§ 612.07 EXPIRATION OF LICENSE.

   All licenses shall expire on January 1.

(Prior Code, § 612.07)

§ 612.08 APPLICATION REQUIRED.

   (1)   Contents. An application form provided by the City Clerk must be completed by every applicant for a new license or for renewal of an existing license. Every new applicant must provide all the following information:

      (a)   If the applicant is a natural person:

         1.   The name, place and date of birth, street resident address and phone number of applicant and spouse and any business the applicant or spouse has been engaged in over the past five years; also, last five years of employment history; criminal history of spouse, including misdemeanor traffic offenses and the spouse’s financial background for the past five years;

         2.   Whether the applicant is a citizen of the United States or resident alien;

         3.   Whether the applicant has ever used or has been known by a name other than the applicant’s name, and if so, the name or names used and information concerning dates and places used;

         4.   The name of the business if it is to be conducted under a designation, name or style other than the name of the applicant and a certified copy of the certificate as required by M.S. § 333.01, as it may be amended from time to time;

         5.   The street address at which the applicant has lived during the preceding five years;

         6.   The type, name and location of every business or occupation in which the applicant has been engaged during the preceding five years and the name(s) and address(es) of the applicant’s employer(s) and partner(s), if any, for the proceeding five years;

         7.   Whether the applicant has ever been convicted of a felony, crime or violation of any ordinance other than a traffic ordinance. If so, the applicant must furnish information as to the time, place and offense of all the convictions;

         8.   The physical description of the applicant;

         9.   Applicant’s current personal financial statement and true copies of the applicant’s federal and state tax returns for the two years prior to application; and

         10.   If the applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required in division (1)(a)1. through (1)(a)8. of this section.

      (b)    If the applicant is a partnership:

         1.   The name(s) and address(es) of all general and limited partners and all information concerning each general partner required in division (1) of this section;

         2.   The name(s) of the managing partner(s) and the interest of each partner in the licensed business;

         3.   A true copy of the partnership agreement shall be submitted with the application. If the partnership is required to file a certificate as to a trade name pursuant to M.S. § 333.01, as it may be amended from time to time, a certified copy of the certificate must be attached to the application;

         4.   A true copy of the federal and state tax returns for partnership for the two years prior to application; and

         5.   If the applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required in division (1)(a)1. through (1)(a)8. of division (1)(a) of this section.

      (c)   If the applicant is a corporation or other organization:

         1.   The name of the corporation or business form and if incorporated the state of incorporation;

         2.   A true copy of the certificate of incorporation, articles of incorporation or association agreement and by-laws shall be attached to the application. If the applicant is a foreign corporation, a certificate of authority as required by M.S. § 303.06, as it may be amended from time to time, must be attached;

         3.   The name of the manager(s) or other person(s) in charge of the business and all information concerning each manager, proprietor or agent required in division (1)(a)1. through (1)(a)9. of this section; and

         4.   A list of all persons who control or own an interest in excess of 5% in the organization or business form or who are officers of the corporation or business form and all information concerning the persons required in division (1)(a) above. This division (1)(c)4., however, shall not apply to a corporation whose stock is publicly traded on a stock exchange and is applying for a license to be owned and operated by it.

      (d)   For all applicants:

         1.   Whether the applicant holds a current pawnbroker, precious metal dealer or secondhand goods dealer license from any other governmental unit;

         2.   Whether the applicant has previously been denied, or had revoked or suspended, a pawnbroker, precious metal dealer or secondhand goods dealer license from any other governmental unit;

         3.   The location of the business premises;

         4.   If the applicant does not own the business premises, a true and complete copy of the executed lease;

         5.   The legal description of the premises to be licensed;

         6.   Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid, and if not paid, the years and amounts that is unpaid;

         7.   Whenever the application is for premises either planned or under construction or undergoing substantial alternation, the application must be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed;

         8.   A statement as to whether or not the applicant or the person managing the business has been convicted of any crime, misdemeanor or violation of any municipal ordinance, involving activities licensed under this chapter, the nature of the offense and the punishment or penalty assessed therefore. Criminal history data should be verified by the Police Department utilizing the Minnesota Criminal Justice Information System. The applicant must consent to allow the criminal history checks to be completed, applicant’s failure to provide consent may disqualify the applicant from obtaining the requested license; and

(Am. Ord. 20-01, passed 10-8-2001)

         9.   Any other information as the City Council or issuing authority may require.

   (2)   Registration of Class C secondhand goods dealers. Persons engaged in the business of a Class C secondhand goods dealer are exempt from the licensing requirements of this chapter, but shall register with the Chief of Police on forms provided for by the city. The registration shall be on going except that a person shall file a new registration upon a change of ownership, management, telephone number or location of the business.

