HomeMy WebLinkAboutOrdinance 944ORDINANCE NO. 944
BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY
CODE OF 1977, PERTAINING TO PRECIOUS METAL DEALERS
The City Council of the City of Columbia Heights does ordain:
Section 1: Section 5.611 of Ordinance No. 853 of the City Code of 1977, passed
June 21, 1977, shall hereafter read as follows, to-wit:
SECTION 11 - PRECIOUS METAL DEALERS
5.611 (1) (a)
No person or organization, except a bona fide non-profit coin
club, shall engage in or conduct a business dealing in precious
metals without a license issued pursuant to the provisions of
this section.
(b)
This section shall not relieve any person or organization dealing
in items other than precious metals at the same or a different loca-
tion, from the requirement of obtaining other licenses required by
this Code.
(c) This section shall not apply to the purchase of secondhand items con-
taining precious metal for resale in unaltered form to the general
public at retail, as an incidental part of a regular b~siness._
(d) This section shall not apply to persons engaging
in coin collecting as a hobby who make less than
twenty (20) purchases and sales within a calendar
year.
5.611 (2) Definitions. For purposes of this section, the following words shall
have the meanings ascribed to them:
(a)
"Precious Metal Dealer" shall mean any person, co-partnership or cor-
poration, either as principal or agent, who engages in the business
of buying or selling secondhand items containing precious metals, in-
cluding but not limited to jewelry, watches, coins, eating utensils,
candlesticks, decorative objects and ingots.
(b) "Precious Metal" shall mean gold, silver and platinum.
5.611 (3) Application.
(a)
Every person or organization desiring a license to deal in precious
metals shall apply to the City Council for a license on an applica-
tion form provided by the City Clerk. The application shall contain
all information required by the City Clerk including:
(i)
Name, place and date of birth and street residence of
the applicant.
(ii)
The business address and the name and address of the
owner of the premises.
(iii)
A statement whether, within the preceding ten years the ap-
plicant has been convicted of any crime, petty misdemeanor
or municipal ordinance relating to receiving stolen goods,
theft, burglary, robbery, damage or trespass to property or
operation of a business; the nature and date of the offense
and the penalty assessed.
(iv)
A statement whether the applicant is a natural person, cor-
poration or partnership.
[aa]
If the applicant is a corporation, the state of in-
corporation and the names and addresses of all offi-
cers and directors;
[bb]
If the applicant is a partnership, the names and ad-
dresses of all partners;
(v) The name of the manager or proprietor of the business.
(b)
Execution of Application - If the applicant is a natural person,
the application shall be signed and sworn to by the person; if a
corporation, by an agent authorized to sign; if a partnership, by
a partner.
(c)
The Chief of Police or his designee shall investigate into the truth-
fulness of the statements set forth in the application and shall en-
dorse his findings thereon. The applicant shall furnish to the Chief
of Police such evidence as he may reasonably require in support of
the statements set forth in the application.
(d)
False Statements in Application - No person shall make any material
false statement in any application. In addition to other penalties,
the licensee's license may be revoked by the City Council for a vio-
lation of this section.
5.611 (4) Bond .Required. Prior to the issuance of a license under this section,
the applicant shall file a five thousand dollar ($5,000.00) bond with
the City Clerk. Said bond shall be conditioned that the principal named
will observe and comply with all laws and the provisions of this Code re-
lating to dealers in precious metals, and will conduct business in con-
formity thereto, and that the principal will account for and deliver to
any person legally entitled any goods which may have come into the princi-
pal's hand through the principal's business as a dealer in precious
metal items, or in lieu thereof, will pay the reasonable value in money
to the person.
5.611 (5) License Fee. The annual license fee for a precious metal dealer shall be
One Hundred Dollars ($ 100.00 ). In addition to the fee
specified above, an additional One Hundred Dollars ($ 100.00 )
fee shall be paid by an applicant:
(a) Upon initial application for the license specified in this section,
and
(b)
Upon application for the license specified in this section after
failing to renew the license within one (1) year of the expiration
date of the previously held license.
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The One Hundred Dollars ($100.00 ) fee shall not be refunded
whether or not the license sought is granted. The amount of the license
fee may hereafter be amended by resolution of the Council.
5.611 (6) Expiration of License. Ail licenses issued under this section shall ex-
pire on December 3] of each year
5.611 (7) ~usiness at only one place. A license under this section shall authorize
the licensee to carry on its business only at the permanent place of busi-
ness designated in the license. The licensee shall either own the build-
ing in which the business is conducted or have a lease on the business
premises which extends for more than six (6) months. No license may be
transferred to a different location or a different person. No licensee
or agent thereof shall store any items containing precious metal at any
location other than the address listed on the license.
5.611 (8) Records Required. Every precious metal dealer shall, at the time of pur-
chase or consignment of a good, immediately record clearly in ink, in the
English language in a book, an accurate account containing the following
information:
(a) A complete description of the item, including but not limited to:
(i) type and size of item;
(ii) kind and quality of metal;
(iii) any engravings or distinguishing characteristics;
(iv) any gems attached;
(v) date, mint, and condition of all coins
(b) Purchase or consignment price;
(c) Time and date of receipt;
(d)
Name, residence address, and driver's license number (or equivalent
identification where a driver's license is not available) of the
person selling or consigning the good.
