ORD 11-689ORDINANCE NO. 11-689
AN ORDINANCE of the City of Federal Way, Washington, relating to
Pawnbrokers and Secondhand Dealers; amending FWRC 12.15.010,
12.15.140. 12.15.230, 12.15.240, 12.15.290, 12.15.300; and adding new
sections to 12.15.245, 12.15.265 and 12.15.330. (Amending Ordinance
Nos. 09-600 and 90-5'n
WHEREAS, the market price of precious metals has increased significantly and there has
been a proliferation of pawnbroker and secondhand dealer precious metal businesses type of
operations from individuals desiring to exploit the market conditions; and
WHEREAS, the presence of these businesses in neighborhoods is linked to increased home
burglaries, which threatens the health and safety of City of Federal Way residents; and
WHEREAS, the Washington State Legislature in Engross Second House Bill 1716
recognized the proliferation of secondhand businesses engaging in precious metal transactions and
established a separate category of secondhand precious metal dealers with specific requirements; and
WHEREAS, the City of Federal Way City Council finds that it is in the best interest of the
citizens to compliment the State law by establishing a secondhand precious metal dealer licensing
requirement; and
WHEREAS, the City of Federal Way City Council finds that it is in the best interest of the
citizens to update and clarify the pawnbroker and secondhand dealer businesses.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Ordinance No. I1-689 Page 1 of 8
Section 1. FWRC 12.15.010 is hereby amended to read as follows:
12.15.010 Definitions.
The definitions in this section apply throughout this chapter unless the context clearly requires
otherwise. Terms not defined here are defined according to FWRC 1.05.020.
"Identi�ed as stolen or pawned without authorization" means any property which has been
reported by the rightful owner to a law enforcement authority as missing or stolen.
"Melted metals" means metals derived from a metal iunk or precious metals that have been
reduced to a melted state from other than ore or inqots which are produced from ore that has not
previouslV been processed.
"Metal iunk" means anv metal that has previouslv been milled, shaped, stamped, or forqed
and that is no lonqer useful in its oriqinal form, except precious metals.
"Nonmetal iunk"means anv nonmetal, commonlv discarded item that is worn out, or has
outlasted its usefulness as intended in its oriqinal form except nonmetal iunk does not include an
item made in a former period which has enhanced value because of its aqe.
"Pawnbroker" means every person who takes or receives by way of pledge, pawn or
exchange goods, wares, or merchandise of any kind of personal property for the repayment of
security of any money loaned thereon, or to loan money on deposit of personal property, or who
makes public display of any sign indicating that he has money to loan on personal property on
deposit or pledge.
"Pawnshop" means every place at which a pawnbroker business is being conducted.
"Precious metals" means gold, silver, and platinum.
"Rightful owner,"unless otherwise proven, means the person having possession of the
property prior to the theft or removal without authorization.
"Secondhand dealer" means aevery person who, as a business, engages in whole or in part in
the purchase, sale, barter, sale on consignment, or otherwise exchanges for value secondhand
goods includinq metal iunk, melted metals, whether or not the person maintains a fixed place of
business. Secondhand dealer also includes qersons or entities conductinq business at locations
within the Citv, includinq but not limited to flea markets, swap meets, hotels, qas stations, tattoo
parlors, and taverns, and conductinq business more than three times per year; s-a
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"Secondhand precious metals dea/er'i everv person who, as a business, enqaqes in
whole or in part in the purchase, sale, barter sale on consiqnment, or otherwise exchanqes for
value secondhand property that is a precious metal, whether or not the person or entity
maintains a permanent or fixed place of �business. Secondhand precious metal dealer includes
persons or entities conductinq business at locations within the Citv, including but not limited to
flea markets, swap meets, hotels, qas stations, tattoo parlors and taverns, and conductinq
business more than three times per vear. The terms "precious metal" and secondhand for
purposes of transactions bv a secondhand precious metal dealer do not include: (a) qold, sitver,
or platinum coins, or other precious metal coins, that are leqal tender, or precious metal coins
that have numismatic or precious metal value, (b) qold, silver, platinum, or other precious metal
bullion, or (c) qold, silver, platinum, or other precious metal dust, flakes, or nuqqets.
