CR2002-018 Ord 845-Pawnshops
February 5, 2002 Council Report 2002-] 8
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ORDINANCE AMENDING SECTION 1180, PAWNSHOPS,
OF THE HOPKINS CITY CODE
Proposed Action
Staff recommends that the Council approve the following motlon: Move to approve Ordinance 200~-865 for
second reading, approve the summary of Ordinance 2002-865 and order the summary published.
Approval of this motion will contlnue the process of amending section 1180 of the Hopkins City Code
removing outdated language.
Overview
Staff is recommending Section 1180, Pawnshops, be deleted and that a new ordinance, 2002-865, be adopted
10 replace it. The purpose of this change is to bring the Hopkins' City Code in conformance with state law.
Primary Issues to Consider
. Were any changes muue to the pawnshop ordinance prior to the second reading?
Several minor changes were made to the ordinance due to discussions with Pawn America.
. The redemption period for any person pledging, pawning or depositing an item for security has been
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reduced from 90 days to 60 days before it becomes forfeited and sold.
. The holding period that prevents any ltem purchased or accepted in trade from being sold or
transfened has been changed from 30 days to 21 days.
Alternatives
1. Approve Ordlnance 2002-845 for second reading.
2. Do not approve Ordinance 2002-845 for second reading and direct staff to make changes.
Staffrecol11mends Altemative #1.
Supportine Information
. Ordinance 2002-865
c:A~
sA. Genel1ie
sistant City Manager
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. CITY OF HOPKINS COUNTY OF HENNEPIN
SUMMARY OF
ORDINANCE NO. 2002-865
AN ORDINANCE DELETING SECTION 1180 OF THE
HOPKINS CITY CODE AND REPLACING IT WITH
A NEW SECTION 1180 - PAWNBROKERS
The following is a summary of the major provisions of the new ordinance:
. Establishes and implements the required use of the automated pawn system (APS) if the
pawnbroker provides records in a computerized format. This is required by MN Statutes
2000, Chapter 325J.05, dated 3/23/2000. APS electronically collects, processes and
maintains multi-jUlisdictional pawn transaction data. This will eliminate manual entry of
pawn tickets and allow a greater link to Metro agencies.
. Establishes new criteria for redemption period for any person pledging, pawning or
depositing an item for security to have a minimum of 60 days from the day of the transaction
to redeem the item before it becomes forfeited and sold.
. Establishes new criteria for holding period that allows an individual to redeem an item 72
. hours after the item was received and any item purchased or accepted in trade must not be
sold or transferred for 21 days from date of transaction.
. Establishes the requirement of a telephone number to be included with the identification of
any individual involved in a reportable transaction.
. Establishes a new fee structure, which includes license fees, billable transaction fees, renewal
fees, and investigation fees.
A printed copy of the entire ordinance is available from the City Clerk and at the Hopkins
library.
First Reading: January 15, 2002
Second Reading: February 5,2002
Date of Publication: February 13,2002
Date Ordinance Takes Effect: March 5, 2002
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. CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 2002~86S
AN ORDINANCE DELETING SECTION] 180 OF THE
HOPKINS CITY CODE AND REPLACING IT WITH
A NEW SECTION 1180. PAWNBROKERS
PURPOSE
The City Council finds that use of services provided by pawnbrokers provides an opportunity for
the commission of crimes and their concealment because pawn businesses have the ability to
receive and transfer property stolen by others easily and quickly. The City Council also finds tJlat
consumer protection regulation is warranted in transactions involving pawnbrokers. The purpose
of this section is, therefore, to prevent pawn businesses from being used as facilities for the
commission of crimes, and to assure that such businesses comply with basic consumer protection
standards, thereby protecting the public health, safety, and general welfare of the citizens of the
City.
To help the police departmeI1l better regulD.te current and future pawn businesses, decrease and
stabilize costs associated with the regulation of the pawn industry, and increase identification of
criminal activities in the pawn industry through the timely collection and sharing of pawn
transaction information, this section also implements and establishes the required use of an
. interchange file specification fOI111at as required by Minnesota Statutes.
Section I: Section 1180 of the Hopkins City Code is deleted in its entirety and replaced with the
following language:
SUBD. 1 - DEFINITIONS
The following tenns when used in this section shall have the following meanings unless the
context clearly indicates otherwise:
ISSUING AUTHORITY: The City of Hopkins
PA WNBROKER: Any natural person, partnership or cOlporation. 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
previousl y used, rented or leased, or selling it on consignment, the provisions of this section shall
be applicable.