   (3)   New manager.

      (a)   When a licensee places a manager in charge of a business, or if the named manager(s) in charge of a licensed business changes, the licensee must complete and submit the appropriate application, on forms provided by the City Clerk within 14 days. The application must include all appropriate information required in this section.

      (b)   Upon completion of an investigation of a new manager, the licensee must pay an amount equal to the cost of the investigation to assure compliance with this chapter. If the investigation process is conducted solely within the state, the fee shall be as established in the city fee schedule. If the investigation is conducted outside the state, the issuing authority may recover the actual investigation costs not exceeding $10,000.

   (4)   Application execution. All applications for a license under this chapter must be signed and sworn to under oath or affirmation by the applicant. If the application is that of a natural person, it must be signed and sworn to by the person; if that of a corporation, by an officer thereof; if that of a partnership, by one of the general partners; and if that of an unincorporated association, by the manager or managing officer thereof.

   (5)   Investigation. The police license investigator must investigate into the truthfulness of the statements set forth in the application and shall endorse the findings thereon. The applicant must furnish to the police license investigator the evidence as the investigator may reasonably require in support of the statements set forth in the application.

   (6)   Public hearing. (Pawnbroker, precious metal dealer and Class A secondhand goods dealer.) The City Council shall conduct a hearing on the license application within a reasonable period following receipt of the issuing authorities report and recommendation regarding the application. At least ten days in advance of the hearing on the application, the issuing authority shall call as notice of a hearing to be published in the official newspaper for the city, setting forth the day, time and place of the hearing, the name of the applicant, the premises where the business is to be conducted, and the type of license which is sought. At the hearing, opportunity shall be given to any person to be heard for or against the granting 59 of the license. Additional hearings on the application may be held if the City Council deems additional hearings necessary. After the hearing or hearings on the application, the Council may, in its discretion, grant or deny the application.

   (7)   Class B secondhand goods dealer. A Class B secondhand goods dealer license shall be issued by the City Clerk upon a positive recommendation from the Chief of Police. In the event the Chief of Police recommends denial, the application shall be submitted to the City Council for a disposition in the same manner as an application for a Class A secondhand goods dealer license. Failure of the City Clerk to grant the application or submit it to the Council within 30 days after receipt of the application by the Clerk shall be deemed a granting of the license.

   (8)   Persons ineligible for a license. No licenses under this chapter will be issued to an applicant who is a natural person, a partnership if the applicant has any general partner or managing partner, a corporation or other organization if the applicant has any manager, proprietor or agent in charge of the business to be licensed, if the applicant:

      (a)   Is a minor at the time that the application is filed;

      (b)   Has been convicted of any crime directly related to the occupation licensed as prescribed by M.S. § 364.03, Subd. 2, as it may be amended from time to time, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a licensee under this chapter as prescribed by M.S. § 364.03, Subd. 3, as it may be amended from time to time;

      (c)   Is not of good moral character or repute;

      (d)   The application is incomplete or the investigation reveals that the applicant has not been truthful in the application process or is otherwise not qualified for a license; or

      (e)   Holds an intoxicating liquor license under this code.

(Prior Code, § 612.08)

Cross-reference:

   City fee schedule, see § 218.01

§ 612.09 BOND REQUIRED.

   Before a license will be issued, every applicant must submit a $10,000 bond on the forms provided by the City Clerk. All bonds must be conditioned that the principal will observe all laws in relation to pawnbrokers and the like and will conduct business in conformity thereto, and that the principal will account for and deliver to any person legally entitled any goods which have come into the principal's hand through the principal's business as a pawnbroker, or the like, or in lieu thereof, will pay the reasonable value in money to the person. The bond shall contain a provision that no bond may be canceled except upon 30 days written notice to the city, which shall be served upon the City Clerk.

(Prior Code, § 612.09)

§ 612.10 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 license investigator:

   (1)   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 an item;

   (2)   The purchase price, amount of money loaned upon or pledged therefor;

   (3)   The maturity date of the transaction and the amount due, including monthly and annual interest rates and all pawn fees and charges;

   (4)   Date, time and place the item of property was received by the licensee;

   (5)   Full name, residence address, residence telephone number and 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)   The identification number and state of issue from any of the following forms of identification of the seller:

      (a)   Current Minnesota driver's license;

      (b)   Current Minnesota identification card; or

      (c)   Current photo identification card issued by another state.

