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HomeMy WebLinkAbout1295 - Pawnbrokers Secondhand Dealers & Junk Dealers0 • 0 ORDINANCE NO. 12 9 5 AN ORDINANCE OF THE CITY OF NEWPORT BEACH ADDING CHAPTER 5.20 TO THE NEWPORT BEACH MUNICIPAL CODE RELATING TO PAWNBROKERS, SECONDHAND DEALERS AND JUNK DEALERS The City Council of the City of Newport Beach does ordain as follows: SECTION 1. Chapter 5.20 is added to the Newport Beach Municipal Code to read: "Chapter 5.20 PAWNBROKERS, SECONDHAND DEALERS AND JUNK DEALERS Sections: =0.010 Pawnbroker Defined. 5.20.020 Pawnshop Defined. 5.20.030 Secondhand Dealer Defined. 5.20.040 Junk Dealer and Junk Collector Defined. 5.20.050 Permits. 5.20.060 License Fees. 5.20.070 Reports to Police. 5.20.080 Records Required to be kept. 5.20.090 Failure to Comply Unlawful. 5.20.100 Disposition of Articles. 5.20.110 Exempt Transactions. 5.20.120 Hours of Operation. 5.20.130 Property Received from Outside State. 5.20.140 Application of Reports and Records Provisions to other Merchants Selling Secondhand Articles. 5.20.010 Pawnbroker Defined. The term 'pawnbroker' shall mean a person, firm or corporation engaged in con- ducting, managing or carrying on the business of loaning money, for himself or for any other person, upon personal property, personal security, pawns or pledges, or the business of purchasing articles of personal property and reselling or agreeing to resell such articles to the vendors or their assignees, at prices agreed upon at or before the time of such purchase. 5.20.020 Pawnshop Defined. The term 'pawnshop' shall mean any room, store or place in which business or activity described in Section 5.20.010 is engaged in, carried on or conducted. n 5.20.030 Secondhand Dealer Defined. A. DEFINITION. The term 'secondhand dealer' shall mean a person, firm or corporation engaged in, conducting, managing or carrying on the business of buying, selling, or otherwise dealing in secondhand goods, wares or merchandise. B. EXEMPTIONS. 1. Any person, firm or corporation who or which engages in the business of selling genuine antique articles which are purchased by such person, firm or corporation directly from a wholesale dealer in such articles, or which are imported.into the United States of America by such person, firm or corporation, shall not be deemed to be a 'secondhand dealer' by reason of engaging in such business. 2. Any person, firm or corporation who or which acquires in good faith, identifiable secondhand property as part or complete payment for other personal property • in the ordinary course of conducting a business of selling new personal property directly to the consumer, shall not be deemed to be a 'secondhand dealer' by reason of engaging in such business. 3. Any person, firm or corporation who or which engages in the business of selling used motor vehicles or used watercraft vessels shall not be deemed to be a 'secondhand dealer' by.reason of engaging in such business. 4. Any person, firm, group, association or corporation who or which acquires in good faith, identifiable secondhand property for the sole purpose of distribution of such property by sale, gift or otherwise in furtherance of its stated objectives of promoting religious, charitable or educational purposes shall not be deemed to be a 'secondhand dealer' by reason.of engaging in such activities. Any such person, -2- ,now • I • 0 firm, group, association or corporation must file a request for exemption as a secondhand dealer with the City Manager on a form provided by the City. A minimum of seventy -five per cent of the gross proceeds, compensation and earnings obtained from such activities must be devoted to its stated religious, charitable or educational purposes in order to qualify for exemption. 5. The exemptions set forth in paragraphs 1 through 4 of this section do not apply to transactions involving bicycles and /or their parts, surfboards, firearms capable of being concealed, cameras and photographic equipment, Marine hardware and related equipment with a retail value of over $50.00, typewriters and all business machines, sewing machines and all musical instruments. 5.20.040 Junk Dealer and Junk Collector Defined. (a) The term 'junk dealer' shall mean a person, firm or cor- poration having a fixed place of business in the City of Newport Beach and engaged in, conducting, managing or carrying on the business of buying, selling or otherwise dealing, either at wholesale or retail, in any old rags, sacks, bottles, cans, . paper, metal or other articles commonly known as junk; provided, however, that any person, firm or corporation authorized to collect garbage or refuse pursuant to Section 6.04.090 of this Code shall not be deemed to be a junk dealer by reason of engaging in such business. (b) The term 'Junk collector' shall mean a person not having a fixed place of business in the City of Newport Beach, who goes from house to house or from place to place gathering, collecting, buying, selling or otherwise dealing in any old rags, sacks, bottles, cans, paper, metal or other articles commonly known as junk; provided, however, that any person, firm or corporation authorized to collect garbage or refuse -3- TLW 4/2 669 pursuant to Section 6.04.090 of this Code shall not be deemed to be a junk collector by reason of engaging in such business. of a pawnbroker, junk dealer, junk collector or second- hand dealer, or deal in secondhand merchandise either as a business or as a part of any other business without first applying for and receiving a permit therefor from the City Manager. Said permit shall be issued by the City Manager, but only after having received a report of investigation from the Chief of Police. B. APPLICATION FORM. The form on which application shall be made for a permit hereto shall require the following information: 1. Name of the applicant and complete physical description. • 2. Residence and business address of the applicant. 