Los Alamitos Municipal Code Ch. 5.36 Pawnbrokers and Secondhand Dealers

The following terms as used in this chapter shall have respective meanings as herein set forth unless the context clearly indicates otherwise:

"Pawnbroker"

means any person engaged in conducting, managing or carrying on the business of loaning money, for him or herself 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 re-sell such articles to the vendors or their assignees, at prices agreed upon at or before the time of such purchase.

"Person"

includes any person, firm, association, organization, partnership, business trust, corporation or company.

"Secondhand dealer"

means and includes any person, copartnership, firm, or corporation whose business includes buying, selling, trading, taking in pawn, accepting for sale on consignment, accepting for auctioning, or auctioning secondhand tangible personal property. A secondhand dealer does not include a coin dealer or participants at gun shows or events, as defined in Section 478.100 of Title 27 of the Code of Federal Regulations, or its successor, who are not required to be licensed pursuant to Sections 26700 to 26915, inclusive, of the Penal Code, who are acting in compliance with the requirements of Sections 26500 to 26585, inclusive, and 27545 of the Penal Code, and who are not a gun show trader, as described in Sections 16620 and 26525 of the Penal Code.

(Ord. 276 § 1, 1974; Ord. 13-06 § 2, 2013)

It is unlawful for a secondhand dealer or pawnbroker as defined in the preceding section of this code, to engage in such business within the city without first obtaining a permit therefor in compliance with the provisions of this chapter.

(Ord. 520 § 2, 1989)

Persons applying for permits under this chapter shall file a written, sworn application, signed by the applicant, if an individual, by all partners if a partnership, and by the president if a corporation, with the city clerk, showing:

A. The name or names of the person or persons having the management or supervision of applicant's business during the time that it is proposed that it will be carried on in the city; the local address or addresses of such person or persons while engaged in such business; the permanent address or addresses of such person or persons; the capacity in which such person or persons will act (that is, whether as proprietor, agent or otherwise); the name and address of the person, firm or corporation for whose account the business will be carried on, if any; and if a corporation, under the laws of what state the same is incorporated;

B. The fingerprints of the person or persons having the management or supervision of applicant's business or in lieu thereof, at least three letters of recommendation from reliable property owners in the county of Orange, certifying as to the applicant's good character and business responsibility, or other evidence which establishes to the satisfaction of the chief of police the good character and business responsibility of such person or persons;

C. The place or places in the city where it is proposed to carry on applicant's business;

D. Whether or not the person or persons having the management or supervision of the applicant's business have been convicted of crime, misdemeanor or violation of any municipal ordinance, the nature of such offense, the date and location thereof, and the punishment assessed therefor;

E. Credentials from a person for which the applicant proposes to do business, authorizing applicant to act as such representative; and

F. Such other reasonable information as to the identity or character of the person or persons having the management or supervision of applicant's business or the method or the plan of doing such business as the city clerk or chief of police may deem proper to fulfill the purpose of this chapter in the protection of the public good.

(Ord. 520 § 2, 1989)

Upon receipt of the application, the city clerk shall request the chief of police to conduct an investigation and prepare a written report on such person's or persons' business responsibility and moral character.

The application and written report shall be submitted to the city council for consideration by the council at a regular meeting. At least 10 days' notice shall be given to the applicant of the meeting and the applicant shall be given the opportunity to be heard at such meeting.

If the city council finds the applicant's character and business responsibility are unsatisfactory, or it is found that the operation of the applicant's business will not comport with the peace, health, safety, convenience and general welfare of the public, or that the applicant has a bad reputation for truth, honesty or integrity, is under the age of 18 years, has committed an act which would be grounds for discipline under this chapter, or has been refused a permit or had a permit revoked, then the council shall deny the application. If, however, the council finds that the applicant's business will not adversely affect the peace, health, safety, convenience and general welfare of the public and that the applicant's character and business responsibility are satisfactory, the permit shall be granted.

(Ord. 276 § 1, 1974)

At the time of submission of application, the applicant shall deposit with the city clerk a fee established by resolution of the city council to defray the costs of processing and investigation by the city.

The city clerk shall keep a full record in his office of all such permits issued. Each permit shall contain a number of the permit, the date it is issued, the nature of the business authorized to be carried on, the expiration date of the permit, the place where the business may be carried on under the permit, and the name or names of the person or persons authorized to carry on the same.

(Ord. 276 § 1, 1974; Ord. 2017-12 § 2, 2017)

No permit issued pursuant to the provisions of this chapter shall be transferred to any other person.

(Ord. 276 § 1, 1974)

It shall be the duty of the police officers of the city to examine all places of business and persons in their respective territories subject to the provisions of this chapter, to determine if this chapter has been complied with and to enforce the provisions of this chapter against any person found to be violating the same.

(Ord. 276 § 1, 1974)

The city clerk shall deposit the record or fingerprints of the permittee, together with a permit number, with the chief of police; the chief of police shall report to the city clerk any complaints against any person licensed under the provisions of this chapter and any conviction for violation of this chapter; the city clerk shall keep a record of all such complaints and violations and shall make a report thereof to the city manager.

