Burbank Municipal Code Art. 10 Secondhand Dealers

3-4-1001: DEFINITIONS:

JUNK: Any and all secondhand and used machinery and all ferrous and nonferrous scrap metals and alloys, including any and all secondhand and used furniture, pallets, or other personal property, other than livestock, or parts or portions thereof.

As used in this Article, "scrap metals and alloys" include, but is not limited to, materials and equipment commonly used in construction, agricultural operations and electrical power generation, railroad equipment, oil well rigs, nonferrous materials, stainless steel, and nickel which are offered for sale to any junk dealer or recycler, but does not include scrap iron, household generated waste, or aluminum beverage containers, as defined in Chapter 2 of Division 12.1 of the California Public Resources Code.

JUNK COLLECTOR: A person not having a fixed place of business in the City, but who, personally or by representative, gathers, collects, buys, sells, or otherwise deals in scrap metals, salvage metals and any old rags, sacks, bottles, cans, papers, metals, or other articles commonly known as "junk", including motor vehicle or bicycle parts and old motor vehicles or bicycles which are collected, bought, sold or otherwise dealt in after being dismantled or taken apart.

JUNK DEALER: Includes any person engaged in the business of buying, selling and dealing in junk, any person purchasing, gathering, collecting, soliciting or traveling about from place to place procuring junk, and any person operating, carrying on, conducting or maintaining a junkyard or place where junk is gathered together and stored or kept for shipment, sale or transfer.

JUNKYARD: Includes any yard, plot, space, enclosure, building or any other place where junk is collected, stored, gathered together and kept.

PAWN SHOP: Any room, store, or place in which a person engages in the business of pawnbroker.

PAWNBROKER: Every person engaged in the business of receiving goods, including motor vehicles, in pledge as security for a loan is a pawnbroker within the meaning of this Article. Receiving goods as security for a loan does not include a good faith purchase of goods.

SECONDHAND DEALER: Means and includes any of the following:

Any person, co-partnership, firm, or corporation whose principal business is primarily that of engaging in buying, selling, trading, taking in pawn, accepting for sale on consignment, accepting for auctioning or auctioning secondhand tangible personal property. A "secondhand dealer" does not include a "coin dealer" or participants at gun shows or events pursuant to Article 4, Section 21626 of the California Business and Professions Code.

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 inscription or which, at the time it is acquired by the secondhand dealer, bears evidence of having had a serial number or personalized initials or inscription.

B. All tangible personal property, new or used, received in pledge as security for a loan by a pawnbroker or a secondhand dealer acting as a pawnbroker.

C. All tangible personal property that bears a serial number or personalized initials or inscription which is purchased by a secondhand dealer or a pawnbroker or which at the time of such purchase, bears evidence of having had a serial number or personalized initials or inscription.

D. All personal property commonly sold by secondhand dealers which statistically is found through crime reports to the State Attorney General to constitute a significant class of stolen goods. Any list of such personal property supplied by the State Attorney General to the Police Department shall be made available to the public.

Tangible personal property does not include any new goods or merchandise purchased from a bona fide manufacturer or distributor or wholesaler of such new goods or merchandise by a secondhand dealer. For the purposes of this Article, however, a secondhand dealer shall retain for one year 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.

Tangible personal property does not include coins, monetized bullion, or commercial grade ingots of gold, silver, or other precious metals. [Formerly numbered Section 8-66; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 15-3,859, eff. 2/6/15; 2828, 2181.]

3-4-1002: LICENSE FEES:

Every person engaging in the business of pawnbroker, secondhand dealer, junk dealer or junk collector, shall pay an annual license fee in the amount set forth in the Burbank Fee Resolution. [Formerly numbered Section 8-67; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 15-3,859, eff. 2/6/15; 3623; 2828.]

3-4-1003: PERMIT AND FEES:

No person shall engage in the business of a pawnbroker, secondhand dealer, junk dealer or junk collector without first obtaining a permit to do so from the Community Development Department and paying a permit fee in the amount set forth in the Burbank Fee Resolution. [Formerly numbered Section 8-68; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 15-3,859, eff. 2/6/15; 3828; 3623, 2828.]

