ORD 09-04ORDINANCE 110.: 09-04
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
AN ORDINANCE AMENDING THE CITY CODE OF THE CITY OF OTSEGO TO
PROVIDE FOR BUSINESS LICENSING AND ZONING REGULATIONS SPECIFIC TO
PAWN SHOP AND SECOND HAND GOODS BUSINESSES.
THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN:
Section 1. Section 2-4-2.A of the City Code (Fee Schedule — Licenses) is hereby
amended to include the following provisions:
6. Pawnbrokers, precious metals dealers and/or
Second hand goods dealers:
a. Annual License:
b. Investigation Fee:
b. Reportable Transaction Fee:
C. Daily Reporting Penalty:
$200.00
$200.00 + costs Incurred
$50.00/transaction
$50.00/day
Section 2. Chapter 7 of the Otsego City Code (Businesses and Licenses) is hereby
amended to include the following Section:
SECTION 7
PAWN AND SECOND HAND GOODS BUSINESSES
Section:
7-12-1
Purpose
7-12-2
Definitions
7-12-3
Statutory Authority
7-12-4
License Required
7-12-5
Exceptions to License Requirement
7-12-6
Persons Ineligible for License
7-12-7
Business at Only One Place
7-12-8
License Fees
7-12-9
License Application
7-12-10
Bond Required
7-12-11
Records Required
7-12-12
Daily Reports to Sheriffs Department
7-12-13
Receipt Required
7-12-14
Redemption Period
7-12-14
Holding Period
7-12-15
Law Enforcement Order to Hold Property
7-12-16
Inspection of Items
7-12-17
Label Required
7-12-18
Prohibited Acts
7-12-19
Hours of Operation
7-12-20
Required Notices
7-12-21
Denial, Suspension or Revocation
7-12-22
Separability
7-12-1: PURPOSE:
1. The City Council finds that use of services provided by pawnbrokers provides an
opportunity for the commission of crimes and their concealment because pawn
businesses have the ability to receive and transfer property stolen by others easily and
quickly. The City Council also finds that consumer protection regulation is warranted in
transactions involving pawnbrokers. The C ity Council further finds that the pawn industry
has outgrown the City's current ability to effectively or efficiently identify crim inal activity
related to pawn shops.
2. The purpose of this chapter is to prevent pawn businesses from being used as facilities
for the commission of crimes, and to assure that such businesses corn ply with basic
consumer protection standards, there by protecting the public health, s afety, and general
welfare of the citizens of the City. This chapter also establishes the required use of the
automated pawn system (APS) to allow the Sheriffs Department better regulate current
and future pawn businesses, decrease and stabil ize costs associated with the regulation
of the pawn industry, and increase identification of crim inal activities in the pawn industry
through the timely collection and sharing of pawn transaction information,.
7-12-2: DEFINITIONS: When used in this Section, the following words shall mean:
Billable transaction. Every reportable transaction conducted by a pawnbroker except
renewals, redemptions or extensions of existing pawns on items previously reported and
continuously in the licensee's possession is a billable transaction.
Licensing Authority. The City of Otsego.
Licensee. The person, partnership, association or corporation to who a license is issued under
this Section, including any agents or employees of the person, partnership, association or
corporation.
Minor. Any person under 18 years of age.
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Pawnbroker. Any natural person, partnership or corporation, either as principal, or agent or
employee thereof, who loans money on deposit or pledge of personal property, or other
valuable thing, or who deals in the pur chasing of personal property, or other valuable thing on
condition of selling the same back again at a stipulated price, or who loans money secured by
chattel mortgage on personal property, taking possession of the property or any part thereof so
mortgaged. To the extent that a pawnbroker s business includes buying personal property
previously used, rented or leased, or selling it on consignment, the provisions of this chapter
shall be applicable.
Pawnshop. The location at which or premi ses in which a pawnbroker reg ularly conducts
business.
Person. An individual; a partnership, including a limited partnership; a corporation including a
foreign, domestic or nonprofit corporation; a tru st; a political subdivision of the state; or any
other business organization.
