610.005. Purpose.

The city council finds that pawnbrokers, precious metal dealers, and certain secondhand dealers potentially provide an opportunity for the commission and concealment of crimes. These businesses have the ability to receive and transfer stolen property easily and quickly. The city council also finds that consumer protection regulation is warranted in transactions involving these businesses. The purpose of this section is to prevent these businesses assisting in the commission of crimes, to identify criminal activities through timely collection and sharing of certain transaction information, and to ensure that such businesses comply with basic consumer protection standards, thereby protecting the public health, safety and general welfare of the citizens of the city.

(Amended by Ord. No. 2011-12, adopted June 20, 2011; Amended by Ord. No. 2005-12, adopted May 9, 2005)

610.010. Definitions.

1.   “Billable transaction” means a reportable transaction except renewals, redemptions or extensions of existing pawns on items previously reported and continuously in the licensee's possession, voided transactions, and confiscations.

2.   "Gemstone" means a precious or semiprecious stone that may be used as a jewel when cut and polished.

3.   “Item containing precious metal” means an item made in whole or in part of metal and containing more than one percent by weight of silver, gold or platinum.

4.   “Minor” means a natural person under the age of 18 years.

5.   “Pawnbroker” means a person who loans money on deposit or pledge of personal property or other valuable thing; who deals in the purchasing of personal property or other valuable thing on condition of selling it back again at a stipulated price; or who loans money secured by chattel mortgage on personal property, taking possession of the property or a part of it. If a pawnbroker business includes buying personal property previously used, rented, or leased, the provisions of this section are applicable. Any bank, savings and loan association, or credit union is not a pawnbroker for purposes of this section.

6.   “Person” means one or more natural persons; a partnership, including a limited partnership; a corporation; including a foreign, domestic, or nonprofit corporation; a trust; a political subdivision of the state; or another business organization.

7.   “Precious metal dealer” means a person engaging in the business of buying coins or secondhand items containing precious metal including jewelry, watches, eating utensils, candlesticks, and religious and decorative objects.

8.   “Precious metals” means silver, gold, or platinum.

9.   “Reportable transaction” means a transaction conducted by a pawnbroker, precious metal dealer, or secondhand dealer in which merchandise is received through a pawn, purchase, consignment or trade except:

   a.   the bulk purchase or consignment of new or used merchandise from a merchant, manufacturer or wholesaler having an established permanent place of business, and the retail sale of said merchandise, if the pawnbroker, precious metal dealer, or secondhand dealer maintains a record describing the items in each transaction and marks each item in a manner that relates it to that transaction record; and

   b.   retail and wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and redemption periods have expired.

10.   "Secondhand dealer" means a person in the business of buying, or receiving as "trade-in," secondhand items that are in one or both of the following categories: (a) consumer electronics, including peripherals and electronic media, and (b) jewelry and gemstones. A secondhand dealer does not include a person who buys or receives fewer than 25 such items within any period of 12 consecutive months.

11.   “Secondhand item” means tangible personal property, excluding motor vehicles, that has been previously used, rented, owned or leased.

(Amended by Ord. No. 2012-07, adopted June 25, 2012; Amended by Ord. No. 2011-12, adopted June 20, 2011; Amended by Ord. No. 2005-12, adopted May 9, 2005)

610.015. License Required.

A person must not engage in the business of pawnbroker, precious metal dealer, or secondhand dealer within the city unless the person is currently licensed under this section.

(Amended by Ord. No. 2011-12, adopted June 20, 2011; Amended by Ord. No. 2005-12, adopted May 9, 2005)

610.020. Exceptions to License Requirement.

A person conducting the following transactions is not required to obtain a license under this section:

1.   transactions at occasional “garage” or “yard” sales, or estate sales or farm auctions held at the owner's residence, except that precious metal dealers must comply with the requirements of Minn. Stat. §§ 325F.734 to 325F.742, for these transactions;

2.   transactions regulated by Minn. Stat. § 80A;

3.   transactions regulated by the federal commodity futures commission act;

4.   transactions involving the purchase of precious metal grindings, filings, slag, sweeps, scraps, or dust from an industrial manufacturer, dental lab, dentist, or their agent;

5.   transactions involving the purchase of photographic film, such a lithographic and x-ray film or silver residue or flake recovered in lithographic and x-ray film processing;

6.   transactions in which the secondhand item containing precious metal is exchanged for a new item containing precious metal and the value of the new item exceeds the value of the secondhand item, except that a person who is a precious metal dealer by engaging in a transaction that is not exempted by this section must comply with the requirements of Minn. Stat. §§ 325F.734 to 325F.742;

7.   transactions between precious metal dealers if both dealers are licensed under Minn. Stat. § 325F.733, or if the seller's business is located outside of the state and the item is shipped from outside the state to a dealer licensed under Minn. Stat. § 325F.733; and

8.   transactions in which the buyer of the secondhand item containing precious metal is engaged primarily in the business of buying and selling antiques, the items are resold in an unaltered condition except for repair, the items are resold at retail, and the buyer paid less than $2,500 for secondhand items containing precious metals purchased within any period of 12 consecutive months.