3-4-1004: APPROVAL OF APPLICATION:

A. Applications for all licenses and permits required by this Article shall be referred to the Chief of Police by the Community Development Department. Upon completion of an investigation, the Chief of Police shall grant a license and/or permit allowing the licensee/permittee to engage in the business of secondhand dealer, pawnbroker, junk dealer or junk collector unless:

The applicant has knowingly made a false or misleading statement of a material fact or omission of a material fact in the application; or
The applicant is under eighteen years of age, unless the particular business or occupation has a different age requirement pursuant to state or federal law, in which case the state or federal law controls the age requirement; or
The applicant has had a similar type of license and/or permit previously denied, suspended for a total of six months, or revoked, within five years immediately preceding the date of the filing of the application, and the applicant can show no material changes in circumstances since such denial, suspension, or revocation; or
The applicant has refused to consent to inspection pursuant to Section 3-4-1006 of this Code; or
The applicant is within any of the following categories:

a. Within five years immediately preceding the date of application, the applicant has been convicted of a felony crime in any jurisdiction involving the following offenses: theft, fraud, violence, sale of a controlled substance as specified in Sections 11054, 11055, 11056, 11057, or 11058 of the California Health and Safety Code, or any moral turpitude offense;

b. Within three years immediately preceding the date of application, the applicant has been convicted of any offense listed in Section 3-4-1004 (5) (a) that has been made the subject of Section 17(b) of the California Penal Code;

c. Within five years immediately preceding the date of application, the applicant has been convicted of any offense involving deceptive trade practices or other illegal business practices reasonably and narrowly related to the nature of conduct of the business for which the application is made;

d. Within five years immediately preceding the date of the application, the applicant has been convicted of any offense involving theft or fraud, including the receipt of stolen property, or any financial crime including money laundering and embezzlement.

The applicant has failed to provide proof of any application requirement as set forth in this Code regulating the business or occupation.

B. No person shall be denied a license and/or permit solely on the grounds that they violated any provision contained in Article 4 (commencing with Section 21625) or Article 5 (commencing with Section 21650) of the California Business and Professions Code, or any provision contained in Chapter 2 (commencing with Section 21200) of Division 8 of the California Financial Code, or any duplicative provision of this Code to the state statutes listed above, unless the violation demonstrates a pattern of conduct. This prohibition, however, does not extend to violations of any licensing/permitting regulations of this Code that do not duplicate provisions of an applicable state regulatory statute.

C. Prior to the granting of a license and/or permit for secondhand dealers, the Chief of Police shall submit the application to the California Department of Justice. If the Department of Justice does not comment on the application within thirty (30) days thereafter, the Chief of Police may grant the applicant a license and/or permit. All forms for application and licensure, and license and/or permit renewal, shall be prescribed and provided by the California Department of Justice.

D. The granting of a license and/or permit does not relieve a licensee/permittee from their obligation to comply with all applicable local, state, and federal laws, including those related to building, zoning, and fire, and other public safety regulations. [Formerly numbered Section 8-69; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 15-3,859, eff. 2/6/15; 3828; 2828.]

3-4-1005: RECORDS:

Every pawnbroker, secondhand dealer, junk dealer and/or junk collector shall keep a complete record in accordance with state law of any and all articles acquired by purchase, pledge, or otherwise received, sold or disposed of. Such record shall contain all of the information required to be shown by California Business and Professions Code Section 21628 and Section 3-4-1007A of this Code. [Formerly numbered Section 8-70; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 15-3,859, eff. 2/6/15; 2828.]

