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HomeMy WebLinkAbout091 - 08/15/2000 - AMENDING CHAPTER 15, ARTICLE VIII OF THE CITY CODE RELATING TO PAWNBROKERS ORDINANCE NO. 91, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 15, ARTICLE VIII OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO PAWNBROKERS WHEREAS,Chapter 15,Article VIII of the City Code contains various provisions regulating the operation of pawnbrokers in the City in the interest of the public health, safety and welfare; and WHEREAS, pawnbroker establishments in the City report a large number of purchase transactions and contracts for purchase to the Fort Collins Police Services on a weekly basis; and WHEREAS, a uniform and clear record keeping process needs to be established for consistent use by all such businesses to promote compliance with both state and local regulations; and WHEREAS, there is also a need to clarify when,how and under what circumstances a police officer may hold property of pawnbrokers believed to have been stolen; and WHEREAS, Fort Collins Police Services is incurring substantial costs specifically related to monitoring the operation of, processing data from, and entering data into the NCIC and CCIC systems from pawnbroker establishments in the City; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS,that Article VIII of Chapter 15 of the Code of the City of Fort Collins is hereby amended to read as follows: ARTICLE VIII. PAWNBROKERS Sec. 15-261. Definitions. The following words,terms and phrases,when used in this Article,shall have the meanings ascribed to them in this Section: Contract for purchase shall mean a contract entered into between a pawnbroker and a customer pursuant to which money is advanced to the customer by the pawnbroker on the delivery of tangible personal property by the customer,for a fixed ` price within a fixed period of time,with the understanding that the customer has the option to cancel the contract. Customer shall mean a person who delivers personal property into the possession of a pawnbroker for the purpose of entering into a contract for purchase or a purchase transaction. Fixed price shall mean the amount agreed upon to cancel a contract for purchase during the option period. Fixed period of time shall mean that period of time not to exceed ninety(90)days set forth in a contract for purchase within which the customer has the option to cancel the contract. Manager shall mean a person employed by a pawnbroker who is designated as manager or whose duties entail the exercise of discretion and independent judgment in the administration of the affairs of a pawnbroker's business and the supervision of other employees, as well as the making of loans, the execution of any documents required to be prepared pursuant to this Article, and\or the purchasing of goods or property on behalf of the business. Pawnbroker shall mean a person regularly engaged in the business of making contracts for purchase and purchase transactions in the course of said business. Pawnbroker shall include,without limitation,all owners,managers or employees of a pawnbroker business required to be licensed by the city whose regular duties include making contracts for purchase, purchase transactions or executing any documents required to be prepared pursuant to this Article. Peace officer shall mean any undersheriff, or deputy sheriff (other than one appointed with authority only to receive and serve summons and civil process), police officer,state patrol officer,town marshal,or investigator for a district attorney or the Attorney General, who is engaged in full-time employment by the state or a city, county, town or judicial district within this state. Purchase transaction shall mean the purchase by a pawnbroker, in the course of his or her business, of tangible personal property for resale, other than newly manufactured tangible personal property which has not previously been sold at retail, when such purchase does not constitute a contract for purchase. Tangible personal property shall mean all personal property other than choses in action, securities or printed evidence of indebtedness, which property is deposited with or otherwise actually delivered into the possession of a pawnbroker, in the course of business, in connection with a contract for purchase or purchase transaction. 2 Sec. 15-262. License required. It shall be unlawful for any person to engage in the business of pawnbroking except as provided in and authorized by this Article and without first having obtained a license from the Financial Officer. Such license shall be kept current at all times, and the failure to maintain a current license shall constitute a violation of this Section. Sec. 15-263. Annual license fee. The annual license fee for carrying on the business of pawnbroking shall be three hundred dollars($300), which shall be submitted together with an application for such license to the Financial Officer. Said license fee is non-refundable, unless the application is denied. Sec. 15-264. Surety bond required. The licensee or applicant shall furnish the city's Financial Officer with a good and sufficient bond,with a surety to be approved by the Financial Officer,in the sum of two thousand five hundred dollars ($2,500.), which bond shall be conditioned upon the pawnbroker's compliance with all provisions of this Article, including, without limitation, the payment of all surcharges and fees. Sec. 15-265. Investigation and approval of licensees and managers required. (a) No license shall be issued by the Financial Officer until the application for a license has been investigated by the Chief of Police. Each applicant shall pay a non-refundable investigation and/or fingerprint and photograph fee at the time the application is filed in an amount not to exceed that charged by the Colorado Bureau of Investigation. Further, each applicant shall furnish a birth certificate, alien registration card, or other reasonable identification card to prove the applicant's