Aitkin City Zoning Code

PAWNSHOPS

§ 152.195 PURPOSE AND INTENT.

(A) It is the purpose of this subchapter to prevent pawn businesses from being used as facilities for the commission of crimes, and to assure that the businesses comply with basic consumer protection standards, thereby protecting the public health, safety and general welfare of the citizens of the city.

(B) It is also the purpose of this subchapter to establish uniform and reasonable regulations to:

(1) Prevent additional criminal activity within the city;

(2) Prevent deterioration of neighborhoods and its consequent adverse effect on real estate values of properties within the neighborhood; and

(3) Locate pawnshops away from adult-oriented businesses and off-sale liquor businesses.

(Ord. 332, passed 5-19-2008)

§ 152.196 EXEMPTIONS.

This subchapter does not apply to or include the following:

(A) The sale of secondhand goods where all of the following conditions are present:

(1) The sale is held on property occupied as a dwelling by the seller, or owned, rented or leased by a charitable or political organization;

(2) The items offered for sale are owned by the occupant;

(3) The sale does not exceed a period of 72 consecutive hours;

(4) Not more than two sales are held either by the same person or on the same property, as defined in division (A)(1) above, in any 12-month period; and

(5) None of the items offered for sale have been purchased for resale or received on consignment for purposes of resale.

(B) Sales by a person licensed as a motor vehicle dealer;

(D) The sale of goods at an auction held by a licensed auctioneer;

(E) The business of buying or selling only those secondhand goods taken as part of full payment for new goods, and where the business is incidental to and not the primary business of a person;

(F) A bulk sale of property from a merchant, manufacturer or wholesaler having an established place of business or of goods sold at open sale from bankrupt stock;

(G) Goods sold at a public market;

(H) Goods sold at an exhibition; and

(I) The sale of secondhand goods by a secondhand goods dealer on property where no pawnbroker license is required.

(Ord. 332, passed 5-19-2008)

§ 152.197 LOCATION.

No license shall be issued to a location that is less than 1,000 feet from any adult business as regulated by §§ 152.170 through 152.181 of this chapter, nor shall any license be issued to a location that is less than 350 feet from any off-sale liquor business and at least 100 feet from any residential use.

(Ord. 332, passed 5-19-2008)

§ 152.198 LICENSE REQUIREMENTS.

(A) General.

(1) Licenses required.

(a) All establishments, including any business operating at the time this chapter becomes effective, operating or intending to operate a pawnshop, shall apply for and obtain a license from the city.

(b) A person is in violation of the city ordinance if he or she operates a pawnshop without a valid license issued by the city.

(2) Applications. An application for a license under this subchapter shall be made on a form provided by the city and be filed with the City Administrator. The application shall include the following information:

(a) If the applicant is a natural person:

1. The name, birthplace, date of birth, resident street address and phone number of applicant;

2. Whether the applicant is a citizen of the United States or a resident alien;

3. Whether the applicant has ever used or has been known by a name other than the applicant’s given name and, if so, the name or names used previously and information concerning dates and places where used;

4. The name of the business if it is to be conducted under a designation, name or style other than the name of the applicant and a certified copy of the certification required by M.S. § 333.01, as it may be amended from time to time;

5. The street addresses at which the applicant has lived during the preceding five years;

6. The type, name and location of every business or occupation in which the applicant has been engaged during the preceding five years and the name(s) and address(es) of the applicant’s previous employer(s) and partner(s), if any, for the preceding five years;

7. Whether the applicant has ever been convicted of a felony, crime or violation of any ordinance other than a traffic ordinance. If so, the applicant must furnish information as to the time, place and offense of all such convictions;

8. The physical description of the applicant;

9. The applicant’s current personal financial statement; and

10. If the applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required in divisions (A)(2)(a)1. through (A)(2)(a)8. above.

(b) If the applicant is a partnership:

1. The name(s) and address(es) of all general and limited partners and all information concerning each general partner required in division (A)(2)(a) above;

2. The name(s) of the managing partner(s) and the interest of each partner in the licensed business;

3. A true copy of the partnership agreement shall be submitted with the application. If the partnership is required to file a certificate as to a trade name pursuant to M.S. § 333.01, as it may be amended from time to time, a certified copy of the certificate must be attached to the application; and

4. If the applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them as required in divisions (A)(2)(a)1. through (A)(2)(a)8. above.