PA WNSHOP: Any business establishment used or operated by a pawnbroker.
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REPORT ABLE TRANSACTION: Every transi1ction conducted by a pawnbroker in which .
merchandise is received through a pawn, purchase, consignment or trade. or in which a pa\vn is
renewed. extenueu or redeemed. or for which a unique transaction number or identifier is
generated by the point-of-sale software. is reportable except:
[) The bulk: purchase or consignment of new or used merchandise from a merchant.
manufacturer or wholesaler having an estahlished permanent pli1ce of business, i1nd
the retail sale of said merchandise provided the pa\vnbrokcr 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 and wholesale sales of merchandise originally received by pawn or purchase
and for which all applicable hold and/or redemption periods have expired.
BILLABLE TRANSACTION: EVt'ry reportable transaction conducted by a pawnbroker except
renewals, reuemptions or extensions of existing pawns on items previously reported and
continuously in the licensec's possession is ;) billahle transaction.
CHIEF O~~ POLICE OR POLICE OFFICER: City of Hopkins Police Chief, police officer or
designee.
MINOR: Any natural person under the age of eighteen (18) years.
LICENSEE: The person to whom a license is issued under this Section including any agenh or
employees of the person. e
sunn. 2 - LICENSE REQUIRED
No person shall exercise. CUlTY on. or be engaged in the trade or business of pawnbroker \vithin
the City unless such person is currently licensed under this Section.
SUBD. 3 - APPLICATION CONTENT
Every applic3tion 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. cOll)oration. partnership m other form of organizi1tion.
1) If the applicant is a natural person:
a) The mme, place and date of birth, street resident address and phone number of thc
applicant.
b) \\'11ctl1er the applicnl1t is a citizen of the Uniteu States or resident alien.
c) W'hether the applicant hns ever used or has been known by n name other than the
applicant's name. and if so. the name or names used and information conceming dates
and places used.
0) The name of the business if it is to be conducted under a designntion. name, ur style other
than the namc of the applicant and ~l certified copy of the certification as required by
Minnesota Statutes. Section 333.01.
e) The strect audresses at which the applicant has lived during the preceding five ()) years.
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. 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 infol1llation
concerning each general patiner 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 Mim1esota
Statutes, Section 333.01, a certified copy of such celiificate 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 infonnation conceming each of them required
in a) through h) of Subdivision (1) of this section.
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
infonnation conceming 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 infom1ation 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) \Vhether the applicant has previously been denied, or had revoked or suspended a
pawnbroker license from any other govellll1lent unit.
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c) The names, :-,trect resident addresses, and business addresses of three (3) character .
reCerences, who are of good mDral character and who are not related to the applicant or
not holding any ownership in the premise::, or husiness.
el) The location of the business premises.
c) The legal description of the premises to be licensed, together with a plot plan of the area
for which the license is sought shmving dimensions, location of buildings, and street
access parking facilities.
C) Such other inform:1tion as the City Council or issuing authority may require.
SUBD.4 - NE'V MANAGER
When a licensee places a manager in charge of a business, or if the named m:mager(s) in charge
of a licensed business changes, the licensee must complete and submit the appropriate
application un forms provided by the City within fourteen (L4) days. The application must
include all appropriate information required in Subdivision 3 of this Section.
SUBD. 5 - APPLICATION EXECUTION
All applications for a license under this Section must be signed and sworn to under oath of
,1ffirmatilln by the applicant. If the application is that of a natural person, it must be signed and
S\VOrn to hy 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 bund shall
he made and issued in the name of all partners.
Any fahc statement on an <lpplicatiol1 shall result in denial of the application. .
SURD. 6 - APPLICATION I\'VESTIGATION
At the time of making an initial or renewal applicati(l[l, the applicant shall. in "Titing. authori7.e
the Hupkins Police Department to investigate all facts set out in the application and uo a person;ll
background and criminal record check OIl the applicant. The applicant shall further authorize the
Hopkins Police Department to release information received from such investigation to thc City
Council. The appliGlllt shall have an opportunity to review such information before it is released
to the City' Cuuncil.
SUBD. 7 - VOTE REQt:IRED
After such investigation, the City Council shZlll grant or refuse the applicant.
