(A) Records required. At the time of any reportable transaction other than renewals, extensions, or redemptions, every licensee must immediately record in English the following information by using ink or other indelible medium on forms or in a computerized record approved by the Police Department:
(1) A complete and accurate description of each item, including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item;
(2) The purchase price, amount of money loaned upon, or pledged therefor;
(3) The maturity date of the transaction and the amount due, including monthly and annual interest rates and all pawn fees and charges;
(4) Date, time, and place the item of property was received by the licensee, and the unique alpha and/or numeric transaction identifier that distinguishes it from all other transactions in the licensee’s records. Transaction identifiers must be consecutively numbered;
(5) Full name, current residence address, current residence telephone number, date of birth, and accurate description of the person from whom the item of the property was received, including: sex, height, weight, race, color of eyes, and color of hair;
(6) The identification number and state of issue from an acceptable form of identification;
(7) The signature of the person identified in the transaction;
(8) The licensee must also take a color photograph or color video recording of:
(a) Each customer involved in a billable transaction; and
(b) Every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed. If a photograph is taken, it must be at least two inches in length by two inches in width and must be maintained in such a manner that the photograph can be readily matched and correlated with all other records of the transaction to which they relate. The photographs must be available to the Chief of Police, or the Chief’s designee, upon request. The major portion of the photograph must include an identifiable front facial close-up of the person who pawned or sold the item. Items photographed must be accurately depicted. The licensee must inform the person that he or she is being photographed by displaying a sign of sufficient size in a conspicuous place in the premises. If a video photograph is taken, the video camera must zoom in on the person pawning or selling the item so as to include an identifiable close-up of that person’s face. Items photographed by video must be accurately depicted. Video photographs 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 licensee must inform the person that he or she is being videotaped orally and by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed videotape for three months and furnish it to the Police Department upon request.
(9) Effective 60 days from the date of notification by the Police Department, licensees must fulfill the color photograph requirements in division (A)(8) above by submitting them as digital images, in a format specified by the city, electronically cross-referenced to the reportable transaction they are associated with. Notwithstanding the digital images may be captured from required video recordings, this provision does not alter or amend the requirements in division (A)(8) above; and
(10) For renewals, extensions, and redemptions, the licensee shall provide the original transaction identifier, the date of the current transaction, and the type of transaction.
(B) Disposition of articles.
(1) When an article of pawned or pledged property is redeemed from a licensee, the records shall contain an account of the redemption with the date, interest charges accrued, and the total amount for which the article was redeemed.
(2) When an article of purchased or forfeited property is sold or disposed of by a licensee and the licensee receives $100 or more in the payment thereof, the records shall contain an account of the sale with the date, the amount for which the article was sold, and the full name, current address, and telephone number of the person to whom sold.
(C) Inspection of records. The records must at all reasonable times be open to inspection by the Police Department. Data entries shall be retained for at least three years from the date of transaction. Entries of required digital images shall be retained a minimum of 120 days.
(D) Daily reports to police. Licensees must submit every reportable transaction to the Police Department daily in the following manner.
(1) Licensees must provide to the Police Department all information required in divisions (A)(1) through (A)(6) above and other required information, by transferring it from their computer to the automated pawn system via modem. All required records must be transmitted completely and accurately after the close of business each day in accordance with standards and procedures established by the city using procedures that address security concerns of the licensees and the city. The licensee must display a sign of sufficient size, in a conspicuous place in the premises, which informs all patrons that all transactions are reported to the Police Department daily.
(2) Licensees will be charged for each billable transaction reported to the Police Department.
(3) If a licensee is unable to successfully transfer the required reports by modem, the licensee must provide the Police Department printed copies of all reportable transactions along with the videotape(s) for that date, by 12:00 p.m. the next business day.
(4) If the problem is determined to be outside the licensee’s system, the licensee must provide the required reports in division (D)(3) above, and resubmit all the transactions via modem when the error is corrected.
(5) If a licensee is unable to capture, digitize, or transmit the photographs required in division (A)(9) above, the licensee must immediately take all required photographs with a still camera, cross-reference the photographs to the correct transaction, and make the pictures available to the Police Department upon request.
(6) Regardless of the cause or origin of the technical problems that prevented the licensee from uploading their reportable transactions, upon correction of the problem, the licensee shall upload every reportable transaction from every business day the problem had existed.
(7) Divisions (D)(3) and (D)(4) above and § 113.99(D) notwithstanding, the Police Department may, upon presentation of extenuating circumstances, delay the implementation of the daily reporting penalty.
(E) Receipt required. Every licensee must provide a receipt to the party identified in every reportable transaction and must maintain a duplicate of that receipt for three years. The receipt must include at least the following information:
(1) The name, address, and telephone number of the licensed business;
(2) The date and time the item was received by the licensee;
(3) Whether the item was pawned or sold, or the nature of the transaction;
(4) An accurate description of each item received, including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item;
(5) The signature or unique identifier of the licensee or employee that conducted the transaction;
(6) The amount advanced or paid;
(7) The monthly and annual interest rates, including all pawn fees and charges;
(8) 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;
(9) The full name, current residence address, current residence telephone number, and date of birth of the pledgor or seller;
(10) The identification number and state of issue from an acceptable form of identification;
(11) Description of the pledgor or seller including approximate sex, height, weight, race, color of eyes, and color of hair;
(12) The signature of the pledgor or seller; and
(13) All printed statements as required by M.S. § 325J.04, Subd. 2, as it may be amended from time to time, or any other applicable statutes.
