Chapter 5.58

PAWNBROKERS, USED MERCHANDISE DEALERS, AND AUCTIONEERS

For the purpose of this chapter, the words in this section shall have the meanings assigned to them:

"Auctioneer" means any person who at public outcry offers for sale, as principal or agent, to the highest bidder on the spot, any article of merchandise or other property, or who engages in the business of accepting for auctioning, or auctioning secondhand personal property except under trade by virtue of legal process.

"Pawnbroker" means a person engaged in conducting, managing or carrying on the business of loaning money, for himself 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 resell such articles to the vendors or their assignees, at prices agreed upon at or before the time of such purchase.

"Used merchandise dealer" as used in this chapter means and includes any person who engages in the business of buying, selling, trading, or accepting for sale on consignment secondhand property. The provisions of this chapter shall have no application to secondhand or new car dealers, nor to the sale of fruits, vegetables, or other perishable foodstuffs. (Prior code 6450; Ord. 25-71; Ord. 32-78; Ord. 21-81)

No person shall conduct business as a pawnbroker, used merchandise dealer, or auctioneer within the City without first obtaining a proper permit therefor, as provided in this chapter or as provided by state law. The provisions of this chapter shall not be applicable to a business which is licensed pursuant to Business and Professions Code Section21640, et seq. (Prior code 6450.1; Ord. 25-71; Ord. 32-78; Ord. 21-81)

Application for a pawnbroker, used merchandise dealer, or auctioneer permit shall be made to the Business Services Coordinator who shall refer all such applications to the Chief of Police for an investigation.

(Prior code 6450.2; Ord. 25-71; Ord. 32-78; Ord. 21-81)

The Chief of Police shall cause each applicant to be fingerprinted and photographed, a record of which shall be kept in the office of the Chief of Police. The applicant shall pay the amount set by the State for processing the fingerprints. The Chief of Police shall cause an investigation of each applicant to be made to determine if such applicant has committed any act that if done by a permittee would be grounds for revocation or suspension of a permit, or if such applicant has been convicted of a felony or any crime that has a substantial relationship to the permitted business.

(Prior code 6450.3; Ord. 25-71; Ord. 32-78; Ord. 21-81)

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City of Orange, CA

BUSINESS TAXES AND REGULATIONS

§ 5.58.050

§ 5.58.060

Every pawnbroker, used merchandise dealer, and auctioneer shall report all personal property which he or she 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 12:00 noon of the day following the acquisition of such property.

(Prior code 6450.4; Ord. 153; Ord. 25-71; Ord. 32-78; Ord. 21-81)

The following are secondhand goods excepted from the report requirements of Section 5.58.050:

• A. Acquired in good faith in a transaction involving the stock in trade of another pawnbroker, used merchandise dealer or auctioneer who previously has made the report or reports required by Sections 5.58.050 and 5.58.070 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 pawnbroker, used merchandise dealer or auctioneer submits a copy of such statement to the Chief of Police. Each of the pawnbrokers, used merchandise dealers or auctioneers 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 pawnbroker, used merchandise dealer or auctioneer 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 pawnbroker, used merchandise dealer or auctioneer 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 pawnbroker, used merchandise dealer or auctioneer.

• 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 upon 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 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 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,

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City of Orange, CA § 5.58.060

ORANGE CODE

§ 5.58.100

municipal corporation, or public district has never thereafter been sold at retail.

• F. Reported by a pawnbroker, used merchandise dealer, or auctioneer as an acquisition or a purchase, or which has been reported as destroyed or otherwise disposed of, or:

  1. To a state agency by the authority of any other law of this State; or

  2. To a city, county, or 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.

• G. Acquired by gift and the person sells the property acquired by gift as a part of the charitable activity carried on by said person.

• H. Acquired at a swap meet as defined in Section 5.74.010 of the Orange Municipal Code.

• I. The provisions of this chapter have no application to a person whose sales of secondhand personal property are confined to the disposal of goods accepted in trade and as part payment for new merchandise; provided, further, however, that such new merchandise is not then redeemable in cash to the person trading or exchanging the used item.

• (Prior code 6450.5; Ord. 25-71; Ord. 32-78; Ord. 13-79; Ord. 21-81)

• A. A permittee under this chapter shall utilize the forms prescribed and provided at actual cost by the Police Department.

• B. Each day all articles which were purchased the preceding day shall be available for inspection by the Police Department. The reporting requirements of this section shall be no less than the reporting requirements of Section 21625, et seq. of the California Business and Professions Code.

(Prior code 6450.6; Ord. 9-80; Ord. 21-81)

Every pawnbroker, used merchandise dealer or auctioneer shall have a complete record of all personal property pledged to, purchased, received or sold by him or her which record shall contain all the matters required to be shown in the reports referred to in Sections 5.58.050, 5.58.070 and 5.58.110 of this chapter. Every such record shall be open at all times during business hours to the inspection of any law enforcement officer. (Prior code 6450.7; Ord. 153; Ord. 25-71; Ord. 32-78; Ord. 21-81)

Every report and record required by the terms of this chapter shall be written or printed entirely in the English language in a clear and legible manner. (Prior code 6450.8; Ord. 25-71; Ord. 32-78; Ord. 21-81)

Every pawnbroker, used merchandise dealer, and auctioneer 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 the date the report of its acquisition was made to the Chief of Police by the pawnbroker, used merchandise

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City of Orange, CA

BUSINESS TAXES AND REGULATIONS

§ 5.58.100

§ 5.58.120

dealer or auctioneer. A police officer of the City may require any pawnbroker, used merchandise dealer, or auctioneer, upon written notice, to hold property, which the police officer has reason to believe is stolen, for a period not 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. The Chief of Police or designee(s) in the Detective Division may release any property covered by this section and waive any holding period therein, when determined in the public interest to do so. Any such release or waiver shall be in writing and signed by the Chief of Police or designee(s) in the Detective Division on an appropriate form designated by the Police Department for such purpose.

(Prior code 6450.9; Ord. 25-71; Ord. 32-78; Ord. 13-79; Ord. 21-81)

No person conducting a business as a pawnbroker, used merchandise dealer, or auctioneer shall buy, trade, accept for consignment or auction, or loan money for secondhand property from any person who is under 18 years of age unless said person is accompanied by that person's parent, guardian or other person in lawful custody of the person who is under 18 years of age. The person conducting a business as a pawnbroker, used merchandise dealer, or auctioneer shall obtain the written permission, under penalty of perjury, from the parent, guardian or other person in lawful custody of the person who is under 18 years of age before the person conducting a business shall buy, trade, accept for consignment or auction, or loan money for secondhand property from any person who is under 18 years of age. A copy of the written permission shall be included with the report which is required under Section 5.58.050.

(Prior code 6450.10; Ord. 32-78; Ord. 21-81)

The permit fee shall be per applicant in such amount as is established from time to time by resolution of the City Council.

(Ord. 18-07)

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City of Orange, CA

BUSINESS TAXES AND REGULATIONS

§ 5.59.010

§ 5.59.040