San Bruno Municipal Code Ch. 4.42 Pawnbrokers—secondhand Dealers

No person shall conduct or operate any of the following businesses or activities within the city without obtaining a license or permit as provided in this chapter:

A. Secondhand dealer;

B. Pawnbroker.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

The following words and phrases, whenever used in this chapter, shall be construed as defined in this section:

"Pawnbroker"

means and includes any person engaged in the business of receiving goods, including motor vehicles, in pledge as security for a loan as set forth in California Financial Code Section 21000.

"Permittee"

means and includes any person, who is employed to work or who works for a pawnbroker or secondhand dealer business as defined by this chapter.

"Reverse telephone vending machine"

means a machine which dispenses cash to the depositor in return for a mobile cellular device.

"Secondhand dealer"

as set forth in Business and Professions Code Section 21626 (secondhand dealer; coin 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; or whose principal business is the buying, selling, and trading of coins, monetized bullion, or commercial ingots of gold, or silver, or other precious metals. A "secondhand dealer" does not include 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. A "secondhand dealer also excludes those services and activities set for in Business and Professions Code Section 21626.5 (secondhand dealer; exclusion).

"Tangible personal property"

means all secondhand tangible personal property that bears a serial number or personalized initials or inscription or that, at the time it is acquired by the secondhand dealer, bears evidence of having had a serial number or personalized initials or inscription and as further defined in Business and Professions Code Section 21627(a) through (d) inclusive ("tangible personal property" defined). In addition, "tangible personal property" includes mobile cellular phone devices when deposited in reverse telephone vending machines.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

It is unlawful and a public nuisance for any person to conduct or operate a business mentioned in this chapter or to permit such a business in any establishment operated by such person unless a license or permit is first secured.

Prior to being allowed to work in such a business mentioned in this chapter, any employee or agent must first secure a valid work permit issued by the chief of police or his/her designee.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

A. Pawnbroker.

1. The chief of police shall accept an application for and grant a license or permit allowing the licensee or permittee to engage in the business of pawnbroker, as defined in Section 21000 of the California Financial Code, at the address indicated on the application, to an applicant who has complied with the requirements of Sections 21303, 21304 and 21305 of the Financial Code and has not been convicted of an attempt to receive stolen property or any other offense involving stolen property. (Note: References in this chapter to provisions of state law shall also refer to successor provisions of such state statutes as applicable.) Prior to the granting of a license or permit, the licensing authority shall submit the application to the Department of Justice. If the Department of Justice does not comment on the application within thirty days thereafter, the licensing authority shall grant the applicant a license or permit. All forms for application and licensure and license renewal shall be prescribed and provided by the Department of Justice.

2. For the purposes of this section, "convicted" means a plea or verdict of guilty or a conviction following a plea of nolo contendere.

3. Notwithstanding subsections (A)(1) and (A)(2), no person shall be denied a pawnbroker license or permit solely on the grounds that he or she violated any provision contained in Chapter 2 (pawnbroker regulations) of Division 8 (pawnbrokers) of the Financial Code (commencing with Section 21200), Article 4 (tangible personal property) (commencing with Section 21625) or Article 5 (resale of goods) (commencing with Section 21650) of Chapter 9 (secondhand goods) of Division 8 of the Business and Professions Code, unless the violation demonstrates a pattern of conduct.

B. Secondhand Dealer.

1. The chief of police shall accept an application for and grant a license or permit allowing the licensee or permittee to engage in the business of secondhand dealer, as defined in Section 21626 of the Business and Professions Code, to an applicant who has not been convicted of an attempt to receive stolen property or any other offense involving stolen property. Prior to the granting of a license or permit, the licensing authority shall submit the application to the Department of Justice. If the Department of Justice does not comment on the application within thirty days thereafter, the licensing authority may grant the applicant a license or permit. All forms for application and licensure, and license renewal, shall be prescribed and provided by the Department of Justice.

2. For the purposes of this section, "convicted" means a plea or verdict of guilty or a conviction following a plea of nolo contendere.

3. Notwithstanding subsections (B)(1) and (B)(2), no person shall be denied a secondhand dealer license or permit solely on the grounds that he or she violated any provision contained in Article 4 (tangible personal property) (commencing with Section 21625) or Article 5 (resale of goods) (commencing with Section 21650) of Chapter 9 (secondhand goods of the Business and Professions Code, or any provision contained in Chapter 2 (pawnbroker regulations) (commencing with Section 21200) of Division 8 (pawnbrokers) of the Financial Code, unless the violation demonstrates a pattern of conduct.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

Every application for a license or permit shall be accompanied by a nonrefundable application fee as established by resolution of the city council. This application fee shall be in addition to any other business license fee or permit fee imposed by resolution of the city council or that imposed by the state Department of Justice.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

It is unlawful for a person to conduct or operate a business mentioned in this chapter except in the location specified in the license or permit. A business for which a license or permit must be obtained and maintained pursuant to this chapter may only be established and conducted at a location for which such use is authorized under the comprehensive zoning ordinance of the city.

