Ord 90-057
0072.080.004
RPB/tw
03/30/90
ORDINANCE NO.
90-57
AN ORDINANCE OF THE CITY OF FEDERAL WAY,
WASHINGTON, PROVIDING FOR THE REGULATION OF
PAWNBROKERS AND SECONDHAND DEALERS; CONTAINING
A SEVERABILITY CLAUSE AND APPROVING AN
ORDINANCE SUMMARY FOR PUBLICATION.
WHEREAS,
the Federal way City Council finds that this
ordinance is in the interest of the public health,
safety and
welfare, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON,
DO ORDAIN AS FOLLOWS:
section 1.
Definitions,
For the purposes of this
ordinance,
the following words and phrases shall be defined as
follows:
A.
"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.
B.
"Pawnshop" means every place at which a pawnbroker
business is being conducted.
C.
"Secondhand dealer"
means
every person who
as a
business engages in the purchase, sale, barter, auction,
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sale on consignment,
or otherwise exchanges secondhand
goods, or who keeps a store, shop, room or other place
where secondhand goods of any kind or description are
bought,
sold,
traded
or
bartered,
pledged,
pawned,
auctioned, sold on consignment, or otherwise exchanged;
provided,
however,
that this
term does
not apply to
those persons engaged in the business of selling used or
secondhand motor vehicles or boats.
D.
"Secondhand
goods"
means
any
and
all
used,
remanufactured,
or secondhand goods purchased or kept
for sale by a secondhand dealer; provided, however, such
term does not include junk or used or secondhand motor
vehicles or boats.
Section 2.
License - - Required.
It is unlawful for
any person,
firm or corporation to engage in the business of
pawnbroker or secondhand dealer without first obtaining a license
pursuant to the provisions of this ordinance.
Section 3.
License - - APplication - - consideration.
A.
All
applications
for
issuance
or
renewal
of
a
pawnbroker's
or
secondhand dealer's
license
shall
be
filed with the city Clerk on forms furnished for such
purpose, and shall be accompanied by the required fee.
The
application
shall
state
the
true
name
of
the
applicant, who shall be not less than eighteen years of
age, the names, addresses and telephone numbers of all
persons having financial, proprietary or other interest
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in
such pawnshop
or
secondhand
shop,
a
list
of
any
criminal convictions for such persons during the past
ten years, together with such other information as the
City Clerk deems appropriate.
B.
The City Clerk shall refer the application to the
law
enforcement
authority
for
the
City
which
shall
determine the accuracy of the information contained in
the
application
and
conduct
a
criminal
history
background
investigation
of
the
applicant.
Upon
completion,
the law enforcement authority for the City
shall forward the results of the investigation, together
with a recommendation for approval or denial,
to the
City Clerk.
C.
If, as a result of the investigation, the character
and business responsibility of the applicant are found
to
be
satisfactory,
the
city
Clerk
shall
issue
the
license to the applicant.
The city Clerk shall deny the
applicant the license if the applicant has:
1.
committed
any
act
consisting
of
fraud
or
misrepresentation;
2.
Committed any act which,
if committed by a
licensee,
would
be
grounds
for
suspension
or
revocation of a license;
3.
Within the previous ten years, been convicted
of a misdemeanor or felony directly relating to the
occupation
of
pawnbroker
or
secondhand
dealer,
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including, but not limited to, those misdemeanors
and felonies involving theft, possession of stolen
property,
moral
turpitude,
fraud
or
misrepresentation;
4.
Been refused a license under the provisions of
this
ordinance;
provided,
however,
that
any
applicant denied a license under the provisions of
this ordinance may reapply if and when the reasons
for denial no longer exist; or
5.
Made anY false or misleading statement in the
application.
D.
Licenses issued pursuant to this ordinance may be
revoked by the city Clerk after notice and hearing for
any of the following causes:
1.
Fraud,
misrepresentation,
or false statement
contained in the application for license;
2.
Fraud,
misrepresentation,
or false statement
made in the course of carrying on the business as
pawnbroker or secondhand dealer;
3.