3. The length of time for which a permit is desired. 4. A statement as to whether or not the applicant holds or has held a permit from any state, municipality, governing body or licensing authority; a list of such permits and a statement of the time, place and by whom issued; a statement as to whether any state, municipality, governing body or licensing authority has ever refused to issue or to renew a permit to the applicant and if so, a full and accurate statement as to the reasons for any such refusal; a statement as to whether any state, municipality, governing body or licensing authority has ever revoked a permit held by the applicant and if so, a full and accurate statement as to the reasons for any such revocation. -4- 5.20.050 Permits. A. REQUIREMENT. No person shall engage in, conduct, manage or carry on the business of a pawnbroker, junk dealer, junk collector or second- hand dealer, or deal in secondhand merchandise either as a business or as a part of any other business without first applying for and receiving a permit therefor from the City Manager. Said permit shall be issued by the City Manager, but only after having received a report of investigation from the Chief of Police. B. APPLICATION FORM. The form on which application shall be made for a permit hereto shall require the following information: 1. Name of the applicant and complete physical description. • 2. Residence and business address of the applicant. 3. The length of time for which a permit is desired. 4. A statement as to whether or not the applicant holds or has held a permit from any state, municipality, governing body or licensing authority; a list of such permits and a statement of the time, place and by whom issued; a statement as to whether any state, municipality, governing body or licensing authority has ever refused to issue or to renew a permit to the applicant and if so, a full and accurate statement as to the reasons for any such refusal; a statement as to whether any state, municipality, governing body or licensing authority has ever revoked a permit held by the applicant and if so, a full and accurate statement as to the reasons for any such revocation. -4- 5. A statement as to whether or not the applicant has ever been arrested for any crime, misdemeanor or violation of any municipal ordinance and if so, the nature of the offense and the punishment or penalty assessed therefor, if convicted. 6. A photograph of the applicant taken within sixty days immediately prior to the date of the filing of the application which picture shall be two inches by two inches showing the head and shoulders of the applicant in a clear and distinguishing manner, except that this requirement is waived with respect to an application for renewal of a permit by an applicant holding an unexpired permit issued under this chapter who has in a previous application under this chapter complied with this requirement. 7. Applicant shall submit to being finger- printed and shall submit the names of at least two reliable property owners of the County of Orange, State • of California, who will certify as to the applicant's good moral character and business responsibility or, in lieu of the names of reference, any other available evidence as to the good moral character and business responsibility of the applicant that will enable an investigator to properly evaluate such moral character and business responsibility, except that this requirement is waived with respect to an application for renewal of a permit where a person has made a previous application under this chapter and has complied with this require- ment. C. INVESTIGATION. The City Manager shall forthwith refer the applicant for a permit to the Chief of Police who shall cause to be made such investigation '• of the applicant's moral character and business responsibility as he deems necessary for the protection -5- of the public interests, except that such investigation by the Chief of Police is not necessary with respect to the renewal of an application for a permit hereunder wherein such investigation of the applicant's moral • character and business responsibility has previously been determined. D. REPORT OF INVESTIGATION. The Chief of Police shall complete his investigation herein provided for, within a reasonable time and shall make a written report to the City Manager within thirty days and shall certify in said report whether or not the moral character and business responsibility of the applicant is satisfactory. E. MULTIPLE BUSINESSES. If any person, firm or corporation shall engage in, conduct, manage or carry . on, at the same time, more than one of the businesses defined and referred to in this chapter, such person shall be deemed to be engaged in conducting, managing and • carrying on such business separate and apart from the other such business and such person, firm or corporation shall comply in all respects with the provisions of this chapter relating to each such business, and no person shall fail, refuse or neglect to do so. F. REVOCATION OR REFUSAL. A permit issued hereunder may be revoked by the City Manager or an application for issuance or renewal of such permit may be refused by the City Manager if he determines after notice and hearing: 1. That the applicant or permit holder is not an individual of good moral character and business responsibility; or 2. That the application of the applicant or permit holder contains any false, fraudulent or mis- leading material statements.;. or 3. That the applicant or permit holder has made any false, fraudulent