CHAPTER 123: REGULATIONS GOVERNING PAWNBROKERS, SECONDHAND DEALERS, AND SECONDARY METALS RECYCLERS
Section
General Provisions
   123.01   Definitions
   123.02   Reserved
   123.03   License required
   123.04   License application
   123.05   License application review and general standards
   123.06   License revocation or suspension
Pawnbrokers
   123.07   Bond required
   123.08   Articles not to be received from minors; hours
   123.09   Register of loans and purchases
   123.10   Loan tickets; receipts of articles
   123.11   Sale of articles
   123.12   Louisville Metro Police Department may examine books and obtain data of purchases
   123.13   Report of articles received to be furnished to Louisville Metro Police Department
   123.14   Receipt for payment of money
Secondhand Dealers
   123.21   Compliance required
   123.22   Transaction record of purchases
   123.23   Transacting business with minors
   123.24   Louisville Metro Police Department powers to examine and obtain data of purchases
   123.25   Regulated property sale limitations
Secondary Metals Recyclers
   123.31   Compliance required
   123.32   Transaction record of purchases
   123.33   Transacting business with minors
   123.34   Louisville Metro Police Department powers to examine and obtain data of purchases
   123.35   Regulated property sale limitations
Additional General Provisions
   123.36   Requirements for the transfer of vehicles for scrap or parts recycling
   123.37   Impoundment of vehicles used to transport stolen metals
   123.38   Purchase of detached catalytic converter
   123.39   Possession of a detached catalytic converter
 
   123.98   Severability
   123.99   Penalty
GENERAL PROVISIONS
§ 123.01 DEFINITIONS.
   For purposes of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
   COMMODITY METALS. Any metal containing primarily brass, copper, copper alloy, aluminum, stainless steel, or magnesium, or any other metal trading on the commodity markets that trades in pounds, rather than ounces, except aluminum single serving beverage cans shall not be considered commodity metals.
   FERROUS METALS. Any metal consisting primarily of iron or steel. Ferrous metal includes alloys thereof, or an object containing ferrous metal or an alloy thereof.
   INVESTMENT PURPOSES. The purchase of regulated property by persons and the retention of that property in the same form as purchased, for resale to persons who are purchasing the property primarily as an investment.
   LOUISVILLE METRO. The geographic boundaries of Jefferson County, Kentucky.
   MOBILE DEALERS. Any person(s), business, or organization who loans money on deposit of gold, silver, precious metals, regulated property, and/or personal property, or who deals in the purchase of gold, silver, precious metals, and/or personal property, who advertises the loan or purchase of gold, silver, precious metals and/or personal property by any means including but not limited to signs, newspapers, radio and television ads, internet advertisements or postings, or any other media and in making said transactions utilizes a mobile vehicle as defined under this section.
   MOBILE VEHICLE. Any machine or device, on or by which any person or property is or may be transported or drawn on any street, which is powered by an internal combustion, diesel, or electric engine and/or motor, horsepower or which is powered by human power.
   MOTOR VEHICLE DEALERS. Any person who exclusively deals in new or used cars.
   NONFERROUS METAL. Metals not consisting primarily of iron or steel. Nonferrous metal shall include any nonferrous metal or an alloy thereof, or an object containing nonferrous metal or an alloy thereof.
   PAWNBROKER. Any person who loans money on deposit of personal property, or who deals in the purchase of personal property on condition of selling the property back again at a stipulated price, or who makes a public display at his place of business of the sign generally used by pawnbrokers to denote their business, or who publicly exhibits a sign advertising money to loan on personal property or deposit is a pawnbroker.
   PERSON. Any individual, partnership, corporation or other business entity.
   PRECIOUS METALS. Any metal that is valued for its character, rarity, beauty, quality, or worth, including, but not limited to gold, silver, platinum or any other such metals, whether as separate items or in combination as a piece of jewelry.
   REGULATED PROPERTY. The following property, which is used or secondhand:
      (1)   Ferrous, nonferrous and precious metals.
      (2)   Gems including but not limited to any gem that is valued for its character, rarity, beauty or quality, including diamonds, rubies, emeralds, sapphires or pearls, or any other such gems or stones, whether as a separate item or in combination as a piece of jewelry.
      (3)   Jewelry containing metals or gems including, but not limited to, rings, necklaces, pendants, earrings, brooches, bracelets, or chains.
      (4)   Watches, including, but not limited to, pocket watches, wrist watches, or stop watches.
      (5)   Sterling silver, including, but not limited to, flatware, candleholders, coffee and tea sets, ornamental objects, champagne flutes, wineglasses, or serving pieces such as platters, bowls, trays, water pitchers, open bakers, ice buckets, shell dishes or salt and pepper shakers.