Precious metal dealer. Any person engaged in the business of buying coi ns or second hand
items containing precious metal, including but not limited to, jewelry, watches, eat! ng utensils,
candlesticks, and religious and decorative objects.
Reportable transaction. Every transaction conducted by a pawnbroker in which merchandise
is received through a pawn, purchase, consignment or trade, or in which a pawn is renewed,
extended or redeemed, or for which a unique transaction num ber or identifier is generated by
their point-of-sale software, is reportable except:
A. The bulk purchase or consignment of new or used merchandise from a merchant,
manufacturer or wholesaler having an established permanent place of business, and the
retail sale of said merchandise, provided the pawnbroker must maintain a record of such
purchase or consignment which describes each item, and must mark each item in a
manner which relates it to that transaction record.
B. Retail and wholesale sales of merchandise originally received by pawn or purchase, and
for which all applicable hold and/or redemption periods have expired.
Second hand dealer. A person, partnership, firm or corporation whose regular business
includes selling or receiving tangible personal property (excluding motor vehicles) previously
used, rented, owned, or leased. The term second hand dealer shall ! nclude pawnbroker and
antique shops.
Sheriffs Department. The Wright County Sheriffs Department.
7-12-3: STAUTORY AUTHORITY: This Section is adopted pursuant to the
authorization provided for by Minnesota Statues § 325J.02.
7-12-4: LICENSE REQUIRED:
A. No person shall engage in the business of pawnbroker at any location wit hout a
pawnbroker license for that location. No pawnbroker license may be transferred to a
different location or a different person; Any change, directly or ben eficially, in the
ownership of any licensed pawnshop shall require the application for a new license and
the new owner must satisfy all current eligibility requirements. Issuance of a license
under this Section shall not relieve the licensee from obtaining any other licenses
required to conduct business at the same or any other location.
B. All licenses issued under this Section shall be effective from the date of approval by the
City Council and shall expire on December 31 of each yea r.
C. A license issued under this Section shall be posted in a conspicuous place within the
licensed premises.
D. A licensee under this S ection shall be responsibl a for the conduct of the business being
operated and shall maintain conditions of order. The conduct of agents or em ployees of
a licensee engaged in the performance of duti es for the licensee shall be deemed the
conduct of the licensee.
E. It shall be unlawful for any person who owns or contro Is real property to knowingly
permit it to be used for pawn brokering without a license required by this Section.
7-12-5: EXCEPTIONS TO LICENSE REQUIREMENT:
A. The following transactions shall not require a precious metal dealers license:
1. Transactions at occasional "garage" or "yard" sales, or estate sales or auctions
held at the decedent's residence, except that precious metal dealers must
comply with the requirements of M innesota Statutes § 325F.73 to 325F.744 for
these transactions.
2. Transactions regulated by Minnesota Statutes § 80A.
3. Transactions regulated by the Federal Com modity Futures Commission Act.
4. Transactions involving the purchase of precious metal grindings, filings, slag,
sweeps, scraps or dust from an industrial manufacturer, dental lab, dentist or
agent thereof.
5. Transactions involving the purchase of photographic film such as lithographic
and x-ray film or silver residue or flake covered in lithographic and x-ray film
processing.
6. Transactions involving coins or bullion in ingots.
7. Transactions in which the second hand item containing precious metal is
exchanged for a new item containing precious metal and the value of the new
item exceeds the value of the second h and item.
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8. Transactions between precious m etal dealers if both dealers are licensed under
Minnesota Statutes § 325F.733, or if the seller's business is located outside of
the state and the item is shipped from outside the state to a dealer licensed
under Minnesota Statutes § 325F.733.
9. Resale transactions by an antique dealer of second hand items containing
precious metal if the items are resold at retail in an unaltered condition except for
repair, and the antique dealer paid less than $2,500.00 for all second hand item s
containing precious metals purchased by said antique dealer within any 12
consecutive month period.
B. The following transactions shall not require a second hand dealer's li cense:
1. The sale of second hand good s where all of the following are present:
a. The sale is held on property occupied as a residential dwelling by the
seller or owned, rented or leased by a charitable or politic al organization.
b. The items offered for sale are owned by the occupant.