1. The name of the corporation or business form and, if incorporated, the state of incorporation;

2. A true copy of the certificate of incorporation, articles of incorporation or association agreement, and bylaws shall be attached to the application. If the applicant is a foreign corporation, a certificate of authority as required in M.S. § 303.06, as it may be amended from time to time, shall be attached;

3. The name of the manager(s) or other person(s) in charge of the business and all information concerning each manager, proprietor, or agent as required in divisions (A)(2)(a)1. through (A)(2)(a)8. above; and

4. A list of all persons who control or own an interest in excess of 5% in the organization or business form or who are officers of the corporation or business form and all information concerning the persons as required in divisions (A)(2)(a)1. through (A)(2)(a)8. above.

(d) For all applicants, the following information shall be supplied:

1. Whether the applicant holds a current pawnbroker license from any other governmental unit;

2. Whether the applicant has previously been denied, or had revoked, or had suspended a pawnbroker license from any other governmental unit;

3. The names, resident street addresses and business addresses of three character references, who are of good moral character and who are not related to the applicant or not holding any ownership in the premises or businesses;

4. The location of the business premises;

5. The legal description of the premises to be licensed, together with a sketch plan of the area for which the license is sought showing dimensions, location of buildings and street access parking facilities; and

6. Such other information as the Planning Commission may deem necessary.

(3) Application execution. All applications for a license under this subchapter must be signed and sworn to under oath of affirmation by the applicant. If the application is that of a natural person, it must be signed and sworn to by the person; if that of a corporation, by an officer thereof; if that of a partnership, by one of the general partners; and if that of an unincorporated association, by the manager or managing officer thereof. If the applicant is a partnership, the application, license and bond shall be made and issued in the name of all partners. Any false statement on an application shall result in denial of the application.

(4) Application investigation. At the time of making an initial or renewal application, the applicant shall, in writing, authorize the Police Department or the County Sheriff to investigate all facts set out in the application and to perform a personal background and criminal record check on the applicant. The applicant shall further authorize the Police Department or the County Sheriff to release information received from the investigation to the city. The applicant shall have an opportunity to review the information before it is released to the city.

(5) New manager. When a licensee places a manager in charge of a business, or if the named manager(s) in charge of a licensed business changes, the licensee must complete and submit the appropriate application on forms provided by the city within 14 days. The application must include all appropriate information as required in division (A)(2) above.

(B) Transfer of license.

(1) Each license under this subchapter shall be issued to the applicant only and the license shall not be transferable, except as allowed in the following statements regarding corporations, partnerships or associations.

(a) Licenses issued to corporations shall be valid only so long as there is no change in the officers or ownership interest of the corporation unless the change is approved by the city, in which event the license shall continue in force until the end of the then current license year.

(b) Licenses issued to partnerships or associations shall be valid only so long as there is no change in the partnership or association agreement or in the ownership of the partnership or association unless the change is approved by the city, in which event the license shall continue in force until the end of the then current license year.

(c) Corporation, partnerships or associations shall submit written notice to the Administrator of any such changes described herein on or before 60 days prior to the effective date of any the change and pay a fee required for an amendment to the license. In the case of a corporation, the licensee shall submit written notice to the Administrator when a person not listed in the initial application will be acquiring an interest and shall give all information about the person as is required of a person pursuant to the provisions of this subchapter.

(2) Each license shall be issued only for the premises described in the application and shall not be transferable to a different location. No licensee shall loan, sell, give or assign a license to another person.

(1) Expiration. All licenses shall expire at the end of the calendar year.

(2) Renewal. Applications may only be renewed by making an application as provided for in division (A)(2) above. Application renewals shall be made at least 60 days prior to the expiration date of the license and shall be made on forms provided by the city. The city will mail application renewal forms to existing licensees approximately 120 days prior to the expiration of the licenses.

(D) License disqualification. No license shall be issued if the applicant, any general partner or managing partner of a partnership, or a manager, proprietor or agent in charge of a corporation or other organization meets any of the following:

(1) Is a minor at the time the application is filed;

(2) Has been convicted of any crime directly related to the occupation licensed as prescribed by M.S. § 364.03, subd. 2, as it may be amended from time to time, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by M.S. § 364.03, subd. 3, as it may be amended from time to time;

(3) Is not a citizen of the United States or a resident alien;

(4) Holds an intoxicating liquor license; and

(5) In the judgment of the city, is not the real party in interest or beneficial owner of the business operated, or to be operated, under the license.

(E) Fees. The annual license fee and investigation fee shall be established by the City Council by resolution on the fee structure.

