(a) Customer receipt required. At the time of making a , the shall provide a receipt to the pledgor or seller identified the . The following shall be printed on all customer receipts:
(1) The statement that “Any personal property pledged to a within this state is subject to sale or disposal when there has been no payment made on the account for a period of not less than 60 days past the date of the pawn transaction, renewal or extension; no further notice is necessary. There is no obligation for the pledgor to redeem .”;
(2) The statement that “The pledgor of this item attests that it is not stolen, it has no liens or encumbrances against it, and the pledgor has the right to sell or pawn the item.”;
(3) The statement that “This item is redeemable only by the pledgor to whom the receipt was issued, or any identified in a written and notarized authorization to redeem the property identified in the receipt, or a identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor. Written authorization for release of property to other than the original pledgor must be maintained along with the original transaction record.”;
(4) The name, address and telephone number of the licensed business;
(5) The date and time the item was received by the licensee;
(6) Whether the item was pawned or sold, or the nature of the transaction;
(7) 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;
(8) The signature or unique identifier of the licensee or employee that conducted the transaction;
(9) The amount advanced to the pledgor or paid to the seller;
(10) The monthly and annual interest rates, including all pawn fees and charges;
(11) The last regular day of business by which the item must be redeemed by the pledgor without risk that the item will be sold, and the amount necessary to redeem the pawned item on that date;
(12) The full name, residence address, residence telephone number and date of birth of the pledgor or seller;
(13) 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 Minnesota identification card; or
(C) Current valid photo driver’s license or identification card issued by another state.
(14) Description of the pledgor, including sex, height, weight, race, color of eyes and color of hair; and
(15) The signature of the seller or pledgor.
(b) Records. At the time of the licensee’s receipt of pledged or purchased goods within the limits of the city or outside the city limits when those goods are intended for sale, held for sale or offered for sale on the licensed premises, the licensee shall immediately record, using the English language, in an indelible ink or other indelible medium, in a book or journal, which has page numbers that are pre-printed, or in a computerized record approved by the , the following information:
(1) An accurate description of the item of property including, but not limited to, any trademark, identification number, serial number, model number, brand name or other identifying mark on such item;
(2) The nature of the transaction, such as pawn, trade, consignment or sale;
(3) The amount advanced to the pledgor or purchase price paid to the seller, asking price if consigned, or value attributed to the item if accepted in trade, for each item received;
(4) The date and time the item of property was received by the licensee;
(5) The monthly and annual interest rates, including all pawn fees and charges;
(6) The full name, address, telephone number, driver’s license or state identification card number, physical description including sex, height, weight, race, color of eyes and color of hair, and date of birth of the from whom the item of property was received;
(7) The last regular day of business by which the item must be redeemed by the pledgor without risk that the item will be sold and the amount necessary to redeem the pawned item on that date; and
(8) The full name of the employee conducting the transaction.
Each item received must be separately described and recorded notwithstanding that the items may have been received from the same customer at the same time. The shall maintain on the premises a record of all transactions of pledged or purchased goods for a period of three years. These records shall be a correct copy of the entries made of the pawned transactions. A must, upon request, provide to the appropriate law enforcement agency, License Section or their designee a complete record of pawn items.
(c) Inspection of records. The must make immediately available the record of all transactions during the licensee’s normal business hours and at all other reasonable times for inspection by the City Police Department or .
(d) Computerized daily reports to police; exception. At the close of each business day, the shall submit the information required by subsection (b) above to the City Police Department by transferring the information via computer modem or other approved electronic method, from the computer to the automated record system and terminal specified by the . who can establish to the that they conduct fewer than 400 transactions a year may provide the required information in writing by 12:00 noon the first business day following the date of the transaction.
(e) Police order to hold or confiscate property.
(1) Investigative hold. Whenever a law enforcement official from any agency notifies a licensee not to sell an item, the item shall not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the originating agency within 72 hours and shall remain in effect for 15 days from the date of initial notification, or until the investigative order is canceled, or until an order to hold/confiscate is issued by the Chief of Police or the Chief’s designee.
(2) Order to hold. Whenever the Chief of Police or the Chief’s designee notifies a licensee not to sell an item, the item shall not be sold or removed from the licensed premises until authorized by the Chief of Police or the Chief’s designee. An order to hold shall expire 90 days from the date it is issued, unless the Chief of Police or the Chief’s designee determines the hold is still necessary and notifies the licensee in writing to continue the hold.