C. That no sale exceeds a period of 72 consecutive hours.
d. That no more than two sales are held in any 12 consecutive m onth period
at any residential dwelling.
e. That none of the items offered for sale have been purchased for resale or
received on consignment for purpose of resale.
2. The sale of goods at an auction held by a li censed auctioneer.
3. The sale of recyclable material including, but not limited to, motor oil, aluminum,
iron, glass, plastic and paper.
4. Private occasional sales of second hand goods.
5. The sale of used motor vehicl es.
6. The sale of any item for less than $15.00 in cash, merchandise or services for
merchandise received provided:
a. The total amount paid any si ngle person for resold merchandise does not
exceed $45.00 within any 60 -day period; or
b. Merchandise has not been received for resale fro m any single person
more than three times within any 60 -day period regardless of the total
value of said transactions.
7. The business of buying or selli ng only those second hand goods taken as part of
full payment for new goods of greater value and where such business is
incidental to and not the prim ary business of a person.
8. Goods sold at an exhibition...
7-12-6: PERSONS INELIGIBLE FOR A LICENSE: No license under this chapter will be
issued to an applicant who is a natural person, a partnership if such applicant has any general
partner or managing partner, a corporation or other organization if such applicant has any
manager, proprietor or agent in charge of the business to be licensed, if t he applicant:
A. Is a minor at the time that the application is filed;
B. Has been convicted of any crime directly related to the occupation licensed as
prescribed by Minnesota Statutes § 364.03, Subd. 2, and has not shown competent
evidence of sufficient rehabilitation and present fitness to perform the duties of a
licensee under this chapter as prescribed by M innesota Statutes, § 364.03, Subd. 3; or
7-12-7: BUSINESS AT ONLY ONE PLACE:
A. A license under this Section authorizes the licensee to carry on its business only at the
permanent place of business designated in the 1 !cense.
B. Upon written request, the Sheriffs Department may approve an offsite locked and
secured storage facility provided that:
The licensee shall permit inspection of the facility in accordance with Section 7-
12-16 of the City Code.
2. All provisions of this Section regarding record keeping and reporting apply to the
facility and its contents.
C. Property shall be stored in compliance with all provisions of the City Code.
D. The licensee must either own the building in which the business is conducted, and any
approved off-site storage facility, or have a lease on the business prem ise that extends
for more than six (6) months.
E. If a license application is approved for a location where a building i s under construction
or otherwise not ready for occupancy, the license shall not be delivered to the licensee
until a certificate of occupancy has been issued for the licensed prem ises.
7-12-8: LICENSE FEES:
A. The annual fees for licenses I ssued under this Section shal I be as set forth in Section 2-
4-2.A.6 of the City Code.
B. The billable transaction license fee shall reflect the cost of processing transactions and
other related regulatory expenses as set forth in Secti on 2-3-2.A.6 of the City Code and
shall be billed monthly and are due and payable within thirty (30) days; failure to pay the
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billable transaction license fees within thirty 30 days shall be a violation of this Section.
7-12-9: LICENSE APPLICATION:
A. An application form provided by the City Clerk must be completed by every applicant for
a new license or for renewal of an existing license. Every new applicant must provide all
the following information:
1. If the applicant is a natural person:
a. The name, place and date of birth, street resident address, and phone
number of applicant.
b. Whether the applicant is a citizen of the United States or resident alien.
C. Whether the applicant has ever used o r has been known by a nam a other
than the applicant's name, and if so, the name or names used and
information concerning dates and places used.
d. The name of the business if it is to be conducted under a designation,
name, or style other than the name of the applicant and a certified copy of
the certificate as required by Minnesota Statutes § 333.01.
e. The street address at which the applicant has lived during the preceding
five (5) years.
The type, name and location of every business or occupation in w hich the
applicant has been engaged during the preceding five (5) years and the
name(s) and address(es) of the applicant's employer(s) and partner(s), if
any, for the preceding five (5) years.
g. Whether the applicant has ever b een convicted of a felony, crime, or
violation of any ordinance other than a traffic ordinance. If so, the
applicant must furnish information as to the time, place, and offense of all
such convictions.
h. If the applicant does not manage the business, the nam a of the
manager(s) or other person(s) in charge of the business and all
information concerning each of them required in Section 7-12-9.A.1.a.
through g. of this Section.
