ARTICLE V. PAWNBROKERS AND SECONDHAND DEALERS*

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*   Editors Note: Section 1 of Ord. No. 10254, adopted February 28, 2006, changed the title of this article from "Pawnbrokers, Secondhand Dealers and Junk Dealers" to "Pawnbrokers, Secondhand Dealers and Scrap Metal Dealers". Section 1 of Ord. No. 10854, adopted November 23, 2010, changed the title of this article from "Pawnbrokers, Secondhand Dealers and Scrap Metal Dealers" to "Pawnbrokers and Secondhand Dealers".

   Cross References: License fee for pawnbrokers, § 19-28(109); license fee for junk collectors, § 19-28(79); license fee for junk dealers, § 19-28(84).

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Sec. 7-97. Definitions.

   Sec. 7-97(1). In this article, the following terms shall have the meanings given in A.R.S. § 44-1621: identification document, loan, pawn ticket, pawn transaction, pawnbroker, pawnshop, pledged goods, pledgor, reportable transaction, and transaction date.

   Sec. 7-97(2). Jewelry includes gold, platinum, silver, gold-filled or plated ware, diamonds and other precious or semiprecious stones whether mounted or unmounted, cultured pearls, and watches, clocks and goods, wares and merchandise commonly classified as jewelry and commonly offered for sale in jewelry stores.

   Sec. 7-97(3). Secondhand dealer.

   (a)   Secondhand dealer means every person engaged in, conducting, managing or carrying on the business of buying, selling or otherwise dealing in secondhand goods, wares, merchandise or other articles, including:

   (1)   Coins, gems or semiprecious stones, jewelry, precious metals purchased from any person other than the original manufacturer or authorized distributor selling the same for money, credit or exchange, digital video discs, and all goods and articles that bear a serial number or owner applied number regardless of value; and

   (2)   All secondhand goods, wares, merchandise, or other articles that have a fair market value in excess of one hundred dollars ($100.00).

   (b)    The term defined in paragraph (a) includes:

   (1)   Every person engaged in the described business whether such business be the principal or sole business so carried on, managed or conducted, or be merely incidental to, in connection with or a branch or department of, some other business; and

   (2)   Any person or entity that conducts such activities at a location that is not that person's or entity's actual business address, such as a hotel, meeting hall, convention center, or other short term leased or rented location.

   (c)   The term secondhand dealer does not include organizations that are recognized as not for profit under the laws of this state or any other state, dealer to dealer transactions, or individuals or businesses conducting estate sales.

   Sec. 7-97(4). Transaction includes only those items required to be reported pursuant to section 7-98(b) but does not include compact discs, furniture, and books.

(1953 Code, ch. 19, § 1; Ord. No. 4716, § 2, 11-28-77; Ord. No. 9587, § 1, 8-6-01; Ord. No. 10254, § 2, 2-28-06; Ord. No. 10790, § 1, 5-18-10, eff. 7-1-10; Ord. No. 10854, § 2, 11-23-10, eff. 7-1-10)

Sec. 7-98. Duty to report receipt of articles to police.

   (a)   A pawnbroker shall make and deliver to the chief of police a true, complete, and accurate report of each article the pawnbroker receives through a reportable transaction, as provided by A.R.S. § 44-1625.

   (b)    It shall be unlawful for any secondhand dealer, or any employee or agent thereof, to fail, neglect, or refuse to deliver to the chief of police, within two (2) business days after the receipt thereof, a full, true, and complete report of the following enumerated goods, wares, merchandise, or other articles received at the secondhand dealer's place of business on deposit or by purchase, trade, or consignment:

   (1)   Coins;

   (2)   Gems or semiprecious stones;

   (3)   Jewelry;

   (4)   Precious metals purchased from any person other than the original manufacturer or authorized distributor selling the same for money, credit or exchange;

   (5)   Digital video discs, expanded memory cards, and games where the total value of such goods exceeds fifty dollars ($50.00);

   (6)   Bicycles;

   (7)   Golf clubs;

   (8)   Ballistic vests, bullet-proof vests, and body armor;

   (9)   Any good or article that bears a serial number or owner applied number; and

   (10)   Collectable goods and articles that contain autographs, limited edition designations, or number sequences.

   (c)   Any single good or article or combination of goods or articles that have a fair market value in excess of one hundred dollars ($100.00) shall be reported under section 7-98(b) notwithstanding the fact that such good or article or combination of goods or articles are not enumerated in the provisions of such section.

