Corona Municipal Code Ch. 5.42 Secondhand Dealers

Whenever in this chapter the following words or phrases are used, they mean:

(A) "Secondhand dealer."

(1) "Secondhand dealer" means and includes any person, copartnership, 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.

(2) "Secondhand dealer" also includes any person who engages in the business of buying or selling secondhand tangible personal property in excess of 20% of the gross sales and purchases or goods or merchandise sold or purchased in the regular course of business. Pawnbrokers who receive in pledge or purchase tangible personal property as defined in this chapter shall comply with the requirements of this chapter in addition to any other requirements of this code.

(B) "Tangible personal property."

(1) "Tangible personal property" means and includes, but is not limited to, 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.

(2) "Tangible personal property" also includes, but is not limited to, the following:

(a) 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;

(b) 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;

(c) All personal property commonly sold by secondhand dealers which statistically is found through crime reports to the California Attorney General to constitute a significant class of stolen goods.

(3) "Tangible personal property" as used in this chapter does not mean and 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 chapter, 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.

(`78 Code, § 5.42.010.) (Ord. 1597 § 1 (part), 1981.)

(A) No personnel shall carry on the business of a secondhand dealer without first having obtained a license from the city to do so in the manner provided in this chapter, which license shall be posted and maintained in a conspicuous place on the premises where such business is conducted.

(B) The following activities are exempt from license requirements.

(1) Authorized agent. The provisions of this section shall not apply to the receipt or sale of any secondhand goods, wares or merchandise by any person who receives the same as part payment on new goods, wares or merchandise, if such person is the authorized representative or agent of the manufacturer, jobber or distributor.

(2) Junk dealers or junk collectors. The provisions of this section shall not apply to or affect a junk dealer, junk collector or used car dealers.

(3) Secondhand dealer activities for charitable and nonprofit purposes. The provisions of this section shall not apply to any religious, charitable, fraternal, educational organization or association, which as part of its activities operates as a secondhand dealer solely for the purposes and objects for which such organization or association was formed and from which secondhand dealership the net gain, monetary or otherwise, is used only for the purposes and objects for which such organization or association was formed.

(C) The provisions of this chapter shall not apply to any tangible personal property which has been:

(1) (a) Acquired in good faith in a transaction involving the stock in trade of another secondhand dealer who previously has made the report or reports required by this chapter of such property included in the transaction and who states in writing that the report or reports so required have been made, provided and acquiring secondhand dealer submits a copy of such statement to the Chief of Police or to the Sheriff, on forms prescribed and provided by the Department of Justice, all tangible personal property which he or she has acquired in such transaction to the Chief of Police. Each of the secondhand dealers involved in the transaction shall retain a copy of the statement and the report referred to in this subdivision for a period of three years as a matter of record which shall be made available for inspection by any law enforcement officer;

(b) No report to the Chief of Police shall be required of the acquiring secondhand dealer if the other secondhand dealer states in writing under penalty of perjury, on a form prescribed and provided at actual cost by the Department of Justice, that the report or reports required by this chapter have been properly made and submitted by such dealer. Such a declaration shall be delivered to the acquiring dealer, who shall retain it for a period of three years as a matter of record and shall make it available for inspection by any law enforcement officer;

(2) 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, or 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 his or her entire household of personal property, or a substantial part thereof; provided, the secondhand dealer retains in his or her place of business for a period of three 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 subdivision. "Industrial or commercial enterprise" and "owner," as used in this subdivision, do not include a secondhand dealer;

(3) Acquired in a sale made by any public officer in his or her 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 the California Commercial Code;

(4) 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; and

(5) Reported by a secondhand dealer as an acquisition or a purchase or which has been reported as destroyed or otherwise disposed of:

(a) To a state agency by the authority of any other law of this state; or

(b) 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.

(`78 Code, § 5.42.020.) (Ord. 1597 § 1 (part), 1981.)