2. If the applicant is a partnership:
a. The name(s) and address(es) of all general and limited partners and all
information concerning each general partner required in subdivision (1) of
this section.
b. The name(s) of the managing partne r(s) and the interest of each partner
in the licensed business.
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C. A true copy of the partnership agreement shall be submitted with the
application. If the partnership is required to file a certifi cate as to a trade
name pursuant to Minnesota Statutes § 333.01, a certified copy of such
certificate must be attached to the application.
3. If the applicant is a corporation or other organization:
a. The name of the corporation or business form, and if incorporated, the
state of incorporation.
b. A true copy of the Certificate of Incorporation, Articles of Incorporation or
Association Agreement and By-laws shall be attached to the application.
If the applicant is a foreign corporation, a Certificate of Authority as
required by Minnesota Statutes § 303.06 must be attached.
C. The name of the manager(s) or other person(s) in charge of the business
and all information concerning each manager, proprietor, or agent
required in a. through g. of subdivision 1 of this section.
4. For all applicants:
a. Whether the applicant holds a current pawnbro ker, precious metal dealer
or secondhand goods dealer license from any other governmental unit
and whether the applicant is licensed under Minnesota Statutes §
471.924.
b. Whether the applicant has previously been denied, or h ad revoked or
suspended, a pawnbroker precious metal dealer, or secondhand dealer
license from any other governmental unit.
C. The location of the business premises.
d. The legal description of the prem ises to be licensed.
e. A true and complete copy of an executed lease for the premises to be
licensed if the applicant does not own the property.
f. Certification that all real estate and personal property taxes that are due
and payable for the premises to be licensed have been paid.
g. Whenever the application is for a premises either planned or under
construction or undergoing substantial alt enation, the application shall be
accompanied by a set of preliminary plans showing the design of the
proposed premises to be licensed.
h. A description of the proposed hours of operation and on-site
management.
A site plan of the premises to be licensed showing the location of off-
street parking facilities compliant with the requirements of the Z oning
Ordinance.
An executed data practices advisory and consent form authorizing the
release of criminal history information.
k. Such other information as the licensing authority may require.
B. All applications for a license under this Section must be signed and sworn to under o ath
or affirmation by the applicant. If the application is that of a natural person, it must be
signed and sworn to by such person; if that of a corporation, by an officer thereof; if that
of a partnership, by one of the general partners; and if that of an unincorporated
association, by the manager or managing officer thereof. Any falsification on a license
application shall result in the denial of a license.
C. All applications shall be referred to the Sheriffs Department for verification and
investigation of the facts set forth in the application. Within sixty (60) days after receipt
of an application, the Sheriffs Department shall make a written report and
recommendation to the City Council as to the issuance or non -issuance of the license.
The City Council may order and conduct such additional investigation as it deems
necessary. If additional investigation is necessary, the applicant shall pay the Ci ty the
for all costs incurred in the course of the additional i nvestigation.
D. The City Council shall conduct a public hearing on the license application within thirty
(30) days following receipt of the Sheriffs Department's report and recommendation
regarding the application:
The City Clerk shall publish notice at least ten (10) days in advance of the public
hearing in the official City newspaper setting forth the day, time and place of the
hearing; the na me of the applicant; the prem ises where the business is to be
conducted; and the type of license being sought.
2. The public hearing shall also be preceded by ten (1 0) days mailed notice to all
property owners located within five hundred (500) feet of the boundaries of the
property where the business is to be conducted.
3. The applicant shall be present at the public hearing.
4. Opportunity shall be given to any person to be heard for or against the granting
of the license.
5. Approval of a license under this Section shall require a majority vote of the City
Council.
E. An application for renewal of an existing license shall be made prior to the expiration
date of the license in the form required by and processed in accordance with S ections 7-
12-9.A through D of the City Code.
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F. Manager/New Manager:
1. When a licensee designates a manager in charge of a business, or the named
manager(s) in charge of a licensed business changes, the Ii censee must
complete and submit the appropriate application prior to th a effective date of the
change. The new manager shall be subject to the investigation required by this
Section.