SUBD. 8 - RESTRICTIONS REGARDING LICENSE TRANSFER
Each license under this Section shall be issued to the applicant only and shall not be transferahle,
except as allowed in the folluwing statements regarding corporations, partnerships, or
assoc iations:
<1) Licenses issueJ to corporations shall he valid only so long as there is no change in the
officers or ownership interest or the corporation unless such change is approved by
the CuunciL in which event said liccnse shall continue in force until the end uf the
then current license yeClr.
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. 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.
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
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another person.
SUBD. 9 - EXPIRATION OF LICENSE
All licenses shall expire as of midnight on December 3 I st of the year of issuance.
SUBD.I0 - 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
COITect, 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.
SUBD. 11 ~ PERSONS INELIGIBLE FOR A LICENSE
No license under this Section shall be issuf"d if the applicant. any general partner or managing
partner of a partnership. or a manager, propl~etor, or agent in charge of a corporation or other
organization:
a) Is a minor at the time the application is filcd~
b) Has been convicted of any crime directly related to the occupation licensed as
prescribed by MilU1esota 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 MilUlesota 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.
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SUBD. 12 - FEES .
The Hopkins City Council shall, by resolution, set the annunl license fee. investigation fee,
billahle transaction fee and fee for an amendment to the license for pnwnshops.
1 ) License Fee: The annual license fee shall be paid in full before the application for a I icense is
~l('cepted. Upon rejection of any application fur a license or upon withdrawal of an
3pplicntion before approval of the issuance by the COLlnciL onl y the 1 iccnse fee shall he
refunded to the applicant except where rejection is for a willful statement in the license
appl ication.
2) Investi!!ation Fee: An applicant for any license under this Section shall pay the City of
Hopkins at the time an original application is submitted, a nonrefunuable fee to cover the
costs invol\'Cd in verifying the license application and to cover the expense of any
investigation needed tu assure compliance with this Section.
3 ) Billable Transaction Fee: The hillahle transaction fee shall reflect the cost or processing
transactions and other reIateu regulatory expenses as determined by the City Council.
Bdlable transaction fees shall be billed monthly and are due and payahle within thirty (]U)
days. Failure to do so is a violation or this Section.
-1-) Renewal Fee: The annual license fee for renewal of a license shall be paiu in full at the time
the renewal application is filed \vith the Clerk.
StillD. 13 - BOND REQUIRED .
At the time of filing an application for a license. the applicant shall file a bonu in the amount of
five thous:md dollars ($5JIOO) \vith 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
he conuitiuned tlwt the licemee shall observe the ordinances of the city, in relation to the
business of pawnbroker. and that the licensee \,>'ill acn)unt for and deliver to any person leg~111y
clltitled thereto ~l11Y articles which may have cume into the possession of the licensee <IS
pawnbroker or in lieu thereof such licensee shall pay the person or persons the reasonahle v~lIL1e
thereof This bond shall contain a provision th~Jt nu bond may be canceled except upon thirty
(30) days writtellnotice [0 the city.
SUBD. 14 - 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
inuelihlc medium on forms or in a computerized record approved by the pulice department:
I ) A complete and accurate description of each item including. but not limiteclto, any
trademark. identification number. serial numher. model number. brand name, or other
identifYlng mark on sLlch an item.
2) The purchase pril'c. 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 amI all pawll fees ancl charges.
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. 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 \vhom 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) CurTent valid Minnesota driver's license.
b) CurTent valid Minnesota identification card.
c) CurTent valid photo identification issued by another state or province of Canada.
7) The signature of the person identified in the transaction.
S) Effective sixty (60) days from the date of Ilotification 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 stIch a manner that the photograph can be readily
matched and con'elated 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 coaelated
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.
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.
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II) Inspection of Recon.ls. The records must at all reasonable times be open to inspection by the .
Police Department. Data entries shall be ret3ined for at least three (3) years from the date of
transactiun. Entries of required digital images shall be retained a minimum of one hundred
-t-weRt-), (120) duys three (3) months.
Sl1BD. 15 - DAILY REPORTS TO POLICE
Erfel'tlVC no later than sixty (60) days after the police department provides licensees \vith
computerizeu records st:mdarus, licensees must submit every reportable transaction to the police
department dail y in the following manner:
] ) Licensees must provide the police department all information required in Subcl. 14 ( I )
through ((]) and other required infurmatilJll, by transferring it from their computer to the
Automated Pavdl System via modem. All required recorus must be transmitted
completely anu accurately after the close of business each day in aecurdance with
standards and procedures e:::.tablished by the City using procedures that address security
concel1lS 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 tnms3ctions are
reported to the Police Department daily.
