Chapter 6.52

PAWNBROKERS AND SECONDHAND DEALERS*

Sections:

*Editor’s note— Ord. 21866 is effective July 1, 1985.

State law references— For statutory provisions on pawnbrokers, see Fin. Code §§ 21000 - 21209; for provisions and secondhand goods, see Bus. and Prof. Code §§ 21500 - 21639.

• 6.52.030 Permit application - Information required.

• 6.52.040 Pawnbrokers - Secondhand dealer's permit - Investigation.

• 6.52.050 Number of pawnbrokers' permits limited.

• 6.52.060 Pawnbrokers - Secondhand dealer's permit - Nontransferable.

• 6.52.070 Place of business - Location not transferable.

• 6.52.080 Recordkeeping of all transactions - Permanent record required.

• 6.52.090 Recordkeeping of all transactions - Form cards.

• 6.52.100 Delivery of form cards to chief of police.

• 6.52.110 Inspection of records.

• 6.52.120 Goods to be held for thirty days.

• 6.52.130 Proof of ownership declaration.

• 6.52.140 Receiving goods from certain persons prohibited.

• 6.52.150 Identification defined for Sections pertaining to pawnbrokers and secondhand dealers.

• 6.52.160 Fingerprinting required.

• 6.52.170 Grounds for denial of permit - Denial notification.

• 6.52.180 Permit - Grounds for suspension or revocation.

• 6.52.190 Compliance with regulations required.

• 6.52.200 Posting of permits and signs.

For the purpose of this Chapter 6.52, certain words and phrases shall be construed as set forth in this section, unless it is apparent from the context that a different meaning is intended.

• A. "Pawnbroker" means every person who keeps a place of business where personal

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property is received, and for which money is advanced, with the right or privilege granted to the person to whom said money is advanced to reclaim such property upon the repayment of said money, together with all legal charges incident thereto. This chapter does not regulate banks, savings and loan institutions, credit unions or other banking organizations regulated by state or federal law.

• B. "Secondhand dealer" means every person who engages in the business of buying, selling or exchanging, whether as a separate business or in connection with other business, any secondhand property with a serial number, personalized initial or inscription, or which at the time of acquisition bears evidence of having had a serial number, or personalized initials or inscriptions, jewelry, or sterling silver utensils, excepting however, business machine dealers, secondhand automobile dealers, automobile wrecking establishments, flea markets, garage sales and giftexchange establishments whose business consists exclusively of the exchanging of new and unused personal property for some other type of new and unused personal property with or without payment of a reasonable fee for the exchange services rendered.

(Prior code §§ 6707.1 - 6704.4; Ord. 21866.)

• A. No person shall engage in or carry on the business of a pawnbroker or secondhand dealer except in compliance with provisions of this chapter and a valid permit issued by the city pursuant to the provisions of this chapter. Said permit shall be for a period of one year.

• B. No person shall engage in or carry on the business of a pawnbroker, secondhand jewelry dealer, or secondhand dealer unless he has a valid business license issued by the City of San

José pursuant to the provisions of this chapter, and for which the license fee set forth in the schedule of fees established by resolution of council shall have been paid.

(Prior code § 6707.5; Ords. 21285, 21866.)

Before approving or renewing any permit to engage in or carry on any business of a pawnbroker or secondhand dealer is granted, the applicant desiring such a permit shall file a completed written application with the city treasurer's office on a form furnished by city.

(Prior code § 6707.6; Ord. 21866.)

• A. Upon receiving an application for a permit to engage in business as a pawnbroker or secondhand dealer, the city treasurer shall refer the application to the chief of police for investigation.

• B. The chief of police shall conduct a complete investigation of the applicant and information contained in the application. If any grounds for denial of permit as set forth in San José Municipal Code Section 6.52.170 exists, no permit shall be issued.

(Prior code § 6707.6a; Ord. 21866.)

Not more than six permits to engage in business as a pawnbroker shall be in effect in the city at any one time. No permit shall be issued while six valid and subsisting pawnbroker's permits are in effect in the city and any pawnbroker's permit issued in excess of six shall be invalid. No person shall hold more than two valid and subsisting pawnbroker's permits in the city at any one time. (Prior code § 6707.24; Ords. 21866, 29154.)

