CR2002-001 Ord 865 Amending Pawnshops
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January 15,2002 Council Report 2002-01
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ORDINANCE AMENDING SECTION 1180, PAWNSHOPS,
OF THE HOPKINS CITY CODE
Proposed Action
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Staff recommends that the Council approve the following motion: Move to approve Ordinance 2002-865 for
first reading.
Approval of this motion will begin the process of amending section 1180 of the Hopkins City Code removing
outdated language.
Overview
Staff is recommending Section] 180, Pawnshops, be deleted and that a new ordinance, 2002-865, be adopted
to replace it. The purpose of this change is to bring the Hopkins' City Code in conformance with state law.
The new ordinance would also be similar to the rules of the city of Minneapolis. The only existing pawnshop
in Hopkins has already adopted the required technology for its operations in Minneapolis.
e Primary Issues to Consider
. What are the major changes to the pawnshop ordinance?
Supporting Information
. Analysis of the Issues
. Ordinance 2002-865
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A. Genellie
istant City Manager
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Council Report 2002-01
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Analvis of the Issues
What are the major changes to the pawnshop ordinance?
The following is a summary of the major provisions ofthe 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-jurisdictional pawn
transaction data. This will eliminate manual entry of pawn tickets and allow a greater link to Metro
agenCIes.
. Establishes new criteria for redemption peliod for any person pledging, pawning or depositing an
item for security to have a minimum of 90 days from the day ofthe transaction to redeem the item
before it becomes forfeited and sold.
. Establishes new criteria [or 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 trans felTed for
30 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.
Explanation ofNe\v Fee Stn/ctuTe:
. License fee to decrease from $7,OOO/year to $5,000/year, which is a $2,000 savings for the pawnshop.
. Addition of a billab le transaction fee set at $1. 7 5 for each bi llab Ie transaction. This fee can be bi \led
directly to the customer as a "city fee". This fee wi]] cover the cost ($1 per billable transaction) that
the City of MilU1eapolis charges us for data collection and maintenance fees when using the
automated pawn system.
. An investigation fee for the costs involved in verifying the original application submitted and any
investigation needed to assure ordinance compliance.
. The renewal fee for the annual license, which will remain the same as the original license fee of
$5,000.
Alternatives
1. Approve Ordinance 2002-845 for first reading.
2. Do not approve Ordinance 2002-845 for first reading and direct staff to make changes.
Staff recommends Altemativc #1.
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. CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 2002-865
AN ORDINANCE DELETING SECTION 1180 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 amI their concealment because pawn businesses have the ability to
receive and transfer property stolen by others easily and quickly. The City Council also finds that
consumer protection regulation is wananted 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, therehy protecting the public health, safety, and general welfare of the citizens of the
City.
To help the police department better regulate current and future pawn businesses, decrease and
stabilize costs associated with the regulation of the pawn industry, and increase identification of
criminal activities in the pawn industry through the timely collection and sharing of pawn
transaction information, this section also implements and establishes the required use of the
. automated pawn system (APS).
Section 1: Section 1180 of the Hopkins City Code is deleted in its entirety and replaced with the
following language:
SUBD. 1 - DEFINITIONS
The following terms when used in this section shall have the following meanings unless the
context clearly indicates otherwise:
ISSUING AUTHORITY: The City of Hopkins
PA'VNBROKER: 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
chattc1mortgage 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 lIsed. rented or leased, or selling it on consignment, the provisions of this section shall
be applicable.
PAWNSHOP: Any business establishment used or operated by a pawnbroker.
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. 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:
1) The bulk purchase or consignment of new or used merchandise from a merchant,
manufacturer or wholesaler having an established permanent place of business, and
the retail sale of said merchandise provided the pawnbroker must maintain a record of
sllch purchase or consignment which describes euch item, and mllst 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 andJor redemption periods have expired.
BILLABLE TRANSACTION: Every reportable transaction conducted by a pawnbroker except
renewals, redemptions or extensions of existing pawns on items previousl y reported and
continuously in the licensee's possession is a bilJ "ble transaction.
CHIEF OF POLICE OR POLICE OFFICER: City of Hopkins Police Chief police officer or
designee.
l\1INOR: Any natural person under the age of eighteen (18) years.
LICENSEE: The person to whom a license is issued under this Section including any agents or
. employees of the person.
SUBD. 2 - LICENSE REQUIRED
No person shall exercise, carryon, or be engaged in the trade or business of pawnbroker within
the City unless such person is currently licensed under this Section.
SUBD. 3 - 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, pminership 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 Llsed and information concemingclates
and places used.
cl) 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 liveu. during the preceding five (5) 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 addressees) 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 fumish 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 addressees) 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 333.0 L 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 cOllceming 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 sl1<111 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 concemillg each manager, proprietor, or agent required in a) through h) of
Subdi vision (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 conceming said persons required in Subdivision (1) above.
4) For all applicants:
a) Whether the applicant holds a current pawnhroker license from any other govemmental
unit.
b) Whether the applicant has previously been denied. or had revoked or suspended a
pawnbroker license from any other govcl11ment unit.