"Secondhand goods"means any item of personal propertv offered bv sale which is not new,
includinq metals in any form, exceqt postaqe stamps, coins that re leqal tender, bullion in the
form of fabricated hallmarked bars, used books, and clothinq of resale value of seventv-five
dollars or less, except furs. Secondhand qoods �" ���' ^ ^^"f�+n�� �rc� nni+�7c� o.,,.o.,+ ;+
does not include used, remanufactured, or junk motor vehicles or boats.
"Temporary secondhand dealer license" and "secondhand precious metals dealers license"
means a license that will be issued bv the Citv Clerk when the secondhand dealer or
Ordinance No. 11-689 Page 2 of 8
secondhand precious metals dealer intends to conduct business for ninetv davs or less at one
location.
Section 2. FWRC 12.15.140 is hereby amended to read as follows:
12.15.140 Required.
� It is unlawful for any person to engage in the business of pawnbroker,e� secondhand
dealer, or secondhand precious metal dealer without first obtaining a license pursuant to the
provisions of this chapter. Everv license qranted under this title shall be posted in a conspicuous
place in the place of business of the licensee.
(2) It is unlawful for any person to enqaqe in secondhand dealinq for ninetv davs or less at
one location without first obtaininq a Temporarv Secondhand Dealer License from the City Clerk.
Section 3. FWRC 12.15.150 is hereby amended to read as follows:
12.15.150 Application.
All applications for issuance or renewal of a pawnbroker's e� secondhand dealer's or
secondhand precious metal dealer's license shall state the true name of the applicant, who shall
be not less than 18 years of age, the names, addresses and telephone numbers of all persons
having financial, proprietary or other interest in such pawnshop or secondhand shop, and a list
of any criminal convictions for such persons during the past 10 years.
Section 4. FWRC 12.15.230 is hereby amended to read as follows:
12.15.230 ��Information Required to be entered into data base and into a business
book. �eq�ife�
(1) Data base. Everv pawnbroker, secondhand dealer, and secondhand precious metal
dealer shall enter within twentv-four (24) hours anv and all requested information into the data
base prescribed bv the law enforcement aqencv
(2) Business book. Every pawnbroker and secondhand dealer shall maintain at his or her
place of business a book in which he or she shall at the time of such loan, purchase or sale,
enter, in the English language, written in ink, the following information:
(�a) The date of the transaction;
(�b) The name of the person conducting the transaction and making the entries required in
this chapter;
(�c) The printed name, �e age, date of birth, height, weight, address, telephone
number, the general description of the dress, complexion, color of hair and facial appearance of
the person with whom the transaction is had, including the identification which the customer shall
present to verify his or her identity, and the account or other number of such identification;
(4d) The siqnature of the person with whom the transaction is made, a photo copv of both
sides of an official picture identification card and the riqht thumb print.
(e)The name, address and telephone number of the owner of the property bought or received
in pledge;
(�� The address of the place from which the property bought or received in pledge was last
removed;
(6g) A description of the property bought or received in pledge, which shall include the name
of the maker of such property or the manufacturer thereof and the serial number, if the article
has such marks on it, or any other inscriptive or identifying marks; provided, that when the article
Ordinance No. 11-689 Page 3 of 8
received is furniture or the contents of any house or room actually inspected on the premises
where the sale is made, a general description of the property shall be sufficient;
(�h) The price paid or the amount loaned;
(�i) The number of any pawn ticket issued therefore; or
(8i) Comply with the provisions of RCW 19.60.020(1).
Section S. FWRC 12.15.240 is hereby amended to read as follows:
12.15.240 Records and articles to be available for inspection.
� All books and other records of any pawnbroker e� secondhand dealer, or secondhand
precious metal dealer relating to the purchase, pledge, exchange or receipt of any goods, wares,
merchandise or other articles or things of value shall at all times be open for inspection by
members of the law enforcement authority for the city and shall be kept for three years. All .
articles and things received, purchased or left in pledge with the pawnbroker or secondhand
dealer shall at all times be open to tike inspection.