      (6)   Audio equipment and accessories, including, but not limited to, tape players, tape decks or players, compact/digital disc players and compact discs, sound metering devices, tuners, amplifiers, speakers, transceivers, equalizers, receivers, phonographs, turntables, stereos, radios, clock radios, satellite radios, car stereos, car speakers, radar detectors, broadcasting equipment or citizen band radios/transceivers.
      (7)   Video and digital equipment and accessories, including, but not limited to, televisions, videotape or digital videodisc recorders, videotape or digital videodisc players, video cameras, video monitors, or video game consoles.
      (8)   Photographic and optical equipment and any accompanying bags, including, but not limited to, cameras, camera lenses, camera filters, camera motor drives, light meters, flash equipment, movie projectors, slide projectors, photography processing equipment, photography enlarging equipment, binoculars, telescopes, opera glasses, microscopes, surveying equipment, rifle scopes, spotting scopes, or electronic sighting equipment.
      (9)   Electrical office equipment, including, but not limited to, telefax machines, laser printers, copiers, duplicators, typewriters, calculators, cash registers, transcribers, dictaphones, computers, modems, monitors, or any computer equipment or accessories having uniquely identifiable parts.
      (10)   Power yard and garden tools, including, but not limited to, garden tractors, lawn mowers, rototillers, lawn sweepers, weed or brush cutters, edgers, trimmers, blowers, chippers, shredders, or ladders.
      (11)   Power equipment and tools, including, but not limited to, air hammers, air tools, nail guns, power staplers, power saws, power sanders, chainsaws, power planers, power drills, routers, lathes, joiners, shop vacuums, paint sprayers and accessory equipment, generators, air compressors, pressure washers or logging equipment.
      (12)   Automotive and hand tools, including, but not limited to, wrench sets, sockets sets, screw driver sets, pliers, vise grips, tool boxes, auto body hammers, jacks or timing lights.
      (13)   Telephones or telephone equipment, including, but not limited to, telecommunications cabling, office telephones, portable home telephones, mobile telephones, cellular telephones or answering machines.
      (14)   Sporting equipment, including, but not limited to, bicycles, golf clubs and bags, pool cues or cases, skis, ski boots, snowboards, fishing rods or reels, or skates.
      (15)   Outboard motors and boating accessories, including, but not limited to, outdrives, props, inboard engines, boat covers, tops or unlicensed boat trailers.
      (16)   Microwave ovens that are not intended for scrap or recycling.
      (17)   Motor vehicles, other than as set forth in subsection (19)(a), below.
      (18)   Gift cards, including, but not limited to those that can be used as a form of payment at convenience stores, gas stations, grocery stores, restaurants, retail stores, and online, or exchanged for money or other valuable consideration.
      (19)   Regulated property does not include any of the following property:
         (a)   Motor vehicles dealt in by motor vehicle dealers licensed under KRS 190.030 or purchased fully in accordance with § 123.36;
         (b)   Boats;
         (c)   Books, magazines, beta and VHS video tapes, and comic books;
         (d)   Glassware, objects d’art, or sports cards and sports memorabilia;
         (e)   Furniture;
         (f)   Refrigerators, stoves, washers, dryers and other similar major household appliances;
         (g)   Property purchased by a pawnbroker, secondhand dealer, or secondary metals recycler from another pawnbroker, secondhand dealer, or secondary metals recycler if the property is accompanied by proof of purchase from a verifiable business entity;
         (h)   Postage stamps, stamp collections and philatelic items;
         (i)   Clothing;
         (j)   Ferrous metals and nonferrous, including items listed in subsections (6) through (16) above, when purchased by a scrap processor and which items are in such condition that their highest and primary value is either in sale or transfer as scrap metal;
         (k)   Nonferrous or ferrous metals purchased by a scrap processor from a manufacturing, industrial or other commercial vendor that generates such metals in the ordinary course of business; and
         (l)   A total of five or less compact discs, digital video discs, Blu-Ray discs and/or video games purchased in any combination from a single seller in a 24-hour period.
   RESTRICTED METALS. Any of the following metal items:
      (1)   Manhole covers;
      (2)   Electric light poles or other utility poles;
      (3)   Guardrails;
      (4)   Street signs, traffic signs, or traffic signals;
      (5)   Whole road tiles;
      (6)   Metal items or pieces of metal items used to identify or decorate a burial site, cemetery, or mausoleum, including but not limited to monuments, markers, vases, benches, plagues, medallions, and any metal base or foundation on which those items rest or are mounted;
      (7)   Railroad equipment, including but not limited to a tie plate, signal house, control box, switch plate, e-clip, or rail tie junction;
      (8)   Condensing or evaporating coils made from copper, aluminum, or aluminum- copper, including the tubing or rods from a heating or air conditioning unit that is not from a window air conditioning unit or automobile air conditioning unit;
      (9)   Stainless steel beer kegs;
      (10)   A catalytic converter or any nonferrous part of a catalytic converter, unless attached to a vehicle; or
      (11)   Storm drain covers.
