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HomeMy WebLinkAbout092 - 08/15/2000 - AMENDING CHAPTER 15, ARTICLE XI OF THE CITY CODE RELATING TO SECONDHAND DEALERS ORDINANCE NO. 92, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 15, ARTICLE XI, OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO SECONDHAND DEALERS WHEREAS,Chapter 15,Article XI of the City Code contains various provisions regulating the operation of secondhand dealers in the City in the interests of the public health, safety and welfare; and WHEREAS, the current definition of "personal property" contained within the City Code does not include certain items such as computers,musical instruments and videos that are commonly pawned, traded and sold, so that such definition should be amended; and WHEREAS, secondhand dealer establishments in the City report a large number of transactions 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 secondhand dealers believed to have been stolen; and WHEREAS, Fort Collins Police Services is incurring substantial costs specifically related to monitoring the operation of secondhand establishments in the City; and WHEREAS, the Council believes it to be in the best interests of the City to increase the licensing fee to help defray these costs. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Article XI of Chapter 15 of the Code of the City of Fort Collins is hereby amended to read as follows: ARTICLE XI. SECONDHAND DEALERS Sec. 15-316. Definitions. The following words, terms and phrases, when used in this Article, shall have the meanings ascribed to them in this Section: Conditional sale or consignment shall mean a transaction wherein: (a) secondhand property is delivered to a dealer for sale by the property owner, and(b) the secondhand dealer is required to either sell the goods for the person making the delivery and remit the price or, if the goods are not sold, return the goods to the person making delivery. 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. Secondhand dealer shall mean any person who accepts on consignment, sells or trades any secondhand property; provided however, that this definition and the terms of this Article shall not apply to the following: (1) A person who accepts on consignment, trades or sells no more than twelve (12) items of secondhand property per year from a permanent storefront location, and none of the items consigned, traded or sold carries a manufacturer or serial number; (2) A person or organization selling or trading secondhand property at an exhibition or show which is intended to display and advertise a particular commodity or class of product, including, but not limited to, antique exhibitions,firearm exhibitions,home and garden shows and recreational vehicle shows; (3) A person or organization which is charitable, nonprofit, recreational, fraternal or political in nature or which is exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code of 1986; (4) A person selling or trading firewood, Christmas trees, plants, food products,agricultural products,fungible goods,pets,livestock,or arts and crafts, excluding jewelry and items crafted of gold or silver, if sold or traded by the artist or craftsman, his or her immediate family or regular employees; (5) A person accepting on consignment, selling or trading secondhand property which was not originally purchased by such person for resale, so long as such person does not accept on consignment, sell or trade secondhand property more than five (5) weekend periods in one (1) calendar year as verified by a declaration to be prepared by the seller. For purposes of this subsection, weekend period means Friday through the immediately following Monday. 2 Secondhand property shall mean the following items of tangible personal property consigned, sold or traded by a secondhand dealer: (1) Camera equipment,including,but not limited to:cameras,camera lenses, slide or movie projectors, projector screens, flashguns, light meters, enlargers, tripods, binoculars, telescopes, microscopes and video recording cameras and their components; (2) Entertainment equipment, including, but not limited to: televisions, phonographs, tape recorders, video recorders/players, radios, tuners, speakers, turntables, amplifiers, musical instruments, record changers, citizens'band broadcasting units and receivers, video game systems and compact disc players; (3) Sporting goods and jewelry,including,but not limited to: skis,ski poles, ski boots, ski bindings, in-line skates, snowboards, skateboards, golf clubs, guns,jewelry, coins, luggage, boots and furs; (4) Home\office equipment,including,but not limited to:typewriters,adding machines, calculators, computers, and any other computer components, portable air conditioners, cash registers, copying machines, dictating machines, automatic telephone answering machines, sewing machines, fax machines, cellular or mobile telephones and pagers; (5) Bicycles, including but not limited to: bicycle frames, bicycle derailleur assemblies,bicycle handbrake assemblies and other bicycle components; and (6) Any item of tangible personal property which is marked with a serial or identification number and the selling price of which is thirty dollars ($30.) or more, except motor vehicles, ranges, stoves, dishwashers, refrigerators,garbage disposals,boats,airplanes,clothes washers,clothes dryers, freezers, mobile homes and nonprecious scrap metal. Sec. 15-317. License required; annual fee. (a) It shall be unlawful for any person to engage in the business of secondhand dealing 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 failure to maintain a current license shall constitute a violation of this Section. (b) The annual license fee for carrying on the business of secondhand dealing shall be one hundred dollars ($100.), which shall be submitted together with an 3 