El Monte Municipal Code Ch. 5.68 Pawnbrokers and Secondhand Dealers

For the purpose of this chapter the following words and phrases shall be construed as herein set forth, unless it is apparent from the context that a different meaning is intended:

"Pawnbroker" means any person operating the business of loaning money on the security of personal property pledged in his or its keeping, or of purchasing personal property, and agreeing at or before the time of purchase to resell the same to the vendor at a stipulated price. A "pawnshop" is any room, store, or place in which the business of pawnbroker is conducted.

"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. Secondhand dealer also includes any person who engages in the business of buying or selling secondhand tangible personal property in excess of twenty (20) percent of the gross sale and purchases of goods or merchandise sold or purchased in the regular course of business. Secondhand dealer, as used in this chapter, does not include any person who performs the services of an auctioneer for a fee or salary.

"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 of personalized initials or inscriptions. Tangible personal property also includes, but is not limited to, the following:

1. 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;

2. 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; and

3. All personal property commonly sold by secondhand dealers which statistically is found through crime reports so the California Attorney General so constitute a significant class of stolen goods as is determined and supplied to the Chief of Police by the California Attorney General. 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 purpose of the 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.

(Prior code §§ 6310—6310.2, 6310.4)

The provisions of this chapter shall not apply to:

A. 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;

B. Junk and/or salvage dealers or automobile junk dealers;

C. Any religious, charitable, fraternal, educational organization or association, which as part of its activities operates as a secondhand dealer solely for the purpose and objectives 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 objectives for which such organization or association was formed;

D. Used car dealers unless a used car dealer receives or accepts anything of value other than cash or another used vehicle as a down payment, part payment or full payment on, of, or for the sale of a used vehicle. In the event that any used car dealer accepts or advertises or holds himself or herself out as willing to accept anything of value other than cash or another used vehicle as a down payment, part payment or full payment on, of or for any used vehicle sold by him or her, such used car dealer shall conclusively be presumed, held and construed to be a secondhand dealer for all purposes and subject to all the regulations of this chapter and the license fee imposed by Section 5.08.360 of this title;

E. Tangible personal property which has been:

1. 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 the acquiring secondhand dealer submits a copy of such statement to the Chief of Police, on forms prescribed and provided by the Department of Justice for all tangible personal property which he or she acquired in such transaction. Each of the secondhand dealers involved in the transaction shall retain a copy of the statement and the report referred to in this Section for a period of three (3) years as a matter of record which shall be made available for inspection by any law enforcement officer,

a. 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 (3) 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 (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 Section, 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 (1) to a state agency by the authority of any other law of this state or (2) to a city, county, 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.

Notwithstanding the aforementioned exemptions, the provisions of this chapter shall apply to any tangible personal property which has been acquired by a secondhand dealer with the understanding or expectation that such property would later be reacquired by the transferor or an agent thereof.

(Prior code § 6310.3)

No person shall carry on the business of pawnbroker or secondhand dealer without having first obtained a permit from the city so to do in the manner herein provided, which permit shall be posted and maintained in a conspicuous place on the premises where such business is conducted.

(Prior code § 6311)

A. In addition to all requirements specified in or imposed under Chapter 5.12 of this title, the application for a permit for any business or occupation described in this chapter shall contain a statement as to whether or not an application for a similar permit has been refused or any similar permit canceled by this city or by any other agency of government, and if so, a full statement of the reasons for such refusal or cancellation.

B. Execution. All applications for a permit must he filed by the applicant and, if the applicant is a corporation or partnership, the same must be signed by a duly authorized officer on behalf of the corporation, or any member of the partnership.

(Prior code §§ 6312, 6312.1)

A permit to carry on any business mentioned in this chapter shall not be granted to any person who has failed, refused, or neglected to comply with the laws and ordinances relating to and regulating the business for which such permit is sought.

(Prior code § 6313)

If the permit or license of any person to engage in or conduct any business described in this chapter is revoked, no permit or license shall be granted to such person to carry on or engage in any such business within twelve (12) months after the date of such revocation.

(Prior code § 6316)

Every pawnbroker shall daily file with or mail to the Chief of Police all reports required by Section 21208 of the California Financial Code on forms prescribed and provided at actual cost by the Department of Justice.

(Prior code § 6318)

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, by forwarding the original and the duplicate copy thereof to the Chief of Police. The triplicate copy thereof shall be retained by the secondhand dealer in his place of business for a period of three (3) years and shall be made available for inspection by any law enforcement officer. The report shall include, but not be limited to, the following information:

A. The name and address of the intended seller of the property;

B. A complete and reasonably accurate description of such property, including serial numbers or other identifying marks or symbols;

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

D. All other information provided for on forms prescribed and provided by the Department of Justice.

(Prior code § 6318.1)

Every business machine dealer shall report all used business machines which he or she has purchased, repaired, taken in trade, or accepted for sale or consignment, from an individual, to the Chief of Police in accordance with the provisions of Section 5.68.080. No report of repair shall be required from a dealer servicing or repairing a machine in the possession of the owner to whom that dealer sold that machine when it was new. As used in this Section, the term "business machines" means and includes, but is not limited to, typewriters, adding machines, check-writing devices, cash registers, calculators, addressing machines, copying and accounting equipment, letter-sorting and folding devices, and recording equipment, but does not include office furniture or fixtures.

(Prior code § 6318.1.1)

A copy of this chapter, to be furnished by the City Clerk, shall be kept conspicuously posted in the place of business of every pawnbroker or secondhand dealer.

(Prior code § 6318.2)

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

(Prior code § 6320)

The Chief of Police upon receipt of a form filed pursuant to the provisions of this chapter shall cause the original to be submitted daily to the Department of Justice. The Chief of Police shall cause the duplicate copy of all such reports to be filed in the office of the Police Department and the same shall be open to inspection only by members of the Police Department or upon order of a court of competent jurisdiction.

(Prior code § 6321)

No person engaged in the business of pawnbroker or secondhand dealer, or any agent or employee of any such person, shall fail, refuse or neglect to file any report in accordance with the provisions of this chapter, or fail, refuse or neglect to keep any record or records as required by this chapter, or fail, refuse or neglect to exhibit to any Police Officer of the city, immediately upon demand for such inspection, any such record of any goods or things pledged to or purchased or received by such person.

(Prior code § 6322)

Every secondhand dealer shall retain in his or her possession for a period of thirty (30) days all tangible personal property reported under the provisions of Sections 5.68.080 and 5.68.090. 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 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 such authorization shall report the sale thereof to the Chief of Police.

(Prior code § 6323)

If any person shall carry on, at the same time, more than one of the businesses defined and referred to in this chapter, such person shall be deemed to be carrying on each such business separate and apart from the other such business.

(Prior code § 6324)