610.050. Application Procedure.

1.   No license may be issued until the police department has conducted an investigation of the representations set forth in the application, the applicant's moral character, and the applicant's financial status. All applicants must cooperate with this investigation.

2.   No license may be issued until the council has held public hearings in accordance with the following:

   a.   two public hearings must be held at least 27 days apart. Notice of the hearings will be made in the same manner as that specified in section 300.09, subd. 3, for a zoning ordinance amendment affecting district boundaries; and

   b.   at the public hearings all persons interested in the matter must be heard, and the hearings may be adjourned from time to time. No hearing is required for a renewal of a license, but the council may, at its option, hold a hearing.

3.   The city council may issue a license before an investigation, notice and public hearing for an applicant who:

   a.   had a license within the previous five years for the establishment that is specified in the application and that is continuing to operate under a license;

   b.   wishes to resume operation of the business without sufficient time, through no fault of his or her own, to meet the normal procedural requirements;

   c.   had no criminal license convictions, or license suspensions or revocations during the prior licensed period; and

   d.   otherwise qualifies and meets the requirements for a license.

   In this situation, the city council may immediately issue an interim license to the applicant for a period no longer than 90 days. The applicant must thereafter proceed through the specified requirements for an investigation, notice, and public hearing. At the public hearing the council will decide whether the license should continue in effect or be revoked. The interim license gives the applicant no greater right to continuation of the license than it would have had to issuance of a new license following the normal procedure.

4.   After investigation and hearing, the council will grant or deny the application, considering the factors in sections 610.025, 610.030, and 610.070 and the best interests of the public health, safety, and general welfare. Each application requires five affirmative votes by the city council for approval. The council may impose conditions on a license to protect the public health, safety, and general welfare.

5.   A license is a privilege, not a right. Even if a person meets the minimum requirements for a license, the city council is not obligated to grant the license. The city council has broad discretion to decide if, where, and how licensed businesses may operate. The city council may limit the number of licenses, when in its judgment, the welfare of the city suggests such action. The city council may develop criteria for evaluating a license application.

6.   An application for a license may be considered by the city council at the same time an applicant is requesting land use approvals needed for the site, including site plan review, rezoning, or an amendment to the comprehensive guide plan. Final approval of a license will not be granted until the city council has given at least preliminary approval to any necessary land use request. If an application is granted for a location where a building is under construction or not ready for occupancy, the license will not be delivered to the licensee until a certificate of occupancy has been issued for the licensed premises.

7.   In the case of the death of a licensee, the personal representative of a licensee may continue operation of the business for not more than 90 days after the licensee's death.

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

610.055. License Term, Renewal.

Each license will expire on December 31st of the year in which it is issued. The application for the renewal of an existing license must be made at least 90 days before the date of the expiration of the license and must be made on the form which the city provides.

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

610.060. License Restrictions.

1.   Generally. Every license is subject to the conditions in the following paragraphs, all other provisions of this section, and of other applicable regulations, ordinances or state law.

2.   Maintenance of Peace. Every licensee is responsible for the conduct of his or her place of business and the conditions of order in it. The act of any employee of the licensed premises is deemed the act of the licensee as well, and the licensee will be liable for all penalties provided by this ordinance equally with the employee, except criminal penalties.

3.   Display of License. Every license must be posted in a conspicuous place in the premises for which it is used.

4.   Written Records. At the time of a receipt of an item of property, a licensee must immediately record the information listed below, in English, in a computer program approved by the police department. Licensees not required to report electronically under subdivision 8 below may as an alternative record the information in indelible ink, in a book or journal that has page numbers that are preprinted:

   a.   an accurate description of the item of property including any trademark, identification number, serial number, model number, brand name, or other identifying mark on such item;

   b.   the date and time the item of property was received by the licensee;

   c.   the name, residence address, residence telephone number, and date of birth and a reasonably accurate physical description of the person from whom the item of property was received, including approximate height, weight, color of eyes, color of hair, sex, and race;

   d.   the identification number and state or agency of issue for one of the following forms of identification of the person from whom the item was received:

      (1)   a current, valid Minnesota photo driver's license;

      (2)   a current, valid Minnesota photo identification card;

      (3)   a current, valid photo driver's license or identification card issued by another state or Canadian province, and one other form of identification;

      (4)   valid passport; or

      (5)   current, valid military photo identification.

   e.   the amount of money loaned, advanced to the pledgor or paid to the seller, or the nature of the transaction if not a loan or sale;

   f.   the maturity date of the pawn transaction and the amount due;

   g.   the monthly and annual interest rates, including pawn fees and charges;

   h.   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;

   i.   the signature or unique identifier of the licensee or employee that conducted the transaction; and

   j.   the description of the item or serial number for an item that is "traded-in" and the item received as a result of the exchange.

5.   Photographic Record. The licensee must obtain a color photograph or color video of each person selling, trading-in, or pawning an item of property and of each item pawned, traded-in, or sold that does not have a unique serial or identification number permanently engraved or affixed. The licensee must notify the person being photographed or videotaped by displaying a sign of sufficient size in a conspicuous place in the premises. A photograph must be at least two inches in length by two inches in width and must be referenced with the information regarding the person and the item sold, traded-in, or pawned. The major portion of the photograph or video image must include a front facial pose and a clear and accurate depiction of the item, if required. Video recordings 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 photograph or video must be in digital format.

6.   Inspection and Retention of Records. The licensee must make available the information required in subsections 4 and 5 above at all reasonable times for inspection by the police department. The information required in subsection 4 must be retained by the licensee for at least four years. The photographic records required in subsection 5 must be retained for at least three months. Upon the request of a licensed police officer, the licensee must provide copies of all records required in subsections 4 and 5 above.

7.   Receipts/Pawn Tickets. The licensee must provide a receipt to the seller or pledgor of an item of property received, which must be numbered to correspond to the entry in the licensee's records and must include the items listed below. The pledgor or seller must sign the receipt/pawn ticket and receive an exact copy of it:

   a.   the name, address, and phone number of the licensee's business;

   b.   the date and time on which the item was received by the licensee;

   c.   a description of the item received and amount paid to the pledgor or seller in exchange for the item pawned or sold, and whether it was pawned or sold;

   d.   the signature or unique identifier of the licensee or agent engaged in the transaction;

   e.   the last regular business day 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(s) on that date;

   f.   the monthly and annual rate of interest charged on pawned items received and all fees and charges;

   g.   the name and address of the seller or pledgor;

   h.   the statement that “Any personal property pledged to a pawnbroker 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 pledged goods”;

   i.   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”;

   j.   the statement that “This item is redeemable only by the pledgor to whom the receipt was issued, or any person identified in a written and notarized authorization to redeem the property identified in the receipt, or a person 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 persons other than the original pledgor must be maintained along with the original transaction record”; and

   k.   a blank signature line for the pledgor’s signature.

8.   Daily Reports to Police. At the close of each business day, the licensee must submit the information for each reportable transaction that is required by subsections 4 and 5 above. The information must be transferred by electronic means from the licensee's computer to an automated record system specified by the police department. Licensees may provide the required information in writing or on computer disc to the police department by twelve o'clock noon the first business day following the date of the transaction if there are technical problems with the electronic system, as long as the licensee corrects the problems within its system within one business day after the failure and re-submits all transactions by electronic means when the problems are corrected. If a licensee is unable to successfully transfer the required reports by electronic means as required by this section, the licensee must have on the premises and available for inspection by the police department printed copies of all reportable transactions that have not been reported by electronic means.

9.   Stolen or Lost Property. A licensee must report to city police an item pledged or received, or sought to be pledged or received, if the licensee has reason to believe that the article was stolen or lost.

