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2. Ordinance 1746 - Pawn Shops & Secondhand Stores - 1st ReadingMR, 312 1 , AVE EAST — PO Box 1997 — KALISPELL, MT 59903 TELEPHONE (406) 758-7730 — FAx (406) 758-7799 E-MAIL - KPDCO)KALI SPELL. COM Strii4ng to Exceed Expectations' September 30, 2014 REPORT: Doug Russell, City Manager FROM: Roger Nasset, Chief of Police SUBJECT: Proposed Pawn Shop & Secondhand Store Ordinance MEETING DATE: October 6, 2014 BACKGROUND: In an effort to reduce larceny related crimes, identify larceny suspects and to reunite victims with their property we are proposing updating our current pawn shop/secondhand dealer ordinance (municipal code sections 20-1 thru 20-10). Currently dealers are required to document and submit records on a daily basis to the police department in an effort to track stolen property. This requirement is authorized under State law (7-21-4207 MCA). The current ordinance is problematic to utilize as is it time and labor intensive; therefore it is not being utilized. Changes in technology have provided mechanisms to allow for easier reporting compliance. The proposed ordinance would require electronic reporting to a database which provides for a more efficient search of potential of stolen items and known suspects. We are currently using the "Leads On line" database, which is used by over twenty other law enforcement agencies in Montana and provides an easy mechanism for businesses to report the required information on a cost-free basis. As a result of the work session on Monday September 22'd we modified Article 11, Section 2.01 (g) as requested by council. Adopt proposed ordinance FISCAIL EFFECTS: None ALTERNATIVES: Leave current ordinances as they are, modify proposed ordinance or adopt as written. Respectfully submitted, Rog Nasset, Chief of Police ROGER NAS SET, CHIEF OF POLICE un R0111 viol jM 147. 110 WE L I ZZ"i VA I i Z LM V 111"I WHEREAS, pursuant to Kalispell Municipal Code Chapter 20, the City of Kalispell regulates the business of Pawnbrokers, Junk and Secondhand Dealers, primarily for the purposes of preventing such businesses from being utilized by third parties to sell stolen goods, to assist in the recovery stolen goods conveyed thereto and to obtain evidence in the investigation of thefts; and WHEREAS, the current code is found to be inadequate to serve the above stated purposes; and WHEREAS, the Kalispell City Council therefore finds that it is in the best interest of the safety and welfare of the City and its residents that Chapter 20 of the Kalispell Municipal Code be amended to update the regulation of Pawnbrokers and Secondhand Dealers. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. The City of Kalispell Municipal Code is hereby amended as set forth in Exhibit "A", attached hereto and incorporated fully herein by this reference. SECTION 2. The City Attorney is hereby authorized and directed to recodify this Ordinance. SECTION 3. This Ordinance shall take effect thirty (30) days after its final passage. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS DAY OF OCTOBER, 2014. Mark Johnson Mayor ATTEST: Theresa White City Clerk EXHIBIT "A931 rr• ME - - =- M. 11 jj�'l III 1&111 -70 �j RIM. M xff%�Mp IN N. We "Offolk", MANN. M*. MMINAM!". NW.Nprm F.WBT-.w m a -.ww m P.7.9rm ON 1 .0 I P r.". w PRO IlInF.T. MOM"P.Mrk!"TPI RIM lvmf". Mraw, 9 . . ........... . . ........ i • a r � � r. IMM ■ ■ •' t i r i ■ . .RMONM M.M.9IM ■a r . •l.J\-7 PTA Mr." NOT-STM r. �_ as the ease be, have his her- heetise him hef for- inspeefien may by the and shall alse or- wfitten in bu with of pfopef audiefities when so engaged 20 10 Pur-ehase Rem No Miner-s. dealef in A pawnbrokef, junk Elealef or- junk peddler-, of seeE)HAII a- �. ... geeds, shall pufebase any goods, wares of ffier-ehandise, fffiele of thing, f+em miaer-s;. 20-1 Definitions A. "Pawnbroker" means any person or entity who, within the City, loans money on deposit or pledge of personal property or any valuable thing, or who deals in the purchasing of personal pmerty or valuable things on condition of selling the same back at a stipulated price, whether he does the same for himself or as an agent of some person or firm or corporation, who by any means, method or device loans money for personal property when the same is deposited for security or is deposited for any other purpose. B. "Secondhand Dealer" means any person or entitywho, within the City, as a business, engages in the purchase, sale, trade, barter, recycling or exchange of secondhand goods, wares or merchandise-, or any person who keeps any store, shop, room or place where secondhand goods, wares or merchandise of any kind or description, are bought, sold, traded, bartered, recycled or exchanged is defined as a secondhand dealer within the meaning of this chapter; provided however, that this chapter shall not apply to bona fide trade or turn -ins of secondhand goods, wares or merchandise or other goods where no cash is transferred or paid by the merchant, or to auction houses. C. "Customer" means any person or entity who, within the City, deposits, pledges, sells, trades, barter,-;,, or exchanges personal property, secondhand good, wares, merchandise or other valuable things to an operator as set forth in this chWter. 20-2 Exceptions and Exclusions A. Pawnbrokers and secondhand dealers are excluded from uDloadinLy information into the selected database per 20-3 of this ordinance if the dealer meets one or more of the following criteria: 1. The item purchased by the dealer is under $50.00 in value except if the items are purchased in a quantity of 25 items or more, such as 25 or more DVDs, CD's etc. Jewelry (unless scrap) shall be photographed and the photographs maintained by the purchaser for a period of one year and/or the photo uploaded to the database. 2. The item is used adult or used children's apparel. 3. The seller is a known customer of the dealer and had contracted with the business prior to the property being presented for sale such as estate sale purchase. The exception does not include over-the-counter contracted purchases. 4. The property was obtained through a bidding process through a reputable, licensed auction house. 5. The property is brokered with the business. 