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. 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 Councilor issuing authority may require.
SURD. 4 - NEW MANAGER
\Vhen 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 mllst
include all appropriate infonnation required in Subdivision 3 of this Section.
SUBD. 5 - APPLICATION EXECUTION
All applications for a license under this Section must be signed and swam to under oath of
affirmation by the applicant. If the application is that of a natural person. it must be signed and
s\vorn 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 w1incorporated 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. 6 - 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
SlJBD. 7 - VOTE REQUIRED
After such investigation, the City Council shall grant or refuse the applicant.
SUBD. 8 - RESTRICTIONS REGARDING LICENSE TRANSFER
Each license under this Section shall he 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.
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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 011 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 initio.l application will be acquiring o.n 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
another person.
SUBD. 9 - EXPIRATION OF LICENSE
All licenses shall expire as of midnight 011 December 31 st of the year of issuance.
SUED. 10 - RENE"r AL 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 rene\val within the time period provided, the Council may, if the other provisions of this
Section are complied with. grant the application.
SURD. 11 - 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 tbe 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 resitlent 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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. SUED. 12 - FEES
The Hopkins City Council shall, by resolution, set the aImuallicense fee. investigation fee,
billable transaction fee and fee for an amendment to the license for pawnshops.
1 ) 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.
2) 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.
3) 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.
Billahle 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.
4) 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.
. SUED. 13 - 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 Attomey. 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 ami 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.
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
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.
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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
repOlting 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 .my of the following forms of identification
of the seller:
a) Current valid Minnesota driver's license.
b) Cunent 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 <lffixed.
c) If a photograph is taken, it mnst 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 cOlTelated 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 inf01111 the person that he or she is being
photograpbed 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
phorographed by video must be accurately depicted. Video photographs must be
electronically referenced by time and date so they can be readily matched and conelated
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 fonnat 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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. 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 one hundred
twenty (120) days.
SUBD. 15 - 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 the
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
concems 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. tbe 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 enor is cOlTected. 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 Ll. 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 coneetlon 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.
SUED. 16 - 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
. [olJawing information:
1) The name, address ami 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.
5) The signature or unique identifier of the licensee or employee that conducted the
transacti on.
6) The amount advanced or paid.
7) The monthly and anllual 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, ClUTcnt residence address, current residence telephone number, and date
of birth of the pledger or seIler.
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 MilU1esota identification card.
c) CUlTent valid photo identification card issued by another state or a province of
Canada.
I 1) Description of the pledger or seller including heigllt, weight, sex, race, color of eyes and
color of hair.
. 12) The signature of the pledger or seller.
13) All printed statements us required by State Statute 325J.04, Subdivision 2. or any other
applicable statutes.
SURD. 17 - REDEMPTION PERIOD
Any person pledging, pawning, or depositing an item for security must have a minimum of
ninety (90) 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.
SUBD. 18 - 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.
An individual may redeem an item scventy~two (72) hours after the item was received on
deposit, excluding Sundays and legal holidays.
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. SUBD. 19 - POLICE ORDER TO HOLD PROPERTY
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.
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.
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.
When an item is confiscated. the person doing so shall provide identification upon request of the
licensee, and shall provide the licensee the name and phone number of the confiscating agency
and investigator, and the case number related to the confiscation.
. When an order to hold/confiscate is no longer necessary, the Chief of Police or Chiefs designee
shall so notify the licensee.
SUBD. 20 ~ 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.
SUED. 21 - 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.
SUBD. 22 - PROHIBITED ACTS
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 (8) 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, 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 anotller has a security interest
with any licensee.
6) All customers of a pawnshop will give their CUlTcnt residence address and current
residence telephone number as part of their transaction. Any misrepresentation of either
cunen! address or current telephone number will be deemed in violation of the city
ordinance.
SUBD. 23 ~ LICENSE REQUIREl\1ENTS
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 all the premises for which it is isslled. The license issued is only effective for the
. complete and contiguous space specified in the approved license application.
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.
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.
5) Inspection by Claimed O\vner. 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 shGll 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 PAWNOR SELL PROPERTY:
YOU MUST BE AT LEAST] 8 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 V ALlD PHOTO IDENTIFlCA TION
VIOLA TION OF ANY OF THESE REQUIREMENTS IS A CRIME!
SUBD. 24 ~ 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 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 tbe 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.
SUBD. 25 - 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 ]5.04]8 to ]5.0426. The City Council may Gppoint a hearing examiner or
may conduct a hearing itself The hearing notice shall be given at least ten (1O) 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.
SUBD. 26 - 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 t]lan 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 are less restrictive than the provisions of the
Pawnbroker Regulation Act, the regulatory provisions of said Act, codified as Mim1esota State
Statute 3251, are hereby adopted amI incOlporated 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:
Terry Obel111aier, City Clerk
APPROVED AS TO FORM AND LEGALITY:
City Attorney Signature Date
.
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