(3) Order to confiscate. If an item is identified as stolen or evidence in a criminal case, the Chief of Police or Chief’s designee may:
(a) Physically confiscate and remove the item from the premises, pursuant to a written order from the Chief of Police or the Chief’s designee; or
(b) Place the item on hold indefinitely, in which case the item shall not be sold or removed from the premises without the written order of the Chief of Police or the Chief’s designee.
When an item is confiscated, the 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 Chief’s designee shall so notify the licensee.
(f) Prohibition against sale or removal of property.
(1) Pawned items. Any pledging, pawning or depositing an item for security must have a minimum of 60 days from the date of that transaction to redeem the item before it may be forfeited and sold. During the 60-day redemption period or any extensions of the pawn transaction, items may not be removed from the premises or sold, except as provided in § 14.295.03 of this code. The date by which an item of property that has been pawned must be redeemed by the pledgor without risk that the item will be sold shall be a day on which the is open for regular business. Licensees are prohibited from redeeming any item to anyone other than the to whom the receipt was issued or, to any identified in a written and notarized authorization to redeem the property identified in the receipt, or to a identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor. Written authorization for release of property to other than original pledgor must be maintained along with original transaction record in accordance with this Division M. An individual may redeem an item pawned 72 hours after the item was received on deposit by the excluding Sundays and state legal holidays.
(2) Purchased items. Any item sold to a shall not be sold or otherwise removed from the premises for 30 days after the date of the sale, unless the item purchased is a precious metal subject to a 14-day hold.
(g) Hours of operation. No shall keep the open for the transaction of business on any day of the week before 6:00 a.m. or after 10:00 p.m.
(h) Prohibited transactions. No licensee, clerk, agent or employee thereof shall purchase or receive any personal property of any nature on deposit or pledge under the following circumstances:
(1) Unless the property is delivered in- by one who signs a statement attesting to be the true owner of the property and that the property is free of all claims and liens;
(2) From any who fails to present proper identification in the form of a current valid Minnesota driver’s license, a current valid Minnesota identification card or a current valid photo driver’s license or photo identification card issued by another state or a province of Canada;
(3) From any under the age of 18 years;
(4) From any who is obviously intoxicated, chemically impaired or incompetent;
(5) Whenever the item of property contains an altered or obliterated serial number, operation identification number or otherwise altered so as to remove, alter or obliterate a unique identifier of the property; and
(6) No may pawn, pledge, sell, consign, leave or deposit any article of property not their own, nor shall any pawn, pledge, sell, consign, leave or deposit the property of another, whether with permission or without, nor shall any pawn, pledge, sell, consign, leave or deposit any article of property in which another has a security interest, with any licensee.
(i) Inspection of items. The shall, at all times during the term of the license, allow the City Police Department or to enter the premises where the business is located, including all approved off-site storage facilities, during normal business hours and at all other reasonable times, for the purpose of inspecting such premises and inspecting the items, ware and merchandise therein for the purpose of locating items suspected or alleged to have been stolen or otherwise improperly disposed of and to verify compliance with this Division M and applicable state laws.
(j) License display and signage. A license issued under this Division M must be posted in a conspicuous place in the premises for which it is used. In addition, a sign must be conspicuously posted on each licensed premises stating at least the following:
“To pawn or sell property:
A. You must be at least 18 years of age;
B. You must be the true owner of the property;
C. The property must be free of all claims and liens;
D. You must present valid photo identification;
E. Violation of any of these requirements is a crime;
F. All transactions are reported to police daily.”
(k) Maintenance of order. A licensee under this Division M shall be responsible for the conduct of the business being operated and shall maintain conditions of order.
(l) Gambling. No licensee under this Division M may keep, possess or operate, or permit the keeping, possession or operation on the licensed premises of dice, slot machines, roulette wheels, punchboards, blackjack tables or pinball machines which return coins or slugs, chips or tokens of any kind, which are redeemable in merchandise or cash. No gambling equipment authorized under M.S. Chapter 349, as it may be amended from time to time, may be kept or operated and no raffles may be conducted on the licensed premises and/or adjoining rooms. The purchase of lottery tickets may take place on the licensed premises as authorized by the director of the lottery pursuant to M.S. Chapter 349, as it may be amended from time to time.
(m) Photographs and videos of customers and property.
(1) and property to be photographed. All licensees shall take a color photograph or color video recording of each customer involved in a and every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed.
