Ordinance 1746 - TABLED INDEFINITELY - Pawn Shops and Secondhand Stores11/03/2014 TABLED INDEFINITELY
ORDINANCE NO. 1746
AN ORDINANCE AMENDING CHAPTER 20 OF THE KALISPELL MUNICIPAL CODES
RELATING TO PAWNBROKERS, JUNK AND SECONDHAND DEALERS, RESCINDING
KMC 20-1 THROUGH 2O-10 AND REPLACING THE RESCINDED PARTS AS SET FORTH,
DECLARING AN EFFECTIVE DATE AND AUTHORIZING THE CITY ATTORNEY TO
CODIFY THE SAME.
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 "A"
Chapter 20 PAWNBROKERS, JUNK AND SECONDHAND DEALERS
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20-1 Definitions
A. "Pawnbroker" means any person or entitv who. within the Citv. loans monev on deposit or pledse
of personal property or any valuable thing, or who deals in the purchasing of personal property 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 monev for personal property when the same is deposited for securitv or is deposited for
any other purpose.
B. "Secondhand Dealer" means any person or entity. who. within the Citv. as a business. ensaaes in
the purchase, sale, trade, barter, recycling or exchange of secondhand goods, wares or merchandise, or
my 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 my person or entity who, within the City, deposits, pledges, sells, trades,
barters or exchanges personal property, secondhand good, wares, merchandise or other valuable
things to an operator as set forth in this chapter.
20-2 Exceptions and Exclusions
A. Pawnbrokers and secondhand dealers are excluded from uploading information into the
selected database per 20-3 of this ordinance if the dealer meets one or more of the followin;
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.
The item is used adult or used children's
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 1 shall keep a legibleregister
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 government.
3. The current street address, city, state and zip code of the customer's residence.
B. All transactions shall be kept in a numerical resister in the order in which thev 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 age 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
Every_ pawnbroker and secondhand dealer shall own, maintain and operate a computer system with
internet access. Every_ pawnbroker or secondhand dealer shall file all records electronically directly
to the police department and/or to an internet 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 Englishlanguage,, in a
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 tangible 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.