HomeMy WebLinkAboutOrdinance #2712 ORDINANCE N0. 2712
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AMENDING THE HUNTINGTON BEACH MUNICIPAL CODE
BY REPEALING CHAPTER 5 . 36, AND ADDING THERETO
NEW CHAPTER 5. 36 RELATIVE TO LICENSING OF
PAWNBROKERS, JUNK AND SECONDHAND DEALERS IN
THE CITY
The City Council of the City of Huntington Beach does
ordain as follows :
SECTION 1. Chapter 5. 36 of the Huntington Beach Municipal
Code is hereby repealed.
SECTION 2 . The Huntington Beach Municipal Code is hereby
amended by adding thereto new Chapter 5. 36 entitled, "Pawn-
brokers, Junk and Secondhand Dealers" to read as follows:
5.36. 010 Pawnbroker defined. Pawnbroker shall mean every
person engaged in the business of receiving goods in pledge as
security for a loan, excluding a good faith purchase of goods.
5.36. 020 License required. Every pawnbroker shall first
procure a business license and pay the annual license fee re-
quired by this title .
5.36. 030 Doing business with minor. No pawnbroker shall
receive anything in pledge from any person under the age of
sixteen (16) years, and any statement by. a pledger, under the
age of sixteen (16) years, to the effect that such pledger is
sixteen (16) years of age or older shall not excuse the li-
censee, his agent or employee from committing a violation of
this section.
5.36. 040 Regulations. Every person doing business in
this city as a pawnbroker shall be subject to the regulations
contained in California Financial Code Division 8, Chapter 2,
commencing with section 21200, and such other requirements and
regulations as the chief of police may deem reasonable and
necessary.
5.3 6. 050 Property in possession of pawnbroker--Police
hold. Whenever any peace officer has probable cause to believe
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that property in the possession of a pawnbroker is stolen, he
may place a hold on such property for a period not to exceed
ninety (90) days. The peace officer shall give the pawnbroker
a written notice at the time the hold is placed, describing the
item or items to be held. During such period the pawnbroker
shall not release or dispose of such property except pursuant
to a court order or upon receipt of written authorization signed
by the custodian of the police department property section,
pursuant to California Penal Code sections 1407 et seq. If
the custodian or person in charge of the police property section
determines that property has been stolen and authorizes the re-
lease of such property to the owner, the owner of the property
shall be given a statement by such custodian or person in charge
of the police property section which clearly indicates that the
law neither requires nor prohibits payment of a fee or any other
condition in return for surrender of the property. Pursuant to
California Business and Professions Code section 21647, a pawn-
broker shall not be subject to civil liability for compliance
with this section.
5.36. 060 Personal property pledged to pawnbroker--Re-
demption by pledger. No section of this chapter insofar as
it applies to holding periods for personal property, shall
apply to personal property pledged to a pawnbroker with re-
gard to the redemption of such personal property by the pledger.
5.36. 070 Junk dealer defined. As used in this chapter,
"Junk dealer" includes any person engaged in the business of
buying, selling and dealing--in junk, as defined in California
Business and Professions Code section 21600, any person pur-
chasing, gathering, collecting, soliciting or traveling about
from place to place procuring junk, and any person operating,
carrying on, conducting or maintaining a junk yard or place
where junk is gathered together and stored or kept for ship-
ment , sale or transfer. The provisions of this chapter shall
not apply to any person who sells junk acquired in the conduct
of any business other than that of junk dealer.
5.36. 080 Junk dealer--License required. Every person in
this city who engages in the business of buying, selling, deal-
ing in junk, any person purchasing, gathering, collecting,
soliciting or traveling about from place to place to procure
junk shall first obtain a business license and pay the annual
license fee required by this title.
5. 36. 090 Junk dealer--Records retention--Inspection. Every
junk dealer in this city shall keep a written record of all sales
and purchases made in the course of his or her business which
shall be retained for two (2) years after making the final entry
of any purchase or sale of junk. Such record shall be exhibited
2.
on demand of any peace officer.
5.36.100 Junk dealer' s records--Contents . Every junk
dealer shall set out in the written record required by this
chapter all of the following:
(a) The place and date of each sale or purchase made in
the conduct of his or her business of junk dealer.
