§ 22-137. Dealers in precious metals and gems.

(a)

Jurisdiction. The law enforcement officer designated to administer the provisions of this code and register dealers in precious metals or gems in this municipality shall be the chief of police.

(b)

License required.

(1)

Every person doing business in the city as a dealer in precious metals or gems, prior to commencing business, shall make proper application for and receive the appropriate business license to conduct business within the city.

(2)

No application for a license to do business as a dealer in precious metals and gems shall be considered or approved or a license issued where the number of such licenses issued and in effect at the time of such application number one for each 5,000 residents according to the latest decennial census figures available. In making this computation, fractions of population shall not be considered.

(c)

Licensing and permitting fees.

(1)

Designated: All businesses licensed under this article shall pay the following designated license and permit fee:

Per Calendar Year

 

a.

Pawnshops/dealers in precious metals or gems. This fee shall include the initial registration of named applicant ..... $1,500.00

b.

Employee permits, per application ..... 20.00

(2)

Employee permit. Each person authorized or allowed to conduct any place of business covered under this article shall be considered an employee, and must have an approved employee permit; and this permit must be displayed along with the business license in accordance with license display requirements.

(3)

Transfer of license or permit. The license and permit issued under this article shall not be transferable unless the person to whom the license is to be transferred has applied for a transfer of license and otherwise meets all of the conditions to qualify for a license under the provisions of this article.

(4)

Transfer of ownership interest. Any transfer of 25 percent or more of the ownership interest in any corporation which holds the license under this article shall be considered a transfer of license and shall require the qualification of the transferee pursuant to subsection (c) above. Failure of a transferee to receive a notice of qualification for transfer shall void the license.

(d)

Registration.

(1)

No person shall engage in business as a dealer in precious metals or gems until he has registered as a dealer in precious metals or gems for each separate place of business. The registration shall be in writing and sworn to or affirmed by the dealer in precious metals and gems and shall be renewed annually upon presentation of a current business license by the dealer and payment of a renewal fee of $10.00.

(2)

A copy of each registration issued pursuant to this code section shall be transmitted by the chief of police to the sheriff of the county within seven (7) days of the registration. The sheriff of the county shall maintain a record of all registrations, which record shall be available for public inspection.

(3)

Applicants for a license or permit under this article shall file a written, sworn application on a form provided by the city clerk, signed by the applicant if an individual, by the partner making application if a partnership, or by the president of a corporation, showing:

a.

The name, address and age of the dealer together with the names, addresses, and ages of all other persons having an ownership interest or actually employed in the business;

b.

The local address or addresses of such person or persons while engaged in such business, the permanent address or addresses of such person or persons; the capacity in which such person or persons will act (as proprietor, agent, employee or otherwise); and, if registrant is a corporation, the state in which it is incorporated;

c.

The fingerprints of the principals, agents or employees of the applicant's business, and other evidence which establishes to the satisfaction of the city clerk subject to the approval of the city council, the good character of such persons to carry on the business;

d.

The address of the place in the city where business is proposed, the zoning and planning classification of the premises, and the length of time such business is expected to operate;

e.

Whether or not the person having the management or supervision of the applicant's business has been convicted of a crime, misdemeanor or the violation of any municipal ordinance, the nature of such offense and the punishment assessed therefor;

f.

If the applicant is a corporation, said application must also state: (i) whether or not any shares in the corporation have been sold and if so to whom the shares were sold; and (ii) whether or not majority control of the corporation has been transferred in the preceding year;

g.

Such other information as to the identity or character of the person having the management or supervision of the applicant's business or the method or plan of doing such business as the city clerk may deem proper to fulfill the purpose of this article in the protection of the public good;

h.

A brief statement of the nature and the character of the advertising done or proposed to be done in order to attract customers; and

i.

A list of similar businesses owned and operated by the applicant in the 12-month period preceding the application to include the full address and current status of each such establishment.

(4)

No person shall be eligible to register as a dealer in precious metals or gems, or renew a license of said dealer, if any employee or any stockholder owning more than ten percent of the outstanding shares has been convicted of a felony under state law or under the laws of any other state. This subsection shall not apply to any person who has completed or satisfied the terms of their felony conviction at least five years prior to issuance or renewal of the license and/or registration.

(5)

Each dealer shall be required to notify the appropriate law enforcement agency of any change of address of the dealer or the business, or of any change in ownership of the business. A copy of the change of address or ownership of business shall be transmitted to the sheriff of the county within seven (7) days of the notification.

(e)

Bond issues.

