Compton Municipal Code § 9-19 Secondhand Dealers, Pawnbrokers, Junk Dealers, Auto Wreckers and Swap Meets

[Ord. #856, § 6480; Ord. #1221; Ord. #1391]

As used in this section:

AUTO WRECKER

Shall mean every person who buys or receives any motor vehicle, as the term "motor vehicle" is defined in the State Vehicle Code, or other vehicle for the purpose of dismantling or disassembling any such motor vehicle or other vehicle, or reconditioning any such motor vehicle or other vehicle, or selling or otherwise dealing in the materials or parts of such motor vehicle or other vehicle.

BUY-FORM

Shall mean the form furnished by the Chief of Police to the licensee for the purpose of the recording and furnishing by the licensee to the Chief of Police of the required information relative to purchases, pledges, or consignments.

JUNK COLLECTOR

Shall mean a person not having a fixed place of business in the City who goes from house to house, or from place to place, gathering, collecting, buying, selling, or otherwise dealing in any old rags, sacks, bottles, cans, papers, metal (including gold or mercury), or other articles commonly known as junk.

JUNK DEALER

Shall mean a person (not an auto wrecker) having a fixed place of business in the City and engaged in conducting the business or buying, selling, or otherwise dealing in, either at wholesale or retail, any old rags, sacks, bottles, cans, paper, metal (including gold or mercury), or other articles known as junk.

PAWNBROKERS

Shall mean a person engaged in carrying on the business of pawnbroking; or the business of lending money for himself or any other person upon personal property, pawns, or pledges; or the business of purchasing articles of personal property and reselling, or agreeing to resell, such articles to the vendors or their assignees at prices agreed upon at or before the times of such purchase.

PAWNSHOP

Shall mean any room, store, building, or other place in which any business of a pawnbroker is engaged.

SECONDHAND DEALER

Shall mean a person (other than a used car dealer or a dealer in secondhand books or magazines) engaged in carrying on a business of buying, selling, or otherwise dealing in secondhand goods.

SWAP MEET

Shall mean the act or practice of carrying on, on a single location or premises, the exchange, barter, trade, sale, or purchase of personal property among or between 25 or more persons, not otherwise licensed to do business in the City, less frequently than six times per week.

SWAP MEET OPERATOR

Shall mean that person or group of persons who organizes or administers any swap meet.

SWAP MEET PARTICIPANT

Shall mean that person or group of persons who sets up a table or booth or establishes any location within swap meet premises to exchange, sell or purchase goods.

[Ord. #856, § 6481]

Before engaging in any of the businesses defined in this section, the person proposing to enter into or conduct any such business shall obtain the license so to do required by this section, and in addition thereto, such licensee shall be subject to each and all of the terms, conditions, and provisions of this section. No such license shall be granted until an application has been filed with and approved by the Council. Such application shall include a statement of all other locations, within and without the City, where the applicant is conducting similar businesses. Applicants shall furnish the fingerprints of all persons, including the applicant, who will be active in dealing with the public in connection with the proposed business.

[Amended by Ord. #1221, § 6481.1]

No license shall be issued to any applicant, and any license issued to carry on any of the businesses defined in this section may be revoked by the Council upon evidence satisfactory to the Council that the applicant or the licensee, his agents or employees in connection with his proposed or existing business, or any person connected or associated with the applicant or licensee as a partner, director, officer, stockholder, or person who is exercising, or is proposing to exercise, managerial authority of or on behalf of the licensee at such premises has:

a. Knowingly made any false, misleading, or fraudulent statement of a material fact in an application for a permit or in any record or report required to be filed with the Police Department or City; or

b. Violated any provision of this Code or of any statute relating to his permitted activity; or

c. Been convicted of a felony or other crime involving theft, embezzlement, or moral turpitude; or

d. Committed any act constituting dishonesty or fraud; or

e. Committed any unlawful, false, fraudulent, deceptive, or dangerous act while conducting a licensed business; or

f. Published, uttered, or disseminated any false, deceptive, or misleading statements or advertisements in connection with the operation of a licensed business; or

g. Violated any rule or regulation adopted by the Council or Police Department relating to the business of the licensee; or

h. Wilfully failed to comply with the terms of any contract made as a part of the exercise of the licensed business; or

i. Conducted the licensed business in a manner contrary to the peace, health, safety, and general welfare of the public; or

j. Demonstrated that he is unfit to be trusted with the privileges granted by such licensee.

