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The purpose of this subchapter is to prevent pawnshops, secondhand dealers, junk dealers, and scrap metal dealers and similar businesses from being used as facilities for the commission of crime. The City Council finds that the pawn industry has outgrown the City's current ability to effectively or efficiently identify crime activity related to pawnshops, scrap metal, second hand dealers, and precious metal dealers can also be compromised by others in the commission of crimes. To assure that such businesses comply with basic consumer protection standards and to protect the public health, safety and general welfare of the citizens of the City, the City Council therefore finds consumer protection regulation is warranted in transactions involving pawnbrokers, secondhand dealers, and precious metal dealers. To help law enforcement better regulate current and future pawnshops, secondhand dealers, junk dealers, and scrap metal dealers and similar businesses, decrease and stabilize costs associated with regulation of these businesses, and increase identification of criminal activities in these businesses through the timely collection and sharing of pawn transaction information, this subchapter also implements and establishes the required use of the Leads Online, Automated Pawn System (APS), or similar system.
(Ord. No. 15-2011, 12-6-11)
The following words and terms when used in this subchapter shall have the following meanings unless the context clearly indicates otherwise.
“CONSIGNMENT.” A transaction in which a person/bailer delivers goods to a merchant for the purpose of sale and the merchant acts as the bailee or agent for the goods and markets such goods for sale on behalf of the person/bailor. The merchant does not acquire ownership or title to such goods at any time, but may receive a commission upon sale of the consigned goods.
“JUNK DEALER.” Any person engaged in the business of operating a junk yard.
“JUNK YARD.” Any land, building, structure, enclosure, or site where waste materials are purchased, collected, or processed for the purpose of resale, barter, or exchange.
“LICENSEE.” Any person or entity operating as a junk dealer, scrap metal dealer, pawn shop, secondhand dealer or secondhand store, as defined in this chapter.
“MINOR.” Any person under 18 years of age.
PAWNBROKER/PAWNSHOP. Any premises, entity or individual who loans money on deposit of personal property, or who deals in the purchase of personal property on the condition of selling the property back again at a stipulated price, or who makes a public display at his/her/its place of business of the sign generally used by pawnbrokers to denote their business, or who publically exhibits a sign advertising money to loan on personal property or deposit.
“SCRAP METAL.” Any waste and/or new metal products, including but not limited to, old, unwanted metal, parts of vehicles, building supplies, wrought iron, wiring, piping, copper tubing, aluminum (except aluminum cans), steel, and surplus materials.
“SCRAP METAL DEALER.” Any person or entity engaged in the business of purchasing and/or selling scrap metal.
“SCRAP YARD.” Any premises where a business or entity is located that deals in the purchase and sale of scrap, including but not limited to recycling operations.
“SECONDHAND DEALER.” Any person or entity engaged in the business of selling used automobile parts or other used motor vehicle parts.
“SECONDHAND STORE.” Any premises or individual involved in the retail sales of previously used items, such as appliances, refrigerators, stoves, power tools, athletic equipment, washing machines, and dryers, and previously used electronics, such as televisions, computers, cellular phones, portable music devices and stereos. This definition includes stores or other entities that are sometimes referred to as "pawn shops," but excludes used clothing stores, Goodwill Industries, Red Cross, and other charitable organizations.
(Ord. No. 15-2011, 12-6-11)
No person shall engage in the business of junk dealer, scrap metal dealer, pawn shop, secondhand dealer or secondhand store, as defined in §60.601, without first having secured all licenses required for the operation of such a business from the City of Berea. No applicant shall be eligible for a license if he/she/it is delinquent or in default of an obligation to pay a tax, license fee, fine, lien or other financial obligation to the City of Berea.
(Ord. No. 15-2011, 12-6-11)
Every person to whom a city license is granted to carry on the business of a pawnbroker shall annually execute and deliver to the city a bond with good and sufficient surety in the penal sum of $1,000.00. The bond shall be conditioned that the pawnbroker will conduct the business in compliance with the provisions of KRS 226.030 to 226.050, and the provisions of this chapter.
(Ord. No. 15-2011, 12-6-11)
Any person or entity subject to this chapter shall make a daily register with LeadsOnline (Law Enforcement Automated Database Search) or a similar database approved by the Berea Police Department of every purchase or exchange involving pawned items or the purchase of scrap metal or secondhand items. The report shall contain the information set forth in § 60.605. The daily report shall be transmitted electronically to the Chief of Police or his or her designee each day by 11:00 a.m. for all transactions which took place during the previous 24 hours preceding each report.
(A) All junk dealers, scrap metal dealers, pawn shops, secondhand dealers and secondhand stores shall keep a record of their transactions involving pawned items or the purchase of scrap metal, or secondhand items from third parties.
(B) The records mandated above shall contain the following information:
(1) Name, address, date of birth and phone number of seller; and
(2) Date and time of purchase/exchange of the item; and
(3) A detailed description of the article or articles purchased by the dealer or store, including any manufacturer's name, identification numbers, serial number, model number, and any identifying marks; and
(4) The signature of the scrap metal dealer, secondhand dealer, pawn shop operator or secondhand-store operator and the seller executed at the time of the purchase; and
(C) In addition to the records mandated above, the dealer/licensee shall also collect the information below related to each transaction and retain these records at the establishment where the transaction took place. The information set forth below shall be available upon request to the Berea Police Department, and all other law enforcement officers when in discharge or his or her official duties at any time during the dealer/licensee's regular business hours.
(1) A photocopy, or clear copy produced by a computer scanner, of the seller's driver's license, state identification card, or official United States military identification with photograph (collectively "photo identification"); and
(2) A digital photograph of the seller's face, or a still color print of the seller's face (a licensee that has scanned a clear copy of the seller's photo identification via computer that matches the current appearance of the seller shall be exempt from this provision); and
(3) A digital photograph of the article or articles purchased by the dealer or store (digital photographs are not necessary for compacted discs, VHS tapes or DVDs, or any item with a complete, readable serial number); and
(4) At the option of the dealer/pawn broker, the seller and the article or articles to be purchased may be depicted in the same digital photograph.
(D) The scrap metal dealer, secondhand dealer, pawn shop operator or secondhand-store operator shall maintain all records of purchase of items covered under this chapter for a minimum period of one year from the date of the transaction.
(Ord. No. 15-2011, 12-6-11)
(A) Articles purchased or exchanged by any person or entity licensed under this chapter, other than scrap metal, shall be retained by the purchaser for at least ten days before disposal or sale of the articles and kept in an accessible place at the business where the articles were purchased or received. A tag shall be attached to the articles in some visible and convenient place with the number written thereon, corresponding to the entry number on the report required by this chapter.
(B) Scrap metal purchased by a licensee shall be retained by the licensee for at least 72 hours before disposal.
(C) Any pawned item shall be retained by the licensee according to the timeframes set forth in KRS 226.050 or other applicable Kentucky statute.
(D) Licensees shall retain each and every article received by them in the same state or condition in which it was received, and all articles during any one day's transaction shall be kept separately and shall not be commingled with articles received during any other day's transactions. Furthermore, all articles shall be made available for examination by officers of the Berea Police Department, or any law enforcement officer, when in discharge of his or her official duties, at all reasonable times during the applicable hold period set forth above.
(Ord. No. 15-2011, 12-6-11)
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