Chapter 5.36 — PAWNBROKERS AND SECONDHAND DEALERS

State Law reference— Pawnbroker regulations, Financial Code § 21000 et seq.; secondhand dealer regulations, Business and Professions Code § 21640 et seq.

The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Pawnbroker includes every person, firm or corporation, other than banks, trust companies or bond brokers, who may otherwise be regulated by law and authorized to deal in commercial papers, shares of stock, bonds and other certificates of value, who keeps a loan or pawn office, or engages in or carries on the business of receiving jewelry, precious stones, valuables, firearms, clothing or personal property, or any other articles, in pledge for or as security or in pawn for its repayment of monies, and exacts an interest for such loans.

Secondhand dealer includes every person who engages in or conducts the business of buying, selling or exchanging, whether as a separate business or in connection with other businesses, secondhand or rebuilt typewriters, adding or calculating machines, scales, clothing, tools, surgical, dental or drawing instruments, furniture, household furnishings, motorcycles or automobile accessories, secondhand bicycles, bicycle accessories, firearms, musical instruments, tools, or any other secondhand articles or things, excepting secondhand jewelry dealers or secondhand automobile dealers.

Secondhand jewelry dealer includes every person who engages in or conducts the business of buying, selling or exchanging old gold, old silver, platinum or articles of platinum, silverware, secondhand jewelry or other precious metals or stones.

(Code 1969, § 5.36.010; Ord. No. 130, § 1, 1956)

(a)

It is unlawful for any person to engage in, or carry on, or conduct, or to permit to be carried on, engaged in or conducted, within the city, the business of any pawnbroker, secondhand dealer or in connection with any other business unless there exists a valid permit therefor. The application for such permit shall set forth the exact nature of the business to be carried on and shall contain the names of all members of the firm or partnership. At the time of filing such application, the applicant and all persons directly or indirectly interested in the permit if granted, including all members of any firm or partnership, shall be fingerprinted by the police department and if any such person is found to have a prior criminal record of committing any felony, theft, obtaining money or property by false pretenses, embezzlement or violating any of the provisions of these chapters, the application for such permit shall be denied.

(b)

No permit shall be issued for any business enumerated in subsection (a) of this section if the applicant therefor is under the age of 21 years, or an alien, nor, if the applicant is a firm, partnership, or corporation, if any member of the firm, partnership or corporation, is under the age of 21 years or an alien.

(c)

A permit issued under this chapter shall be valid and current for a term of two years unless revoked sooner.

(Code 1969, § 5.36.020; Ord. No. 130, § 2(1), (2), 1956)

(a)

Every person managing, maintaining or conducting the business of any pawnbroker, secondhand jewelry dealer, or secondhand dealer in the city shall keep, or cause to be kept at the store or place of business, a record in which shall be legibly entered in English, at the time of purchase, sale, exchange, pledge, pawn or other transfer of possession of any article, or loan thereof, information regarding the article, to include, but not be limited to, the following:

(1)

The name and current address of the intended seller or pledger of the property.

(2)

The identification of the intended seller or pledger. The identification of the seller or pledger of the property shall be verified by the person taking the information. The verification shall be valid if the person taking the information reasonably relies on any one of the following documents, provided that the document is currently valid or has been issued within five years and contains a photograph or description, or both, of the person named on it, and, where applicable, is signed by the person, and bears a serial or other identifying number:

a.

A passport of the United States.

b.

A driver's license issued by any state or Canada.

c.

An identification card issued by any state.

d.

An identification card issued by the United States.

e.

A passport from any other country in addition to another item of identification bearing an address.

f.

A matricula consular in addition to another item of identification bearing an address.

(3)

A complete and reasonably accurate description of serialized property, including, but not limited to, the following: serial number and other identifying marks or symbols, owner-applied numbers, manufacturer's named brand, and model name or number. Watches need not be disassembled when special skill or special tools are required to obtain the required information, unless specifically requested to do so by a peace officer. A special tool does not include a penknife, caseknife, or similar instrument and disassembling a watch with a penknife, caseknife, or similar instrument does not constitute a special skill. In all instances where the required information may be obtained by removal of a watchband, then the watchband shall be removed. The cost associated with opening the watch shall be borne by the pawnbroker, secondhand dealer, or customer.

(4)

A complete and reasonably accurate description of nonserialized property, including, but not limited to, the following: size, color, material, manufacturer's pattern name (when known), owner-applied numbers and personalized inscriptions, and other identifying marks or symbols. Watches need not be disassembled when special skill or special tools are required to obtain the required information, unless specifically requested to do so by a peace officer. A special tool does not include a penknife, caseknife, or similar instrument and disassembling a watch with a penknife, caseknife, or similar instrument does not constitute a special skill. In all instances where the required information may be obtained by removal of a watchband, then the watchband shall be removed. The cost associated with opening the watch shall be borne by the pawnbroker, secondhand dealer, or customer.

(5)

A certification by the intended seller or pledger that he is the owner of the property or has the authority of the owner to sell or pledge the property.

(6)

A certification by the intended seller or pledger that to his knowledge and belief the information is true and complete.

(7)

A legible fingerprint taken from the intended seller or pledger, as prescribed by the department of justice. This requirement does not apply to a coin dealer, unless required pursuant to local regulation.