[Ord. #856, § 6482]

The Chief of Police shall cause to be prepared such numbers of the Buy-Form referred to in this section as may be necessary in order to enable the respective licensees under the provisions of this section to execute and file the same and shall furnish such forms free to such licensees for the purpose of their complying with the provisions of this section.

[Ord. #856, § 6482.1]

A copy of this section, together with any amendments thereto that affect the type of business of the licensee, shall be furnished each new licensee upon the first delivery to such licensee of the Buy-Form. A reasonable number of additional copies of this section, and amendments thereto, may be procured from the office of the Chief of Police by any licensee upon request.

[Ord. #856, § 6482.2]

Every such licensee shall obtain from the Chief of Police, and fill out and complete in quadruplicate, an appropriate Buy-Form covering each day's transactions of such licensee. Within three hours after the close of business of any business day, each such licensee shall mail or deliver to the Chief of Police the original Buy-Form, together with two duplicate copies thereof, covering the business transacted on such day.

[Ord. #856, § 6482.3 — 6482.4; Ord. #1349]

The Buy-Forms referred to in this section shall contain a full, true, and complete report of all goods or things received on deposit, consigned, pledged, or purchased during the day covered by such form, and shall also contain such other information as may be required by the Chief of Police and which, in the opinion of the Chief of Police, considering the type of business of the licensee, may assist in the detection of stolen property. Each such licensee shall enter, or cause to be entered, upon the Buy-Form positive identification furnished by the seller, pledgemaker, or consignor, such as his driver's license number, work badge number, auto or truck license number, or junk collector's business license number, in addition to the true name and address of the seller, pledgemaker, or consignor. The licensee shall require the seller, pledgemaker, or consignor to furnish a plain impression fingerprint of his right index finger, or next finger in the event of amputation, upon the reverse side of the original sheet of the Buy-Form.

a. Copies. Every licensee shall preserve for a period of at least two years the fourth, or quadruplicate, copy of the Buy-Form containing a carbon copy record thereon of the original writing made, or caused to be made, by the licensee, the original of which has been furnished to the Chief of Police. Every such record shall be produced by the licensee for inspection by any peace officer within such two-year period, and any property pledged, purchased, or received by such licensee which is described or referred to in any such Buy-Form shall likewise be produced by such licensee for inspection by the peace officer upon request, if such request is made within the period during which the licensee is required by the provisions of this section.

[Ord. #856, § 6482.5]

The Chief of Police shall maintain a file consisting of the originals of all Buy-Forms received pursuant to the provisions of this section for a period of at least two years after receipt thereof, and such Buy-Forms shall be open to inspection by any peace officer.

[Ord. #856, § 6482.6]

Every such Buy-Form, report, or record made by or through the licensee shall be written or printed entirely in the English language in a clear and legible manner.

[Ord. #856, § 6482.7]

Every person making any Buy-Form report shall sign his true name and give the true name and correct address of the licensee.

[Ord. #856, § 6482.8; Ord. #1221]

Every person who sells, pledges, or consigns any property to any licensee in the course of business covered by the license of such licensee, shall furnish on the "Buy-Form" report or record, true positive identification to the licensee by which such person can be located by the Chief of Police. Such person shall also sign his true name and age and write or print his true address upon the "Buy-Form" in the space provided for same at the same time such business is transacted. No person shall sign a fictitious name or age or any other than his true name and age, or give any address other than his true and correct address.

[Ord. #856, § 6482.9]

No person shall write the name of any other person as a signature to any "Buy-Form," report or record, as all such "Buy-Forms," reports and records shall bear as signatures only the true names of the persons so subscribing the same.

[Ord. #856, § 6482.10]

No person shall fail, refuse or neglect to submit the "Buy-Forms" to the Chief of Police within the time required by, and in full compliance with, the provisions of this section, if such forms have not been so submitted by some other person, and if such person is:

a. A person required by this section to obtain a license; or

b. A person in charge of the business of such person required by this section to obtain a license; or

c. An agent or employee of such person required by this section to obtain a license; and the duties of such agent or employee include the submission of such "Buy-Forms."

