SR-8-C (15)
. r
It
--
:zc;'ff ~o /S
CA:RMM:SSS:ms:pawnsr
CIty CouncIl Meeting 3-26-85
Santa MonIca, California
STAFF REPORT
<E-C
MAR 2 6 198~
TO:
Mayor and CIty CouncIl
FROM:
CIty Attorney
SUBJECT:
OrdInance AmendIng Chapter 8 of Article VI of the
MunIcipal Code relatIng to Pawnbrokers and
Secondhand Dealers
ThIS report transmits the accompanYIng ordinance for
flrst readIng amendIng Chapter 8 of ArtIcle VI of the
MunICIpal Code relatIng to pawnbrokers and secondhand dealers.
BACKGROUND
Chapter 8 of ArtIcle VI of the Santa MonIca MunICIpal
Code
regulates pawnbrokers and secondhand dealers.
The
Chapter was last amended In 1960.
In 1980, the CalIfornia
Legislature amended the BUSIness & ProfeSSIons Code to Impose
certaIn unIform requirements on pawnbrokers and secondhand
dealers (Business & Professions Code SectIons 21625-21645).
The Intent of the State requIrements IS to enable the polIce
to fIght crIme by traCIng the flow of goods that may be stolen
and subsequently pawned.
In August,
1981,
the City CounCIl directed the CIty
Attorney to prepare an ordInance reqUIrIng pawnbrokers and
secondhand dealers to obtaIn the fIngerprint of persons
sellIng or pawnIng artIcles.
The Police Department belIeves
that the reqUIrement WIll aId In the fIght agaInst theft and
traffIC In stolen property by IdentIfYIng persons suspected of Jr>~
1 MAR 28 '.5
e
e
pawnlng stolen property, reducing the necessIty for
photographIc lIneups, reducIng court tIme for police offlcers
and pawn shop owners, and promotlng cooperatIon among law
enforcement agencIes. Because fIngerprInt eVIdence may match
fingerprInts found at burglary SItes and conclusIvely
establIsh the presence of persons possessing stolen property
at the scene of the crime, the requirement may also result in
Improved enforcement of burglary laws.
The ordInance was held In abeyance pending resolution of
a legal challenge to a SImilar reqUIrement Imposed by the CIty
of San FranCISCO. Since the Court of Appeal has held that the
San FranCISCO legIslatIon was not preempted by State law or
VIolatIve of constitutional rIghts of privacy, Miller v.
Murphy, 143 Cal. App. 3d 750, 191 Cal. Rptr. 740 (1983), the
accompanYIng ordInance adding the fIngerprint requirement and
conformIng the local law to changes In state law has been
prepared.
SECTION BY SECTION ANALYSIS
The ordinance amends Chapter 8 of ArtIcle VIII of the
MunICIpal Code, entItled ~Pawnbrokers and Secondhand Dealers.~
In addItIon to the new fIngerprIntIng requirement, we have
added, deleted, and modIfied sectIons to conform to state law.
Section 6800. Name 1 Purposej and Scope. The ordInance
IS called the "Secondhand Dealer Ordinance" It IS Intended
to fight crIme, and partIcularly traffIC in stolen property,
by Imposing regulatIons on the pawnIng, lendIng, or sellIng of
tangible property In the CIty conSIstent WIth State law.
2
e
e
Section
6801.
"Secondhand Dealer" Defined.
This
section defines the term "secondhand dealer" similarly to the
definition in the CalIfornIa Business & Professions Code. The
term Includes pawnbrokers and other sellers and traders in
used property, but does not include profesSional auctIoneers.
SectIon 6802. "Tangible Personal Property" Defined.
ThIS sectIon defInes the term "tangible personal property"
sImIlarly to the definition in the CalifornIa BUSIness &
ProfeSSions Code. The term Includes most types of secondhand
property, new property taken as security by pawnbrokers, and
types of property found by the Attorney General to constItute
a SIgnifIcant class of stolen items. New goods purchased from
a manufacturer or wholesaler are excluded, as are most COIns
and preCiOUS metals.
Section 6803.
Llcensina.
