04-062-O

ORDINANCE NO. __________


AN ORDINANCE AMENDING CHAPTER 36 OF THE DULUTH CITY CODE, 1959, AS AMENDED, REGULATING PAWNBROKERS.

BY COUNCILOR LITTLE:

The city of Duluth does ordain:

     Section 1. That Section 36-6 of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 36-6. Records to be kept; right of inspection; pawn tickets.

     (a)  Each person licensed hereunder shall keep a record of each reportable transaction made in the course of his business. Such records shall include all outright purchases of property made on the premises, even though the seller has no right of repurchase, and shall also include pledges or purchases of property made off the licensed premises but stored or held for sale on the licensed premises. Such records shall be in a form prescribed by the chief of police and shall, in all instances, be legibly made in ink and be in the English language. The record so kept shall include the following information about each transaction:

           (1)  The name, address, telephone number and date of birth of the person pledging or selling the item;

           (2)  The time and date of the transaction;

           (31) A complete and accurate description of the each item pledged or sold, including all identifying numbers and identifying marks including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item;

           (4)  The identification presented as required by Section 36-13 of this Chapter;

           (5)  A description of the person pledging or selling the item;

           (6)  The amount of money paid or loaned for the item;

           (7)  The signature of the person pledging or selling the item;

           (8)  Any other information the chief of police shall require;

           (2)  The purchase price, amount of money loaned upon, or pledged therefor;

           (93) The maturity date of the pawn transaction and the amount due, including monthly and annual interest rates and all pawn fees and charges;

           (10) The monthly and annual interest rates, including all pawn fees and charges;

           (4)  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;

           (5)  Full name, current residence address, current residence telephone number, date of birth and accurate description of the person from whom the item of the property was received, including: sex, height, weight, race, color of eyes, and color of hair;

           (6)  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;

           (7)  The signature of the person identified in the transaction;

     (b)  The records required herein shall be kept available for police inspection at any reasonable time at the licensee's place of business and shall be kept for at least three years after any transaction;

     (c)  The chief of police may require that all records and information required to be kept by this Section be kept by computer or other electronic format, or that video or photographic records be kept. The chief of police may also require that the computerized or electronic records of the pawnbrokers be electronically transmitted to police headquarters on a periodic basis. The format for computerized pawnbroker records shall be the “interchange file specification format” specified in Minnesota Statutes Section 325J.05(b) and (c) or its successor;

     (d)  The pledgor or seller shall sign a pawn ticket and receive an exact copy of the pawn ticket. The following shall be printed on all pawn tickets:

           (1)  The statement that “Any personal property pledged to a pawnbroker within this state is subject to sale or disposal when there has been no payment made on the account for the period of not less than 90 days past the day of the pawn transaction, renewal, or extension; no further notice is necessary. There is no obligation for the pledgor to redeem pledged goods.”;

           (2)  The statement that “The pledgor of this item attests that it is not stolen, it has no liens or encumbrances against it, and the pledgor has the right to sell or pawn the item.”;

           (3)  The statement that “This item is redeemable only by the pledgor to whom the receipt was issued, or any person identified in the receipt, or a person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor. Written authorization for release of property to persons other than the original pledgor must be maintained along with the original transaction record.”; and

           (4)  A blank line for the pledgor’s signature.

     Section 2. That Section 36-7 of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 36-7. Daily reports to chief of police. 

     Every pawnbroker shall make available to the chief of police every day, before the hour of 12:00 noon, a complete, legible and correct copy of the records required by Section 36-6 for all transactions occurring on the previous day, provided that. iIf the chief of police requires computerized recordkeeping for pawnbroker records, the chief shall also set and enforce specifications for each licensee’s transmittal of those records to local and statewide authorities or data systems.

