Chapter 5.20 — PAWNBROKERS, SECONDHAND DEALERS AND JUNK DEALERS

The term “pawnbroker” shall have the same meaning as that term is defined in California Financial Code Section 21000. (Ord. 2016-10 § 2 (part), 2016; Ord. 2023-22 § 259, 2023)

The term “pawnshop” means any room, store, or place in which the business or activity described in Section 5.20.010 is engaged in, carried on, or conducted. (Ord. 2016-10 § 2 (part), 2016)

The term “secondhand dealer” shall have the same meaning as that term is defined and limited in California Business and Professions Code Sections 21626 and 21626.5. Any person or entity exempt from being considered a “secondhand dealer” pursuant to California Business and Professions Code Section 21625 et seq. shall also be exempt from being considered a “secondhand dealer” by this chapter. (Ord. 2016-10 § 2 (part), 2016; Ord. 2023-22 § 260, 2023)

The term “junk dealer” shall have the same meaning as that term is defined in California Business and Professions Code Section 21601. (Ord. 2016-10 § 2 (part), 2016; Ord. 2023-22 § 261, 2023)

A. Requirement. No person shall engage in, conduct, manage or carry on the business of a pawnbroker, junk dealer or secondhand dealer, or deal in secondhand merchandise either as a business or as a part of any other business, without first applying for and receiving a permit or license (hereinafter referred to as “permit”) therefor from the Chief of Police.

B. Application Form. The form on which application shall be made for a permit hereto or
renewal thereof shall require, at minimum, the following information:

1. Name of the applicant and complete physical description of him or her;

2. Residence and business address of the applicant;

3. A statement as to whether or not the applicant holds or has held any pawnbroker and/
or secondhand dealer permit from any state, municipality, governing body or
licensing authority; a list of such permits and a statement of the time, place and by
whom issued; a statement as to whether any state, municipality, governing body or
licensing authority has ever refused to issue or to renew a permit to the applicant and
if so, a full and accurate statement as to the reasons for any such refusal; a statement
as to whether any state, municipality, governing body or licensing authority has ever
revoked a permit held by the applicant and if so, a full and accurate statement as to
the reasons for any such revocation;

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City of Newport Beach, CA § 5.20.050 BUSINESS LICENSES AND REGULATIONS § 5.20.050

4. A statement as to whether or not the applicant has ever been arrested for any crime,
misdemeanor or criminal violation of any municipal ordinance and if so, the nature of
the offense and the punishment or penalty assessed therefor, if convicted; and

5. Applicant shall submit to being fingerprinted, except that this requirement is waived
with respect to an application for renewal of a permit where a person has made a
previous application under this chapter and has complied with this requirement.

C. Investigation. The Chief of Police shall cause to be made such investigation of the
applicant’s application for compliance with this chapter and any applicable State
regulation.

D. Report of Investigation. The Chief of Police shall complete his or her investigation herein
provided for and shall make a written report within ninety (90) days that certifies whether
or not the requirements of this chapter have been satisfied.

E. Multiple Businesses. 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 business separate and apart from the other such business 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.

F. Revocation or Refusal. A permit applied for hereunder may be refused by the Chief of
Police if the Chief of Police determines that the applicant has been convicted of an attempt
to receive stolen property or any other offense involving stolen property or that the permit
holder engaged in any act which the permit holder knows to be in violation of this chapter
and such violation demonstrates a pattern of conduct. For the purposes of this section,
“convicted” means a plea or verdict of guilty or a conviction following a plea of nolo
contendere.

A permit issued hereunder may be revoked by the Chief of Police or an application for
renewal of such permit may be refused by the Chief of Police and the permit holder’s
activities pursuant to the permit may be prohibited if the Chief of Police determines after
notice and hearing:

1. That the business was not carried on only at the location designated on the permit.
The permit will designate all locations where property belonging to the business is
stored. Property of the business may be stored at locations not designated on the
permit only with the written consent of the City; or

2. That the permit or a copy thereof, issued by the Police Department, was not displayed
on the premises in plain view of the public; or

3. That the permit holder engaged in any act which the permit holder knows to be in
violation of this chapter and such violation demonstrates a pattern of conduct; or

4. That the applicant has been convicted of an attempt to receive stolen property or any
other offense involving stolen property. For the purposes of this section, “convicted”
means a plea or verdict of guilty or a conviction following a plea of nolo contendere.
The Chief of Police may revoke or refuse renewal of such permit when the time for
appeal of the conviction has elapsed, or the judgment of conviction has been affirmed

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City of Newport Beach, CA § 5.20.050 NEWPORT BEACH CODE § 5.20.070

on appeal, or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under the provisions of California Penal Code Section 1203.4; or

5. That the permit holder has not fully and truth-fully filed a renewal application and
paid the permit renewal fee specified by the City.