(b) The name, address and occupation of each person from
whom junk is purchased or obtained, and the license number of
any motor vehicle used in transporting the junk to the junk
dealer' s place of business .
(c) The name, address and occupation of each person to
whom junk is sold or disposed of, and the license number of any
motor vehicle used in transporting the junk from the junk
dealer' s place of business.
5.36. 110 Secondhand dealer defined. (a) A "secondhand
dealer, " as used in this chapter, means and includes any person,
copartnership, firm or corporation whose principal business is
primarily that of engaging in buying, selling, trading, taking
in pawn, accepting for sale on consignment , accepting for auc-
tioning or auctioning secondhand tangible personal property.
(b) "Secondhand dealer" also includes any person who en-
gages in the business of buying or selling secondhand tangible
personal property in excess of 20 percent of the gross sales
and purchases of goods or merchandise sold or purchased in the
regular course of business , but does not include any person who
performs the service of an auctioneer for a fee or salary.
5 .36.120 Tangible personal property defined. (a) As
used in this chapter, "tangible personal property" includes, but
is not limited to, all secondhand tangible personal property
which bears a serial number or personalized initials or inscrip-
tion or which, at the time it is acquired by the secondhand
dealer, bears evidence of having had a serial number or per-
sonalized initials or inscription.
(b) "Tangible personal property" also includes , but is
not limited to, the following:
(1) All tangible personal property, new or used, re-
ceived in pledge as security for a loan by a pawnbroker or a
secondhand dealer acting as a pawnbroker.
(2) All tangible personal property that bears a
serial number or personalized initials or inscription which is
3.
purchased by a secondhand dealer or a pawnbroker or which, at
the time of such purchase, bears evidence of having had a
serial number or personalized initials or inscription.
(3) All personal property commonly sold by second-
hand dealers which statistically is found through crime re-
ports to the Attorney General to constitute a significant
class of stolen goods, and appears on a list furnished the
chief of police by the Attorney General.
(c) As used in this chapter, "tangible personal property"
does not include any new goods or merchandise purchased from a
bona fide manufacturer or distributor or wholesaler of such
new goods or merchandise by a secondhand dealer. For the pur-
poses of this chapter, however, a secondhand dealer shall re-
tain for one (1) year from the date of purchase, and shall
make available for inspection by any law enforcement officer,
any receipt , invoice, bill of sale or other evidence of pur-
chase of such new goods or merchandise.
(d) As used in this chapter, "tangible personal property"
does not include coins, monetized bullion, or commercial grade
ingots of gold, silver, or other precious metals. "Commercial
grade ingots" means . 99 fine ingots of gold, silver, or plati-
num, or . 925 fine sterling silver art bars and medallions, pro-
vided that the ingots, art bars, and medallions are marked by
the refiner or fabricator as to their assay fineness .
(e) As used in this chapter, "tangible personal property"
shall include jewelry whether it bears a serial number, per-
sonalized initials or inscription.
5. 36, 130 Business machine dealer• report of used machines
and repairs . a Every business machine dealer shall report
all used business machines which he has purchased, taken in trade,
or accepted for sale or consignment from an individual to the
chief of police as required by section 5. 36. 180, and if required
by the chief of police, shall include all used business machines
which he has repaired.
No report of repair shall be required from a dealer ser-
vicing or repairing a machine in the possession of the owner
to whom the dealer sold the machine when new.
(b) As used in this section, the term "business machine"
includes , but is not limited to, typewriters, adding machines,
check-writing devices, cash registers, calculators, addressing
machines, copying and accounting equipment , court reporting ma-
chines, letter sorting and folding devices, and recording equip-
ment, but does not include office furniture or fixtures .
4.
5. 36.140 Exceptions--Tangible personal property. The
provisions of this chapter shall not apply to any tangible
personal property which has been:
(a) Acquired from another secondhand dealer; provided
the secondhand dealer selling or trading the tangible personal
property states in writing under penalty of perjury, along
with a description of the property, on an interdealer transfer
form or an itemized bill of sale, that the report or reports
required by this chapter have been properly made and submitted
by that dealer. A copy of the form or the itemized bill of
sale shall be delivered to the acquiring dealer at the time
the transaction occurs. Interdealer forms shall be provided
at actual cost by the Department of Justice. This exception
shall not apply if such transaction takes place outside the
city of Huntington Beach.