application to the Financial Officer. Said license fee is non-refundable, unless the application is denied. Sec.15-318. Application for secondhand dealer license;renewal;limitation on use; appeals. (a) No license shall be issued by the Financial Officer until the application for a license has been filed with the city and investigated by the Chief of Police. Each applicant shall pay a non-refundable investigation and fingerprint 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 license 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 or business; or any criminal conviction or civil violation related to any law or ordinance pertaining to the secondhand dealer or pawn industry; (2) Any person under the age of eighteen (18); and (3) Any person who has made a false, misleading, or fraudulent statement on his or her application for the secondhand dealer license. (c) 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 has operated the business in such a manner as to fully, comply with the requirements of this Article. (d) Licenses shall be limited to use at the premises specified in the application. No such license shall be transferable. (e) The revocation,suspension or denial of the issuance or renewal of a license may be appealed to the City Manager whose decision,after notice and hearing, shall be final. Further appeal may be taken pursuant to Colorado Rules of Civil Procedure. 4 Sec. 15-319. Sales tax license required. In addition to the secondhand dealer license,every secondhand dealer shall also obtain a sales tax license as provided in Section 39-26-103, C.R.S., except that secondhand dealers and other persons operating a flea market or similar facility shall not be required to obtain a sales tax license,but shall be required to collect the sales tax and to remit the proceeds of said tax to the operator of the flea market or similar facility as provided by this Article. The operator shall obtain a sales tax license which is applicable to all sales occurring at the flea market or similar facility and shall collect the sales tax from each secondhand dealer operating therein who does not have his or her own sales tax license and shall remit such proceeds as provided by law for the remittance of sales taxes. Sec. 15-320. Keeping of records required. Every dealer licensed under this Article shall keep at his or her place of business an accurate, detailed record of every article of secondhand property acquired by purchase,consignment or trade. Such record shall include,and the seller,consignor or trader must provide at the time of the sale, consignment or trade, the following: (1) The name and date of birth of the consignor, seller or trader; (2) The current street address of the consignor's, seller's or trader's residence; (3) The date, time and place of the consignment, sale or trade, and the purchase price or other monetary amount of the transaction; (4) An accurate and detailed account and description of the item consigned, sold or traded, including, but not limited to, any and all trademarks, identification numbers, serial numbers, owner-applied numbers, model numbers, brand names or other identifying marks on such item; (5) The identification number from any of the following forms of identification of the consignor, seller or trader: 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 5 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). (6) A written declaration of ownership obtained from and signed by the seller, consignor, or trader in the presence of the secondhand dealer stating: a. whether such property that is the subject of the transaction is solely owned by the consignor, seller or trader and if not solely owned, attaching a power of attorney from all co-owners of the property authorizing the seller,consignor or trader to sell or otherwise dispose of such property; b. how long the seller, consignor or trader has owned the property; c. whether the consignor, seller or trader or someone else found the property; and d. if the property was found,a detailed description of the circumstances under which the property was found. (7) A declaration by the secondhand dealer that the secondhand dealer is the rightful owner of the secondhand property and a description of how the secondhand dealer obtained the property, including the serial number of such property, if available, or a copy of the bill of sale of such property; and (8) A declaration by the secondhand dealer that the secondhand dealer has knowledge of the requirement that a record of the sale or trade must be mailed or delivered to the local law enforcement agency, as required by §15-321 and by Section 18-13-114(1), C.R.S. Sec. 15-321. Forms to be sent to police and open to inspection. (a) Every secondhand dealer shall make such record as required by§15-320 upon forms to be delivered to such dealer by the Office of Police Services. A secondhand dealer shall mail or deliver the record of the consignment, sale or trade to the Office of Police Services within three(3)days of the date of such consignment, sale or trade and shall keep a copy of such record for at least three(3)years after the date of the consignment, sale or trade. (b) Upon request during ordinary business hours,the secondhand dealer shall submit and exhibit the records required to the inspection of any regular peace officer and permit any officer to make a copy. The dealer shall,upon request,exhibit for the 6 inspection of any of the officers any personal property or merchandise that may be received by the dealer. Sec. 15-322. Records for sales tax collection for flea market sales. (a) Every secondhand dealer or any person who is a dealer of new goods who is a retailer and sells such goods at a flea market or similar facility or any nonpermanent location shall keep and preserve suitable records of consignments, trades or sales made and such