[Ord. #856, § 6482.11; Ord. #1221]

No licensee engaging in, managing, conducting or carrying on the business of a "Junk Dealer", "Junk Collector", "Secondhand Dealer", "Auto Wrecker", or "Pawnbroker", or his employee or agent, shall receive, buy, trade, exchange or otherwise acquire an interest in any goods or things, from any person under the age of 18 years. Any statement to such licensee, employee or agent by a person under the age of 18 years to the effect that he or she is over the age of 18 years shall not excuse such licensee or his agent or employee of such licensee from any violation of this section.

[Added by Ord. #1221, § 6482.12]

No person shall interfere with, prevent, or refuse to permit a police officer to make an examination, inspection, or copy of any record of a licensee hereunder, or to examine the premises of the business establishment as described in said business license or to examine or inspect any property acquired by the licensee or his agents in the course of their business.

[Ord. #856, § 6483]

A foundry or junk dealer shall not melt, destroy, sell or otherwise dispose of any metal purchased or received by such dealer which is, or by economically feasible repair can be made usable for the purpose for which it was originally designed, until at least 21 days after making a report to the Chief of Police, as required by the provisions of this section, that such metal has been received by such foundry or junk dealer.

[Ord. #856, § 6483.1; Ord. #1221]

The following rules and regulations shall govern junk dealers:

a. Rules Listed:

1. All articles of property defined as junk under Subsection 9-19.1 received or purchased shall be described fully and reported within 24 hours on a form approved by the Police Department. The report shall be filled out completely and legibly written in the English language. A duplicate record shall be kept at the place of business and shall be open for inspection by any peace officer.

(a) Exceptions. The following articles of property shall be exempt from Rule 1: Old rags, papers, boxes, bottles, sacks, rope and metals other than those described in Rules 2 and 3.

2. All non-ferrous metals and nickel alloys (including Monel and Nickeloy) defined as junk received or purchased shall be held 21 days in the same condition as when received and shall be open to public view.

(a) Exceptions. Non-ferrous metals and nickel alloys may be released or sold within 21 days of reporting to the Chief of Police providing authorization has been received from the Chief of Police. The licensee shall for a period of two years keep a record of the destination and disposition of property released in this manner and such record shall be made available for inspection of any peace officer. Such authorization shall not relieve the licensee of any responsibility, in the event said property is later determined to be stolen.

(b) Whenever a licensee contracts to purchase scrap metals from the responsible head of public utility companies, airplane factories, manufacturers of metal products or other prime "generators" of metal products and the payment for such scrap metals is by check made payable to the company involved, the holding and reporting provisions set forth shall not apply. The recording provisions of Subsection 9-19.20, however, shall remain in full force and effect.

3. The following ferrous metals defined as junk received or purchased shall be held three days after the report reaches the Police Department. Such metals must remain in the same condition as when received, and shall be open to public view during this holding period: fence material, pipe, chain, foundry castings, and cable.

4. It shall be the responsibility of the licensee to notify the Chief of Police in writing immediately of any change in management or ownership or location.

5. It shall be the responsibility of the licensee to familiarize himself and his agents with all the laws whether state or local, relating to the junk business.

6. No storage facilities, other than those approved by the Chief of Police, shall be maintained.

7. Articles of property defined as junk received or purchased from another licensee who has recorded, reported and held such junk as required, shall be exempt from further holding or reporting providing the selling licensee gives the buying licensee written assurance of such recording, reporting and holding. In this instance, the selling licensee shall be held responsible for any failure to report or hold.

8. The licensee shall enter on the required form the license number of the junk collector from whom the property was purchased or received.

9. All bicycles or bicycle parts received, purchased or disposed of (as junk) by a licensee shall be recorded, reported and held in accordance with instructions from the Juvenile Division of the Police Department. Licensee, before dealing in bicycles or their parts, shall contact the Juvenile Division of the Police Department.

10. A copy of these Rules and Regulations shall be posted in a conspicuous place on the premises.

[Ord. #856, § 6483.2; Ord. #1221; Ord. #1337; Ord. #1349]

The following rules and regulations shall govern pawnbrokers:

a. Rules Listed.

1. It shall be the responsibility of the licensee to notify the Chief of Police in writing immediately of any change of management, ownership, or business location.

2. It shall be the responsibility of the licensee to familiarize himself and his employees and agents with all the laws, whether state or local, relating to the pawn broker business.