Nothing in this chapter is intended to allow an applicant to operate a business for which a license or permit is required under this chapter in a location, building or structure that does not comply with the requirements of the zoning ordinance, building code or other local, state or federal regulations or laws.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

A. The chief of police shall cause such investigation of the application to be made as the chief deems necessary and shall, within thirty days after the return of the secondhand dealer application from the California Department of Justice, deny or issue the license or permit as applied for or on condition. If the applicant has been convicted of an offense involving stolen property as defined in Business and Professions Code Section 21641, the chief of police shall cause such investigation of the application as the chief deems necessary and shall, within sixty days after the return of the secondhand dealer application from the Department of Justice, deny or issue the license or permit as applied for on condition. The chief of police may extend the period of investigation for an additional forty-five days upon giving the applicant written notice. Failure of the chief of police to act within the specified time period shall not result in, and shall not entitle the applicant to, issuance of the license or permit.

The duties and responsibilities imposed by this chapter upon the chief of police may be assigned or delegated by the chief to such employees or representatives of the police department as the chief deems necessary and appropriate.

B. The chief of police may deny a license or permit regulated by this chapter on the grounds that the applicant has done one of the following:

1. Has been convicted of a felony offense involving stolen property;

2. Has been convicted of a misdemeanor involving stolen property within ten years from the date of the permit application provided that no person shall be denied a secondhand dealer or pawnbrokers license solely on the ground that he or she violated any provision contained in Article IV (commencing with Section 21625) or Article V (commencing with Section 21650) of Division 8 of the Business and Professions Code, or any provision contained in Chapter 2 (commencing with Section 21200) of Division 8 of the Financial Code, unless the violation demonstrates a pattern of conduct;

3. Has been convicted of engaging in unlawful, fraudulent, unfair or deceptive business practices within ten years from the date of application;

4. Has been convicted of: (a) any felony within ten years from the date of application; or (b) any misdemeanor involving moral turpitude within five years from the date of application, which is substantially related to the qualifications, functions or duties of being a pawnbroker or secondhand dealer;

5. Has violated any law or regulation of the United States, or any state, county, county and city, or city with respect to being a pawnbroker or secondhand dealer within ten years from the date of application; or

6. Has made any material misrepresentation, misstatement or concealment on the permit application, or has failed or refused to provide information requested by the chief of police during the investigation.

C. A license or permit shall not be denied, suspended or revoked on the grounds of a lack of good moral character or any similar ground relating to an applicant's character, reputation, personality or habits.

D. For purposes of this section, "convicted" means a plea or verdict of guilty or a conviction following a plea of nolo contendere.

E. The computation of time begins with the date of conviction, release from confinement, formal release from probation period or formal release from parole, whichever is the latest date.

F. An offense involving stolen property means a conviction for an attempt to receive stolen property or any other offense involving stolen property as referenced in Business and Professions Code Section 21641.

G. In addition to the grounds specified above, the chief of police may also deny the permit if the chief reasonably determines that the location of the business in the application will violate any law or lawful regulation of the city, the state, the United States or any agency thereof. The chief of police may also deny a license or permit if the chief of police shall reasonably determine that the conduct of such business or activity by the applicant at the location for which application is made will violate any law or lawful regulation of the city, the state, the United States or any agency thereof, or is likely to constitute a public nuisance, or by reason of the nature of the activity or subject of the business or the proposed location, can reasonably be expected to be substantially detrimental to the health or safety of the public.

H. Upon issuance of any license or permit, the chief of police may limit the permit by any condition reasonably necessary to achieve the intent and purpose of this chapter. Additionally, each license or permit issued or renewed pursuant to this chapter shall be deemed subject to the following conditions, regardless of whether said conditions appear in print on the license or permit issued by the chief of police:

1. The business shall be carried on only in the building or buildings designated on the license;

2. The license or a copy thereof, certified by the chief of police, shall be displayed on the premises where it easily can be seen by members of the public;

3. The licensee or permittee shall not engage in the business of secondhand dealer as defined in Section 21626 of the Business and Professions Code with any minor;

4. The licensee or permittee shall not engage in any activity which the licensee knows or reasonably should know to be a violation of this article or in violation of Article IV, Chapter 9, Division 8 of the Business and Professions Code; and

5. The licensee or permittee shall not be convicted of an attempt to receive stolen property or any other offense involving stolen property. For purposes of this paragraph, "convicted" means a plea of or verdict of guilty or a conviction following a plea of nolo contendere. Any action which the chief of police is permitted to take following the establishment of a conviction may be taken when the time for appeal has lapsed, the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under the provisions of Penal Code Section 1203.4.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

Any applicant aggrieved by the decision of the chief of police relating to the issuance or denial of a license or permit may, within ten days of the written notice of the decision of the chief of police, appeal such decision to the city manager by the filing of a notice of appeal with the city clerk. If such appeal is not taken within ten days, the decision of the chief of police shall be final. For purposes of this section, the ten days shall commence to run from the date specified on the written notice of denial issued by the chief of police and not from the date the notice is actually received by the applicant.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

