A. 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. Description Of Each Item: 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. Purchase Price, Loan Or Pledge Amount: The purchase price, amount of money loaned upon, or pledged therefor.
3. Transaction Information: The maturity date of the transaction and the amount due, including monthly and annual interest rates and all pawn fees and charges.
4. Transaction Identifiers: 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. Transaction identifiers must be consecutively numbered.
5. Personal Information: Full name, current residence address, current residence telephone number, date of birth and accurate description of the person from whom the item of the property was received, including: sex, height, weight, race, color of eyes and color of hair.
6. Forms Of Identification: 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;
c. Current valid photo identification card issued by another state or a province of Canada.
7. Signature: The signature of the person identified in the transaction.
8. Color Photograph Or Color Video Recording: 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 affixed.
If a photograph is taken, it must be at least two inches (2") in length by two inches (2") 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 person who pawned or sold the item. Items photographed must be accurately depicted. The licensee must inform the person that he or she is being photographed by displaying a sign of sufficient size in a conspicuous place in the premises. 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 photographed by video must be accurately depicted. Video photographs must be electronically referenced 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 person that he or she is being videotaped orally and by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed videotape for three (3) months, and furnish it to the police department upon request.
9. Digitized Photographs: Effective sixty (60) days from the date of notification by the police department licensees must fulfill the color photograph requirements in subsection A8 of this section by submitting them as digital images, in a format specified by the issuing authority, electronically cross referenced to the reportable transaction they are associated with. Notwithstanding the digital images may be captured from required video recordings, this provision does not altar or amend the requirements in subsection A8 of this section.
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.
B. Inspection Of Records: The pawnbroker or precious metal dealer shall make available the information required in subsection A of this section at all reasonable times for inspection by the Lakeville police department or issuing authority. 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.
C. Disposition Of Articles:
1. When an article of pawned or pledged property is redeemed from a licensee, the records shall contain an account of such redemption with the date, interest charges accrued, and the total amount for which the article was redeemed.
2. When an article of purchased or forfeited property is sold or disposed of by a licensee and the licensee receives one hundred dollars ($100.00) or more in the payment thereof, the records shall contain an account of such sale with the date, the amount for which the article was sold, and the full name, current address, and telephone number of the person to whom sold.
D. Daily Reports To Police:
1. Submit Reportable Transactions: Licensees must submit every reportable transaction to the police department daily in the following manner:
a. Licensees must provide to the police department all information required in subsections A1 through A6 of this section 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 issuing authority using procedures that address security concerns of the licensees and the issuing authority. The licensee must display a sign of sufficient size, in a conspicuous place in 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:
a. 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 twelve o'clock (12:00) noon the next business day;
b. If the problem is determined to be in the licensee's system and is not corrected by the close of the first business day following the failure, the licensee must provide the required reports as detailed in subsection D2a of this section, and must be charged a fifty dollar ($50.00) reporting failure penalty, daily, until the error is corrected; or
c. If the problem is determined to be outside the licensee's system, the licensee must provide the required reports in subsection D2a of this section, and resubmit all such transaction via modem when the error is corrected;
d. If a licensee is unable to capture, digitize or transmit the photographs required in subsection A9 of this section, the licensee must immediately take all required photographs with a still camera, cross reference the photographs to the correct transaction, and make the pictures available to the police department upon request;
e. Regardless of the cause or origin of the technical problems that prevented the licensee from uploading their reportable transactions, upon correction of the problem, the licensee shall upload every reportable transaction from every business day the problem had existed;
f. Subsections D2a through D2c of this section notwithstanding, the police department may, upon presentation of extenuating circumstances, delay the implementation of the daily reporting penalty.
E. 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 following information:
1. The name, address and telephone number of the licensed business.
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 transaction.
6. The amount advanced or paid.
7. The monthly and annual 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, current residence address, current residence telephone number, and date of birth of the pledger or seller.