ThiS section reqUIres a
secondhand dealer to obtaIn a lIcense from the ChIef of Police
conSIstent with BUSIness & Professions Code Section 21641 and
to pay approprIate fees. A separate license is required for
each location at WhICh secondhand dealing is conducted.
Section 6804. Dally Reporting. This section continues
the reqUIrement of eXistIng Sections 6800 and 6801 that daily
reports be submItted shOWing each transaction. The
reqUIrement has been modIfIed to conform to State Law.
Section 6805. Information ReqUired. ThiS section
reqUires that persons selling or pawning tangible property
submIt identIfIcatIon, InclUdIng a drivers license or other
valId photographIc IdentIfIcatIon issued by a government
agency and a fIngerprint of his or her rIght Index finger.
3
e
e
Section 6806. Records and Signs Required. The
secondhand dealer must keep specific records of all property
received, which must be open to Inspection by police officers.
Secondhand dealers must post Identifying signs visible from
the sidewalk or from entrances to offices.
Section 6807. Police RecorQs. This section requires
the Chief of Police to maintain secondhand dealer records in
hiS offlce, to be Inspected only by members of the Police
Department or upon court order.
Section 6808. Waiting Period. This section requires
secondhand dealers to retain all tangible personal property
reported under thiS Chapter for a period of 30 days, unless
authorized by the Chief of Police.
Section 6809. False Name or Entry. This section
prohibits the giVing of a false name or address or the making
of any false entry In a secondhand dealer record.
Section 6810. Certificate of Sale. ThiS section
requires secondhand dealers to prOVide certificates of sale to
be Signed by purchaser and seller, furnish a copy to the
seller, and keep a duplicate on file for inspection by the
Police Department.
Section 6811. Double Holding Period. This section
prOVides that a secondhand dealer need not comply with the
30-day holding period of Section 6808 If an article was
purchased from a person who has made the reqUired report and
held the article for the required time.
Section 6812. DOing BUSiness With a Minor. This
section prohibits transacting any bUSiness In secondhand goods
4
e
e
with a person under the age of 18 years. A statement by a
m1nor that he or she 1S over the age of 18 years does not
excuse a v1olation of th1S sect1on.
Sect10n
6813.
Hours
of Business.
Th1S sect10n
proh1b1ts dOIng busIness between the hours of midnight and
7:00 a.m. ThIS is changed from eXIstIng Section 6811, which
proh1b1ts bus1ness on Sundays and between 7:00 p.m. and 7:00
a m on weekdays.
Sect10n 6814. Renewal and RevocatIon of LIcense.
This
sect10n prov1des for annual renewal of licenses and spec1f1es
the grounds for revocatIon of a llcense.
RECOMMENDATION
It IS respectfully recommended that the accompanYIng
ordinance be Introduced for first readIng.
Prepared by: Robert M. Myers, City Attorney
Stephen S. Stark, Assistant City Attorney
5
e
e
CA:RMM:SSS:ms:pawnord
CIty CouncIl MeetIng 3-26-85
Santa MonIca, CalIfornia
ORDINANCE NUMBER
(Clty Councll SerIes)
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA
AMENDING CHAPTER 8 OF ARTICLE VI
OF THE SANTA MONICA MUNICIPAL CODE
RELATING TO PAWNBROKERS AND SECONDHAND DEALERS
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN
AS FOLLOWS:
SECTION 1. Chapter 8 of ArtIcle VI of the Santa MonIca
MunICIpal Code comprlslng SectIons 6800 through 6814 is
repealed.
SECTION 2.
Chapter 8 is added to ArtIcle VI of the
Santa MonIca MunICIpal Code to read as follows:
Chapter 8. SECONDHAND DEALERS.
Section 6800.
Name] Purpose.
and Scope
ThlS Chapter shall be
called
the
"Secondhand
Dealer
OrdInance." It IS Intended to curtaIl
the dIssemInatIon of stolen property
and to faCIlItate the recovery of
stolen
property
by
Imposing
regulatIons on the pawning, lendIng,
or sellIng of tangIble property In the
CIty consistent with State law.