3-4-1006: INSPECTION:

All businesses governed by this Article shall be open at all times during normal operating hours to the inspection of the Chief of Police or any other peace officer. It shall be unlawful for any licensee/permittee or employee to prevent or hinder any peace officer from conducting an inspection. The right of reasonable inspection to enforce the provisions of this Article is a condition of the issuance of a permit. The applicant or licensee/permittee shall acknowledge this right of inspection at the time of application. Refusal to acknowledge this right of inspection is grounds for denial of the application. The right of inspection includes the right to require identification from responsible persons or employees on the premises. The refusal to allow inspection upon reasonable demand or the refusal to show identification by responsible persons or employees is grounds for the suspension, revocation, or other regulatory action against the permit. [Formerly numbered Section 8-71; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 15-3,859, eff. 2/6/15; 2828.]

3-4-1007: REPORTS:

A. Except as provided in Section 3-4-1008 of this Code, every pawnbroker, secondhand dealer, junk dealer and junk collector shall report daily, or on the first working day after receipt or purchase of secondhand tangible personal property, on forms or through an electronic reporting system approved by the California Department of Justice, all secondhand tangible personal property, except for firearms, which they have purchased, taken in trade, taken in pawn, accepted for sale on consignment, or accepted for auctioning, to the Chief of Police. The report shall be legible, prepared in English, completed where applicable, and include, but not be limited to, the following information:

The name, identification, and current address of the intended seller or pledger of the property.
A complete and reasonably accurate description of such property, including serial numbers or other identifying marks or symbols.
A certification by the intended seller or pledger that to their knowledge and belief the information is true and complete.
A certification by the intended seller or pledger that they are the owner of the property or has the authority of the owner to sell or pledge the property.

B. The Chief of Police shall daily submit the original report to the California Department of Justice. [Formerly numbered Section 8-72; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 15- 3,859, eff. 2/6/15; 2828, 2181.]

3-4-1008: EXCEPTIONS:

The provisions of this article shall not apply to any tangible personal property which has been:

A. Acquired from another secondhand dealer; provided the secondhand dealer selling or trading the tangible personal property states in writing under penalty of perjury, along with a description of the property, on an interdealer transfer form or an itemized bill of sale that the report or reports required by this Article have been properly made and submitted by that dealer. A copy of the form or the itemized bill of sale shall be delivered to the acquiring dealer at the time the transaction occurs. Interdealer transfer forms shall be provided at actual cost by the California Department of Justice.

The dealers involved in the transaction shall retain their copy of the interdealer transfer form or itemized bill of sale for a period of three (3) years as a matter of record, and shall make them available for inspection by any law enforcement officer.

B. Acquired in a nonjudicial sale, transfer, assignment, assignment for the benefit of creditors, or consignment of the assets or stock in trade, in bulk, or a substantial part thereof, of an industrial or commercial enterprise for purposes of voluntary dissolution or liquidation of the seller’s business, or for the purpose of disposing of an excessive quantity of personal property; or which has been acquired in a

nonjudicial sale or transfer from an owner of their entire household of personal property, or a substantial part thereof; provided, the secondhand dealer retains in their place of business for a period of three (3) years a copy of the bill of sale, receipt, inventory list, or other transfer document as a matter of record which shall be made available for inspection by any law enforcement officer; and provided further, that the secondhand dealer notifies the Chief of Police that exemption from reporting is being claimed under this subsection. "Industrial or commercial enterprise" and "owner" as used in this subsection do not include a secondhand dealer.

C. Acquired in a sale made by any public officer in their official capacity, trustee in bankruptcy, executor, administrator, receiver, or public official acting under judicial process or authority, or which has been acquired in a sale made upon the execution of, or by virtue of, any process issued by a court, or under the provisions of Division 7 (commencing with Section 7101) of the State Commercial Code.

D. Acquired as the surplus property of the United States government or of a state, city, county, city and county, municipal corporation, or public district and which after requisition or acquisition by the United States government or by a state, city, county, city and county, municipal corporation, or public district has never thereafter been sold at retail.

E. Reported by a secondhand dealer as an acquisition or a purchase, or which has been reported as destroyed or otherwise disposed of: 1) to a State agency by the authority of any other law of this State; or 2) to a city, county, or city and county officer or agency by the authority of any other law of this State or a city, county, or city and county ordinance.