2) Billahle transaction fees. Lil'ensees will he charged for each billable transaction reported
to the Pol ice 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 vicleotape(s) for that date by 12:00 the next husiness clay. If the problem is
determined to be the licensee.::, <;ystem and is not corrected by the close of the first e
bus iness day follo\ving the fail me, the 1 icensee must provide the required reports as
provided for herein, hut may be charged an additional fee as established by the City
Council for each tr311saction submitted in this manner after the close of the first business
day folknving the day of failure. If the problem is determined to be outside the licensee's
system. the I icensce must cont i nul' to pro\" ide the information as provided for herein and
resuhmit all such transactions via modem when the error is corrected, but shall not be
subjel't to any additional charge,
-1-) If a licensee is unable tu capture, Jigitize or transmit the photographs required in this
subJi\isiun, the licensee must imlllediately take all required photographs \vith a still
camera, Jevelop the pictures. cro::'s~refercnce the photographs to the COITcet transaction,
and make the pictures 3vailablc to the Police Dep3rtment upon request.
)) Regardless of the cause or origin of the technical problems that prevented the licensee
frum uploading their transactions, upon correction of the problem, the licensee shall
upload every reportable trans:.Jclion from every business day the problem had existed.
6) Nutwithstanding any other pro\'isions herein. the Police Chief. or the Chiefs designee.
upon presentation of extenuating circumstances. may extend the period before any
additional charges arc imposed for the manual reporting of billable transactions.
SUED. 16 - RECEIPT REQUIRED
Every licensee must provide a receipt to the party identified in every reportable transaction and
l1lu.st maintain a duplicate of that rel'eipt for three (J) years. The receipt must include at least the
following information: .
1 ) The nillllC. address and telephone number of the licensed business.
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. 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.
S) The signature or unique identifier of the licensee or employee that conducted the
transaction.
6) The amount advanced or paid.
7) The monthly and mUlua] interest rates, including all pawn fees and charges.
S) 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 reueem the pawned
item on that date.
9) The full name, current residence address, cunent residence telephone number, and date
of birth of the pleuger 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) Cunent valid MiIUlesota identification card.
c) CUlTent 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
culor 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.
SUBD.17 - REDEMPTION PERIOD
Any person pledging, pawning, or depositing an item for security must have a minimum of
ninety (90) 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 VI:hom the receipt was issued or, to any person
identified in a written and notarized authorization to retleem 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 he maintained along with original
transaction record.
SUBD. 18 - HOLDING PERIOD
Any item purchased or accepted in trade by a licensee must not be sold or otherwise transferred
for thirty (30) twenty-one ( 21 ) days from the date of the transaction.
An individual may redeem an item no sooner than seventy-two (72) hours after the item was
received on clcposit~. excluding Sundays antllegal holidays are not included in the 72-hour
holding period.
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SURD. 19 - POLICE ORDER TO HOLD PROPERTY .
] ) Investig~tive Hold. \;Vhencver 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 "\Titing by the originating agency within seventy-
two (72) hours and will remain in effect for fifteen ( 15) days from the date of initial
notirication. 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
fi rs t.
2) Order to Hold. \Vhenever 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 premiscs until
authori...:ed 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 \-\Titing.
3) Order to Confiscate. If an item is identified m. stolen or evidence in a criminal case, the
Chief or Chiefs designee n13Y:
a) Physically confiscate ::ll1d rcmOH~ it from the shop, pursuant to written order from the
Chief or the Chiefs designee, or
b) Place the item on hold or extenJ the hold as provided in #2 of this subdivision, and
lea \'e the item in the shop.
When an item is confiscated. the person doing so slwll 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 rebteJ to the confiscation.
V\'11cn an order to holdlconfiscate is no longer necessary, the Chief of Police or Chiefs designee .
skIll so notify the licensee.
SUBD. 20 - INSPECTION OF ITEMS
At all times during the tcrm of the license. the licensee must <JIIow the Chief of Police or the
Chiefs Jesignec( s) to enter without notice the premises \vherc the licensed business is located
during normal business hours, eXL'ept in 8n emergency. for the purpose of inspecting such
premises ;1[1d inspecting the items, ware <lllllmerd1alldise, and records therein to verify
compliance \.vith this Section or other applieahle laws.