3. No storage facilities, other than those approved by the Chief of Police, shall be maintained.

4. All goods or personal property purchased shall be held 24 hours from the time of such purchase in the same condition as when received.

5. A copy of these Rules and Regulations shall be posted in a conspicuous place on the premises.

[Added by Ord. #1391, § 6483.3]

The following rules and regulations shall govern swap meets:

a. The provisions of this section shall apply to the operators of all swap meets in the City. The provisions of this section shall apply to all items or articles of property sold and exchanged at or in any swap meet or in connection with the business of operating a swap meet. The operator of each swap meet shall be responsible for compliance with the provisions of this section on the part of each participant therein. The operator of each swap meet shall be responsible for compliance with the provisions of this section as to all the items or articles of property sold or exchanged in connection with the operation of such business.

b. Swap meet operators shall be required to employ persons approved by the Chief of Police and in such numbers as he shall determine appropriate, based on the size and sponsorship of the swap meet.

c. Swap meet operators shall confirm that all vendors selling or offering for sale at the swap meet possess a valid City license and verify the ownership of merchandise offered for sale.

[Ord. #856, § 6484]

The Chief of Police may place a hold order upon any property acquired by the licensee in the course of any business subject to the provisions of this section for a period of not to exceed 90 days, and in such case the licensee shall retain such property for the prescribed period and shall not dispose of such property in the meantime unless upon written release of the Chief of Police. The Chief of Police may also require the licensee to keep a true record of any such property and to ascertain and report therewith the true name and address of the person to whom such property was sold, transferred, or otherwise disposed of.

a. Release. The Chief of Police in his discretion may, in writing, release any property covered by this section which he has inspected, either personally or through his authorized officers, if after such inspection he is satisfied that such property is in the lawful possession of the licensee.

[Ord. #856, § 6485]

Except as hereinafter provided, goods covered by duly executed and filed Buy-Forms and with respect to which any waiting periods provided for herein are being observed may be sold or conveyed by the licensee possessing the same to any other licensee of the City engaged in the same or a similar business who is complying with the provisions of this section without the necessity of executing and delivering new Buy-Forms therefor; provided, however, both the seller and the buyer in such cases shall notify the Chief of Police, in writing, of such transfer at or before the time the transfer is actually made, and provided, further, the transferee shall observe all unexpired withholding periods with reference to any such goods.

[Ord. #856, § 6485.1]

The exceptions set forth in Subsection 9-19.21 shall not apply to purchases made by junk dealers from junk collectors or to transfers of property between such dealers and collectors.

[Ord. #856, § 6485.2]

The waiting period required by this section shall not apply to property purchased on a bill of sale or invoice from a regularly established place of business. As used in this section, "established place of business" shall mean a place of business within the county which has been dealing in the type of articles purchased at the same location for not less than two years. Until any articles, goods, or things pledged or consigned to or purchased by any licensee subject to the provisions of this section are held for the time required by this section or released by the Chief of Police, such licensee shall not clean, alter, repair, paint, or otherwise change the appearance of such articles, goods, or things. At all times during business hours such licensee shall expose the same to public view.

[Ord. #856, § 6486]

No licensee subject to the provisions of this section shall export from the City any goods or things pledged or consigned to or received by such licensee in his capacity as such licensee until the Chief of Police has inspected and released such property.

[Ord. #856, § 6486.1; Ord. #1221]

The provisions of this section requiring withholding and the making and filing of Buy-Forms shall not be deemed to apply to:

a. The purchase or sale by junk dealers or junk collectors of rags, bottles (other than milk or cream bottles), secondhand sacks (other than cloth cement sacks), shoes, lamps, stoves, or household furniture (with the exception of sewing machines, televisions, radios, all musical instruments, or any items to which the manufacturer thereof has assigned a serial number);

b. The purchase or sale by secondhand dealers of household furniture (with the exception of sewing machines, televisions, radios, all musical instruments, typewriters, or any other items to which the manufacturer has assigned a serial number); and

c. The receipt or sale of a secondhand article by any person who received such secondhand article as part payment of a new article, if such person is the authorized representative or agent of the manufacturer of the new article sold.

