(A) No person shall directly or indirectly operate, conduct, or engage in the business of pawnbroker without first obtaining a license therefor. No such license shall be granted except upon certification of the Police Chief and Fire Chief or their designees. For purposes of this section, a
PAWNBROKER shall mean a person who loans money on deposit, or pledge of personal property, or other valuable thing, other than securities or printed evidence of indebtedness, or who deals in the purchasing of personal property or other valuable thing on condition of selling the same back again at a stipulated price.
(B) No such license shall be granted to any person unless a complete set of fingerprints of such person is on file in the noncriminal identification file of the Police Department.
(C) Before any such license is issued, the applicant therefor shall furnish a corporate surety bond in the penal sum of $10,000 with a surety who is listed on the Department of the Treasury’s listing of certified companies to be approved by the City Clerk, which bond shall be conditioned for the due observance during the time of the license of all laws of the state and all ordinances of the city. Any person aggrieved by the action of any such licensee shall have a right of action on the bond for the recovery of money or damages, or both. Such bond shall remain in full force and effect for a period of 90 days after the expiration or cancellation of any such license or after the termination of any action upon such bond.
(D) No pawnbroker shall purchase or receive any article:
(1) From any person under the age of 18 years;
(2) From any person the pawnbroker suspects as having stolen the article or is known to the pawnbroker to be a thief or an associate of thieves;
(3) Between the hours of 9:00 p.m. and 7:00 a.m.;
(4) On a Sunday;
(5) From any person who is intoxicated;
(6) When the serial number or other identifying insignia on the article has been defaced, scratched, melted, or otherwise damaged; or
(7) From any person who has not presented a valid form of identification.
(E) No pawnbroker shall accept, offer, or display a pistol for resale. For purposes of this section, the term
PISTOL means any firearm that is 26 inches or less in length, or is any firearm that by its construction and appearance conceals it as a firearm. For purposes of this section, a flaregun is a pistol.
(F) (1) No pawnbroker shall fail to keep record of all persons with whom he or she does business and all property coming into their possession. Such records shall, at a minimum, contain the following information:
(a) A description of the article;
(b) A photograph of the article;
(c) A sequential transaction number;
(d) Any amount of money loaned on the article;
(e) The name, address, general description, operator’s or chauffeur’s license or state identification number, and fingerprint of the person from whom the article was received;
(f) A copy of the operator’s or chauffeur’s license or state identification card;
(g) The date and time the article was received;
(h) The method and amount of payment, if any; and
(i) The customer’s signature.
(2) The records, the place where the business is carried on, and all articles of property in that place of business are subject to examination at any time by the City Attorney, City Police Department, County Prosecuting Attorney, or Department of State Police.
(3) All records must be electronically transmitted to the Chief of Police or his or her designee. Every pawnbroker must, within 48 hours, transmit to the Chief of Police or his or her designee by means of electronic transmission through a modem or similar device in such a format that the data is capable of direct electronic entry into the Police Department’s computerized system all transactions in which the pawnbroker received articles the preceding day by pawn, trade, purchase, or consignment, in a format approved by the Chief of Police or his or her designee. A transaction reported by electronic transmission under this division (F)(3) shall not be reported on paper forms unless the Chief of Police or his or her designee so requests.
(4) A pawnbroker need not report electronically transactions taking place at a business location where the number of transactions in each 90-day period does not exceed ten. A pawnbroker reasonably believing a location at which he or she conducts a business qualified under this division (F)(4) for exemption from computerized reporting and wishing to be exempt from the requirements of this section shall sign, under penalty of perjury, a declaration to that effect in a form developed by the Chief of Police or the Chief’s designee, and once the declaration is signed, so long as the volume of transactions does not exceed ten in each 90 day period, transactions taking place at that pawnbroker need not be reported electronically, but shall be reported on paper forms.
(5) All pawnbrokers must have the equipment installed in their place of business no later than July 31, 2006. The Saginaw Police Department will require all pawnbrokers to electronically submit data beginning August 1, 2006.
(G) Every pawnbroker must make daily, a sworn statement of all transactions, describing the items received, and setting forth the name, address, and description of the person from whom the articles were received.
(H) A fee of $2 will be assessed per transaction. The fee breakdown is as follows: the electronic information data manager and pawnbroker will each receive $0.50 per transaction and the city will receive $1 per transaction. The electronic information data manager will assess a property registration fee of $0.50 for each transaction the pawnbroker reports, either through batch file upload, directly using the electronic information data manager’s business interface, or on the electronic information data manager’s Automated Reporting Service.
(I) (1) A
TRANSACTION is defined as a single buy or pawn, which may involve one or more articles and does not include contract extensions or claims. This is a per transaction registration fee, not a per item fee included in the transaction. It is in the pawnbroker’s discretion to recover the fees from its customers for registering the transaction. Further, the pawnbroker may choose to incorporate the fee within other fees associated with the transaction.
(2) The pawnbroker will be invoiced on a monthly basis. The electronic information data manager’s Automated Reporting Service will generate a list of the billable transactions, which are used for deriving the invoiced amounts. The above fees are assessed for the use of the standard electronic information data manager’s Automated Reporting Service.
(3) Any custom programming completed for the pawnbroker will be negotiated on a contract basis and may result in unique licensing arrangements between the electronic information data manager and the pawnbroker.
(J) Every pawnbroker must comply with requirements and procedures established by state law, including, but not limited to those governing memorandums of pawn, interest on loans, storage fees, and title and possession of pawned articles.
(Prior Code, § 110.23) (Ord. O-156, passed 2-17-2014, effective 2-27-2014; Ord. O-162, passed 6-22-2015, effective 7-2-2015) Penalty, see § 110.99