The book as well as the goods purchased or consigned shall at all rea-
sonable times be open to inspection of the Mayor or any member of the
Police Department. Entries in the book shall be retained for at least
three (3) years.
5.611 (9) Receipt to Seller. Each precious metal dealer shall provide a receipt
to the seller or consignor of any item which shall include:
(a) The name, address and phone number of said precious metal dealer;
(b) The date;
(c) A description of the item purchased as provided in Section
5.611(8)(a) herein;
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(d) The purchase price;
(e) The signature of the person purchasing or receiving the item.
A:copy of each receipt shall be kept on file at the place of business
designated in the dealer's license. Each receipt shall be open to in-
spection in the same manner as the records required by Section 5.611(7).
5.611(10) Payment by check only. Payment to the seller or consignor shall be by
check only, made payable to a named payee who is the actual intended
seller.
5.611(11) Photographs required. Every licensee shall maintain photographic equip-
ment at its place of business capable of taking high quality color photo-
graphs of both the individual selling or consigning items and the items
sold or consigned. The photographic equipment maintained shall be of a
type and quality approved by the City Clerk. When a licensee, or an
agent or employee thereof, receives any precious metal item except coins,
he or she shall photograph the individual selling or consigning such item
and each item received. The photographs required by this section shall
be maintained along with the other records required by this section in
such a manner that they can be readily matched and correlated with all
other records of the transaction to which they relate. Such photographs
shall be available to the police department upon request.
5.611(12) Reports to Police. Every precious metal dealer shall make out and deliver
to the Police Department every day before noon, upon a form approved by
the Police Department, a legible description of the goods purchased dur-
ing the preceding day, together with the time purchased and the name
and address of the person from whom the goods were purchased. The des-
cription of the goods shall include:
(a) A complete description of the item, including but not limited to:
(i) type and size of item;
(ii) kind and quality of metal;
(iii) any engravings or distinguishing characteristics;
(.iv) any gems attached;
(v) date, mint, and condition of all coins
(b) Purchase or consignment price;
(c) Time and date of receipt
No person shall be required to furnish reports of bulk sales from mer-
chants, manufacturers or wholesale dealers of precious metal or of goods
purchased at open sale from bankrupt stock. Bulk sales must be accom-
panied by a bill of sale or other evidence of purchase which must be shown
to any member of the Sheriff or Police Department upon demand.
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Every licensee under this section shall have the duty to report to the
Police Department any article delivered or transferred to his possession,
if the licensee or his agent has reason to believe that the article was
delivered to him from a person other than the rightful owner or an agent
of the owner.
No secondhand precious metal item purchased or received by any precious
metal dealer shall be altered, sold, divested of possession, or disposed
of in any way, for a period of thirty (30) days next after the delivery
to the Police Department of the copy and statement relating thereto as re-
quired in this Section 5.611(12).
5.611(13) Police Order to Hold Property. Whenever the Chief of Police or his desig-
nee, notifies a dealer not to sell an item, the item shall not be sold,
altered or removed from the licensed premises until authorized to be re-
leased by the Chief of Police or his designee so requiring the item to be
held.
5.611(14) Prohibited Acts.
(a)
No person under eighteen (18) years of age shall sell or consign
or attempt to sell or consign any item to any dealer in precious
metals. No dealer in precious metals, nor any agent or employee
thereof, shall purchase or receive on deposit any item from any per-
son under eighteen (18) years of age.
(b)
No dealer in precious metals, nor any agent or employee thereof,
shall purchase or receive on deposit any item from a person of un-
sound mind or an intoxicated person.
(c)
No dealer in precious metals, nor any agent or employee thereof,
shall purchase or receive on deposit any items unless the seller pre-
sents identification in the form of a driver's license, pictured
identification, or medicard.
5.611(15) Denial~ Suspension or Revocation. Any license under this section may
be denied, suspended or revoked for any of the following reasons:
(a) The use or proposed use is in conflict with the Columbia Heights
Zoning Code;
(b) The use or proposed use is in conflict with any health, building,
building maintenance or other provision of this Code or state law;
(c) Violation of any provision of this section;
(d) Fraud, misrepresentation or bribery in securing a license;
(e) Fraud, misrepresentation or false statements made in the course
of the applicant's business;
(f)
Conviction of the applicant, any partner or shareholder of the appli-
cant, or any employee of the applicant within the preceding five (5)
years, of any crime, petty misdemeanor or municipal ordinance relat-
ing to theft, receiving stolen goods, burglary, robbery, damage or
trespass to property or the operation of a business.
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Section 2: This ordinance shall be in full force and effect from and after thirty
(30) days after its passage.
First reading:
Second reading:
Date of passage:
February 23, 1981
March 9, 1981
March 9, 198l
Offered by: Norberg
Seconded by: Heintz
Roll call: All ayes
Bruce G. Nawrocki, Mayor
~gAAnne Student, Secretary to
~ the Council
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