The dealers involved in the transaction shall re-
tain their copy of the interdealer transfer form or itemized
bill of sale for a period of three (3) years as a matter of
record, and shall make them available for inspection by any
law enforcement officer.
(b) Acquired in a nonjudicial sale, transfer, assign-
ment , assignment for the benefit of creditors, or consignment
of the assets or stock in trade, in bulk, or a substantial part
thereof, of an industrial or commercial enterprise for pur-
poses of voluntary dissolution or liquidation of the seller' s
business, or for the purpose of disposing of an excess quantity
of personal property; or which has been acquired in a nonju-
dicial sale or transfer from an owner of his or her entire
household of personal property, or a substantial part thereof;
provided, the secondhand dealer retains in his or her place
of business for a period of three (3) years a copy of the
bill of sale, receipt, inventory list , or other transfer docu-
ment as a matter of record which shall be made available for
inspection by any law enforcement officer; and provided fur-
ther that the secondhand dealer notifies the chief of police
that exemption from reporting is being claimed under this sub-
section. "Industrial or commercial enterprise" and "owner"
as used in this subsection do not include a secondhand dealer.
(c ) Acquired in a sale made by any public officer in
his or her official capacity, trustee in bankruptcy, executor,
administrator, receiver, or public official acting under ju-
dicial process or authority, or which has been acquired in a
sale made upon the execution of, or by virtue of, any process
issued by a court, or under the provisions of Division 6
(commencing with section 7101) of the California Commercial
Code .
5.
(d) Acquired as the surplus property of the United States
government or of a state, city, county, city and county, mu-
nicipal corporation, or public district and which after requi-
sition or acquisition by the United States government or by a
state, city, county, city and county, municipal corporation, or
public district has never thereafter been sold at retail; and
(e) Reported by a secondhand dealer as an acquisition or
a purchase, or which has been reported as destroyed or other-
wise disposed of (1) to a state agency by the authority of
any other law of this state; or (2) to a city, county, city and
county officer or agency by the authority of any other law of
this state or a city, county, or city and county ordinance .
(f) Acquired by persons, firms , partnerships , or cor-
porations who buy, sell, or trade precious metals, whether in
the form of coins or commercial grade ingots, who (1) are
designated contract markets by or registered with the Commodity
Futures Trading Commission under the Federal Commodities Exchange
Act and acting pursuant thereto; or (2) infrequently conduct
their business directly with members of the general public . As
used in this subsection, "infrequently" means occasional and
without regularity.
5. 36. 150 Retention of property by dealer. Notwithstanding
section 5. 36. 140, the provisions of this chapter shall apply to
any tangible personal property which has been acquired by a
secondhand dealer with the understanding or expectation that
such property would be later reacquired by the transferor or
an agent thereof.
Every secondhand dealer shall retain in his possession
for a period of thirty (30) days all tangible personal prop-
erty reported under the provisions of section 5. 36. 180. The
thirty-day holding period with respect to such tangible per-
sonal property shall commence with the date the report of its
acquisition was made to the chief of police by the secondhand
dealer. The chief of police may for good cause, as specified
by the Department of Justice, authorize prior disposition of
any such property described in a specific report provided
that a secondhand dealer who disposes of tangible personal
property pursuant to such authorization shall report the sale
thereof to the chief of police .
5.36.160 Licenses required--City and state. (a) Every
secondhand dealer shall procure a city business license and
pay the annual fee required by this title .
(b) The chief of police shall accept an application for
and grant a license permitting the licensee to engage in the
6.
business of secondhand dealer, as defined in this chapter, to
an applicant who has not been convicted of an attempt to re-
ceive stolen property or any other offense involving stolen
property. Prior to granting such license, the chief of police
shall submit the application to the Department of Justice. If
no response has been received from the Department of Justice
within thirty (30) days thereafter, the chief of police may
grant the applicant a license upon receipt of a fee set by the
Department of Justice. In addition to the fee required by the
Department of Justice, the applicant shall also pay a nonre-
fundable fee, set by resolution of the city council, to defray
administrative costs of processing each application. All ap-
plicants shall be fingerprinted.