[Ord. #856, § 6487]

No person engaged in conducting any business affected by or to which this Chapter relates shall fail to make or file any Buy-Form, statement, or report required by this Chapter in the form, in the manner, at the time, and in all respects as required by and in full conformity with the requirements of this Chapter; or fail to keep the records required in the form and in the manner required by this Chapter, or fail to exhibit to the Chief of Police, or to any police officer of the City or other duly authorized person, immediately upon demand for the privilege of such inspection, any such record or any goods in his possession or under his control.

[Ord. #856, § 6488; Ord. #1221; Ord. #1391]

No person engaging in any business defined in this Chapter shall accept any pledge of, or loan money upon, personal property, or purchase or receive any goods, article, or thing, or engage in or conduct any such business in any manner:

a. Between the hours of 7:00 p.m. and 8:00 a.m. on any day from Monday to Saturday, inclusive;

b. Between the hours of 7:00 p.m. Saturday and 8:00 a.m. of the following Monday; provided, however, any such place of business may be kept open between the hours of 7:00 p.m. and 9:00 p.m. on any day from Monday to Saturday, inclusive, provided the only business done therein during such overtime hours shall be that of selling goods or other personal property;

c. On any of the following holidays: New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, and Christmas; provided, however, from December 14 to December 24, inclusive, excluding Sundays, any such place of business may be kept open until 10:00 p.m. provided the only business done therein during such overtime hours shall be that of selling goods or other personal property;

d. Except in the case of swap meet, where no such business may be conducted in any manner between the hours of 9:00 p.m. and 7:00 a.m., Monday through Sunday, inclusive, and on the following holidays: New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, and Christmas; provided, however, from December 14 to December 24, inclusive, any such swap meet may be kept open until 10:00 p.m.

[Ord. #856, § 6489; Ord. #1062]

Before receiving or acting upon an application for the granting of a permit to an auto wrecker or junk dealer, the Council shall as hereinafter defined require:

a. The payment of $300 as a permit fee therefor.

b. Any person having a permit or City license as an auto wrecker or junk dealer which has been previously issued to him shall comply with all of the provisions of this section and, upon the expiration of his yearly permit, shall secure a renewal thereof in conformity with the provisions hereof.

[Ord. #856, § 6489.1]

The Council shall, before granting a renewal of any yearly permit, require the payment of a $10 fee therefor.

[Ord. #856, § 6489.2; Ord. #1062]

Any person having a permit issued for the conduct of the business of auto wrecker or junk dealer under the provisions of this subsection, or under this section, may file an application for a transfer of location upon the payment of a $10 fee for so doing, and it shall not be necessary to pay any other permit fee herein required in connection with a change of location; provided, however, the permit fee of $300 heretofore mentioned shall entitle any person to operate only one auto wrecking yard or junk yard in the City, and any person desiring an additional, separate, and new location shall make a new application to the Council, in conformity with the procedure heretofore outlined in this section, and shall pay an initial filing fee of $300 for so doing; providing, further, that any person holding a license or permit to conduct an auto wrecking yard or junk yard at a given location should desire to enlarge or extend the area of said place of business by adding thereto adjoining or contiguous property, shall not be deemed to be operating more than one auto wrecking yard or junk yard, but in the event such adjacent or contiguous property is desired to be used in connection with the original business location, the holder of said permit shall file an application with the Council for a permit to include such additional adjoining or contiguous property and shall pay therefor a fee of $10 for so doing. Permits are not assignable.

[Added by Ord. #1279, § 6489.3]

No person shall be granted a permit by the Council to conduct an auto wrecker or junk dealer business, nor shall any such permit previously granted be renewed, unless, as a condition thereof, the subject premises shall be entirely enclosed with either a solid masonry wall, a concrete block wall, a solid wood fence, or a solid metal fence not less than eight feet in height, with such entrances thereto equipped with solid gates not less than eight feet in height; except that corrugated metal shall not be utilized in the construction of such fence or gates. This provision shall not be deemed to limit the duty of the Council to impose other or further conditions to the granting or renewal of any such permit reasonably deemed necessary to protect and preserve the public peace, health and safety, and general welfare.

An auto wrecker or junk dealer business lawfully existing on September 8, 1966, is hereby granted an automatic variance so as to permit the continuation of said use for a period not exceeding three years from September 8, 1966, provided no additions or enlargements of such use are made during the period of such automatic variance except those required by law unless full compliance with the provisions hereof are effected prior to such additions or enlargements, and the same are otherwise approved as may be required by law.