(Amended by Ord. No. 2011-12, adopted June 20, 2011; Amended by Ord. No. 2005-12, adopted May 9, 2005)

610.025. Persons Ineligible.

1.   No license may be issued to a person who:

   a.   is not a citizen of the United States or a resident alien;

   b.   is a minor at the time the application is filed;

   c.   has been convicted of any crime directly related to the licensed occupation and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of pawnbroker or precious metal dealer under Minn. Stat. § 364.03, subd. 3, or a person not of good moral character and repute;

   d.   holds a liquor license under section 600;

   e.   in the judgment of the city council is not the real party in interest or beneficial owner of the business operated under the license;

   f.   has had a pawnbroker, precious metal dealer's, or secondhand dealer's license revoked anywhere within five years of the license application; or

   g.   in the case of an individual, is not a resident of the twin cities; in the case of a partnership, the managing partner is not a resident of the twin cities; or in the case of a corporation, the manager is not a resident of the twin cities. The required residency must be established by the time the license is issued and maintained throughout the existence of the license and all renewals. The time for establishing residency within the twin cities may, for good cause, be extended by the council. For the purposes of this paragraph, the twin cities means the seven-county metropolitan area defined by Minn. Stat. § 473.121, subd. 2.

(Amended by Ord. No. 2011-12, adopted June 20, 2011; Amended by Ord. No. 2005-12, adopted May 9, 2005)

610.030. Places Ineligible.

1.   No license may be issued for a place or a business ineligible for a license under city ordinance or state law.

2.   No license may be issued for operation in a residential zoning district.

3.   No license may be issued for a place or business that holds a liquor license.

4.   No license may be granted for operation on a premises for which taxes, assessments or other financial claims of the city or other government agency are delinquent and unpaid.

(Amended by Ord. No. 2005-12, adopted May 9, 2005)

610.035. License Application.

In addition to information that is required by the county under Minn. Stat. § 471.924, every application for a license under this ordinance must be made on a form supplied by the city, must be verified and must contain the following information:

1.   If the applicant is a natural person:

   a.   the name, place and date of birth, street residence address, and phone number of the applicant;

   b.   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 of assumed name required by state law;

   c.   whether the applicant is the owner and operator of the business and if not, who is;

   d.   whether the applicant has ever used or been known by a name other than his/her true name, and if so, what was the name, or names, and information concerning dates and places where used;

   e.   whether the applicant is married or single. If married, the true name, place and date of birth and street address of applicant's spouse;

   f.   street address at which applicant and spouse have lived during the preceding ten years;

   g.   kind, name and location of every business or occupation applicant and spouse have been engaged in during the preceding ten years;

   h.   names and addresses of applicant's and spouse's employers and partners, if any, for the preceding ten years;

   i.   whether the applicant or spouse has ever been convicted of a violation of any state law or local ordinance, other than a non-alcohol related traffic offense. If so, the applicant must furnish information as to the time, place and offense for which convictions were had;

   j.   whether the applicant or spouse has ever been engaged as an employee or in operating a pawnshop, precious metal dealership, or secondhand dealership or other business of a similar nature. If so, applicant must furnish information as to the time, place and length of time;

   k.   whether the applicant has ever been in military service. If so, the applicant must, upon request, exhibit all discharges;

2.   If the applicant is a partnership:

   a.   the name and address of all partners and all information concerning each partner as is required of an individual applicant as above;

   b.   the name(s) of the managing partner or partners, and the interest of each partner, or partners in the business;

   c.   a true copy of the partnership agreement and a copy of the certificate of assumed name required by state law;

3.   If the applicant is a corporation or other organization:

   a.   the name, and if incorporated, the state of incorporation;

   b.   a true copy of the certificate of incorporation, articles of incorporation or association agreements;

   c.   the name of the manager or proprietor or other agent in charge of, or to be in charge of the premises to be licensed, giving all information about the person as is required in the case of an individual applicant; and

   d.   a list of all persons who, single or together with their spouse, own or control an interest in the corporation or association in excess of five percent or who are officers of the corporation or association, together with their addresses and all information as is required for a single applicant;

4.   For all applicants:

   a.   information regarding the financial status of the applicant, including the amount of the investment that the applicant has in the business, land, building, premises, fixtures, furniture, or stock in trade, and proof of the source of the money. The city may require the applicant to submit a certification that the applicant is the real party in interest, is financially solvent, and has sufficient capital to responsibly operate the licensed establishment. The certification must be on the city's approved form and issued by an independent, licensed or certified professional such as a lawyer or accountant;

   b.   a list of responsible persons, including the names of owners, managers and assistant managers, who may be notified or contacted by state or city employees in case of emergency. These persons must be residents of the twin cities metropolitan area as defined by Minn. Stat. § 473.121, subd. 2;

   c.   for each manager and assistant manager with responsibility for operation of the business, the following information must be provided:

      (1)   complete personal information requested on the city's form;

      (2)   two sets of fingerprints and a photograph; and

      (3)   such other information as the city may require.

   d.   whether the applicant holds a current pawnbroker, or precious metal dealer, or secondhand dealer license from any other governmental unit and whether the applicant is licensed under Minn. Stat. § 471.924 or Minn. Stat. §§ 325F.731 to 325F.744;

   e.   whether the applicant has ever been denied a pawnbroker, precious metal dealer, or secondhand dealer license from any other governmental unit;

   f.   the location of the business premises;

   g.   the legal description of the premises to be licensed including a map of the area for which the license is sought, showing dimensions, locations of buildings, street access and parking facilities;

   h.   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 are unpaid; and

   i.   other information that the city deems appropriate.

(Amended by Ord. No. 2011-12, adopted June 20, 2011; Amended by Ord. No. 2005-12, adopted May 9, 2005)