Laguna Niguel Municipal Code Art. 8 Secondhand Dealers, Pawnbrokers and Coin-Currency Dealers

(a) Every pawnbroker, secondhand dealer, junk dealer and coin-currency dealer shall report all personal property which he has purchased, taken in trade, taken in pawn or accepted for auctioning to the chief of police not later than 12:00 noon of the day following the acquisition of such property.

(b) Every person, or the agent, employee or representative of such person, who buys, sells, holds or receives in pledge any used or secondhand merchandise, junk, metals, precious metals, antiques or any personal property shall obtain evidence of the identity of the seller, including but not limited to such person's full name, signature, address, telephone number and driver's license number, and ascertain that the person selling or delivering the property has a legal right to sell, dispose of or pledge the property. The burden shall be upon the purchaser of the property to show that, before buying, receiving or otherwise obtaining such property, he made reasonable inquiry as to its ownership.

(c) The following property is excepted from the report requirements of this section:

(1) Property acquired in good faith in a transaction involving the stock in trade of another pawnbroker, secondhand dealer or coin-currency dealer who previously has made the report required by this section of such property included in the transaction and who states in writing that the report so required has been made, provided the acquiring party submits a copy of such statement to the chief of police. Each of the pawnbrokers, secondhand dealers or coin-currency dealers involved in the transaction shall retain a copy of the statement for a period of three years, and it shall be available for inspection by any law enforcement officer.

(2) Property 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 entire household of personal property, or a substantial part thereof; provided the pawnbroker, secondhand dealer or coin-currency dealer retains in his place of business for a period of three years a copy of the bill of sale, receipt, inventory list or other transfer document, which shall be available for inspection by any law enforcement officer; and provided, further, that the pawnbroker, secondhand dealer or coin-currency dealer notifies the chief of police within ten days after such acquisition that exemption from reporting is being claimed under this section. The terms "industrial or commercial enterprise" and "owner," as used in this subsection, do not include a pawnbroker, secondhand dealer or coin-currency dealer.

(3) Property acquired in a sale made by any trustee in bankruptcy, executor, administrator, receiver or public official acting pursuant to law, or which has been acquired in a sale made pursuant to the liquidation of any lien in the manner authorized by law.

(4) Property acquired in good faith as part or complete payment for other personal property by a person whose principal business is primarily that of selling or trading personal property directly to the consumer; provided, however, that in such transaction no consideration other than stock in trade shall pass from the business enterprise to the person trading or exchanging the used item.

(5) Property acquired directly from a governmental body or agency by purchase.

(6) Property otherwise previously reported by a pawnbroker, secondhand dealer or coin-currency dealer to any federal, state or local governmental officer or agency by the authority of any other law as an acquisition or a purchase, or which has been reported as destroyed or otherwise disposed of.

(7) Property acquired as a gift by a donee for charitable or eleemosynary purposes.

(Ord. No. 90-11, § 5, 3-6-90)

(a) The chief of police shall prepare and provide without charge forms to persons required to make reports pursuant to this article. Such forms shall require such information as the chief of police may deem necessary to identify the parties to each reportable transaction, the property which is the subject thereof, and other details of the transaction which may aid him in law enforcement.

(b) Every pawnbroker, secondhand dealer or coin-currency dealer shall keep a complete record of all personal property pledged to, purchased, received or sold by him, which record shall contain all the matters required to be shown in the reports referred to in this section. Every such record shall be open at all times during business hours to the inspection of any law enforcement officer. All reports and records required by the terms of this article shall be written or printed in the English language in a clear and legible manner.

(Ord. No. 90-11, § 5, 3-6-90)

Every pawnbroker, secondhand dealer and coin-currency dealer shall retain in his possession for a period of 30 days all personal property reported under the provisions of this article. The 30-day holding period, with respect to such personal property, shall commence with the date the report of its acquisition is made to the chief of police by the pawnbroker, secondhand dealer or coin-currency dealer. At the written direction of any law enforcement officer, a pawnbroker, secondhand dealer or coin-currency dealer shall hold property which the officer has reason to believe is stolen for a period not to exceed 90 days from the date of placing such hold. Such property may be released at any time, but only upon written authorization of the chief of police. Such property shall be available at all times during business hours for inspection by any law enforcement officer. Each day, all articles which were acquired or accepted the preceding day shall be displayed for inspection.

(Ord. No. 90-11, § 5, 3-6-90)

No pawnbroker, secondhand dealer or coin-currency dealer shall buy, trade, accept on consignment or for auction, or loan money for property from any person under 18 years of age unless such person is accompanied by a parent, guardian or other person having custody of that minor. The broker or dealer must obtain written permission from the parent, guardian or other person having custody of the minor before the broker or dealer may buy, trade, accept for consignment or auction, or loan money for property from such minor. The written permission shall be included with the report which is required under section 5-3-106. The written permission shall include a statement that the minor is the owner of or has been duly authorized by the owner of the property to dispose of or pawn it, and it shall be executed either as an affidavit or as a declaration under penalty of perjury.

(Ord. No. 90-11, § 5, 3-6-90)