10.   Police Order to Hold or Confiscate.

   a.   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. If the investigative hold is confirmed in writing by the originating agency within 72 hours, it will 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.

   b.   Order to Hold. Whenever the chief of police or the chief's designee notifies a licensee in writing or electronically not to sell an item, the item may not be sold or removed from the licensed premise until authorized by the chief of police or the chief's designee. An order to hold will 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.

   c.   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:

      (1)   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

      (2)   place the item on hold indefinitely, in which case the item may not be sold, refurbished, 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 person doing so must provide identification upon request of the licensee, and must provide the licensee the name and phone number of the confiscating agency and investigator, and the case number related to the confiscation.

   d.   Termination of Order. When an order to hold/confiscate is no longer necessary, the chief of police or chief's designee must terminate the order and notify the licensee.

11.   Redemption; Non-redemption; Risk of Loss.

   a.    A person 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, refurbished for resale, and sold, or in the case of precious metal, melted down or dismantled. 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 this section. A person may redeem a pawned item 72 hours after the item was received by the pawnbroker or precious metal dealer, excluding Sundays and legal holidays. Licensees must redeem an item only to the original pledgor, to a person identified in a written and notarized authorization to redeem the property signed by the pledgor, or to a person identified in writing by the pledgor at the time of the initial transaction. Written authorization for release of property to persons other than the original pledgor must be maintained along with the original transaction record in accordance with this section. The deadline for redeeming an item must be a day on which the pawnbroker is open for regular business.

   b.   An item sold to a licensee may not be sold or otherwise removed from the premises for a minimum of 31 days after the date of the sale, unless otherwise permitted by this section.

   c.   A pledgor has no obligation to redeem pledged goods or make a payment on a pawn transaction. Pledged goods not redeemed within at least 60 days of the date of the pawn transaction, renewal, or extension will automatically be forfeited to the pawnbroker, and qualified title to the goods will automatically vest in the pawnbroker.

   d.   While the pledged goods remain in possession of the pawnbroker and not sold to a third party, the pawnbroker’s title to the pledged goods is qualified only by the pledgor’s right to redeem the goods by paying the loan plus fees and interest accrued to the date of redemption. If the goods are lost or damaged while in possession of the pawnbroker, the pawnbroker must compensate the pledgor, in cash or replacement goods acceptable to the pledgor, for the fair market value of the lost or damaged goods. Proof of compensation is a defense to a prosecution or civil action.

12.   Inspection of Items.

   a.   Inspection by City. The licensee must, at all reasonable times during the term of the license, allow the police department to enter the business premises and other premises where items purchased or received as part of the business are stored. The purpose of the visit will be to inspect the premises and the merchandise to locate items suspected of being stolen or otherwise improperly disposed of, and to verify compliance with this section.

   b.   Inspection by Claimants. Additionally, the items coming into possession of the licensee must at all reasonable times be open to the inspection of a person claiming to have been the owner of an item or to have an interest in it, if the person is accompanied by a police officer.

13.   Label Required. Licensees must attach a label to every item at the time it is pawned, purchased, or received into inventory from a reportable transaction. Permanently recorded on this label must be the number or name that identifies the transaction in the licensee'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 can be sold, if applicable. Labels may not be re-used.

14.   Gambling. A licensee must not keep, operate, or permit the keeping or operation on the licensed premises of dice, slot machines, roulette wheels, punchboards, blackjack tables, or pinball machines that return coins or slugs, chips, or tokens of any kind, that are redeemable in merchandise or cash. A licensee must not keep or operate gambling equipment authorized under Minn. Stat. §§ 349.11 through 349.61, and must not conduct raffles on the licensed premises and adjoining rooms. The purchase of lottery tickets may take place on the licensed premises as authorized by the director of the lottery pursuant to Minn. Stat. §§ 349A.01 through 349A.15.

15.   Storage of Items. Items must be stored within the licensed premises building, except the city may permit the licensee to designate one locked and secured warehouse building within the city where the licensee may store items. No item may be stored in the designated warehouse building that is not reported under subdivision 4 above. The licensee must permit immediate inspection of the warehouse at any time during business hours by the city and failure to do so is a violation of this ordinance. Items may not be stored in parking lots or other outside areas. All provisions in this section regarding recordkeeping and reporting apply to items stored in the approved off-site facility.items.