or misleading material statement in the course of conducting his business under said permit in the City of Newport Beach; or 4. That the applicant or permit holder has perpetrated a fraud upon any person whether or not such fraud was perpetrated in the conduct of his business in the City of Newport Beach; or 5. That the applicant or permit holder has violated any of the statutes of the State of California relating to the activities engaged in by the applicant; or 6. That the applicant or permit holder has been convicted of any crime or misdemeanor involving moral turpitude; or 7. That the applicant or permit holder has conducted his activity in the City of Newport Beach in an unlawful manner or in such a manner as to constitute • a breach of the peace or a menace to the health, safety or general welfare of the public. G. NOTICE OF HEARING. Notice of the hearing provided for shall be given in writing to the applicant or permit holder, as the case may be. Such notice shall be mailed, postage prepaid, to the applicant or permit holder, as the case may be, at his last known address at least five days prior to the date set for hearing. The applicant or permit holder, as the case may be, shall have the right to be represented at such hearing by counsel. H. APPEAL. Any person aggrieved by the action of the Chief of Police or the City Manager in the denial of an application for permit or renewal of permit as provided heretofore, shall have the right of appeal to the City Council of the City of Newport Beach. Such appeal shall be taken by filing with the City Council within fourteen days after notice of the action complained -7- of has been mailed to such person's last known address, a written statement setting forth fully the grounds for appeal. The City Council shall set a time and place for a hearing of such appeal and notice of such hearing shall • be given to the appellant in the same manner as provided in Subsection G of this section for notice of hearing on revocation: The decision of the City Council on such appeal shall be final and conclusive. 5.20.060 License Fees. Every person conducting or carrying on the business of a pawnbroker, junk.dealer, junk collector, or secondhand dealer or dealing in.second- hand merchandise, as a separate business, shall pay an annual license fee of One Hundred Dollars ($100), or Five Dollars ($5) per day. Every person conducting or carrying on the business of a pawnbroker, junk dealer, junk collector, or second- hand dealer, or dealing in secondhand merchandise in • connection with any other business, shall pay the license fee required by the laws of the City of Newport Beach for said other business, plus the additional sum, if any, which shall be required to be paid, not to exceed the sum of One Hundred Dollars ($100) per annum total or, at the rate of Five Dollars ($5) per day if conducted on a day to day basis. Notwithstanding any provisions of this ordinance to the contrary, any religious, charitable or educational society or institution engaging in, conducting, managing or carrying on the business of secondhand dealer, junk dealer or junk collector shall not be required to make payment of any of the fees herein prescribed, provided that a minimum of seventy -five per cent of the gross proceeds, compensation, and earnings obtained from such -8- WE business are devoted to the religious, charitable and educational purposes, respectively, of such religious, charitable or educational society or institution. 5.20.070 Reports to Police. A. TIME OF MAKING. Every pawnshop, secondhand dealer, junk collector and junk dealer shall, on each Monday and Thursday before the hour of 10:00 a.m. of said day, make out and deliver to the Police Department, on a blank form to be obtained from the Police Department by such pawnshop, secondhand dealer, junk collector and junk dealer for such purpose, a full, true and complete report of all goods, or things received on deposit, pledged or purchased during the period preceding the filing of such report. B. CONTENTS. Such report shall be in English and shall contain the name and place of business of the person making the same and the date and hour of the day when prepared. Such report shall show the hour of the day when each article was received on deposit, pledged or purchased, and the true name and address, as nearly as the same is known or can be ascertained by such pawnshop, secondhand dealer, junk collector or junk dealer, of the person who left such article on deposit, or pledged or sold the same, together with a description of such person and a statement as to whether such person is under the age of eighteen years. Such report shall also show the number of the receipt or pawn ticket, the amount loaned, the amount purchased, and a complete description of each article left on deposit, pledged or purchased. If any article so left on deposit, pledged or purchased has .engraved thereon any number, word or initial, or contains any settings of any kind, such report shall contain such • number, word or initial, and shall show the kind of settings and the number of each kind. WE C. CONFIDENTIAL. The Chief of Police shall cause all reports received pursuant to the terms of this section to be filed in a secure place, and the same shall be open to inspection only by members of the Police Department, or upon order of a court of competent jurisdiction. 5.20.080 Records Required to be Kept. Every pawn- broker, secondhand dealer, junk dealer and junk collector shall keep, for a period of three years, a complete record in the English language of all goods, wares, merchandise or things pledged to or purchased or received by him, which record shall contain all of the matters required to be shown in the reports referred to and described in Section 5.20.070 of this chapter. Every such record and all goods, wares, merchandise and things pledged to or purchased or received by any such secondhand dealer shall be open at all times during business hours to the inspection of the Chief of Police or any police.officer of the City of • Newport Beach. 