Fountain Valley Municipal Code Ch. 4.50 Pawnbrokers and Secondhand Dealers

The term "pawnbroker" shall mean a person, firm or corporation engaged in conducting, managing or carrying on the business of loaning money, for himself or for any other person, upon personal property, personal security, 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 time of such purchase.

(Ord. 1181 § 1, 1992)

The term "pawnshop" shall mean any room, store or place in which business or activity described under Section 4.50.010 is engaged in, carried on or conducted.

(Ord. 1181 § 1, 1992)

(a) The term "secondhand dealer" shall mean a person, firm or corporation engaged in, conducting, managing or carrying on the business of buying, selling, or otherwise dealing in secondhand goods, wares or merchandise.

(b) Exemptions.

(1) Any person, firm or corporation who or which engages in the business of selling genuine antique articles which are purchased by such person, firm or corporation directly from a wholesale dealer in such articles, or which are imported into the United States of America by such person, firm or corporation, shall not be deemed to be a "secondhand dealer" by reason of engaging in such business.

(2) Any person, firm or corporation who or which acquires in good faith, identifiable secondhand property as part or complete payment for other personal property in the ordinary course of conducting a business of selling new personal property directly to the consumer, shall not be deemed to be a "secondhand dealer" by reason of engaging in such business.

(3) Any person, firm or corporation who or which engages in the business of selling used motor vehicles or used watercraft vessels shall not be deemed to be a "secondhand dealer" by reason of engaging in such business.

(4) Any person, firm, group, association or corporation who or which acquires in good faith, identifiable secondhand property for the sole purpose of distribution of such property by sale, gift or otherwise in furtherance of its stated objectives of promoting religious, charitable or educational purposes shall not be deemed to be a "secondhand dealer" by reason of engaging in such activities. Any such person, firm, group, association or corporation must file a request for exemption as a secondhand dealer with the city manager on a form provided by the city. A minimum of seventy-five percent of the gross proceeds, compensation and earnings obtained from such activities must be devoted to its stated religious, charitable or educational purposes in order to qualify for exemption.

(5) The exemptions set forth in subsection (b)(1) through (4) of this section do not apply to transactions involving (A) marine hardware, automotive, and motorcycle parts, and related equipment, with a retail value of over fifty dollars; or (B) bicycles and/or their parts, surfboards, firearms capable of being concealed, cameras and photographic equipment, typewriters, all business machines, sewing machines, all musical instruments, snow skis, tape recorders, record players and television sets.

(Ord. 1181 § 1, 1992)

In addition to the general application information required by Section 4.04.070 and the payment of the permit application fee required by Section 4.02.040, specific application information for a pawnbroker's permit is required. The specific information that shall be provided is as follows:

(1) A photograph of the applicant taken within sixty days immediately prior to the date of the filing of the application which picture shall be two inches by two inches showing the head and shoulders of the applicant in a clear and distinguishing manner, except that this requirement is waived with respect to an application for renewal of a permit by an applicant holding an unexpired permit issued under this chapter who has in a previous application under this chapter complied with this requirement.

(2) Applicant shall submit to being fingerprinted and shall submit the names of at least two reliable property owners of the county of Orange, state of California, who will certify as the applicant's good moral character and business responsibility or, in lieu of the names of reference, any other available evidence as to the good moral character and business responsibility of the applicant that will enable an investigator to properly evaluate such moral character and business responsibility, except that this requirement is waived with respect to an application for renewal of a permit where a person has made a pervious application under this chapter and has complied with this requirement. A fee for this investigation shall be paid to the city as set forth by city council resolution.

(Ord. 1181 § 1, 1992)

A person shall be prima facie disqualified for a pawnshop or secondhand dealer permit if he has been convicted of a felony. As used herein the term "conviction" includes pleas of guilty and nolo contendere. The chief of police, as the investigating officer, is specifically authorized to obtain state summary criminal history record information as provided for in Section 11105 of the Penal Code of the state of California.

(Ord. 1181 § 1, 1992)

(a) Time of Making. Every pawnshop and secondhand dealer shall on each Monday and Thursday before the hour of ten a.m. of said day, make out and deliver to the police department, on a blank form to be obtained from the police department by such pawnshop or secondhand dealer for such purpose, a full, true and complete report of all goods, or things received on deposit, pledged or purchased during the period preceding the filing of such report.