   (d)   Transactions may not be split into smaller portions for the purpose of avoiding the reporting requirements of subsections (b)(5) or (c).

(Ord. No. 1053 Code, ch. 19, § 2; Ord. No. 2819, § 1, 10-11-65; Ord. No. 4716, § 3, 11-28-77; Ord. No. 8176, § 1, 12-13-93; Ord. No. 9587, § 2, 8-6-01; Ord. No. 10254, § 3, 2-28-06; Ord. No. 10790, § 1, 5-18-10, eff. 7-1-10; Ord. No. 10854, §§ 3, 4, 11-23-10, eff. 7-1-10)

Sec. 7-99. Contents of report to police.

The report required by section 7-98 shall include the following:

   (1)   The last, first and middle name of the pledgor or seller;

   (2)   The permanent address and telephone number, if applicable, of the pledgor or seller;

   (3)   The physical description of the pledgor or seller including height, weight, hair and eye color, sex, race, date of birth, prominent scars and other distinguishing features;

   (4)   The number and type of the identification document presented by the pledgor or seller;

   (5)   An accurate, legible description of each item pledged or sold, including the manufacturer's name, model number, serial number, caliber, size, type of item and any owner applied number, inscription or monogram;

   (6)   The pawnbroker's or secondhand dealer's name and address and the initials or identifying number of the employee who received the item;

   (7)   The date and time of the initial pawn or purchase transaction;

   (8)   The type of transaction and initial pawn ticket number;

   (9)   The amount loaned or paid in the transaction;

   (10)   A fingerprint of the pledgor or seller only as required by state law.

(1953 Code, ch. 19, § 3; Ord. No. 4716, § 4, 11-28-77; Ord. No. 9587, § 3, 8-6-01; Ord. No. 10254, § 4, 2-28-06; Ord. No. 10790, § 1, 5-18-10, eff. 7-1-10)

Sec. 7-100. Form of reports; when due; imposition of fee.

   (a)   All reports required by section 7-98 shall be written or printed entirely in the English language on forms provided by the chief of police in a clear and legible manner and shall be delivered to the chief of police by electronic means as approved by the chief of police. The fingerprint required by section 7-99 shall be affixed in the manner described on the form. All such reports shall be delivered within two (2) business days after the receipt of an item through a reportable transaction or transaction. Such reports may be submitted to the chief by electronic means as determined by the chief.

   (b)    Each transaction report shall include no more than three (3) items. For the purposes of this subsection, multiple nonserialized items of the same type (e.g. rings) that are delivered in a single transaction and that have no owner assigned numbers, engravings, inscriptions, monograms or other unique identifying characteristics, may be considered as one item on the report (e.g. "six (6) silver rings").

   (c)    Each pawnbroker and secondhand dealer shall pay to the city a fee in the amount of one dollar ($1.00) for each report required to be prepared pursuant to A.R.S. § 44-1625(A) and section 7-98. This fee shall be due and payable to the city on the 20th day of April, July, October, and January and shall be based on the number of reports submitted to the city during each quarter.

(Ord. No. 4716, § 5, 11-28-77; Ord. No. 9587, § 4, 8-6-01; Ord. No. 10790, § 1, 5-18-10, eff. 7-1-10)

   Editors Note: Ord. No. 4716, § 1, adopted Nov. 28, 1977, specifically amended the Code by repealing former §§ 7-100--7-106, which had pertained to reports, records of transactions, dealing with minors, doubtful ownership, and violation. The sections had been derived from the 1953 Code, ch. 19, §§ 4--10, and Ord. No. 2819, § 2, adopted Oct. 11, 1965. §§ 5--8 of Ord. No. 4716 added new §§ 7-100--7-103 as herein set out.

Sec. 7-101. Requirements; record of transactions; police department hold on property.

   (a)   Every secondhand dealer within the city shall keep a permanent record at his place of business, in which a complete record of all transactions required to be reported under this article shall be entered in the English language in a clear and legible manner and at the time when the transaction takes place. Such record shall contain all the information required to be reported to the chief of police under the provisions of sections 7-98 and 7-99 and shall be retained for no less than two (2) years from the date of the last entry.

   (b)   The record of transactions required by subsection (a) shall be available for inspection by the chief of police or his designated representative during normal business hours.