1
e
e
Sectlon
Dealer" Deflned.
6801.
"Secondhand
For purposes of thls
Chapter, "Secondhand dealer" means and
lncludes any person whose princIpal
bUSIness is prlmarlly that of engaging
In bUYIng, selling, trading, takIng In
pawn, acceptlng for sale on
consignment, acceptIng for auctionIng
or auctIoning secondhand tangible
personal
property.
"Secondhand
dealer" also lncludes any person who
engages in the bUSIness of bUYIng or
sellIng secondhand tangIble personal
property in excess of 20 percent of
the gross sales and purchases of goods
or merchandIse sold or purchased In
the regular course of bUSIness.
"Secondhand Dealer" does not Include
any person who performs the services
of an auctIoneer for a fee or salary.
SectIon 6802 "Tanqlble Personal
Property" DefIned. "Tangible personal
property" includes, but IS not limIted
to, the follOWIng:
(a) All secondhand tangible
personal property WhICh bears a serIal
number or personalized inItials or
2
e
e
1nscr1ption or wh1ch) at the t1me it
1S acquired by the secondhand dealer,
bears eVldence of havlng had a serial
number or personal1zed ln1t1als or
1nscr1ption.
(b) All
tang1ble
personal
property, new or used, received 1n
pledge as security for a loan by a
pawnbroker or a secondhand dealer
act1ng as a pawnbroker.
(c) All tang1ble personal
property that bears a ser1al number or
personalized 1n1tlals or lnscript10n
whlch is purchased by a secondhand
dealer or pawnbroker or Wh1Ch) at the
tlme of such purchase, bears eVidence
of having had a serial number or
personallzed In1tials or inscrlptlon.
(d) All personal property of a
type found by the Attorney General to
constitute a significant class of
stolen goods as stated In the list
maintained
pursuant
to Callforn1a
Buslness & Professlons Code Section
21627(b)(3).
(e) As used 1n thls Chapter)
"tangible personal property" does not
Include any new goods or merchandlse
3
e
e
purchased from a bona fIde
manufacturer or wholesaler or
dIstributor of such new goods or
merchandise by a secondhand dealer.
However, a secondhand dealer shall
retaIn for one YE!ar from the datE! of
purchase, and shall make avaIlable for
InspectIon by any law enforcement
offIcer, any receipt, InvoIce, bIll of
sale, or other evidence of purchase of
such new goods or merchandIse.
(f) As USE!d In thIS Chapter,
~tanglble personal property~ does not
Include COIns, monetIzed bullIon, or
commercial grade Ingots of gold,
sllver7 or other precIous metals.
~CommerClal grade lngots~ means .99
fIne Ingots of gold, slIver, or
platInum, or .925 fIne sterlIng slIver
art bars and medallIons, prOVIded that
the Ingots, art bars, and medallIons
are
marked
by
the
refIner
or
fabrIcator as to theIr assay fIneness.
Section 6803.
LIcensing.
Every
secondhand
dealer
shall obtaIn a
lIcense
from the ChIef of PolIce
pursuant to procedures conSIstent WIth
4
e
e
BUSiness & Professions Code Section
21641.
Such license shall cover all
activities regulated by this Chapter
and conducted at a Single location. A
separate license shall be required for
each location at which any bUSiness
regulated
conducted.
by this Chapter IS
The City Council may
establish and from time to time amend
by Resolution fees to cover the costs
of processing and administration of
secondhand dealer licenses, which fees
shall be paid by the licensee prior to
the issuance of a license.
Section 6804. DallV Reportinq.
Every secondhand dealer shall report
to the Chief of Police dally, or on
the first working day after receipt or
purchase of such property, on forms
either approved or prOVided by the
California Department of JustIce, all
tangible personal property which he or
she has purchased, taken in trade,
taken In pawn, accepted for sale on
consignment, or accepted for
auctioning. The report shall Include,
5
e
e
but not be limited to, the following
information:
( a ) The
name,
address,
fingerprint, and identification card
number of the intended seller of the
property.
(b) A complete and reasonably
accurate description of such property,
including serial numbers or other
IdentifYing marks or symbols.