(2) Upon reauest from law enforcement, everv pawnbroker, secondhand dealer, and
secondhand precious metal dealer doinq business in the City shall furnish a full, true, and
correct transcript of the record of all transactions conducted on the precedinq dav. These
transactions shall be recorded into the database prescribed bv law enforcement within twenty-
four hours.
Section 6. Chapter 12.15 of the FWRC is hereby amended to add a new section 12.15.245
to read as follows:
12.15.245 Police List
If the police chief has compiled and published a list of persons who have been convicted of
anv crime involvinq theft then the pawnbroker, secondhand dealer, and secondhand precious
metal dealer shall utilize such a list for anv transaction involvinq propertv other than propertv
consistinq of a precious metal as reauired bv the police chief.
Section 7. FWRC 12.15.250 is hereby amended to read as follows:
12.15.250 Seller or consignee to give true name and address.
Anyone who pledges, sells or consigns any property to or with a pawnbroker, e� secondhand
dealer, or secondhand precious metal shall sign the records required to be kept by such
pawnbroker or secondhand dealer with his or her true name and shall include his or her correct
address and telephone number.
Section 8. FWRC 12.15.260 is hereby amended to read as follows:
12.15.260 Transcript to be furnished.
It is the duty of every pawnbroker a+�d secondhand dealer, and secondhand precious metal
dealer to furnish on forms provided by the city to the law enforcement authority for the city at the
close of every business week a full, true and correct transcript of the record of all transactions
occurring during the preceding week.
Section 9. Chapter 12.15 of the FWRC is hereby amended to add a new section 12.15.265 to
read as follows:
Ordinance No. 11-689 Page 4 of 8
12.15.265 Secondhand precious metal dealer records for hosted home parties
(1) Hosted home party means a gathering of persons at a private residence where a host or
hostess has invited friends or other �uests into his or her residence where individual person-
to-person sales of precious metals occur.
(2) A host or hostess must be the owner, renter, or lessee of the private residence where the
hosted home �art ty akes place.
(3) A secondhand precious metal dealer who attends a hosted home partv and purchases or sells
precious metals from the invited �uests must issue a receipt for each item sold or purchased
at the hosted home part�
(4) The secondhand precious metal dealer must include on every receipt the followin�a) the
name, residential address, telephone number and driver's license number of the person :'
hosting the home part�b) the name residential address, telephone number, and driver's
license number of the person sellin� the item; (c) the name, residential address, telephone
number and driver's license number the person purchasin� the item; (d a complete
description of the item bein� sold including the brand name, serial number, model number
or name, anv initials or en�raving size, pattern, and color of stone or stones; (e) time and
date of the transaction; and (fl the amount and form of any consideration paid for the item.
(5) The secondhand precious metal dealer must make four copies of each transaction receipt:
one for the seller, one for the host or hostess, one for the purchaser, and one for local law
enforcement. The secondhand precious metal dealer and the host or hostess shall maintain
copies of all transaction receipts and records for three vears following the date of the precious
metal transaction.
Section 10. FWRC 12.15.270 is hereby amended to read as follows:
12.15.270 Report of suspected stolen property.
It is the duty of any pawnbroker e� secondhand dealer, or secondhand precious metal dealer
having good cause to believe any property in his or her possession has been previously lost or
stolen, to report such fact to the law enforcement authority for the city immediately, together with
the name of the owner, if known, and the date and name of the person from whom the same
was received by such pawnbroker e� secondhand dealer, or secondhand precious metal dealer.
Section 11. FWRC 12.15.290 is hereby amended to read as follows:
12.15.290 Retention period.
No secondhand dealer or secondhand precious metal dealer shall sell or dispose of any
article received or purchased or permit them to be removed from his or her place of business
within �5 30 days after the receipt of such goods has been reported to the law enforcement
authority for the city as provided herein, except when the goods have been inspected by the law
enforcement authority for the city and they have authorized the secondhand dealer to dispose of
such goods within a lesser period of time; provided, that consigned property need only be held
for three days prior to sale.