   (7)   The signature of the person identified in the transaction;

   (8)   Effective 60 days from the date of notification by the police license investigator of acceptable video standards, but no sooner than October 1, 2000, the licensee must also take a color photograph or color video recording of:

      (a)   Each customer involved in a billable transaction; and

      (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 in length by two inches in width and must be maintained in a manner that the photograph can be readily matched and correlated with all other records of the transaction to which they relate. The 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 months.

   (9)   Digitized photographs. Effective 60 days from the date of notification by the police license investigator, but no sooner than October 1, 2000, Class A licensees must, and Class B licensees may, fulfill the color photograph requirements in division (8) 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 division (8);

   (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; and

   (11)   Inspection of records. The records must at all reasonable times be open to inspection by the Police Department or City Clerk's office. Data entries shall be retained for at least three years from the date of transaction. Entries of required digital images shall be retained a minimum of 90 days.

(Prior Code, § 612.10)

§ 612.11 DAILY REPORTS TO POLICE.

   (1)   Method. Licensees must provide to the Police Department the information required in § 612.10 (1) through (6), in writing, on forms approved by the business day following the date of the transaction. The licensee must display a sign of sufficient size, and in a conspicuous place in the premises, so as to inform all patrons that all transactions are reported to the Police Department daily. Effective 60 days from the date of notification by the police license investigator, but no sooner than 90 days after the police license investigator provides licensee with computerized record standards, licensees must submit every reportable transaction to the Police Department daily in the following manner.

      (a)   Class A licensees must, and Class B licensees may, provide to the Police Department the information required in § 612.10(1) through (6), by transferring it from their computer to the Police Department via modem (computer needs and capabilities will be determined by the Chief of Police or designee). 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 a dial-callback protocol or other 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.

      (b)   Class A and B secondhand dealers shall maintain records and provide those records to the Police Department pursuant to a records retention and reporting plan approved by the Chief of Police prior to the issuance of a license.

      (c)   Class C secondhand dealers shall report transactions to the Police Department on forms provided by the issuing authority.

   (2)   Billable transaction fees. Licensees, regardless of class, will be charged for billable transactions at the current rate for the medium by which they were reported to the Police Department except:

      (a)   If a Class A licensee or a Class B licensee who has consistently reported via modem, 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 video tape(s) for that date, by 12:00 noon the next business day, and must be charged at the modem rate for billable transactions;

      (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 division(2)(a), and must be charged at the modem rate for transactions through the close of the first business day following the failure, and at the manual rate for all subsequent billable transactions until the error is corrected;

      (c)   If the problem is determined to be outside the licensee's system, the licensee must provide the required reports in detail in division (2)(a) and will be billed at the modem rate for billable transactions until the error is corrected;

      (d)   If a Class A licensee or a Class B licensee who has consistently reported via modem, is unable to capture, digitize or transmit the photographs required in § 612.10(8) and (9), the licensee must immediately take all required photographs with a still camera, immediately develop the pictures, cross-reference the photographs to the correct transaction, and deliver them to the Police Department by 12:00 noon the next business day. Billable transactions will be charged at the modem rate for transactions through the close of the first business day following the failure and at the manual rate for all subsequent billable transactions until the error is corrected;

      (e)   Second and subsequent occurrences of circumstances detailed in divisions (2)(a), (2)(b) or (2)(d), within any six consecutive months, will be charged at the manual rate for billable transactions until the error is corrected; or

      (f)   Divisions (2)(a) through (e) notwithstanding, the police license investigator may, upon presentation of extenuating circumstances, extend the period that a qualifying licensee is billed at the modem rate for billable transactions.

(Prior Code, § 612.11)

§ 612.12 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 years. The receipt must include at least the following information:

   (1)   The name, address(es) and telephone number of the licensed business;

   (2)   The date and time the licensee received the item;

   (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 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, residence address, residence telephone number and date of birth of the pledger or seller;

   (10)   The identification number and state of issue from any of the following forms of identification of the seller:

      (a)   Current Minnesota driver's license;

      (b)   Current Minnesota identification card; or

      (c)   Current photo driver's license or identification card issued by another state.

   (11)   Description of the pledger including approximate sex, height, weight, race, color of eyes and color of hair;

   (12)   The signature of the seller or pledger; and

   (13)   All printed statements required by M.S. § 325J.04, Subd. 2, as it may be amended from time to time or any other applicable statutes.

(Prior Code, § 612.12)

§ 612.13 REDEMPTION PERIOD.

   Any person pledging, pawning or depositing an item for security must have a minimum of 90 days from the date of that transaction to redeem the item before it may be forfeited and sold. During the 90-day holding period, items may not be removed from the licensed location except as provided in § 612.20. 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 investigator. Written authorization for release of property to persons other than original pledger must be maintained along with original transaction record in accordance with § 612.10(10).

(Prior Code, § 612.13)