G. Appeal. Any person aggrieved by the action of the Chief of Police in the denial of an
application for permit or renewal of permit as provided heretofore shall have the right of
appeal to the City Manager. Such appeal shall be taken by filing with the City Manager
within fourteen (14) days of the postmark date of the Chief of Police’s notice of denial sent
to the person’s last known address a written statement setting forth fully the grounds for
appeal. The appeal shall set forth the particular condition and the reasons that the applicant
believes the findings or decision is in error. The City Manager shall set a time and place for
a hearing of such appeal and notice of such hearing shall be served in the manner provided
in Section 1.08.080. The decision of the City Manager on such appeal shall be final as to
the City but subject to judicial review pursuant to California Code of Civil Procedure

Every person or entity applying to conduct or carry on the business of a pawnbroker, junk dealer or secondhand dealer, as a separate business, shall pay an initial license application fee to the City not to exceed the actual costs incurred to process the application as that fee is established by resolution of the City Council from time to time. In addition, the City shall collect from every person or entity applying to carry on the business of pawnbroker, junk dealer, or secondhand dealer as a separate business the fee charged by the Department of Justice for its processing of the application. The City shall transmit the fee charged by the Department of Justice to the Department of Justice.

Every person or entity conducting or carrying on the business of a pawnbroker, junk dealer or second-hand dealer, as a separate business, shall pay to the City a renewal fee as that fee is established by resolution of the City Council from time to time each time every such person or entity applies for renewal of such license. The fee shall not exceed the actual costs incurred to process the renewal application. In addition, the City shall collect from every person or entity seeking renewal of such license the fee charged by the Department of Justice for its processing of the renewal application. The City shall transmit the fee charged by the Department of Justice to the Department of Justice.

Every person dealing in secondhand merchandise in connection with and incidental to any other business shall pay the license fee required by the laws of the City of Newport Beach for said other business plus an additional fee as established by resolution of the City Council. (Ord. 2016-10 § 2 (part), 2016)

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City of Newport Beach, CA § 5.20.070 BUSINESS LICENSES AND REGULATIONS § 5.20.100

A. Reporting Requirement for Pawnbrokers and Secondhand Dealers. Every pawnbroker and second-hand dealer shall make out and submit a full, true and complete report of pawnbroker and secondhand dealer transactions, the form and contents of which shall comply with the provisions of California Business and Professions Code Sections 21628, 21628.2, 21630, and 21631.

B. Confidentiality. The Chief of Police shall cause all reports received pursuant to the terms
of subsection (A) 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, upon order of a court of competent
jurisdiction, or as otherwise required by law.

C. Reporting Requirement for Junk Dealers. Every junk dealer shall make out and deliver to
the Police Department a full, true and complete report, the form and contents of which shall
comply with California Business and Professions Code Section 21606 on the form
prescribed by the Department of Justice, including Form BCIA 127, “Record of Junk Sale
or Purchase.”
(Ord. 2016-10 § 2 (part), 2016; Ord. 2023-22 § 263, 2023)

Unless Federal or State law requires a shorter time period, every pawnbroker and 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 5.20.070 or 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. Every junk dealer shall comply with the records preservation requirements of California Business and Professions Code Section 21607. (Ord. 2016-10 § 2 (part), 2016; Ord. 2023-22 § 264, 2023)

No person engaged in conducting, managing or carrying on the business of a pawnbroker, secondhand dealer, or junk dealer, nor any agent or employee of any such person, shall fail, refuse or neglect to file any report or keep any record in the form, in the 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 of Newport Beach, 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. 2016-10 § 2 (part), 2016)

A. No pawnbroker or secondhand dealer shall sell or otherwise dispose of any article, merchandise or thing required to be reported per Section 5.20.070 within thirty (30) 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

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City of Newport Beach, CA § 5.20.100 NEWPORT BEACH CODE § 5.20.140

for a period of thirty (30) days from the date of pledge or purchase thereof. The Chief of Police or Department of Justice may, for good cause as specified by the Department of Justice, authorize prior disposition of any such article, merchandise, or thing required to be reported per Section 5.20.070 provided that the pawnbroker or secondhand dealer who makes such disposition pursuant to such authorization reports the sale thereof to the entity making the authorization.

B. No junk dealer shall sell or otherwise dispose of any article, merchandise or thing within three days after 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 junk dealer for a period of three days from the date of pledge or purchase thereof. (Ord. 2016-10 § 2 (part), 2016)

§ 5.20.110. (Reserved)

Reserved. (Ord. 2016-10 § 2 (part), 2016)

No person engaged in, conducting, managing or carrying on the business of pawnbroker, secondhand dealer, or junk 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 12:00 midnight on Saturday and the hour of 7:00 in the morning of the following Monday, or between the hour of 7:00 in the afternoon of any day, other than Saturday, and the hour of 7:00 in the morning of the following day, other than Sunday. (Ord. 2016-10 § 2 (part), 2016)

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 the 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 (30) 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 5.20.080. (Ord. 2016-10 § 2 (part), 2016)

Secondhand Articles.

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 junk dealer or anyone engaging in any business in this chapter specifically referred to, it 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

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City of Newport Beach, CA § 5.20.140 BUSINESS LICENSES AND REGULATIONS § 5.20.140

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. 2016-10 § 2 (part), 2016)

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City of Newport Beach, CA § 5.25.010 BUSINESS LICENSES AND REGULATIONS § 5.25.030