(F) Redemption period. Any person pledging, pawning, or depositing an item for security must have a minimum of 120 days from the date of that transaction to redeem the item before it may be forfeited and sold. During the 90-day holding period, items may not be removed from the licensed location except as provided in § 113.48(A). Licensees are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued or, to any person identified in a written and notarized authorization to redeem the property identified in the receipt, or to a person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor, or with approval of the City Chief of Police or designee. Written authorization for release of property to persons other than original pledgor must be maintained along with original transaction record in accordance with division (A)(10) above.
(G) Holding period. Any item purchased or accepted in trade by a licensee must not be sold or otherwise transferred for 30 days from the date of the transaction. An individual may redeem an item 72 hours after the item was received on deposit, excluding Sundays and legal holidays.
(H) Police order to hold property.
(1) Investigative hold. Whenever the Chief of Police, or the Chief’s designee, notifies a licensee not to sell an item, the item must not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the Police Department within 72 hours and 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, pursuant to division (H)(2) below, whichever comes first.
(2) Order to hold. Whenever the Chief of Police, or the Chief’s designee, notifies a licensee not to sell an item, the item must not be sold or removed from the licensed premises until authorized to be released by the Chief, or the Chief’s designee. The order to hold shall expire 90 days from the date it is placed unless the Chief of Police, or the Chief’s designee, determines the hold is still necessary and notifies the licensee in writing.
(3) Order to confiscate. If an item is identified as stolen or evidence in a criminal case, the Chief, or Chief’s designee, may:
(a) Physically confiscate and remove it from the shop, pursuant to a written order from the Chief, or Chief’s designee; or
(b) Place the item on hold or extend the hold as provided in division (H)(2) above, and leave it in the shop. When an item is confiscated, the person doing so shall provide identification upon request of the licensee, and shall provide the licensee the name and phone number of the confiscating agency and investigator, and the case number related to the confiscation. When an order to hold/confiscate is no longer necessary, the Chief of Police, or Chief’s designee, shall so notify the licensee.
(I) Inspection of items.
(1) At all times during the terms of the license, the licensee must allow law enforcement officials to enter the premises where the licensed business is located, including all off-site storage facilities as authorized in division (O) below, during normal business hours, except in an emergency, for the purpose of inspecting the premises and inspecting the items, wares, and merchandise, and records therein, to verify compliance with this subchapter or other applicable laws.
(2) All merchandise received by a pawnbroker shall be subject to examination, during normal business hours, by any person claiming to have had any interest therein, when the person is accompanied by a police officer.
(J) Pawning of motor vehicle titles.
(1) In addition to the other requirements of state law, a pawnbroker who holds a title to a motor vehicle as part of a pawn transaction shall, pursuant to M.S. § 325J.095, as it may be amended from time to time:
(a) Be licensed as a used motor vehicle dealer under M.S. § 168.27, as it may be amended from time to time, and post the license on the pawnshop premises;
(b) Verify that there are no liens or encumbrances against the motor vehicle with the Department of Public Safety;
(c) Verify that the pledgor has automobile insurance on the motor vehicle as required by law; and
(d) A pawnbroker may not sell a motor vehicle covered by a pawn transaction until 90 days after recovery of the motor vehicle.
(2) A pawn transaction that involves holding only the title to property is subject to M.S. Chapter 168A or 336, as they may be amended from time to time.
(K) Label required. Licensees must attach a label to every item at the time it is pawned, purchased, or received in inventory from any reportable transaction. Permanently recorded on this label must be the number or name that identifies the transaction in the shop’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 is out of pawn or can be sold, if applicable. Labels shall not be re-used.
(L) Firearms and weapons. A pawnbroker shall not receive, display, or sell any merchandise through a pawn, purchase, or consignment or trade consisting of a revolver, pistol, shotgun, automatic rifle, semiautomatic military-style assault weapon (as defined by M.S. § 624.712, as it may be amended from time to time), switchblade knife, or other similar weapons or firearms.
(M) Risk of loss. In the event pledged goods are lost or damaged while in possession of the pawnbroker, the pawnbroker shall compensate the pledgor, in cash or replacement of goods acceptable to the pledgor, for the fair market value of the lost or damaged goods. Proof of compensation shall be a defense to any prosecution or civil action.
(N) License display. A license issued under this subchapter must be posted in a conspicuous place in the premises for which it is used. The license issued is only effective for the compact and contiguous space specified in the approved license application.
(O) Responsibility of licensee. A licensee under this subchapter shall be responsible for the conduct of the business being operated and shall maintain conditions of order. The conduct of agents or employees of a licensee engaged in performance of duties for the licensee shall be deemed the conduct of the licensee.
(P) Gambling. No licensee under this subchapter may keep, possess, or operate, or permit the keeping, possession, or operation on the licensed premises of dice, slot machines, roulette wheels, punchboards, blackjack tables, or pinball machines which return coins or slugs, chips, or tokens of any
kind, which are redeemable in merchandise or cash. No gambling equipment authorized under M.S. Chapter 349, as it may be amended from time to time, may be kept or operated, and no raffles may be conducted on the licensed premises and/or adjoining rooms. The purchase of lottery tickets may take place on the licensed premises as authorized by the director of the lottery pursuant to M.S. Chapter 349A, as it may be amended from time to time.
(Q) Penalty for properly owner. It is unlawful for any person who owns or controls real property to knowingly permit it to be used for pawn brokering without a license.
(R) Premises. All property deposited, left, pledged, pawned, or held for sale must be stored in an enclosed facility and may not be stored outside of the premises. The city may, however, permit the licensee to designate one off-premises locked and secured facility in which the licensee may store only cars, boats, and other motorized vehicles. The licensee shall permit immediate inspection of the facility at any time during business hours by the city. All provisions in this subchapter regarding record keeping and reporting shall apply to oversized items. All property shall be stored in compliance with zoning and/or fire regulations and in an orderly manner. The premises shall also be equipped with an operational security alarm.
(Prior Code, § 111.296)