Subd. 1. Definitions. For purposes of this section, the terms defined in this section have the meaning given them.
A. The term "pawn transaction" means any loan on the security of pledged goods or any purchase of pledged goods on the condition that the pledged goods are left with the pawnbroker and may be redeemed or repurchased by the seller for a fixed price within a fixed period of time.
B. The term "pawnbroker" means:
1. Except as provided in subsection 2 below, "pawnbroker" means a person engaged in whole or in part in the business of lending money on the security of pledged goods left in pawn, or in the business of purchasing tangible personal property to be left in pawn on the condition that it may be redeemed or repurchased by the seller for a fixed price within a fixed period of time.
2. The following are exempt from the definition of "pawnbroker": any bank regulated by the state of Minnesota, the comptroller of the currency of the United States, the Federal Deposit Insurance Corporation, the board of governors of the Federal Reserve System, or any other federal or state authority and their affiliates; any bank or savings association whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation or any successor to it and all affiliates of those banks and savings associations; any state or federally chartered credit union; and any industrial loan and thrift company or regulated lender subject to licensing and regulation by the Department of Commerce.
C. The term "pawnshop" means the location at which or premises in which a pawnbroker regularly conducts business.
D. The term "person" means an individual, partnership, corporation, limited liability company, joint venture, trust, association or any other legal entity, however organized.
E. The term "pledged goods" means tangible personal property other than closes in action, securities, bank drafts or printed evidence of indebtedness, that are purchased by, deposited with or otherwise actually delivered into the possession of a pawnbroker in connection with a pawn transaction.
Subd. 2. Prohibited Acts.
A. No person shall engage in whole or in part in the business of lending money on the security of pledged goods left in pawn, or in the business of purchasing tangible personal property to be left in pawn on the condition that it be redeemed or repurchased by the seller for a fixed price within a fixed period of time within the city limits.
B. No person shall operate a pawnshop within the city limits.
C. No person shall engage in any pawn transaction within the city limits.
D. Exemptions: The following are exempt from the prohibitions of this section: any bank regulated by the state, the comptroller of the currency of the United States, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System or any other federal or state authority and their affiliates; any bank or savings association whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation or any successor to it and all affiliates of those banks and savings associations; any state or federally chartered credit union; and any industrial loan and thrift company or regulated lender subject to licensing and regulation by the Department of Commerce.
Subd. 3. Violations and Penalties.
A. Upon discovery of a suspected violation, the violator shall be issued a citation by the city police and given notice of his or her right to be heard on the accusation. Each violation, and every day in which a violation occurs or continues, shall constitute a separate offense.
B. Any person found to be in violation of this section shall be guilty of a misdemeanor. As an alternative to a misdemeanor prosecution, the city may offer the accused violator a chance to pay an administrative fine as provided in the fine schedule adopted and amended from time to time by the Council. If the accused violator accepts the administrative option, he or she may pay the fine to the city Deputy Clerk or he or she may within ten days of the notice, request an administrative hearing before the council or authorized hearing officer designated by the Council. If, after the hearing, the person is found to be in violation of this section, he or she shall be ordered to pay the fine.
C. If a violator elects to pay the fine, or if he or she is acquitted of the violation by the hearing officer, he or she shall not be subject to misdemeanor prosecution for violation of the section. If the violator fails to pay the fine within 90 days following the hearing, or 90 days following the last day to request a hearing when a hearing has not been requested, the city may vacate the civil action and proceed with the misdemeanor prosecution. At any time, the accused violator may abandon his or her request to pursue the administrative penalty and elect to have his or her case heard in court under the misdemeanor prosecution.
D. The city shall also have the right to refuse to offer the administrative penalty and instead proceed directly with the misdemeanor prosecution for a particular offense.
(Ord. 22, Third Series, passed 9-2-1997)