(Ord. 276 § 1, 1974)

A. The permits issued pursuant to this chapter may be revoked by the city council after notice and hearing, for any of the following causes:

1. Any fraud, misrepresentation or false statement contained in the application for permit;

2. Any fraud, misrepresentation or false statement made in connection with the selling of goods, wares or merchandise;

3. Any violation of this chapter;

4. Conviction of the permittee of any felony or misdemeanor involving moral turpitude; or

5. Conducting the business licensed under this chapter in an unlawful manner or in such a manner to constitute a breach of the peace or to constitute a menace to the health, safety or general welfare of the public.

B. Notice of hearing of revocation of a permit shall be given in writing, setting forth specifically the grounds of the complaint and the time and place of the hearing. Such notice shall be mailed, postage prepaid to the permittee, at his last known address, at least five days prior to the date set for the hearing.

(Ord. 276 § 1, 1974)

All permits issued under the provisions of this chapter shall expire concurrently with the expiration of the permittee's business license.

(Ord. 276 § 1, 1974)

Every secondhand dealer and pawnbroker shall report all personal property which he has purchased, taken in trade, taken in pawn, accepted for sale on consignment, or accepted for auctioning to the chief of police of the city, not later than twelve noon of the date following the acquisition, or on the next succeeding business day. The chief of police is authorized to grant relief from the reporting requirements of this section if he otherwise routinely receives a copy of a report containing the information required in this section made by the permittee to any other governmental agency, whether federal, state or local.

(Ord. 276 § 1, 1974)

The provisions of Section 5.36.110 shall not apply to any secondhand property which has been:

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, and provided the acquiring secondhand dealer submits a copy of such statement to the chief of police. Each of the secondhand dealers involved in the transaction shall retain a copy of the statement referred to in this section for a period of three years as a matter of record which shall be made available for inspection by any law enforcement officer;

B. 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, of 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 section. "Industrial or commercial enterprise" and "owner" as used in this section do not include a secondhand dealer;

C. 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 under the execution of, or by virtue of, any process issued by a court, or under the provisions of the Warehouse Receipts Act;

D. Acquired in good faith as part or complete payment for other personal property by a person, copartnership, firm or corporation 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;

E. Acquired as the surplus property of the United States government or of a state, city, county, city and county, municipal corporation, or public district has never thereafter been sold at retail;

F. Acquired by gift and the donee, person, firm, partnership or corporation sells the property acquired by gift as a part of the charitable activity carried on by said person, firm, partnership or corporation.

(Ord. 276 § 1, 1974)

The chief of police may, upon the taking effect of this chapter, cause to be printed such a number of blank forms as may be necessary for carrying out the purposes of this chapter. Such forms, in addition to any other information relating to the transactions described in Section 5.36.120, which the chief of police may require, may have spaces for writing in the following matters: number of pawn ticket; amount loaned or paid for article; description of articles purchased; description of articles sold; description of articles otherwise dealt with; name and residence of person, firm or corporation from whom purchased; name and place of residence of person, firm or corporation to whom sold; name and place of residence of person, firm or corporation with whom otherwise dealt with; description of person to whom sold or with whom otherwise dealt with; showing true name as nearly as known; age, sex, complexion, color of mustache or beard or both where both are worn; style of dress; height, also the time when the articles were purchased, sold or otherwise dealt with.

(Ord. 276 § 1, 1974)

A. Every secondhand dealer and pawnbroker shall retain in his or her possession for a period of 30 days all personal property reported under the provisions of this chapter. The 30 day holding period with respect to such personal property shall commence with date the report of its acquisition was made to the chief of police by the secondhand dealer or pawnbroker.

B. A police officer of the city may require any secondhand dealer or pawnbroker, upon written notice, to hold property which the police 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 only upon written authorization of a police officer of the city.

(Ord. 276 § 1, 1974)

Every secondhand dealer or pawnbroker shall have 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 Section 5.36.110 and of this chapter. Every such record shall be open at all times during business hours to the inspection of any law enforcement officer.

(Ord. 276 § 1, 1974)

No secondhand dealer or pawnbroker shall operate such business other than between the hours of eight a.m. and nine p.m. daily and such business shall not be operated on Sundays or holidays.

(Ord. 276 § 1, 1974)

No pawnbroker shall accept property or pledges of property from any person under the age of 18 years.

(Ord. 276 § 1, 1974)

Every pawnbroker or secondhand dealer shall file with the city a bond in the sum of $5,000. The bond shall run to the city and to any person who has a cause of action against a pawnbroker or secondhand dealer licensed hereunder and such bond shall be conditioned that the obligor will faithfully conform to and abide by the provisions of the ordinance and the pawnbroker regulations contained in the Financial Code of the state of California.

(Ord. 276 § 1, 1974)

Any person who violates any provision of this chapter shall be guilty of a misdemeanor.

(Ord. 276 § 1, 1974)