(1)

Every applicant for a license shall post with the city clerk a surety bond in favor of the city in the amount of $8,000.00, which bond shall not be accepted unless it be with a corporate surety licensed to do business in the state and unless it is conditioned that the applicant shall comply fully with all applicable provisions of federal, state and local laws, rules and regulations concerning the activity for which the applicant is to be licensed, and that the property purchased is guaranteed to be in accordance with the specifications, standards and conditions represented to the purchaser by the applicant. A blanket bond otherwise meeting the requirements of this section shall be accepted.

(2)

If any person shall be aggrieved by the conduct of any such licensee, and shall receive judgment against him therefor, such person may, after the return unsatisfied, either in whole or in part, of any execution issued upon such judgment, maintain an action in his own name upon the bond or letter of credit of this license in any court having jurisdiction of this amount of such judgment remaining unsatisfied.

(f)

Record keeping requirements.

(1)

Each dealer in precious metals or gems shall maintain a book, in permanent form, in which the following details shall be entered at the time of each purchase:

a.

The date and time of purchase;

b.

The name of the person making the purchase from the seller;

c.

The name, age, address of the seller of the items purchased and distinctive number from such seller's driver's license or other similar identification card containing a photo of the seller;

d.

A clear and accurate identification and description of the purchased goods, including the brand name, make, serial, model, or other identifying number, as well as all identifying marks inscribed thereon;

e.

The price paid for the goods purchased;

f.

The number of the check issued for the purchase price, if payment is made by check; and

g.

The signature of the seller.

(2)

The permanent record book required by this code section shall be legible in English. Entries shall appear in chronological order and shall be made no later than one hour after the transaction. No blank lines may be left between entries. No obliterations, alterations, or erasures may be made. Corrections shall be made by drawing a line of ink through the entry without destroying its legibility. The book shall be maintained for each purchase of precious metals, gems, or goods for at least two years. The book shall be open to inspection of any duly authorized law enforcement officer during the ordinary hours of business or at any reasonable time.

(3)

Every dealer under this code section shall report to the appropriate law enforcement agency all transactions and goods purchased or sold within 24 hours of said sale. The report shall contain the information outlined in subsection (1) and shall be typewritten or handwritten in legible English and mailed or delivered to the law enforcement agency within 24 hours after the day on which the transaction occurred.

(4)

Any person engaged in any business licensed under this article, who shall fail or refuse to keep the records as provided in this article, or who shall make false entries concerning the transaction or who shall fail or refuse to permit an inspection by any law enforcement officer of the city or the state of such records and of the property with or sold to them shall be guilty of a violation of this article.

(5)

Dealers exclusively engaged in buying or exchanging for merchandise scrap dental gold or silver from licensed dentists by registered or certified mail or statutory overnight deliver may record the post office record of the mailed parcel in lieu of the seller's age and driver's license number as required in paragraph c. of subsection (1) of this code section and in lieu of the seller's signature as required in paragraph f. of subsection (1).

(g)

Unlawful activities; penalties.

(1)

It shall be unlawful for any dealer in precious metals or any agent thereof to:

a.

Make any false statement in the registration provided for in code section 22-137.4;

b.

Fail to maintain and make entries in the permanent record book;

c.

Make any false statement in such permanent entry book;

d.

Falsify, obliterate, destroy or remove the permanent record book from the place of business;

e.

Refuse to allow any duly authorized law enforcement officer to inspect such permanent record book, or any precious metals, or any gems or goods made from precious metals in his possession during the ordinary hours of business or at any reasonable time;

f.

Sell, exchange or remove from the legal possession of the buyer, or to alter the form of, any precious metals or gems sooner than seven calendar days from the time of purchase or acquisition;

g.

Fail to make a written report as required by code section 22-137(f)(3); or

h.

Purchase any precious metals or gems from any person under 17 years of age.

(2)

It shall be unlawful for any person to advertise or transact business as a dealer in precious metals and gems without first registering pursuant to this code section.

(3)

It shall be unlawful for any dealer in precious metals or gems to purchase precious metals in a melted or smelted stated unless the purchase is from a registered dealer in precious metals or gems.

(4)

If the appropriate law enforcement officer has probable cause to believe that precious metals or gems have been stolen, he may give notice in writing to the dealer to retain the precious metals or gems for an additional 15 days and it shall be unlawful for the dealer to dispose of the property unless the notice is revoked in writing within the 15 day period.

(5)

Any person who violates this code section shall be guilty of a misdemeanor.

(h)

Exclusions/exceptions. Businesses which limit the purchase of used valuables to the acceptance of trade-ins for credit for new goods or the dispensing of refunds in regard to valuables previously purchased from such business shall not be required or covered under this article.

(i)

Location of business. All businesses licensed under this article shall be located in strict compliance with the city's zoning ordinance and at a location with an identifiable street address, which shall be stated on the license or renewal application along with other required information.

(Ord. No. 03-2007, § 1, 2-26-07)