     (a)  Effective no later than 60 days after the police department provides licensees with the current version of the Automated Pawn System Interchange File Specification, licensees must submit every reportable transaction to the police department daily in the following manner:

           (1)  Licensees must provide to the police department all reportable transaction information by transferring it from their computer to the Automated Pawn System via modem using the current version of the Automated Pawn System Interchange File Specification. 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 issuing authority. Any transaction that does not meet the Automated Pawn System Interchange File Specification must be corrected and resubmitted the next business day. The licensee must display a sign of sufficient size, in a conspicuous place in the premises, which informs patrons that all transactions are reported to the police department daily;

     (b)  Billable transaction fees. Licensees will be charged for each billable transaction reported to the police department;

           (1)  If a licensee is unable to successfully transfer the required reports by modem, the licensee must provide the police department, upon request, printed copies of all reportable transactions along with the video tape(s) for that date, by noon the next business day;

           (2)  If the problem is determined to be in the licensee’s system and is not corrected by the close of the first business day following the failure, the licensee must continue to provide the required reports as detailed in Section 36-6(a) of this Code, and must be charged a $50 reporting failure penalty, daily, until the error is corrected; or

           (3)  If the problem is determined to be outside the licensee’s system, the licensee must continue to provide the required reports in Section 36-6(a) of this Code, and resubmit all such transactions via modem when the error is corrected;

           (4)  Regardless of the cause or origin of the technical problems 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;

           (5)  Section 36-7(b)(1) through (3) notwithstanding, the police department may, upon presentation of extenuating circumstances, delay the implementation of the daily reporting penalty.

     Section 3. That Section 36-8 of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 36-8. Pledge or pawn not forfeited for three months 90 days.

     Any person pledging or pawning any article with any pawnbroker shall have three months 90 days to redeem the same before the pledge or pawn becomes forfeited.

     Section 4. That Section 36-9 of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 36-9. Property not to be sold within 14 days after filing reports.

     No personal property deposited with or purchased by any licensee, including outright purchases of property with no right of repurchase, shall be sold or permitted to be redeemed from such licensee until 14 days after the copy of the records required by Section 36-7 to be made available to the chief of police shall have been delivered, the chief of police or any member of the police force designated by him shall notify any licensee not to sell or permit to be redeemed any property so purchased, received or deposited, such property shall not be sold or permitted to be redeemed, except with the written consent of the chief of police.

Sec. 36-9. Holding periods; labels required.

     (a)  Holding periods. Any item purchased or accepted in trade by a licensee must not be sold or otherwise transferred for 30 days from the date of the transaction. An individual may redeem an item 72 hours after the item was received on deposit, excluding Sundays and legal holidays;

     (b)  Label required. Licensees 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 name 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 applicable. Labels shall not be re-used.

     Section 5. That Section 36-11 of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 36-11.Display of sign advertising, etc., before permit obtained prohibited.

     No person shall hold himself out to be a pawnbroker or advertise such services without having first obtained a license pursuant to this Chapter.

Sec. 36-11.Police order to hold property.

     (a)  Investigative hold. Whenever a law enforcement official from any agency notifies 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 within 72 hours and will remain in effect for 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 36-11(b)(c) of this Code, whichever comes first;

     (b)  Order to hold. Whenever the chief of police, or the chief’s designee, 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 chief’s designee. The order to hold shall expire 90 days from the date it is placed unless the chief of police or the chief’s designee determines the hold is still necessary and notifies the licensee in writing;

     (c)  Order to confiscate. If an item is identified as stolen or evidence in a criminal case, the chief or chief’s designee may:

           (1)  Physically confiscate and remove it from the shop, pursuant to a written order from the chief or the chief’s designee; or

           (2)  Place the item on hold or extend the hold as provided in Section 36-11(b) of this Code, and leave it in the shop.

           When an item is confiscated, the person doing so shall provide identification upon request of the licensee, and shall provide the licensee the name and phone number of the confiscating agency and investigator, and the case number related to the confiscation.

           When an order to hold/confiscate is no longer necessary, the chief of police, or chief’s designee, shall so notify the licensee.

     Section 6. This ordinance shall take effect 30 days from and after its passage and publication.


STATEMENT OF PURPOSE:  This ordinance modifies the pawnshop regulations to be consistent with a state-wide enforcement system the city has joined.