name, date of birth and residency, and shall provide any other information which is requested on the application. (b) No licensee shall employ a personas a manager,nor shall any person accept such employment, unless such person has been investigated and been granted a manager's certificate by the Chief of Police pursuant to the following: (1) Prior to becoming employed by a licensee, an applicant for a manager's certificate, or for the renewal of such certificate, shall be fingerprinted and photographed by the Office of Police Services. Each applicant for a certificate, or renewal of a certificate, shall furnish a birth certificate,alien registration card,or other reasonable identification card to prove the applicant's name, date of birth and 3 residency,and shall provide any other information which is requested on the application. (2) An applicant for a manager's certificate shall pay a non-refundable fingerprint and investigation fee in an amount not to exceed that charged by the Colorado Bureau of Investigation. If, however, the applicant can provide proof of a criminal history investigation completed by the Colorado Bureau of Investigation within the year immediately preceding the application,such person need only submit a fingerprint card and photograph and pay the associated fee. (3) Each manager's certificate shall have clearly imprinted thereon a statement that it is valid only for the period of time specified thereon, and only in the pawn industry. A provisional certificate shall be issued by the Chief of Police upon filing of the application, which provisional certificate shall remain in effect during the pendency of an applicant's background investigation.Each provisional or regular manager's certificate shall be stamped with the name of the pawnbroker and business location(s)for which it is valid. A regular certificate issued shall be for a maximum period of three (3) years; and such certificate shall automatically expire: (i) upon a change of employment by the certificate holder,unless renewed within ten(10) days thereafter, or (ii) if the holder is not employed in the pawn industry within the city for a period of ninety (90) days or more. A manager's certificate which has expired may be renewed by the application process described above. (4) A manager's certificate may,in the discretion of the Chief of Police, be revoked when the holder has been determined by the Chief to be in violation of any of the provisions of this Article. (5) Any applicant who has made a false statement upon the application for a pawnbroker license and\or application for a manager's certificate, in addition to being subject to revocation of said license and\or certificate,commits a misdemeanor punishable under§ 1-15. (c) No pawnbroker license or manager's certificate shall be renewed or issued to the following persons under the provisions of this Article: (1) Subject to the provisions contained in Section 24-5-101, C.R.S., a person who has been convicted of: any felony or any crime which under the laws of this state would be a felony; any crime of which fraud or intent to defraud was an element, whether in this state or elsewhere;any crime of embezzlement or larceny against an employer 4 or business; or any criminal conviction or civil violation related to any law or ordinance pertaining to the pawn industry; (2) Any person under the age of eighteen (18); (3) Any person who has made a false,misleading,or fraudulent statement on his or her application for license or a manager's certificate. (d) No employee under eighteen (18) years of age shall make loans, purchase any goods or property on behalf of the business, or execute any document required to be prepared pursuant to this Article, unless such employee is under the direct supervision of a manager who is physically present on the licensed premises. (e) Within forty-five (45) days of receipt of an application for a new license or to renew a license, the Financial Officer shall issue or renew such license, provided that the Chief of Police after investigation has determined that the applicant will or has operated the business in such a manner as to fully comply with the requirements and purposes of this Article. A decision regarding said determination shall also be made by the Chief of Police within forty-five(45)days of receipt of an application for license or renewal. (f) Licenses shall be limited to use at the premises specified in the application. Such license shall not be transferable. (g) The revocation,suspension or denial of the issuance or renewal of a license or manager's certificate may be appealed to the City Manager,whose decision, after notice and hearing, shall be final. Further appeal may be had pursuant to Colorado Rules of Civil Procedure. Sec. 15-266. Required books and records. (a) Every pawnbroker shall keep books and records sufficient to identify each pledge,contract for purchase or purchase transaction,and each forfeiture of property pursuant to the terms of a contract for purchase. Every customer shall provide to the pawnbroker the following information for such books and/or records: (1) The customer's name and date of birth; 5 (2) The current street address, city, state and zip code of the customer's residence; (3) The customer's identification from: a. An identification card issued in accordance with Section 42- 2- 302, C.R.S.; b. A valid state driver's license; C. A valid driver's license containing a picture issued by another state; d. A military identification card; e. A valid passport; f. An alien registration card; or g. A non-picture identification document issued by a state or federal government entity, if in addition to the document,the secondhand dealer also obtains a clear imprint of the consignor's, seller's or trader's right index finger (or in the event the right index finger is missing, then the customer's left index finger); and (4) A clear imprint of the person's right index finger. In the event that the right index finger is missing, the customer's left