(c) A certificatIon by the
Intended seller that to his or her
knowledge and belief the lnformatlon
IS true and complete.
(d) Such
other
Information
requIred by the Chief of PolIce.
SectIon
6805.
InformatIon
ReqUIred.
No secondhand dealer shall
purchase, take in trade, take in pawn,
accept for sale on conSIgnment, accept
for auctioning, or otherwise receive
any tangIble personal property unless
the secondhand dealer:
( a )
sellIng,
delivering
property
Has secured from the person
lending, pawnIng, or
the tangible personal
the identificatIon number
6
e e
from a valId drIvers lIcense or other
IdentIfIcatIon
card
issued
by a
government agency and contaInIng the
photograph of such person.
(b) Has secured from the person
sellIng,
delIverIng
property
lendIng, pawnIng, or
the tangIble personal
a fIngerprInt of such
rIght Index fInger In such
and locatIon as specifIed by
person's
manner
the Chief of PolIce.
SectIon 6806. Records and Slqns
Required. Every secondhand dealer
shall keep a complete record of all
tangIble personal property pledged to
or purchased by or receIved by hIm or
her, WhICh record shall contaIn all of
the matters required to be reported
pursuant to thIS Chapter. Every such
record and all tangIble personal
property pledged to or purchased by or
receIved by a secondhand dealer shall
be open at all times durIng bUSIness
hours to the InspectIon of the ChIef
of Pollee or any polIce officer.
Every secondhand dealer shall
maintaIn on the premIses where said
7
e
e
bUSIness IS
located a
sign plaInly
language of
read from a
printed In
sufficient
Sidewalk
the English
SIze to be
business,
In front of said place of
stating that he or she IS a
secondhand dealer, junk
Junk collector. If the
IS conducted In an office
pawnbroker,
dealer, or
business
bUIlding,
the door
the sIgn shall be placed at
to sald offIce. If the
bUSIness IS conducted In a department
of any bUIldIng, the sIgn shall be
placed at the entrance to said
department.
Every report, record, and sIgn
requIred by the terms of thIS Chapter
to be filed, kept, or posted, shall be
wrItten or printed entirely In the
English language, In a clear and
legIble manner.
Section 6807. Police Records.
The Chief of PolIce shall fIle In some
secure place In his offlce all reports
receIved pursuant to the terms of this
Chapter, and the same shall be open to
Inspection only by members of the
PolIce Department, or upon an order of
8
e
e
a court of competent JurIsdIction made
for that purpose.
Section 6808. WaItlng Period.
Every secondhand dealer shall retain
in his or her possession for a period
of 30 days all tangible personal
property reported under the provisions
of thIs Chapter. The 30-day holding
period shall commence wIth the date
the report of acquisition of tanglble
personal property was made to the
Ch1ef of PolIce by the secondhand
dealer. The Chief of Pollce may for
good cause, as specifled by the
Callfornla Department of Justlce,
authorlze pr10r dlSposltlon of any
such property descrlbed In a speclflc
report; prov1ded that a secondhand
dealer who dIsposes of tanglble
personal property pursuant to such
authorlzatlon shall report the sale
thereof to the Chief of Pollce.
Sect10n 6809.
False Name or
Entry. No person shall slgn a false
or flCtltious name or address to any
bIll of
property
sale or recelpt for any
referred to 1n thIS Chapter,
9
e
e
or to any pawnshop tlcket~ or make any
false entry in any report or record
required by this Chapter.
Sale. Secondhand
provide and furnish a certificate of
sale to the person
property referred to
IS purchased. Such
sale shall be sIgned by both the
purchaser and seller.
caples of certIficates
Section 6810.
at
all
times be kept
and kept
of the
purchaser
Inspection
CertIficate of
dealers
shall
from which any
In thiS Chapter
certificate of
Duplicate
of sale shall
on fIle by the
open to the
members
of
the
Police Department of the City.
Section 6811.