2. The designation of a new m anager shall not cause an existing I icense issued
under this Section to become invalid before a decision is rendered, provide that
proper notice and application are made by the licensee.
3. A proposed new manager shall be referred to as the interim manager.
4. In the event that an interim manager is denied, the licensee shall desi gnate
another interim manager and make the required application within fifteen (15)
days of the decision.
5. If a proposed manager is denied, the decision may be appealed to the City
Council by filing a written notice of appea I with the City Clerk within fifteen (15)
days after being notified of the denial.
7-12-10: BOND REQUIRED: Before a license will be issued, every applicant must submit
a five thousand dollar ( $5,000.00) bond on the forms provided by the City Clerk. All bonds must
be conditioned that the principal wi II observe all laws in relation to pawnbrokers, and will
conduct business in conformity thereto, and that the principal will account for and deliver to any
person legally entitled any goods whic h have come into the principal's hand through the
principal's business as a pawnbroker, or in lieu thereof, will pay the reasonable value in money
to the person. The bond shall contain a provision that no bond may be cancel ed except upon
thirty (30) days written notice to the City.
7-12-11: RECORDS REQUIRED: At the time of any reportable transaction other tha n
renewals, extensions or redemptions, every licensee must immediately record in English the
following information by using ink or other indelible medium on forms or in a computerized
record approved by the Sheriffs Department.
A. A complete and accurate description of each item including, but not limited to, any
trademark, identification number, serial number, model number, brand name, or other
identifying mark on such an item.
B. The purchase price, amount of money loaned upon, or pledged therefore.
C. The maturity date of the transaction and the amount due, including monthly and annual
interest rates and all pawn fees and charges.
D. Date, time and place the item of property was received by the licensee, and the unique
alpha and/or numeric transaction identifier that distinguishes it from all other transactions
in the licensee's records.
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E. Full name, current residence address, current residence telephone num ber, date of birth
and accurate description of the person from whom the item of property was received,
including: sex, height, weight, race, color of eyes and color of hair.
F. The identification number and state of issue from any of the following forms of
identification of the seller:
a. Current valid Minnesota driver's license.
b. Current valid Minnesota identification card.
C. Current valid photo identification card issued by another state or province of
Canada.
G. The signature of the person identified in the transaction.
H. Effective sixty (60) days from the date of notification by the Sheriffs Department of
acceptable video standards the licensee must also take a color photograph or color
video recording of:
a. Each customer involved in a billable transaction.
b. Every item pawned or sold that does not ha ve an unique serial or identification
number permanently engraved or affixed. If a photograph is taken, it must be at
least two (2) inches in length by two (2) inches in width and m ust be maintained
in such a manner that the photograph can be readily matched and correlated with
all other records of the transaction to whic h they relate. S uch photographs m ust
be available to the S heriff s Department upon request. The major portion of the
photograph must include an identifiable front facial close-up of the person who
pawned or sold the item. Items photographed must be accurately depicted. The
licensee must inform the person that he or she is being photographed by
displaying a sign of sufficient size in a conspicuous place in the premises. If a
video photograph is taken, the video camera must zoom in on the person
pawning or selling the item so as to include an identifiable close-up of that
person's face. Item s photographed by video must be accurately depicted. Video
photographs must be electronically referenced by time and date so they can be
readily matched and correlated with all other records of the transaction to which
they relate. The licensee must inform the person orally that he or she is being
videotaped and by display ing a sign of sufficient size in a conspicuous place on
the premises. The licensee must keep the exposed videotape for thr ee (3)
months.
Effective sixty (60) days from the date of notification by the Sheriffs Department
licensees must fulfill the color photograph requirements in Section 7-12-11.H of the City
Code by submitting them as digital images, in a format specified by the Licensing
authority, electronically cross-referenced to the reportable transaction they are
associated with. Notwithstanding the digital i mages may be captured from required video
recordings, this provision does not alter or amend the requirements in Section 7-12-11.H
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of the City Code.
For renewals, extensions and redemptions, the licensee shall provide the original
transaction identifier, the date of the curr ent transaction and the type of transaction.