F. Acquired by persons, firms, partnerships, or corporations who buy, sell, or trade precious metals, whether in the form of coins or commercial grade ingots, who: (1) are designated contract markets by or registered with the Commodity Futures Trading Commission under the Federal Commodities Exchange Act and acting pursuant thereto; or (2) infrequently conduct their business directly with members of the general public. As used in this subdivision, "infrequently" means occasional and without regularity. [Formerly numbered Section 8-73; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 15-3,859, eff. 2/6/15; 2828.]

3-4-1009: PROPERTY TO BE HELD FOR THIRTY DAYS BY SECONDHAND DEALERS:

Every secondhand dealer shall retain in their possession for a period of thirty (30) days all tangible personal property reported under the provisions of this article. The thirty (30) day holding period with respect to such tangible personal property shall commence with the date the report of its acquisition was made to the Chief of Police by the secondhand dealer. The Chief of Police may for good cause, as specified by the California Department of Justice, authorize prior disposition of any property described in a specific report; provided, that a secondhand dealer who disposes of tangible personal property pursuant to such authorization shall report the sale thereof to the Chief of Police. [Formerly numbered Section 8-74; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 15-3,859, eff. 2/6/15; 2828.]

3-4-1010: PROPERTY TO BE HELD FOR TEN DAYS BY JUNK DEALERS, ETC.:

Tangible personal property shall be held for ten (10) days by junk dealers and junk collectors. Every junk dealer or junk collector shall retain in their possession for a period of ten (10) days all tangible personal property reported under the provisions of this article. The ten (10) day holding period shall commence with the date the report of the acquisition of such property was made to the Chief of Police. The Chief of Police may for good cause authorize the prior disposition of any such property, or a junk dealer or junk collector, in lieu of holding the property for the prescribed ten (10) day period, may sell or dispose of such property, provided they obtain the name, address and description of the buyer and retains this information for a period of three (3) years as a matter of record which shall be made available for inspection by any law enforcement officer. [Formerly numbered Section 8-75; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 15-3,859, eff. 2/6/15; 2828, 2181.]

3-4-1011: LICENSE AND/OR PERMIT RENEWAL AND FORFEITURE:

A. A license and/or permit granted pursuant to this Article shall be renewable on July 1 and annually thereafter, upon the filing of a renewal application and the payment of any applicable license and/or permit renewal fees as specified herein.

B. The license and/or permit shall be subject to forfeiture and the licensee/permittee’s activities as a secondhand dealer, junk dealer or junk collector shall be subject to being enjoined for breach of any of the following conditions:

The business of secondhand dealer or junk dealer shall be carried on only in the building or buildings designated in the license.
The license and/or permit or a copy certified by the Community Development Department thereof, shall be conspicuously posted in the place of business of every licensee/permittee.
The licensee/permittee shall not engage in business with any minor under the age of eighteen (18).
The licensee/permittee shall not engage in any act which is in violation of any applicable state statute or this Code.
The licensee/permittee shall not be convicted of any offense, as outlined in Section 3-4-1004 of this Code, which would have been grounds for denial of the initial application. For purposes of this Article, "convicted" means a plea or verdict of guilty or a conviction following a plea of nolo contendere.
Any changed circumstance which would have been grounds for denial of the initial application.

No person shall have their renewal application be denied, nor shall their license and/or permit be forfeited solely on the grounds that they violated any provision contained in Article 4 (commencing with Section 21625) or Article 5 (commencing with Section 21650) of Chapter 9 of the California Business and Professions Code, or any provision contained in Chapter 2 (commencing with Section 21200) of Division 8 of the California Financial Code, unless the violation demonstrates a pattern of conduct. This prohibition, however, does not extend to violations of any licensing/permitting regulations of this Code that do not duplicate provisions of an applicable state regulatory statute. [Formerly numbered Section 8-76; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 15-3,859, eff. 2/6/15; 3828; 2874, 2828, 2181.]