(2) Photograph requirements. If a photograph is taken, it must be at least two inches in length by two inches in width and must be maintained in such a manner that the photograph can be readily matched and correlated with all other records of the transaction to which they relate. Such photographs must be available to the Chief of Police, or the Chief’s designee, upon request. The major portion of the photograph must include an identifiable front facial close-up of the who pawned or sold the item. Items photographed must be accurately depicted. The licensee must inform the that he or she is being photographed by displaying a sign of sufficient size in a conspicuous place in the premises.
(3) Video requirements. If a video photograph is taken, the video camera must zoom in on the pawning or selling the item so as to include an identifiable close-up of that face. Items photographed by video must be accurately depicted. Video photographs must be electronically reference by time and date so they can be readily matched and correlated with all other records of the transaction to which they relate. The licensee must inform the that he or she is being videotaped by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed videotape for three months.
(4) Digital images. Effective 120 days from the date of notification by the licensees must fulfill the color photograph requirements by submitting them as digital images, in a format specified by the , electronically cross-referenced to the they are associated with.
(5) Electronic reporting problems. If a licensee is unable to capture, digitize or video record the photographs required in this section, the licensee shall immediately take all required photographs with a still camera, immediately develop the pictures and cross-reference the photographs to the correct transaction.
(n) Licensed premises. A license issued under this Division M is effective only for the compact and contiguous space or premises specified in the approved license application. A separate license is required for each place of business.
(o) Change in ownership. Any change, directly or beneficially, in the ownership of any license shall require the application for a new license and the new owner must satisfy all current eligibility requirements.
(p) Effect of nonredemption.
(1) A pledgor shall have no obligation to redeem or make any payment on a pawn transaction. not redeemed within at least 60 days of the date of the pawn transaction, renewal or extension shall automatically be forfeited to the , and qualified right, title, and interest in and to the goods shall automatically vest in the .
(2) The right, title and interest in the under subsection (p)(1) above is qualified only by the pledgor’s right, while the remain in possession of the and not sold to a third party, to redeem the goods by paying the loan plus fees and/or interest accrued up to the date of redemption.
(q) Permitted charges. A may charge only interest rates and fees allowed by M.S. § 325J.07, as it may be amended from time to time, and a schedule of charges must be posted on the premises in a place clearly visible to the general public.
(r) Risk of loss. In the event are lost or damaged while in possession of the , the shall compensate the pledgor, in cash or replacement of goods acceptable to the pledgor, for the fair market value of the lost or damaged goods. Proof of compensation shall be a defense to any prosecution or civil action.
(s) Pawning of motor vehicle titles.
(1) In addition to the other requirements of state law, a who holds a title to a motor vehicle as part of a pawn transaction shall, pursuant to M.S. § 325J.095, as it may be amended from time to time:
(A) Be licensed as a used motor vehicle dealer under M.S. § 168.27, as it may be amended from time to time, and post such license on the premises;
(B) Verify that there are no liens or encumbrances against the motor vehicle with the department of public safety;
(C) Verify that the pledgor has automobile insurance on the motor vehicle as required by law; and
(D) A may not sell a motor vehicle covered by a pawn transaction until 90 days after recovery of the motor vehicle.
(2) A pawn transaction that involves holding only the title to property is subject to M.S. Chapter 168A or 336, as they may be amended from time to time.
(t) Label required. Licensees must attach a label to every item at the time it is pawned, purchased or received in inventory from any . 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 reused.
(u) Display and storage of firearms. As a condition of licensure, the display and storage of all firearms must be approved by the City Police Department and must be compliant with applicable federal and state security standards, including, but not limited to, M.S. § 624.7161, and Minnesota Rules Chapter 7504. Firearms may be sold only when allowed in a particular location by the Zoning Ordinance.
(v) Inactive license. Any licensed who fails to conduct any pawn transactions for a period of six consecutive months shall be sent by the a notice of hearing to show cause why the license should not be revoked by the City Council. At that hearing, the City Council shall determine the status of the operations and if satisfactory proof of intent to conduct business under the license is not demonstrated by the licensee, the City Council may revoke the license.
(1958 Code, § 154.01) (Ord. 37, passed 8-7-1961; Ord. 41, passed 9-6-1961; Ord. 92-36, passed 7-27-1992; recodified by Ord. 95-13, passed 8-7-1995; Ord. 97-16, passed 5-5-1997; added by Ord. 98-27, passed 6-15-1998; Ord. 2007-18, passed 5-7-2007; Ord. 2011-2, passed 1-24-2011; Ord. 2016-28, passed 11-21-2016)