A violation of this ordinance; or
4.
conviction after submission of the application
for a pawnbroker's or secondhand dealer's license
of a felony or misdemeanor directly relating to the
occupation
of
pawnbroker
or
secondhand
dealer,
including, but not limited to, those misdemeanors
and felónies involving theft, possession of stolen
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property,
moral
turpitude,
fraud
or
misrepresentation.
section 4.
Appeals.
A.
Notification of suspension,
revocation,
denial or
civil
penalty.
When the city Clerk determines
that
there is cause for denying, suspending or revoking any
license issued pursuant to this ordinance, or assessing
a civil penalty, the city Clerk shall notify the person
holding such license by personal service or registered
or
certified
mail,
return
receipt requested,
of
the
decision.
Notice mailed to the address on file shall be
deemed received three days after mailing.
shall specify the grounds for the denial,
The notice
suspension,
revocation or penalty assessment.
The
civil penalty
shall be due and the denial,
suspension or revocation
shall become effective ten days from the date the notice
is
delivered
or
deemed
received
unless
the
person
affected thereby files a written request with the city
Clerk for a hearing before the Hearing Examiner within
such ten-day period.
B.
The City Hearing Examiner
is designated to hear
appeals by
parties
aggrieved by actions
of the city
Clerk in suspending,
revoking or denying a license or
assessing a civil penalty pursuant to this ordinance.
The
Hearing
Examiner
may
adopt
reasonable
rules
or
regulations for conducting its business.
copies of such
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rules and regulations shall be delivered to the City
Clerk who
shall
make
them
freely
accessible
to
the
public.
All
decisions
and
findings
of
the
Hearing
Examiner shall be rendered to the appellant in writing
with a copy to the City Clerk.
C.
Any person entitled to service pursuant to this
section may appeal from any notice of suspension, denial
or revocation or civil penalty assessment by filing with
the City Clerk within ten days
from the date of the
notice is delivered or deemed received, a written appeal
containing:
1.
A heading in the words:
"Before the Hearing
Examiner for the city of Federal way";
2.
A caption reading:
"Appeal of
"
giving the names of all appellants participating in
the appeal;
3 .
A
brief
statement
setting
forth
the
legal
interest of each of the appellants participating in
the appeal;
4.
A brief statement in concise language of the
specific order or action protested,
together with
any
material
facts
claimed
to
support
the
contentions of the appellant;
5.
A brief statement in concise language of the
relief sought,
and the reasons why it is claimed
the protested order or action should be reversed,
modified, or otherwise set aside;
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6.
The
signatures
of
all
parties
named
as
appellants,
and their official mailing addresses;
and
7.
The verification (by declaration under penalty
of perjury)
of at least one appellant as to the
truth of the matters stated in the appeal.
As soon as practicable after receiving the written
D.
appeal, the Hearing Examiner shall fix a date, time and
place for the hearing of the appeal.
such date shall be
not less than ten days nor more than sixty days from the
date the appeal was filed with the city Clerk.
written
notice of the time and place of the hearing shall be
given at least ten days prior to the date of the hearing
to
each
appellant
by
the
Hearing
Examiner's
Office
either by causing a copy of such notice to be delivered
to
the
appellant
personally
or
by
mailing
a
copy
thereof, postage prepaid, addressed to the appellant at
the address shown on the appeal.
E.
At the hearing the appellant shall be entitled to
appear in person and be represented by counsel and offer
such evidence pertinent and material to the action of
the city Clerk.
F.
Only those matters or issues specifically raised by
the appellant in the written notice of appeal shall be
considered in the hearing of the appeal.
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G.
Failure
of
any
person
to
file
an
appeal
in
accordance with the provisions
of this
section shall
constitute
a
waiver
of
his
or
her
right
to
an
administrative hearing and adjudication of the notice
and order, or any portion thereof.
H.
Enforcement of any notice and order of the city
Clerk shall be stayed during the pendency of an appeal
therefrom which is properly and timely filed.
I.
upon
completion
of
the
hearing,
the
Hearing
Examiner shall:
1.
Accept
the
city
Clerk's
recommendation
as
presented;
2,
Determine no action is warranted; or
3.
Modify the recommended action.
J.
Appeal
from
Hearing
Examiner.
Appeal
from
a
decision of the Hearing Examiner shall be to the King
County
superior
Court
and
must
be
served
and
filed
within
thirty
days
of
the
decision
of
the
Hearing
Examiner.
