§ 111.14 SEVERABILITY.

   If any provision of this subchapter is found to be invalid for any reason by a court of competent jurisdiction, the validity of the remaining provisions shall not be affected.

PAWN SHOPS

§ 111.25 PURPOSE.

   (A)   The City Council finds that use of services provided by pawnbrokers provides an opportunity for the commission of crimes and their concealment because pawn businesses have the ability to receive and transfer property stolen by others easily and quickly. The City Council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers. The City Council further finds that the pawn industry has outgrown the city’s current ability to effectively or efficiently identify criminal activity related to pawn shops. The purpose of this subchapter is to prevent pawn businesses from being used as facilities for the commission of crimes, and to assure that the businesses comply with basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the citizens of the city.

   (B)   To help local law enforcement better regulate current and future pawn businesses, decrease and stabilize costs associated with the regulation of the pawn industry, and increase identification of criminal activities in the pawn industry through the timely collection and sharing of pawn transaction information, this subchapter also implements and establishes the required use of reporting to the system or systems as identified by the Wright County Sheriff’s Office.

(Prior Code, § 3-15-1) (Ord. 738, passed 2-24-2020)

§ 111.26 DEFINITIONS.

   For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

   BILLABLE TRANSACTION. Every reportable transaction conducted by a pawnbroker except renewals, redemptions, or extensions of existing pawns on items previously reported and continuously in the licensee’s possession is a billable transaction.

   PAWNBROKER. A person, partnership, or corporation who lends money on the security of pledged goods (items that are “left in pawn”), and/or purchases goods on the condition that they may be redeemed or repurchased by the seller for a fixed price, within a fixed period of time. To the extent that a PAWNBROKER’S business includes buying personal property previously used, rented or leased, or selling it on consignment, the provisions of this subchapter shall be applicable.

   REPORTABLE TRANSACTION. Every transaction conducted by a pawnbroker in which merchandise is received through a pawn, purchase, consignment, or trade; or in which a pawn is renewed, extended, or redeemed; or for which a unique transaction number or identifier is generated by their point-of-sale software, is reportable except:

      (1)   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 the merchandise, provided the pawnbroker must maintain a record of the purchase or consignment which describes each item, and must mark each item in a manner which relates it to that transaction record; and

      (2)   Retail and wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption periods have expired.

(Prior Code, § 3-15-2) (Ord. 542, passed 1-9-2012)

§ 111.27 LICENSE REQUIRED.

   No person shall engage in the business of pawnbroker at any location without a pawnbroker license for that location. No pawnbroker license may be transferred to a different location or a different person. Issuance of a license under this subchapter shall not relieve the licensee from obtaining any other licenses required to conduct business at the same or any other location.

(Prior Code, § 3-15-3) Penalty, see § 111.99

§ 111.28 APPLICATION REQUIRED.

   (A)   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.

   (B)   Every new applicant must provide all the following information:

      (1)   If the applicant is a sole proprietor:

         (a)   The name, place and date of birth, street resident address, and phone number of applicant;

         (b)   Whether the applicant is a citizen of the United States or resident alien;

         (c)   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;

         (d)   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;

         (e)   The street address at which the applicant has lived during the preceding five years;

         (f)   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 preceding five years;

         (g)   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 such convictions; and

         (h)   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 divisions (B)(1)(a) through (B)(1)(g) above.

      (2)   If the applicant is a partnership:

         (a)   The name(s) and address(es) of all general and limited partners and all information concerning each general partner required in division (B)(1) above;

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

         (c)   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.

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

         (a)   The name of the corporation or business form, and if incorporated, the state of incorporation;

         (b)   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; and

         (c)   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 divisions (B)(1)(a) through (B)(1)(g) above.

      (4)   For all applicants:

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

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

         (c)   The location of the business premises; and

         (d)   Other information as the City Council or issuing authority may require.

(Prior Code, § 3-15-4)

§ 111.29 APPLICATION EXECUTION.

   (A)   All applications for a license under this subchapter must be signed and sworn to under oath or affirmation by the applicant.

   (B)   If the application is that of a sole proprietor, 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.

   (C)   Any falsification on a license application shall result in the denial of a license.

(Prior Code, § 3-15-5)

§ 111.30 PERSONS INELIGIBLE FOR A LICENSE.

   No license under this subchapter will be issued to an applicant who is a sole proprietor, 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 subchapter as prescribed by M.S. § 364.03, subd. 3, as it may be amended from time to time; or

   (C)   Is not of good moral character or repute.

(Prior Code, § 3-15-6)

§ 111.31 LICENSE FEES.

   (A)   The annual license fees for licenses issued under this subchapter shall be as adopted by the City Council.

   (B)   The billable transaction license fee shall reflect the cost of processing transactions and other related regulatory expenses as determined by the City Council, and shall be reviewed and adjusted periodically. Licensees shall be notified in writing 30 days before any adjustment is implemented.

   (C)   Billable transaction fees shall be billed monthly and are due and payable within 30 days. Failure to do so is a violation of this subchapter.

(Prior Code, § 3-15-7) (Ord. 357, passed 11-27-2000; Ord. 542, passed 1-9-2012)