K. The records must at all reasonable ti mes be open to inspecti on by the S heriffs
Department or Department of Licenses and C onsumer Services. Data entries shall be
retained for at least three (3) years from the date of transaction. Entries of required
digital images shall be retained a mi nimum of ninety (90) days.
7-12-12: DAILY REPORTS TO SHERIFF'S DEPARMENT.
A. Effective no later than sixty (60) days after the Sheriffs Department provides licensees
with computerized record standards, licensees must submit every reportable transaction
to the Sheriffs Department daily in the following manner:
Licensees must provide to the Sheriffs Department all information required in
Section 7-12-11 and other required information by transferring it from their
computer to the Automated Pawn system via modem.
2. All required records must be transmitted completely and accurately after the
close of business each day in accordance with standards and procedures
established by the Licensing authority.
3. If a licensee is unable to successfully transfer the required reports by modem, the
licensee must provide the Sheriffs Department printed copies of all reportable
transactions along with the video tape(s) for that date by 12:00 the next business
day.
4. If the problem is determined to be in the licensee's system and is not corrected
by the close of the first busi ness day following the failure, the licensee must
provide the required reports as detailed in Section 7-12-11 and shall be charged
a daily reporting penalty as set forth by Section 2-4-2.A.6 of the City Code, daily,
until the error is corrected, or:
5. If the problem is determined to be outside the licensee's system, the licensee
must provide the required reports in Section 7-12-11 and resubmit all such
transactions via modem when the error is corrected.
6. If a licensee is unable to capture, digitize or transmit the photographs required in
Section 7-12-11.1, the licensee m ust immediately take all required photographs
with a still camera, cross-reference the photographs to the correct transaction,
and make the pictures available to the Sheriffs Department upon request.
7. Regardless of the cause or origin of the technical problem s that prevented the
licensee from uploading their reportable transactions, upon correction of the
problem, the licensee shall upload every reportable transaction from every
business day the problem had existed.
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8. Section 7-12-12.A.1 through 7 notwithstanding, the City Clerk may, upon
presentation of extenuating circum stances, delay the implementation of the daily
reporting penalty.
B. The licensee must display a sign of sufficient size, in a conspicuous place in the
premises, which informs all patrons that all transactions are reported to the Sheriffs
Department daily.
C. Licensees will be charged for each billable transaction reported to the Sheriffs
Department.
7-12-13: RECEIPT REQUIRED: Every licensee must provide a receipt to the party
identified in every reportable transaction and m ust maintain a duplicate of that receipt for three
(3) years. The receipt must include at least the following information:
A. The name, address and telephone num ber of the licensed business.
B. The date and time the item was received by the licensee.
C. Whether the item was pawned or sold or the nature of the transaction.
D. An accurate description of each item received including, but not limited to, any
trademark, identification number, serial number, model number, brand name or other
identifying mark on such an item.
E. The signature or unique identifier of the licensee or employee that conducted the
transaction.
F. The amount advanced or paid.
G. The monthly and annual interest rates, including all pawn fees and charges.
H. The last regular day of business by which the item must be redeemed by the pledger
without risk that the item will be sold, and the amount necessary to redeem the pawned
item on that date.
The full name, current residence address, current residence telephone number and date
of birth of the pledge r or seller.
The identification number and state of issue from any of the following form s of
identification of the seller:
Current valid Minnesota driver's license.
2. Current valid Minnesota identification card.
3. Current valid photo driver's license or identification card issued by another state
or province of Canada.
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K. Description of the pledger or seller including sex, approxim ate height, weight, race, color
of eyes and color of hair.
L. The signature of the pledger or seller.
M. All printed statements as required by Minnesota Statute § 325J.04 subd 2, or any other
applicable statutes.
7-12-13: REDEMPTION PERIOD:
A. Any person pledging, pawning or depositing an item for security must have a minimum
of one hundred twenty (120) days from the date of that transaction to redeem the item
before it may be forfeited and sold.
B. During the one hundred twenty (120) day holding period, items may not be removed
from the licensed location except as provided in Section 7-12-7.13 of the City Code.