In the event the applicant or license holder
does not follow the procedures within the time periods
set forth in this section,
the action of the Hearing
Examiner shall be final.
section 5.
License fees - - Late uenaltv.
A.
The annual fee for a pawnbrokers' license shall be
$300.00.
The
annual
fee
for
a
secondhand
dealer's
license shall be $24.00.
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B.
Licenses issued pursuant to this ordinance shall
expire
on
the
31st
of
December.
License
renewal
applications and license fees shall be due and payable
on the 31st of December preceding the year for which the
license is issued.
Fees becoming due for less than one
year shall be prorated on a quarterly basis.
C.
A late penalty shall be charged on all applications
for
renewal
of
a
license
received
later
than
seven
working
days
after
the
expiration
date
of
such
license.
The late penalty shall be as follows:
Additional Percentage
Davs Past Due of License Fees
8-30 25%
31-60 50%
61 and over 100%
section 6.
Limitation on licensinq.
No pawnbroker's
license
shall
be
issued
which
would
increase
the
number
of
holders
of
such licenses to more than one
for every
fifteen
thousand of population, according to the last preceding federal
census,
provided
that
this
population
limitation
shall
not
operate to prohibit the licensing of any pawnbroker duly licensed
. prior to the enactment of this ordinance.
section 7.
Personal propertv tax return.
No renewal
license shall issue to any pawnbroker or secondhand dealer until
the applicant shows that
s/he has made a return to the King
County Assessor
of the property
in his or her possession or
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ownership and the value thereof for tax assessment purposes and
has paid the tax due.
Section 8.
Records reauired.
Every pawnbroker and
secondhand dealer shall maintain at his or her place of business
a book in which sjhe 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 ordinance;
c.
The
printed
name,
signature,
age,
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 identify, and the account or other number of
such identification;
D.
The name, address and telephone number of the owner
of the property bought or received in pledge;
E.
The address of the place from which the property
bought or received in pledge was last removed;
F.
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
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when the article 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;
G.
The price paid or the amount loaned; or
H.
The number of any pawn ticket issued therefor.
section 9.
Records and articles to be available for
inspection.
All books and other records of any pawnbroker or
secondhand 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.
All
articles and things received, purchased or left in pledge with
the pawnbroker or secondhand dealer shall at all times be open to
like inspection.
section 10.
Seller or consiqnee to qive true name and
address.
Anyone who pledges, sells or consigns any property to
or with a pawnbroker or secondhand dealer 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 11.
Transcript to be furnished.
A.
It is the duty of every pawnbroker and secondhand
dealer to furnish 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,
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B.
It is also the duty of any pawnbroker or secondhand
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 or
secondhand dealer.
section
12.
Authorized
rate
of
interest
and
restrictions upon the sale of propertv.
A.
All
pawnbrokers
are
authorized
to
charge
and
receive interest at the rate of three percent (3%) per
month
for
money
loaned
on
the
security
of
personal
property actually received in pledge, and every person
who asks for or receives a higher rate of interest or
discount on any such loan, or on any actual or pretended
sale or redemption of personal property,
or who sells
any
property
held
for
redemption within
ninety
days
after the period of redemption has expired is guilty of
a violation of this chapter.
B.
No secondhand dealer shall sell or dispose of any
article received or purchased or permit the same to be
removed from his or her place of business wi thin ten
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
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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 sold at auction need
only be held for three days prior to sale,
section
13.
pawnshot:>
to
be
closed
durinq
certain
hours.
It is unlawful for any pawnbroker to conduct or carryon
the business of the pawnbroker, in whole or in part, directly or
indirectly,
or to open or keep open,
his or her pawnshop for
transaction of any business whatsoever therein, between the hours
of eight p.m,
and seven a.m., except that from December 1st to
December
24th of each year,
when pawnbrokers may remain open
until ten p.m.
section
14.
More
than
one
shot:>
Chanqe
of
location.
Any person having more than one pawnshop or one place
of
business
where
secondhand
goods are bought,
sold,
traded,
bartered, or exchanged, shall be required to procure a separate
license for each and every such place of business.
Pawnbrokers'
and secondhand 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.
violations - - Penalty.