For the purposes of this section, "convicted" means a plea
or verdict of guilty or a conviction following a plea of nolo
contendere.
5.36.170 License renewal--Forfeiture--Grounds. The li-
censes granted pursuant to this title shall be renewable one (1)
year from the date of issue, and annually thereafter, upon the
filing of a renewal application and payment of the required fees.
Licenses shall be subject to forfeiture by the city and li-
censee ' s activities as a secondhand dealer shall be subject to
being enjoined pursuant to the provisions of this chapter for
breach of any of the following conditions :
(a) The business shall be carried on only in the build-
ing or buildings designated in the license.
(b) The licenses or copies thereof, certified by the
license division and the chief of police respectively, shall
be displayed on the premises where they can easily be seen.
(c) The licensee shall not engage in the business of
secondhand dealer, as defined in this chapter, with any minor
under the age of eighteen (18) years.
(d) The licensee shall not engage in any act which is
in violation of this title or other applicable provisions of
this code, or of state law.
(e) The licensee shall not be convicted of an attempt
to receive stolen property or any other offense involving
stolen property. For the purposes of this subsection, "con-
victed" means a plea or verdict of guilty or a conviction fol-
lowing a plea of nolo contendere . Any action which the chief
of police is permitted to take following the establishment of
a conviction may be taken when the time for appeal has elapsed,
or the judgment of conviction has been affirmed on appeal, or
7.
when an order granting probation is made suspending the impo-
sition of sentence, irrespective of a subsequent order under
the provisions of California Penal Code section 1203. 4 .
5.36.180 Report required--Time. Every secondhand dealer
shall report daily, or on the first working day after receipt
or purchase of such property, on forms either approved or pro-
vided at actual cost by the Department of Justice, all tangible
personal property which he or she has purchased, taken in trade,
taken in pawn, accepted for sale on consignment, or accepted
for auctioning, to the chief of police. The report shall in-
clude, but not limited to, the following information:
(a) The name and address of the intended seller of the
property.
(b) A complete and reasonably accurate description of
such property, including serial numbers or other identifying
marks or symbols.
(c) A certification by the intended seller that to his
or her knowledge and belief the information is true and com-
plete.
5. 36. 190 Adequate evidence of authority to sell. As
used in this chapter, "adequate evidence of authority to sell"
is evidence from which a reasonable person would conclude that
the person presenting the evidence is the owner of the item he
is attempting to sell or is the agent of such owner and is au-
thorized by the owner to sell such item. "Adequate evidence of
authority to sell" shall include , but not be limited to, a
valid driver' s license, an identification card issued by a
government agency, containing a photograph, physical descrip-
tion, together with a clear impression of the right thumb , or
in the case of amputation, the next finger. In instances where
the seller is personally known to the pawnbroker, secondhand
dealer or junk dealer, a copy of the seller' s social security
card may be acceptable . Fingerprints shall be witnessed by
the individual signing the report form.
5.36. 200 Presentation to dealer of adequate evidence of
authority to sell. Every junk dealer or secondhand dealer
shall, before accepting for resale from any person any finished
product, new item of finished or merchandisable quality, in-
ventory item of new materials or finished quality, or other
goods and materials in such a state or condition as to show
that they are neither abandoned nor scrapped, shall require
that such person present adequate evidence of authority to
sell. Violation of this secion is a misdemeanor.
8.
5. 36. 210 Approved report form--Copies--Submission and
retention. Report forms approved by the Department of Justice
shall consist of not less than an original and two copies .
Report forms which are not obtained from the Department of
Justice shall be compatible with computerization, and shall
consist of an original and two copies. The original and dupli-
cate copy shall be submitted by the secondhand dealer in accord-
ance with section 5. 36. 180, and one copy shall be retained by
such secondhand dealer in his place of business for a period
of three (3) years, and shall be available for inspection by
any law enforcement officer.