Double Holdlnq
PerIod. A secondhand dealer need not
comply WIth the prOVISIons of thIS
Chapter WIth respect to any tangIble
property receIved or
from any other person who
the report requIred under
6804 to the Police Department
held the property for the
of tIme required under SectIon
except that such secondhand
personal
purchased
has made
SectIon
and
has
length
6808,
10
e
e
dealer shall report that such property
has been held for the required t1me by
the person from whom the property is
rece1ved or purchased.
SectIon 6812.
DOIng BusIness
w1th a Minor. No secondhand dealer,
or hIS or her employee or agent, shall
receIve, buy, trade, exchange, receIve
on deposit, or accept as a pledge, or
otherw1se acquire an
Interest In any
goods
the
made
agent
years
or thIng from any person under
age of 18 years. Any statement
to such dealer) employee) or
by a person under the age of 18
to the effect that he or she is
over the age of 18 years shall not
excuse such dealer, employee, or agent
from any vIolatIon of thIS Section.
Section
6813.
Hours
of
BUSIness.
No secondhand dealer, or
hIS or her agent
engage 1n or
regulated by thIS
manner between the
or employee, shall
conduct bUSIness
Chapter In any
hours of twelve
o'clock midnIght and seven o'clock
a.m. of the follOWIng day.
11
e
e
Sectlon
6814.
Renewal
and
Revocatlon of Llcense.
(a) A lIcense granted under
this Chapter shall be renewable one
year from the date of Issue, and
annually thereafter, upon the fIling
of a renewal applIcatIon and the
payment of a lIcense renewal fee to be
established by Resolution of the CIty
CouncIl.
(b) The
lIcense
shall
be
sUbJect to revocation or suspensIon by
the ChIef of PolIce and the lIcensee's
actIvItIes shall be subJect to beIng
enJoined by actIon brought by the CIty
Attorney for breach of any of the
follOWIng condItIons:
(1) The buslness shall be
carrIed on only in the bUIldIng or
bUIldIngs deSIgnated In the license.
( 2 ) The
lIcense, or a
copy thereof, certIfIed by the ChIef
of PolIce, shall be dIsplayed on the
premIses where It can easily be seen.
(3) The
lIcensee shall
not engage In the bUSIness of
secondhand dealer with any person
under the age of 18 years of age.
12
e
e
( 4 ) The
llcensee shall
not engage 1n any act 1n Vlolatlon of
this Chapter or of any state law
regulatlng the business of secondhand
dealer.
( 5 ) The
licensee shall
not be convicted of an attempt to
receive stolen property or any other
offense lnvolvlng stolen property.
For the purposes of this paragraph,
uconvictedU means a plea or verdict of
gUllty or
plea of
a convlct10n following a
nolo
contendere.
If a
11censee has been Hconvlcted,u action
may be taken when the tlme for appeal
has elapsed, or the Judgment of
conviction has been affirmed on
appeal, or
probation
1mposltion
when an order granting
1S made suspendlng the
of sentence, Irrespective
of a subsequent order under the
provIsions of Section 1203.4 of the
Callfornla Penal Code.
SECTION 3. Any provIsion of the Santa Monica Mun1c1pal
Code or appendices thereto lnconslstent with the provisions of
thiS ordinance, to the extent of such 1nconslstencles and no
13
-.
e
e
further, are hereby repealed or modified to that extent
necessary to effect the provIsions of this ordinance.
SECTION 4.
If any part of this ordlnance is for any
reason held to be Invalid or unconstitutional by a deCISlon of
any court of competent jurisdiction, such decision shall not
affect
the validity of the remaining portions of this
ordinance.
The City Council hereby declares that It would
have passed this ordinance and each and every part not
declared Invalid or unconstitutlonal wIthout regard to whether
any part of this ordinance would be subsequently declared
Invalid or unconstitutional.
SECTION 5.
The Mayor shall slgn and the City Clerk
shall attest to the passage of this ordInance.
The City Clerk
shall cause the same to be published once In the offiCial
newspaper wIthin 15 days after its adoption.
The ordinance
shall become effective 30 days after the date of Its adoption.
APPROVED AS TO FORM:
~ '-"-'. ~
Robert M. Myers a
City Attorney
14