For the purposes of this article, the following definitions shall apply unless the context clearly requires otherwise:
(a) Pawn Broker. Means any person who loans money on deposit or pledge of personal property or other valuable thing, other than intangible, personal property, or who deals in the purchase of personal property on the condition of selling the same back again at a stipulated price, however, a pawn broker does not include any person operating under the supervision of the state banking commission, credit union administrator or the consumer credit commissioner of this state.
(b) Person. A person is an individual, firm, company, partnership, corporation or association.
(c) Precious Metal. Precious metal means gold, silver or platinum group metals or any used articles or other used personal property containing such metals, but shall not include coins purchased for their numismatic value rather than their metal content or ingots or other industrial residue or by-products composed of such metals purchased from manufacturing firms.
(d) Precious Metal Dealer. A precious metal dealer is any person who engages in the business of purchasing precious metal for the purpose of reselling such metal in any form.
(Ord. 1713, Sec. 1; Code 1988)
No person shall engage or continue in business as a pawn broker or precious metal dealer without first obtaining a license therefor from the clerk of such city.
(Ord. 1713, Sec.2; Code 1988)
An application for a license and license fee to engage in the business as a pawn broker or precious metal dealer shall be made to the governing body. The form of application and amount of license fee shall be paid in accordance with the provisions of K.S.A. 16-707.
(Ord. 1713, Sec. 3; Code 1988)
No license or any renewal thereof shall be granted thereof to any person that would be disqualified in accordance with the provisions of K.S.A. 16-708.
(Ord. 1713, Sec. 4; Code 1988)
(a) The journal of the governing body shall show the action taken on the application.
(b) If the license is granted, the city clerk shall issue the license which shall show the name of the licensee and the year for which issued.
(c) No license shall be transferred to another licensee.
(d) If the license shall be denied, the license fee shall be immediately returned to the person who made the application.
(Ord. 1713, Sec. 5; Code 1988)
Each license shall be posted in a conspicuous place in the place of business in which the license is issued.
(Ord. 1713, Code 1988)
The governing body of the city upon five days’ notice to any person’s license under this article, shall revoke such license for any of the following reasons:
(a) If a licensee has fraudulently obtained a license by giving false information in the application thereof;
(b) If the licensee has violated any other provisions of this article or K.S.A. 16-706 in sequence or has become ineligible to obtain a license under this article.
(Ord. 1713, Code 1988)
The licensee within 20 days after the order of the governing body revoking any license, may appeal to the district court of Mitchell County. An appeal taken of this section shall not suspend the order of revocation of the license of any licensee, nor shall any new license be issued to any such person or any person acting for or on his behalf, for a period of six months thereafter.
(Ord. 1713, Code 1988)
(a) Each licensee shall keep and use in the licensee’s business such books, accounts and records as will enable the city to determine whether such licensee is complying with the provisions of this act.
(b) The licensee shall allow any member of the Beloit Police Department or any other law enforcement officer and their employees to examine or cause to be examined the books, accounts, records and files used by the licensee or by any other person engaged in the business of pawn broking or dealing in precious metals, irrespective of whether such person acts or claims to act as principal, agent or broker, or under or without authority of this act.
(c) Any law enforcement officer and their employees designated in 9-209 (b) shall have access during regular business hours to all such books, accounts, papers, records, files and vaults.
(d) Each Saturday at the end of the business day, every licensee shall report the description of all property received in pledge or purchased by the licensee during the preceding week, in whatever quantity received. Such reports shall include all property purchased as second hand merchandise at wholesale, second hand merchandise taken in for sale or possessed on consignment for sale and second hand merchandise taken in trade. No such report need be made concerning property or merchandise acquired from another pawn broker or precious metal dealer or the other pawn brokers or dealer’s stock in trade, or a substantial part thereof in bulk, whether the other pawn broker has made the reports required by this section with respect to such property or merchandise.
(e) Such report shall be submitted to the chief of police of the city or designee.
(f) All reports made pursuant to this section shall comply with and be submitted in accordance with the terms of any applicable city ordinances requiring such reporting.
(g) Each licensee shall retain in the licensee’s possession for a period of 10 days all precious metal purchased as a precious metal dealer, and such metal shall remain in the condition in which it was purchased. The ten day period shall commence on the date that the chief of police receives the report of its acquisition in compliance with this section. If the chief of police of the city has probable cause to believe that any precious metal reported by a dealer has been stolen, he may give written notice to the dealer to retain such metal for an additional 15 day period unless the chief of police notifies the dealer in writing that the waiting period is terminated at an earlier time.
(h) Every loan made by the licensee for which goods are received in pledge as security shall be evidence by a written contract, in ink, a copy of which shall be furnished to the borrower. The terms of the contract, the retention, disposition and redemption of the pledged articles required of the licensee shall be governed by K.S.A. 16-714.
(i) The licensee shall keep in some conspicuous place, for a period of at least seven days from the day and time of purchasing or receiving same, all articles, so purchased or received.
(j) The licensees report pursuant to this section shall be available for inspection by law enforcement officers and their employees for law enforcement purposes.
(Ord. 1713, Code 1988)
The licensee at the time of making a loan, shall enter into a book or file kept for that purpose:
(a) The date, duration, amount and charges of every loan made by the licensee;
(b) A full and accurate description of the property pledged.
(c) The name, age, residence and driver’s license or other personal identification number of the pledger.
(d) At the time of purchasing precious metals, a precious metal licensee shall enter in a book kept for that purpose:
(1) The date of the purchase;
(2) A full and accurate description of each item purchased, including any identifying letters, numbers, or marks on the items;
(3) A name, age, residence and driver’s license or other personal identification number of the seller.
(e) The records required by this section shall be maintained by the licensee for not less than one year following the date of the transaction.
(Ord. 1713, Code 1988)
No licensee shall receive in pledge, or as security for any loan, transfer, service, undertaking or advantage, anything of value, from any person under the age of 18 years.
(a) No precious metal licensee shall purchase any precious metal from a person under the age of 18 years.
(Ord. 1713, Code 1988)
(a) The licensee shall require of every person from whom the licensee purchases precious metal for resale:
(1) Proof of identification; and,
(2) A signed statement saying the seller is the legal owner of the precious metal or is an agent of legal owner who is authorized to sell such metal and state when, where and in what manner such metal was acquired by the seller.
(b) When converted or stolen property has been pawned or sold to a precious metal dealer and the pawn broker or dealer refuses to redeliver such property to the rightful owner upon demand and presentation of a bill of sale or other proper evidence of ownership by the owner, and legal action by the rightful owner to recover the property becomes necessary, the court may assess the licensee for reasonable attorney’s fees incurred by the rightful owner if the court finds that the licensee wrongfully withheld converted or stolen property.
(Ord. 1713, Code 1988)
Any person who shall violate, fail, neglect or refuse to comply with any provisions, regulations or requirements of this article shall, upon conviction thereof, be guilty of a Class B violation; the punishment and the terms of confinement therefor shall be as provided for in Article 12, Violations, Penalties of the Uniform Public Offense Code for Kansas Cities, adopted by the governing body of the city.
(Ord. 1713, Code 1988)