(A) Any person desiring to obtain a license for doing business as a secondhand dealer in the city shall make application in writing to the Chief of Police. The application shall be executed and verified by the applicant and shall set forth the following information:

(1) The name, age and residential address of applicant, if a natural person; or, if a corporation, its name, date and place of incorporation, address of its principal place of business and the names of all its officers, together with their respective addresses, if any person owns 10% or more of the stock of such a corporation, he or she is considered to be a secondhand dealer and must be named in the license application, or, if a partnership or association, the names of the partners or persons comprising the association, together with their respective addresses;

(2) The address at which the secondhand dealership is to be conducted;

(3) A statement as to whether or not an application for a similar license has been refused or canceled by the city or any other municipality or county in the state at any time prior to the date of the instant application; and if so, a full statement of the reasons therefor;

(4) The last two previous residential and/or business addresses of the applicant;

(5) Business, occupation or employment for the three years immediately preceding the filing of the application;

(6) Height, weight and color of eyes and hair of an applicant, if an individual;

(7) Two recent color photographs and fingerprints of applicant, if an individual, including persons owning 10% or more of a corporation applying for a license;

(8) Such other data and information as the Chief of Police may reasonably require for a proper review by him or her of the application. The application shall be accompanied by a fee which shall be established by resolution to defray the expenses of the city in reviewing and acting upon such application. The fee shall be in addition to any business license fee which is now or may hereafter be required to be paid by a secondhand dealer. The fee is nonrefundable.

(B) The Chief of Police, after a full investigation, shall submit the application to the Department of Justice. If the Department of Justice does not comment on the application within 30 days thereafter, the licensing authority may grant the applicant a license. All forms for application and license and license renewal shall be prescribed and provided by the Department of Justice. The Chief, with respect to any applicant’s character and moral integrity, shall deny an application for the license if the character, reputation or moral integrity of the applicant is found to be inimical to the public health, safety, morals or general welfare of city or if the applicant has been convicted of an attempt to receive stolen property or any other offense involving stolen property. The Chief shall issue or deny such license within 60 days from the date it is filed in his office. If the Chief grants such a license, its terms shall be for one calendar year from date of the grant. In making his or her determination, the Chief shall consider among other factors:

(1) All convictions, the reasons therefor and the conduct of the applicant subsequent to his or her release; and

(2) The license or permit history of the applicant, whether such person in previously operating as a secondhand dealer in the city or another city, county or state under a license has had such a license revoked and suspended, the reasons therefor and the conduct of the applicant subsequent to such suspension or revocation.

(`78 code, § 5.42.030.) (Ord. 2315 § 1 (part), 1997; Ord. 1597 § 1 (part), 1981.)

Within five days after receiving notification by certified mail that his or her application for a license or a renewal license to operate the business of a secondhand dealer under this chapter has been denied, any applicant may file with the City Clerk a written statement, addressed to the City Council of the city, requesting a public hearing on the application before the Council and stating therein written exceptions to the findings of fact upon which the Chief of Police based denial of the application. Applicants who have been denied a license because of a conviction for attempting to receive stolen property or any other offense involving stolen property should be informed of their right to review their criminal history record in accordance with the provisions of California Penal Code Article 5 governing the examination of records. The exceptions shall state why the applicant believes the Chief of Police acted improperly or failed to act properly. Upon the filing of such a statement, the Council shall fix a time, date and place for a public hearing thereon and shall notify the applicant thereof. The hearing shall be held at a regular meeting of the Council not later than 30 days from the date on which the written statement was filed with the City Clerk. At the hearing, the applicant may present evidence in support of his or her application and exceptions. The burden of proof shall be on the applicant. The Council, by resolution, shall, not later than 15 days after the conclusion of the hearing, make findings of fact and either deny or grant the application for a license, subject to any reasonable conditions thereto as it deems appropriate. The Council, in the resolution, shall state the facts upon which its decision is based and its ruling upon any exceptions to the Police Chief’s original findings of fact upon the application. A copy of the resolution shall be served by mail upon the applicant and all parties to the hearing requesting the same.

(`78 Code, § 5.42.040.) (Ord. 1597 § 1 (part), 1981.)

Any license issued under the provisions of this chapter shall be subject to revocation by the licensing authority and the licensee’s activities as a secondhand dealer shall be subject to being enjoined pursuant to Business and Professions Code § 21646 for breach of any of the following conditions:

(A) If business is carried on in a building or buildings other than those designated in the license;

(B) If the license or a copy thereof, certified by the licensing authority, is not displayed on the premises where it can easily be seen;

(C) If the licensee engages in the business of secondhand dealer, as defined in § 5.42.010, with any minor;

(D) If the licensee engages in any act which is in violation of the chapter;

(E) If the licensee is convicted of an attempt to receive stolen property or any other offense involving stolen property.

(`78 Code, § 5.42.050.) (Ord. 1597 § 1 (part), 1981.)