(F) Denial, suspension or revocation. Any license issued under this subchapter may be denied, suspended or revoked for one or more of the following reasons:

(1) The proposed use does not comply with any applicable zoning ordinance;

(2) The proposed use does not comply with any health, building, building maintenance or other provisions of this chapter or state law;

(3) The applicant or licensee has failed to comply with one or more provisions of this subchapter;

(4) The applicant is not a citizen of the United States or a resident alien, or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information;

(5) Fraud, misrepresentation or bribery was used or attempted in securing or renewing a license;

(6) Fraud, misrepresentation or false statements were made in the application and investigation for, or in the course of, the applicant’s business;

(7) The applicant has violated within the preceding five years, any law relating to theft, damage or trespass to property, sale of a controlled substance or illegal operation of a business; and

(8) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this subchapter.

(Ord. 332, passed 5-19-2008)

§ 152.199 RECORDS REQUIRED.

(A) 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. The identifiers shall be consecutively numbered and for the purpose of the reporting requirements shall include any identifiers that may have been voided;

(5) Full name, current residence address, current residence telephone number, birth date and accurate description of the person from whom the item of property was received, including sex, height, weight, race, color of eyes and color of hair;

(6) The identification number and state of issue from any of the following forms of identification of the seller:

(a) Current valid Minnesota driver’s license;

(b) Current valid Minnesota identification card; and

(7) The signature of the person identified in the transaction;

(8) Effective 60 days from the date of notification by the Police Department of acceptable video standards, the licensee must also take a color photograph or color video recording of each customer involved in a billable transaction and every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed thereto.

(a) 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 photography 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.

(b) The major portion of the photograph must include an identifiable facial image 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.

(c) If a video photograph is taken, the video camera must focus on the person pawning or selling the item so as to include an identifiable image of that person’s face. Items photographed by video must be accurately depicted. Video photographs must be electronically referenced by time and date so that 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 by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed videotape for at least three months.

(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 issuing authority, electronically cross-referenced to the reportable transaction with which they are associated. Even though the digital images may be captured from required video recordings, this provision does not altar or amend the requirements of division (A)(8) above.

(B) For renewals, extensions, redemptions and confiscations, the licensee shall provide the original transaction identifier, the date of the current transaction and the type of transaction.

(C) The records must, at all reasonable times, be open to inspection by the Police Department or Department of Licenses and Consumer Services. Data entries shall be retained for at least three years from the date of transaction. Entries of required digital images shall be retained for a minimum of 90 days.

(Ord. 332, passed 5-19-2008)

§ 152.200 DAILY REPORTS TO POLICE.

Effective no later than 60 days after the Police Department provides licensees with the current version of the automated pawn system interchange file specification, licensees must submit every reportable transaction to the Police Department on a daily basis in the following manner.

(A) Licensees must provide to the Police Department all reportable transaction information by transferring it from their computer to the automated pawn system via modem using the current version of the automated pawn system interchange file specification. 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 issuing authority. Any transaction that does not meet the automated pawn system interchange file specification must be corrected and resubmitted the next business day. The licensee must display a sign of sufficient size, in a conspicuous place in the premises, which informs patrons that all transactions are reported to the Police Department daily.

(B) Licensees will be charged for each billable transaction reported to the Police Department.

(C) If a licensee is unable to successfully transfer the required reports by modem, the licensee must provide the Police Department, upon request, with printed copies of all reportable transactions along with the video tape(s) for that date, by noon of the next business day.

(D) If the problem is determined to be in the licensee’s system and is not corrected by the close of the first business day following the failure, the licensee must continue to provide the required reports as detailed in division (C) above, and shall be charged as set in the Fee Schedule in § 33.01 of this code of ordinances reporting failure penalty, daily, until the error is corrected.

(E) If the problem is determined to be outside the licensee’s system, the licensee must continue to provide the required reports as detailed in division (C) above, and resubmit all such transactions via modem when the error is corrected.

(F) If the licensee is unable to capture, digitize or transmit the photographs as required in § 152.199 of this chapter, 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.

(G) 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 that the problem had existed.

(H) Divisions (C) through (E) above notwithstanding, the Police Department may, upon presentation of extenuating circumstances, delay the implementation of the daily reporting penalty.

(Ord. 332, passed 5-19-2008)

§ 152.201 RECEIPT REQUIRED.

(A) 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.