A.
Every pawnbroker or
secondhand dealer
and
every
clerk,
agent
or
employee
of
such
pawnbroker
or
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secondhand dealer,
who commits
the
following acts
is
guil ty of a misdemeanor,
and upon conviction thereof,
shall be punished by a maximum
fine of one thousand
dollars ($1,000.00) and ninety days in jail:
1.
Fails to make an entry of any material matter
in his or her book or record kept as provided in
this ordinance;
2.
Makes any false entry therein;
3.
Falsifies,
obliterates,
destroys
or
removes
from his
or her place of business such book or
record;
4.
Refuses to allow a representative of the law
enforcement authority for the city to inspect the
same, or any goods in his or her possession, during
the ordinary hours of business;
5.
Reports
any
material
falsely
to
the
law
enforcement authority for the city;
6.
Fails before close of business on the first
day of the week to furnish the law enforcement
authority for the city with a full, true and
correct transcript of the record of all
transactions had during the past business week;
7.
Fails
to
report
forthwith
to
the
law
enforcement authority for the city that possession
of any property which sjhe may have good cause to
believe "has been lost or stolen, together with the
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name
of the owner,
if known,
and the date when
received, and the name of the person from whom the
same was received;
8.
Removes or allows to be removed from his or
her place of business except upon redemption by the
owner thereof,
any property received within five
years after receipt thereof has been reported to
the law enforcement authority for the city;
9.
Receives any property from any person which
s/he has good cause to believe is lost or stolen;
10.
Receives any property from any person who is
under
eighteen
of
intoxicated
or
years
age,
affected by the use of controlled substances;
11.
Receives any property from a person who the
recipient
has
reason to know has
been
knows
or
convicted of theft or possession of stolen property
in the past five years;
12.
Refuses
to
return
property
which
has
been
identified
stolen
pawned
without
as
or
authorization,
to any person the pawnbroker,
his
clerk or employee knows to be the rightful owner,
or to charge a fee for the return of such property
to the rightful owner.
a.
"Identified as stolen/or pawned without
authorization" shall mean any property which
has been reported by the rightful owner to a
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law
enforcement
authority
as
missing
or
stolen.
b.
"The
rightful
owner",
unless
otherwise
proven,
shall be considered to be the person
having possession of the property prior to the
theft or removal without authorization; or
13.
violates any provision of this ordinance by an
act of either omission or commission.
B.
civil penalty:
In addition to any other penalty
provided herein or by law, any person who violates any
provision of
any business
license ordinance
shall be
subject to a civil penalty in an amount not to exceed
two hundred fifty dollars
($250)
per violation,
to be
directly assessed by the city Clerk.
The city Clerk, in
a reasonable manner, may vary the amount of the penalty
assessed to consider the appropriateness of the penalty
to the size of the business of the violator; the gravity
of
the
violation;
the
number
of
past
and
present
violations committed; and the good faith of the violator
in attempting to achieve compliance after notification
of the violation.
All civil penalties assessed will be
enforced and collected in accordance with the procedures
specified in this ordinance.
Section
16.
If
any
section,
sentence,
clause
or
phrase
of
this
ordinance
should
be
held
to
be
invalid
or
unconstitutional
by
a
court
of
competent
jurisdiction,
such
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invalidity or unconstitutionality shall not affect the validity
or constitutionality of any other section,
sentence,
clause or
phrase of this ordinance.
Section
17.
This
ordinance
shall be effective
five
(5)
days after passage and publication of an approved summary
consisting of the title to this ordinance.
PASSED by the City Council of the City of Federal Way
this ~ day of
May,
, 1990.
CITY OF FEDERAL WAY
%~~
MAYOR, DEBRA ERTEL
ATTEST/AUTHENTICATED:
~ d. ~~
CITY CLERK, DE LORE A. MEAD
APPROVED AS TO FORM:
OFF~ C'T~ MTORNEyO
BY ~ t~'<---
FILED WITH THE CITY CLERK: March 30, 1990
PASSED BY THE CITY COUNCIL: May 1, 1990
PUBLISHED: May 4, 1990
EFFECTIVE DATE: May 9, 1990
ORDINANCE NO. 90-57
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