Any permit issued, together with the privileges conferred thereby, to a person to engage in business

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as a pawnbroker or a secondhand dealer, shall be nontransferable, and any attempt to transfer said permit to any other person, business, corporation, partnership or organization shall be void and of no effect.

(Prior code § 6707.25; Ord. 21866.)

No permit issued authorizing a person to engage in business as a pawnbroker or secondhand dealer shall be deemed to authorize the conduct of said business at any location other than the specific location set forth on the permit and which therefore has been approved by the chief of police. A permittee may relocate his business alter receiving prior approval from the chief of police. Such location must be in accord with Title 20 zoning requirements of the City of San José. No pawnbroker's or secondhand dealer's permit will be renewed for a location other than that for which the previous permit was issued without prior notification and approval of the chief of police.

(Prior code 6707.26; Ord. 21866.)

Every person managing, maintaining or conducting the business of pawnbroker or secondhand dealer in the city shall keep at the place of business:

• A. A permanent, bound book containing a record in which a description of such article received or delivered in such transaction sufficient to identify the same, including all particular or prominent marks or identification that may be found on such property. Said record shall be legibly printed in the English language, in ink, at the time of every purchase, exchange, pledge, pawn or other transfer or possession of any article, or loan thereon, and shall contain the name, age, sex, residence and accurate description of the person from whom received, the amount

of money paid or received in such transaction, and the date and hour of the transaction; or

• B. A hard copy computer printout containing the same information as required in subsection A, above, may be substituted for the permanent bound book. The printout shall be preserved in chronological order by date or transaction number.

• C. Such records shall be maintained for a period of not less than three (3) years.

• (Prior code § 6707.7; Ord. 21866.)

In addition to the keeping of a permanent record, every person engaged in the pawnbroker or secondhand dealer business shall be required, at the time of taking or receiving any article, to place the description of the article pledged, received or taken in the appropriate spaces provided on the blank pawnbroker/secondhand dealer report. State licensed secondhand dealers shall use the forms approved by the state of California, purchased by the pawnbroker or secondhand dealer at cost from the state. City-licensed secondhand dealers shall use the forms approved by the city and available at cost. The description of the articles shall be complete and reasonably accurate so as to reasonably aid the police in identifying stolen property in cases of theft.

The permittee shall fill in all applicable blank spaces as appear on the form. A separate blank form shall be provided and used for each such article pledged, bought, received or taken in trade. On said blank form there shall be legibly printed the pledger's name and address.

(Prior code § 6707.8; Ord. 21866.)

The permittee shall fill in the type of card required for each article pledged, pawned, bought or received. On every business day, on or before the hour of five o'clock p.m., all of such cards describ-

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§ 6.52.150

ing the goods, articles or things pledged, pawned, bought or received during the preceding day, and containing the description and signature of the person so pledging or pawning, or giving the same, shall be delivered to the chief of police or his duly authorized designee. The mailing of the report forms does not satisfy the requirements of this section. (Prior code § 6707.10; Ord. 21866.)

During normal business hours, the records shall be open to inspection by the chief of police of the city or his designees.

(Prior code § 6707.15; Ord. 21866.)

All articles purchased, received, exchanged, pledged, pawned or otherwise taken into possession by any person operating any pawnbroker business or secondhand dealer business shall be segregated and made available for inspection by the police department in the place of business of the permittee for a period of five days immediately following receipt of the same, and shall be held for a period of thirty days after receipt thereof before being sold, exchanged or removed from the place of business where it was received, or delivered to any person or otherwise disposed of, except that such article may be delivered or returned to the true owner or to his authorized agent at any time, provided a hold has not been placed on such article by the police. Except however, for pawnbrokers, articles listed in Section 21201 of the Financial Code shall be exempt from this section.

(Prior code § 6707.16; Ord. 21866.)

• A. No permittee, manager, agent or employee shall take or receive any goods, articles or things from any person without first determining that the person presenting the item for sale, purchase, pledge, exchange or pawn is the true, legal owner of said property. The permittee, manager, agent, or employee shall require the person to present adequate evidence of author-

ity to sell. Bills of sale, receipts, bills of lading, and invoices are considered adequate evidence of authority to sell for the purposes of this section, providing they identify the owner and describe the item presented. A proof of ownership declaration may be substituted for a receipt if compliance with regulations set forth in Section 6.52.150, below, is met. The proof of ownership declaration shall be included on the state-approved form. A verbal response from the person asserting ownership of the item is not considered adequate proof of ownership.