(B) The receipt must include, at a minimum, the following information:

(1) The name, address and telephone number of the licensed business;

(2) The date and time that the item was received by the licensee;

(3) Whether the item was pawned, 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 pledger 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 residential address, current residence phone number and birth date of the pledger or seller;

(10) The identification number and state of issue from any of the following forms of identification of the seller:

(a) Current valid Minnesota driver’s license;

(b) Current valid Minnesota identification card; and

(11) Description of the pledger or seller including sex, height, weight, race, eye color and hair color;

(12) The signature of the pledger 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.

(Ord. 332, passed 5-19-2008)

§ 152.202 REDEMPTION PERIOD.

Any person pledging, pawning or depositing an item for security must have a minimum of 90 days from the date of the transaction to redeem the item before it may be forfeited and sold. 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 pledger at the time of the initial transaction and signed by the pledger, or with approval of the Chief of Police or Chief’s designee. Written authorization for release of property to persons other than the original pledger must be maintained along with the original transaction record in accordance with § 152.199 of this chapter.

(Ord. 332, passed 5-19-2008)

§ 152.203 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.

(Ord. 332, passed 5-19-2008)

§ 152.204 POLICE ORDER TO HOLD PROPERTY.

(A) Investigative hold. Whenever a law enforcement official from any agency 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 originating agency within 72 hours and will remain in effect for 15 days from the date of the initial notification, or until the investigative order is cancelled, or until an order to hold/confiscate is issued, pursuant to division (B) below, whichever comes first.

(B) Order to hold. Whenever the Chief of Police, or the Chief’s designee(s), 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 that it is placed unless the Chief of Police of the Chief’s designee determines that the hold is still necessary and notifies the licensee in writing.

(C) Order to confiscate. If an item is identified as stolen or as being evidence in a criminal case, the Chief or the Chief’s designee may:

(1) Physically confiscate and remove the item from the shop, pursuant to a written order from the Chief or the Chief’s designee; or

(2) Place the item on hold or extend the hold as provided for in division (B) above, and leave it in the shop.

(D) License provided. When an item is confiscated, the person doing so shall provide identification upon request of the licensee, and shall provide the licensee with the name and the phone number of the confiscating agency and investigator, and the case number related to the confiscation.

(E) Licensee notification. When an order to hold/confiscate is no longer necessary, the Chief of Police or the Chief’s designee shall so notify the licensee.

(Ord. 332, passed 5-19-2008)

§ 152.205 INSPECTION OF ITEMS.

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, during normal business hours, except in an emergency, for the purpose of inspecting the premises and inspecting the items, ware, merchandise and records therein to verify compliance with this subchapter or other applicable laws.

(Ord. 332, passed 5-19-2008) Penalty, see § 152.999

§ 152.206 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.

(Ord. 332, passed 5-19-2008) Penalty, see § 152.999

§ 152.207 PROHIBITED ACTS.

(A) No person under the age of 18 years may pawn, sell, or attempt to pawn or sell goods with any licensee, nor may any licensee receive any goods from a person under the age of 18 years.

(B) No licensee may receive any goods from a person of unsound mind or an intoxicated person.

(C) No licensee may receive any goods, unless the seller presents identification in the form of a valid driver’s license, a valid Minnesota identification card or current valid photo driver’s license issued by the state or province of residency of the person from whom the item was received.

(D) No person may pawn, pledge, sell, consign, leave or deposit any article of property not his or her own; nor shall any person pawn, pledge, sell, consign, leave or deposit the property of another, whether with permission or without; nor shall any person pawn, pledge, sell, consign, leave or deposit any article of property in which another has a security interest; with any licensee.

(E) No person seeking to pawn, pledge, sell, consign, leave or deposit any article of property with any licensee shall give a false or fictitious name; nor give a false date of birth; nor give a false or out-of-date address of residence or telephone number; nor present a false or altered identification or the identification of another; to any licensee.

(Ord. 332, passed 5-19-2008) Penalty, see § 152.999

§ 152.208 BUSINESS AT ONLY ONE PLACE.

A license issued under this subchapter authorizes the licensee to carry on its business at the permanent place of business designated in the license. However, upon written request, the Chief of Police, or the Chief’s designee, may approve an off-site locked and secured storage facility. The licensee shall permit inspection of the facility in accordance with § 152.205 of this chapter. All provisions of this subchapter regarding record keeping and reporting apply to the facility and its contents. Property shall be stored in compliance with all provisions of the city ordinances. The licensee must either own the building in which the business is conducted, and any approved off-site storage facility, or have a lease on the business premises that extends for more than six months.