse/storage provided that the storage does not occupy more than 40 percent of the gross floor area of the site. No warehouse/storage area shall exceed 20,000 square feet. (2) Parking lots. (3) Parking ramps if the following conditions are met: Supp. No. 30 (12-15) 36:171 St. Louis Park Zoning Code