index finger shall be imprinted or,if the left index finger is missing,then any other of the customer's fingers or thumbs may be imprinted. If all fingers and thumbs are missing,this fingerprint requirement shall not apply. (b) All transactions shall be kept in a numerical register in the order in which they occur, which register shall show the printed name and signature of the pawnbroker or agent,the purchase price or other monetary amount of the transaction, the date,time and place of the transaction, and an accurate and detailed account and description of each item of tangible personal property involved, including but not limited to any and all trademarks, identification numbers, serial numbers, model numbers, owner-applied numbers, brand names, or other identifying marks on such property. The books and records of the licensee shall also reveal the date on which each extension of credit under a contract for purchase was terminated and whether and by whom the pawned personal property of the customer was redeemed,renewed, or forfeited upon the expiration of the contract for purchase. (c) If the pawned personal property is redeemed by a person other than the original customer, the person redeeming the property shall provide to the pawnbroker, and the pawnbroker shall record, the following information: (1) The person's name and date of birth; 6 (2) The current street address,city,state and zip code of the person's residence; (3) The person's driver's license number or other identification number from any other form of identification which is allowed under§15-266(a)(3);and (4) A clear imprint of the person's right index finger. In the event that the right index finger is missing, the customer's left index finger shall be imprinted or, if the left index finger is missing, then any other of the customer's fingers or thumbs may be imprinted. If all fingers and thumbs are missing, this fingerprint requirement shall not apply. Sec. 15-267. Declaration of ownership. (a) The pawnbroker shall at the time of making the loan contract for purchase or purchase transaction obtain a written declaration of ownership from the customer stating: (1) Whether the property that is the subject of the transaction is solely owned by the customer and, if not solely owned by the customer, the customer shall attach a power of attorney from all co-owners of the property authorizing the customer to sell or otherwise dispose of the property; (2) How long the customer has owned the property; (3) Whether the customer or someone else found the property; and (4) If the property was found, the details of the finding. (b) The pawnbroker shall require the customer to sign his or her name , in the presence of the pawnbroker,on the declaration of ownership and in the register to be kept under this Article. Each such declaration shall also be signed by the pawnbroker at the time of the transaction. The customer shall be given a copy of the contract for purchase or a receipt for the purchase transaction. Sec. 15-268. Requirements for records. (a) All records required to be kept under this Article must be kept in the English language,in a legible manner and shall be preserved and made accessible for inspection for a period of three(3)years after the date of redemption or forfeiture and sale of the property. Information from records and fingerprints inspected by the Office of Police Services pursuant to this Article shall be used for regulatory and law enforcement purposes only. 7 (b) A copy of any record required to be kept under this Article, together with a copy of the record of each contract for purchase or purchase transaction, shall be made available to the Office of Police Services each day so that said Office may maintain a complete record of all business transactions of the pawnbroker. It shall be the responsibility of the Office of Police Services to pick up the copies from the pawnbroker. Sec. 15-269. Maximum fixed period of time; maximum interest rates; commissions prohibited. (a) No contract for purchase shall be for a fixed period of time of more than ninety (90) days. (b) No pawnbroker shall ask,demand or receive any fixed price that exceeds the following limits: (1) On contracts for purchase in the original amount of less than fifty dollars ($50.), the maximum fixed price shall be no more than one fifth (1/5) of the original purchase price for each month the contract for purchase is in effect, plus the amount of the original purchase price; and (2) On contracts for purchase in the original amount of fifty dollars($50) or more, the maximum fixed price shall be no more than one tenth (1/10) of the original purchase price for each month the contract for purchase is in effect,plus the amount of the original purchase price. Sec. 15-270. Intermediate payments upon loans. Pawnbrokers shall accept any intermediate payment offered by a customer upon a loan made under a contract for purchase which has not matured , so long as such payment is equal to or greater than ten (10) percent of the fixed price as defined in §15-261, together with accrued charges. The acceptance of payments in lesser amounts shall be discretionary with the pawnbroker. A receipt showing the date of the payment and the amount shall be given to the customer for all monies received on account of or in payment of loans made under a contract for purchase. Sec. 15-271. Holding period and sale of tangible personal property. (a) A pawnbroker shall hold all property purchased by him or her through a purchase transaction for thirty(30)days following the date of purchase during which time such property shall be held separate and apart from any other tangible personal property and shall not be changed in form or packaging or altered in any other way. 8 (b) A pawnbroker shall hold all goods received through a contract for purchase within his or her jurisdiction for a period of ten(10)days following the maturity date of the contract for purchase,during which time such goods shall be held separate and apart from