C. Licensees are prohibited from redeeming any item to anyone other than the person to
whom the receipt was issued or, to any person identified in a written and notarized
authorization to redeem the properly identified in the receipt, or to a person identified in
writing by the pledger at the tim a of the initial transaction and signed by the pledger, or
with approval of the police I icense inspector. Written authorization for release of pr operty
to persons other than original pledger m ust be maintained along with original transaction
record in accordance with Section 7-12-11 of the City Code.
7-12-14: HOLDING PERIOD: Any item purchased or accepted in trade by a licensee
must not be sold or otherwise transferred for thirty (30) days from the date of the transaction. An
individual may redeem an item seventy-two (72) hours after the item was received on deposit,
excluding Sundays and legal holidays.
7-12-15: LAW ENFORCEMENT ORDER TO HOLD PROPERTY.
A. Whenever a law enforcem ent official from any agency notifi es a licensee not to sell an
item, the item must not be sold or removed from the premises. The investigative hold
shall be confirmed in writing by the originating agency with seventy-two (72) hours and
will remain in effect for fifteen (15) days from the date of initial notification or until the
investigative order is canceled, or until an order to hold/confiscate is issued pursuant to
Section 7-12-15.6 or 7-12-15.0 of the City Code, whichever comes first.
B. Whenever the Sheriff s Department or other law enforcement official, notifies a licensee
not to sell an item, the item must not be sold or removed from the licensed premises until
authorized to be released by the chief or the chiefs des ignee. The order to h old shall
expire ninety (90) days from the date it is placed unless the chi of of police or the chiefs
designee determines the hold is still necessary and notifies the licensee in writing.
C. If an item is identified as stolen or evidence in a criminal case, the Sheriffs Department
or other law enforcement official may:
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Physically confiscate and remove it from the shop, pursuant to written order from
the Sheriff s Department, or
2. Place the item on hold or extend the ho Id as provided in Section 7-12-15.13 of the
City Code and leave it on the premi ses.
3 When an item is confiscated, the person doing so shall provide identifi cation
upon request of the licensee, and shall provide the li censee the name and phone
number of the confiscating agency and investigator and the case number related
to the confiscation.
D. When an order to hold/confiscate is no I onger necessary, the S heriffs Department shall
so notify the licensee.
7-12-16: INSPECTION OF ITEMS: At all times during the terms of the license, the
licensee must allow law enforcement officials to enter the premises where the licensed business
is located, including all off-site storage facilities as authorized in Section 7-12-7 of this Section,
during normal business hours, except in an em ergency for the purpose of inspecting such
premises and inspecting the items, ware and merchandise and records therein to verify
compliance with this chapter and other applicable I aws.
7-12-17: LABEL REQUIRED: Licensee must attach a label to every item at the time it is
pawned, purchased or received in inventory from any reportable transaction. Permanently
recorded on this label must be the number or name that identifies the transaction in the shop's
records, the transaction date, the nam a of the item and the description or the model and serial
number of the item as reported to the police department whichever is applicable and the date
the item is out of pawn or can be sold, if appli cable. Labels shall not be re -used.
7-12-18: PROHIBITED ACTS:
A. No person under the age of eighteen (18) years may pawn or sell or attempt to pawn or
sell goods with any licensee, nor may any licensee receive any goods from a person
under the age of eighteen (18) years.
B. No licensee may receive any goods from a person of un sound mind or an intoxicated
person.
C. No licensee may receive any goods, unless the seller presents identification in the form
of a valid driver's license, a valid State of Minnesota identification card, or current valid
photo driver's license or identification card issued by the state of residency of the person
from whom the item was received.
D. No licensee may receive any item of property that possesses an altered o r obliterated
serial number or operation identification num ber or any item of property that has had its
serial number removed.
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E. No person may pawn, pledge, sell, consign, leave, or deposit any article of property not
their own; nor shall any person pawn, pledge, sell, consign, leave, or deposit the
property of another, whether with permission or without; nor shall any person pawn,
pledge, sell, consign, leave, or deposit any article of property in which another person
has a security interest; with any licensee.