other books or accounts as may be necessary to determine the amount of tax for the collection of which the dealer is liable under Title 39, Article 26, Part 1, C.R.S. (b) It is the duty of every such person to keep and preserve for a period of three(3)years all invoices of goods and merchandise purchased for resale. All such books, invoices and other records shall be open for examination at any time by the Executive Director of the state Department of Revenue, said Director's duly authorized agents, or any peace officer. (c) In the case of flea markets and similar facilities in which secondhand property is offered for sale, on consignment, or trade, the operator thereof shall inform each secondhand dealer of the requirements of this Article and shall provide the form for recording the information required by § 15-320. (d) In the case of flea markets and similar facilities in which secondhand property is offered for sale, consignment or trade, the operator thereof shall record the name and address of each secondhand dealer offering secondhand property for sale,consignment or trade at the flea market or similar facility,and the identification number of such dealer as obtained from any of the forms of identification enumerated in§15-320(4). Such record shall be mailed or delivered by the operator to the Office of Police Services within three (3) days of the date the secondhand dealer offered secondhand property for sale, consignment or trade at the flea market or similar facility. A copy of such record shall be retained by each secondhand dealer offering secondhand property for sale, consignment or trade at the flea market or similar facility. Sec. 15-323. Notice; penalties. Except in the case of flea markets and similar facilities as provided in this Article,every secondhand dealer shall conspicuously post a notice to be provided by the Office of Police Services in a place clearly visible to all buyers and traders which sets forth the provisions of this Article and of Sections 18-13-114 through 18-13- 116, C.R.S., and which sets forth the penalties for violating such sections and for violating 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 7 peace officer and returned to the rightful owner without compensation to the buyer. Said notice may also include information regarding any reimbursement policy of the dealer. In the case of flea markets and similar facilities, the operator shall post the notice required by this Section in such a manner as to be obvious to all persons who enter the flea market or similar facility. Sec. 15-324. Certain property to be held and inspection of premises. (a) Every secondhand dealer shall keep all secondhand property acquired by purchase or trade for a period of thirty (30) days before it is sold and, during such period of time, such property shall not be changed in form or packaging or altered in any other way;provided,however,that serialized property,and stamped and assayed gold and silver bullion and gold coins,may be sold or transferred after ten(10)days, so long as the secondhand dealer records: (1) The identity and residential address of any person to whom the secondhand dealer sells or transfers such property by any means provided for in §15-320(6), and (2) the date, time and place of such sale or transfer. (b) Any peace officer may order a secondhand dealer to hold any tangible personal property deposited with,or in the custody of, said secondhand dealer, 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 secondhand dealer while the hold order remains in effect; provided, however, that no such hold order shall be effective for more than ninety (90) days unless a criminal prosecution has been undertaken with regard to the property that is the subject of the hold order, in which event the hold order shall remain in effect until the prosecuting agency has notified the secondhand dealer that the prosecution has been completed or dismissed. ( c) The physical premises of any licensed secondhand dealer 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 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 operation of the business of the secondhand dealer. 8 Sec. 15-325. Purchase from minors prohibited. No secondhand dealer shall acquire by purchase or trade any secondhand personal property from any person under the age of eighteen(18)without the written consent of their parent or legal guardian. Sec. 15-326. Goods stolen or illegally obtained to be returned or surrendered. (a) Any secondhand dealer who has obtained property-or merchandise, either new or secondhand, from any person, not knowing it to have been stolen or illegally obtained, shall deliver said property into the hands of the lawful owner when said owner has made a reasonably accurate and certain identification of said property by means of number, description or otherwise. (b) Unless a warrant is required by law or consent is given, any peace officer who determines after investigation that any article of personal property held by a secondhand dealer is stolen or illegally obtained may take such property into evidence after giving the secondhand dealer a receipt for the property which sets forth the Police Services' case number as well as the reason(s) for the confiscation. Sec. 15-327. Violations and penalties. In addition to the revocation, denial or suspension of any license issued , any person who shall violate any of the provisions of this Article, and any person who trades with a secondhand dealer or any secondhand dealer who knowingly gives false information with respect to the information required by §15-320 shall be guilty of a misdemeanor punishable in accordance with §1-15. 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. 200 , i" Mayor ATTEST: City Clerk 9 Passed and adopted on final reading this 15th day of August, A.D. 2000. Mayor ATTEST: City Clerk 10