   SCRAP PROCESSORS. Any person who utilizes torches, sheers, balers, presses, or shredders to manufacture scrap metal for remelting purposes only.
   SECONDARY METALS RECYCLER. Any person(s) or business who meets the definition of “Secondary Metals Recycler” in KRS 433.900.
   SECONDHAND DEALER. Any person or entity whose business includes buying, selling, trading, consigning, or exchanging previously owned or used tangible personal property, regardless of whether secondhand articles are the primary focus of the business or whether the dealer is a mobile dealer.
(Lou. Metro Ord. No. 192-2007, approved 10-1-2007, effective 1-29-2008; Lou. Metro Am. Ord. No. 27-2012, approved 2-10-2012; Lou. Metro Am. Ord. No. 132-2012, approved 8-1-2012; Lou. Metro Am. Ord. No. 138-2019, approved 9-24-2019; Lou. Metro Am. Ord. No. 69-2021, approved 5-27-2021; Lou. Metro Am. Ord. No. 159-2021, approved 11-11-2021)
§ 123.02 RESERVED.
 
§ 123.03 LICENSE REQUIRED.
   (A)   Except as provided in subsection (F) of this section, it shall be unlawful for any pawnbroker, secondhand dealer, or secondary metals recycler to engage in business within Louisville/Jefferson County except when licensed by the Department of Codes and Regulations under this section and in compliance with the provisions of this chapter.
   (B)   Before commencing business within Louisville/Jefferson County, each business required to be licensed under this section shall make application in writing and under oath to the Department of Codes and Regulations and shall pay the required license fees.
   (C)   Businesses licensed under this section shall be required to maintain a separate license for each business location.
   (D)   The Director of the Department of Codes and Regulations may set and enforce rules and regulations deemed necessary for the orderly and complete administration of this chapter which are not inconsistent with any of the provisions of this chapter. A copy of the administrative regulations as promulgated by the Director of the Department of Codes and Regulations shall be available for public inspection in the offices of the Department of Codes and Regulations.
   (E)   The Director of the Department of Codes and Regulations is authorized to establish and promulgate a reasonable schedule and classifications of fees for licenses and permits as shall be issued pursuant to this chapter.
   (F)   The license requirements of this chapter shall not be construed to apply to the following:
      (1)   Upon producing proof of certification of registration with the Department of Professional Licensing of the Public Protection Cabinet, Secondary metals recyclers certified under the provisions of KRS 433.902 shall be exempt from the requirement to obtain a license with the Department of Codes and Regulations.
      (2)   No license is required for those persons operating yard sales, garage sales, or other similar types of activities from their own residentially zoned property, or from property on which they legally reside or from property owned by a charitable organization. These activities must be temporary in nature and must comply with all Louisville Metro ordinance provisions and Land Development Code provisions. (See Land Development Code Section 4.4.4 Garage Sales)
      (3)   No license is required for any member or members of a religious, charitable, health, welfare, educational, political or youth service organization, who is acting as a peddler by selling or offering to sell goods or services, including secondhand goods, to raise funds for the work of such organization and for no other purpose. The Director of the Department of Codes and Regulations may require any organization or individual claiming exemption to appear and present evidence in support of said membership and purpose.
(Lou. Metro Ord. No. 76-2007, approved 5-15-2007; Lou. Metro Am. Ord. No. 230-2013, approved 12-16-13; Lou. Metro Am. Ord. No. 138-2019, approved 9-24-2019; Lou. Metro Am. Ord. No. 69-2021, approved 5-27-2021) Penalty, see § 123.99
§ 123.04 LICENSE APPLICATION.
   (A)   Any person, firm, or corporation required to secure a license under § 123.03 shall make written application, under oath, on a form provided by the Department of Codes and Regulations. Such application shall contain at least the following information:
      (1)   The name and permanent home address and telephone number and full local address and telephone number of the applicant.
      (2)   If not self-employed, the name, address and telephone number of the employer or parent organization the applicant is representing and copies of credentials or documents verifying that relationship.
      (3)   The nature or character of the goods, wares, merchandise or services to be offered by the applicant.
      (4)   The place or places where the applicant proposes to engage in business.