F. No person seeking to pawn, pledge, sell , consign, leave, or deposit any article of
property with any licensee shall give a false or fictitious name, nor give a false date of
birth; nor give a false or out of date address of residence or telephone num ber; nor
present a false or a Itered identification, or the identification of another; to any licensee.
7-12-19: HOURS OF OPERATION: No licensee shall keep the pawnbroker business
open for transaction of business on any day of the week before 8:00 AM or after 9:00 PM.
7-12-20: REQUIRED NOTICES: All licensees shall by adequate signage and separate
written notice inform persons seeking to pawn, pledge, sell, leave or deposit articles of property
with the licensee the forgoing requirements:
A. For the purposes of this Section, "adequate signage" shall mean at least one (1) sign of
not less than four (4) square feet in surface are a, comprised of lettering of not less than
three-quarters of an inch in hei ght, posted in a conspicuous place on the licensed
premises stating the following:
TO PAWN OR SELL PROPERTY:
YOU MUST BE AT LEAST 18 YEARS OF AGE; AND,
YOU MUST BE THE TRUE OWNER OF THE PROPERTY; AND,
YOU MUST PRESENT VALID PHOTO IDENTIFICATION; AND,
VIOLATION OF ANY OF THESE REQUIREMENTS IS A CRIME.
ALL TRANSACTIONS REPORTED DAILY TO LAW ENFORCEMENT
B. For the purposes of this Section, "separate written notice" shall m can either the receipt
as required by Section 7-12-13 of this Section or a printed for incorporating a statement
to the effect that a person pawing, pledging, selling, leaving or depositing the article is at
least eighteen (18) years of age; is the true owner o f the article; that the article is free of
all claims and liens; and that all transactions are reported daily to law enforcement;
which is acknowledged byway of the signature of the p erson pawing, pledging, selling,
leaving or depositing the article.
7-12-21: DENIAL, SUSPENSION OR REVOCATION:
A. Any license under this Section may be denied, suspended or revoked for one or more of
the following reasons:
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The proposed use does not corn ply with any applicable provision of the Zoning
Ordinance.
2. The proposed use does not comply with any health, building, building
maintenance or other provisions of the City Code or State law.
3. The applicant or licensee has failed to com ply with one or more provisions of this
Section.
4. The applicant is not a citizen of the United States or a resident alien, or upon
whom it is impractical or impossible to conduct a background or financial
investigation due to the unavailability of information.
5. Fraud, misrepresentation or bribery in securing or renewing a license.
6. Fraud, misrepresentation or false statements made in the application and
investigation for, or in the course of, the applicant's business.
7. Violation within the preced ing five (5) years, of any law relating to the ft, damage
or trespass to property, sale of a controlled substance, or operation of a
business.
8. The owner of the premises licensed or to be licensed would not quali fy for a
license under the terms of this Section.
B. The City Council may act to suspend or revoke a license for non -compliance with an
applicable statute, regulation or ordinance. A li censee shall be given ten (10) days
written notice of a penalty, sus pension or revocation action stating the reasons for the
suspension or revocation as well as the date, time and place at which the City Counci I
will consider action. Opportunity to be heard with regards to the suspension or
revocation of the license shal I be given to the licensee if present when the City C ouncil
considers action.
7-12-22: PENALTY: A violation of any provision of this section shall be a misdemeanor.
The Licensing Authority shall reserve the right to pursue any administrative, civil or criminal
procedure available to it to abate a violation of this Section.
7-12-23: SEPARABILITY: Should any section, subsection, clause or other provision of
this chapter be declared by a court of competent jurisdiction to be invalid such decision shall not
affect the validity of the ordinance as a whole or an y part other than the part so declared invalid.
Section 3. This Ordinance shall become effective immediately upon its passage
and publication.
MOTION BY: CM Heidner
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SECOND BY: CM Darkenwald
ALL IN FAVOR: Mayor Stockamp; Councilmembers: Heidner, Darkenwald, thorsted
and Scharber
THOSE OPPOSED: None
by the Otsego City Council this 27th day of April, 2009.
ATTEST: Zlwy"�;m A&
Tami Loff, City Clerk
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CITY OF OTSEGO
&14 "Up, 7001 Aw
rvA,V'i6!jStocka&p, 'Mayor