5. 36.220 Report by chief of police. The chief of police
who receives a report on a form filed pursuant to the provi-
sions of this chapter shall daily submit the original to the
Department of Justice. A file shall be maintained of copies
of all reports submitted, as herein required, for a period of
three (3) years, and shall be available for inspection by any
law enforcement officer.
5 36. 230 Goods--Destruction, altering, exporting prohi-
1ted. No person licensed under the provisions of this chap--
ter shall destroy, alter or export any article, goods, wares,
merchandise or thing pledged to or purchased by the licensee,
unless released by the chief of police as provided herein,
until expiration of the thirty-day holding period. All such
items shall be displayed to public view during such holding
period.
5 . 36. 240 Violations--Misdemeanor--punishment . A vio-
lation of any provision of this chapter is a misdemeanor.
Any person found guilty of a violation of a provision hereof
shall be punished as follows :
(a) For the first offense, a fine of up to one thousand
five hundred dollars ($1,500) or imprisonment in the county
jail up to two (2) months, or both.
(b) For the second offense, a fine of up to five thousand
,dollars ($5,000) or imprisonment in the county jail up to four
(4) months, or both.
(c ) For the third and any subsequent offense, a fine of
up to twenty-five thousand dollars ($25,000) or imprisonment
in the county jail up to six months , or both.
SECTION 3. If any section, subsection, sentence , clause,
phrase or portion of this ordinance is for any reason held to be
invalid or unconstitutional by the decision of any court of com-
9.
petent jurisdiction, such decision shall not affect the validity
of the remaining portions of this ordinance . The City Council of
the City of Huntington Beach hereby declares that it would have
adopted this ordinance and each section, subsection, sentence,
clause, phrase, or portions thereof, and amendments thereto, ir-
respective of the fact that any one or more sections, subsections,
sentences, clauses, phrases or portions, or amendments be declared
invalid or unconstitutional.
SECTION 4. Neither the adoption of this ordinance nor the
repeal of any ordinance shall in any manner affect the prosecu-
tion for violation of ordinances which violations were committed
prior to the effective date hereof, nor be construed as affecting
any of the provisions of such ordinance relating to the collec-
tion of any license or penalty of the penal provisions applicable
to any violation thereof, nor to affect the validity of any bond
or cash deposit in lieu thereof, required to be posted, filed or
deposited pursuant to any ordinance and all rights and obligations
thereunder appertaining shall continue in full force and effect .
SECTION 5. The provisions of this ordinance insofar as
they are substantially the same as existing provisions of the
Huntington Beach Municipal Code relating to the same subject
matter shall be construed as restatements and continuations
and not as new enactments.
SECTION 6. This ordinance shall become effective thirty
days after its passage.
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach at a regular-meeting thereof held on the 13th
day of August 1984.
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney �_•�$4
10.
REVIEWED AND APPROVED: INITIATED AND APPROVED:
k
y Administrator Chie of Police
11.
Ord. No. 2712
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ALICIA M. WENTWORTH, the duly elected, qualified City
Clerk of the City of Huntington Beach and ex-officio Clerk of the
City Council of the said City, do hereby certify that the whole number
of members of the City Council of the City of Huntington Beach is seven;
that the foregoing ordinance was read to said City Council at a regular
meeting thereof held on the 16th day of July
1984 and was again read to said City Council at a regular adjourned
meeting thereof held on the 13th day of August 19 84 , and
was passed and adopted by the affirmative vote of more than a majority of
all the members of said City Council.
AYES: Councilmen:
Pattinson , MacAllister, Thomas , Kelly, Finley, Mandic
NOES: Councilmen:
None
ABSENT: Councilmen:
None
ABSTAIN: Bailey Qc%/
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California
1. Abel& PA. Watt000r#h CITY CtERK of the City o1
Htud toon Beach and ex-oftlo Clark of the City
Council, do hareby certity lhat a.synapsis of this
ordinance has been published in the liyn bVton
Beach Independent on
......................... m g..y...
In accordavc4 with the City Charter Of said City.
ALICIA M. WENTWORYb
......._......—............... ........._.,. .. .. _...........City Clerk
.__....__. .04putY City C*k