(b) Contents. Such report shall be in English and shall contain the name and place of business of the person making the same and the date and hour of the day when prepared. Such report shall show the hour of the day when each article was received on deposit, pledged or purchased, and the true name and address, as nearly as the same is known or can be ascertained by such pawnshop or secondhand dealer, of the person who left such article on deposit, or pledged or sold the same, together with a description of such person and a statement as to the fact that such person is over the age of eighteen years. Such report shall also show the number of the receipt of pawn ticket, the amount loaned, the amount purchased, and a complete description of each article left on deposit, pledged or purchased. If any article so left on deposit, pledged or purchased has engraved thereon any number, word or initial, or contains any setting of any kind, such report shall contain such number, word or initial, and shall show the kind of settings and the number of each kind.

(c) Confidential. The chief of police shall cause all reports received pursuant to the terms of this section to be filed in a secure place, and the same shall be open to inspection only by members of the police department, or upon order of a court of competent jurisdiction.

(Ord. 1181 § 1, 1992)

Every pawnbroker or secondhand dealer shall keep, for a period of three years, a complete record in the English language of all goods, wares, merchandise or things pledged to or purchased or received by him, which record shall contain all of the matters required to be shown in the reports referred to and described in Section 4.50.060 of this chapter. Every such record and all goods, wares, merchandise and things pledged to or purchased or received by any such secondhand dealer shall be open at all times during business hours to the inspection of the chief of police or any police officer of the city.

(Ord. 1181 § 1, 1992)

No person engaged in conducting, managing or carrying on the business of a pawnbroker or secondhand dealer, nor any agent or employee of any such person, shall fail, refuse or neglect to file any report of keep any record in the form, in any manner, at the time and in all respects in accordance with the requirements of this chapter, or fail, refuse or neglect to exhibit to the chief of police or any police officer of the city, immediately upon demand for the privilege of such inspection, any such record or any goods, wares or merchandise or things pledged to or purchased or received by such person.

(Ord. 1181 § 1, 1992)

No pawnbroker or secondhand dealer shall sell or otherwise dispose of any article, merchandise or thing within thirty days after the same has been received or purchased, nor fail to keep such article, merchandise or thing unaltered, as pledged or purchased, in lots separate and apart from other articles, merchandise or things in the place of business of such pawnbroker or secondhand dealer for a period of thirty days from the date of the pledge or purchase thereof.

(Ord. 1181 § 1, 1992)

No person engaged in, conducting, managing or carrying on the business of pawnbroker or secondhand dealer, or any agent or employee of any such person shall accept any pledge of or loan any money upon personal property, or purchase or receive any goods, wares or merchandise, or any article or thing, or in any manner whatsoever engage in or conduct any such business between the hours of twelve midnight on Saturday and the hour of seven a.m. of the following Monday, or between the hours of ten p.m. of any day, other than Saturday or Sunday, and the hour of seven a.m. of the following day.

(Ord. 1181 § 1, 1992)

Notwithstanding any other provisions of this chapter, every auction house manager, pawnbroker, secondhand dealer, and any merchant dealing in or offering for sale any item or items of secondhand jewelry or object of art or similar merchandise which is identifiable by number, letter, phrase, mark or other means of identification commonly recognized in trade, shall file with the police department the report required concerning any such item received from outside the state of California or received from any person, who within thirty days prior thereto, received it from outside the state of California or brought it into the state of California. Records of such articles shall be kept as required by Section 4.50.060.

(Ord. 1181 § 1, 1992)

Whenever any section of this chapter shall require a report to the police department, or shall require a record of any secondhand article, or shall require the holding of such article for any stated period of time by any secondhand dealer or anyone engaging in any business in this chapter specifically referred to, shall also include any merchant who receives for sale, attempts to sell, or displays for sale any such secondhand article for another person in expectation of receiving a commission or fee or gratuity, or reward therefor, or as an agent or broker, and each and every provision of this chapter shall thereupon be applicable to such person as though he were in the specific business mentioned herein.

(Ord. 1181 § 1, 1992)

If any person, firm or corporation shall engage in, conduct, manage or 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 engaged in conducting, managing and carrying on such businesses and such person, firm or corporation shall comply in all respects with the provisions of this chapter relating to each such business, and no person shall fail, refuse or neglect to do so.

(Ord. 1181 § 1, 1992)