   (c)   Whenever there exists probable cause to believe that property in the possession of a pawnbroker, secondhand dealer, or other person is stolen, a police officer or person so designated by the chief of police may place a hold on the property for a period up to ninety (90) days. When a police officer or designee places a hold on the property, the police officer or designee shall initiate such hold by contacting the pawnbroker or secondhand dealer in person or by telephone and informing the pawnbroker or secondhand dealer of the hold and describing the item or items to be held. Within three (3) days of the initial contact, the police officer or designee shall deliver or mail to the pawnbroker or secondhand dealer a written notice of the hold. The written notice shall include a description of the item or items to be held.

   (d)   Whenever property that is in the possession of a pawnbroker, secondhand dealer, or other person is subject to a hold and the property is required by a police officer in a criminal investigation or for use as evidence in a criminal proceeding, the pawnbroker, secondhand dealer, or other person upon reasonable notice, shall deliver the property to any police officer.

   (e)   The police department may extend a hold placed pursuant to this section for the purpose of criminal investigation or for use in any judicial proceeding, including that set forth in this article. Any extended hold shall be no longer than is reasonably necessary.

   (f)   Whenever property that is in the possession of a pawnbroker, secondhand dealer, or other person is subject to a hold and the property is no longer required for the purpose of criminal investigation or any criminal proceeding, and more than one person can reasonably be anticipated to make a claim for possession of the property, the police department may follow the procedures set forth in this article for disposition of the property within forty-five (45) days of the conclusion of the criminal investigation or criminal proceeding.

   (g)   Whenever property that is in the possession of the police department pursuant to the procedures set forth in this section is no longer required for the purpose of criminal investigation or for use as evidence in any criminal proceeding, the police department may follow the procedures set forth in this article for disposition of the property within forty-five (45) days of the conclusion of the criminal investigation or proceeding.

(Ord. No. 4716, § 6, 11-18-77; Ord. No. 8680, § 1, 4-22-96; Ord. No. 9587, § 5, 8-6-01)

   Note: See editor's note following § 7-100.

Sec. 7-102. Prohibited acts.

   (a)   A pawnbroker, secondhand dealer, or any employee or agent thereof shall not:

   (1)   Receive any goods, wares, merchandise or other articles that are required to be reported by this article whether on deposit, in pawn or pledge, or by purchase or otherwise from any person under the age of eighteen (18) years, or from any person who is at the time intoxicated.

   (2)   Purchase or otherwise take any goods, wares, merchandise or other articles that are required to be reported by this article without first taking reasonable steps, including requiring the pledgor or seller to produce an identification document, to ascertain that such goods, wares, merchandise or other articles are the property of the person offering to deposit, pawn, pledge or sell the same.

   (3)   Purchase or otherwise take any goods, wares, merchandise or other articles, knowing or having reason to know that such goods, wares, merchandise or other articles are stolen.

   (4)   Sell, trade, transfer, or dispose of any goods, wares, merchandise, or other articles that are required to be reported under this article until twenty (20) days after filing the report required by section 7-98. For the purposes of this section, the twenty (20) day retention period begins upon receipt of the electronic transmission of the transaction report, as approved by the chief of police.

   (5)   Sell, trade, transfer or dispose of any goods, wares, merchandise or other articles subject to a police department hold described by section 7-101 except pursuant to a court order, order of a hearing officer issued pursuant to this article, or upon receipt of a written authorization signed by any police officer.

   (6)   Purchase, receive, sell or transfer any item from which a manufacturer's serial number or model designator has been removed, altered or tampered with. These items shall be reported to the police department.

   (7)   Refuse to permit the chief of police or a designated representative to enter such business, during normal business hours, for the purpose of inspecting such goods or records.

   (8)   Fail to pay the transaction fee required to be paid by section 7-100(c) at the time so required.

   (b)   No secondhand dealer may sell, trade, transfer, purchase, receive, or otherwise take or dispose of any goods, wares, merchandise or other articles that are required to be reported under this article without first obtaining the appropriate licenses from the finance department and paying the tax imposed by section 19-85. In addition, all secondhand dealers and pawnbrokers shall attend any training required by the chief of police regarding the requirements under this article. Each attendee shall be given a copy of this article after completing such training and acknowledging receipt thereof.

   (c)   In any transaction with a secondhand dealer, no pledgor or seller shall provide false information concerning the pledgor's or seller's: name, address, phone number or rightful ownership.

(Ord. No. 4716, § 7, 11-28-77; Ord. No. 8680, § 2, 4-22-96; Ord. No. 9587, § 6, 8-6-01; Ord. No. 10254, § 5, 2-28-06; Ord. No. 10790, § 2, 5-18-10, eff. 7-1-10)

   Note: See editor's note following § 7-100.