10. The identification number and state of issue from an acceptable form of identification.
a. Current valid Minnesota driver's license;
b. Current valid Minnesota identification card;
c. Current valid photo driver's license or identification card issued by another state or a province of Canada.
11. Description of the pledger or seller including approximate sex, height, weight, race, color of eyes and color of hair.
12. The signature of the pledger or seller.
13. All printed statements as required by Minnesota statutes 325J.04, subdivision 2 or any other applicable statutes. (Ord. 716, sec. 1, 7-1-2002)
F. Redemption Period: Any person pledging, pawning or depositing an item for security must have a minimum of sixty (60) days from the date of that transaction to redeem the item before it may be forfeited and sold. During the sixty (60) day holding period, items may not be removed from the licensed location except as provided in subsection 3-15-14A of this chapter. 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 approval of the police license inspector. Written authorization for release of property to persons other than original pledger must be maintained along with original transaction record in accordance with subsection A10 of this section. (Ord. 881, 7-5-2011)
G. 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 seventy two (72) hours after the item was received on deposit, excluding Sundays and legal holidays.
H. Police Order To Hold Property:
1. Investigative Hold: Whenever a 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 subsection H2 of this section, whichever comes first.
2. Order To Hold: Whenever the chief of police, or the chief's 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 chief's designee. The order to hold shall expire ninety (90) days from the date it is placed unless the chief of police or the chief's 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 chief's designee may:
a. Physically confiscate and remove it from the shop, pursuant to a written order from the chief or the chief's designee, or
b. Place the item on hold or extend the hold as provided in subsection H2 of this section, and leave it 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 chief's designee shall so notify the licensee.
I. Label Required: Licensees must 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 reused.
J. License Display: A license issued under this chapter must be posted in a conspicuous place in the premises for which it is used. The license issued is only effective for the compact and contiguous space specified in the approved license application.
K. Responsibility Of Licensee: A licensee under this chapter shall be responsible for the conduct of the business being operated and shall maintain conditions of order. The conduct of agents or employees of a licensee, engaged in performance of duties for the licensee, shall be deemed the conduct of the licensee.
L. Gambling: No licensee under this chapter 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 Minnesota statutes, chapter 349, 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 Minnesota statutes, chapter 349A.
M. Penalty For Property Owner: It is unlawful for any person who owns or controls real property to knowingly permit it to be used for pawnbrokering or dealing in precious metals without a license.
N. Premises: All property deposited, left, pledged, pawned, or held for sale must be stored in an enclosed facility and may not be stored outside of the premises. The city may, however, permit the licensee to designate one off premises locked and secured facility in which the licensee may store only cars, boats, and other motorized vehicles. The licensee shall permit immediate inspection of the facility at any time during business hours by the city. All provisions in this section regarding record keeping and reporting shall apply to oversized items. All property shall be stored in compliance with zoning and/or fire regulations and in an orderly manner. The premises shall also be equipped with an operational security alarm.
O. Required Signage: All licensees shall by adequate signage and separate written notice inform persons seeking to pawn, pledge, sell, leave, or deposit articles of property with the licensee of the foregoing requirements.
1. For the purpose of this subsection, "adequate signage" shall be deemed to mean at 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 PAWN OR SELL PROPERTY:
YOU MUST BE AT LEAST 18 YEARS OF AGE.
YOU MUST BE THE TRUE OWNER OF THE PROPERTY.
THE PROPERTY MUST BE FREE OF ALL CLAIMS AND LIENS.
YOU MUST PRESENT VALID PHOTO IDENTIFICATION.
VIOLATION OF ANY OF THESE REQUIREMENTS IS A CRIME.
2. For the purpose of this subsection, "separate written notice" shall be deemed to mean either the receipt, as required in subsection E of this section, or a printed form, incorporating a statement to the effect that the person pawning, pledging, selling, leaving, or depositing the article is at least eighteen (18) years of age; is the true owner of the article; and that the article is free of all claims and liens; which is acknowledged by way of signature of the person pawning, pledging, selling, leaving, or depositing the article. (Ord. 716, sec. 1, 7-1-2002)