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CR 11-112 Pawnshop Ordinance• November 28, 2011 Proposed Action PAWNSHOP ORDINANCE Council Report 2011-112 Staff recommends that the Council approve the following motion: Move that the Hopkins City Council approve Ordinance 2011-1043 for first reading. Adoption of this motion will begin the process of amending Section 1180 of the Hopkins City Code to bring it into compliance with state law. Overview The state of Minnesota made some changes to the statutes regulating pawnshops. The City's ordinance needs to be revised accordingly. The City's current ordinance states that the Redemption Period, the amount of time a person who pawns an item has to redeem the item before it may be forfeited and sold, be at least 60 days. State law was changed to make it 60 days. State law also was changed to allow an individual who pawns an item to get it back at any time within 60 days. The City's current ordinance has a waiting period of 72 hours. State law changed the holding period from 21 to 31 days for items purchased or accepted in trade by the •pawnshop. The holding period is the amount of time that the pawnshop must retain an item that was purchased from a customer prior to reselling the item. Supporting Information • Ordinance number 2011-1043 ,4.,, a - Jame A. Genellie Assistant City Manager is • CITY OF HOPKINS COUNTY OF HENNEPIN ORDINANCE NO. 2011-1043 AN ORDINANCE AMENDING SECTION 1180 OF THE HOPKINS CITY CODE PAWNSHOPS The City Council of the City of Hopkins does hereby ordain: Section 1. That Section 1180.25 be amended as follows: 1180.25 Redemption Period. Any person pledging, pawning, or depositing an item for security must have . . - e€ 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. Section 2. That Section 1180.27 be amended as follows: 1180.27 Holding Period. Any item purchased or accepted in trade by a licensee must not be sold or otherwise transferred for twenty ene thirty-one (31) days from the date of the transaction. Section 3. The effective date of this ordinance shall be the date of publication. First Reading: December 6, 2011 Second Reading: December 20, 2011 Date of Publication: December 29, 2011 Date Ordinance Takes Effect: December 29, 2011 Gene Maxwell, Mayor ATTEST: 0 Kristine Luedke, City Clerk