SURD. 21 - LABEL REQUIRED
Licensees much attach a label to every itt'm at the time it is IXI\Vned, purchased or received in
inventory from any reportable transaction. Permancntly recorded on this label must he thc
number or name that identifies the transae! iOIl in the shop - s records. The transaction date, the
llame 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 applicahle. Labels shall not be re-used.
SURD. 22 - PROHIBITED ACTS
1 ) No person under the age of eighteen (I R) years may pawn or 5ell or attempt to pawn or
sell gnods with any licensee. nor m:1Y ~ll1y licensee receive any goods from a person
under the age of eighteen (I is) years. .
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. 2) No licensee shall receive any goods from a person of unsound mind or an intoxicated
person.
3) No licensee may receive any goods, unless the seller presents identification in the form
specified in #6 of Subd. 14.
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.
5) No person may pawn, pleJge, 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.
6) AI! clIstomers of a pawnshop will give their current residence address and current
residence telephone number as part of their transaction. 1^.ny misrepresentation of either
current addre:;s or current telephone number '.';ill be deemed in violation of the city
ordinance.
SUBD. 23 - LICENSE REQUIREMENTS
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.
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 appwved license application.
3) Maintenance of Order. A licensee under this ordinance shall be responsihle for the
conduct of the business being operated and shall maintain conditions of order.
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 pavmed 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.
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.
.
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6) Sign. Licensee shall post an adequate sign visible to clIstomers. For tbe purpose of this .
section, an "adequate" sign shall he deemed to Illean at the least one sign of not less than
four (4) square feet in surface ~HecL comprised of lettering of not less thJn three-quarters
(3/4) of an inch in height. posted in a conspicllous 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 I\'1UST 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 VALlO PHOTO IDENTIFICATION
VIOLA nON OF ANY OF THESE REQUIREMENTS IS A CRIME!
SllED. 24 - DENIAL. SUSPENSION OR REVOCATION
Any I iccnse under this section may he denied. suspended or revoked for one or more of the
following reasons:
1) The proposed use does not comply \vith the City of Hopkins zoning code.
:2) The proposed lIse docs not compl y with ::II1Y health. building, building maintennllce or
other provisions of state or local laws or ordinances.
3) The applicant or licensee has failed to comply with one or more provisions uf this
section. .
cJ.) The applicant is nol a citizen of the United States or a resident 31 ien, or upon whOI11 j t is
impractical or impossible to conduct a background or financial investigation Jue to the
unavailability of information.
5) Fraud, misrepresentation or bribery in securing or renewing a license.
6l 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.
};) The owner of the premises I icensed or to be licensed \vould not qual ify for a license
under the terms of this section.
SURD. 25 . HEARING REQUIRED
Except in the case of a suspension pending a hearing on revocation, a revocation or suspemion
of a license by the City Council shall be preceded hy a public hearing conJucted in accordance
w j th rVIintlesota Statute I .5JJ418 to 15.0426. The City Council may appoint a hearing examiner or
may cllnduct a hearing itselL The hearing notice sl};}11 be given at least ten (]O) days prior to the
hearing. including notice of the time and place of the hearing, and shall stale the nature of the
charges against the licensee.
SLBD. 26 . SEPARABILITY
Should any subdivision. subsectiun. clause or other pmvision of this ordinance be declared by a
court of competent jurisdjction to be invalid such dt'L'ision shall not effect the validity of lhe .
ordinance as a whole or any part other than the part so declared invalid.
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. SUED. 27 - ADOPTION OF THE PAWNBROKER REGULATION ACT
To the extent the requirements of this ordinance arc less restrictive than the provisions of the
Pawnbroker Regulation Act, the regulatory provisions of said Act, codified as Minnesota State
Statute 315J, are hereby adopted and incorporated herein and made part of this code as
completely as if set out in full.
Section 3. The effective date of this ordinance shall be twenty days after publication.
First Reading: January 15. 2002
Second Reading: February 5, 2002
Date of Publication: February 13, 2002
Date Ordinance Takes Effect: March 5, 2002
Gene Maxwell, Mayor
. ATTEST:
Teny Obc1l11aier. City Clerk
APPROVED AS TO FORM AND LEGALITY:
City Attorney Signature Date
.
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