5.20.090 Failure to Comply Unlawful. No person engaged in conducting, managing or carrying on the business of a pawnbroker, secondhand dealer, junk dealer or junk collector, nor any agent or employee of any such person, shall fail, refuse or neglect to file any report or keep any record in the form, in the manner, at the time and in all respects in accordance with the requirements of this chapter, or fail, refuse or neglect to exhibit to the Chief of Police or any police officer of the City of Newport Beach, immediately upon demand for the privilege of such inspection, any such record or any goods, wares or merchandise or things pledged to or purchased or received by such person. -10- -11- 4/7/69 5.20.100 Disposition of Articles. No pawnbroker or secondhand dealer shall sell or otherwise dispose of any article, merchandise or thing within fifteen (15) days after the same has been received or purchased, nor fail to keep such article, merchandise or thing unaltered, as pledged or purchased, in lots separate and apart from other articles, merchandise or things in the place of business of such pawnbroker or secondhand dealer for a period of fifteen (15) days from the date of pledge or purchase thereof. No junk dealer or junk collector shall sell or otherwise dispose of any article, merchandise or thing within three (3) days after the same has been received or purchased, nor fail to keep such article, merchandise or thing unaltered, as pledged or purchased, in lots separate and apart from other articles, merchandise or things in the place of business of such junk dealer or Junk collector for a period of three (3), days from the date of pledge or purchase thereof. 5.20.110 Exempt Transactions. The provisions of this chapter concerning records and reports shall not be deemed to apply to the purchase or sale by junk dealers or junk collectors of rags, bottles, secondhand sacks, barrels, cans, shoes, lamps, or scrap iron, when bought or sold for scrap, stoves, or household furniture (with the exception of sewing machines and musical instruments), or the purchase or sale by secondhand dealers of household furniture (with the exception of sewing machines, all musical instruments and typewriters), or to the purchase or sale of any motor vehicle, trailer or semi - trailer which has been registered in California as required by law. -11- 4/7/69 c 5.20.120 Hours of Operation. No person engaged in, conducting, managing or carrying on the business of pawn- broker, secondhand dealer, junk dealer or junk collector, or any agent or employee of any such person shall accept any pledge of or loan any money upon personal property, or purchase or receive any goods, wares or merchandise, or any article or thing, or in any manner whatsoever engage in or conduct any such business between the hours of twelve o'clock midnight on Saturday and the hour of seven o'clock in the forenoon of the following Monday, or between the hour of seven o'clock in the afternoon of any day, other than Saturday or Sunday, and the hour of seven o'clock in the forenoon of the following day. 5.20.130 Property Received from Outside State. Notwithstanding any other provisions of this chapter, every auction house manager, pawnbroker, secondhand dealer, and any merchant dealing in or offering for sale any item or items of secondhand jewelry or object of art or similar merchandise which is identifiable by number, letter, phrase, mark or other means of identification commonly recognized in trade, shall file with the Police Department the report required concerning any such item received from outside the State of California or received from any person, who, within thirty days prior thereto, received it from outside the State of California or brought it into the State of California. Records of such articles shall be kept as required by Section 5.20.080. 5.20.140 Application of Reports and Records Pro- visions to Other Merchants Selling Secondhand Articles. Whenever any section of this chapter shall require a report to the Police Department, or shall require a record of any secondhand article, or shall require the holding of such article for any stated period of time by any second- hand dealer or junk dealer or anyone engaging in any -12- .. r4 ATTEST: business in this chapter specifically referred to, it City • -er shall also include any merchant who receives for sale, attempts to sell, or displays for sale any such secondhand • article for another person in expectation of receiving a commission or fee or gratuity, or reward therefor, or as an agent or broker, and each and every provision of this •' \ . /4PTY-tL ERX OFfTHE CITY OF NEW440ftr BEACH chapter shall thereupon be applicable to such person as though he were in the specific business mentioned herein. SECTION 2. Sections 12.56.070, 12.56.080 and 12.566-090 of the Newport Beach Municipal Code are hereby repealed. SECTION 3. This ordinance shall be published once in the official newspaper of the City, and the same shall be effective 30 days after the date of its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 7th day of April , 1969, and was adopted on the 28th day of April , 1969, by the following vote, to wit: • AYES, COUNCILMEN: McInnis, Shelton, Parsons, Marshall, Rogers, Hirth, Gruber NOES, COUNCILMEN: None ATTEST: City • -er —_ED AS THEINAL s � � •' \ . /4PTY-tL ERX OFfTHE CITY OF NEW440ftr BEACH Ul ABSENT COUNCILMEN: None -13- TLW:mh 4/7/69