Section 12. FWRC 12.15.300 is hereby amended to read as follows:
Ordinance No. 11-689 Page S of 8
12.15.300 Hours of operation.
It is unlawful for any pawnbroker secondhand dealer, or secondhand precious metai dealer to
conduct or carry on the business of the pawnbroker, secondhand dealer, or secondhand
precious metal dealer, in whole or in part, directly or indirectly, or to open or keep open, his or
her �ep--place of business for transaction of any business whatsoever therein, between
the hours of 8:00 p.m. and 7:00 a.m., except that from December 1st to December 24th of each
year, when pawnbrokers may remain open until 10:00 p.m.
Section 13. FWRC 12.15.310 is hereby amended as follows:
12.15.310 Separate license for separate places of business.
Any person having more than one pawnshop or one place of business where secondhand
goods, includinq precious metals, are bought, sold, traded, bartered or exchanged shall be
required to procure a separate license for each and every such place of business. �
Section 14. FWRC 12.15.320 is hereby amended as follows:
12.15.320 Change of location — Transfer.
Pawnbroker's, a�d secondhand dealers' and secondhand precious metal dealers' licenses
shall not be transferable from one person to another, but a licensee may have his or her license
transferred to a new location by the city clerk, and the change of address shall be noted on the
license, together with the date when the change was made.
Section 15. Chapter 12 of the Federal Way Revised Code is hereby amended to add a
new section 12.15.330 to read as follows:
12.15.330 Prohibited Acts — Penaltv Pawnbrokers and Secondhand Dealers.
RCW 19.60.066 is herebv adopted bv reference. It is a qross misdemeanor for:
� Anv person to remove, alter, or obliterate any manufacturer's make, model, or serial
number, personal identification number, or identifvinq marks enqraved or etched upon an
item of personal propertV that was purchased cosiqned, or received in pledae. In addition
an item shall not be accepted for pledqe or a secondhand purchase where the
manufacturer's make, model, or serial number, personal identification number, or
identifving marks enqraved or etched uqon an item of personal propertv has been
removed, altered, or obliterated;
,� Anv person to knowinqly make, cause, or allow to be made anv false entry or
misstatement of anv material matter in anv book, record, or writinq required to be kept
under this chapter;
� Anv pawnbroker or secondhand dealer to receive any propertv from anv person under the
aqe of eiqhteen years, anv person under the influence of intoxicating liquor or druqs, or
any person known to the pawnbroker or secondhand dealer as havinq been convicted of
burqlarv, robberv, theft or possession of or receivinq stolen property within the past ten
years whether the person is actinq in his/her own behalf or as the aqent of another;
� Anv pawnbroker to enqaqe in the business of cashinq or sellinq checks, drafts, monev
orders, or other commercial paper servinq the same purpose unless the pawnbroker
complies with the provisions of chapter 31.45 RCW; or
� Anv person to violate knowinqly anv other provision of this chapter.
Ordinance No. 11-689 Page 6 of 8
Section 16. Severability. Should any section, subsection, paragraph, sentence, clause, or
phrase of this chapter, or its application to any person or situation, be declared unconstitutional or
invalid for any reason, such decision shall not affect the validity of the remaining portions of this
chapter or its application to any other person or situation. The City Council of the City of Federal
Way hereby declares that it would have adopted this chapter and each section, subsection,
sentence, clauses, phrase, or portion thereof, irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
Section 17. Corrections. The City Clerk and the codifiers of this ordinance are
authorized to make necessary corrections to this ordinance including, but not limited to, the
correction of scrivener/clerical errors, references, ordinance numbering, section/subsection
numbers and any references thereto.
Section 18. Ratification. Any act consistent with the authority and prior to the effective
date of this ordinance is hereby ratified and affirmed.
Section 19. Effective Date. This ordinance shall take effect and be in force thirty (30) days
from and after its passage and publication, as provided by law.
PASSED by the City Council of the City of Federal Way this 19 day of April, 2011.
CITY OF, FEDERAL WAY
� r
MAYOR, S PRIEST
Ordinance No. 11-689 Page 7 of 8
ATTEST:
� �1.���� �f. _� � �� 11 ,
• � • • =i
APPROVED AS TO FORM:
�
CI Y ATTORNEY, PATRICIA A. RICHARDSON
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.:
3-29-2011
4-19-2011
4-23-2011
5-23-2011
11-689
Ordinance No. 11-689 Page 8 of 8