any other tangible personal property and shall not be changed in form or packaging or altered in any way. If the customer has failed or neglected to redeem such property on or before the maturity date of the contract by repayment of the balance of the principal and payment of all accrued interest charges,the pawnbroker shall, immediately upon maturity of the contract, mail with sufficient postage a notice of the impending sale of the property delivered under the contract. Such notice shall be mailed to the customer at the address shown on the contract pertaining to the transaction. Ten (10) days shall be allowed from the date of mailing of the notification for the customer to appear and reclaim the property or make satisfactory payments upon it. The pawnbroker shall not sell or otherwise dispose of the property prior to the expiration of the ten-day period. Sec. 15-272. Hold orders; surrender of property; inspection of records and premises. (a) Any peace officer may order a pawnbroker to hold any tangible personal property deposited with or in custody of any pawnbroker, if the officer has reasonable suspicion to believe that such property is connected with criminal activity, for purposes of further investigation. No sale or other disposition may be made of such property held by any pawnbroker while the hold order remains outstanding. Any such hold order shall be effective for ninety (90) days only, unless a criminal prosecution is undertaken with regard to any such property within such ninety -day period, in which event the hold order shall remain in effect until the prosecuting agency has notified the pawnbroker that the prosecution has been completed or dismissed. (b) Unless a warrant is required by law or consent is given, if any peace officer determines, after investigation, that any article of personal property held by a pawnbroker is stolen or illegally obtained property, such officer may take such property into evidence after giving the pawnbroker a receipt for it which sets forth the Police Services' case number as well as the reason for the confiscation. (c) The physical premises of any licensed pawnbroker business,including any area in which tangible personal property is located, shall be subject to inspection by the Office of Police Services during all business hours and other times of apparent activity, for the purpose of investigation and inspection of books, records and inventory. Where any part of the licensed premises consists of a locked area, such area shall be made available for inspection, without delay, upon the request of any member of the Office of Police Services. For the purposes of this provision, the term "licensed premises" shall not include any private residence adjacent to the licensed premises except such portion of said residence, if any, that is used in the 9 operation of the business of the pawnbroker. Except for items in plain view, if any inspection is conducted hereunder,the peace officer conducting such inspection shall document the same on a form approved by the Office of Police Services and shall, within twenty-four(24)hours of conducting such inspection,provide a copy thereof to the pawnbroker. Sec. 15-273. Prohibited transactions. (a) It shall be unlawful for any pawnbroker to accept any tangible personal property under a contract for purchase or purchase transaction from the following: (1) Any person under eighteen (18) years of age; (2) Any person under the influence of alcohol or any narcotic drug or stimulant; (3) Any person known to such pawnbroker to have been convicted of larceny, theft or burglary without first notifying the Office of Police Services. (b) With respect to a contract for purchase, no pawnbroker may permit any customer to be obligated on the same day in any way under more than one (1) contract for purchase agreement with the pawnbroker which would result in the pawnbroker's obtaining a greater amount of money than would be permitted if the pawnbroker and customer had entered into only one (1) contract for purchase covering the same tangible personal property. (c) No pawnbroker shall violate the terms of a contract for purchase. Sec. 15-274. Business limited to one location. A pawnbroker shall conduct his pawnshop business from only one (1) business location, which shall be the location listed on the pawnbroker's license. This provision shall not prohibit a pawnbroker from using warehouses or other storage locations away from the licensed place of business, but such other location shall be used only if the pawnbroker first submits notice to the Financial Officer in writing of such off-site locations. Such off-site locations shall be open to any peace officer for inspection as provided for in §15-272(c). Sec. 15-275. Violations and penalties. In addition to the revocation, suspension or denial of a license or manager's permit issued, any person, including but not limited to any customer or pawnbroker, 10 who violates any of the provisions of this Article, shall be guilty of a misdemeanor punishable in accordance with §1-15. Sec. 15-276. Notice of penalties required. Every pawnbroker shall conspicuously post a notice, provided by the Office of Police Services, in a place clearly visible to all customers which sets forth the penalties of this Article and of Section 12-56-104(5), C.R.S., concerning false information to a pawnbroker and Section 18-4-410, C.R.S., concerning theft by receiving. Such notification shall include information to the effect that stolen property may be confiscated by any peace officer and returned to the rightful owner without compensation to the buyer; and may also include any information regarding any reimbursement policy of the pawnbroker regarding confiscation. Introduced, considered favorably, and ordered published this 18th day of July, A.D. 2000, and to be presented for final passage on the 15th day of August, A.D. 2000. , Mayor ATTEST: City Clerk Passed and adopted on final reading this 15th day of August, A.D. 00. M or A,TTEST: City Clerk , 11