• B. No permittee, manager, agent or employee shall take or receive any goods, articles or things from any person who refuses to execute a proof of ownership declaration in cases in which the person does not present adequate evidence of authority to sell as required in subsection A, above.

• (Ord. 21866.)

No permittee, manager, agent or employee, shall take or receive any goods, articles or things from any person who is in an intoxicated condition or a person under eighteen (18) years of age. (Prior code § 6707.17; 6.52.130; Ord. 21866.)

No pawnbroker or secondhand dealer shall receive any goods or take any goods in pledge unless identification has been determined after examination of at least one of the means of identification listed below, and unless the identification presented does, in fact, substantiate the identity of the person presenting it.

1. A valid California driver's license which contains a photograph;

2. A valid California identification card issued by the department of motor vehicles which contains a photograph;

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3. Valid identification issued by a federal, state or local government or agency which contains a photograph and/or complete physical description of the issuee. Said description shall reasonably substantiate the identity of the customer in that the evidence of identity and the physical description of the customer agree; The evidence of identification must contain a complete and current address of the issuee. Identification which contains a post office box is insufficient for purposes of these regulations;

4. The chief of police shall issue valid identification which shall contain a photograph and complete physical description for any individual who does not have the above-referenced identification.

The pawnshop/secondhand dealer permittee, employee, or agent who serves a customer shall ensure that the identification proffered by the customer reasonably substantiates the identity of the customer in that the evidence of identity and the physical description of the customer agree. (Ord. 21866.)

Each pawnbroker and secondhand dealer shall obtain a plain fingerprint impression of the right index finger of the person presenting the property for pawn, sale, trade, exchange or consignment, or, if the person's right index finger is missing, another of the fingers, and shall designate which finger was used. The fingerprint impression shall be placed on the back of the white copy of the pawnbroker/ secondhand dealer report. (Ord. 21866.)

Any pawnbroker's or secondhand dealer's permit application under the provisions of this chapter may be denied by the chief of police or his designee for any of the following reasons:

• A. Fraud, misrepresentation or false statement contained in the application for the permit;

• B. Fraud, misrepresentation or false statement made in the course of carrying on the business regulated by this chapter;

• C. The applicant has been convicted of a misdemeanor or felony within the past three years if the misdemeanor or felony is substantially related to the qualifications, functions or duties of the pawnbroker or secondhand dealer;

• D. Any violation of the provisions of this chapter or of any other provisions of this Code within the past five years relating to any of the business activities conducted or carried out by the pawnbroker or secondhand dealer;

• E. Any violation of the zoning requirements of Title 20 of the San José Municipal Code.

In all cases where a permit is denied, the chief of police shall notify the applicant in writing of the grounds for denial. Said applicant shall have the right to appeal in accordance with Sections 6.02.140 through 6.02.190 of the San José Municipal Code. (Ord. 21866.)

Any secondhand dealer or pawnbroker permit issued under the provisions of this chapter may be suspended or revoked for any of the following reasons:

• A. Fraud, misrepresentation or false statement contained in the application for the permit;

• B. Fraud, misrepresentation or false statement made in the course of carrying on the business regulated by this chapter;

• C. Any violation of any of the provisions of this chapter or of any other provision of this Code relating to any of the business activities conducted or carried on by the permittee;

• D. Any violation of any provision of federal, state or local laws if substantially related;

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• E. Conviction of a felony by a holder of such permit during the period for which the permit was issued if the felony is substantially related to the qualifications, functions or duties of the pawnbroker or secondhand dealer;

• F. Anything which would authorize denial of a new permit if one were applied for;

• G. Falsification of pawnbroker or secondhand dealer permit or any other document required pursuant to this chapter.

Any person whose permit has been suspended or revoked shall have the right to an administrative appeal before the chief of police or his designee. Any unfavorable decision by the chief of police may be appealed in writing, stating the grounds therefor, within ten days of said decision, to the code enforcement commission. Said commission shall hold a hearing thereon within a reasonable time and the decision of said commission shall be final. (Ord. 21866.)

address. To knowingly or intentionally provide false information is a misdemeanor."

(Ord. 21866.)