      (5)   A listing of all criminal convictions pertaining to theft, stolen property, or other pecuniary crimes of the applicant for the past five years.
      (6)   A statement of whether applicant has previously been denied a license under this chapter or if applicant has had previous license suspended or revoked and, if so, the reasons or the circumstances surrounding the denial, suspension or revocation.
      (7)   Applicant must provide proof of his or her tax identification number from the Metro Revenue Commission.
   (B)   Each applicant shall be required to complete the entire application form and abide by any request for information made by the Department of Codes and Regulations under this chapter. The failure to complete the form and provide all requested information may result in denial of the license.
   (C)   It shall be unlawful for any individual to intentionally provide false information or to intentionally omit requested information on an application for any license or permit governed by this chapter.
   (D)   Unless otherwise exempted, all applications shall be accompanied with the required fee(s) as specified in the schedule of fees established by the Director of the Department of Codes and Regulations.
(Lou. Metro Am. Ord. No. 138-2019, approved 9-24-2019; Lou. Metro Am. Ord. No. 69-2021, approved 5-27-2021)
§ 123.05 LICENSE APPLICATION REVIEW AND GENERAL STANDARDS.
   (A)   License application review:
      (1)   Upon receipt of such license application, the Director of Department of Codes and Regulations shall refer the application to the Louisville/Jefferson County Metro Revenue Commission for its certification that applicant is in compliance with the occupational license tax registration and filing requirements.
      (2)   The Director of the Department of Codes and Regulations has the authority to deny or revoke any license if there is:
         (a)   A history of criminal convictions provided pursuant to LMCO § 123.04(A)(5) demonstrating a proclivity toward crimes of a pecuniary nature;
         (b)   The discovery of any legitimate reason that the applicant presents a risk to citizens if permitted to engage in activities as a pawnbroker or secondhand dealer; or
         (c)   Any nonpayment of any civil penalties for previous violations of this chapter.
   (B)   General standards for licenses:
      (1)   No license shall be transferable nor shall such license authorize the activities licensed by any person other than the person to whom it is issued.
      (2)   Every person to whom a license is issued shall conform at all times with all applicable Louisville Metro Governmental requirements, including without limitation, public health and safety ordinances and regulations; local zoning codes and regulations; local occupational license tax ordinances and regulations; and any other applicable regulation or code provisions.
      (3)   Every person to whom a license is issued shall at all times while engaged in business have the applicable license in their possession or in a conspicuous place within the licensee's business location and shall produce the same at the request of any Louisville Metro official or at the request of any individual to whom the licensee is exhibiting his or her goods or selling or attempting to sell same.
      (4)   Licenses issued under this chapter shall be valid for the time period specified thereon. Renewal shall be required upon expiration of said license if the applicant wishes to continue such activity.
      (5)   Issuance of a license under this chapter shall not excuse any license holder from compliance with any other applicable ordinance or law.
(Lou. Metro Am. Ord. No. 138-2019, approved 9-24-2019)
§ 123.06 LICENSE REVOCATION OR SUSPENSION.
   (A)   A license issued pursuant to this chapter may be suspended or revoked by the Director of the Department of Codes and Regulation subject to appeal pursuant to LMCO § 32.286. A license may be suspended or revoked for the following reasons:
      (1)   Fraud, misrepresentation or false statement contained in the application for a license.
      (2)   Fraud, misrepresentation or false statement made in connection with the business of acting as a pawnbroker or secondhand dealer.
      (3)   The applicant is a fugitive or has been convicted of a crime in the nature of business or commercial fraud, extortion, or receiving stolen property within the last three years.
      (4)   Any facts of conditions which would justify the denial of the original application.
      (5)   Conducting the business of a pawnbroker, secondhand dealer, or secondary metals recycler under this chapter in an unlawful manner or in such a manner as to constitute a breach of the peace or to constitute a menace to the health, safety or general welfare of the public.
   (B)   This section shall be self-executing and the suspension or revocation shall be effective immediately. The Director of the Department of Codes and Regulation shall give notice of the suspension or revocation of the license and sufficient notice shall be given if either hand-delivered or mailed to the licensee at his/her local address as listed on the licensee's application.
   (C)   It is unlawful for any person whose license has been suspended or revoked to continue in the business of a pawnbroker, secondhand dealer, or secondary metals recycler, or to keep the license issued to him/her in his/her possession and control, and the same shall immediately be surrendered to the Director of the Department of Codes and Regulations or his/her designee.
(Lou. Metro Am. Ord. No. 138-2019, approved 9-24-2019; Lou. Metro Am. Ord. No. 69-2021, approved 5-27-2021)
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