Whenever the Chief of Police has probable cause to believe a permittee under this chapter has operated the business of a secondhand dealer in violation of this chapter or has made a materially false statement in his or her application for a license or has violated any law relating to or regulating such business, in addition to other remedies provided in this chapter, he or she shall immediately give licensee written notice, by certified special delivery mail, of a hearing to be held by the Chief within two days of the date of mailing to determine whether or not the license should be revoked. This notice shall state the date, time and place of hearing and contain a statement of the facts upon which the Chief has acted in calling the hearing. At the hearing the licensee and any other interested person shall have the right to present evidence as to the facts upon which the Chief proposes to revoke the license and any other facts which may aid the Chief in determining whether any of the prohibited acts has occurred. If, after such hearing, the Chief finds that any or all of the acts have occurred, he or she shall, within two days after the hearing, serve by certified mail upon the licensee and all interested persons participating in the hearing and requesting same a written statement of the facts upon which he or she bases such finding and shall immediately revoke the license.

(`78 Code, § 5.42.060.) (Ord. 1597 § 1 (part), 1981.)

(A) Within five days after receiving notification by certified mail that his, her or its license under this chapter has been revoked, any licensee may file with the City Clerk a written notice of appeal from the revocation, addressed to the Council, requesting a public hearing before the Council on the appeal and stating therein written exceptions to the findings of fact upon which the Chief based his or her revocation of the license. The exceptions shall include, but not be limited to, statements why the licensee believes the Chief acted improperly or failed to act properly. Upon the filing of the notice of appeal, the Council shall fix a time, date and place for a public hearing thereon and shall send by certified mail to the licensee a notice of the time, date and place of the hearing. The hearing shall be held at a regular meeting of the Council not more than 30 days from the date on which the notice of appeal was filed with the City Clerk. At the hearing, the licensee may present evidence in support of his or her stated exceptions and the reissuance of his or her license. Any interested party, including the Chief of Police, may, in the discretion of the Council, be allowed to participate in the hearing and present evidence in support of or in opposition to the revocation. The burden of proof shall be on the Chief of Police.

(B) The Council, by resolution, shall, no later than 15 days after the conclusion of the hearing, make findings of fact and either affirm or reverse the Chief’s revocation of license. The Council, in the resolution, shall state the facts upon which its decision is based and its ruling upon any exceptions filed to the Chief’s original findings of fact upon the revocation. A copy of the resolution shall be served by mail upon the applicant and all parties to the hearing requesting the same. The Council’s decision by the resolution shall be final and conclusive.

(`78 Code, § 5.42.070.) (Ord. 1597 § 1 (part), 1981.)

Any license issued under the provisions of this chapter shall be renewable from year to year upon application therefor to the Chief of Police. The application shall be made within 30 days from the date of the expiration of the license or the last renewal thereof, and if not so made, the license shall be null and void and not renewable. The fee established pursuant to § 5.42.030 shall be charged for any application for a yearly renewal of any license issued under the provisions of this chapter. The licensee shall be entitled to a new license for the ensuing year upon the payment of the required renewal license fee and an endorsement by the Chief of Police upon the existing license that he or she approves of the renewal.

(`78 Code, § 5.42.080.) (Ord. 2315 § 1 (part), 1997; Ord. 1597 § 1 (part), 1981.)

(A) Provisions supplemental to business license regulations. The provisions of this chapter are intended to augment and be in addition to the provisions of Chapter 5.02 providing for a business license tax. Whenever the provisions of this chapter impose a greater restriction upon person, premises or practices than is imposed by the general business license regulations, the provisions of this chapter shall control.

(B) Merchants, agents or brokers. Whenever the provisions of this chapter require a report to be given to the Police Department, a record to be maintained of any secondhand article or the holding of such article for any stated period of time by any secondhand dealer, such provisions shall also include any merchant, agent or broker who receives for sale, attempts to sell or displays for sale any secondhand article for another person in expectation of receiving a commission, fee, gratuity or reward therefor. Every provision of this chapter shall be applicable to such person as though he or she were engaged in the specific activity regulated herein.

(`78 Code, § 5.42.090.) (Ord. 1597 § 1 (part), 1981.)