6. The acquisition for resale of any goods by a nonprofit corporation or nonprofit association recognized as such by the Internal Revenue Service or by a bona fide fraternal or bona fide religious organization or association. 7. The acquisition for resale or trade of coins or of monetized bullion, or commercial grade ingots of gold, silver or other precious metals including, but not limited to, gold, silver, platinum, which ingot bears a stamp or other marking indicating or reflecting_the government, governmental agency, private corporation, or banking institution issuing or producing the ingot. "Commercial grade ingots" is defined herein as 0.99 fine ingots of gold, silver or platinum. or 0.925 fine sterling silver art bars and medallions, provided that the ingots, art bars and medallions are marked by the refiner or fabricators as to their assay fineness. 20-3 Register A. Any operator who engages in the activities set forth in Section I shall keep a legible register or record of all property purchased or taken under that section, along with 1. A description of each article, including, but not limited to, identification number, serial number, model number, brand name or other identification marks on such article-, and a description by weight and design of precious and semi-precious metals or stones. 2. The customer's name and date of birth and documentation from one or more of the following: A valid state identification card; A valid state driver's license; A military identification card: A valid passport; An alien registration card; An official identification document lawfully issued by a state or federal govemment 3. The current street address, city, state and zip code of the customer's residence. B. All transactions shall be kept in a numerical register in the order in which they occur, which register shall show the printed name and written or electronic signature of the pawnbroker, secondhand dealer or agent, the purchase price or other monetary amount of the transaction, the date, time and place of the transaction, and an accurate and detailed account and description of each item of tangible personal property involved, including, but not limited to, any and all trademarks, identification numbers, serial numbers, model numbers, owner -applied numbers, brand names or other identifying marks on such property. 20-4 Examination No person keeping records as required in Section 2 shall fail, neglect, or refuse to exhibit the same to any law enforcement officer or other person, when requested to do so, or refuse to permit any law enforcement officer or other person, to inspect any such article purchased or received. 20-5 Persons from whom articles shall not be taken It shall be unlawful for any pawnbroker or secondhand dealer to receive, purchase or trade any article from a person who is under the influence of alcohol, under the influence of drugs, or under the a-e of 18 years. 20-6 Duration articles must be held A pawnbroker or secondhand dealer shall hold all purchases made through a purchase transaction for a period of fourteen (14) days, during which time the property shall not be disposed of or altered from the form in which it was received. The holding period shall begin on the day the purchase transaction is uploaded into the law enforcement designated database. 20-7 Internet subscription requirements Everypawnbroker and secondhand dealer shall own, maintain and operate a computer system with intemet access. Every pawnbroker or secondhand dealer shall file all records electronically directly to the police department and/or to an intemet subscription service designated as an agent of the police department as prescribed by the Chief of Police. The pawnbroker or secondhand dealer shall enter and upload all information from its database of records regarding contract for purchase, pledges, and purchase transactions by no later than 5:00 PM on Friday of each week. Every operator shall file, upload or record all registers or record of transactions, to an electronic database as designated by the Chief of Police or agent of the police department. If the transactions have not been entered into electronic database according to this section, the Police Department shall stop any further transactions by the operator, until the operator is in compliance. The Chief of Police may for good cause shown grant an operator a written extension to the deadline. 20-8 Requirement for records A. All records required to be kept under this article must be kept in the English language, in legible manner and shall be preserved and made accessible for inspection for a period of three years after the date of redemption or forfeiture and sale of the property. B. Upon demand of any law enforcement officer or agent, the pawnbroker or secondhand dealer shall produce and show any angible personal property given to the pawnbroker or secondhand dealer in connection with any contract for purchase or purchase transaction. The pawnbroker's and secondhand dealer's database shall list the date of the pawning or purchasing, date on which each contract for purchase was canceled, whether it was redeemed, or forfeited or sold, the name of the person by whom the article was pawned or by whom purchased, and the amount loaned on or paid for the article. In the case of the sale of any article pawned or pledged, the pawnbroker or secondhand dealer shall enter upon the register, the name of the purchaser, the time of the sale and the price paid for the article. Such records shall be made available to any law enforcement officer or agent upon request. 20-9 Declaration of ownership A. The pawnbroker and secondhand dealer shall, at the time of making the loan contract for purchase or purchase transaction, obtain a written declaration of ownership from the customer stating whether the property that is the subject of the transaction is solely owned by the customer and, if not solely owned by the customer, the customer shall attach a power of attorney from all co -owners of the property authorizing the customer to sell or otherwise dispose of the property. B. The pawnbroker or secondhand dealer shall require the customer to sign, in their presence, the customer's name on the declaration of ownership.