(b)

The record of transactions required by the provisions contained within subsection (a) of this section shall be open for inspection by the police department at any time during business hours; and the police department shall also have the right to thoroughly inspect the premises, store or place where the business so recorded is conducted at any time in search of any lost or stolen property, or to compare the entry kept in such record with the articles located on such premises or place of business. All persons in charge of such business shall each day, excepting Sundays and holidays, furnish or cause to be furnished to the chief of police at 9:00 a.m., a legible and complete copy of such record, to be permanently filed in the offices of the police department which shall be open for inspection only to the police department of the city or upon order of the court duly made for that purpose. The reports shall be made upon forms approved by the chief of police.

(c)

The record of transactions for handguns and firearms shall also adhere to the reporting requirements for handguns and firearms prescribed under current state and federal law.

(Code 1969, § 5.36.030; Ord. No. 130, § 2(3), (4), 1956)

State Law reference— Firearm transaction record defined, Penal Code § 16550; reporting requirements for the delivery of firearms, Penal Code §§ 26700—-26915; recordkeeping for the sale, lease or transfer of firearms, Penal Code § 28100 et seq.

All articles purchased, received and exchanged, pledged, pawned or otherwise taken into possession by any person maintaining or operating the business of pawnbroker, secondhand jewelry dealer, or secondhand dealer or the agent thereof, the retention of which is not otherwise provided for by law, shall, except as hereinafter provided or otherwise provided, be held for a period of 30 days before being placed on exhibition, sold, exchanged, removed from the place of business where they were received, delivered to any person or otherwise disposed of; provided, however, that any such article may be delivered or returned, at any time, to the true owner thereof or his authorized agent; provided, further, any furniture, household furnishings, files, desks, chairs, or other office equipment need not be held for more than five days; and provided, further, the following named articles: watches, firearms, cameras, projectors, table model and

portable radios, electric drills, sanders, buffers, check protectors, surveyors' instruments, microscopes, binoculars, field glasses, electric motors, lenses and musical instruments other than pianos, shall be held for a period of at least 60 days.

(Code 1969, § 5.36.040; Ord. No. 130, § 2(5), 1956)

It is unlawful for any person maintaining or conducting the business of pawnbroker, secondhand jewelry dealer, or secondhand dealer, or any agent or employee thereof, to purchase or take any goods or articles or thing offered to him by any person less than 18 years of age, or knowingly purchase or take any such things from any servant or apprentice without first ascertaining that such article or thing is the property of the person delivering the same, or that such servant or apprentice has the authority from the owner to deliver or sell such property.

(Code 1969, § 5.36.050; Ord. No. 130, § 2(6), 1956)

It is unlawful for any person conducting or maintaining the business of pawnbroker, secondhand jewelry dealer or secondhand dealer, or any agent or employee thereof, to keep, or cause to be kept, such place of business open on January 1, May 30, July 4, or December 25 of each year, or on any other day except during the regular business hours retail merchants in the city observe; provided, however, that on Friday, Saturday and the day preceding the aforesaid holidays, such business may be kept open until 10:00 p.m. Any person engaged in conducting any business other than those hereinabove mentioned on the same premises in such business, or in conjunction with the same, shall, notwithstanding, close the place of such other business at the same time and manner as herein provided.

(Code 1969, § 5.36.060; Ord. No. 130, § 2(7), 1956)

Every person managing, maintaining or conducting the business of a pawnbroker in the city shall keep or cause to be kept, at the store or place of business, receipt books as hereinafter described. Such books shall be kept in addition to the record of transaction, required by section 5.36.030(a), and consist of duplicate sheets of not less than four by seven inches in size, and bearing consecutive numbers, one of each duplicate pages shall be perforated to enable its removal. One of the aforesaid books shall be kept for the recording of, and the receipting for, sales, and there shall be printed at the top of the perforated sheet, in colored type, not less than three-eighths of an inch in height, the following words: "This is a pledge and not a sale."

(Code 1969, § 5.36.070; Ord. No. 130, § 2(8), 1956)

It is unlawful for pawnbrokers to make any purchase, exchange, pledge, pawn or other transfer of possession of any article unless the same is recorded on one of the record and receipt books required by the provisions of section 5.36.070, setting forth the name and address of the pawnbroker, a description, in

English, of the article involved in such transaction, the date of the sale, the name of the customer with whom such transaction is made, the rate of interest charged, if any, the term of redemption, if any, and the same shall be signed by the pawnbroker or his agent making such transaction. The perforated sheet, which shall be the duplicate shall, after being filled out as herein provided, be delivered to the person with whom the transaction is made. The original thereof shall be kept by the pawnbroker for a period of at least two years next following the date of the transaction and shall, during such time, be available at all times during business hours for inspection by the police department. Any alteration of the original sheet shall constitute a misdemeanor.

(Code 1969, § 5.36.080; Ord. No. 130, § 2(9), 1956)

Transactions involving coins, monetized bullion, or commercial-grade ingots of gold, silver, or other precious metals must adhere to the holding, reporting, or identification requirements prescribed by state and federal law, but are exempt from those requirements as described in this chapter.