16.   Transfer of Items. Items accepted by a licensee at a licensed location in the city must be for pledge or sale through a licensed location in the city. No licensee under this section may sell an item that is transferred from a nonlicensed facility or a licensed facility outside the city.

17.   Restrictions on Weapons.

   a.   A licensee may not receive as a pledge, or accept for consignment or sale, any firearm as defined in section 1025.005 of this code, unless the licensee also maintains a federal firearms dealer's license.

   b.   A licensee may not receive as a pledge, or accept for consignment or sale, any dangerous weapon as defined in section 1025.005 of this code.

18.   Change in Required Information. Each licensee has the continuing duty to properly notify the director of community development of any change in the information or facts required to be furnished on the application for a license. This duty will continue throughout the period of the license.

19.   Change in Managers. For each new manager or assistant manager employed after the license is issued, a licensee must make the offer of employment contingent upon the city's approval. Each licensee must notify the director of community development within ten days after any new manager or assistant manager begins employment. This notification must include the information required in section 610.035(4)(c). Failure to provide complete and timely information will subject the licensee to the penalties provided in this code and to potential denial of a renewed license. The director may cause an investigation of the new managers and may disapprove the employment of these personnel by notice to the licensee in writing. The licensee may appeal this decision to the city council by placing a request in writing to the city clerk within ten days after the issuance of the notice. A failure to request an appeal waives the licensee's ability to contest the director's decision. After the appeal period has expired without an appeal, or the city council has upheld the director's decision upon an appeal, no manager who has been disapproved may operate in that capacity upon the licensed premises.

20.   Licensed Premises, Change in Ownership. Each license is issued only to the applicant and for the specific location on the premises that is described in the application and that is approved by the city council. No business may be conducted outside of the licensed premises, except as otherwise provided in this ordinance. No license may be transferred to another person or place without application to the council in the same manner as an application for a new license. Transfer of 25 percent or more of the stock of a corporation or of a controlling interest thereof, whichever is less, is deemed a transfer of the license of a corporate licensee, except for a corporation whose stock is publicly traded on a stock exchange or which is wholly owned by a corporation whose stock is publicly traded on a stock exchange. A new license must be obtained before the transfer takes place. Each day a licensee operates after a transfer has taken place without complying with this ordinance is a separate violation subject to penalties.

21.   Permitted Charges. A licensee may charge only interest rates and fees allowed by Minn. Stat. Sec. 325J.07 and must post a schedule of charges on the licensed premises in a place clearly visible to the general public.

22.   Pawning of Motor Vehicle Titles.

   a.   In addition to the other requirements of this section, a pawnbroker who holds a title to a motor vehicle as part of a pawn transaction must:

      (1)   be licensed as a used motor vehicle dealer under Minn. Stat. § 168.27, and post such license on the pawnshop premises;

      (2)   verify that there are no liens or encumbrances against the motor vehicle with the Minnesota department of public safety; and

      (3)   verify that the pledgor has automobile insurance on the motor vehicle as required by law.
   b.   A pawnbroker may not sell a motor vehicle covered by a pawn transaction until 90 days after recovery of the motor vehicle.

(Amended by Ord. No. 2012-07, adopted June 25, 2012; Amended by Ord. No. 2011-16, adopted August 22, 2011; Amended by Ord. No. 2011-12, adopted June 20, 2011; Amended by Ord. No. 2005-12, adopted May 9, 2005)