Upon referral or appeal to the city manager, the decision of the chief of police shall be scheduled for an evidentiary hearing.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

A copy of the notice of hearing shall be mailed to the applicant. The city manager may give such additional notice of hearing as the city manager deems appropriate in the particular case.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

At the date set for hearing, the city manager shall hear all competent testimony relating to the granting of the permit and may continue the hearing to a fixed date.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

The city manager may grant the license or permit subject to such conditions as deemed reasonable under the circumstances or may deny the issuance of the license of permit if the city manager finds the existence of any of the reasons specified in Section 4.42.070 of this chapter upon which a license or permit may be denied. The decision of the city manager may be appealed to the city council in accordance with Chapter 1.32.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

A. Except as provided for in subsection B of this section, the license or permit shall be subject to forfeiture or suspension by the chief of police, and an application for renewal may be denied if the license or permit holder:

1. Violates any of the conditions imposed on the license or permit; or

2. The business is deemed to be a public nuisance, the location violates any law or lawful regulation of the city, the state, the United States or any agency thereof, or the nature of the activity or subject of the business is substantially detrimental to the health and safety of the public.

B. Notwithstanding subsection A of this section, no person shall be denied a secondhand dealer license or permit solely on the ground that he or she violated any provision contained in Article IV (tangible property) (commencing with Section 21625) or Article V (resale of goods) (commencing with Section 21650) of Chapter 9 (secondhand goods), Division 8 (special business regulations) of the Business and Professions Code, or any provision contained in Chapter 2 (pawnbroker regulations) (commencing with Section 21200) of Division 8 (pawnbrokers) of the Financial Code, unless the violation demonstrates a pattern of conduct.

C. No license or permit shall be revoked or suspended by virtue of this section until a hearing has been held by the chief of police. Written notice of the time and place of such hearing shall be served upon the person to whom the license or permit was granted at least ten days prior to the date set for such hearing. Such notice shall contain a brief statement of the grounds to be relied upon for revoking or suspending such permit. Notice may be given either by personal delivery to the person to be notified or by depositing the notice in the United States mail in a sealed envelope, first class and return receipt, addressed to such person to be notified at the address as it appears on the permit.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

Any licensee or permittee aggrieved by the decision of the chief of police in suspending or revoking a license or permit may, within ten days after such decision is communicated to the permittee in writing, appeal to the city manager by filing a written notice thereof with the city clerk. During the pendency of the appeal to the city manager the license or permit shall remain in effect. If such an appeal is not taken within ten days, the decision of the chief of police shall be final. If an appeal is filed in a timely manner, the city manager shall thereupon hold a hearing on the appeal and may suspend or revoke the license or permit if it finds any of the grounds specified in Section 4.42.070 of this chapter, and the city manager's decision thereon shall be final forthwith.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

Judicial review may be had by filing a petition for writ of mandate in accordance with the provisions of Sections 1094.5 and 1094.6 of the Code of Civil Procedure.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

Nothing in this chapter shall be deemed to exempt any person from complying with applicable provisions of any other laws.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

No pawnbroker, secondhand dealer or employee of a pawnbroker or secondhand dealer shall transact business except upon the premises indicated on his or her license or permit.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

The chief of police may promulgate regulations governing hours of operation of pawnbrokers and secondhand dealers. At least ten days prior to implementation, the chief of police shall provide written notice of such regulations to all licensed or permitted pawnbrokers and secondhand dealers.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

No pawnbroker, secondhand dealer or person in the employ of such dealer shall receive or purchase any property from or make any loan to anyone under eighteen years of age.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

A. Consistent with the requirements of Business and Professions Code 21628 (report required; time), all pawnbrokers who receive in pawn, trade, purchase or on consignment, or any secondhand dealer or employee of either shall, at the time of receiving, purchasing, taking in trade or receiving on consignment any article, place the description of the article upon a form provided by the state Department of Justice. The pawnbroker, secondhand dealer or their employee shall record each transaction that is made and report daily the information set forth in Business and Professions Code 21628. Each form shall be consecutively numbered. All information shall be legible and in English.

B. Such forms shall be retained for a period of three years. Copies of all loans and purchases made by any pawnbroker or secondhand dealer shall be retained for a period of three years.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

Any pawnbroker or secondhand dealer receiving any article or merchandise in pawn, by purchase, taking in trade or on consignment shall affix to the article a tag which shall contain a number that shall correspond to the transaction number on the reporting form.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

Every pawnbroker and secondhand dealer shall deliver to the chief of police every business day all forms which were used by him or her on the preceding business day. All forms shall be submitted in compliance with Business and Professions Code Section 21628 (report required; time) and the California Pawn and Secondhand Dealer System as defined in Business and Professions Code Section 21627.5. (CAPSS defined)

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)

No pawnbroker or secondhand dealer shall employ anyone under the age of eighteen to make purchases or loans, or accept property in trade or on consignment.

No pawnbroker or secondhand dealer shall employ anyone unless they have been issued a permit by the chief of police.

(Ord. 1641 § 1, 2001; Ord. 1878 § 4, 2020)