(A) Every secondhand dealer shall report daily, or on the first working day after receipt or purchase of such property, on forms prescribed and provided at actual cost by the 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 to the Chief of Police. The Police Chief shall file all such reports and the same shall be open to inspection only by members of the Police Department or upon order of a court of competent jurisdiction. The report shall contain the following information:

(1) The name and place of business of the person preparing the report;

(2) The date and hour of preparation;

(3) The date and time of day each article was received or purchased;

(4) The name and address of the person from whom such article was received or purchased; a description of him or her as required by the Chief of Police and identification evidenced by a motor vehicles operator’s license, motor vehicle license, work badge number and personal signature;

(5) The amount paid for each article;

(6) In the event any article received or purchased has engraved thereon any number, word or initial or contains any settings of any kind, the report shall include such number, word or initial and shall indicate the kind of settings and the number of each;

(7) A complete description of each article, including color, the manufacturer’s name, model number, serial number, identification mark and any peculiarities of the article;

(8) A certification by the intended seller that to his or her knowledge and belief the information is true and complete.

(B) Every secondhand dealer shall maintain a complete record of all goods, wares or merchandise purchased or received, which record shall contain all of the matters required to be shown in the report referred to in division (A). The records and all goods, wares or merchandise purchased or received shall be open and available at all times during normal business hours to the inspection of the Police Chief or his or her authorized representative. Each such record shall be kept for at least one year from and after the date of the transaction to which it refers.

(`78 Code, § 5.42.100.) (Ord. 1597 § 1 (part), 1981.)

The following limits shall be placed upon the activities of a secondhand dealer.

(A) No secondhand dealer shall sell or otherwise dispose of any article within 30 days after such article has been purchased or received.

(B) Every secondhand dealer shall retain in his or her possession for a period of 30 days all tangible personal property received. The 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 Department of Justice, authorize prior disposition of any such property described in a specific report, provided that a secondhand dealer who disposes of tangible personal property pursuant to authorization shall report the sale thereof to the Chief of Police. Early release is discretionary on the part of the Chief of Police.

(C) A police officer may place a hold on property acquired by a secondhand dealer in the course of his or her business for an additional period of 30 days to run subsequently to the hold period provided for in division (A) of this section, and upon release of such property, may require such secondhand dealer to keep a record of the disposition of such property. It is unlawful for any person to dispose of any property contrary to any hold order issued by a police officer.

(`78 Code, § 5.42.110.) (Ord. 1597 § 1 (part), 1981.)

Every report, record and application required by the terms of this chapter to be filed with city or kept by a licensee shall be written or printed entirely in the English language in a clear and legible manner.

(`78 Code, § 5.42.120.) (Ord. 1597 § 1 (part), 1981.)

It is unlawful for any person to sign or give a fictitious name or address upon the sale of any goods, wares, merchandise or thing of value under this chapter or to use a fictitious name in the report required to be made pursuant to this chapter.

(`78 Code, § 5.42.130.) (Ord. 1597 § 1 (part), 1981.)

The Chief of Police may waive or modify any or all of the requirements or prohibitions provided in § 5.41.100(A), § 5.42.110.(A) and (E) and § 5.42.030(A)(1) through (6) subject to any such waiver or modification being appealed by any person aggrieved thereby to the City Council in accordance with the procedures stated in § 5.42.060; provided, however, the appellant shall file with the City Clerk a written notice of appeal from the Chief’s determination within ten days after the determination, addressed to the Council, requesting a public hearing before the Council on the appeal and stating therein the factual and legal grounds upon which he or she alleges the Chief made an improper determination. After a public hearing has been set on the appeal, the City Clerk shall send by certified mail to the appellant a notice of the time, date and place of the hearing. At the hearing, the appellant may present evidence in support of his or her appeal. The burden of proof shall be upon the appellant. The Council shall not later than 15 days after the conclusion of the hearing either affirm, reverse or modify the Chief’s determination by formal motion. The Council’s decision by the motion shall be final and conclusive.

(`78 Code, § 5.42.140.) (Ord. 1597 § 1 (part), 1981.)

A violation of any provision of this chapter is a misdemeanor. Any person found guilty of a violation of a provision hereof shall be punished as follows:

(A) For the first offense, a fine of up to $1,500 or imprisonment in the county jail up to two months, or both;

(B) For the second offense, a fine of up to $5,000 or imprisonment in the county jail up to four months, or both;

(C) For the third, and any subsequent offense, a fine of up to $25,000 or imprisonment in the county jail up to six months, or both.

(`78 Code, § 5.42.150.) (Ord. 1597 § 1 (part), 1981.)