610.065. Prohibitions.

1.   A licensee and a clerk, agent, or employee of a licensee must not:

   a.   make a false entry in the records of transactions;

   b.   falsify, obliterate, destroy, or remove from the place of business the records, books, or accounts relating to the licensee's transactions;

   c.   refuse to allow the appropriate law enforcement agency, the attorney general, or other duly authorized state or federal law enforcement officer to inspect the records or goods in the person's possession during the ordinary hours of business or other times acceptable to both parties;

   d.   fail to maintain a record of each transaction for four years;

   e.   accept a pledge or purchase property from a person under the age of 18 years;

   f.   make an agreement requiring the personal liability of a pledgor or seller, or waiving any provision of this section, or providing for a maturity date less than one month after the date of the pawn transaction;

   g.   fail to return pledged goods to a pledgor or seller, or provide compensation as set forth in section 610.60, upon payment of the full amount due the pawnbroker unless either the date of redemption is more than 60 days past the date of the pawn transaction, renewal, or extension and the pawnbroker has sold the pledged goods pursuant to this section, or the pledged goods have been taken into custody by a court or a law enforcement officer or agency;

   h.   sell or lease, or agree to sell or lease, pledged or purchased goods back to the pledgor or seller in the same, or a related, transaction;

   i.   sell or otherwise charge for insurance in connection with a pawn transaction;

   j.   remove pledged goods from the licensed premises or other approved storage place at any time before unredeemed, pledged goods are sold pursuant to section 610.060;

   k.   receive any goods from a person of unsound mind or who is intoxicated; or

   l.   violate or fail to comply with any provision in this section.

2.   No person under the age of 18 years may pawn or sell or attempt to pawn or sell goods with any licensee under this section.

3.   No person may pawn, pledge, sell, consign, leave, or deposit an article of property with a licensee under this section if the property is:

   a.   not their own, whether or not the person has permission from the purported owner; or

   b.   subject to a security interest.

4.   No person seeking to pawn, pledge, sell, consign, leave, or deposit an article of property with a licensee under this section may give or present to the licensee a name, date of birth, residence address, telephone number, proof of identification, or any other information required under this section that is false, fictitious, or not his/her own.

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

610.070. Denial, Suspensions and Revocations of License.

1.   Grounds. A license under this section may be denied, suspended, or revoked for one or more of the following reasons:

   a.   violation of one or more provisions of this section;

   b.   violation of, or non-compliance with, any health, building, building maintenance, or other provisions of the Minnetonka city ordinances or state law;

   c.   non-compliance with the Minnetonka zoning code;

   d.   impracticality or impossibility of conducting a background or financial investigation due to the unavailability of information;

   e.   fraud, misrepresentation, or bribery in securing or renewing a license;

   f.   fraud, misrepresentation or false statements made in the application and investigation for a license, or in the course of a licensee's business;

   g.   violation within the preceding five years of any law relating to theft, damage or trespass to property, sale of a controlled substance, or operation of a pawnbroker, precious metal dealer's or secondhand dealer's business; or

   h.   non-payment of real estate taxes, assessments or other financial claims of the city or of the state for the business or premises licensed or sought to be licensed under this section. If an action has been commenced under the provisions of Minn. Stat. chapter 278, questioning the amount of validity of taxes, the council may on application by the licensee waive strict compliance with this provision. No waiver may be granted for an amount of taxes that remain unpaid for more one year after becoming due, unless the extended period is through no fault of the licensee.

2.   Sanctions.

   a.   The council may either suspend for up to 60 days or revoke a license or impose a civil fine not to exceed $2,000.00 for each violation upon a finding that the licensee or an agent or employee of the licensee failed to comply with an applicable statute, regulation or ordinance relating to the subject matter of section 610. No suspension or revocation will take effect until the licensee has been afforded an opportunity for a hearing under city code section 700.035, except the suspension provided for in paragraph b, below.

   b.   A licensee’s conviction for theft, burglary, robbery, receiving stolen property or another crime involving stolen property will result in the immediate suspension of the license by operation of this ordinance, pending a hearing on revocation of the license.

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

610.075. Penalty.

Except as otherwise provided by state law, a person violating a provision of this section is subject to the penalties established in section 1310 of this code. A criminal fine or sentence imposed will not affect the right of the city to suspend or revoke a license as the council deems appropriate.

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

610.080. [Repealed].

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

610.085. [Repealed].

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

SECTION 615. SEXUALLY ORIENTED BUSINESSES.